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

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

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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