[Federal Register Volume 70, Number 212 (Thursday, November 3, 2005)]
[Rules and Regulations]
[Pages 66796-66797]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-21924]


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DEPARTMENT OF TRANSPORTATION

Maritime Administration

46 CFR Part 388

[Docket Number: MARAD-2005-21105]
RIN 2133-AB50


Application Fee Increase for Administrative Waivers of the 
Coastwise Trade Laws

AGENCY: Maritime Administration, Transportation.

ACTION: Final rule.

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SUMMARY: This final rule increases the application fee for 
administrative waivers of the coastwise trade laws from $300 to $500. 
The increased fee will align the application fee with the actual cost 
of processing and issuing each waiver.

DATES: This final rule is effective December 5, 2005.

FOR FURTHER INFORMATION CONTACT: Sharon Cassidy, Office of Ports and 
Domestic Shipping, Maritime Administration, MAR-830, 400 7th St., SW., 
Rm. 7201 Washington, DC 20590; telephone: (202) 366-5506.

SUPPLEMENTARY INFORMATION: Title V of the Independent Offices 
Appropriations Act of 1952 (``IOAA''; 31 U.S.C. 9701) authorizes 
Federal agencies to establish and collect user fees. The statute 
provides that each service or thing of value provided by an agency 
should be self-sustaining to the extent possible, and that each charge 
shall be fair and based on the costs to the Government, the value of 
the service or thing to the recipient, the policy or interest served, 
and other relevant factors. 31 U.S.C. 9701.
    The primary guidance for implementation of the IOAA is Office of 
Management and Budget (OMB) Circular No. A-25 (``User Charges,'' July 
8, 1993). Circular A-25 directs agencies to assess user charges against 
identifiable recipients for special benefits derived from Federal 
activities beyond those received by the general public. Circular A-25, 
section 6. Circular A-25 further directs agencies, with limited 
exceptions, to recover the full cost of providing a Government service 
from the direct recipients of special benefits. Section 6(d) of 
Circular A-25 defines ``full cost'' as including ``all direct and 
indirect costs to any part of the Federal Government of providing a 
good, resource, or service.''
    Pursuant to these directives, MARAD is proposing to increase the 
application fee for administrative waivers of the coastwise trade laws 
under 46 CFR part 388 for eligible small vessels. Under 46 CFR part 
388, owners of small passenger vessels may apply for waivers of the 
U.S.-build requirements of the Passenger Vessel Services Act and 
section 27 of the Merchant Marine Act, 1920, to allow the carriage of 
no more than 12 passengers for hire in the coastwise trade. Because 
waivers under part 388 represent special benefits to identifiable 
recipients (i.e., vessel owners) that are beyond the benefits and 
services normally received by the general public, the IOAA and Circular 
A-25 direct MARAD to assess user fees for providing this service. The 
current application fee for a waiver is $300. MARAD proposes to 
increase this fee to $500 as set forth below.
    Following the principles embodied in Circular A-25, MARAD examined 
the costs associated with processing and issuing waivers under part 388 
to determine if the current $300 fee recovers the full costs of 
administering the program. The main cost components of the program 
include direct and indirect personnel costs and Federal Register 
publication costs. Our review of the program determined that average 
personnel costs for processing each uncontested application are $204.50 
and $1118.50 for each contested application (on average, 7% of all 
waiver applications are contested, based on the 236 applications 
sampled for our analysis). Thus, the total average personnel costs are 
$268.48 for processing each application. The second main cost component 
of the program is the cost of publishing notices of waiver applications 
in the Federal Register. The current Federal Register publication cost 
is $155 per column and the average length of a public notice published 
for this program is 1.5 columns. Thus, the total average publication 
cost is $232.50. The sum total of personnel costs and Federal Register 
publication costs is $500.98. Therefore, MARAD is proposing to raise 
the application fee from $300 to $500 in order to recover these costs.
    On May 12, 2005, MARAD published a notice of proposed rulemaking in 
the Federal Register (70 FR 25010) that sought comments on the proposed 
fee increase. No comments were received.

