80 FR 46527 - Maritime Security Program

DEPARTMENT OF TRANSPORTATION
Maritime Administration

Federal Register Volume 80, Issue 150 (August 5, 2015)

Page Range		46527-46531
FR Document		2015-19254
The Maritime Administration (``MARAD'') is soliciting public comments on amendments to its regulations that implement amendments to the Maritime Security Act of 2003 by the National Defense Authorization Act for Fiscal Year 2013 (``NDAA 2013''). The proposed revisions to the regulation, among other things, make changes to vessel eligibility for participation in the Maritime Security Program (MSP), authorize the extension of current MSP Operating Agreements, establish a new procedure for the award of new MSP Operating Agreements, extend the MSP through fiscal year 2025, update the Operating Agreement payments and schedule of payments, and eliminate the Maintenance and Repair Pilot Program.
Federal Register, Volume 80 Issue 150 (Wednesday, August 5, 2015)
[Federal Register Volume 80, Number 150 (Wednesday, August 5, 2015)]
[Proposed Rules]
[Pages 46527-46531]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-19254]



[[Page 46527]]

-----------------------------------------------------------------------

DEPARTMENT OF TRANSPORTATION

Maritime Administration

46 CFR Part 296

[Docket Number MARAD-2014-0043]
RIN 2133-AB86


Maritime Security Program

AGENCY: Maritime Administration, Department of Transportation.

ACTION: Notice of proposed rulemaking, request for comments.

-----------------------------------------------------------------------

SUMMARY: The Maritime Administration (``MARAD'') is soliciting public 
comments on amendments to its regulations that implement amendments to 
the Maritime Security Act of 2003 by the National Defense Authorization 
Act for Fiscal Year 2013 (``NDAA 2013''). The proposed revisions to the 
regulation, among other things, make changes to vessel eligibility for 
participation in the Maritime Security Program (MSP), authorize the 
extension of current MSP Operating Agreements, establish a new 
procedure for the award of new MSP Operating Agreements, extend the MSP 
through fiscal year 2025, update the Operating Agreement payments and 
schedule of payments, and eliminate the Maintenance and Repair Pilot 
Program.

DATES: Comments must be received on or before October 5, 2015. MARAD 
will consider comments filed after this date to the extent practicable.

ADDRESSES: You may submit comments identified by DOT Docket Number 
MARAD-2014-0043 by any of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
Search MARAD-2014-0043 and follow the instructions for submitting 
comments.
     Email: [email protected]. Include MARAD-2014-0043 
in the subject line of the message.
     Fax: (202) 493-2251.
     Mail: Docket Management Facility, U.S. Department of 
Transportation, 1200 New Jersey Avenue SE., West Building, Room W12-
140, Washington, DC 20590. If you would like to know that your comments 
reached the facility, please enclose a stamped, self-addressed postcard 
or envelope.
     Hand Delivery/Courier: Docket Management Facility, U.S. 
Department of Transportation, 1200 New Jersey Avenue SE., West 
Building, Room W12-140, Washington, DC 20590. The Docket Management 
Facility is open 9:00 a.m. to 5:00 p.m., Monday through Friday, except 
on Federal holidays.

    Note:  If you fax, mail or hand deliver your input we recommend 
that you include your name and a mailing address, an email address, 
or a telephone number in the body of your document so that we can 
contact you if we have questions regarding your submission. If you 
submit your inputs by mail or hand delivery, submit them in an 
unbound format, no larger than 8 1/2 by 11 inches, suitable for 
copying and electronic filing.

    Instructions: All submissions received must include the agency name 
and docket number or Regulatory Information Number (RIN) for this 
rulemaking. All comments received will be posted without change to the 
docket at www.regulations.gov, including any personal information 
provided. For detailed instructions on submitting comments and 
additional information on the rulemaking process, see the section 
entitled Public Participation.

FOR FURTHER INFORMATION CONTACT: William G. Kurfehs, Acting Director, 
Office of Sealift Support, U.S. Department of Transportation, Maritime 
Administration, 1200 New Jersey Avenue SE, Washington, DC 20590. 
Telephone (202) 366-2318; Fax (202) 366-5904, electronic mail to 
[email protected]. If you have questions on viewing the Docket, call 
Docket Operations, telephone: (800) 647-5527.

