[Federal Register Volume 82, Number 230 (Friday, December 1, 2017)]
[Rules and Regulations]
[Pages 56902-56909]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-25897]
[[Page 56902]]
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DEPARTMENT OF TRANSPORTATION
Maritime Administration
46 CFR Part 393
RIN 2133-AB84
Revision of the America's Marine Highway Program Regulations
AGENCY: Maritime Administration, Department of Transportation.
ACTION: Final rule.
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SUMMARY: The Maritime Administration (MARAD) is amending its America's
Marine Highway Program (AMHP) regulations to implement provisions of
the Coast Guard and Maritime Transportation Act of 2012 (CGMTA), the
National Defense Authorization Act of 2016 (NDAA), and to clarify AMHP
processes. The revisions expand the purpose of the AMHP to include
promoting short sea transportation, update the definition of short sea
transportation, and streamline the regulation to highlight procedures
and resources available to program participants.
DATES: This final rule becomes effective on January 2, 2018.
FOR FURTHER INFORMATION CONTACT: Tim Pickering, Office of Marine
Highways and Passenger Services, at (202) 366-0704, or via email at
[email protected]. You may send mail to Mr. Pickering at Office of Marine
Highways and Passenger Services, 1200 New Jersey Avenue SE.,
Washington, DC 20590.
SUPPLEMENTARY INFORMATION:
Background
What laws authorize the America's Marine Highway Program?
The Energy Independence and Security Act of 2007 (EISA) authorized
the Secretary of Transportation (Secretary) to promulgate regulations
to implement the AMHP. The Secretary of Transportation delegated
authority to the Maritime Administrator to issue AMHP implementing
regulations. On April 9, 2010, MARAD published in the Federal Register
final regulations implementing the AMHP (75 FR 18101).
The Secretary, in consultation with the Environmental Protection
Agency, submitted a Report to Congress in April 2011that included a
description of the benefits of the AMHP and activities conducted under
the program. It also included recommendations for further legislative
and administrative action that the Secretary considered appropriate.
In December 2012, the Coast Guard and Maritime Transportation Act
of 2012 (CGMTA), which built on some of the ideas in the report, was
signed into law. The CGMTA expanded the scope of the AMHP by adding the
words ``or to promote short sea transportation'' to the existing
purpose of reducing landside congestion. This added language expanded
the focus of the AMHP to include efforts that increase utilization or
efficiency of short sea transportation on designated Marine Highway
Routes.
In November 2015, the National Defense Authorization Act for Fiscal
Year 2016 added to the definition of short sea transportation, that is
the subject of the AMHP, to include the carriage by a documented vessel
of cargo that is: (1) Shipped in discrete units, or packages that are
handled individually, palletized; or, (2) unitized for purposes of
transportation or freight vehicles carried aboard commuter ferry boats.
Discussion
Why and how is MARAD revising the regulations?
As part of our routine systematic review of existing regulations,
MARAD is updating its AMHP implementing regulations to conform to
statutory changes and streamline the regulations for ease of use.
Accordingly, the rule revises in full the AMHP implementing regulations
to: (1) Add ``promote short sea shipping'' as a purpose of the AMHP;
(2) re-designate ``corridors, connectors, and crossings'' as used in
the rule as ``Routes'' for purposes of simplicity; (3) expand and
clarify the definition of AMHP-eligible cargo to include discrete units
or packages that are handled individually, palletized, or unitized as
well as freight vehicles carried aboard commuter ferry boats; (4) add a
requirement for the project sponsors to provide updates on project
status; (5) expand the eligibility criteria for services and Routes
that may participate in AMHP; (6) clarify criteria for Project
Designation; and, (7) reorganize the regulations for ease of use.
What is the purpose of the AMHP?
Congress authorized the AMHP to promote short sea shipping by
designating routes, also called Marine Highways, as a way to relieve
congestion on America's roads and railways. Marine Highway designations
are intended to assist the maritime industry in meeting national
freight transportation needs. The AMHP encourages the use of marine
transportation to reduce freight and passenger travel delays caused by
congestion, reduce greenhouse gas emissions, conserve energy, improve
safety, and reduce landside infrastructure maintenance costs.
Congestion on the U.S. surface transportation system significantly
impacts America's economic prosperity and way of life. Overall, the
U.S. Department of Transportation (USDOT) estimates that congestion on
our roads, bridges, railways, and in ports costs the United States as
much as $200 billion a year and projects that cargoes moving through
our ports will nearly double over the next 15 years. Most of this
additional cargo will ultimately move along our surface transportation
corridors, many of which are already at or beyond capacity.
