MSP Final Rule

Federal Register / Vol. 82, No. 230 / Friday, December 1, 2017 / Rules and Regulations
timely withdrawal of this direct final
notice of deletion before the effective
date of the deletion, and it will not take
effect. EPA will prepare a response to
comments and continue with the
deletion process on the basis of the
notice of intent to delete and the
comments already received. There will
be no additional opportunity to
comment.
List of Subjects in 40 CFR Part 300
Environmental protection, Air
pollution control, Chemicals, Hazardous
substances, Hazardous waste,
Intergovernmental relations, Penalties,
Reporting and recordkeeping
requirements, Superfund, Water
pollution control, Water supply.
Dated: October 18, 2017.
Deborah Szaro,
Acting Regional Administrator, Region 1.

For the reasons set out in this
document, 40 CFR part 300 is amended
as follows:
PART 300—NATIONAL OIL AND
HAZARDOUS SUBSTANCES
POLLUTION CONTINGENCY PLAN
1. The authority citation for part 300
continues to read as follows:

■

Authority: 33 U.S.C. 1321(d); 42 U.S.C.
9601–9657; E.O. 13626, 77 FR 56749, 3 CFR,
2013 Comp., p. 306; E.O. 12777, 56 FR 54757,
3 CFR, 1991 Comp., p. 351; E.O. 12580, 52
FR 2923, 3 CFR, 1987 Comp., p. 193.

Appendix B to Part 300—[Amended]
2. Table 1 of appendix B to part 300
is amended by removing ‘‘MA’’,
‘‘Hatheway and Patterson Company’’,
‘‘Mansfield’’.

■

[FR Doc. 2017–25937 Filed 11–30–17; 8:45 am]
BILLING CODE 6560–50–P

DEPARTMENT OF TRANSPORTATION
Maritime Administration
46 CFR Part 296
RIN 2133–AB85

Maritime Security Program
Maritime Administration,
Department of Transportation.
ACTION: Final rule.
jstallworth on DSKBBY8HB2PROD with RULES

AGENCY:

The Maritime Administration
(‘‘MARAD’’) is amending its regulations
to implement amendments to the
Maritime Security Act of 2003 by the
National Defense Authorization Act for
Fiscal Year 2013 (‘‘NDAA 2013’’), the
Consolidated Appropriations Act, 2016
(‘‘CAA 2016’’), and the National Defense

SUMMARY:

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Authorization Act for Fiscal Year 2016
(‘‘NDAA 2016’’). The revisions to the
regulations, among other things, make
changes to vessel eligibility for
participation in the Maritime Security
Program (‘‘MSP’’), authorize the
extension of current MSP Operating
Agreements, amend the procedures for
the award of new MSP Operating
Agreements, extend the MSP through
2025, update the MSP Operating
Agreement payments and schedule of
payments, and eliminate the
Maintenance and Repair Pilot Program.
DATES: This final rule becomes effective
on January 2, 2018.
FOR FURTHER INFORMATION CONTACT:
William G. McDonald, Director, Office
of Sealift Support, U.S. Department of
Transportation, Maritime
Administration, 1200 New Jersey
Avenue SE., Washington, DC 20590.
Telephone (202) 366–0688; Fax (202)
366–5904, electronic mail to
[email protected].
SUPPLEMENTARY INFORMATION:
Background
Section 3508 of the NDAA 2013
authorized the extension of the
Maritime Security Program through
fiscal year 2025. Under section 3508, the
Secretary of Transportation, acting
through the Maritime Administrator, is
authorized to offer to extend the existing
60 MSP Operating Agreements through
fiscal year 2025. Section 3508
authorized a new payment schedule of
increasing MSP Operating Agreement
payments through fiscal year 2025.
These payment amounts were
subsequently updated by the CAA 2016
and the NDAA 2016. Section 3508 of the
NDAA 2013 also provided a new
procedure for awarding MSP Operating
Agreements, including a new priority
system for the award of operating
agreements. Under the new priority,
award will be first based on vessel type
as determined by military requirements
and then based on the citizenship status
of the applicant. Section 3508 revised
the procedure for the transfer of MSP
Operating Agreements by eliminating
the requirement to first offer an MSP
Operating Agreement to a U.S. Citizen
under 46 U.S.C. 50501. In addition,
Section 3508 eliminated the procedure
for early termination of MSP Operating
Agreements based on the availability of
replacement vessels. Section 3508 also
eliminated the eligibility of Lighter
Aboard Ship (LASH) vessels to
participate in the MSP Fleet as a standalone category of vessel. The rule
eliminates the Maintenance and Repair
Pilot Program, which has sunset and
was not extended by the NDAA 2013.

