Vol. 79 Friday, No. 192 October 3, 2014

Pages 59623–60056

OFFICE OF THE FEDERAL REGISTER

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Contents Federal Register Vol. 79, No. 192

Friday, October 3, 2014

Actuaries, Joint Board for Enrollment Commerce Department See Joint Board for Enrollment of Actuaries See Economic Analysis Bureau See Foreign-Trade Zones Board Agency for International Development See International Trade Administration NOTICES See National Institute of Standards and Technology Senior Executive Service Performance Review Board See National Oceanic and Atmospheric Administration Membership, 59739 See National Telecommunications and Information Administration Agriculture Department See Rural Business-Cooperative Service See Rural Housing Service Committee for Purchase From People Who Are Blind or See Rural Utilities Service Severely Disabled NOTICES NOTICES 2014 Farm Bill Implementation Listening Session – Rural Procurement List; Additions and Deletions, 59750–59751 Community College Coordinated Strategy; Correction, 59739 Commodity Futures Trading Commission Agency Information Collection Activities; Proposals, PROPOSED RULES Submissions, and Approvals, 59739–59740 Margin Requirements for Uncleared Swaps for Swap Dealers and Major Swap Participants, 59898–59936 Army Department See Engineers Corps Consumer Product Safety Commission Blind or Severely Disabled, Committee for Purchase From RULES People Who Are Safety Standard for Magnet Sets, 59962–59989 See Committee for Purchase From People Who Are Blind or Severely Disabled Defense Department See Engineers Corps Centers for Medicare & Medicaid Services NOTICES RULES Agency Information Collection Activities; Proposals, Medicare Programs: Submissions, and Approvals, 59751–59752 Hospital Inpatient Prospective Payment Systems for Arms Sales, 59752–59758 Acute Care Hospitals and the Long Term Care Manual for Courts-Martial: Hospital Prospective Payment System, etc.; Proposed Amendments; Meetings, 59938–59959 Correction, 59675–59692 Meetings: NOTICES Defense Business Board, 59758–59759 Agency Information Collection Activities; Proposals, Submissions, and Approvals, 59772–59774 Economic Analysis Bureau Children and Families Administration NOTICES NOTICES Meetings: Agency Information Collection Activities; Proposals, Bureau of Economic Analysis Advisory Committee, 59740 Submissions, and Approvals: Reunification Procedures for Unaccompanied Alien Education Department Children, 59774–59775 NOTICES Agency Information Collection Activities; Proposals, Coast Guard Submissions, and Approvals: RULES Early Childhood Longitudinal Study Kindergarten Class Safety Zones: of 2010–11 Spring Third-Grade National Collection, Navy Exercise, Delaware Bay and Atlantic Ocean, Cape etc.; Correction, 59760 May, NJ, 59650–59653 Health Education Assistance Loan Program: Lender’s Tennessee River between Mile 4.8 to 5.8, Ledbetter, KY, Application for Insurance Claim Form, etc., 59761 59648–59650 Progress in International Reading Literacy Study, etc., Three Rivers Towing Association Head of the Ohio 59761–59762 Regatta, Allegheny River Mile 0.0 to 3.3, Pittsburgh, Meetings: PA, 59647–59648 National Advisory Council on Indian Education, 59762– PROPOSED RULES 59763 Safety Zones: Chesapeake Bay, Cape Charles, VA, 59701–59703 NOTICES Energy Department Charter Renewals: See Federal Energy Regulatory Commission Cook Inlet Regional Citizens’ Advisory Council; NOTICES Recertification, 59783–59784 Solicitations for Advanced Nuclear Energy Projects, 59763