Rulemaking Analysis and Notices
Executive Order 12866 (Regulatory Planning and Review), 13563
(Improving Regulation and Regulatory Review) and DOT Regulatory
Policies and Procedures
Under Executive Order (E.O.) 12866 (58 FR 51735, October 4, 1993),
supplemented by E.O. 13563 (76 FR 3821, January 18, 2011) and USDOT
policies and procedures, MARAD must determine whether a regulatory
action is ``significant,'' and therefore subject to the Office of
Management and Budget (OMB) review and the requirements of the Order.
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 rulemaking is not considered a
significant regulatory action under section 3(f) of E.O. 12866 and,
therefore, it was not reviewed by OMB. 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
[[Page 56903]]
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)
MARAD analyzed this rulemaking in accordance with the principles
and criteria contained in E.O. 13132 (``Federalism'') and has
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 was not
required to consult with State and local officials.
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 E.O. 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 E.O. 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
MARAD has evaluated this rulemaking under Maritime Administrative
Order (MAO) 600-1, ``Procedures for Considering Environmental
Impacts,'' 50 FR 11606 (March 22, 1985), which guides MARAD in
complying with the National Environmental Policy Act of 1969, 42 U.S.C.
4321 et seq. MARAD has determined that this rulemaking is not a major
action (requiring the preparation of an environmental impact statement
or environmental assessment) because it is categorically excluded from
detailed environmental review pursuant to section 4.05 of MAO 600-1.
Section 4.05 reads, in pertinent part, ``[c]ategorical exclusions are
Maritime Administration actions or groups of actions that do not have a
significant effect on the quality of the human environment,
individually or cumulatively. Categorical exclusions do not require
preparation of environmental documents. Appendix 1 of this order [MAO-
600-1] describes the Maritime Administration's categorical
exclusions.'' This action falls under Categorical Exclusion #3 because
MARAD's revisions to the regulations ``do not require a regulatory
impact analysis under section 3 of Executive Order 12291 or do not have
a potential to cause a significant effect on the environment . . .''
MAO 600-1, App.1, pg. 1.
In accordance with section 4.05 and Appendix 2 of MAO 600-1, the
Agency has further concluded that no extraordinary circumstances exist
with respect to this regulation that might trigger the need for a more
detailed environmental review. As a result, MARAD finds that this
regulatory revision is not a major Federal action significantly
affecting the quality of the human environment.
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 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 affect a taking of private property or
otherwise have taking implications under E.O. 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-
447, div. H, 118 Stat. 2809 at 3268) requires the USDOT 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 updates the regulations due to changes
made by the CGMTA, the NDAA, and to clarify AMH program procedures.
This rulemaking contains no new or amended information
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collection or recordkeeping requirements that have been approved or
require approval by OMB.
Comments on the Proposed Rule
In response to the agency's Federal Register document seeking
public comment on its proposed revisions to 46 CFR part 393 published
on January 11, 2017 (82 FR 3250), we received one comment from the
Center for Biological Diversity (CBD). The commenter requests that
MARAD analyze the revisions' impacts and the impacts of the AMHP as a
whole under NEPA, and consult on impacts of the revisions to species
listed under the Endangered Species Act (ESA), 16 U.S.C. 1531 et seq.
Specifically, CBD requests that MARAD consider the impacts arising from
increased shipping noise and risk of ship strikes to endangered and
threatened marine species resulting from increased traffic as a result
of the AMHP. CBD also requests that the revisions to the rule require
proponents of individual AMH corridors and projects to prepare
environmental assessments as a condition for designation. CBD further
requests that the revisions to the rule also require MARAD to consult
on impacts to ESA-listed species before designation.
Pursuant to the requirements of the CGMTA and NDAA, this rulemaking
expands the purpose of the AMHP to promote short sea transportation,
updates the definition of short sea transportation, and clarifies AMHP
procedures highlighting resources available to program participants.
CBD provided no specific comments with respect to the Agency's proposed
changes in this rulemaking to conform the AMH implementing regulations
to the relevant statutory amendments, and therefore CBD's comments are
outside the scope of this rulemaking. Nevertheless, in response to
CBD's comments, MARAD states that it complies with all environmental
laws in the administration of its programs. All future project
proposals under the AMHP will be reviewed in accordance with the
requirements contained in NEPA and all applicable environmental laws.
In regard to CBD's request that MARAD analyze the environmental
impacts of the revisions to the rule and the AMHP under NEPA and to
participate in interagency consultation under the ESA for any impacts
the revisions may have upon listed species, MARAD has performed the
required environmental review for this rulemaking under NEPA and MAO
600-1 ``Procedures for Considering Environmental Impacts.''