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The rule also updates MARAD’s address
for the purposes of submitting required
reports and vouchers.
Rulemaking Analysis and Notices
Executive Orders 12866 (Regulatory
Planning and Review), 13563
(Improving Regulation and Regulatory
Review) and DOT Regulatory Policies
and Procedures. Under E.O. 12866 (58
FR 51735, October 4, 1993),
supplemented by E.O. 13563 (76 FR
3821, January 18, 2011) and DOT
policies and procedures, MARAD must
determine whether a regulatory action is
‘‘significant’’ and, therefore, subject to
Office of Management and Budget
(OMB) review and the requirements of
the E.O.s. The Orders define ‘‘significant
regulatory action’’ as one likely to result
in a rule that may: (1) Have an annual
effect on the economy of $100 million
or more or adversely affect in a material
way the economy, a sector of the
economy, productivity, competition,
jobs, the environment, public health or
safety, or State, local, or tribal
government or communities; (2) create a
serious inconsistency or otherwise
interfere with an action taken or
planned by another Agency; (3)
materially alter the budgetary impact of
entitlements, grants, user fees, or loan
programs or the rights and obligations of
recipients thereof; and (4) raise novel
legal or policy issues arising out of legal
mandates, the President’s priorities, or
the principles set forth in the E.O.s.
A determination has been made that
this rulemaking is not considered a
significant regulatory action under
section 3(f) of Executive Order 12866.
This rulemaking will not result in an
annual effect on the economy of $100
million or more. It is also not
considered a major rule for purposes of
Congressional review under Public Law
104–121. This rulemaking is also not
significant under the Regulatory Policies
and Procedures of the Department of
Transportation (44 FR 11034, February
26, 1979). The costs and overall
economic impact of this rulemaking do
not require further analysis because the
rulemaking will create no additional
costs or new substantive burdens to
participants in or applicants to the
existing program as it addresses only
new processing procedures.
Executive Order 13771 (Reducing
Regulation and Controlling Regulatory
Costs)
This rule is not an E.O. 13771
regulatory action because this rule is not
significant under E.O. 12866.

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Executive Order 13132 (Federalism)
This rulemaking was analyzed in
accordance with the principles and
criteria contained in Executive Order
13132 (‘‘Federalism’’), and it has been
determined that it does not have
sufficient Federalism implications to
warrant the preparation of a Federalism
summary impact statement. The
revisions to the regulations, among
other things, make changes to vessel
eligibility for participation in the MSP,
authorize the extension of current MSP
Operating Agreements, amend the
procedures for the award of new MSP
Operating Agreements, update the MSP
Operating Agreement payments and
schedule of payments, and eliminate the
Maintenance and Repair Pilot Program.
This rulemaking has no substantial
effect on the States, or on the current
Federal-State relationship, or on the
current distribution of power and
responsibilities among the various local
officials. Nothing in this document
preempts any State law or regulation.
Therefore, MARAD did not consult with
State and local officials because it was
not necessary.
Regulatory Flexibility Act
The Regulatory Flexibility Act of 1980
requires MARAD to assess whether this
rulemaking would have a significant
economic impact on a substantial
number of small entities and to
minimize any adverse impact. MARAD
certifies that this rulemaking will not
have a significant economic impact on
a substantial number of small entities
because MSP participants (13 in total)
and applicants (11 in the most recent
solicitation for applications) do not
constitute a substantial number of small
entities.

jstallworth on DSKBBY8HB2PROD with RULES

Executive Order 13211 (Energy Supply,
Distribution, or Use)
MARAD has determined that this
rulemaking will not significantly affect
energy supply, distribution, or use.
Therefore, no Statement of Energy
Effects is required.
Executive Order 12630 (Taking of
Private Property)
This rulemaking will not effect a
taking of private property or otherwise
have taking implications under
Executive Order 12630, Governmental
Actions and Interference with
Constitutionally Protected Property
Rights.
International Trade Impact Assessment
This rulemaking does not contain
standards-related activities that create
unnecessary obstacles to the foreign
commerce of the United States.

