Ocean Thermal Energy Conversion Licensing Program

DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

15 CFR Part 981

[Docket No. 951213299-6096-02]

RIN: 0648-AI42

Ocean Thermal Energy Conversion Licensing Program

AGENCY: Office of Ocean and Coastal Resource Management (OCRM),

National Ocean Service (NOS), National Oceanic and Atmospheric

Administration (NOAA), Department of Commerce (DOC).

ACTION: Final rule; removal.

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SUMMARY: The National Oceanic and Atmospheric Administration (NOAA) is

removing Part 981 from Title 15 of the Code of Federal Regulations

(Part 981). Part 981 implements the Ocean Thermal Energy Conversion

(OTEC) Licensing Program, which was established under the Ocean Thermal

Energy Conversion Act of 1980, as amended, (OTEC Act), 42 U.S.C. 9101

et seq. No applications under Part 981 for licenses of commercial OTEC

facilities or plantships have yet been received by NOAA, and there has

been a low level of NOAA activity under the OTEC Act. During this 15

year period of time, the availability and relatively low price of

fossil fuels, coupled with the risks to potential investors, has

limited the interest in the commercial development of OTEC projects.

Removal of Part 981 at this time will allow NOAA to evaluate the

appropriateness of these, or any other, regulations at such time as

interest in the commercial development of OTEC projects occurs.

EFFECTIVE DATE: June 10, 1996.

ADDRESSES: Karl Jugel, Chief, Ocean Minerals and Energy Division,

Office of Ocean and Coastal Resource Management, National Ocean

Service, National Oceanic and Atmospheric Administration, 1305 East-

West Highway, 11th Floor, Silver Spring, MD 20910.

FOR FURTHER INFORMATION CONTACT:

James Lawless, Deputy Director, Office of Ocean and Coastal Resource

Management, at (301) 713-3155.

SUPPLEMENTARY INFORMATION:

I. Regulatory Review

The National Oceanic and Atmospheric Administration (NOAA) is

removing Part 981 of 15 CFR, pursuant to the Regulatory Reform

Initiative of President Clinton and the Ocean Thermal Energy Conversion

Act of 1980, as amended.

In March 1995, President Clinton issued a directive to federal

agencies regarding their responsibilities under his Regulatory Reform

Initiative. This initiative is part of the National Performance Review

and calls for immediate, comprehensive regulatory reform. The President

directed all agencies to undertake, as part of this initiative, an

exhaustive review of all their regulations--with an emphasis on

eliminating or modifying those that are obsolete or otherwise in need

of reform.

The Ocean Thermal Energy Conversion Act of 1980, as amended, (OTEC

Act), 42 U.S.C. 9101 et seq., also requires that NOAA periodically

review the regulations that apply to the licensing of OTEC facilities

and plantships. The fundamental purpose of the review is to determine

if the regulations themselves impose an adverse impact on the

development and commercialization of OTEC technology.

On January 30, 1996, NOAA published a notice in the Federal

Register in which it proposed removing Part 981 and requested all

interested persons to comment on the proposal (61 FR 2969-2971).

Comments were in particular invited on whether the OTEC regulations, or

their removal at this time, impose an adverse impact on the development

and commercialization of OTEC technology. NOAA received no comments on

its proposed removal of Part 981.

II. Ocean Thermal Energy Conversion Licensing Program

The OTEC Act established a licensing and permitting system for the

development of OTEC as a commercial energy technology. Part 981

implements the OTEC Licensing Program. The proposed rule preceding this

rulemaking summarizes the development of Part 981 (61 FR 2969-2971). No

applications under Part 981 for licenses of commercial OTEC facilities

or plantships have yet been

[[Page 21074]]

received by NOAA, and there has been a low level of NOAA activity under

the OTEC Act. During this 15 year period of time, the availability and

relatively low price of fossil fuels, coupled with the risks to

potential investors, has limited the interest in the commercial

development of OTEC projects.