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Engineers Corps Federal Railroad Administration NOTICES NOTICES Environmental Impact Statement; Availabilty: Agency Information Collection Activities; Proposals, U.S. Route 460, Prince George County to Suffolk, VA, Submissions, and Approvals, 59891–59893 59759–59760 Federal Trade Commission Environmental Protection Agency NOTICES RULES Agency Information Collection Activities; Proposals, Air Quality State Implementation Plans; Approvals and Submissions, and Approvals, 59771–59772 Promulgations: Washington: General Regulations for Air Pollution Fish and Wildlife Service Sources, 59653–59674 RULES Identification of Nonattainment Classification and Endangered and Threatened Wildlife and Plants: Deadlines for Submission of State Implementation Western Distinct Population Segment of the Yellow-billed Plan: Cuckoo (Coccyzus americanus); Determination, Provisions for the 1997 Fine Particle (PM2.5) National 59992–60038 Ambient Air Quality Standard and 2006 PM2.5 NOTICES NAAQS; Correction, 59674–59675 Endangered Species; Recovery Permit Applications, 59861 PROPOSED RULES Air Quality State Implementation Plans; Approvals and Food and Drug Administration Promulgations: PROPOSED RULES Maryland; Redesignation Request and Associated Food Additive Petitions: Maintenance Plan for the Baltimore Nonattainment Casa de Mesquite, LLC, 59699 Area for the 1997 Annual Fine Particulate Matter NOTICES Standard, 59703–59717 Agency Information Collection Activities; Proposals, NOTICES Submissions, and Approvals: Adequacy Determinations: Electronic Records, Electronic Signatures, 59775–59776 Colorado; Lamar and Steamboat Springs PM10 Guidance: Maintenance Plans’ Motor Vehicle Emissions Budgets Food and Drug Administration Notification and Medical for Transportation Conformity Purposes, 59767 Device Reporting for Laboratory Developed Tests, Environmental Impact Statements; Availability, etc., 59767– 59779–59782 59768 Framework for Regulatory Oversight of Laboratory Guidance: Developed Tests, 59776–59779 Applying Quantitative Data to Develop Data-Derived Meetings: Extrapolation Factors for Interspecies and Anesthetic and Analgesic Drug Products Advisory Intraspecies Extrapolation, 59768 Committee, 59783 Pulmonary-Allergy Drugs Advisory Committee, 59782– Executive Office of the President 59783 See Presidential Documents Foreign-Trade Zones Board NOTICES Federal Aviation Administration Subzone Status; Approvals: RULES Southern Motion, Inc., Pontotoc and Baldwyn, MS, 59740 Airworthiness Directives: Airbus Airplanes, 59636–59639 Health and Human Services Department Bombardier, Inc. Airplanes, 59630–59643 See Centers for Medicare & Medicaid Services Lockheed Martin Corporation/Lockheed Martin See Children and Families Administration Aeronautics Company Airplanes, 59643–59645 See Food and Drug Administration The Boeing Company Airplanes, 59633–59635 See Inspector General Office, Health and Human Services Change of Controlling Agency for Restricted Areas: Department California, 59645–59646 NOTICES PROPOSED RULES Meetings: Airworthiness Directives: Secretary’s Advisory Committee on Human Research Bell Helicopter Textron Canada Limited, 59695–59697 Protections, 59772 Kaman Aerospace Corporation (Kaman) Helicopters, 59697–59699 Homeland Security Department See Coast Guard Federal Communications Commission NOTICES Housing and Urban Development Department Dormant Proceedings; Terminations, 59769–59770 RULES Panelist Information for Open Internet Roundtables, 59770 Federal Housing Administration; Section 232 Healthcare Facility Insurance Program: Federal Energy Regulatory Commission Submission of Operator Financial Reports in accordance NOTICES with HUD’s Uniform Financial Reporting Standards; Applications: Commencement of Compliance, 59646–59647 Pacific Gas and Electric Co., 59764–59765 NOTICES Village of Lyndonville Electrical Department, 59764 Federal Properties Suitable as Facilities to Assist the Combined Filings, 59765–59767 Homeless, 59784–59786