In response to the agency's Federal Register document seeking
public comment on its proposed revisions to 46 CFR part 393, we
received one comment from the American Federation of Labor and Congress
of Industrial Organizations (AFL/CIO) Transportation Trades Department
(TDD). The comment offered their strong support for the proposed rule
citing the need to address congested corridors, reduce shipping costs
and improve safety. The commenter credited the AMHP with providing
meaningful options for companies utilizing short sea shipping and for
promoting job growth in the maritime industry. In addition, TDD noted
challenges facing the maritime industry and MARAD in the areas of Title
XI loan guarantees and potential double taxation of goods transported
using domestic short sea shipping via the Harbor Maintenance Tax. Both
of these areas of concern are outside of the scope of the AMH Program.
The Harbor Maintenance Tax (HMT) funds the Harbor Maintenance Trust
Fund (HMTF) to fund port and harbor dredging activities by the Corps of
Engineers. The HMT and HMTF are not managed by the Department of
Transportation. Economic soundness is a key requirement and projects
need to have a viable business case or the Maritime Administration
cannot approve it. To date, no operators have applied for a Title XI
loan guarantee for an AMH Project.
List of Subjects in 46 CFR Part 393
Vessels.
0
For the reasons stated in the preamble, the Maritime Administration
revises 46 CFR part 393 to read as follows:
PART 393--AMERICA'S MARINE HIGHWAY PROGRAM
Subpart A--General Provisions
Sec.
393.1 Special definitions.
Subpart B--Marine Highway Route and Project Designations
393.2 Marine Highway Routes.
393.3 Marine Highway Projects.
Subpart C--Department of Transportation Efforts to Foster and Support
America's Marine Highways
393.4 DOT Support for planning activities.
393.5 DOT Support for Marine Highway-related research.
393.6 America's Marine Highway Program Project grants.
Authority: Pub. L. 110-140, title XI, subtitle C, sections 1121-
1123, 121 Stat. 1494; Pub. L. 112-213, title IV, section 405, 126
Stat. 1541; 49 CFR 1.92 and 1.93(a), 46 U.S.C. 55601, 55604, 55605.
Subpart A--General Provisions
Sec. 393.1 Special definitions.
For the purposes of this part:
(a) Administrator means the Maritime Administrator, Maritime
Administration, U.S. Department of Transportation USDOT. The
Administrator is responsible for administering the America's Marine
Highway Program (AMHP) and making route and project recommendations to
the Secretary.
(b) Department means the U.S. Department of Transportation.
(c) Cargo on a Marine Highway service means goods transported in
commerce and generally refers to, but is not limited by, the types and
kinds of cargo that are described in the definition of ``Short sea
transportation'', in paragraph (k) of this section. Neither weight nor
proportionality are considered under this definition. The term as used
in this context is generally interchangeable with the term ``Freight'',
defined in paragraph (d) of this section.
(d) Freight on a Marine Highway service means goods transported in
commerce and generally refers to, but is not limited by, the types and
kinds of cargo that are described in the definition of ``Short sea
transportation'', in paragraph (k) of this section. Neither weight nor
proportionality are considered under this definition. The term as used
in this context is generally interchangeable with the term ``Cargo'',
defined in paragraph (c) of this section.
(e) Marine Highway Routes or Routes mean commercially navigable
coastal, inland, and intracoastal waters of the United States as
designated by the Secretary. This includes connections between U.S.
ports and Canadian ports on the Great Lakes-Saint Lawrence Seaway
System, and non-contiguous U.S. ports. Marine Highway Routes are a
component of the Nation's surface transportation system. Each Marine
Highway Route is described in terms of the specific landside
transportation routes (road or railway) that it supplements or to which
it connects. All previously designated Marine Highway ``corridors,''
``connectors,'' and ``crossings'' are now designated as ``Routes.''
(f) Marine Highway Projects are planned or contemplated new
services, or expansions of existing services, on designated Marine
Highway Routes, that seek to provide new modal choices to shippers,
reduce transportation costs, and/or provide public benefits, which
include reduced air emissions, reduced road maintenance costs, and
improved safety and resiliency impacts. Project
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Applicants propose projects and the Secretary may designate projects
consistent with this part.
(g) Project Applicant means a public entity with operations, or
administrative areas of responsibility, that are adjacent to or near
the relevant Route that applies for designation of a Marine Highway
Project pursuant to this part. Eligible applicants include State
governments (including State departments of transportation),
metropolitan planning organizations, port authorities and tribal
governments.
(h) Program Office means Office of Marine Highways and Passenger
Services.