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. Section 3508 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 Operating 
Agreements by eliminating the requirement to first offer an 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 by available replacement vessels. Section 3508 also the 
eliminated the eligibility of Lighter Aboard Ship (LASH) vessels to 
participate in the MSP Fleet as a stand-alone category of vessel. The 
proposed rule eliminates the Maintenance and Repair Pilot Program, 
which has sunset and was not extended by the NDAA 2013. The proposed 
rule also updates MARAD's address for the purposes of submitting 
required reports and vouchers.

Public Participation

    Your comments must be written and in English. To ensure that your 
comments are correctly filed in the Docket, please include the docket 
number in your comments. MARAD encourages you to provide concise 
comments. However, you may attach necessary additional documents to 
your comments. There is no limit on the length of the attachments. 
Please submit your comments, including the attachments, following the 
instructions provided under the above heading entitled ADDRESSES.
    If you wish to submit any information under a claim of 
confidentiality, you should submit three copies of your complete 
submission, including the information you claim to be confidential 
business information, to the Department of Transportation, Maritime 
Administration, Office of Legislation and Regulations, MAR-225, W24-
220, 1200 New Jersey Avenue SE, Washington, DC 20590. When you send 
comments containing information claimed to be confidential information, 
you should include a cover letter setting forth with specificity the 
basis for any such claim and, if possible, a summary of your submission 
that could be made available to the public.
    MARAD will consider all comments received before the close of 
business on the comment closing date indicated above under DATES. To 
the extent possible, MARAD will also consider comments received after 
that date. If a comment is received too late for MARAD to consider in 
developing a final rule (assuming that one is issued), MARAD will 
consider that comment as an informal suggestion for future rulemaking 
action.
    For access to the docket to read background documents, including 
those referenced in this document, or to submit or read comments 
received, go to the Docket Management Facility, U.S. Department of 
Transportation, 1200 New Jersey Avenue SE., West Building, Room W12-
140, Washington, DC 20590. The Docket Management Facility is open 9:00 
a.m. to 5:00 p.m., Monday through Friday, except on Federal holidays. 
To review documents, read comments or to submit comments, the

[[Page 46528]]

docket is also available online at http://www.regulations.gov., keyword 
search MARAD-2014-0043.
    Please note that even after the comment period has closed, MARAD 
will continue to file relevant information in the Docket as it becomes 
available. Further, some people may submit late comments. Accordingly, 
MARAD recommends that you periodically check the Docket for new 
material.

Privacy Act

    Anyone is able to search the electronic form of all comments 
received into any of our dockets by the name of the individual 
submitting the comment (or signing the comment, if submitted on behalf 
of an association, business, labor union, etc.). You may review the DOT 
Privacy Act system of records notice for the Federal Docket Management 
System (FDMS) in the Federal Register published on January 17, 2008, 
(73 FR 3316) at http://edocket.access.thefederalregister.org/2008/pdf/E8-785.pdf.

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. 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; 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.
    A determination has been made that this notice of proposed 
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.

Executive Order 13132 (Federalism)

    This rulemaking was analyzed 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 
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.

Executive Order 13175 (Consultation and Coordination With Indian Tribal 
Governments)

    MARAD does not believe that this rulemaking will significantly or 
uniquely affect the communities of Indian tribal governments when 
analyzed under the principles and criteria contained in Executive Order 
13175 (Consultation and Coordination with Indian Tribal Governments). 
Therefore, the funding and consultation requirements of this Executive 
Order do not apply.

Executive Order 12372 (Intergovernmental Review)

    The regulations implementing Executive Order 12372 regarding 
intergovernmental consultation on Federal programs and activities do 
not apply to this rulemaking.

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.

Environmental Assessment

    We have analyzed this rulemaking for purposes of compliance with 
the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) 
and have concluded that under the categorical exclusions provision in 
section 4.05 of Maritime Administrative Order (MAO) 600-1, ``Procedures 
for Considering Environmental Impacts,'' 50 FR 11606 (March 22, 1985), 
neither the preparation of an Environmental Assessment, an 
Environmental Impact Statement, nor a Finding of No Significant Impact 
for this rulemaking is required. This rulemaking has no environmental 
impact.

