106320 Federal Register / Vol. 89, No. 249 / Monday, December 30, 2024 / Rules and Regulations 

or interest rate mode that occurs 

pursuant to the terms of the bond is a 

modification. Thus, an issuer’s exercise 

of an option to alter the interest rate or 

interest rate mode on a qualified tender 

bond generally is not a modification 

under § 1.1001–3 because the alteration 

occurs by operation of the terms of the 

bond and the holder’s resulting right to 

put the bond to the issuer or the issuer’s 

agent pursuant to the disregarded 

qualified tender right does not prevent 

the issuer’s option from qualifying as a 

unilateral option under § 1.1001–3(c)(3) 

that would not give rise to a 

modification. 

(2) Acquisition pursuant to a qualified 

tender right. An acquisition of a 

qualified tender bond by the issuer or its 

agent does not result in the retirement 

of the bond under paragraph (b)(1)(ii) of 

this section if the acquisition is 

pursuant to the operation of a qualified 

tender right and neither the issuer nor 

its agent continues to hold the bond 

after the close of the 90-day period 

beginning on the date of the tender. 

(3) Acquisition of a tax-exempt bond 

by a guarantor or liquidity facility 

provider. An acquisition of a tax-exempt 

bond by a guarantor or liquidity facility 

provider acting on the issuer’s behalf 

does not result in the retirement of the 

bond under paragraph (b)(1)(ii) of this 

section if the acquisition is pursuant to 

the terms of the guarantee or liquidity 

facility and the guarantor or liquidity 

facility provider is not a related party 

(as defined in § 1.150–1(b)) to the issuer. 

(d) Effect of retirement. If a bond is 

retired pursuant to paragraph (b)(1)(i) of 

this section (that is, in a transaction 

treated as an exchange of the bond for 

a bond with modified terms), the bond 

is treated as a new bond issued at the 

time of the modification as determined 

under § 1.1001–3. If the issuer or its 

agent resells a bond retired pursuant to 

paragraph (b)(1)(ii) of this section, the 

bond is treated as a new bond issued on 

the date of resale. The rules of § 1.150– 

1(d) apply to determine if the new bond 

is part of a refunding issue. 

(e) Definitions. For purposes of this 

section, the following definitions apply: 

(1) Issuer means the State or local 

governmental unit (as defined in 

§ 1.103–1) that actually issues the taxexempt bond and any related party (as 

defined in § 1.150–1(b)) to the actual 

issuer (as distinguished, for example, 

from a conduit borrower that is not a 

related party to the actual issuer). 

(2) Qualified tender bond means a taxexempt bond that, pursuant to the terms 

of the bond, has all of the following 

features: 

(i) During each authorized interest 

rate mode, the bond bears interest at a 

fixed interest rate, a qualified floating 

rate under § 1.1275–5(b), or an objective 

rate for a tax-exempt bond under 

§ 1.1275–5(c)(5); 

(ii) Interest on the bond is 

unconditionally payable (as defined in 

§ 1.1273–1(c)(1)(ii)) at periodic intervals 

of no more than one year; 

(iii) The bond has a stated maturity 

date that is not later than 40 years after 

the issue date of the bond; and 

(iv) The bond includes a qualified 

tender right. 

(3) Qualified tender right means a 

right or obligation of a holder of a taxexempt bond pursuant to the terms of 

the bond to tender the bond for 

purchase as described in this paragraph 

(e)(3). The purchaser under the tender 

may be the issuer, its agent, or another 

party. The tender right is available on at 

least one date before the stated maturity 

date. For each such tender, the purchase 

price of the bond is equal to par (plus 

any accrued interest). Following each 

such tender, the issuer, its agent, or 

another party either redeems the bond 

or uses reasonable best efforts to resell 

the bond within the 90-day period 

beginning on the date of the tender. 

Upon any such resale, the resale price 

of the bond is equal to the par amount 

of the bond (plus any accrued interest), 

except that, if the tender right is 

exercised in connection with a 

conversion of the interest rate mode on 

the bond to a fixed rate for the 

remaining term of the bond, the bond 

may be resold at any price, including a 

premium price above the par amount of 

the bond or a discount price below the 

par amount of the bond (plus any 

accrued interest). Any premium 

received by the issuer pursuant to such 

a resale is treated solely for purposes of 

the arbitrage investment restrictions 

under section 148 of the Code as 

additional sale proceeds of the bonds. 