(i) Route Sponsors are public entities with operations or
administrative areas of responsibility that are adjacent to or related
to the relevant Route that recommend a commercially navigable waterway
for designation as a Marine Highway Route. Eligible Route Sponsors
include State governments (including State departments of
transportation), metropolitan planning organizations, port authorities,
non-Federal navigation districts and tribal governments.
(j) Secretary means the Secretary of Transportation.
(k) Short sea transportation means the carriage by a U.S.
documented vessel of cargo--
(1) That is--
(i) Contained in intermodal cargo containers and loaded by crane on
the vessel;
(ii) Loaded on the vessel by means of wheeled technology;
(iii) Shipped in discrete units or packages that are handled
individually, palletized, or unitized for purposes of transportation;
or
(iv) Freight vehicles carried aboard commuter ferry boats; and
(2) That is--
(i) Loaded at a port in the United States and unloaded either at
another port in the United States or at a port in Canada located in the
Great Lakes-Saint Lawrence Seaway System; or,
(ii) Loaded at a port in Canada located in the Great Lakes-Saint
Lawrence Seaway System and unloaded at a port in the United States.
(l) United States documented vessel means a vessel documented under
46 CFR part 67.
Subpart B--Marine Highway Route and Project Designations
Sec. 393.2 Marine Highway Routes.
(a) What are the minimum eligibility requirements for MARAD to
recommend a Marine Highway Route for the Secretary to designate?
(1) MARAD may recommend Marine Highway Routes that relieve landside
congestion along coastal corridors or that promote short sea
transportation; and
(2) That advance the objectives of the AMHP in paragraph (c) of
this section.
(b) When can a Route Sponsor request designation of a Marine Highway
Route?
(1) The Department accepts Marine Highway Route designation
requests any time. Route Sponsors must submit designation requests
through the Program Office.
(2) The Maritime Administration publishes all designated Routes on
its Web site. Go to http://www.marad.dot.gov and search ``America's
Marine Highways'' to see the current list.
(c) What should Route Sponsors consider when preparing Marine Highway
Route designation requests?
(1) Route Sponsors designation requests should explain how a
proposed route will help achieve the following objectives:
(i) Establishing Marine Highway Routes as extensions of the
national surface transportation system;
(ii) Developing multi-jurisdictional coalitions and partnerships
that focus public and private efforts to improve reliability and
resiliency of the Route for freight and passengers;
(iii) Obtaining public benefits as described in paragraph
(d)(1)(vi) of this section; and
(iv) Identifying potential savings that could be realized by
providing an alternative to existing supply chains through short sea
transportation.
(2) [Reserved]
(d) What information should Route Sponsors include in their designation
requests?
(1) One or more eligible Route Sponsors may submit Marine Highway
Route designation requests to the Program Office. Designation requests
should include the following information:
(i) Physical Description of the Proposed Marine Highway Route.
Describe the proposed Marine Highway Route, and its connection to
existing or planned transportation infrastructure and intermodal
facilities. Include key navigational factors such as available draft,
channel width, bridge air draft, or lock clearance, and any foreseeable
impacts on navigation or commerce. When available, include one or more
maps of the proposed Route.
(ii) Surface transportation regions served. (A) Land transportation
routes that would benefit. Provide a summary of any land transportation
route that the Marine Highway Route would benefit. Include a
description of the route, its primary users, the nature, locations and
occurrence of travel delays, urban areas affected, and other geographic
or jurisdictional issues that impact its overall operation and
performance.
(B) U.S. Domestic Shipping Lane Served. For Marine Highway Routes
that pass through waters outside U.S. territorial waters, provide a
summary of the shipping routes or trade lanes that the Marine Highway
Route would benefit. Include a description of the route, its primary
users, the nature, locations and occurrence of travel delays, urban
areas affected, and other geographic or jurisdictional issues that
impact its overall operation and performance.
(iii) Involved parties. Provide the organizational structure of the
Route Sponsors and supporters recommending the Route designation,
including business affiliations and private sector stakeholders. Multi-
jurisdictional coalitions may include State Departments of
Transportation, metropolitan planning organizations, municipalities and
other governmental entities (including tribal governments). Include the
extent to which these entities have expressed support for the route
designation and describe any affiliations with environmental groups or
civic associations, or affiliations with any foreign interests.
(iv) Volume and characteristics. If authoritative data are
available, provide the volume of passengers and/or cargo that are
candidates for shifting to water transportation on the proposed Route.
Otherwise provide estimates for this information, include identified
shippers, manufacturers, distributors, and other entities that could
benefit from a Marine Highway alternative, and the extent to which
these entities have expressed support for the Marine Highway Route
designation request.