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 13045 (Protection of Children)

    Executive Order 13045, Protection of Children from Environmental 
Health Risks and Safety Risks, requires agencies issuing ``economically 
significant'' rules that involve an environmental health or safety risk 
that may disproportionately affect children, to include an evaluation 
of the regulation's environmental health and safety effects on 
children. As discussed previously, this rulemaking is not economically 
significant, and will cause no environmental or health risk that 
disproportionately affects children.

Executive Order 12988 (Civil Justice Reform)

    This action meets applicable standards in sections 3(a) and 3(b)(2) 
of E.O. 12988, Civil Justice Reform, to minimize litigation, eliminates 
ambiguity, and reduce burden.

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 is not expected to contain standards-related 
activities that create unnecessary obstacles to the foreign commerce of 
the United States.

Privacy Impact Assessment

    Section 522(a)(5) of the Transportation, Treasury, Independent 
Agencies, and General Government Appropriations Act, 2005 (Pub. L. 108-

[[Page 46529]]

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 $141.3 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 
$141.3 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 number contained in the heading 
of this document can be used to cross-reference 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 proposes to update 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.

List of Subjects in 46 CFR Part 296

    Assistance payments, Maritime carriers, Reporting and record 
keeping requirements.

    For the reasons set out in the preamble, the Maritime 
Administration proposes to amend 46 CFR part 296 as follows:

PART 296--MARITIME SECURITY PROGRAM

0
1. The authority citation for part 296 is revised to read as follows:

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

0
2. Amend Sec.  296.2 by:
0
a. Revising the definitions of Foreign Commerce, MSA 2003, 
Participating Fleet Vessel, and Section 2 Citizen; and
0
b. Removing the definition of Lash Vessel.
    The revisions to read as follows:


Sec.  296.2  Definitions.

* * * * *
    Foreign Commerce means--
    (1) Commerce or trade between the United States, its territories, 
or the District of Columbia, and a foreign country; and
    (2) 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 old of age if the vessel is a tank 
vessel, or is less than 25 years of age for all other vessel types; and
    (2) on December 31, 2014, is covered by an 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.
* * * * *
0
3. Amend Sec.  296.11(a)(3) by revising it to read as follows:


Sec.  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;
* * * * *
    Sec. Sec.  296.21, 296.22, 296.23 [Removed and reserved].
0
4. Remove and reserve Sec. Sec.  296.21 through 296.23.
0
5. Revise Sec.  296.24 to read as follows:


Sec.  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. 53103(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--
    (i) Is a United States citizen under section 50501 of this title; 
and
    (ii) Offers a vessel of the type established by the Secretary of 
Defense as meeting military requirements.
    (b) MARAD shall allow an applicant at least 30 days to submit an 
application for a new 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 Operating Agreement 
from that pool of qualified applicants in its discretion according to 
the procedures of paragraph (b) 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. Inasmuch 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.
0
6. Revise Sec.  296.30 to read as follows:


Sec.  296.30  General conditions.

    (a) Approval. The Secretary, in conjunction with the Secretary of 
Defense, may approve applications to enter into an MSP Operating 
Agreement and make MSP Payments with respect

[[Page 46530]]

to vessels that are determined by the Secretary to be commercially 
viable and those that are 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 section 53107 of the MSA 2003, 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 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 Representative 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 section 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 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 the terminated MSP Operating Agreement 
is released from any further obligation under the MSP Operating 
Agreement; and
    (2) 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.
    (3) 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 or 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 
operating agreement may transfer the agreement (including all rights 
and obligations under the operating agreement) to any person that is 
eligible to enter into the 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 operating agreement if the same legal 
entity with the same vessels remains the contracting party under the 
operating agreement.
0
7. Amend Sec.  296.31 by revising paragraphs (a) and (d)(2) and adding 
paragraph (e)(2)to read as follows:


Sec.  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 trade and 
shall not otherwise be operated in the coastwise trade of the United 
States; and
* * * * *
    (e) * * *
    (2) [Reserved]
0
8. Amend Sec.  296.32 by revising the introductory text to read as 
follows:
    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:
* * * * *

[[Page 46531]]

0
9. Revise Sec.  296.40 to read as follows:


Sec.  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 Sec.  296.31(d) 
MSP Operating Agreements with MARAD, and consideration shall be given 
to reductions in amounts payable as set forth in Sec.  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.
0
10. Amend Sec.  296.41 by revising paragraph (a) to read as follows:


Sec.  296.41  Payment procedures.