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Final Fair Market Rents, Fiscal Year 2015: National Oceanic and Atmospheric Administration Housing Choice Voucher Program and Moderate PROPOSED RULES Rehabilitation Single Room Occupancy Program, Fisheries of the Exclusive Economic Zone Off Alaska: 59786–59855 Establishing Transit Areas through Walrus Protection Statutorily Mandated Designation of Difficult Development Areas at Round Island and Cape Peirce, Northern Areas and Qualified Census Tracts for 2015, 59855– Bristol Bay, AK, 59733–59738 59861 NOTICES Meetings: Inspector General Office, Health and Human Services Gulf of Mexico Fishery Management Council, 59745– Department 59746 New England Fishery Management Council, 59742 PROPOSED RULES Pacific Fishery Management Council, 59741–59742 Medicare and State Health Care Programs: Western Pacific Fishery Management Council, 59742– Fraud and Abuse; Safe Harbors under the Anti-Kickback 59745 Statute, Civil Monetary Penalty Rules Regarding Beneficiary Inducements and Gainsharing; Revisions, National Park Service 59717–59733 NOTICES Interior Department Meetings: See Fish and Wildlife Service Big Cypress National Preserve Off-Road Vehicle Advisory See Land Management Bureau Committee; Cancellation, 59862 See National Park Service National Science Foundation International Trade Administration NOTICES NOTICES Meetings: Antidumping or Countervailing Duty Investigations, Orders, Advisory Committee for Education and Human or Reviews: Resources, 59866–59867 Certain Oil Country Tubular Goods from India, the Advisory Committee for Social, Behavioral and Economic Republic of Korea, Taiwan, the Republic of Turkey, Sciences, 59866 and the Socialist Republic of Vietnam, 59740–59741 National Telecommunications and Information International Trade Commission Administration NOTICES Meetings; Sunshine Act, 59862 NOTICES Joint Board for Enrollment of Actuaries Telecommunications Assessment of the Arctic Region, 59746–59750 NOTICES Requests for Nominations: Advisory Committee on Actuarial Examinations, 59862– Nuclear Regulatory Commission 59863 RULES List of Approved Spent Fuel Storage Casks: Labor Department Holtec International HI-STORM FLOOD/WIND System; See Occupational Safety and Health Administration Certificate of Compliance No. 1032, Amendment No. 1, 59623–59626 Land Management Bureau PROPOSED RULES NOTICES List of Approved Spent Fuel Storage Casks: Oil and Gase Lease Sales: Holtec International HI-STORM FLOOD/WIND System; National Petroleum Reserve—Alaska, 59861–59862 Certificate of Compliance No. 1032, Amendment No. 1, 59693–59695 Maritime Administration NOTICES NOTICES Agency Information Collection Activities; Proposals, Requests for Administrative Waivers of the Coastwise Trade Submissions, and Approvals, 59867 Laws: Atomic Safety and Licensing Board Reconstitutions: Vessel CIAO, 59893–59894 DTE Electric Co. (Fermi Nuclear Power Plant, Unit 2), 59867 National Aeronautics and Space Administration NOTICES Occupational Safety and Health Administration Meetings: NOTICES Aerospace Safety Advisory Panel, 59865–59866 Applications: National Credit Union Administration TUV SUD America, Inc.; Expansion of Recognition, RULES 59863–59865 Unfair or Deceptive Acts or Practices, 59627–59630 Meetings: Advisory Committee on Construction Safety and Health; National Institute of Standards and Technology Charter Renewal, 59865 NOTICES Agency Information Collection Activities; Proposals, Postal Regulatory Commission Submissions, and Approvals: NOTICES Summer High School Intern Program, 59741 New Postal Products, 59867–59868