Regulatory Analyses and Notices

Executive Order 12866 and DOT Regulatory Policies and Procedures

    This rulemaking 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 rule is not 
likely to result in an annual effect on the economy of $100 million or 
more. This 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 economic impact associated with this 
rulemaking are considered to be so minimal that no further analysis is 
necessary.

Regulatory Flexibility Act

    In accordance with the Regulatory Flexibility Act (5 U.S.C. 601 et 
seq.), the Maritime Administrator certifies that this rule will not 
have a significant economic impact on a substantial number of small 
entities. While this rule will affect businesses that qualify as small 
entities under Small Business Administration guidelines, MARAD does not 
believe that the modest increase in this one-time, non-recurring fee 
(unless an applicant must reapply due to a revocation) will result in a 
significant economic impact on small entities. Further, MARAD is 
required under Federal directives to assess recipients of special 
governmental services reasonable charges to recover the costs of 
providing such services.

[[Page 66797]]

Federalism

    We have analyzed this rule in accordance with the principles and 
criteria contained in Executive Order 13132 (Federalism) and have 
determined that it does not have sufficient federalism implications to 
warrant the preparation of a federalism summary impact statement. These 
regulations have no substantial effects on the States, the current 
Federal-State relationship, or the current distribution of power and 
responsibilities among local officials. Therefore, consultation with 
State and local officials is not necessary.

Executive Order 13175

    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 Executive Order 
13175 (Consultation and Coordination with Indian Tribal Governments). 
Therefore, the funding and consultation requirements of this Executive 
Order do not apply.

Environmental Impact Statement

    We have analyzed this 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 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.

Unfunded Mandates Reform Act of 1995

    This rule does not impose an unfunded mandate under the Unfunded 
Mandates Reform Act of 1995. It does not result in costs of $100 
million or more, in the aggregate, to any of the following: State, 
local, or Native American tribal governments, or the private sector. 
This rule is the least burdensome alternative that achieves this 
objective of U.S. policy.

Paperwork Reduction Act

    This rule contains information collection requirements covered by 
the Office of Management and Budget approval number 2133-0529. The 
changes have no impact on the reporting burden.

List of Subjects in 46 CFR 388

    Administrative practice and procedure, Maritime carriers, Passenger 
vessels, Reporting and recordkeeping requirements.

0
Accordingly, the Maritime Administration amends 46 CFR chapter II, 
subchapter J, by amending part 388 as follows.

PART 388--ADMINISTRATIVE WAIVERS OF THE COASTWISE TRADE LAWS

0
1. The authority citation for part 388 continues to read as follows:

    Authority: 46 App. U.S.C. 1114(b); Pub. L. 105-383, 112 Stat. 
3445 (46 U.S.C. 12106 note); 49 CFR 1.66.

0
2. Amend Sec.  388.3 by revising paragraph (a)(1) and the introductory 
text of paragraph (a)(2) to read as follows:


Sec.  388.3  Application and fee.

    (a) * * *
    (1) The application form contained on MARAD's Web site at http://www.marad.dot.gov may be submitted electronically with credit card or 
Automated Clearinghouse (ACH) payment of the $500 application fee.
    (2) Alternatively, applicants may send written applications to 
Small Vessel Waiver Applications, Office of Ports and Domestic 
Shipping, MAR-830, Room 7201, 400 7th St., SW., Washington, DC 20590. 
Written applications need not be in any particular format, but must be 
signed, be accompanied by a check for $500 made out to the order of 
``Maritime Administration'', and contain the following information:
* * * * *

    Dated: October 31, 2005.

    By order of the Maritime Administrator.
Joel C. Richard,
Secretary, Maritime Administration.
[FR Doc. 05-21924 Filed 11-2-05; 8:45 am]
BILLING CODE 4910-81-P