Policy Statement on Passenger Vessel Financial Responsbility, 49600-49601 [2020-16965]
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Federal Register / Vol. 85, No. 158 / Friday, August 14, 2020 / Rules and Regulations
reduction in minimum reporting
frequency specified for certain
categories of stationary sources
regulated under the CAA, which will
have no effect on any obligation to
comply with emission limitations in
SIPs.
e. Paragraph 5.3.3 is amended by
removing the words ‘‘quarterly
summary’’ and replacing them with
‘‘reports submitted as specified in
paragraph 4.1 of this appendix’’.
■
[FR Doc. 2020–15668 Filed 8–13–20; 8:45 am]
II. Policy Statement for 46 CFR Part 540
Passenger Vessel Financial
Responsibility
BILLING CODE 6560–50–P
L. Congressional Review Act (CRA)
This action is subject to the CRA, and
the EPA will submit a rule report to
each House of the Congress and to the
Comptroller General of the United
States. This action is not a ‘‘major rule’’
as defined by 5 U.S.C. 804(2).
VI. Statutory Authority
The statutory authority for this action
is provided by CAA section 101 et seq.
(42 U.S.C. 7401 et seq.).
Environmental protection,
Administrative practice and procedure,
Air pollution control, Carbon monoxide,
Intergovernmental relations, Lead,
Nitrogen dioxide, Nitrogen oxides,
Opacity, Ozone, Reporting and
recordkeeping requirements, Sulfur
dioxide, Sulfur oxides, Transportation,
Volatile organic compounds.
Andrew Wheeler,
Administrator.
For the reasons stated in the
preamble, title 40, chapter I of the Code
of Federal Regulations is amended as
follows:
1. The authority citation for part 51
continues to read as follows:
■
Authority: 23 U.S.C. 101; 42 U.S.C. 7401–
7671q.
Appendix P to Part 51—[Amended]
2. In appendix P to part 51:
a. Paragraph 1.0 is amended by
removing ‘‘40 CFR 51.165(b)’’ and
adding in its place ‘‘40 CFR 51.214’’;
■ b. Paragraph 4.1 is amended by
removing the words ‘‘for each calendar
quarter’’ and adding in their place the
words ‘‘twice per year at 6-month
intervals’’;
■ c. Paragraph 4.6 is amended by
removing the words ‘‘in the quarterly
summaries, and’’ and adding in their
place the words ‘‘as specified in
paragraph 4.1 of this appendix,’’;
■ d. Paragraph 5.2.3 is amended by
removing the words ‘‘quarterly
summary’’ and adding in their place the
words ‘‘reports submitted as specified in
paragraph 4.1 of this appendix’’; and
khammond on DSKJM1Z7X2PROD with RULES
16:38 Aug 13, 2020
Jkt 250001
[Docket No. 20–13]
Policy Statement on Passenger Vessel
Financial Responsbility
Federal Maritime Commission.
Policy statement.
AGENCY:
The Federal Maritime
Commission (Commission) is publishing
this policy statement in order to provide
guidance on possible regulatory relief
with respect to COVID–19’s
unprecedented economic effects to
passenger vessel operators.
DATES: This policy statement is effective
August 14, 2020.
FOR FURTHER INFORMATION CONTACT:
Cindy Hennigan, Director, Bureau of
Certification and Licensing, Federal
Maritime Commission, 800 North
Capitol Street NW, Room 1018,
Washington, DC 20573; email: bcl@
fmc.gov; phone: 202–523–5787.
SUPPLEMENTARY INFORMATION:
I. Background
PART 51—REQUIREMENTS FOR
PREPARATION, ADOPTION, AND
SUBMITTAL OF IMPLEMENTATION
PLANS
VerDate Sep<11>2014
46 CFR Part 540
SUMMARY:
List of Subjects in 40 CFR Part 51
■
■
FEDERAL MARITIME COMMISSION
ACTION:
On March 14, 2020, the Centers for
Disease Control and Prevention (CDC)
issued a ‘‘No Sail Order and Suspension
of Further Embarkation’’ causing
passenger vessel operators (PVOs) in the
U.S. to cease all operations. CDC later
extended the term of the order,
demonstrating the uncertainty
associated with this coronavirus
pandemic (COVID–19).