(f) Applicability date—(1) General 

applicability. This section applies to 

events occurring and actions taken with 

respect to bonds on or after December 

30, 2025. 

(2) Permissive applicability. An issuer 

may choose to apply this section to 

events occurring and actions taken with 

respect to bonds on or after December 

30, 2024. 

■ Par. 3. Section 1.1001–3 is amended 

by revising paragraph (a)(2) to read as 

follows: 

§ 1.10011.1001–3 Modifications of debt 

instruments. 

(a) * * * 

(2) Tax-exempt bonds. For special 

rules governing whether tax-exempt 

bonds are retired for purposes of 

sections 103 and 141 through 150 of the 

Internal Revenue Code, see § 1.150–3. 

* * * * * 

Douglas W. O’Donnell, 

Deputy Commissioner. 

Approved: December 8, 2024. 

Aviva R. Aron-Dine, 

Deputy Assistant Secretary of the Treasury 

(Tax Policy). 

[FR Doc. 2024–30267 Filed 12–27–24; 8:45 am] 

BILLING CODE 4830–01–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 165 

[Docket Number USCG–2024–0205] 

RIN 1625–AA11 

Regulated Navigation Area; Port of 

Miami, Miami, FL 

AGENCY: Coast Guard, DHS. 

ACTION: Final rule. 

SUMMARY: The Coast Guard is 

establishing a regulated navigation area 

for certain waters surrounding the Port 

of Miami. This action is necessary to 

enhance the protection of high-risk 

vessel and port operations while 

reducing navigational hazards to 

waterway users and mariners by 

controlling vessel speeds. This rule will 

establish a slow speed zone throughout 

Fisherman’s Channel and the Main Ship 

Channel for vessels less than 50 meters 

in length. 

DATES: This rule is effective January 29, 

2025. 

ADDRESSES: To view documents 

mentioned in this preamble as being 

available in the docket, go to https://

www.regulations.gov, type USCG–2024– 

0205 in the search box and click 

‘‘Search.’’ Next, in the Document Type 

column, select ‘‘Supporting & Related 

Material.’’ 

FOR FURTHER INFORMATION CONTACT: If 

you have questions about this rule, call 

or email Mr. David Lieberman, District 

7 Dpw, U.S. Coast Guard; telephone 

(206) 827–3637, email 

David.L.Lieberman2@uscg.mil. 

SUPPLEMENTARY INFORMATION: 

I. Table of Abbreviations 

CFR Code of Federal Regulations 

COTP Captain of the Port 

DHS Department of Homeland Security 

FR Federal Register 

LNG Liquified Natural Gas 

NAVCEN Coast Guard Navigation Center 

NOI Notice of Intent 


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Federal Register / Vol. 89, No. 249 / Monday, December 30, 2024 / Rules and Regulations 106321 

NPRM Notice of proposed rulemaking 

PAWSA Port and Waterways Safety 

Assessment 

RNA Regulated Navigation Area 

§ Section 

U.S.C. United States Code 

II. Background Information and 

Regulatory History 

The Captain of the Port (COTP) Miami 

has determined that the Port of Miami 

is at increased navigational risk as the 

port continues to expand and vessel 

traffic increases. On May 10–11, 2023, 

Coast Guard Navigation Center 

(NAVCEN) and Sector Miami conducted 

a Ports and Waterways Safety 

Assessment (PAWSA) with key 

stakeholders of the Port of Miami. The 

core finding of workshop participants 

was the presence of increased hazards to 

navigational safety in the Port of Miami 

created by high-speed vessel operations 

and the resulting large and damaging 

wakes they often introduce into the 

congested and geographically confined 

waterway. Over the last few years, a 

growing number of near misses 

prompted concern for the safety of life 

as both the volume of vessel traffic and 

speeds of vessels have increased. On 

June 25, 2023, around 3:30 a.m., a 

recreational vessel, traveling at a high 

rate of speed through the Main Ship 

Channel, collided with a crossing 

vehicle ferry, killing one person and 

seriously injuring another. The incident 

not only resulted in the tragic loss of life 

but also caused a significant disruption 

of 30,000 cruise ship passengers and 

cargo movements within the Port of 

Miami for over 12 hours. Additionally, 

on February 12, 2024, a recreational 

vessel collied with an inspected 

passenger vessel in a critical point of 

Fisherman’s Channel. This incident 

resulted in 13 injuries with one person 

in critical condition. This regulated 

navigation area (RNA) will reduce the 

navigational risk associated with one of 

the world’s largest ports, reduce the loss 

of life, and mitigate the chance of 

disruption to port operations. 