    (a) Amount payable. An MSP Operating Agreement shall provide, 
subject to the availability of appropriations and to the extent the 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; and $3,100,000 for FY 2012, FY 2013, FY 
2014, FY 2015, FY 2016, 2017, and 2018; $3,500,000 for FY 2019, 2020, 
and 2021; and $3,700,000 for FY 2022, 2023, 2024, and 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]

0
11. Remove Subpart G, consisting of Sec.  296.60.

    Dated: July 31, 2015.

    By Order of the Maritime Administrator.
T. Mitchell Hudson, Jr.,
Secretary, Maritime Administration.
[FR Doc. 2015-19254 Filed 8-4-15; 8:45 am]
 BILLING CODE 4910-81-P
Federal Register / Vol. 80, No. 150 / Wednesday, August 5, 2015 / Proposed Rules 46529

447, div. H, 118 Stat. 2809 at 3268) proposes to amend 46 CFR part 296 as ■ 4. Remove and reserve §§ 296.21
requires the Department of follows: through 296.23.
Transportation and certain other Federal ■ 5. Revise § 296.24 to read as follows:
agencies to conduct a privacy impact PART 296—MARITIME SECURITY
PROGRAM § 296.24 Subsequent awards of MSP
assessment of each proposed rule that
Operating Agreements.
will affect the privacy of individuals.
■ 1. The authority citation for part 296 (a) MARAD intends to ensure that all
Claims submitted under this rule will be
is revised to read as follows: available MSP Operating Agreements
treated the same as all legal claims
received by MARAD. The processing Authority: Pub. L. 108–136, Pub. L. 109– are fully utilized at all times, in order
and treatment of any claim within the 163, Pub. L. Pub. L. 112–239; 49 U.S.C. to maximize the benefit of the MSP.
scope of this rulemaking by MARAD 322(a), 49 CFR 1.93. Accordingly, when an MSP Operating
shall comply with all legal, regulatory ■ 2. Amend § 296.2 by: Agreement becomes available through
and policy requirements regarding ■ a. Revising the definitions of Foreign termination by the Secretary or early
privacy. Commerce, MSA 2003, Participating termination by the MSP contractor, and
Fleet Vessel, and Section 2 Citizen; and no transfer under 46 U.S.C. 53105(e) is
Unfunded Mandates Reform Act of 1995 ■ b. Removing the definition of Lash involved, MARAD will reissue the MSP
The Unfunded Mandates Reform Act Vessel. Operating Agreement pursuant to the
of 1995 requires Agencies to evaluate The revisions to read as follows: following criteria:
whether an Agency action would result (1) The proposed vessel shall meet the
§ 296.2 Definitions. requirements for vessel eligibility in 46
in the expenditure by State, local, and
* * * * * U.S.C. 53102(b);
tribal governments, in the aggregate, or
Foreign Commerce means— (2) The applicant shall meet the vessel
by the private sector, of $141.3 million (1) Commerce or trade between the
or more (as adjusted for inflation) in any ownership and operating requirements
United States, its territories, or the for priority in 46 U.S.C. 53103(c); and
1 year, and if so, to take steps to District of Columbia, and a foreign
minimize these unfunded mandates. (3) Priority will be assigned on the
country; and basis of vessel type established by
This rulemaking will not impose (2) Commerce or trade between
unfunded mandates under the military requirements specified by the
foreign countries. Secretary of Defense. After
Unfunded Mandates Reform Act of
* * * * * consideration of military requirements,
1995. It will not result in costs of $141.3
MSA 2003 means the Maritime priority shall be given to an applicant
million or more to either State, local, or
Security Act of 2003, as amended. that—
tribal governments, in the aggregate, or
* * * * * (i) Is a United States citizen under
to the private sector, and is the least
Participating Fleet Vessel means a section 50501 of this title; and
burdensome alternative that achieves
vessel that— (ii) Offers a vessel of the type
the objectives of the rule.
(1) On October 1, 2015— established by the Secretary of Defense
Regulation Identifier Number (RIN) (i) Meets the requirements of as meeting military requirements.
paragraph (1), (2), (3), or (4) of section (b) MARAD shall allow an applicant
A regulation identifier number (RIN)
53102(c) of the MSA; and at least 30 days to submit an application
is assigned to each regulatory action (ii) Is less than 20 years old of age if for a new Operating Agreement.
listed in the Unified Agenda of Federal the vessel is a tank vessel, or is less than (c) MARAD and USTRANSCOM will
Regulations. The Regulatory Information 25 years of age for all other vessel types; determine if the applications received
Service Center publishes the Unified and form an adequate pool for award of a
Agenda in April and October of each (2) on December 31, 2014, is covered reissued MSP Operating Agreement. If
year. The RIN number contained in the by an operating agreement under 46 so, MARAD will award a reissued MSP
heading of this document can be used U.S.C. chapter 531. Operating Agreement from that pool of
to cross-reference this action with the
* * * * * qualified applicants in its discretion
Unified Agenda.
Section 2 Citizen means a United according to the procedures of
Paperwork Reduction Act States citizen within the meaning of 46 paragraph (b) of this section, subject to
U.S.C. 50501, without regard to any approval of the Secretary of Defense.
Under the Paperwork Reduction Act
statute that ‘‘deems’’ a vessel to be MARAD and USTRANSCOM may
of 1995 (PRA) (44 U.S.C. 3501 et seq.),
owned and operated by a United States decide to open a new round of
Federal agencies must obtain approval
citizen within the meaning of 46 U.S.C. applications. MARAD shall provide
from OMB for each collection of
50501. written reasons for denying
information they conduct, sponsor, or
* * * * * applications. Inasmuch as MSP furthers
require through regulations. This
■ 3. Amend § 296.11(a)(3) by revising it a public purpose and MARAD does not
rulemaking proposes to update the
to read as follows: acquire goods or services through MSP,
regulations due to amendments to the
the selection process for award of MSP
Maritime Security Act. This rulemaking § 296.11 Vessel requirements. Operating Agreements does not
contains no new or amended (a) * * * constitute an acquisition process subject
information collection or recordkeeping (3) The vessel is self-propelled and— to any procurement law or the Federal
requirements that have been approved (i) Is a tank vessel that is 10 years of Acquisition Regulations.
or require approval by OMB.
Lhorne on DSK7TPTVN1PROD with PROPOSALS