(v) Congestion reduction. Describe the extent to which the proposed
Route could relieve landside congestion in measurable terms, if
applicable. Include any known offsetting land transportation
infrastructure savings (either construction or maintenance)
[[Page 56906]]
that would likely result from the Route, if applicable.
(vi) Public benefits. Provide, if known, the net savings over
status quo in emissions, including greenhouse gases, energy
consumption, landside infrastructure maintenance costs, safety and
system resiliency. Specify if the Marine Highway Route represents the
most cost-effective option among other modal improvements. Include
consideration of the implications future growth may have on the
proposed Route.
(vii) Public costs. If applicable and known, identify any costs
that may result from designation of the route. If able, provide costs
that are quantifiable such as the additional cost of emissions or
energy consumption required to effectively leverage the benefits of the
designated route. These costs should be a component in the net savings
identified in paragraph (d)(1)(vi) of this section.
(viii) Impediments. Describe known or anticipated obstacles to
utilization of the proposed Marine Highway Route. Include any
strategies, either in place or proposed, to deal with the impediments.
(2) [Reserved]
(e) How will the Program Office evaluate and recommend Marine Highway
Route designation requests?
(1) The Program Office will evaluate and recommend Route
Designations based on an analysis and technical review of the
information provided by the Route Sponsor. The Maritime Administration
will recommend Routes that receive a favorable technical review, and
meet other criteria described in this part, for designation by the
Secretary.
(2) The Program Office may consider additional factors and may
request supplemental information during the review process. USDOT will
notify Route Sponsors as to the status of their request in writing once
the Secretary makes a determination.
Sec. 393.3 Marine Highway Projects.
(a) What are the minimum eligibility requirements for MARAD to
recommend a Marine Highway Project for the Secretary to designate?
(1) MARAD may recommend only those Marine Highway Projects that
will use U.S. documented vessels and mitigate landside congestion or
promote short sea transportation.
(2) MARAD may recommend only those Marine Highway Projects that:
(i) Involve the carriage of cargo in Short Sea Transportation as
defined in paragraph (k) of this section;
(ii) Involve new or expand existing services for the carriage of
cargo; and
(iii) Are on a designated Marine Highway Route.
(3) Proposed Route Designations are accepted at any time, and may
be submitted together with the proposed Project Designation.
(4) Successful Project Applicants must demonstrate a direct
connection between a proposed Marine Highway Project and the carriage
of cargo through ports on Designated Marine Highway Routes.
(b) When does the Program Office accept Marine Highway Project
designation applications?
(1) The Administrator will announce by notice in the Federal
Register and on MARAD's AMHP Web site open season periods to allow
Project Applicants opportunities to submit Marine Highway Project
designation applications.
(2) [Reserved]
(c) What should Project Applicants include when preparing a Marine
Highway Project designation application?
(1) The market or customer base to be served by the service and the
service's value proposition to customers. This includes--
(i) A description of how the market is currently served by
transportation options;
(ii) Identities of shippers that have indicated an interest in, and
level of commitment to, the proposed service;
(iii) Specific commodities, markets, and shippers the Project is
expected to attract;
(iv) Extent to which interested entities have been educated about
the Project and expressed support, and
(v) A marketing strategy for the project if one exists.
(2) Operational framework. A description of the proposed
operational framework of the project including origin/destination
pairs, transit times, vessel types, and service frequency.
(3) The cost model for the proposed service. The cost model should
be broken down by container, trailer, or other freight unit, including
loading and discharge costs, vessel operating costs, drayage costs, and
other ancillary costs. Provide a comparison cost model outlining the
current costs for transportation using landside mode (truck and rail)
alternatives for the identified market that the proposed project will
serve. Provide the project's financial plan and provide projected
revenues and expenses. Include labor and operating costs, drayage,
fixed and recurring infrastructure and maintenance costs, vessel or
equipment acquisition or construction costs, etc. Include any
anticipated changes in local or regional short sea transportation,
policy or regulations, ports, industry, or other developments affecting
the project. In the event that public sector financial support is being
sought, describe the amount, form and duration of public investment
required. Applicants may email [email protected] to request a sample cost
model.
(4) An overall quantification of the net public benefits estimated
to be gained through the successful initiation of the Marine Highway
Project, including highway miles saved, road maintenance savings, air
emissions savings, and safety and resiliency impacts.
(5) Marine Highway Route(s). Identify the designated Marine Highway
Routes the Project will utilize.
(6) Organization. Provide the organizational structure of the
proposed project, including an outline of the business affiliations,
environmental, non-profit organizations and governmental or private
sector stakeholders.