On April 30, 2020, the Commission
initiated Fact Finding 30 to investigate
COVID–19’s impact on the cruise
industry. The Commission’s FactFinding Officer has been meeting with
PVOs, marine terminal operators, and
other stakeholders to understand
COVID–19’s effects on the cruise
industry.
To overcome the effects COVID–19
has had on our economy, on May 19,
2020, President Trump issued Executive
Order 13924, Regulatory Relief To
Support Economic Recovery. President
Trump declared that federal agencies
‘‘should address this economic
emergency by rescinding, modifying,
waiving, or providing exemptions from
regulations and other requirements that
PO 00000
Frm 00012
Fmt 4700
may inhibit economic recovery,
consistent with applicable law and with
protection of the public health and
safety, with national and homeland
security, and with budgetary priorities
and operational feasibility.’’
Sfmt 4700
The Commission administers Public
Law 89–777, 46 U.S.C. 44101 et seq., to
ensure PVOs satisfy the financial
responsibility requirements related to
nonperformance of transportation and
death or injury to passengers. The
Commission set forth the procedures for
PVOs to establish their financial
responsibility in 46 CFR part 540.
Pursuant to the Commission’s
regulations, PVOs must file with the
Commission evidence of financial
responsibility for nonperformance of
transportation in the form and amount
described in the regulations. The
Commission’s regulations at 46 CFR
540.5 provides that the amount of
coverage generally required shall be in
an amount determined by the
Commission to be no less than 110
percent of the unearned passenger
revenue (UPR) of the applicant on the
date within the two fiscal years
immediately prior to the filing of the
application which reflects the greatest
amount of unearned passenger revenue.
The regulation, however, also
provides that the Commission may, for
good cause shown, consider a time
period other than the previous twofiscal-year requirement or other
methods acceptable to the Commission
to determine the amount of coverage
required. The Commission’s regulations
at 46 CFR 540.9(l) further allow smaller
PVOs 1 to submit a request to substitute
alternative forms of financial protection
to evidence the financial responsibility
as otherwise provided in the
regulations.
The Commission believes the sudden
suspension of most cruise transportation
due to COVID–19 has likely
significantly reduced some PVOs’
current UPR, leading to substantial
disparity between current UPR and the
generally required coverage amount
under 46 CFR 540.5. This disparity
could result in unnecessarily high
premiums and required collateral for
PVOs to maintain their required
financial instruments. The Commission
believes that COVID–19’s
unprecedented effects on the cruise
1 Only PVOs whose UPR at no time during the
two immediately prior fiscal years has exceeded
150% of the required cap may request alternative
forms of financial responsibility under § 540.9(l).
E:\FR\FM\14AUR1.SGM
14AUR1
Federal Register / Vol. 85, No. 158 / Friday, August 14, 2020 / Rules and Regulations
industry constitute good cause under 46
CFR 540.5 and 46 CFR 540.9(l) for the
Commission to consider alternative
forms of financial protection using a
shorter period to determine the amount
of PVOs’ financial responsibility.
PVOs eligible under 46 CFR 540.9(l)
(i.e., those whose UPR at no time during
the two immediately prior fiscal years
has exceeded 150% of the cap (currently
$32 million)) are therefore encouraged
to submit a request to the Director of the
Bureau of Certification and Licensing
(BCL) to substitute alternative forms of
evidence of financial responsibility for
nonperformance with a lower coverage
amount based on UPR determined over
a shorter period of time. In accordance
with 46 CFR 540.9(l), such requests
should include copies of the requesting
PVO’s most recently available annual
and quarterly financial and income
statements, as well as any other
supporting documentation. See 46 CFR
540.9(l)(3). The Commission intends to
review such requests with greater
flexibility considering the
unprecedented economic effects of
COVID–19 to the cruise industry.
