Rule2025-12092
Rescinding Regulations Regarding Priority and Allocation Rules and Port Utilization
Primary source
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Published
July 1, 2025
Effective
July 1, 2025
Issuing agencies
Transportation DepartmentMaritime Administration
Abstract
MARAD is rescinding four obsolete parts in its regulations pertaining to procedures for assigning priority use of commercial shipping services and port facilities, vessel allocation services, and port utilization under Title I of the Defense Production Act (DFA) of 1950. On October 1, 2012, the Department of Transportation (DOT), Office of the Secretary (OST) established the Department's Transportation Priorities and Allocation System (TPAS) in 49 Code of Federal Regulations (CFR) part 33, which replaces the subject regulations in 46 CFR parts 340 and 345-347 regarding priority use and allocation of shipping services, restrictions on port utilization transfer or changes, the standard form of service agreements for ports, and the standard form of marine terminal contracts. Rescinding these regulations will improve clarity with respect to the implementation and administration of TPAS and recognize the centralization of TPAS within DOT its administration by OST.
Full Text
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<title>Federal Register, Volume 90 Issue 124 (Tuesday, July 1, 2025)</title>
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[Federal Register Volume 90, Number 124 (Tuesday, July 1, 2025)]
[Rules and Regulations]
[Pages 28029-28032]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-12092]
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DEPARTMENT OF TRANSPORTATION
Maritime Administration
46 CFR Parts 340, 345, 346, and 347
[Docket Number MARAD-2025-0088]
RIN 2133-AB88
Rescinding Regulations Regarding Priority and Allocation Rules
and Port Utilization
AGENCY: Maritime Administration (MARAD), Department of Transportation
(DOT)
ACTION: Final rule.
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SUMMARY: MARAD is rescinding four obsolete parts in its regulations
pertaining to procedures for assigning priority use of commercial
shipping services and port facilities, vessel allocation services, and
port utilization under Title I of the Defense Production Act (DFA) of
1950. On October 1, 2012, the Department of Transportation (DOT),
Office of the Secretary (OST) established the Department's
Transportation Priorities and Allocation System (TPAS) in 49 Code of
Federal Regulations (CFR) part 33, which replaces the subject
regulations in 46 CFR parts 340 and 345-347 regarding priority use and
allocation of shipping services, restrictions on port utilization
transfer or changes, the standard form of service agreements for ports,
and the standard form of marine terminal contracts. Rescinding these
regulations will improve clarity with respect to the implementation and
administration of TPAS and recognize the centralization of TPAS within
DOT its administration by OST.
DATES: This final rule is effective on July 1, 2025.
FOR FURTHER INFORMATION CONTACT: Mitch Hudson, Office of the Chief
Counsel, Division of Legislation and Regulation, (202) 366-9373 or via
email at <a href="/cdn-cgi/l/email-protection#44092d30272c6a0c3120372b2a04202b306a232b32"><span class="__cf_email__" data-cfemail="1954706d7a7137516c7d6a7677597d766d377e766f">[email protected]</span></a>. Persons who use a telecommunications
device for the deaf (TDD) may call the Federal Information Relay
Service (FIRS) at 1-800-877-8339 to contact the above individual during
business hours. The FIRS is available twenty-four hours a day, seven
days a week, to leave a message or question. You will receive a reply
during normal business hours. You may send mail to Department of
[[Page 28030]]
Transportation, Maritime Administration, Office of the Chief Counsel,
Division of Legislation and Regulations, W24-220, 1200 New Jersey
Avenue SE, Washington, DC 20590-0001.
SUPPLEMENTARY INFORMATION:
Electronic Access and Filing
An electronic copy of this document may also be downloaded by
accessing the Office of the Federal Register's home page at:
<a href="http://www.federalregister.gov">www.federalregister.gov</a>.
Background
Improvement of regulations is a continuous focus for DOT and MARAD.
For that reason, DOT/MARAD regularly and deliberately review their
rules in accordance with DOT Order 2100.6B, Policies and Procedures for
Rulemakings, Executive Order (E.O.) 12866, Regulatory Planning and
Review (Oct. 4, 1993), and section 610 of the Regulatory Flexibility
Act. That process is summarized in Appendix D of DOT's semi-annual
regulatory agenda. In addition, E.O. 14192, Unleashing Prosperity
Through Deregulation (Feb. 6, 2025), and E.O. 14219, Ensuring Lawful
Governance and Implementing the President's ``Department of Government
Efficiency'' Deregulatory Initiative (Feb. 19, 2025) directed agencies
to further scrutinize their regulations to reduce unnecessary costs,
clear barriers to emerging technology, and alleviate unnecessary
regulatory burdens. Accordingly, MARAD has identified its priority and
allocation rules, its port utilization regulations, the standard form
of service agreements for ports, and the standard form of marine
terminal contracts, for deletion.