(7) Partnerships:--(i) Private sector partners. Identify private
sector partners and describe their levels of commitment to the proposed
service. Private sector partners can include terminals, vessel
operators, shipyards, shippers, trucking companies, railroads, third-
party logistics providers, shipping lines, labor, workforce and other
entities deemed appropriate by the Secretary.
(ii) Public sector partners. Identify State Departments of
Transportation, metropolitan planning organizations, municipalities and
other governmental entities, including tribal entities, that Project
Applicants have engaged and the extent to which they support the
service. Include any affiliations with environmental groups or civic
associations.
(iii) Documentation. Provide documents affirming commitment or
support from entities involved in the project.
(8) Public benefits. These measures reflect current law and are
consistent with USDOT's Strategic Goals. Project Applicants should
organize external net cost savings and public benefits of the Project
based on the following six categories:
(i) Emissions benefits. Address any net savings, in quantifiable
terms, now and in the future, over current emissions practices,
including greenhouse gas emissions, criteria air pollutants or other
environmental benefits the project offers.
[[Page 56907]]
(ii) Energy savings. Provide an analysis of potential net
reductions in energy consumption, in quantifiable terms, now and in the
future, over the current practice.
(iii) Landside transportation infrastructure maintenance savings.
To the extent the data is available indicate, in dollars per year, the
projected net savings of public funds that would result in road or
railroad maintenance or repair, including pavement, bridges, tunnels or
related transportation infrastructure from a proposed project. Include
the impacts of accelerated infrastructure deterioration caused by
vehicles currently using the route, especially in cases of oversize or
overweight vehicles. This information applies only to projects for a
marine highway service where a landside alternative exists.
(iv) Economic competitiveness. To the extent the data is available,
describe how the project will measurably result in transportation
efficiency gains for the U.S. public. For purposes of aligning a
project with this outcome, applicants should provide evidence of how
improvements in transportation outcomes (such as time savings,
operating cost savings, and increased utilization of assets) translate
into long-term economic productivity benefits.
(v) Safety improvements. Describe, in measurable terms, the
projected safety improvements that would result from the proposed
operation.
(vi) System resiliency and redundancy. To the extent data is
available, describe, if applicable, how a proposed Marine Highway
Project offers a resilient route or service that can benefit the
public. Where land transportation routes serving a locale or region are
limited, describe how a proposed project offers an alternative and the
benefit this could offer when other routes are interrupted as a result
of natural or man-made incidents.
(9) Proposed project timeline. Include a proposed project timeline
with estimated start dates and key milestones. If applicable, include
the point in the timeline at which the enterprise is anticipated to
attain self-sufficiency.
(10) Support and investment required. Describe any known or
anticipated obstacles to either implementation or long-term success of
the project. Include any strategies, either in place or proposed, to
mitigate impediments. Identify specific infrastructure gaps such as
docks, cranes, ramps, etc. that will need to be addressed in order for
the project to become economically viable. Include estimates for the
required investments needed to address the infrastructure gaps.
(11) Environmental considerations. Project Applicants must provide
all information necessary to assist MARAD's environmental analysis of
the proposed project, pursuant to the National Environmental Policy Act
of 1969 (NEPA) (42 U.S.C. 4321 et seq.) and other environmental
requirements.
(d) How will the Program Office evaluate and recommend Marine Highway
Project applications for designation?
(1) The Program Office will evaluate and recommend for designation
by the Secretary those Projects based on an analysis and technical
review of the information provided by the Project Applicant. MARAD will
recommend Projects that operate on a designated Marine Highway Route,
receive a favorable technical review, and meet other criteria described
in this part, for designation by the Secretary.
(2) The Program Office may consider additional factors and may
request supplemental information during the review process. USDOT will
notify Project Applicants as to the status of their application in
writing once the Secretary makes a determination.
(e) How will MARAD support designated America's Marine Highway
Projects?
(1) Upon designation as a Marine Highway Project, the Department
Program Office will coordinate with the Project Applicants to identify
the most appropriate departmental actions to support the project. USDOT
support could include any of the following, as appropriate and subject
to agency resources:
(i) Promote the service with appropriate governmental, regional,
State, local or tribal government transportation planners, private
sector entities or other decision makers to the extent permitted by
law.
(ii) Coordinate with ports, State Departments of Transportation,
metropolitan planning organizations, localities, other public agencies
and the private sector to support the designated service. Efforts can
be aimed at identifying resources, obtaining access to land or
terminals, developing landside facilities and infrastructure, and
working with Federal, regional, State, local or Tribal governmental
entities to remove barriers to success.
