[Federal Register Volume 77, Number 22 (Thursday, February 2, 2012)]
[Rules and Regulations]
[Pages 5193-5194]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-2256]

[[Page 5193]]



Maritime Administration

46 CFR Parts 251, 252, 276, 280, 281, 282, and 283

[Docket No. MARAD 2012-0004]
RIN 2133-AB80

Retrospective Review Under E.O. 13563: Shipping--Removal of 
Obsolete Regulations

AGENCY: Maritime Administration, Department of Transportation.

ACTION: Final rule.


SUMMARY: In accordance with Executive Order 13563, ``Improving 
Regulation and Regulatory Review,'' the Maritime Administration (MarAd) 
is evaluating the continued validity of its rules and determining 
whether they effectively address current issues. As part of this 
review, MarAd has decided to remove parts of its regulations. The 
Maritime Security Act of 1996, established the Maritime Security 
Program, which replaced the Operating-Differential Subsidy (ODS) 
Program. Therefore, the regulations pertaining to the ODS Program and 
the Construction-Differential (CDS) Program are no longer in use. In 
addition, the disuse of regulations pertaining to the CDS program, have 
rendered these regulations obsolete. This rulemaking, deleting these 
obsolete regulations, will have no substantive effect on the regulated 

DATES: This final rule is effective on February 2, 2012.

ADDRESSES: This final rule is available for inspection and copying 
between 9 a.m. and 5 p.m., ET, Monday through Friday, except Federal 
holidays, at the Docket Clerk, U.S. DOT Dockets, W12-140, Department of 
Transportation, 1200 New Jersey Avenue SE., Washington, DC 20590-0001. 
An electronic version of this document is available on the World Wide 
Web at http://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT:  T. Mitchell Hudson, Jr., Division of 
Legislation and Regulations, Office of Chief Counsel, Maritime 
Administration, 1200 New Jersey Avenue SE., Room W24-220, Washington, 
DC 20590-0001; telephone: (202) 366-9373.



    On January 18, 2011, President Obama issued Executive Order 13563, 
which outlined a plan to improve regulation and regulatory review (76 
FR 3821, 1/21/11). Executive Order 13563 reaffirms and builds upon 
governing principles of contemporary regulatory review, including 
Executive Order 12866, ``Regulatory Planning and Review,'' (58 FR 
51735, 10/4/1993), by requiring Federal agencies to design cost-
effective, evidence-based regulations that are compatible with economic 
growth, job creation, and competitiveness. The President's plan 
recognizes that these principles should not only guide the Federal 
government's approach to new regulations, but to existing ones as well. 
To that end, Executive Order 13563 requires agencies to review existing 
significant rules to determine if they are outmoded, ineffective, 
insufficient, or excessively burdensome.
    Accordingly, the Maritime Administration (MarAd) is deleting 
regulations 46 CFR parts 251, 252, 276, 280, 281,282, and 283. The 
regulations related to the ODS Program are no longer needed because 
they have been superseded by the Maritime Security Program established 
in the Maritime Security Act of 1996, Public Law 104-239. Section 3 of 
the Maritime Security Act of 1996 prohibits the Secretary of 
Transportation from entering into any new ODS contracts. Additionally, 
all previously awarded ODS contracts have expired and no further 
payments will be made. Therefore, the existing regulations do not serve 
any useful purpose.
    The regulations governing the CDS Program are being deleted because 
the program has not been funded for approximately thirty years and, as 
a practical matter of disuse, the existing regulations are outdated. If 
funds were to be appropriated for CDS in the future, contracts will be 
awarded under new regulations or under existing or modified policies 
and procedures for awarding grants.