age or less on the date the vessel is ■ 6. Revise § 296.30 to read as follows:
List of Subjects in 46 CFR Part 296 included in the Fleet; or
(ii) Is any other type of vessel that is § 296.30 General conditions.
Assistance payments, Maritime 15 years of age or less on the date the (a) Approval. The Secretary, in
carriers, Reporting and record keeping vessel is included in the Fleet; conjunction with the Secretary of
requirements. * * * * * Defense, may approve applications to
For the reasons set out in the §§ 296.21, 296.22, 296.23 [Removed enter into an MSP Operating Agreement
preamble, the Maritime Administration and reserved]. and make MSP Payments with respect

VerDate Sep<11>2014 14:26 Aug 04, 2015 Jkt 235001 PO 00000 Frm 00009 Fmt 4702 Sfmt 4702 E:\FR\FM\05AUP1.SGM 05AUP1
46530 Federal Register / Vol. 80, No. 150 / Wednesday, August 5, 2015 / Proposed Rules

to vessels that are determined by the documentation and national security approval of the Secretary, if the
Secretary to be commercially viable and commitments, and by its EPA for the Secretary, in conjunction with the
those that are deemed by the Secretary full term, from October 1, 2005 through Secretary of Defense, determines that
of Defense to be militarily useful for September 30, 2025, of the MSP the contractor will provide a
meeting the sealift needs of the United Operating Agreement. replacement vessel:
States in time of war or national (f) [Reserved]. (1) Of equal or greater military
emergencies. The Secretary announced (g) Non-renewal for lack of funds. If, capability or of a capacity that is
an initial award of 60 MSP Operating by the first day of a fiscal year, sufficient equivalent or greater as measured in
Agreements on January 12, 2005. In June funds have not been appropriated under deadweight tons, gross tons, or
2014, the Secretary extended the term of the authority of MSA 2003, as amended, container equivalent units, as
all 60 MSP Operating Agreements for that fiscal year, the Secretary will appropriate;
through FY 2025. notify the Senate Committees on Armed (2) That is a documented vessel under
(b) Effective date—(1) General Rule. Services and Commerce, Science, and 46 U.S.C. chapter 121 by the owner of
Unless otherwise provided, the effective Transportation, and the House of the vessel to be placed under a foreign
date of an MSP Operating Agreement is Representative Committee on Armed registry; and
October 1, 2005. Services, that MSP Operating (3) That is not more than 10 years of
(2) Exceptions. In the case of an Agreements for which sufficient funds age on the date of that documentation.
Eligible Vessel to be included in an MSP are not available, will not be renewed (j) Transfer of MSP Operating
Operating Agreement that is on charter for that fiscal year if sufficient funds are Agreements. A contractor under an
to the U.S. Government, other than a not appropriated by the 60th day of that operating agreement may transfer the
charter under the provisions of an fiscal year. If only partial funding is agreement (including all rights and
Emergency Preparedness Agreement appropriated by the 60th day of such obligations under the operating
(EPA) provided by section 53107 of the fiscal year, then the Secretary, in agreement) to any person that is eligible
MSA 2003, as amended unless an earlier consultation with the Secretary of to enter into the operating agreement
date is requested by the applicant, the Defense, shall select the vessels to retain under this chapter if the Secretary and