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Privacy Impact Assessment
Section 522(a)(5) of the
Transportation, Treasury, Independent
Agencies, and General Government
Appropriations Act, 2005 (Pub. L. 108–
447, div. H, 118 Stat. 2809 at 3268)
requires the Department of
Transportation and certain other Federal
agencies to conduct a privacy impact
assessment of each proposed rule that
will affect the privacy of individuals.
Claims submitted under this rule will be
treated the same as all legal claims
received by MARAD. The processing
and treatment of any claim within the
scope of this rulemaking by MARAD
shall comply with all legal, regulatory
and policy requirements regarding
privacy.
Unfunded Mandates Reform Act of 1995
The Unfunded Mandates Reform Act
of 1995 requires Agencies to evaluate
whether an Agency action would result
in the expenditure by State, local, and
tribal governments, in the aggregate, or
by the private sector, of $156 million or
more (as adjusted for inflation) in any 1
year, and if so, to take steps to minimize
these unfunded mandates. This
rulemaking will not impose unfunded
mandates under the Unfunded
Mandates Reform Act of 1995. It will
not result in costs of $156 million or
more to either State, local, or tribal
governments, in the aggregate, or to the
private sector, and is the least
burdensome alternative that achieves
the objectives of the rule.
Regulation Identifier Number (RIN)
A regulation identifier number (RIN)
is assigned to each regulatory action
listed in the Unified Agenda of Federal
Regulations. The Regulatory Information
Service Center publishes the Unified
Agenda in April and October of each
year. The RIN contained in the heading
of this document can be used to crossreference this action with the Unified
Agenda.
Paperwork Reduction Act
Under the Paperwork Reduction Act
of 1995 (PRA) (44 U.S.C. 3501 et seq.),
Federal agencies must obtain approval
from OMB for each collection of
information they conduct, sponsor, or
require through regulations. This
rulemaking updates the regulations due
to amendments to the Maritime Security
Act. This rulemaking contains no new
or amended information collection or
recordkeeping requirements that have
been approved or require approval by
OMB.

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Comments on the Proposed Rule
In response to the agency’s Federal
Register document published on August
5, 2015 (80 FR 46527) seeking public
comment on its proposed revisions to 46
CFR part 296, a total of five separate
comment submissions were made by or
on behalf of the following entities: APL
Marine Services, Ltd. and its affiliated
companies (‘‘APL’’), American Roll-on
Roll-off Carrier Group Inc. (‘‘ARC
Group’’), Schuyler Line Navigation
Company, LLC, Liberty Global Logistics
LLC, and the Transportation Trades
Department, AFL–CIO (‘‘TTD’’). The
agency responds below to all comments.
One commenter noted that 46 CFR
296.30(h)(2) of the existing regulations
was omitted from the proposed
rulemaking and should be retained in a
final rule. We agree. The NDAA 2013
did not eliminate the provision
permitting an owner or operator of an
MSP vessel to transfer and register such
a vessel under an acceptable foreign
registry in the event sufficient funds are
not appropriated for any fiscal year by
the 60th day of that fiscal year. The text
of 46 CFR 296.30(h)(2) is retained in the
final rule.
The commenter also noted that the
definition of Foreign Commerce unduly
omitted certain services that were not
affected by the NDAA 2013. We agree.
While excluding from the definition of
Foreign Commerce certain bulk carrying
services, the NDAA 2013 did not
otherwise substantively change the
definition of Foreign Commerce. The
proposed definition unnecessarily
eliminated currently MSP-eligible
services. Therefore, these existing
services are retained in the final rule.
The commenter also recommended
amending 46 CFR 296.31(d)(2), to make
that section more consistent with the
text of 46 U.S.C. 53105(a) and the
regulatory definition of Foreign
Commerce of 46 CFR 296.2. We agree
that 46 CFR 296.31(d)(2), as currently
drafted, is inconsistent with 46 U.S.C.
53105(a) with its use of ‘‘foreign trade,’’
an undefined term, instead of ‘‘foreign
commerce’’ and thus may invite
confusion. Accordingly, we are
amending 46 CFR 296.31(d)(2) by
replacing ‘‘foreign trade’’ with ‘‘foreign
commerce’’ and retaining reference to
the registry endorsement requirement.
Three commenters recommended
increasing annual payments under the
MSP. Two recommended an annual
payment of $5 million per vessel
starting in fiscal year 2017. MSP
payment amounts are established by
statute. MARAD cannot adjust annual
payment amounts without a
corresponding legislative authorization.