Discussion
The Defense Production Act of 1950 (Defense Production Act) (50
U.S.C. App. 2061 et seq.) was enacted during the Korean War to ensure
the availability of resources to meet national security needs. The
Defense Production Act expedites and expands the supply of critical
resources from the U.S. industrial base to support the national
defense. While Defense Production Act provisions initially focused on
Department of Defense (DoD) acquisition needs, several significant
changes to the Defense Production Act's definition of national defense
have been added over time to expand the definition from military,
energy, and space activities, to include emergency preparedness
activities conducted pursuant to title VI of the Robert T. Stafford
Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.)
and the protection and restoration of critical infrastructure.
Section 101(a) of title I of the Defense Production Act (50 U.S.C.
App. 2071) authorizes the President to require performance under
contracts or orders necessary for the national defense to take priority
over performance under other contracts and orders, and to make
allocations as necessary to promote the national defense. E.O. 13603,
National Defense Resources Preparedness (Mar. 16, 2012), delegates the
President's authority under section 101 of the Defense Production Act
to the heads of several departments and agencies. The President has
delegated this authority to the Secretary of Transportation (Secretary)
with respect to all forms of civil transportation.\1\
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\1\ Section 201 of E.O. 13603.
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The Defense Production Act Reauthorization of 2009 (50 U.S.C.
Chapter 55, Pub. L. 111-67, September 30, 2009) required each federal
agency with delegated authority under section 101 of the Defense
Production Act to issue rules establishing standards and procedures by
which the priorities and allocations authority is used to promote the
national defense, under both emergency and non-emergency conditions.
Further, Congress directed that, to the extent practicable, the federal
agencies should work together to develop a consistent and unified
federal priorities and allocations system.
To meet this mandate, DOT worked in conjunction with the Department
of Agriculture, the Department of Commerce, DoD, the Department of
Energy, the Department of Health and Human Services, and the Department
of Homeland Security to develop common provisions that can be used by
each Department in its own regulation. The six regulations to be
promulgated by each Department with delegated Defense Production Act
title I authority comprise the Federal Priority and Allocation System
(FPAS) rules.
On October 1, 2012, DOT published a final rule clarifying the
priority and allocation authorities exercised by the Secretary and
establishing the administrative procedures by which the Secretary
exercises this authority. The rule complied with the requirement in the
Defense Production Act Reauthorization of 2009 (50 U.S.C. Chapter 55,
Pub. L. 111-67) to issue final rules establishing standards and
procedures by which the priority and allocation authority is used to
promote the national defense, under both emergency and nonemergency
conditions, and as part of a multi-agency effort forming the FPAS. As a
result of DOT adding Part 33 to Title 49 of the CFR, titled
Transportation Priorities and Allocation System (TPAS), all DOT
Operating Modes rely on TPAS in place of their individual regulations
pertaining to priorities and allocation. Accordingly, MARAD regulations
at 46 CFR parts 340, 345, 346, and 347, superseded by Part 33, are
obsolete and are now being deleted. The corresponding TPAS regulations
for each of those parts is provided in Table 1.
Table 1--Obsolete Title 46 Regulations and TPAS Corollaries
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Part 340 Priority Use and Allocation of Superseded by DOT TPAS
Shipping Services, Containers and implementing regulations at 49
Chassis, and Port Facilities and CFR Part 33 and accompanying
Services for National Security and change in related delegations
National Defense Related Operations. of authority.
Part 345 Restrictions Upon the Transfer Superseded by DOT TPAS
or Change in Use or in terms Governing implementing regulations at 49
Utilization of Port Facilities. CFR Part 33 and accompanying
change in related delegations
of authority.
Part 346 Federal Port Controllers...... Superseded by DOT TPAS
implementing regulations at 49
CFR Part 33 and accompanying
change in related delegations
of authority.
Part 347 Operating Contract............ Superseded by DOT TPAS
implementing regulations at 49
CFR Part 33 and accompanying
change in related delegations
of authority.
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[[Page 28031]]
Rulemaking Analysis and Notices
Administrative Procedure Act
MARAD is issuing this rule without prior notice and the opportunity
for public comment and the 30-day delayed effective date ordinarily
prescribed by the Administrative Procedure Act (APA). Pursuant to
section 553(b)(B) of the APA, general notice and the opportunity for
public comment are not required with respect to a rulemaking when an
``agency for good cause finds (and incorporates the finding and a brief
statement of reasons therefor in the rules issued) that notice and
public procedure thereon are impracticable, unnecessary, or contrary to
the public interest.''