effective date for an MSP Operating under MSP Operating Agreements, the Secretary of Defense determine that
Agreement shall be: based on the Secretaries’ determinations the transfer is in the best interests of the
(i) The expiration or termination date of the most militarily useful and United States. A transaction shall not be
of the Government charter covering the commercially viable vessels. In the considered a transfer of an operating
vessel; or event that no funds are appropriated, agreement if the same legal entity with
(ii) Any earlier date on which the then all MSP Operating Agreements the same vessels remains the contracting
vessel is withdrawn from that charter, shall be terminated and, each Contractor party under the operating agreement.
but not before October 1, 2005. shall be released from its obligations ■ 7. Amend § 296.31 by revising
(c) Replacement Vessels. A Contractor under the MSP Operating Agreement. paragraphs (a) and (d)(2) and adding
may replace an MSP vessel under an Final payments under the terminated paragraph (e)(2)to read as follows:
MSP Operating Agreement with another MSP Operating Agreements shall be
vessel that is eligible to be included in made in accordance with section § 296.31 MSP assistance conditions.
the MSP under section 296.11(a), if the 296.41. To the extent that funds are (a) Term of MSP Operating
Secretary, in conjunction with the appropriated in a subsequent fiscal year, Agreement. MSP Operating Agreements
Secretary of Defense, approves the former MSP Operating Agreements may are authorized for 20 years, starting on
replacement vessel. be reinstated if mutually acceptable to October 1, 2005, and ending on
(d) Termination by the Secretary. If the Administrator and the Contractor September 30, 2025, but payments to
the Contractor materially fails to comply provided the MSP vessel remains Contractors are subject to annual
with the terms of the MSP Operating eligible. appropriations each fiscal year. MARAD
Agreement: (h) Release of Vessels from may enter into MSP Operating
(1) The Secretary shall notify the Obligations: If sufficient funds are not Agreements for a period less than the
Contractor and provide a reasonable appropriated for payments under an full term authorized under the MSA
opportunity for the Contractor to MSP Operating Agreement for any fiscal 2003, as amended.
comply with the MSP Operating year by the 60th day of that fiscal year, * * * * *
Agreement; then— (d) * * *
(2) The Secretary shall terminate the (1) Each vessel covered by the (2) Operation: Be operated exclusively
MSP Operating Agreement if the terminated MSP Operating Agreement is in the foreign trade and shall not
Contractor fails to achieve such released from any further obligation otherwise be operated in the coastwise
compliance; and under the MSP Operating Agreement;
(3) Upon such termination, any funds trade of the United States; and
and
obligated by the relevant MSP Operating (2) If section 902 of the Act is * * * * *
Agreement shall be available to the applicable to a vessel that has been (e) * * *
Secretary to carry out the MSP. transferred to a foreign registry due to a (2) [Reserved]
(e) Early termination by Contractor, terminated MSP Operating Agreement, ■ 8. Amend § 296.32 by revising the
generally. An MSP Operating then that vessel is available to be introductory text to read as follows:
Agreement shall terminate on a date requisitioned by the Secretary pursuant The Contractor shall submit to the
Director, Office of Financial Approvals,
Lhorne on DSK7TPTVN1PROD with PROPOSALS

