SUPPLEMENTARY INFORMATION:

The Saint Lawrence Seaway Development Corporation (SLSDC) and the St. Lawrence Seaway Management Corporation (SLSMC) of Canada, under international agreement, jointly publish and presently administer the St. Lawrence Seaway Tariff of Tolls in their respective jurisdictions. (The Tariff is called the Schedule of Fees and Charges in Canada.) A Notice of Proposed Rulemaking was published on February 9, 2001 (66 FR 9752). Interested parties have been afforded an opportunity to participate in the making of the amendments applicable in the United States. No comments were received. The amendments are described in the following summary.

The Tariff sets forth the level of tolls assessed on all commodities and vessels transiting the facilities operated by the SLSDC and the SLSMC. The SLSDC is revising part 402 to reflect the fees and charges charged by the SLSMC in Canada starting in the 2001 navigation season, a change in the toll for pleasure vessels for both the Canadian and U.S. locks, and related editorial, format, and substantive changes. (Because of the number of edits and format changes, the entire text of part 402 is set out as an amendment below.) This final rule also includes the text of § 402.10, “Operational Surcharges after postponements”, which was inadvertently omitted from the Notice of Proposed Rulemaking. This section is applicable only in Canada. With the exception of the change for pleasure vessel tolls, the substantive changes affect the tolls for commercial vessels and are applicable only in Canada as the collection of the U.S. portion of tolls for commercial vessels is waived by law (33 U.S.C. 988a(a)).

The SLSDC is also increasing the toll for pleasure vessels charged by the SLSDC for transit through the U.S. locks, which the SLSMC is also doing for Canadian locks. Through agreement with the SLSMC, the SLSDC also is revising § 401.22, “Preclearance of vessels”, clarifying that certain non-commercial vessels are considered pleasure vessels for the purposes of tolls and making a conforming amendment to § 401.75, “Payment of tolls”, of the joint Seaway Regulations and Rules requiring that pleasure vessel tolls be paid “in U.S. funds or the pre-established equivalent in Canadian funds” at each U.S. lock, instead of at par. Also through agreement with the SLSMC, the SLSDC is revising § 401.2 to clarify the definition for “flashpoint”. Since only the four amendments concerning the SLSDC toll for pleasure vessels at U.S. locks are applicable in the United States, comments were invited on only these. Specifically, § 402.8, “Schedule of tolls”, is revised to increase the toll for pleasure vessels for transit through a U.S. lock from $10 to $20 in U.S. funds or $30 in Canadian funds, the current equivalent, instead of at par. Since approximately 97% of pleasure craft tolls are collected in Canadian funds, the SLSDC has been losing a substantial amount of revenue due to the high exchange rate. The SLSDC believes that discounting the Canadian funds at the locks on an ad hoc basis would not be practicable. Increasing the tolls at the SLSDC's two locks will offset the loss of revenue due to the exchange and be beneficial to SLSDC future funding requirements. Moreover, lock operations costs for pleasure vessel transits for 1999 has been estimated as $160,000, resulting in an approximate subsidy of $127,000 for these transits. The last toll increase for these vessels was in 1991 when the rate was raised from $5 to $10. The increase for an estimated 2,500 pleasure vessel transits will result in a toll revenue increase of approximately $97,000 in U.S. funds, lowering the effective subsidy of these transits to approximately $63,000. Section 401.22, “Preclearance of vessels”, is also revised by adding a new paragraph (c) clarifying that non-commercial vessels with a tonnage displacement of less than 317.5 tons are not eligible to apply for preclearance status, but are considered pleasure craft. The reason for this amendment is that associated costs for these vessels incurred by the SLSMC under their preclearance process is disproportionately larger than the amount of tolls these vessels would pay if precleared. Finally, the SLSDC and SLSMC are making a conforming amendment to paragraph (b) of § 401.75, “Payment of tolls”, of the joint Seaway Regulations and Rules, which concerns payment of pleasure vessel tolls. The provision is revised to say that these tolls are payable at each U.S. lock “in U.S. funds or the pre-established equivalent in Canadian funds” and references § 402.8, “The Schedule of tolls”, where the precise amounts are stated. This simplifies the SLSDC's ability to amend the tariff amounts each season, if necessary, to reflect changes in the exchange rate. Finally, § 401.75 ( printed page 15329) also is revised to state separately that, for Canadian locks, the tolls remain payable in Canadian or U.S. funds at par.

Also through agreement with the SLSMC, the SLSDC is revising § 401.2 to clarify the definition for “flashpoint”, stating that it means the “lowest temperature of a flammable liquid at which its vapor forms an ignitable mixture with air” as determined by the closed-cup method.

Regulatory Evaluation

This regulation involves a foreign affairs function of the United States and therefore Executive Order 12866 does not apply. This regulation has also been evaluated under the Department of Transportation's Regulatory Policies and Procedures and the regulation is not considered significant under those procedures and its economic impact is expected to be so minimal that a full economic evaluation is not warranted.

Regulatory Flexibility Act Determination

The Saint Lawrence Seaway Development Corporation certifies that this regulation will not have a significant economic impact on a substantial number of small entities. The St. Lawrence Seaway Tariff of Tolls primarily relates to commercial users of the Seaway, the vast majority of whom are foreign vessel operators. Therefore, any resulting costs will be borne mostly by foreign vessels.

Environmental Impact

This regulation does not require an environmental impact statement under the National Environmental Policy Act (49 U.S.C. 4321, et seq.) because it is not a major federal action significantly affecting the quality of human environment.

Federalism

The Corporation has analyzed this rule under the principles and criteria in Executive Order 13132, Dated August 4, 1999, and has determined that it will not have a substantial, direct effect on the States or on the distribution of power and responsibilities among various levels of government. The rule will not limit the policymaking discretion of the States. Nothing in it would directly preempt any State law or regulation. Because the rule will have no significant effect on State or local governments, no consultations with those governments on this rule were necessary.

Paperwork Reduction Act

This regulation has been analyzed under the Paperwork Reduction Act of 1995 and does not contain new or modified information collection requirements subject to the Office of Management and Budget review.

Accordingly, the Saint Lawrence Seaway Development Corporation amends 33 CFR chapter IV as follows:

1. The authority citation for subpart A of part 401 continues to read as follows:

Authority: 33 U.S.C. 983(a) and 984(a)(4), as amended; 49 CFR 1.52, unless otherwise noted.

2. Section 401.2 is amended by revising paragraph (b) to read as follows:

3. Section 401.22 is amended by adding a new paragraph (c) to read as follows:

4. Section 401.75 is amended by revising paragraph (b) to read as follows:

5. Part 402—Tariff of Tolls is revised to read as follows:

§ 402.9 § 402.10