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Nevertheless, the increased payments
authorized by the NDAA 2016 and CAA
2016 are included in the final rule.
Two commenters critiqued MARAD’s
administration of the MSP and made
recommendations that would require
significant amendments to our
regulations. These recommendations are
beyond the scope of the current
rulemaking implementing the NDAA
2013, but will be considered in the
event of a future rulemaking.
List of Subjects in 46 CFR Part 296
Assistance payments, Maritime
carriers, Reporting and recordkeeping
requirements.
For the reasons set out in the
preamble, the Maritime Administration
amends 46 CFR part 296 as follows:
PART 296—MARITIME SECURITY
PROGRAM (MSP)
1. The authority citation for part 296
is revised to read as follows:

■

Authority: Pub. L. 108–136, Pub. L. 109–
163, Pub. L. 112–239; 49 U.S.C. 322(a), 46
U.S.C. chapter 531, 49 CFR 1.93.

2. Amend § 296.2 by:
a. Revising the definitions of Foreign
Commerce, MSA 2003, Participating
Fleet Vessel, and Section 2 Citizen; and
■ b. Removing the definition of Lash
Vessel.
The revisions to read as follows:
■
■

§ 296.2

Definitions.

jstallworth on DSKBBY8HB2PROD with RULES

*

*
*
*
*
Foreign Commerce means a cargo
freight service, including direct and
relay service, operated exclusively in
the foreign trade or in mixed foreign and
domestic trade allowed under a registry
endorsement under 46 U.S.C. 12111
where the origination point or the
destination point of any cargo carried is
the United States, regardless of whether
the vessel provides direct service
between the United States and a foreign
country, or commerce or trade between
foreign countries.
*
*
*
*
*
MSA 2003 means the Maritime
Security Act of 2003, as amended.
*
*
*
*
*
Participating Fleet Vessel means a
vessel that—
(1) On October 1, 2015—
(i) Meets the requirements of
paragraph (1), (2), (3), or (4) of section
53102(c) of the MSA; and
(ii) Is less than 20 years of age if the
vessel is a tank vessel, or is less than 25
years of age for all other vessel types;
and

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(2) on December 31, 2014, is covered
by an MSP Operating Agreement under
46 U.S.C. chapter 531.
*
*
*
*
*
Section 2 Citizen means a United
States citizen within the meaning of 46
U.S.C. 50501, without regard to any
statute that ‘‘deems’’ a vessel to be
owned and operated by a United States
citizen within the meaning of 46 U.S.C.
50501.
*
*
*
*
*
■ 3. Amend § 296.11 by revising
paragraph (a)(3) to read as follows:
§ 296.11

Vessel requirements.

(a) * * *
(3) The vessel is self-propelled and—
(i) Is a tank vessel that is 10 years of
age or less on the date the vessel is
included in the Fleet; or
(ii) Is any other type of vessel that is
15 years of age or less on the date the
vessel is included in the Fleet;
*
*
*
*
*
§§ 296.21, 296.22, 296.23
reserved]

[Removed and

4. Remove and reserve §§ 296.21
through 296.23.
■ 5. Revise § 296.24 to read as follows:
■

§ 296.24 Subsequent awards of MSP
Operating Agreements.