(iii) Pursue commitments from Federal entities to transport
Federally owned or generated cargo using the services of the designated
project, when practical or available.
(iv) In cases where transportation infrastructure is needed,
Project Applicants may request to be included on the Secretary's list
of high-priority transportation infrastructure projects under E.O.
13274, ``Environmental Stewardship and Transportation Infrastructure
Project Review.''
(v) Assist with developing individual performance measures for
Marine Highway Projects.
(vi) Work with Federal entities and regional, State, local and
tribal governments to include designated Projects in transportation
planning.
(vii) Coordinate with public and private entities to resolve
impediments to the success of Marine Highway Projects.
(viii) Conduct research on issues specific to Marine Highway
Projects.
(ix) Advise Project Applicants on the availability of various
Federal funding mechanisms to support the Projects.
(x) Maintain liaison with Project Applicants and representatives of
designated Projects to provide ongoing support and identify lessons
learned and best practices for other projects and the overall Marine
Highway program.
(2) [Reserved]
(f) How will the Department protect confidential information?
(1) If your application, including attachments, includes
information that you consider to be a trade secret or confidential
commercial or financial information, or otherwise exempt from
disclosure under the Freedom of Information Act (5 U.S.C. 552), as
implemented by the Department at 49 CFR part 7, you may assert a claim
of confidentiality.
(2) What should I do if I believe my Project designation
application contains confidential or business sensitive information?
(i) Note on the front cover that the submission ``Contains
Confidential Business Information (CBI);''
(ii) Mark each affected page ``CBI;'' and
(iii) Clearly highlight or otherwise denote the CBI portions. The
USDOT protects such information from disclosure to the extent allowed
under applicable law.
(3) What will happen if information related to my Project
designation application is the subject of a request under the Freedom
of Information Act (FOIA)? We will apply the procedures contained in 49
CFR part 7 to a request from non-Federal third-parties for information
related to documents you submit under this part. We will consider your
claim of confidentiality at the time someone requests the information
under
[[Page 56908]]
FOIA. Only information that is ultimately determined to be confidential
under that procedure will be exempt from disclosure under FOIA.
(g) Is there a specific format required for project designation
applications and attached documents?
(1) When responding to specific solicitations for Marine Highway
Projects by the Program Office, Project Applicants should include all
of the information requested by paragraph (c) of this section organized
in a manner consistent with the elements set forth in that section. The
Program Office reserves the right to ask any applicant to supplement
the data in its application, but expects applications to be complete
upon submission. The narrative portion of an application should not
exceed 20 pages in length. Documentation supporting the assertions made
in the narrative portion may also be provided in the form of
appendices, but limited to relevant information. Applications may be
submitted electronically via regulations.gov (http://www.regulations.gov). Applications submitted in writing must include
the original and three copies and must be on 8.5'' x 11'' single spaced
paper, excluding maps, Geographic Information Systems (GIS)
representations, etc.
(2) In the event that the Project Applicant of a Marine Highway
Project that has already been designated by the Secretary seeks a
modification to the designation because of a change in project scope,
an expansion of the project, or other significant change to the
project, the Project Applicant should request the change in writing to
the Secretary via the Maritime Administrator. The request must contain
any changed or new information that is relevant to the project.
(h) What does the Program Office do to ensure designated projects are
developing properly?
(1) Once designated projects enter the operational phase (either
start of a new service, or expansion of existing service), the Program
Office will evaluate them regularly to determine if the project is
likely to achieve its objectives.
(2) Overall project performance will be assessed according to three
categories--exceeds, meets, or does not meet original projections--in
each of the three areas defined below:
(i) Public benefit. Does the Project meet the stated goals in
shifting specific numbers of vehicles (number of trucks, rail cars or
automobiles) off the designated landside routes? The Program Office
will assume other public benefits, including energy savings, reduced
emissions, and safety improvements to be a direct derivative of either
numbers of vehicles reduced, or vehicle/ton miles avoided, unless
specific factors change (such as a change in vessel fuel or emissions).
(ii) Public cost. Is the overall cost to the Federal Government (if
any) on track with estimates at the time of designation? The overall
cost to the Federal Government represents the amount of Federal
investment (i.e., direct funding, loan guarantees or similar
mechanisms) reduced by the offsetting savings the project represents
(road/bridge wear and tear avoided, infrastructure construction or
expansion deferred).
(iii) Timeliness factor. Is the project on track for the point at
which the enterprise is projected to attain self-sufficiency? For
example, if the project was anticipated to attain self-sufficiency
after 36 months of operation, is it on track at the point of evaluation
to meet that objective? This can be determined by assessing revenues,
cargo and passenger trends, expenses and other factors established in
the application review process.