In particular, the Commission will
look favorably on requests for
alternative forms of evidence of
financial responsibility that are based
upon 110% of the PVO’s previous
month’s UPR, provided that: (1) The
PVO agrees to comply with individual
reporting requirements imposed by the
Director of BCL regarding the
submission of satisfactory
documentation demonstrating the PVO’s
UPR on a monthly basis; 2 and (2) if the
PVO fails to comply with the
requirements and conditions of the
alternative form of evidence of financial
responsibility, the PVO will once again
be subject to the generally applicable
financial responsibility requirements
and coverage amounts under part 540.3
The Director of BCL is delegated the
authority to grant such requests.
Requests for other types of alternative
forms of evidence of financial
responsibility, other than those
described in 46 CFR 501.26(d),4 will
khammond on DSKJM1Z7X2PROD with RULES
2 In
accordance with § 540.9(l)(8), the
Commission or BCL may request additional
information from a PVO whose request under this
section has been granted. Under this authority, BCL
may establish individual reporting requirements for
each PVO whose request is granted in order to
monitor their UPR and ensure that the amount
covered by the financial instrument (or
instruments) remains adequate.
3 In addition, failure to comply with the
conditions of an approved request for an alternative
form of evidence of financial responsibility may
result in the suspension or revocation of the PVO’s
certificate under 46 CFR 540.26(b)(2) and (3).
4 The Director of BCL is delegated the authority
to grant requests to substitute alternative financial
responsibility under § 540.9(l) based upon existing
VerDate Sep<11>2014
16:38 Aug 13, 2020
Jkt 250001
continue to be reviewed by the
Commission.
The Commission will maintain this
policy as long as it determines that
COVID–19’s negative effects on the
cruise industry continue and may
maintain the policy after the expiration
of the CDC’s ‘‘No Sail Order’’ but in no
case shall this policy terminate prior to
the 1st of April 2021.
PVOs with any questions or concerns
are encouraged to contact the
Commission’s Bureau of Certification
and Licensing by email at bcl@fmc.gov
or phone at 202–523–5787.
III. Regulatory Analyses and Notices
Administrative Procedure Act
The Administrative Procedure Act
(APA) (5 U.S.C. 551 et seq.) excludes the
following types of rules from the noticeand-comment requirement:
Interpretative rules; general statements
of policy; rules of agency organization,
procedure, or practice; or when the
agency for good cause finds that notice
and public procedure are impracticable,
unnecessary, or contrary to public
interest. See 5 U.S.C. 553(b). This is a
general statement of policy that is
exempt from many of the procedural
rulemaking requirements of the APA,
including the requirements for prior
notice, an opportunity for comment, and
a delay between the issuance of a final
rule and its effective date.
49601
agency must certify that the rule will
not have a significant economic impact
on a substantial number of small
entities. 5 U.S.C. 604–605. As indicated
above, this policy statement is not
subject to the APA’s notice-andcomment requirements, and the
Commission is not required to either
prepare a regulatory flexibility analysis
or certify that the final rule would not
have a significant economic impact on
a substantial number of small entities.
Paperwork Reduction Act
The Paperwork Reduction Act of 1995
(44 U.S.C. 3501–3521) requires an
agency to seek and receive approval
from the Office of Management and
Budget (OMB) before collecting
information from the public. 44 U.S.C.
3507. The agency must submit
collections of information in rules to
OMB in conjunction with the
publication of the notice of proposed
rulemaking. 5 CFR 1320.11. This policy
statement, however, does not contain
any new collections of information, as
defined by 44 U.S.C. 3502(3) and 5 CFR
1320.3(c).
By the Commission.
Rachel Dickon,
Secretary.
