46 CFR Part 401 - GREAT LAKES PILOTAGE REGULATIONS

In accordance with the Great Lakes Pilotage Act of 1960, the Coast Guard is establishing new base pilotage rates and surcharges for the 2018 shipping season. Additionally, the Coast Guard is making several changes to the Great Lakes pilotage ratemaking methodology. These additional changes include creating clear delineation between the Coast Guard's annual rate adjustments and the Coast Guard's requirement to conduct a full ratemaking every 5 years; the adoption of a revised compensation benchmark; reorganization of the text regarding the staffing model for calculating the number of pilots needed; and certain editorial changes.

In accordance with the Great Lakes Pilotage Act of 1960, the Coast Guard proposes new base pilotage rates and surcharges for the 2018 shipping season. Additionally, the Coast Guard is proposing several changes to the Great Lakes pilotage ratemaking methodology. These additional proposed changes include creating clear delineation between the Coast Guard's annual rate adjustments and the Coast Guard's requirement to conduct a full ratemaking every five years; the adoption of a revised compensation benchmark; reorganization of the text regarding the staffing model for calculating the number of pilots needed; and certain editorial changes.

In this final rule, the Coast Guard is setting new rates for the 2017 shipping season for pilotage services on the Great Lakes. The Coast Guard is also updating its methodology for setting these rates. These updates to the methodology will incorporate the income generated from weighting factors into the ratemaking methodology used to set rates in this and future rulemakings. The Coast Guard believes that the new rates will continue to encourage pilot retention, ensure safe, efficient, and reliable pilotage services on the Great Lakes, and provide adequate funds to upgrade and maintain infrastructure.

The Coast Guard is adding an additional 30 days to the comment period on the supplemental notice of proposed rulemaking for “Great Lakes Pilotage Rates—2017 Annual Review” published in the Federal Register on April 5, 2017. We are extending the comment period to allow the public more time to comment on the proposed rulemaking. The comment period is now open through June 5, 2017.

The Coast Guard proposes to modify its calculations for hourly pilotage rates on the Great Lakes by accounting for the “weighting factor,” which is a multiplier that can increase the pilotage costs for larger vessels traversing areas in the Great Lakes by a factor of up to 1.45. While the weighting factor has existed for decades, it has never been included in any of the previous ratemaking calculations. We propose to add steps to our rate-setting methodology to adjust hourly rates downwards by an amount equal to the average weighting factor, so that when the weighting factor is applied, the cost to the shippers and the corresponding revenue generated for the pilot associations will adjust to what was originally intended. We note that until a final rule is produced, the 2016 rates will stay in effect, even if a final rule is not published by the start of the 2017 season.

The Coast Guard proposes new base pilotage rates and surcharges using the methodology instituted in 2016. The changes would take effect 30 days after publication of a final rule. Rates for pilotage services on the Great Lakes were last revised in March 2016 and, by law, must be reviewed annually.

The Coast Guard revises its Great Lakes pilotage ratemaking methodology, adjusts annual pilotage rates based on the new methodology, and authorizes a temporary surcharge to hire additional pilots and to pay for necessary training for new and current pilots. Rates for pilotage services on the Great Lakes were last revised in February 2015 and by law must be reviewed annually, with any adjustments to take effect by March 1 of the year for which new rates are established. The Coast Guard intends for the methodology changes to be understandable and transparent, and to encourage investment in pilots, infrastructure, and training while helping ensure safe, efficient, and reliable service on the Great Lakes. Without the updates to this methodology and enforcement of these rates, the Coast Guard believes the pilot associations will not be able to recruit experienced mariners, retain current pilots, or maintain and upgrade association infrastructure. Without sufficient registered pilots, current law will prevent international vessels from transiting the Great Lakes. This rulemaking promotes the Coast Guard's maritime safety and stewardship (environmental protection) missions by promoting safe shipping on the Great Lakes.

The Coast Guard is extending, for 30 days, the period for submitting public comments on the notice of proposed rulemaking (NPRM). The extension responds to a request made by several members of the public.

The Coast Guard proposes revisions to the annual ratemaking methodology (“procedural changes”) and several Great Lakes pilotage regulations, and proposes new base pilotage rates and surcharges (“rate changes”), using that proposed revised methodology. The changes would take effect 30 days after publication of a final rule. Rates for pilotage services on the Great Lakes were last revised in February 2015 and by law must be reviewed annually. The Coast Guard intends for the proposed revised methodology to be understandable and transparent, and to encourage investment in pilots, infrastructure, and training while helping ensure safe, efficient, and reliable service on the Great Lakes. In addition, the Coast Guard announces a public meeting on September 17, 2015, at which the public may ask questions about the proposals and comment on them. This rulemaking promotes the Coast Guard's maritime safety and stewardship (environmental protection) missions by promoting safe shipping on the Great Lakes.