(i) Can a Project designation expire or be terminated?
(1) Project Designations are effective for a period of five years,
or until the date the project is completed, or MARAD cancels the
designation. Project Designation will expire after three years of
inactivity.
(2) Project Applicants wishing to extend a Project Designation must
submit an updated application no later than six months before the five-
year designation period ends. Project Applicants who no longer wish to
maintain project designation may submit a request to the Secretary to
revoke their designation.
Subpart C--Department of Transportation Efforts To Foster and
Support America's Marine Highways
Sec. 393.4 DOT Support for planning activities.
(a) How does DOT provide support?
(1) The Program Office engages in coordination and planning
activities with Federal, State, local and tribal governments and
planning and private entities organizations to encourage the use of
designated Marine Highway Routes and Projects. These activities
include:
(i) Working with these entities to assess plans and develop
strategies, where appropriate, to incorporate Marine Highway
transportation and other short sea transportation solutions to their
statewide and metropolitan transportation plans, including the
Statewide Transportation Improvement Programs and State Freight Plans.
(ii) Facilitating groups of States and multi-State transportation
entities to determine how Marine Highway transportation can address
port congestion, traffic delays, bottlenecks, and other interstate
transportation challenges to their mutual benefit.
(iii) Identifying other Federal agencies that have jurisdiction
over services, or which currently provide funding for components of
services, in order to determine which agencies should be consulted and
assist in the coordination process.
(iv) Organizing the Department's modal administrations, including
Federal Highway Administration, Federal Motor Carrier Safety
Administration, Federal Railroad Administration, Saint Lawrence Seaway
Development Corporation, and Federal Transit Administration, as
appropriate, for support and to evaluate costs and benefits of proposed
Marine Highway Routes and Projects.
(2) [Reserved]
(b) [Reserved]
Sec. 393.5 DOT Support for Marine Highway-related research.
(a) How does DOT support research?
(1) The Program Office works in consultation with public and
private entities as appropriate, within the limits of available
resources, to identify impediments, develop incentives, and conduct
innovative research, in support of the America's Marine Highway Program
or in direct support of specific designated Marine Highway Routes and
Projects. The primary objectives of selected research projects are to:
(i) Identify markets, cargoes, and service parameters that could
facilitate the development of new or expanded Marine Highway Services.
(ii) Identify existing or emerging technology, vessel design,
infrastructure designs, and other improvements that would reduce
emissions, increase fuel economy, and lower costs of Marine Highway
transportation and increase the efficiency of intermodal transfers.
(iii) Identify impediments to the establishment of Marine Highway
services.
(iv) Identify incentives to increase the use and efficiency of
Marine Highway services.
(b) The Secretary, in consultation with the Administrator of the
[[Page 56909]]
Environmental Protection Agency, may conduct research on short sea
transportation regarding:
(1) The environmental and transportation benefits to be derived
from short sea transportation alternatives for other forms of
transportation;
(2) Technology, vessel design, and other improvements that would
reduce emissions, increase fuel economy, and lower costs of short sea
transportation and increase the efficiency of intermodal transfers; and
(3) Solutions to impediments to short sea transportation projects
designated.
Sec. 393.6 America's Marine Highway Program Project grants.
(a) How does MARAD administer the AMHP grant program?
(1) The Associate Administrator for Intermodal Systems Development
manages the program under the guidance and the immediate administrative
direction of the Maritime Administrator.
(2) MARAD establishes grant program priorities as reflected in its
grant opportunity announcements and, from time-to-time, issues
clarifying guidance documents through the MARAD Web site and the
Federal Register.
(3) The Administrator makes funding recommendations to the
Secretary, who has the authority to award grants.
(b) How does MARAD make grant opportunities known?
(1) MARAD determines which grant opportunities it will offer, and
establishes application deadlines and programmatic requirements when
grant funds become available to the AMHP.
(2) The MARAD staff prepares Notice of Funding Opportunity (NOFO)
announcements consisting of all information necessary to apply for each
grant and publishes the announcement in the Federal Register and on
grants.gov.
(c) How may an applicant apply for an AMHP grant?
(1) Applicants may apply for a grant using grants.gov or, in
connection with a Federal Register announcement, by submitting the
necessary information to the AMHP Office in electronic form.
(2) [Reserved]
By Order of the Maritime Administrator.
Dated: November 28, 2017.
T. Mitchell Hudson, Jr.,
Secretary, Maritime Administration.
[FR Doc. 2017-25897 Filed 11-30-17; 8:45 am]
BILLING CODE 4910-81-P