The DPA Reauthorization Act of 2009 (Pub. L. 111-67) required DOT
to establish standards and procedures by which priorities and
allocations authority is used to promote the national defense under
both emergency and nonemergency conditions. DOT implemented the
requirements through a multi-agency effort forming TPAS and returning
all prior Operating Administration delegations of authority back to the
Office of the Secretary. The intent of this action is to remove
unnecessary and obsolete MARAD regulations which were superseded when
pursuant to DOT DPA authority, DOT promulgated the TPAS regulations
thereby subsuming any MARAD responsibility to regulate in this area.
DOT's administration of priority and allocation authorities is governed
by the TPAS regulations promulgated after consideration of public
comment on October 1, 2012.\2\ DOT has determined that it is therefore
unnecessary to seek prior notice and comment because MARAD does not
have authority to maintain TPAS regulations and is merely removing
obsolete regulations from the Code of Federal Regulations.
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\2\ See 77 FR 59793 (Oct. 1, 2012).
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Executive Orders 12866 and DOT Rulemaking Procedures
This rule is not a significant regulatory action under E.O. 12866
and DOT Order 2100.6B and, therefore, it was not reviewed by the Office
of Management and Budget.
Executive Order 14192 (Deregulation)
E.O. 14192 requires that for ``each new [E.O. 14192 regulatory
action] issued, at least ten prior regulations be identified for
elimination.'' Implementation guidance for E.O. 14192, issued by the
Office of Management and Budget (OMB) (Memorandum M-25-20, March 26,
2025), defines an E.O. 14192 deregulatory action as ``an action that
has been finalized and has total costs less than zero.'' This rule will
have total costs less than zero, and therefore is an E.O. 14192
deregulatory action.
Executive Order 13132 (Federalism)
MARAD analyzed this rulemaking in accordance with the principles
and criteria contained in Executive Order 13132 (``Federalism'') and
has determined that it has no substantial effect on the States, 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 on this rulemaking and
did not prepare a Federalism summary impact statement.
Executive Order 13175 (Consultation and Coordination With Indian Tribal
Governments)
This rulemaking will not 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.
Regulatory Flexibility Act
The Regulatory Flexibility Act of 1980 requires MARAD to assess
whether this rulemaking would have a significant economic impact on a
substantial number of small entities and, if so, to minimize any
adverse impact. The regulations have been rendered obsolete and are
therefore not used. Accordingly, the release of the regulations will
impose no impact. MARAD certifies that this rulemaking will not have a
significant economic impact on a substantial number of small entities.
Privacy Impact Assessment
Section 522(a)(5) of the Transportation, Treasury, Independent
Agencies, and General Government Appropriations Act, 2005 (5 U.S.C.
552a, Pub. L. 108-447, div. H, 118 Stat. 2809 at 3268) requires the
Department of Transportation and certain other federal agencies to
conduct a privacy impact assessment of each proposed rule that will
affect the privacy of individuals.
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 $206 million or more (as adjusted for inflation) in
any 1 year, and if so, to take steps to minimize these unfunded
mandates. This rulemaking will not impose unfunded mandates under the
Unfunded Mandates Reform Act of 1995. It will not result in costs of
$206 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.
Paperwork Reduction Act
Under the Paperwork Reduction Act of 1995 (PRA), a person is not
required to respond to a collection of information by a federal agency
unless the collection displays a valid OMB control number. This
rulemaking includes no new collection of information.
Congressional Review Act
The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the
Small Business Regulatory Enforcement Fairness Act of 1996, generally
provides that before a rule may take effect, the agency promulgating
the rule must submit a rule report, which includes a copy of the rule,
to each House of the Congress and to the Comptroller General of the
United States. DOT will submit a report containing this rule and other
required information to the U.S. Senate, the U.S. House of
Representatives, and the Comptroller General of the United States. This
rule does not constitute a major rule as defined in 5 U.S.C. 804(2).
List of Subjects
46 CFR Part 340
Harbors, Maritime carriers, National defense, Packaging and
containers.
46 CFR Part 345
Harbors, National defense.
46 CFR Part 346
Government contracts, Harbors, Intergovernmental relations,
National defense.
[[Page 28032]]
46 CFR Part 347
Governmental contracts, Harbors, National defense.
PARTS 340, 345, 346, AND 347--[REMOVED AND RESERVED]
0
For the reasons set forth in the preamble, under the authority of 49
U.S.C. 109, 49 CFR 1.81, MARAD amends 46 CFR chapter II, subchapter I-A
by removing and reserving part 340 and amends subchapter I-B by
removing and reserving parts 345, 346, and 347.
By order of the Maritime Administration.
T. Mitchell Hudson, Jr.,
Secretary, Maritime Administration.
[FR Doc. 2025-12092 Filed 6-27-25; 4:15 pm]
BILLING CODE 4910-81-P
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