On April 11, 2024, under docket 

USCG–2024–0205, the Coast Guard 

published a Notice of Intent (NOI) 

entitled Regulated Navigation Area; Port 

of Miami, Miami, FL in the Federal 

Register (89 FR 25553) seeking 

comments on a potential RNA around 

the Port of Miami. The Coast Guard 

received 47 comments that had a 

predominantly positive tone. 

On August 28, 2024, under docket 

USCG–2024–0205, the Coast Guard 

published a Notice of Proposed 

Rulemaking (NPRM) entitled Regulated 

Navigation Area; Port of Miami, Miami, 

FL in the Federal Register (89 FR 

68843). The NPRM provided official 

notice of the proposed RNA and invited 

comment on the proposed regulatory 

action. The comment period ended on 

September 28, 2024, with 32 comments 

received that reflected a predominantly 

positive tone. 

III. Legal Authority and Need for Rule 

The Coast Guard is issuing this rule 

under the authority in 46 U.S.C. 70034. 

The COTP Miami has determined the 

potential hazards associated with 

increased vessel traffic and wake 

created by vessels transiting at high 

speeds poses a concern for navigational 

safety surrounding the Port of Miami. In 

addition, the Port of Miami is expanding 

its cruise ship terminals and will soon 

be the largest cruise ship port in the 

world, moving tens of thousands of 

passengers every day. With this, the Port 

of Miami also experienced an increase 

in Liquified Natural Gas (LNG) powered 

cruise ships and cargo vessels resulting 

in an increase of hazardous bunkering 

operations within the port. The existing 

security risk associated with the Port of 

Miami is already high and this 

expansion only increases that risk. 

Establishing the RNA will reduce the 

speed of vessels and aid law 

enforcement officials in monitoring 

vessel traffic, as vessels not complying 

with slow speed zones will quickly 

draw attention, giving law enforcement 

officials more time to assess the 

situation and take appropriate action to 

protect vessels within the port and port 

facilities. The purpose of this rule is to 

ensure safe navigation and promote the 

safety of life at sea. 

IV. Discussion of Comments, Changes, 

and the Rule 

There are no changes in the regulatory 

text of this rule from the proposed 

language in the NPRM. This rule 

establishes an RNA for certain waters 

surrounding the Port of Miami. This 

rule will establish a slow speed zone 

throughout Fisherman’s Channel and 

the Main Ship Channel for vessels less 

than 50 meters in length. This action is 

necessary to provide for the safety of life 

by enhancing the protection of 

increased high-risk vessel traffic while 

reducing the navigational hazards to the 

mariners who operate throughout the 

port. 

V. Regulatory Analyses 

We developed this rule after 

considering numerous statutes and 

Executive orders related to rulemaking. 

Below we summarize our analyses 

based on a number of these statutes and 

Executive orders, and we discuss First 

Amendment rights of protestors. 

A. Regulatory Planning and Review 

Executive Orders 12866 and 13563 

direct agencies to assess the costs and 

benefits of available regulatory 

alternatives and, if regulation is 

necessary, to select regulatory 

approaches that maximize net benefits. 

This rule has not been designated a 

‘‘significant regulatory action,’’ under 

section 3(f) of Executive Order 12866, as 

amended by Executive Order 14094 

(Modernizing Regulatory Review). 

Accordingly, this rule has not been 

reviewed by the Office of Management 

and Budget (OMB). 

This regulatory action determination 

is based on the size, location, duration 

and time of day of the regulated area. 

The regulated navigation area will only 

affect vessels entering and passing 

within the Main Ship Channel, 

Fisherman’s Channel, and Meloy 

Channel. Vessels may continue to 

operate within the regulated navigation 

area with the only restriction being the 

requirement to operate at slow speeds 

and not create an excessive wake. 