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Presidential Documents The Forever Now: Contemporary Painting in an PROCLAMATIONS Atemporal World, 59889 Special Observances: V.S. Gaitonde: Painting as Process, Painting as Life, National Arts and Humanities Month (Proc. 9177), 59889–59890 60043–60044 Impositions of Sanctions under the Iran Sanctions Act and National Breast Cancer Awareness Month (Proc. 9178), Iran Freedom and Counter-Proliferation Act, 59890– 60045–60046 59891 National Cybersecurity Awareness Month (Proc. 9179), 60047–60048 Transportation Department National Disability Employment Awareness Month (Proc. See Federal Aviation Administration 9180), 60049–60050 See Federal Railroad Administration National Domestic Violence Awareness Month (Proc. See Maritime Administration 9181), 60051–60052 National Energy Action Month (Proc. 9182), 60053–60054 Treasury Department National Substance Abuse Prevention Month (Proc. PROPOSED RULES 9183), 60055–60056 Privacy Act; Implementation, 59699–59701 ADMINISTRATIVE ORDERS NOTICES Foreign Assistance Act of 1961; Delegation of Authority Agency Information Collection Activities; Proposals, (Memorandum of September 24, 2014), 60039–60041 Submissions, and Approvals, 59894

Railroad Retirement Board Veterans Affairs Department NOTICES NOTICES Agency Information Collection Activities; Proposals, Agency Information Collection Activities; Proposals, Submissions, and Approvals, 59868–59869 Submissions, and Approvals: Accelerated Payment Verification of Completion Letter, Rural Business-Cooperative Service 59895 NOTICES Contract for Training and Employment, 59894 2014 Farm Bill Implementation Listening Session – Rural Community College Coordinated Strategy; Correction, 59739 Separate Parts In This Issue Rural Housing Service NOTICES Part II 2014 Farm Bill Implementation Listening Session – Rural Commodity Futures Trading Commission, 59898–59936 Community College Coordinated Strategy; Correction, 59739 Part III Defense Department, 59938–59959 Rural Utilities Service NOTICES Part IV 2014 Farm Bill Implementation Listening Session – Rural Consumer Product Safety Commission, 59962–59989 Community College Coordinated Strategy; Correction, 59739 Part V Interior Department, Fish and Wildlife Service, 59992– Securities and Exchange Commission 60038 NOTICES Agency Information Collection Activities; Proposals, Part VI Submissions, and Approvals, 59869–59872 Presidential Documents, 60039–60056 Applications for Deregistration, 59873–59874 Self-Regulatory Organizations; Proposed Rule Changes: Financial Industry Regulatory Authority, Inc., 59876– 59889 Reader Aids NASDAQ OMX PHLX LLC, 59874–59876 Consult the Reader Aids section at the end of this page for Suspension of Trading Orders: phone numbers, online resources, finding aids, reminders, Nudg Media, Inc., 59889 and notice of recently enacted public laws. To subscribe to the Federal Register Table of Contents State Department LISTSERV electronic mailing list, go to http:// NOTICES listserv.access.gpo.gov and select Online mailing list Culturally Significant Objects Imported for Exhibition: archives, FEDREGTOC-L, Join or leave the list (or change Charles Ray: Sculpture, 1997–2014, 59890 settings); then follow the instructions.