specified by the Contractor if the to section 902 of the Act.
Contractor notifies the Secretary not (3) Paragraph (h) of this section is not Maritime Administration, 2nd Floor,
later than 60 days before the effective applicable to vessels under MSP West Building, 1200 New Jersey Ave.
date of the proposed termination that Operating Agreements that have been SE., Washington, DC 20590, one of the
the Contractor intends to terminate the terminated for any other reason. following reports, including
MSP Operating Agreement. The (i) Foreign Transfer of Vessel. A management footnotes where necessary
Contractor shall be bound by the Contractor may transfer a non-tank to make a fair financial presentation:
provisions relating to vessel vessel to a foreign registry, without * * * * *

VerDate Sep<11>2014 14:26 Aug 04, 2015 Jkt 235001 PO 00000 Frm 00010 Fmt 4702 Sfmt 4702 E:\FR\FM\05AUP1.SGM 05AUP1
Federal Register / Vol. 80, No. 150 / Wednesday, August 5, 2015 / Proposed Rules 46531

■ 9. Revise § 296.40 to read as follows: DEPARTMENT OF DEFENSE • Mail: General Services
Administration, Regulatory Secretariat
§ 296.40 Billing procedures. GENERAL SERVICES (MVCB), ATTN: Ms. Flowers, 1800 F
Submission of voucher. For ADMINISTRATION Street NW., 2nd Floor, Washington, DC
contractors operating under more than 20405.
one MSP Operating Agreement, the NATIONAL AERONAUTICS AND Instructions: Please submit comments
contractor may submit a single monthly SPACE ADMINISTRATION only and cite FAR Case 2014–025, in all
voucher applicable to all its MSP correspondence related to this case. All
48 CFR Parts 1, 4, 9, 17, 22, and 52 comments received will be posted
Operating Agreements. Each voucher
submission shall include a certification without change to http://
[FAR Case 2014–025; Docket No. 2014– www.regulations.gov, including any
that the vessel(s) for which payment is 0025; Sequence No. 1]
personal and/or business confidential
requested were operated in accordance
RIN 9000–AM81 information provided.
with § 296.31(d) MSP Operating
FOR FURTHER INFORMATION CONTACT: Mr.
Agreements with MARAD, and
Federal Acquisition Regulation; Fair Edward Loeb, Procurement Analyst, at
consideration shall be given to Pay and Safe Workplaces; Second 202–501–0650, for clarification of
reductions in amounts payable as set Extension of Time for Comments content. For information pertaining to
forth in § 296.41(b) and (c). All
status or publication schedules, contact
submissions shall be forwarded to the AGENCY: Department of Defense (DoD),
the Regulatory Secretariat at 202–501–
Director, Office of Accounting, MAR– General Services Administration (GSA),
4755. Please cite FAR Case 2014–025.
330, Maritime Administration, 2nd and National Aeronautics and Space
Administration (NASA). SUPPLEMENTARY INFORMATION:
Floor, West Building, 1200 New Jersey
Ave. SE., Washington, DC 20590. ACTION: Proposed rule; second extension Background
Payments shall be paid and processed of comment period. DoD, GSA, NASA published a
under the terms and conditions of the proposed rule in the Federal Register at
Prompt Payment Act, 31 U.S.C. 3901. SUMMARY: DoD, GSA, and NASA issued
a proposed rule (FAR Case 2014–025) 80 FR 30548, May 28, 2015. The
■ 10. Amend § 296.41 by revising on May 28, 2015, amending the Federal comment period is extended to provide
paragraph (a) to read as follows: Acquisition Regulation (FAR) to additional time for interested parties to
implement Executive Order (E.O.) submit comments on the FAR case until
§ 296.41 Payment procedures. August 26, 2015.
13673, ‘‘Fair Pay and Safe Workplaces,’’
(a) Amount payable. An MSP which is designed to improve contractor List of Subjects in 48 CFR Parts 1, 4, 9,
Operating Agreement shall provide, compliance with labor laws and 17, 22, and 52
subject to the availability of increase efficiency and cost savings in
Federal contracting. Government procurement.
appropriations and to the extent the
MSP Operating Agreement is in effect, On July 14, 2015, DoD, GSA, and Dated: July 30, 2015.
for each Agreement Vessel, an annual NASA published an extension of the William F. Clark,
payment equal to $2,600,000 for FY comment period by 15 days, from July Director, Office of Government-wide
2006, FY 2007, FY 2008; $2,900,000 for 27, 2015, to August 11, 2015. The Acquisition Policy, Office of Acquisition
deadline for submitting comments is Policy, Office of Government-wide Policy.
FY 2009, FY 2010, FY 2011; and
$3,100,000 for FY 2012, FY 2013, FY being further extended by an additional [FR Doc. 2015–19169 Filed 8–4–15; 8:45 am]