Moreover, upon activating the regulated 

navigation area, the Coast Guard will 

notify the local maritime community 

through various means including, Local 

Notice to Mariners and Broadcast Notice 

to Mariners issued on VHF–FM marine 

radio channel 16. 

B. Impact on Small Entities 

The Regulatory Flexibility Act of 

1980, 5 U.S.C. 601–612, as amended, 

requires Federal agencies to consider 

the potential impact of regulations on 

small entities during rulemaking. The 

term ‘‘small entities’’ comprises small 

businesses, not-for-profit organizations 

that are independently owned and 

operated and are not dominant in their 

fields, and governmental jurisdictions 

with populations of less than 50,000. 

The Coast Guard received no comments 

from the Small Business Administration 

on this rulemaking. The Coast Guard 

certifies under 5 U.S.C. 605(b) that this 

rule will not have a significant 

economic impact on a substantial 

number of small entities. 

C. Collection of Information 

This rule will not call for a new 

collection of information under the 

Paperwork Reduction Act of 1995 (44 

U.S.C. 3501–3520). 

D. Federalism and Indian Tribal 

Governments 

A rule has implications for federalism 

under Executive Order 13132, 

Federalism, if it has a substantial direct 

effect on the States, on the relationship 

between the National Government and 

the States, or on the distribution of 


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106322 Federal Register / Vol. 89, No. 249 / Monday, December 30, 2024 / Rules and Regulations 

power and responsibilities among the 

various levels of government. We have 

analyzed this rule under that Order and 

have determined that it is consistent 

with the fundamental federalism 

principles and preemption requirements 

described in Executive Order 13132. 

Also, this rule does not have tribal 

implications under Executive Order 

13175, Consultation and Coordination 

with Indian Tribal Governments, 

because it does not have a substantial 

direct effect on one or more Indian 

Tribes, on the relationship between the 

Federal Government and Indian Tribes, 

or on the distribution of power and 

responsibilities between the Federal 

Government and Indian Tribes. 

E. Unfunded Mandates Reform Act 

The Unfunded Mandates Reform Act 

of 1995 (2 U.S.C. 1531–1538) requires 

Federal agencies to assess the effects of 

their discretionary regulatory actions. In 

particular, the Act addresses actions 

that may result in the expenditure by a 

State, local, or Tribal government, in the 

aggregate, or by the private sector of 

$100,000,000 (adjusted for inflation) or 

more in any one year. Though this rule 

will not result in such an expenditure, 

we do discuss the effects of this rule 

elsewhere in this preamble. 

F. Environment 

We have analyzed this rule under 

Department of Homeland Security 

Directive 023–01, Rev. 1, associated 

implementing instructions, and 

Environmental Planning COMDTINST 

5090.1 (series), which guide the Coast 

Guard in complying with the National 

Environmental Policy Act of 1969 (42 

U.S.C. 4321–4370f), and have 

determined that this action is one of a 

category of actions that do not 

individually or cumulatively have a 

significant effect on the human 

environment. This rule involves a 

regulated navigation area requiring 

vessels 50 meters or less to transit the 

regulated area at a slow speed that 

creates minimum wake. It is 

categorically excluded from further 

review under paragraph L[60a] of 

Appendix A, Table 1 of DHS Instruction 

Manual 023–01–001–01, Rev. 1. A 

Record of Environmental Consideration 

supporting this determination is 

available in the docket. For instructions 

on locating the docket, see the 

ADDRESSES section of this preamble. 

G. Protest Activities 

The Coast Guard respects the First 

Amendment rights of protesters. 

Protesters are asked to call or email the 

person listed in the FOR FURTHER

INFORMATION CONTACT section to 

coordinate protest activities so that your 

message can be received without 

jeopardizing the safety or security of 

people, places or vessels. 

List of Subjects in 33 CFR Part 165 

Harbors, Marine Safety, Navigation 

(water), Reporting and recordkeeping 

requirements, Security measures, 

Waterways. 