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CFR PARTS AFFECTED IN THIS ISSUE

A cumulative list of the parts affected this month can be found in the Reader Aids section at the end of this issue.

3 CFR Proposed Rules: Proclamations: 679...... 59733 9177...... 60043 9178...... 60045 9179...... 60047 9180...... 60049 9181...... 60051 9182...... 60053 9183...... 60055 Administrative Orders: Memorandums: Memorandum of September 24, 2014 ...... 60041 10 CFR 72...... 59623 Proposed Rules: 72...... 59693 12 CFR 701...... 59627 706...... 59627 790...... 59627 14 CFR 39 (5 documents) ...... 59630, 59633, 59636, 59640, 59643 73...... 59645 Proposed Rules: 39 (2 documents) ...... 59695, 59697 16 CFR 1240...... 59962 17 CFR Proposed Rules: 23...... 59898 140...... 59898 21 CFR Proposed Rules: 179...... 59699 24 CFR 5...... 59646 232...... 59646 31 CFR Proposed Rules: 1...... 59699 33 CFR 100...... 59647 165 (2 documents) ...... 59648, 59650 Proposed Rules: 165...... 59701 40 CFR 52...... 59653 81...... 59674 Proposed Rules: 52...... 59703 81...... 59703 42 CFR 405...... 59675 412...... 59675 413...... 59675 415...... 59675 422...... 59675 424...... 59675 485...... 59675 488...... 59675 Proposed Rules: 1001...... 59717 1003...... 59717 50 CFR 17...... 59992

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Rules and Regulations Federal Register Vol. 79, No. 192

Friday, October 3, 2014

This section of the FEDERAL REGISTER information for this direct final rule. I. Procedural Background contains regulatory documents having general You may access publicly-available This direct final rule is limited to the applicability and legal effect, most of which information related to this direct final changes contained in Amendment No. 1 are keyed to and codified in the Code of rule by any of the following methods: Federal Regulations, which is published under to CoC No. 1032 and does not include 50 titles pursuant to 44 U.S.C. 1510. • Federal Rulemaking Web site: Go to other aspects of the Holtec International http://www.regulations.gov and search HI–STORM FW System design. The The Code of Federal Regulations is sold by for Docket ID NRC–2014–0102. Address NRC is using the ‘‘direct final rule the Superintendent of Documents. Prices of questions about NRC dockets to Carol procedure’’ to issue this amendment new books are listed in the first FEDERAL Gallagher; telephone: 301–287–3422; REGISTER issue of each week. because it represents a limited and email: [email protected]. For routine change to an existing CoC that technical questions, contact the is expected to be noncontroversial. FOR FURTHER NUCLEAR REGULATORY individual listed in the Adequate protection of public health COMMISSION INFORMATION CONTACT section of this and safety continues to be ensured. The document. amendment to the rule will become 10 CFR Part 72 • NRC’s Agencywide Documents effective on December 17, 2014. However, if the NRC receives significant [NRC–2014–0102] Access and Management System (ADAMS): You may obtain publicly- adverse comments on this direct final RIN 3150–AJ40 available documents online in the rule by November 3, 2014, then the NRC ADAMS Public Documents collection at will publish a document that withdraws List of Approved Spent Fuel Storage http://www.nrc.gov/reading-rm/ this action and will subsequently Casks: Holtec International HI–STORM adams.html. To begin the search, select address the comments received in a FLOOD/WIND System; Certificate of ‘‘ADAMS Public Documents’’ and then final rule as a response to the Compliance No. 1032, Amendment select ‘‘Begin Web-based ADAMS companion proposed rule published in No. 1 Search.’’ For problems with ADAMS, the proposed rule section of this issue AGENCY: Nuclear Regulatory please contact the NRC’s Public of the Federal Register. Absent Commission. Document Room (PDR) reference staff at significant modifications to the proposed revisions requiring ACTION: Direct final rule. 1–800–397–4209, 301–415–4737, or by email to [email protected]. For the republication, the NRC will not initiate SUMMARY: The U.S. Nuclear Regulatory convenience of the reader, instructions a second comment period on this action. Commission (NRC) is amending its about obtaining materials referenced in A significant adverse comment is a spent fuel storage regulations by this document are provided in the comment where the commenter revising the Holtec International HI– ‘‘Availability of Documents’’ section. explains why the rule would be STORM FLOOD/WIND (FW) System • NRC’s PDR: You may examine and inappropriate, including challenges to listing within the ‘‘List of approved purchase copies of public documents at the rule’s underlying premise or spent fuel storage casks’’ to include the NRC’s PDR, Room O–1F21, One approach, or would be ineffective or Amendment No. 1 to Certificate of White Flint North, 11555 Rockville unacceptable without a change. A Compliance (CoC) No. 1032. Pike, Rockville, Maryland 20852. comment is adverse and significant if: Amendment No. 1 adds a new heat load (1) The comment opposes the rule and pattern for the multipurpose canister FOR FURTHER INFORMATION CONTACT: provides a reason sufficient to require a (MPC)–37, broadens the back pressure Naiem S. Tanious, Office of Federal and substantive response in a notice-and- range for MPC–37 and MPC–89, and State Materials and Environmental comment process. For example, a updates certain definitions related to Management Programs, U.S. Nuclear substantive response is required when: fuel classification. Also, the amendment Regulatory Commission, Washington, (a) The comment causes the NRC staff makes a correction to the expiration DC 20555–0001; telephone: 301–415– to reevaluate (or reconsider) its position date of CoC No. 1032. 6103, email: [email protected]. or conduct additional analysis; DATES: The direct final rule is effective SUPPLEMENTARY INFORMATION: (b) The comment raises an issue December 17, 2014, unless significant serious enough to warrant a substantive adverse comments are received by Table of Contents response to clarify or complete the November 3, 2014. If the direct final I. Procedural Background record; or rule is withdrawn as a result of such II. Background (c) The comment raises a relevant comments, timely notice of the III. Discussion of Changes issue that was not previously addressed withdrawal will be published in the IV. Voluntary Consensus Standards or considered by the NRC staff. Federal Register. Comments received V. Agreement State Compatibility (2) The comment proposes a change after this date will be considered if it is VI. Plain Writing or an addition to the rule, and it is practical to do so, but the NRC staff is VII. Environmental Assessment and Finding apparent that the rule would be able to ensure consideration only for of No Significant Environmental Impact ineffective or unacceptable without VIII. Paperwork Reduction Act Statement comments received on or before this incorporation of the change or addition. date. IX. Regulatory Flexibility Certification X. Regulatory Analysis (3) The comment causes the NRC staff ADDRESSES: Please refer to Docket ID XI. Backfitting and Issue Finality to make a change (other than editorial) NRC–2014–0102 when contacting the XII. Congressional Review Act to the rule, CoC, or Technical NRC about the availability of XIII. Availability of Documents Specifications (TSs).