2014, FY 2015, FY 2016, 2017, and 15 days from August 11, 2015, to August BILLING CODE 6820–EP–P

2018; $3,500,000 for FY 2019, 2020, and 26, 2015, to provide additional time for
interested parties to comment on the
2021; and $3,700,000 for FY 2022, 2023,
FAR case. The due date for comments DEPARTMENT OF COMMERCE
2024, and 2025. This amount shall be
on DOL’s Guidance for Executive Order
paid in equal monthly installments at 13673, ‘‘Fair Pay and Safe Workplaces’’, National Oceanic and Atmospheric
the end of each month. The annual which also implements the E.O., is Administration
amount payable shall not be reduced being extended to August 26, 2015 as
except as provided in paragraphs (b) well. 50 CFR Part 648
and (c) of this section.
DATES: The comment period for the [Docket No.: 150626556–5556–01]
* * * * * purposed rule published on May 28,
2015 (80 FR 30548), is extended. Submit RIN 0648–BF20
Subpart G [Removed]
comments by August 26, 2015.
Fisheries of the Northeastern United
■ 11. Remove Subpart G, consisting of ADDRESSES: Submit comments in
States; Atlantic Sea Scallop Fishery;
§ 296.60. response to FAR Case 2014–025 by any
State Waters Exemption
of the following methods:
Dated: July 31, 2015. • Regulations.gov: http:// AGENCY: National Marine Fisheries
By Order of the Maritime Administrator. www.regulations.gov. Submit comments Service (NMFS), National Oceanic and
T. Mitchell Hudson, Jr., via the Federal eRulemaking portal by Atmospheric Administration (NOAA),
Lhorne on DSK7TPTVN1PROD with PROPOSALS

Secretary, Maritime Administration. searching for ‘‘FAR Case 2014–025’’. Commerce.
[FR Doc. 2015–19254 Filed 8–4–15; 8:45 am] Select the link ‘‘Comment Now’’ that ACTION: Proposed rule; request for
BILLING CODE 4910–81–P
corresponds with ‘‘FAR Case 2014– comments.
025.’’ Follow the instructions provided
at the ‘‘Comment Now’’ screen. Please SUMMARY: NMFS proposes regulations to
include your name, company name (if allow an exemption for Northern Gulf of
any), and ‘‘FAR Case 2014–025’’ on your Maine federally permitted vessels with
attached document. state-waters permits issued from the

VerDate Sep<11>2014 14:26 Aug 04, 2015 Jkt 235001 PO 00000 Frm 00011 Fmt 4702 Sfmt 4702 E:\FR\FM\05AUP1.SGM 05AUP1
Document Created: 2018-02-23 10:53:27
Document Modified: 2018-02-23 10:53:27
Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Proposed Rules
Action		Notice of proposed rulemaking, request for comments.
Dates		Comments must be received on or before October 5, 2015. MARAD will consider comments filed after this date to the extent practicable.
Contact		William G. Kurfehs, Acting Director, Office of Sealift Support, U.S. Department of Transportation, Maritime Administration, 1200 New Jersey Avenue SE, Washington, DC 20590. Telephone (202) 366-2318; Fax (202) 366-5904, electronic mail to [email protected] If you have questions on viewing the Docket, call Docket Operations, telephone: (800) 647-5527.
FR Citation		80 FR 46527
RIN Number		2133-AB86
CFR Associated		Assistance Payments; Maritime Carriers and Reporting and Record Keeping Requirements
80 FR 46527 - Maritime Security Program

DEPARTMENT OF TRANSPORTATIONMaritime Administration

Federal Register Volume 80, Issue 150 (August 5, 2015)

DEPARTMENT OF TRANSPORTATION
Maritime Administration