Rulemaking Analyses and Notices

Executive Order 12866 (Regulatory Planning and Review), Executive Order 
13563 (Improving Regulation and Regulatory Review) and Department of 
Transportation (DOT) Regulatory Policies and Procedures; Public Law 

    Under Executive Order 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 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 
    (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 final rule is not considered a 
significant regulatory action under section 3(f) of Executive Order 
12866 and, therefore, was not reviewed by the Office of Management and 
Budget. This final rule will not result in an annual effect on the 
economy of $100 million or more. It also is not considered a major rule 
for purposes of Congressional review under Public Law 104-121. This 
final rule 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 are 
so minimal that no further analysis is necessary.

Administrative Procedure Act

    The Administrative Procedure Act (5 U.S.C. 553) provides an 
exception to notice and comment procedures when they are unnecessary or 
contrary to the public interest. MarAd finds that under 5 U.S.C. 
553(b)(3)(B) good cause exists for not providing notice and comment 
since this final rule deletes regulations that no longer serve the 
public interest as a result of having been superseded or as a matter of 
disuse. Under 5 U.S.C. 553(d)(3), MarAd finds that, for the same 
reasons, good cause exists for making this rule effective less than 30 
days after publication in the Federal Register.

Executive Order 13132 (Federalism)

    We analyzed this rulemaking in accordance with the principles and 
criteria contained in E.O. 13132 (``Federalism'') and have determined 
that it does not have sufficient Federalism implications to warrant the 
preparation of a Federalism summary

[[Page 5194]]

impact statement. This rule 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 

    MarAd does not believe that this final rule 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.

E.O. 12372 (Intergovernmental Review)

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

Regulatory Flexibility Act

    The Regulatory Flexibility Act of 1980 requires MarAd to assess 
whether this rule would have a significant economic impact on a 
substantial number of small entities and to minimize any adverse 
impact. The Maritime Administrator certifies that this final rule will 
not have a significant economic impact on a substantial number of small 
entities. This final rule only deletes obsolete Parts in title 46 of 
the CFR, which have no substantive effect on the regulated public.

Environmental Assessment

    We have analyzed this final rule 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 

Executive Order 13211 (Energy Supply, Distribution, or Use)

    MarAd has determined that the proposed rule would not significantly 
affect energy supply, distribution, or use. Therefore, no Statement of 
Energy Effects is required.

Executive Order 12630 (Taking of Private Property)

    This rule would 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.

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 contains no new or amended information 
collection or recordkeeping requirements that have been approved or 
require approval by the Office of Management and Budget.

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 proposed rule does not impose unfunded mandates under 
the Unfunded Mandates Reform Act of 1995. It does 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.

List of Subjects

46 CFR Part 251

    Application for Subsidies and Other Direct Financial Aid.

46 CFR Part 252

    Operating-Differential Subsidy for Bulk Cargo Vessels Engaged in 
World-Wide Services.

46 CFR Part 276

    Construction-Differential Subsidy Repayment

46 CFR Part 280

    Limitations on the Award and Payment of Operating-Differential 
Subsidy for Liner Operators.

46 CFR Part 281

    Information and Procedure Required under Liner Operating-
Differential Subsidy Agreements.

46 CFR Part 282

    Operating-Differential Subsidy for Liner Vessels Engaged in 
Essential Services in the Foreign Commerce of the United States.

46 CFR Part 283

    Dividend Policy for Operators Receiving Operating-Differential 

    For the reasons set forth in the preamble, and under the authority 
of the Merchant Marine Act of 1936, codified at 46 U.S.C. chapter 501, 
MarAd amends 46 CFR chapter II, subchapter C by removing parts 251, 
252, 276, 280, 281, 282, and 283. All contracts for Operating-
Differential Subsidy, not previously closed out, are hereby terminated, 
and no further payments shall be owning or payable. Parts 251, 252, 
276, 280, 281 and 283, of title 46, CFR, are removed and reserved for 
future use by MarAd.








    Dated: January 27, 2012.

    By Order of the Maritime Administrator and Maritime Subsidy 
Julie Agarwal,
Secretary, Maritime Administration.
[FR Doc. 2012-2256 Filed 2-1-12; 8:45 am]