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For detailed instructions on filing As documented in the safety impractical. In this direct final rule, the comments, please see the companion evaluation report (SER), the NRC staff NRC will revise the Holtec International proposed rule published in the performed a detailed safety evaluation HI–STORM FW System design listed in Proposed Rule section of this issue of of the proposed CoC amendment 10 CFR 72.214. This action does not the Federal Register. request. There are no significant constitute the establishment of a changes to cask design requirements in standard that contains generally II. Background the proposed CoC amendment. applicable requirements. Section 218(a) of the Nuclear Waste Considering the specific design V. Agreement State Compatibility Policy Act (NWPA) of 1982, as requirements for each accident amended, requires that ‘‘the Secretary condition, the design of the cask would Under the ‘‘Policy Statement on [of the Department of Energy] shall prevent loss of containment, shielding, Adequacy and Compatibility of establish a demonstration program, in and criticality control. If there is no loss Agreement State Programs’’ approved by cooperation with the private sector, for of containment, shielding, or criticality the Commission on June 30, 1997, and the dry storage of spent nuclear fuel at control, the environmental impacts published in the Federal Register on civilian nuclear power reactor sites, would be insignificant. This amendment September 3, 1997 (62 FR 46517), this with the objective of establishing one or does not reflect a significant change in direct final rule is classified as more technologies that the [ Nuclear design or fabrication of the cask. In Compatibility Category ‘‘NRC.’’ Regulatory] Commission may, by rule, addition, any resulting occupational Compatibility is not required for approve for use at the sites of civilian exposure or offsite dose rates from the Category ‘‘NRC’’ regulations. The NRC nuclear power reactors without, to the implementation of Amendment No. 1 program elements in this category are maximum extent practicable, the need would remain well within the 10 CFR those that relate directly to areas of for additional site-specific approvals by part 20 limits. Therefore, the proposed regulation reserved to the NRC by the the Commission.’’ Section 133 of the CoC changes will not result in any Atomic Energy Act of 1954, as amended, NWPA states, in part, that ‘‘[the radiological or non-radiological or the provisions of 10 CFR. Although Commission] shall, by rule, establish environmental impacts that significantly an Agreement State may not adopt procedures for the licensing of any differ from the environmental impacts program elements reserved to the NRC, technology approved by the evaluated in the environmental it may wish to inform its licensees of Commission under Section 219(a) [sic: assessment supporting the July 18, 1990, certain requirements via a mechanism 218(a)] for use at the site of any civilian final rule. There will be no significant that is consistent with the particular nuclear power reactor.’’ change in the types or significant State’s administrative procedure laws, revisions in the amounts of any effluent To implement this mandate, the but does not confer regulatory authority released, no significant increase in the Commission approved dry storage of on the State. individual or cumulative radiation spent nuclear fuel in NRC-approved exposure, and no significant increase in VI. Plain Writing casks under a general license by the potential for or consequences from publishing a final rule which added a The Plain Writing Act of 2010 (Pub. radiological accidents. new subpart K in part 72 of Title 10 of L. 111–274) requires Federal agencies to This direct final rule revises the write documents in a clear, concise, the Code of Federal Regulations (10 Holtec International HI–STORM FW CFR) entitled, ‘‘General License for well-organized manner. The NRC has System listing in 10 CFR 72.214 by written this document to be consistent Storage of Spent Fuel at Power Reactor adding Amendment No. 1 to CoC No. Sites’’ (55 FR 29181; July 18, 1990). This with the Plain Writing Act as well as the 1032. The amendment consists of the Presidential Memorandum, ‘‘Plain rule also established a new subpart L in changes previously described, as set 10 CFR part 72 entitled, ‘‘Approval of Language in Government Writing,’’ forth in the revised CoC and TSs. The published June 10, 1998 (63 FR 31883). Spent Fuel Storage Casks,’’ which revised TSs are identified in the SER. contains procedures and criteria for The amended Holtec International VII. Environmental Assessment and obtaining NRC approval of spent fuel HI–STORM FW System design, when Finding of No Significant storage cask designs. The NRC used under the conditions specified in Environmental Impact subsequently issued a final rule on June the CoC, the TSs, and the NRC’s A. The Action 8, 2011 (76 FR 33121), that approved the regulations, will meet the requirements Holtec International HI–STORM FW of 10 CFR part 72; therefore, adequate The action is to amend 10 CFR 72.214 System design and added it to the list protection of public health and safety to revise the Holtec International HI– of NRC-approved cask designs in 10 will continue to be ensured. When this STORM FW System listing within the CFR 72.214 as CoC No. 1032. direct final rule becomes effective, ‘‘List of approved spent fuel storage casks’’ to include Amendment No. 1 to III. Discussion of Changes persons who hold a general license under 10 CFR 72.210 may load spent CoC No. 1032. Under the National By letter dated October 13, 2011, and nuclear fuel into the Holtec Environmental Policy Act of 1969, as as supplemented on May 23, 2012, International HI–STORM FW System amended, and the NRC’s regulations in January 24, April 18, and July 23, 2013, that meet the criteria of Amendment No. subpart A of 10 CFR part 51, Holtec International, Inc. (Holtec or the 1 to CoC No. 1032 under 10 CFR 72.212. ‘‘Environmental Protection Regulations applicant) submitted an application to for Domestic Licensing and Related the NRC to amend CoC No. 1032. The IV. Voluntary Consensus Standards Regulatory Functions,’’ the NRC has amendment adds a new heat load The National Technology Transfer determined that this rule, if adopted, pattern for the MPC–37, broadens the and Advancement Act of 1995 (Pub. L. would not be a major Federal action back pressure range for MPC–37 and 104–113) requires that Federal agencies significantly affecting the quality of the MPC–89, and updates certain use technical standards that are human environment and, therefore, an definitions related to fuel classification. developed or adopted by voluntary environmental impact statement is not Also, the amendment makes a consensus standards bodies unless the required. The NRC has made a finding correction to the expiration date of CoC use of such a standard is inconsistent of no significant impact on the basis of No. 1032. with applicable law or otherwise this environmental assessment.