NOAA is authorized, consistent with the purposes and provisions of

the OTEC Act, to amend or rescind the OTEC regulations. In particular,

section 117 of the OTEC Act requires NOAA to review the regulations on

a periodic basis. NOAA is authorized and directed to revise the

regulation as necessary and appropriate to ensure that the regulations

do not impede the development, evolution, and commercialization of OTEC

technology.

Given that a commercial OTEC industry has yet to develop, Part 981

remains unused for the most part. Removal of Part 981 at this time is

consistent with the purposes and provisions of the OTEC Act in that it

will allow NOAA to evaluate the suitability of these regulations at

such time as interest in the commercial development of OTEC projects

occurs. At such time, NOAA will issue a proposed rule appropriate to

the then current regulatory needs. Potential Licensees will therefore

be assured that any future OTEC regulations will be up to date, and

will continue to provide innovation and flexibility necessary for an

emerging OTEC industry.

NOAA is mindful of its responsibility for licensing of commercial

OTEC facilities and plantships under the OTEC Act, however, and will

take appropriate steps to review and process an application should one

be made. For particular inquiries into the licensing of OTEC projects

in the interim period, NOAA will provide copies of the provisions of

these OTEC regulations in response to such inquiries. Thus, NOAA will

provide actual and timely notice of applicable procedures and

requirements to particular individuals. See 5 U.S.C. 552(a).

Accordingly, NOAA is removing Part 981, the OTEC regulations, from

Title 15 of the CFR.

III. Miscellaneous Rulemaking Requirements

Executive Order 12612: Federalism Assessment

NOAA has concluded that this regulatory action does not have

federalism implications sufficient to warrant the preparation of a

Federalism Assessment under Executive Order 12612.

Executive Order 12866: Regulatory Planning and Review

This regulatory action is not significant for purposes of Executive

Order 12866.

Regulatory Flexibility Act

No licenses have been issued for OTEC projects under 15 CFR Part

981. When commercial interest in OTEC projects occurs, NOAA will issue

a proposed rule appropriate to the regulatory needs at that time. For

particular inquiries into the licensing of OTEC projects in the interim

period, NOAA will provide actual and timely notice of applicable

procedures and requirements to particular individuals. See 5 U.S.C.

552(a). For these reasons, the removal of Part 981 is not expected to

have a significant economic impact on a substantial number of small

entities, and the Assistant General Counsel for Legislation and

Regulation of the Department of Commerce has so certified to the Chief

Counsel for Advocacy of the Small Business Administration. As such, a

Regulatory Flexibility Analysis was not prepared.

Paperwork Reduction Act

This regulatory action does not contain an information collection

requirement subject to review and approval by OMB under the Paperwork

Reduction Act of 1980, 44 U.S.C. 3500 et seq.

National Environmental Policy Act

NOAA has concluded that this regulatory action does not constitute

a major federal action significantly affecting the quality of the human

environment. No applications for licenses of commercial OTEC facilities

or plantships have yet been received by NOAA, and Part 981 remains

unused for the most part. When commercial interest in OTEC projects

occurs, NOAA will issue a proposed rule appropriate to the regulatory

needs at that time. For particular inquiries into the licensing of OTEC

projects in the interim period, NOAA will provide actual and timely

notice of applicable procedures to particular individuals. See 5 U.S.C.

552(a). Therefore, and environmental impact statement is not required.

Authority: Ocean Thermal Energy Conversion Act of 1980, as

amended, 42 U.S.C. 9101 et seq.

List of Subjects in 15 CFR Part 981

Administrative practice and procedures, Energy, Environmental

protection, Intergovernmental relations, Marine resources, Penalties,

Reporting and recordkeeping requirements.

Dated: May 2, 1996.

David Evans,

Acting Deputy Assistant Administrator for Ocean Services and Coastal

Zone Management.

Accordingly, for the reasons set forth above, Chapter IX of Title

15 of the Code of Federal Regulations is amended as follows:

PART 981--OCEAN THERMAL ENERGY CONVERSION LICENSING PROGRAM--

[REMOVED]

1. Under the authority of the Ocean Thermal Energy Conversion Act

of 1980, Part 981 is removed.

[FR Doc. 96-11464 Filed 5-8-96; 8:45 am]

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