[Federal Register Volume 89, Number 177 (Thursday, September 12, 2024)]
[Notices]
[Pages 74273-74274]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-20615]


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FEDERAL MARITIME COMMISSION

[Docket No. FMC-2024-0008]


Extension of Time for Decision in Investigation Into Conditions 
Affecting United States Carriers in Connection With Canadian Ballast 
Water Regulation in the United States/Canada Great Lakes Trade

AGENCY: Federal Maritime Commission.

ACTION: Notice of extension of time and request for comments.

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SUMMARY: The Federal Maritime Commission (Commission) has extended by 
90 days the time for decision in its investigation into conditions 
created by the Government of Canada (Canada) in connection with 
regulation of ballast water management systems that may adversely 
affect the operation of United States carriers in the United States/
Canada Great Lakes trade.

DATES: Submit comments on or before October 15, 2024.

ADDRESSES: You may submit comments, identified by Docket No. FMC-2024-
0008, by the following method:
    Federal eRulemaking Portal: Your comments must be written and in 
English. You may submit your comments electronically through the 
Federal eRulemaking Portal at www.regulations.gov. To submit comments 
on that site, search for Docket No. FMC-2024-0008 and follow the 
instructions provided.

FOR FURTHER INFORMATION CONTACT: For questions regarding submitting 
comments or the treatment of any confidential information, contact 
David Eng, Secretary; Phone: (202) 523-5725; Email: [email protected].

SUPPLEMENTARY INFORMATION:

I. Introduction

    On May 22, 2024, the Federal Maritime Commission (Commission) 
initiated an investigation, pursuant to 46 U.S.C. 42302, of whether 
conditions created by the Government of Canada (Canada) in connection 
with regulation of ballast water management systems adversely affect 
the operation of United States carriers in the United States/Canada 
Great Lakes trade, in particular the carriers operating vessels that 
may become subject to regulation in September 2024, within the meaning 
of 46 U.S. Code, chapter 423 (Foreign Shipping Practices) (46 U.S.C. 
42301-307). Having determined that the investigation would be enhanced 
by gathering and reviewing additional information, the Commission now 
extends by 90 days, from September 19, 2024, to December 18, 2024, the 
time for decision under 46 U.S.C. 42302(c).

II. Summary of Status of Investigation

    On May 22, 2024, the Commission on its own motion initiated a 
Chapter 423 investigation into Canadian ballast water management 
regulation in the Great Lakes. See Investigation into Conditions 
Affecting United States Carriers in Connection with Canadian Ballast 
Water Regulation in the United States/Canada Great Lakes Trade, FMC-
2024-0008, 89 FR 44979 (May 22, 2024) (May 2024 Notice of 
Investigation). In 2020, the Commission had opened an investigation 
under 46 U.S. Code, chapter 421 following a petition by the Lake 
Carriers Association (LCA). See FMC Docket No. 20-10. The petition 
alleged that Canadian regulation set to take effect in September 2024 
would create conditions unfavorable to shipping by requiring U.S. 
vessels to install new ballast water management systems. Meanwhile, it 
became apparent that the U.S. Environmental Protection Agency (EPA), in 
its rulemaking to implement the Vessel Incidental Discharge Act (VIDA), 
is likely to issue rules that are less restrictive than those of 
Canada. May 2024 Notice of Investigation, 89 FR 44979. In a February 
2024 letter, the LCA had noted that only a small group of U.S. Lakers 
built after 2008 (five vessels) would be affected by the Canadian 
regulation in 2024, with about 50 older Lakers not subject to it until 
2030. Id. The Commission's Notice of Investigation was issued on May 
22, 2024 which, under the 120-day time limit set by 46 U.S.C. 42302(c), 
means the current deadline to complete the investigation is September 
19, 2024.