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B. The Need for the Action implementation of Amendment No. 1 VIII. Paperwork Reduction Act This direct final rule amends the CoC would remain well within the 10 CFR Statement for the Holtec International HI–STORM part 20 limits. Therefore, the proposed This direct final rule does not contain FW System design within the list of CoC changes will not result in any any information collection requirements approved spent fuel storage casks that radiological or non-radiological and, therefore, is not subject to the power reactor licensees can use to store environmental impacts that significantly Paperwork Reduction Act of 1995 (44 spent fuel at reactor sites under a differ from the environmental impacts U.S.C. 3501 et seq.). Existing general license. Specifically, evaluated in the environmental requirements were approved by the Amendment No. 1 adds a new heat load assessment supporting the July 18, 1990, Office of Management and Budget pattern for the multipurpose canister final rule. There will be no significant (OMB), Approval Number 3150–0132. change in the types or significant MPC–37, broadens the back pressure Public Protection Notification range for MPC–37 and MPC–89, and revisions in the amounts of any effluent updates certain definitions related to released, no significant increase in the The NRC may not conduct or sponsor, fuel classification. Also, the amendment individual or cumulative radiation and a person is not required to respond makes a correction to the expiration exposure, and no significant increase in to a request for information or an date of CoC No. 1032. the potential for or consequences from information collection requirement radiological accidents. The staff unless the requesting document C. Environmental Impacts of the Action documented its safety findings in the displays a currently valid OMB control On July 18, 1990 (55 FR 29181), the SER for this amendment. number. NRC issued an amendment to 10 CFR D. Alternative to the Action IX. Regulatory Flexibility Certification part 72 to provide for the storage of Under the Regulatory Flexibility Act spent fuel under a general license in The alternative to this action is to of 1980 (5 U.S.C. 605(b)), the NRC cask designs approved by the NRC. The deny approval of Amendment No. 1 and certifies that this direct final rule will potential environmental impact of using end the direct final rule. Consequently, not, if issued, have a significant NRC-approved storage casks was any 10 CFR part 72 general licensee that economic impact on a substantial initially analyzed in the environmental seeks to load spent nuclear fuel into number of small entities. This direct assessment for the 1990 final rule. The Holtec International HI–STORM FW final rule affects only nuclear power environmental assessment for this System casks in accordance with the changes described in proposed plant licensees and Holtec. These Amendment No. 1 tiers off of the entities do not fall within the scope of environmental assessment for the July Amendment No. 1 would have to request an exemption from the the definition of small entities set forth 18, 1990, final rule. Tiering on past in the Regulatory Flexibility Act or the environmental assessments is a standard requirements of 10 CFR 72.212 and 72.214. Under this alternative, size standards established by the NRC process under the National (10 CFR 2.810). Environmental Policy Act. interested licensees would have to The Holtec International HI–STORM prepare, and the NRC would have to X. Regulatory Analysis FW System is designed to mitigate the review, a separate exemption request, thereby increasing the administrative On July 18, 1990 (55 FR 29181), the effects of design basis accidents that NRC issued an amendment to 10 CFR could occur during storage. Design basis burden upon the NRC and the costs to each licensee. Therefore, the part 72 to provide for the storage of accidents account for human-induced spent nuclear fuel under a general events and the most severe natural environmental impacts would be the same or less than the action. license in cask designs approved by the phenomena reported for the site and NRC. Any nuclear power reactor surrounding area. Postulated accidents E. Alternative Use of Resources licensee can use NRC-approved cask analyzed for an Independent Spent Fuel Approval of Amendment No. 1 to CoC designs to store spent nuclear fuel if it Storage Installation, the type of facility No. 1032 would result in no irreversible notifies the NRC in advance, the spent at which a holder of a power reactor commitments of resources. fuel is stored under the conditions operating license would store spent fuel specified in the cask’s CoC, and the in casks in accordance with 10 CFR part F. Agencies and Persons Contacted conditions of the general license are 72, include tornado winds and tornado- No agencies or persons outside the met. A list of NRC-approved cask generated missiles, a design basis NRC were contacted in connection with designs is contained in 10 CFR 72.214. earthquake, a design basis flood, an the preparation of this environmental On June 8, 2011 (76 FR 33121), the NRC accidental cask drop, lightning effects, assessment. issued an amendment to 10 CFR part 72 fire, explosions, and other incidents. that approved the Holtec International G. Finding of No Significant Impact Considering the specific design HI–STORM FW System design and requirements for each accident The environmental impacts of the added it to the list of NRC-approved condition, the design of the cask would action have been reviewed under the cask designs in 10 CFR 72.214 as CoC prevent loss of containment, shielding, requirements in 10 CFR part 51. Based No.1032. and criticality control. If there is no loss on the foregoing environmental On October 13, 2011, and as of containment, shielding, or criticality assessment, the NRC concludes that this supplemented on May 23, 2012, January control, the environmental impacts direct final rule entitled, ‘‘List of 24, 2013, April 18, 2013, and July 23, would be insignificant. This amendment Approved Spent Fuel Storage Casks: 2013, Holtec submitted an application does not reflect a significant change in Holtec International HI–STORM to amend the Holtec International HI– design or fabrication of the cask. There FLOOD/WIND System; Certificate of STORM FW System as described in are no significant changes to cask design Compliance No. 1032, Amendment No. Section III of this document. requirements in the proposed CoC 1,’’ will not have a significant effect on The alternative to this action is to amendment. In addition, because there the human environment. Therefore, the withhold approval of Amendment No. 1 are no significant design or process NRC has determined that an and to require any 10 CFR part 72 changes, any resulting occupational environmental impact statement is not general licensee seeking to load spent exposure or offsite dose rates from the necessary for this direct final rule. nuclear fuel into the Holtec