[FR Doc. 2020–16965 Filed 8–13–20; 8:45 am]
BILLING CODE 6730–02–P
Congressional Review Act
DEPARTMENT OF THE INTERIOR
This policy statement is not a ‘‘major
rule’’ as defined by the Congressional
Review Act, codified at 5 U.S.C. 801 et
seq. The policy will not result in: (1) An
annual effect on the economy of
$100,000,000 or more; (2) a major
increase in costs or prices; or (3)
significant adverse effects on
competition, employment, investment,
productivity, innovation, or the ability
of United States-based companies to
compete with foreign-based companies.
5 U.S.C. 804(2).
Fish and Wildlife Service
Regulatory Flexibility Act
The Regulatory Flexibility Act
(codified as amended at 5 U.S.C. 601–
612) provides that whenever an agency
promulgates a final rule after being
required to publish a notice of proposed
rulemaking under the APA (5 U.S.C.
553), the agency must prepare and make
available a final regulatory flexibility
analysis describing the impact of the
rule on small entities or the head of the
protection available to purchases of passenger
vessel transportation by credit card by an amount
up to fifty (50) percent of the passenger vessel
operator’s highest two-year unearned passenger
revenues. See 46 CFR 501.26(d).
PO 00000
Frm 00013
Fmt 4700
Sfmt 4700
50 CFR Part 92
[Docket No. FWS–R7–MB–2020–0008;
FXMB12610700000–201–FF07M01000]
RIN 1018–BE24
Migratory Bird Subsistence Harvest in
Alaska; Region-Specific Regulations
Fish and Wildlife Service,
Interior.
ACTION: Affirmation of interim rule as
final rule.
AGENCY:
We, the U.S. Fish and
Wildlife Service, are adopting as a final
rule an interim rule that went into effect
on April 2, 2020, establishing migratory
bird subsistence harvest regulations in
Alaska for the 2020 season and beyond.
These regulations, which are subject to
annual review, allow for the
continuation of customary and
traditional subsistence uses of migratory
birds in Alaska and prescribe regional
information on when and where the
harvesting of birds may occur. For the
reasons given in the interim rule and in
this document, we are adopting the
SUMMARY:
E:\FR\FM\14AUR1.SGM
14AUR1
Agencies
[Federal Register Volume 85, Number 158 (Friday, August 14, 2020)]
[Rules and Regulations]
[Pages 49600-49601]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-16965]
=======================================================================
-----------------------------------------------------------------------
FEDERAL MARITIME COMMISSION
46 CFR Part 540
[Docket No. 20-13]
Policy Statement on Passenger Vessel Financial Responsbility
AGENCY: Federal Maritime Commission.
ACTION: Policy statement.
-----------------------------------------------------------------------
SUMMARY: The Federal Maritime Commission (Commission) is publishing
this policy statement in order to provide guidance on possible
regulatory relief with respect to COVID-19's unprecedented economic
effects to passenger vessel operators.
DATES: This policy statement is effective August 14, 2020.
FOR FURTHER INFORMATION CONTACT: Cindy Hennigan, Director, Bureau of
Certification and Licensing, Federal Maritime Commission, 800 North
Capitol Street NW, Room 1018, Washington, DC 20573; email: [email protected];
phone: 202-523-5787.
SUPPLEMENTARY INFORMATION:
I. Background
On March 14, 2020, the Centers for Disease Control and Prevention
(CDC) issued a ``No Sail Order and Suspension of Further Embarkation''
causing passenger vessel operators (PVOs) in the U.S. to cease all
operations. CDC later extended the term of the order, demonstrating the
uncertainty associated with this coronavirus pandemic (COVID-19).
On April 30, 2020, the Commission initiated Fact Finding 30 to
investigate COVID-19's impact on the cruise industry. The Commission's
Fact-Finding Officer has been meeting with PVOs, marine terminal
operators, and other stakeholders to understand COVID-19's effects on
the cruise industry.