(a) MARAD intends to ensure that all
available MSP Operating Agreements
are fully utilized at all times in order to
maximize the benefit of the MSP.
Accordingly, when an MSP Operating
Agreement becomes available through
termination by the Secretary or early
termination by the MSP contractor, and
no transfer under 46 U.S.C. 53105(e) is
involved, MARAD will reissue the MSP
Operating Agreement pursuant to the
following criteria:
(1) The proposed vessel shall meet the
requirements for vessel eligibility in 46
U.S.C. 53102(b);
(2) The applicant shall meet the vessel
ownership and operating requirements
for priority in 46 U.S.C. 53102(c); and
(3) Priority will be assigned on the
basis of vessel type established by
military requirements specified by the
Secretary of Defense. After
consideration of military requirements,
priority shall be given to an applicant
that is a United States citizen under
section 50501 of this title.
(b) MARAD shall allow an applicant
at least 30 days to submit an application
for a new MSP Operating Agreement.
(c) MARAD and USTRANSCOM will
determine if the applications received
form an adequate pool for award of a
reissued MSP Operating Agreement. If
so, MARAD will award a reissued MSP

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Operating Agreement from that pool of
qualified applicants in its discretion
according to the procedures of
paragraph (a) of this section, subject to
approval of the Secretary of Defense.
MARAD and USTRANSCOM may
decide to open a new round of
applications. MARAD shall provide
written reasons for denying
applications. In as much as MSP
furthers a public purpose and MARAD
does not acquire goods or services
through MSP, the selection process for
award of MSP Operating Agreements
does not constitute an acquisition
process subject to any procurement law
or the Federal Acquisition Regulations.
■ 6. Revise § 296.30 to read as follows:
§ 296.30

General conditions.

(a) Approval. The Secretary, in
conjunction with the Secretary of
Defense, may approve applications to
enter into a MSP Operating Agreement
and make MSP Payments with respect
to vessels that are determined by the
Secretary to be commercially viable and
deemed by the Secretary of Defense to
be militarily useful for meeting the
sealift needs of the United States in time
of war or national emergencies. The
Secretary announced an initial award of
60 MSP Operating Agreements on
January 12, 2005. In June 2014, the
Secretary extended the term of all 60
MSP Operating Agreements through FY
2025.
(b) Effective date—(1) General rule.
Unless otherwise provided, the effective
date of an MSP Operating Agreement is
October 1, 2005.
(2) Exceptions. In the case of an
Eligible Vessel to be included in an MSP
Operating Agreement that is on charter
to the U.S. Government, other than a
charter under the provisions of an
Emergency Preparedness Agreement
(EPA) provided by 46 U.S.C. 53107, as
amended, unless an earlier date is
requested by the applicant, the effective
date for an MSP Operating Agreement
shall be:
(i) The expiration or termination date
of the Government charter covering the
vessel; or
(ii) Any earlier date on which the
vessel is withdrawn from that charter,
but not before October 1, 2005.
(c) Replacement vessels. A Contractor
may replace an MSP vessel under an
MSP Operating Agreement with another
vessel that is eligible to be included in
the MSP under section 296.11(a), if the
Secretary, in conjunction with the
Secretary of Defense, approves the
replacement vessel.
(d) Termination by the Secretary. If
the Contractor materially fails to comply

