[Federal Register Volume 61, Number 123 (Tuesday, June 25, 1996)]
[Rules and Regulations]
[Pages 32705-32706]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-16099]
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DEPARTMENT OF TRANSPORTATION
Maritime Administration
46 CFR Parts 252 and 272
[Docket No. R-167]
RIN 2133-AB27
Operating Differential Subsidy for Bulk Cargo Vessels Engaged in
Worldwide Services; Requirements and Procedures for Conducting Surveys
and Administering Maintenance and Repair Subsidy; Removal of Obsolete
Regulations
AGENCY: Maritime Administration, Transportation.
ACTION: Final rule.
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SUMMARY: The Maritime Administration (MARAD) is removing obsolete
provisions governing operating-differential subsidy for cargo vessels
engaged in worldwide services.
EFFECTIVE DATE: June 25, 1996.
FOR FURTHER INFORMATION CONTACT: Michael P. Ferris, Director, Office of
Costs and Rates, Maritime Administration, 400 Seventh St. S.W., Room
8117, Tel. (202)-366-2324.
SUPPLEMENTARY INFORMATION: 46 CFR Parts 252 and 272 prescribe
regulations implementing Title VI of the Merchant Marine Act, 1936, as
amended (46 App. U.S.C. 1171-1176 and 1178-1181), governing operating-
differential subsidy (ODS) for cargo vessels engaged in carrying bulk
cargo in essential services in the foreign commerce of the United
States. Part 252 addresses eligibility to receive ODS for vessel
operations, calculation of subsidy rates, and subsidy payment and
billing procedures. Part 2 272 prescribes the requirements and
procedures for determining the condition of vessels receiving ODS, for
reporting and substantiating maintenance and repair (M&R) expenses for
those vessels that receive M&R under their ODS agreements, and for
determining whether an M&R expense is subsidizable.
These regulations apply only to bulk vessels. The last of the
current bulk vessel ODS contracts will expire on December 31, 2000. No
new subsidy contracts for bulk vessels are anticipated.
When Part 252 was amended in 1993 (58 FR 17349, April 2, 1993),
effective January 1, 1993, section 252.32(c)(1) and (c)(2) became
obsolete. Paragraph (c)(1) became obsolete because the calculation of
ODS for M&R was no longer based on the specified 24-36 month period.
The calculation and payment of ODS for M&R became based on a percentage
rate requiring an allocation between subsidized and unsubsidized vessel
days. Paragraph (c)(2) is redundant because its provision is already
included in the introductory paragraph of section 252.32(c).
Furthermore, allocation of costs with respect to M&R subsidy, as
required by paragraphs (e), (f) and (g) of 46 CFR 272.41, has not been
applicable since the 1986 amendments to parts 252 and 382 and reference
to such should have been removed from part 272 at that time. When 46
CFR 252.40 was amended in 1993, it provided that ``the ratio of
subsidized to unsubsidized days during the calendar year'' be used to
allocate M&R costs, creating a conflict with provisions in Part 272
that remained.
Accordingly, MARAD is hereby removing as obsolete 46 CFR
252.32(c)(1) and (c)(2), and 272.41(e), (f), and (g) in this final
rule.
Rulemaking Analyses and Notices
Executive Order 12866 (Regulatory Planning and Review)
This rulemaking is not considered to be an economically significant
regulatory action under section 3(f) of Executive Order 12866. Also, it
is not a
[[Page 32706]]
major rule under Pub. L. 104-121, 5 U.S.C. 804, or a significant rule
under the Department's Regulatory Policies and Procedures. Accordingly,
it has not been reviewed by the Office of Management and Budget.
MARAD has determined that this rulemaking presents no substantive
issue which it could reasonably expect to produce meaningful public
comment since it is merely removing obsolete regulations. Accordingly,
MARAD has determined that the notice and public comment procedure
otherwise required by the Administrative Procedure Act, 5 U.S.C.
553(c), is unnecessary and good cause exists, pursuant to 5 U.S.C.
553(d)(3), to make the changes effective upon publication.
Federalism
The Maritime Administration has analyzed this rulemaking in
accordance with the principles and criteria contained in Executive
order 12612, and it has been determined that these regulations do not
have sufficient federalism implications to warrant the preparation of a
Federalism Assessment.
Regulatory Flexibility Act
The Maritime Administration certifies that this rulemaking will not
have a significant economic impact on a substantial number of small
entities.
Environmental Assessment
The Maritime Administration has considered the environmental impact
on this rulemaking and has concluded that an environmental impact
statement is not required under the National Environmental Policy Act
of 1969.
Paperwork Reduction Act
This rulemaking contains no reporting requirement that is subject
to OMB approval under 5 CFR Part 1320, pursuant to the Paperwork
Reduction Act of 1980 (44 U.S.C. 3501, et seq.)
List of Subjects in 46 CFR Parts 252 and 272
Grant programs--transportation, Maritime carriers, Reporting and
recordkeeping requirements.
Accordingly, MARAD hereby amends 46 CFR Parts 252 and 272 as
follows:
PART 252--[AMENDED]
1. The authority citation for Part 252 continues to read as
follows:
Authority: 46 App. U.S.C. 1114(b), 1117, 1121, 1171, 1173 and
1175; 49 CFR 1.66.
2. Section 252.1 Purpose is amended in the parenthetical United
States Code citation by inserting ``App.'' between ``46 and ``U.S.C.''
3. Section 252.32 Maintenance (upkeep) and repairs, is amended by
removing paragraphs (c)(1) and (c)(2).
PART 272--[AMENDED]
1. The authority citation for Part 272 continues to read as
follows:
Authority: 46 App. U.S.C. 1114(b), 1173, 1176; 49 CFR 1.66.
2. Section 272.41 Requirements for examination and allocation of
M&R expenses, is amended by removing paragraphs (e), (f), and (g).
Dated: June 20, 1996.
By Order of the Maritime Administrator.
Joel C. Richard,
Secretary, Maritime Administration.
[FR Doc. 96-16099 Filed 6-24-96; 8:45 am]
BILLING CODE 4910-81-P
