Notice2023-15507
Solicitation of Application for the Award of One Tanker Security Program Operating Agreement
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
July 25, 2023
Issuing agencies
Transportation DepartmentMaritime Administration
Abstract
The Maritime Administration (MARAD) requests applications from eligible candidates for one TSP operating agreement. The FY21 NDAA authorized the Secretary of Transportation to establish a fleet of active, commercially viable, militarily useful, privately owned product tank vessels of the United States. The fleet will meet national defense and other security requirements and maintain a United States presence in international commercial shipping. The FY22 NDAA made minor adjustments related to the participation of long-term charters in the TSP. This request for applications provides, among other things, application criteria and a deadline for submitting applications for the enrollment of one vessel in the TSP.
Full Text
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<title>Federal Register, Volume 88 Issue 141 (Tuesday, July 25, 2023)</title>
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[Federal Register Volume 88, Number 141 (Tuesday, July 25, 2023)]
[Notices]
[Pages 47942-47943]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-15507]
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DEPARTMENT OF TRANSPORTATION
Maritime Administration
Solicitation of Application for the Award of One Tanker Security
Program Operating Agreement
AGENCY: Maritime Administration, Department of Transportation.
ACTION: Notice of application period for the Tanker Security Program
(TSP).
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SUMMARY: The Maritime Administration (MARAD) requests applications from
eligible candidates for one TSP operating agreement. The FY21 NDAA
authorized the Secretary of Transportation to establish a fleet of
active, commercially viable, militarily useful, privately owned product
tank vessels of the United States. The fleet will meet national defense
and other security requirements and maintain a United States presence
in international commercial shipping. The FY22 NDAA made minor
adjustments related to the participation of long-term charters in the
TSP. This request for applications provides, among other things,
application criteria and a deadline for submitting applications for the
enrollment of one vessel in the TSP.
DATES: Applications for enrollment must be received no later than
August 14, 2023. Applications should be submitted to the address listed
in the ADDRESSES section below.
ADDRESSES: Applications may be submitted electronically to
<a href="/cdn-cgi/l/email-protection#b1c2d4d0ddd8d7c5c2c4c1c1dec3c5f1d5dec59fd6dec7"><span class="__cf_email__" data-cfemail="d0a3b5b1bcb9b6a4a3a5a0a0bfa2a490b4bfa4feb7bfa6">[email protected]</span></a> or in hard copy to the Tanker Security Program,
Maritime Administration, U.S. Department of Transportation, 1200 New
Jersey Avenue SE, Washington, DC 20590. Application forms are available
upon request or may be downloaded from MARAD's website.
FOR FURTHER INFORMATION CONTACT: David Hatcher, Director, Office of
Sealift Support, Maritime Administration, Telephone (202) 366-0688. For
legal questions, call Joseph Click, Office of Chief Counsel, Division
of Maritime Programs, Maritime Administration, (202) 366-5882.
SUPPLEMENTARY INFORMATION: Section 53402(a) of title 46, United States
Code, requires that the Secretary of Transportation (Secretary), in
consultation with the Secretary of Defense (SecDef), establish a fleet
of active, commercially viable, militarily useful, privately-owned
product tank vessels to meet national defense and other security
requirements. The TSP will provide a stipend to tanker operators of
U.S.-flagged vessels that meet certain qualifications.
Congress appropriated $60,000,000 for the TSP in the Consolidated
Appropriations Act of 2022, Public Law 117-269, to remain available
until expended. Authorized payments to participating operators are
limited to $6 million per ship, per fiscal year and are subject to
annual appropriations. Participating operators will be required to make
their commercial transportation resources available upon request of the
SecDef during times of war or national emergency.
Application Criteria
Section 53403(b)(2)(A) of title 46, United States Code, and MARAD's
implementing regulation at 46 CFR 294.9, direct the Secretary in
consultation with the SecDef to consider applicant vessel
qualifications and give priority to applications based on the following
criteria:
(1) Vessel capabilities, as established by SecDef;
(2) Applicant's record of vessel ownership and operation of tanker
vessels; and
(3) Applicant's citizenship, with preference for section 50501
Citizens.
Vessel Requirements
Acceptable vessels for a TSP Operating Agreement must meet the
requirements of 46 U.S.C. 53402(b) and 46 CFR 294.9. The Commander,
USTRANSCOM, has provided vessel suitability standards for eligible TSP
vessels for use during the application selection process. The following
suitability standards, consistent with the requirements of 46 U.S.C.