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with the terms of the MSP Operating
Agreement:
(1) The Secretary shall notify the
Contractor and provide a reasonable
opportunity for the Contractor to
comply with the MSP Operating
Agreement;
(2) The Secretary shall terminate the
MSP Operating Agreement if the
Contractor fails to achieve such
compliance; and
(3) Upon such termination, any funds
obligated by the relevant MSP Operating
Agreement shall be available to the
Secretary to carry out the MSP.
(e) Early termination by Contractor,
generally. An MSP Operating
Agreement shall terminate on a date
specified by the Contractor if the
Contractor notifies the Secretary not
later than 60 days before the effective
date of the proposed termination that
the Contractor intends to terminate the
MSP Operating Agreement. The
Contractor shall be bound by the
provisions relating to vessel
documentation and national security
commitments, and by its EPA for the
full term, from October 1, 2005, through
September 30, 2025, of the MSP
Operating Agreement.
(f) [Reserved]
(g) Non-renewal for lack of funds. If,
by the first day of a fiscal year, sufficient
funds have not been appropriated under
the authority of MSA 2003, as amended,
for that fiscal year, the Secretary will
notify the Senate Committees on Armed
Services and Commerce, Science, and
Transportation, and the House of
Representatives Committee on Armed
Services, that MSP Operating
Agreements for which sufficient funds
are not available will not be renewed for
that fiscal year if sufficient funds are not
appropriated by the 60th day of that
fiscal year. If only partial funding is
appropriated by the 60th day of such
fiscal year, then the Secretary, in
consultation with the Secretary of
Defense, shall select the vessels to retain
under MSP Operating Agreements,
based on the Secretaries’ determinations
of the most militarily useful and
commercially viable vessels. In the
event that no funds are appropriated,
then all MSP Operating Agreements
shall be terminated, and each Contractor
shall be released from its obligations
under the MSP Operating Agreement.
Final payments under the terminated
MSP Operating Agreements shall be
made in accordance with § 296.41. To
the extent that funds are appropriated in
a subsequent fiscal year, former MSP
Operating Agreements may be reinstated
if mutually acceptable to the
Administrator and the Contractor,

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provided the MSP vessel remains
eligible.
(h) Release of vessels from
obligations. If sufficient funds are not
appropriated for payments under an
MSP Operating Agreement for any fiscal
year by the 60th day of that fiscal year,
then—
(1) Each vessel covered by a
terminated MSP Operating Agreement is
released from any further obligation
under the MSP Operating Agreement;
(2) The owner and operator of a nontank vessel may transfer and register the
applicable vessel under foreign registry
deemed acceptable by the Secretary and
the SecDef, notwithstanding 46 U.S.C.
chapter 561 and 46 CFR part 221;
(3) If section 902 of the Act is
applicable to a vessel that has been
transferred to a foreign registry due to a
terminated MSP Operating Agreement,
then that vessel is available to be
requisitioned by the Secretary pursuant
to section 902 of the Act; and
(4) Paragraph (h) of this section is not
applicable to vessels under MSP
Operating Agreements that have been
terminated for any other reason.
(i) Foreign transfer of vessel. A
Contractor may transfer a non-tank
vessel to a foreign registry, without
approval of the Secretary, if the
Secretary, in conjunction with the
Secretary of Defense, determines that
the contractor will provide a
replacement vessel:
(1) Of equal or greater military
capability and of a capacity that is
equivalent or greater as measured in
deadweight tons, gross tons, or
container equivalent units, as
appropriate;
(2) That is a documented vessel under
46 U.S.C. chapter 121 by the owner of
the vessel to be placed under a foreign
registry; and
(3) That is not more than 10 years of
age on the date of that documentation.
(j) Transfer of MSP Operating
Agreements. A contractor under an MSP
Operating Agreement may transfer the
agreement (including all rights and
obligations under the MSP Operating
Agreement) to any person that is eligible
to enter into the MSP Operating
Agreement under this chapter if the
Secretary and the Secretary of Defense
determine that the transfer is in the best
interests of the United States. A
transaction shall not be considered a
transfer of an MSP Operating Agreement
if the same legal entity with the same
vessels remains the contracting party
under the MSP Operating Agreement.
■ 7. Amend § 296.31 by revising
paragraphs (a) and (d)(2) to read as
follows:

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§ 296.31

MSP assistance conditions.

(a) Term of MSP Operating
Agreement. MSP Operating Agreements
are authorized for 20 years, starting on
October 1, 2005, and ending on
September 30, 2025, but payments to
Contractors are subject to annual
appropriations each fiscal year. MARAD
may enter into MSP Operating
Agreements for a period less than the
full term authorized under the MSA
2003, as amended.
*
*
*
*
*
(d) * * *
(2) Operation: Be operated exclusively
in the foreign commerce or in mixed
foreign commerce and domestic trade
allowed under a registry endorsement
issued under 46 U.S.C. 12111, and shall
not otherwise be operated in the
coastwise trade of the United States; and
*
*
*
*
*
■ 8. Amend § 296.32 by revising the
introductory text to read as follows:
§ 296.32

Reporting requirements.