[[Page 74274]]

    After the May 2024 Notice of Investigation, the investigation 
proceeded, and the FMC received 14 comments in June 2024. The Canadian 
government and those representing the interests of Canadian carriers, 
as well as those representing environmental interests, opposed the 
potential imposition of sanctions. On the other hand, those 
representing the interests of U.S. carriers and workers were supportive 
of such measures. At the same time Transport Canada, the responsible 
Canadian agency, established a procedure for seeking exemptions that 
became available to affected U.S. carriers in late July 2024, although 
the Commission understands that a comparable process had been available 
to Canadian carriers much earlier. See Procedure to request an 
exemption to install Ballast Water Management Systems under Ballast 
Water Regulations for foreign-flagged vessels in Canadian waters, 
Transport Canada (July 25, 2024) (Exemption Procedure), available at 
https://tc.canada.ca/en/marine-transportation/marine-safety-management-system-tp-13585-e-tier-ii-procedures/tier-ii-procedure-request-exemption-install-ballast-water-management-systems-under-ballast-water-regulations-foreign-flagged-vessels-canadian-waters. The Commission 
also understands that the relevant Canadian rule is due to take effect 
as to U.S. carriers shortly, specifically on September 8, 2024.
    In light of the above, the Commission now extends the time for 
decision in its Chapter 423 investigation by 90 days, from the current 
deadline of September 19, 2024, to December 18, 2024, and it 
establishes a new comment period to gather more information on the 
apparent disparity between the exemption processes available to U.S. 
and Canadian carriers, including the difference in when the exemption 
procedures became available. In particular, the Commission seeks to 
gather and review more information about whether the exemption 
processes may have themselves led to adverse conditions in violation of 
46 U.S.C. 42302(a), including information about developments occurring 
after the end of the initial comment period in June 2024. That will 
help the Commission continue to investigate whether the laws, rules, 
policies, or practices of Canada result in conditions that ``adversely 
affect the operations of United States carriers in United States 
oceanborne trade'' and that ``do not exist for foreign carriers of 
[Canada] in the United States under the laws of the United States.'' 46 
U.S.C. 42302(a).
    If the agency concludes that the standard of section 42302(a) is 
met, it is authorized to take certain actions to encourage remediation 
of those conditions. See May 2024 Notice of Investigation, 89 FR 44979-
80. Specifically, the Commission may take actions ``against any foreign 
carrier that is a contributing cause, or whose government is a 
contributing cause, to those conditions.'' 46 U.S.C. 42304(a). 
Potential actions include imposing limits and/or fees on Canadian-
flagged vessels that visit U.S. ports and requesting that the U.S. 
Department of Homeland Security and the U.S. Coast Guard refuse 
clearance and deny entry of such vessels into the U.S., or detain such 
vessels. See 46 U.S.C. 42304, 42305. Any such fees could be 
substantial, as they are authorized by law at a level up to $2,559,636 
per voyage. See 46 CFR 506.4. Before any action is taken under 46 
U.S.C. 42304 or 42305, the relevant determination is submitted for 
Presidential review, within 10 days of receipt, under 46 U.S.C. 42306.

III. New Request for Comments

    As explained above, the Commission determined that the above 
situation meets the threshold requirements for consideration under the 
relevant statutory and regulatory authority, and in May 2024, it 
initiated a Chapter 423 investigation into whether the situation has 
created conditions that adversely affect the operations of United 
States carriers. See 46 U.S.C. 42302; 46 CFR 555.3, 555.5, 555.6.
    The Commission now finds that it would enhance its investigation to 
ask interested persons to submit written comments containing arguments, 
experiences, and/or data relevant to the options that have been 
available for carriers to seek an exemption from the Canadian ballast 
water management regulations going into effect in September 2024. In 
particular, the Commission seeks information about the extent to which 
such processes have differed based on whether the carrier is a U.S. 
carrier or a Canadian carrier, including but not limited to when the 
exemption processes became available for affected carriers in those 
categories; information that was unavailable when the last comment 
period closed in June 2024; and information about when specific 
carriers were granted or denied exemptions from the requirements at 
issue, as well as the basis for such decisions.
    The Commission's jurisdiction under 46 U.S.C. 42302 is broad, and 
the agency welcomes comments not only from the Government of Canada, 
but also from container shipping interests, bulk cargo interests, 
vessel owners, individuals and groups with relevant information on 
commercial and environmental considerations, and anyone else with 
relevant information or perspectives on this matter.
    As the Commission proceeds with this investigation, it may 
determine to request additional comment or gather information through 
other means as authorized under 46 U.S.C. 42303 and 46 CFR 555.5, 
555.6.

    By the Commission.
David Eng,
Secretary.
[FR Doc. 2024-20615 Filed 9-11-24; 8:45 am]
BILLING CODE 6730-02-P