To overcome the effects COVID-19 has had on our economy, on May 19,
2020, President Trump issued Executive Order 13924, Regulatory Relief
To Support Economic Recovery. President Trump declared that federal
agencies ``should address this economic emergency by rescinding,
modifying, waiving, or providing exemptions from regulations and other
requirements that may inhibit economic recovery, consistent with
applicable law and with protection of the public health and safety,
with national and homeland security, and with budgetary priorities and
operational feasibility.''
II. Policy Statement for 46 CFR Part 540 Passenger Vessel Financial
Responsibility
The Commission administers Public Law 89-777, 46 U.S.C. 44101 et
seq., to ensure PVOs satisfy the financial responsibility requirements
related to nonperformance of transportation and death or injury to
passengers. The Commission set forth the procedures for PVOs to
establish their financial responsibility in 46 CFR part 540.
Pursuant to the Commission's regulations, PVOs must file with the
Commission evidence of financial responsibility for nonperformance of
transportation in the form and amount described in the regulations. The
Commission's regulations at 46 CFR 540.5 provides that the amount of
coverage generally required shall be in an amount determined by the
Commission to be no less than 110 percent of the unearned passenger
revenue (UPR) of the applicant on the date within the two fiscal years
immediately prior to the filing of the application which reflects the
greatest amount of unearned passenger revenue.
The regulation, however, also provides that the Commission may, for
good cause shown, consider a time period other than the previous two-
fiscal-year requirement or other methods acceptable to the Commission
to determine the amount of coverage required. The Commission's
regulations at 46 CFR 540.9(l) further allow smaller PVOs \1\ to submit
a request to substitute alternative forms of financial protection to
evidence the financial responsibility as otherwise provided in the
regulations.
---------------------------------------------------------------------------
\1\ Only PVOs whose UPR at no time during the two immediately
prior fiscal years has exceeded 150% of the required cap may request
alternative forms of financial responsibility under Sec. 540.9(l).
---------------------------------------------------------------------------
The Commission believes the sudden suspension of most cruise
transportation due to COVID-19 has likely significantly reduced some
PVOs' current UPR, leading to substantial disparity between current UPR
and the generally required coverage amount under 46 CFR 540.5. This
disparity could result in unnecessarily high premiums and required
collateral for PVOs to maintain their required financial instruments.
The Commission believes that COVID-19's unprecedented effects on the
cruise
[[Page 49601]]
industry constitute good cause under 46 CFR 540.5 and 46 CFR 540.9(l)
for the Commission to consider alternative forms of financial
protection using a shorter period to determine the amount of PVOs'
financial responsibility.
PVOs eligible under 46 CFR 540.9(l) (i.e., those whose UPR at no
time during the two immediately prior fiscal years has exceeded 150% of
the cap (currently $32 million)) are therefore encouraged to submit a
request to the Director of the Bureau of Certification and Licensing
(BCL) to substitute alternative forms of evidence of financial
responsibility for nonperformance with a lower coverage amount based on
UPR determined over a shorter period of time. In accordance with 46 CFR
540.9(l), such requests should include copies of the requesting PVO's
most recently available annual and quarterly financial and income
statements, as well as any other supporting documentation. See 46 CFR
540.9(l)(3). The Commission intends to review such requests with
greater flexibility considering the unprecedented economic effects of
COVID-19 to the cruise industry.
In particular, the Commission will look favorably on requests for
alternative forms of evidence of financial responsibility that are
based upon 110% of the PVO's previous month's UPR, provided that: (1)
The PVO agrees to comply with individual reporting requirements imposed
by the Director of BCL regarding the submission of satisfactory
documentation demonstrating the PVO's UPR on a monthly basis; \2\ and
(2) if the PVO fails to comply with the requirements and conditions of
the alternative form of evidence of financial responsibility, the PVO
will once again be subject to the generally applicable financial
responsibility requirements and coverage amounts under part 540.\3\ The
Director of BCL is delegated the authority to grant such requests.