The Contractor shall submit to the
Director, Office of Financial Approvals,
Maritime Administration, 2nd Floor,
West Building, 1200 New Jersey Ave.
SE., Washington, DC 20590, one of the
following reports, including
management footnotes where necessary
to make a fair financial presentation:
*
*
*
*
*
■ 9. Revise § 296.40 to read as follows:
§ 296.40

Billing procedures.

Submission of voucher. For
contractors operating under more than
one MSP Operating Agreement, the
contractor may submit a single monthly
voucher applicable to all its MSP
Operating Agreements. Each voucher
submission shall include a certification
that the vessel(s) for which payment is
requested were operated in accordance
with § 296.31(d) and applicable MSP
Operating Agreements with MARAD,
and consideration shall be given to
reductions in amounts payable as set
forth in § 296.41(b) and (c). All
submissions shall be forwarded to the
Director, Office of Accounting, MAR–
330, Maritime Administration, 2nd
Floor, West Building, 1200 New Jersey
Ave. SE., Washington, DC 20590.
Payments shall be paid and processed
under the terms and conditions of the
Prompt Payment Act, 31 U.S.C. 3901.
■ 10. Amend § 296.41 by revising
paragraph (a) to read as follows:
§ 296.41

Payment procedures.

(a) Amount payable. An MSP
Operating Agreement shall provide,
subject to the availability of
appropriations and to the extent the

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Federal Register / Vol. 82, No. 230 / Friday, December 1, 2017 / Rules and Regulations
MSP Operating Agreement is in effect,
for each Agreement Vessel, an annual
payment equal to $2,600,000 for FY
2006, FY 2007, FY 2008; $2,900,000 for
FY 2009, FY 2010, FY 2011; $3,100,000
for FY 2012, FY 2013, FY 2014, and FY
2015; $3,500,000 for FY 2016;
$4,999,950 for FY 2017; $5,000,000 for
FY 2018, FY 2019, and FY 2020;
$5,233,463 for FY 2021; and $3,700,000
for FY 2022, FY 2023, FY 2024, and FY
2025. This amount shall be paid in
equal monthly installments at the end of
each month. The annual amount
payable shall not be reduced except as
provided in paragraphs (b) and (c) of
this section.
*
*
*
*
*
Subpart G—[Removed]
11. Remove Subpart G, consisting of
§ 296.60.

■

Dated: November 28, 2017.
By Order of the Maritime Administrator.
T. Mitchell Hudson, Jr.,
Secretary, Maritime Administration.
[FR Doc. 2017–25898 Filed 11–30–17; 8:45 am]
BILLING CODE 4910–81–P

DEPARTMENT OF TRANSPORTATION
Maritime Administration
46 CFR Part 356
RIN 2133–AB86

Requirements To Document U.S.-Flag
Fishing Industry Vessels of 100 Feet or
Greater in Registered Length
Maritime Administration,
Department of Transportation.
ACTION: Final rule.
AGENCY:

The Maritime Administration
(‘‘MARAD’’) is amending its regulations
which implement new requirements
regarding certain large fishing industry
vessels set forth in the American
Fisheries Act of 1998 (‘‘AFA’’), as
amended by the Coast Guard
Authorization Act of 2010 (‘‘CGAA’’)
and the Coast Guard and Maritime
Transportation Act of 2012 (‘‘CGMTA’’).
The revisions to the regulation adds two
new exceptions to the restrictions on the
eligibility of vessels over 165 feet in
registered length to be documented with
fishery endorsements, eliminates the
15-day application deadline for vessels
whose fishery endorsements have
become invalid, limits fishery
endorsement eligibility for certain large
fishing industry vessels, and eliminates
certain exemptions for specific vessels
that were deleted in the CGMTA. In
addition, MARAD is revising its Large