For the reasons discussed in the 

preamble, the Coast Guard amends 33 

CFR part 165 as follows: 

PART 165—REGULATED NAVIGATION 

AREAS AND LIMITED ACCESS AREAS 

■ 1. The authority citation for part 165 

continues to read as follows: 

Authority: 46 U.S.C. 70034, 70051, 70124; 

33 CFR 1.05–1, 6.04–1, 6.04–6, and 160.5; 

Department of Homeland Security Delegation 

No. 00170.1, Revision No. 01.3. 

■ 2. Add § 165.792 before the center 

heading ‘‘Eighth Coast Guard District’’ 

to read as follows: 

§ 165.792 Regulated Navigation Area; Port 

of Miami, Miami, Florida. 

(a) Location. The following area is a 

Regulated Navigation Area (RNA): All 

waters of the Port of Miami, from 

Fisherman’s Channel Daybeacon 16 at 

25°46.40′ N, 080°10.84′ W proceeding 

southeasterly through Fisherman’s 

Channel south of Dodge Island to Miami 

Main Channel Light 15 at 25°45.86′ N. 

080°08.24′ W in Government Cut, 

thence northwesterly through the Main 

Ship Channel north of Dodge Island to 

Biscayne Bay Light 50 at 25°46.90′ N, 

080°10.88′ W. Additionally, the Meloy 

Channel from Miami Main Channel 

Lighted Buoy 16 at 25°46.04′ N, 

080°08.41′ W proceeding northwesterly 

to the MacArthur Causeway Bridge. The 

coordinates used in this paragraph are 

based on the World Geodetic System 

(WGS) 1984. 

(b) Definitions. As used in this 

section, slow speed means the speed at 

which a vessel proceeds when it is fully 

off plane, completely settled in the 

water and not creating excessive wake. 

Due to the different speeds at which 

vessels of different sizes and 

configurations may travel while in 

compliance with this definition, no 

specific speed is assigned to slow speed. 

A vessel is not proceeding at slow speed 

if it is: 

(1) On plane; 

(2) In the process of coming up on or 

coming off plane; or 

(3) Creating an excessive wake. 

(c) Regulations. Vessels less than 50 

meters entering and transiting through 

the regulated navigation area shall 

proceed at a slow speed. Nothing in this 

section alleviates vessels or operators 

from complying with all state and local 

laws in the area including manatee slow 

speed zones. Nor should anything in 

this section be construed as conflicting 

with the requirement to operate at safe 

speed under the Inland Navigation 

Rules, (33 CFR chapter I, subchapter E). 

(d) Enforcement. The Coast Guard 

may be assisted in the patrol and 

enforcement of the Regulated 

Navigation Area by other Federal, State, 

and local agencies. 

(e) Contact information. If you 

observe violations of the regulations in 

this section, you may notify the COTP 

via the Coast Guard Sector Miami 

Command Center via VHF channel 16, 

by phone at 305–535–4472, or by email 

at SectorMiamiWaterways@uscg.mil. 

Dated: December 20, 2024. 

Douglas M. Schofield, 

Rear Admiral, U.S. Coast Guard, Commander, 

Seventh Coast Guard District. 

[FR Doc. 2024–31268 Filed 12–27–24; 8:45 am] 

BILLING CODE 9110–04–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 165 

[Docket No. USCG–2024–1065] 

Safety Zone; Annual Fireworks 

Displays and Other Events in the 

Eighth Coast Guard District Requiring 

Safety Zones 

AGENCY: Coast Guard, DHS. 

ACTION: Notification of enforcement of 

regulation. 

SUMMARY: The Coast Guard will enforce 

a safety zone for the Crescent City 

Countdown Club/New Year’s 

Celebration fireworks display, from 

11:30 p.m. on December 31, 2024, 

through 12:30 a.m. on January 1, 2025, 

to provide for the safety of life on the 

navigable waterways during this event. 

Our regulation for annual fireworks 

displays and other events in the Eighth 

Coast Guard District identifies this 

safety zone for this event on the 

Mississippi River in New Orleans, LA. 

During the enforcement period, entry 

into this zone is prohibited unless 

authorized by the Captain of the Port or 

a designated representative. 

DATES: The regulations in 33 CFR 

165.801 will be enforced for the 

Crescent City Countdown Club/New 

Year’s Celebration safety zone listed in 

item 10 in table 5 to § 165.801 from 

11:30 p.m. on December 31, 2024, 

through 12:30 a.m. on January 1, 2025. 


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