Requests for other types of alternative forms of evidence of financial
responsibility, other than those described in 46 CFR 501.26(d),\4\ will
continue to be reviewed by the Commission.
---------------------------------------------------------------------------
\2\ In accordance with Sec. 540.9(l)(8), the Commission or BCL
may request additional information from a PVO whose request under
this section has been granted. Under this authority, BCL may
establish individual reporting requirements for each PVO whose
request is granted in order to monitor their UPR and ensure that the
amount covered by the financial instrument (or instruments) remains
adequate.
\3\ In addition, failure to comply with the conditions of an
approved request for an alternative form of evidence of financial
responsibility may result in the suspension or revocation of the
PVO's certificate under 46 CFR 540.26(b)(2) and (3).
\4\ The Director of BCL is delegated the authority to grant
requests to substitute alternative financial responsibility under
Sec. 540.9(l) based upon existing protection available to purchases
of passenger vessel transportation by credit card by an amount up to
fifty (50) percent of the passenger vessel operator's highest two-
year unearned passenger revenues. See 46 CFR 501.26(d).
---------------------------------------------------------------------------
The Commission will maintain this policy as long as it determines
that COVID-19's negative effects on the cruise industry continue and
may maintain the policy after the expiration of the CDC's ``No Sail
Order'' but in no case shall this policy terminate prior to the 1st of
April 2021.
PVOs with any questions or concerns are encouraged to contact the
Commission's Bureau of Certification and Licensing by email at
[email protected] or phone at 202-523-5787.
III. Regulatory Analyses and Notices
Administrative Procedure Act
The Administrative Procedure Act (APA) (5 U.S.C. 551 et seq.)
excludes the following types of rules from the notice-and-comment
requirement: Interpretative rules; general statements of policy; rules
of agency organization, procedure, or practice; or when the agency for
good cause finds that notice and public procedure are impracticable,
unnecessary, or contrary to public interest. See 5 U.S.C. 553(b). This
is a general statement of policy that is exempt from many of the
procedural rulemaking requirements of the APA, including the
requirements for prior notice, an opportunity for comment, and a delay
between the issuance of a final rule and its effective date.
Congressional Review Act
This policy statement is not a ``major rule'' as defined by the
Congressional Review Act, codified at 5 U.S.C. 801 et seq. The policy
will not result in: (1) An annual effect on the economy of $100,000,000
or more; (2) a major increase in costs or prices; or (3) significant
adverse effects on competition, employment, investment, productivity,
innovation, or the ability of United States-based companies to compete
with foreign-based companies. 5 U.S.C. 804(2).
Regulatory Flexibility Act
The Regulatory Flexibility Act (codified as amended at 5 U.S.C.
601-612) provides that whenever an agency promulgates a final rule
after being required to publish a notice of proposed rulemaking under
the APA (5 U.S.C. 553), the agency must prepare and make available a
final regulatory flexibility analysis describing the impact of the rule
on small entities or the head of the agency must certify that the rule
will not have a significant economic impact on a substantial number of
small entities. 5 U.S.C. 604-605. As indicated above, this policy
statement is not subject to the APA's notice-and-comment requirements,
and the Commission is not required to either prepare a regulatory
flexibility analysis or certify that the final rule would not have a
significant economic impact on a substantial number of small entities.
Paperwork Reduction Act
The Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3521) requires
an agency to seek and receive approval from the Office of Management
and Budget (OMB) before collecting information from the public. 44
U.S.C. 3507. The agency must submit collections of information in rules
to OMB in conjunction with the publication of the notice of proposed
rulemaking. 5 CFR 1320.11. This policy statement, however, does not
contain any new collections of information, as defined by 44 U.S.C.
3502(3) and 5 CFR 1320.3(c).
By the Commission.
Rachel Dickon,
Secretary.
[FR Doc. 2020-16965 Filed 8-13-20; 8:45 am]
BILLING CODE 6730-02-P