53402(b)(5), will apply to vessel applications:
<bullet> Medium Range (MR) tankers between 30,000-60,000 deadweight
tons, with fuel cargo capacity of 230,000 barrels or greater.
<bullet> Deck space and size to accept installation of
Consolidation (CONSOL) stations, two on each side for a total of four
stations.
<bullet> Ability to accommodate up to an additional 12 crew for
CONSOL, security, and communication crew augmentation.
<bullet> Communication facilities capable of integrating secure
communications equipment.
<bullet> Does not engage in commerce or acquire any supplies or
services if any proclamation, Executive order, or statute administered
by Office of Foreign Assets Control (OFAC), or if OFAC's regulations at
31 CFR chapter V, would prohibit such a transaction by a person subject
to the jurisdiction of the United States, except as authorized by the
OFAC in the Department of the Treasury.
<bullet> Operate in the Indo-Pacific region.
<bullet> Maximum draft of no more than 44 feet. Preference will be
given to vessels that can transport the most fuel at the shallowest
draft.
<bullet> Sustained service speed of at least 14 knots, with higher
speeds preferred.
<bullet> Carry only clean refined products.
<bullet> Double-hulled and capable of carrying more than two
separated grades of refined petroleum products with double valve
protection between tanks.
National Security Requirements
The applicant chosen to receive a TSP Operating Agreement will be
required to enter into an Emergency Preparedness Agreement (EPA) under
46 U.S.C. 53407, or such other agreement as may be approved by the
Secretaries. The current EPA approved by the Secretary and SecDef is
the Voluntary Tanker Agreement (VTA), publicly available for review at
87 FR 67119 (November 7, 2022).
Documentation
A vessel chosen to receive the TSP Operating Agreement must be
documented as a U.S.-flag vessel under 46 U.S.C. chapter 121 to operate
under the Operating Agreement. An applicant proposing a vessel
registered under the laws of a foreign country at the time of
application must demonstrate the vessel owner's intent to have the
vessel documented under United States law and must demonstrate that the
vessel is U.S. registered by the time the applicant enters into a TSP
Operating Agreement for the vessel. Proof of U.S. Coast Guard vessel
documentation and inspection and all relevant charter and management
agreements for a chosen vessel must be approved by MARAD before the
vessel will be eligible to operate under a TSP Operating Agreement and
receive TSP payments.
Vessel Operation
A vessel selected for award of a TSP Operating Agreement must be
operated in foreign commerce, in mixed foreign commerce and domestic
trade of the United States permitted under a registry
[[Page 47943]]
endorsement issued under 46 U.S.C. 12111, or between U.S. ports and
those points identified in 46 U.S.C. 55101(b), or in foreign-to-foreign
commerce, and must not otherwise operate in the coastwise trade of the
United States. Further, in accordance with the FY22 NDAA, no vessel may
operate under a TSP Operating Agreement while it is also operating
under charter to the United States Government for a period that,
together with options, exceeds 180 continuous days.
Protection of Confidential Commercial or Financial Information
If the application includes information that the applicant
considers to be a trade secret or confidential commercial or financial
information, the applicant should do the following: (1) Note on the
front cover that the submission ``Contains Confidential Commercial or
Financial Information (CCFI)''; (2) mark each affected page ``CCFI'';
and (3) highlight or otherwise denote the CCFI portions. MARAD will
protect such information from disclosure to the extent allowed under
applicable law. In the event MARAD receives a Freedom of Information
Act (FOIA) request for the information, procedures described in the
Department's FOIA regulation at 49 CFR 7.29 will be followed. Only
information that is ultimately determined to be confidential under that
procedure will be exempt from disclosure under FOIA.
Award of Operating Agreements
MARAD will make every effort to expedite the review of applications
and an award of a TSP Operating Agreement. MARAD, however, does not
guarantee the award of a TSP Operating Agreement in response to
applications submitted under this Notice. In the event that no awards
are made, or an application is not selected for an award, the applicant
will be provided with a written reason why the application was denied.
(Authority: 46 U.S.C. chapter 534, 49 CFR 1.92 and 1.93, 46 CFR 294)
By order of the Maritime Administrator.
T. Mitchell Hudson, Jr.,
Secretary, Maritime Administration.
[FR Doc. 2023-15507 Filed 7-24-23; 8:45 am]
BILLING CODE 4910-81-P
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This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.