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Vessel Certification form to incorporate
these new requirements.
DATES: This final rule becomes effective
on January 2, 2018.
FOR FURTHER INFORMATION CONTACT:
Michael C. Pucci, Attorney Advisor,
Division of Maritime Programs,
Maritime Administration, at (202) 366–
5320. You may send mail to Michael C.
Pucci at Maritime Administration, 1200
New Jersey Avenue SE., MAR 222,
W24–214, Washington, DC 20590–0001.
You may send electronic mail to
[email protected].
SUPPLEMENTARY INFORMATION:
Background
Section 602(a) of the CGAA added
two new exceptions to the restrictions
on the eligibility of vessels over 165 feet
in registered length to be documented
with fishery endorsements found at 46
U.S.C. 12113(d): (1) Replaced or rebuilt
vessels and (2) fish tender vessels. The
CGAA also eliminated the 15-day
application deadline for vessels whose
fishery endorsements had become
invalid. Exemptions from the large
fishing industry vessel restrictions are
found in our regulations at 46 CFR
356.47.
In addition, section 601(b)(2) of the
CGAA repealed section 203(g) of the
AFA, which exempted particular vessels
from the ownership requirements of 46
U.S.C. 12113. These exempt vessels are
currently listed in our regulations at 46
CFR 356.51.
Section 307 of the CGMTA (‘‘Section
307’’) added further restrictions on large
vessels under 46 U.S.C. 12113(d) by
limiting those vessels from participating
in the non-AFA trawl catcher processor
subsector.
Accordingly, MARAD is updating its
regulations under 46 CFR part 356 to
reflect these amendments to the AFA
and 46 U.S.C. 12113.
In addition to updating our
regulations under 46 CFR part 356,
MARAD is revising its Large Vessel
Certificate to reflect the amendments to
46 U.S.C. 12113. Owners of fishing
industry vessels 165 feet or greater in
registered length are required to submit
a Large Vessel Certificate to MARAD on
an annual basis under 46 CFR 356.47(e).
The revisions to the form include
provisions for the replacement and fish
tender vessels as well as a provision that
an AFA sector vessel is neither
participating in nor eligible to
participate in the non-AFA trawl
catcher-processor sector.
Finally, MARAD is amending 46 CFR
356.47(a) to update the statutory citation
to the current code sections.

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Rulemaking Analysis and Notices
Executive Orders 12866 (Regulatory
Planning and Review), 13563
(Improving Regulation and Regulatory
Review) and DOT Regulatory Policies
and Procedures. Under E.O. 12866 (58
FR 51735, October 4, 1993),
supplemented by E.O. 13563 (76 FR
3821, January 18, 2011) and DOT
policies and procedures, MARAD must
determine whether a regulatory action is
‘‘significant,’’ and, therefore, subject to
OMB review and the requirements of
the E.O. The Order defines ‘‘significant
regulatory action’’ as one likely to result
in a rule that may: (1) Have an annual
effect on the economy of $100 million
or more or adversely affect in a material
way the economy, a sector of the
economy, productivity, competition,
jobs, the environment, public health or
safety, or State, local, or tribal
government or communities. (2) Create
a serious inconsistency or otherwise
interfere with an action taken or
planned by another Agency. (3)
Materially alter the budgetary impact of
entitlements, grants, user fees, or loan
programs or the rights and obligations of
recipients thereof. (4) Raise novel legal
or policy issues arising out of legal
mandates, the President’s priorities, or
the principles set forth in the E.O.
MARAD has determined that this
final rule is not a significant regulatory
action under section 3(f) of Executive
Order 12866 and, therefore, it was not
reviewed by the Office of Management
and Budget. This rulemaking will not
result in an annual effect on the
economy of $100 million or more. It is
also not considered a major rule for
purposes of Congressional review under
Public Law 104–121. This rulemaking is
also not significant under the Regulatory
Policies and Procedures of the
Department of Transportation (44 FR
11034, February 26, 1979). The costs
and overall economic impact of this
rulemaking do not require further
analysis.
Executive Order 13771 (Reducing
Regulation and Controlling Regulatory
Costs)
This rule is not an E.O. 13771
regulatory action because this rule is not
significant under E.O. 12866.
Executive Order 13132 (Federalism)
We analyzed this rulemaking in
accordance with the principles and
criteria contained in Executive Order
13132 (‘‘Federalism’’) and have
determined that it does not have
sufficient Federalism implications to
warrant the preparation of a Federalism
summary impact statement. This

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