The Coast Guard is advancing the effective date for the 2015 final rule which published on February 26, 2015, adjusting rates for pilotage services on the Great Lakes in accordance with a full ratemaking procedure. The rate adjustments made by the February 2015 final rule are unchanged, but instead of taking effect on August 1, 2015, the rates will take effect June 2, 2015. This rulemaking rule promotes the Coast Guard's strategic goal of maritime safety.

The Coast Guard is adjusting rates for pilotage services on the Great Lakes, which were last amended in March 2014. The adjustments establish new base rates made in accordance with a full ratemaking procedure. Additionally, the Coast Guard exercises the discretion provided by Step 7 of the Appendix A methodology. The result is an upward adjustment to close the gap between revenues projected by this rulemaking and those collected by the pilot associations. Our proposed rates planned to maintain parity with the Canadian Great Lakes Pilotage Authority. While this continues to be our goal, we have since discovered a more significant challenge demonstrated by the recently completed revenue audits. This is a more pressing concern for the operation of safe, efficient, and reliable pilotage service on the Great Lakes than maintaining parity because it demonstrates that the pilot associations are unable to properly fund their operations. Also, we are implementing temporary surcharges to accelerate recoupment of necessary and reasonable training and investment costs for the pilot associations. This final rule promotes the Coast Guard's strategic goal of maritime safety.

The Coast Guard is extending the comment period for the notice of proposed rulemaking (NPRM) entitled “Great Lakes Pilotage Rates—2015 Annual Review and Adjustment,” published on September 4, 2014, for 30 days. We have decided to extend the comment period as we have received new financial data that could affect the discretion provided by Step 7 of the Appendix A methodology and the final rate.

The Coast Guard proposes rate adjustments for pilotage services on the Great Lakes, last amended in March 2014. The proposed adjustments would establish new base rates made in accordance with a full ratemaking procedure. Additionally, the Coast Guard proposes to exercise the discretion provided by Step 7 of the Appendix A methodology. The result is an upward adjustment to match the rate increase of the Canadian Great Lakes Pilotage Authority. We also propose temporary surcharges to accelerate recoupment of necessary and reasonable training costs for the pilot associations. This notice of proposed rulemaking promotes the Coast Guard's strategic goal of maritime safety.

The Coast Guard is adjusting Great Lakes pilotage rates that were last amended in February 2013. The adjustments establish new base rates, and are made in accordance with a full ratemaking procedure. The Coast Guard is exercising its discretion to establish new base rates to more closely align with recent Canadian rate increases. The final rule also adjusts weighting factors used to determine rates for vessels of different size, adopts a new procedure for temporary surcharges, applies a temporary surcharge for one pilotage association, and allows pilotage associations to recoup the cost of dues paid to the American Pilots Association. This rulemaking promotes the Coast Guard's maritime safety mission.

The Coast Guard is issuing a final rule that makes non-substantive changes throughout titles 46 and 49 of the Code of Federal Regulations. The purpose of this rule is to make conforming amendments and technical corrections to Coast Guard shipping and transportation regulations. This rule will have no substantive effect on the regulated public. These changes are provided to coincide with the annual recodification of titles 46 and 49 on October 1, 2013.

The Coast Guard proposes rate adjustments for pilotage services on the Great Lakes, which were last amended in February 2013. The proposed adjustments would establish new base rates and are made in accordance with a full ratemaking procedure. The proposed update reflects the Coast Guard exercising the discretion provided by Step 7 of the Appendix A methodology. The result is an upward adjustment to match the rate increase of the Canadian Great Lakes Pilotage Authority. We also propose adjusting weighting factors used to determine rates for vessels of different size, providing a procedure for temporary surcharges, and including dues paid to the American Pilots Association. This notice of proposed rulemaking promotes the Coast Guard's strategic goal of maritime safety.

The Coast Guard is adjusting the rates for pilotage services on the Great Lakes, which were last amended in February 2012. The adjustments establish new base rates and are made in accordance with a full ratemaking procedure. This rulemaking promotes the Coast Guard's maritime safety mission.

This final rule makes non-substantive changes throughout Titles 46 and 49 of the Code of Federal Regulations. The purpose of this rule is to make conforming amendments and technical corrections to Coast Guard shipping and transportation regulations. This rule will have no substantive effect on the regulated public. These changes are provided to coincide with the annual recodification of Titles 46 and 49 on October 1, 2012.

The Coast Guard published a Notice of proposed rulemaking (NPRM) in the Federal Register on August 1, 2012 (77 FR 45539) proposing rate adjustments for pilotage services on the Great Lakes. The charge rate, as listed in § 401.407, Area 5 (Designated Waters) of that NPRM, is incorrect.

The Coast Guard proposes rate adjustments for pilotage services on the Great Lakes, which were last amended in February 2012. The proposed adjustments would establish new base rates and are made in accordance with a required full ratemaking procedure. The proposed update reflects changes in benchmark contractual wages and benefits and an adjustment for inflation. This rulemaking promotes the Coast Guard's strategic goal of maritime safety.