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International HI–STORM FW System represent an inconsistency with the following amendments to 10 CFR part under the changes described in issue finality provisions applicable to 72. Amendment No. 1 to request an combined licenses in 10 CFR part 52. exemption from the requirements of 10 Accordingly, no backfit analysis or PART 72—LICENSING CFR 72.212 and 72.214. Under this additional documentation addressing REQUIREMENTS FOR THE alternative, each interested 10 CFR part the issue finality criteria in 10 CFR part INDEPENDENT STORAGE OF SPENT 72 licensee would have to prepare, and 52 has been prepared by the staff. NUCLEAR FUEL, HIGH-LEVEL the NRC would have to review, a RADIOACTIVE WASTE, AND separate exemption request, thereby XII. Congressional Review Act REACTOR-RELATED GREATER THAN increasing the administrative burden This action is not a rule as defined in CLASS C WASTE upon the NRC and the costs to each the Congressional Review Act (5 U.S.C. licensee. 801–808). ■ 1. The authority citation for part 72 Approval of this direct final rule is continues to read as follows: XIII. Availability of Documents consistent with previous NRC actions. Authority: Atomic Energy Act secs. 51, 53, Further, as documented in the SER and The documents identified in the 57, 62, 63, 65, 69, 81, 161, 182, 183, 184, 186, the environmental assessment, the following table are available to 187, 189, 223, 234, 274 (42 U.S.C. 2071, 2073, direct final rule will have no adverse interested persons through one or more 2077, 2092, 2093, 2095, 2099, 2111, 2201, effect on public health and safety or the of the following methods, as indicated. 2232, 2233, 2234, 2236, 2237, 2273, 2282, environment. This direct final rule has 2021); Energy Reorganization Act secs. 201, no significant identifiable impact or 202, 206, 211 (42 U.S.C. 5841, 5842, 5846, Document ADAMS benefit on other Government agencies. Accession No. 5851); National Environmental Policy Act sec. 102 (42 U.S.C. 4332); Nuclear Waste Based on this regulatory analysis, the CoC No. 1032, Amend- ML14118A466. Policy Act secs. 131, 132, 133, 135, 137, 141, NRC concludes that the requirements of 148 (42 U.S.C. 10151, 10152, 10153, 10155, the direct final rule are commensurate ment No. 1. Technical Specifications, ML14118A468. 10157, 10161, 10168); sec. 1704, 112 Stat. with the NRC’s responsibilities for Appendix A. 2750 (44 U.S.C. 3504 note); Energy Policy Act public health and safety and the Technical Specifications, ML14118A467. of 2005, Pub. L. 109–58, 119 Stat. 549 (2005). common defense and security. No other Appendix B. Section 72.44(g) also issued under Nuclear available alternative is believed to be as Safety Evaluation Report ... ML14118A469. Waste Policy Act secs. 142(b) and 148(c), (d) satisfactory, and therefore, this action is Application ...... ML11290A019. (42 U.S.C. 10162(b), 10168(c), (d)). recommended. Application Supplemental ML12158A558. Section 72.46 also issued under Atomic May 23, 2012. Energy Act sec. 189 (42 U.S.C. 2239); Nuclear XI. Backfitting and Issue Finality Application Supplemental ML13028A103. Waste Policy Act sec. 134 (42 U.S.C. 10154). The NRC has determined that the January 24, 2013. Section 72.96(d) also issued under Nuclear Waste Policy Act sec. 145(g) (42 U.S.C. backfit rule (10 CFR 72.62) does not Application Supplemental ML13120A505. April 18, 2013. 10165(g)). apply to this direct final rule. Therefore, Subpart J also issued under Nuclear Waste a backfit analysis is not required. This Application Supplemental ML13217A050. July 23, 2013. Policy Act secs. 117(a), 141(h) (42 U.S.C. direct final rule revises the CoC No. 10137(a), 10161(h)). 1032 for the Holtec International HI– Subpart K also issued under sec. 218(a) (42 The NRC may post materials related STORM FW System, as currently listed U.S.C. 10198). in 10 CFR 72.214, ‘‘List of approved to this document, including public ■ spent fuel storage casks.’’ The revision comments, on the Federal rulemaking 2. In § 72.214, Certificate of consists of Amendment No. 1 which Web site at http://www.regulations.gov Compliance No. 1032 is revised to read adds a new heat load pattern for the under Docket ID NRC–2014–0102. The as follows: Federal rulemaking Web site allows you MPC–37, broadens the back pressure § 72.214 List of approved spent fuel range for MPC–37 and MPC–89, and to receive alerts when changes or additions occur in a docket folder. To storage casks. updates certain definitions related to * * * * * fuel classification. Also the amendment subscribe: (1) Navigate to the docket Certificate Number: 1032. makes a correction to the expiration folder (NRC–2014–0102); (2) click the date of CoC No. 1032. ‘‘Sign up for Email Alerts’’ link; and (3) Initial Certificate Effective Date: June Amendment No. 1 to CoC No. 1032 enter your email address and select how 13, 2011. for the Holtec International HI–STORM frequently you would like to receive Amendment Number 1 Effective Date: FW System was initiated by Holtec and emails (daily, weekly, or monthly). December 17, 2014. was not submitted in response to new List of Subjects in 10 CFR Part 72 SAR Submitted by: Holtec NRC requirements, or an NRC request International, Inc. for amendment. Amendment No. 1 Administrative practice and SAR Title: Final Safety Analysis applies only to new casks fabricated and procedure, Criminal penalties, Report for the HI–STORM FW System. used under Amendment No. 1. These Manpower training programs, Nuclear Docket Number: 72–1032. materials, Occupational safety and changes do not affect existing users of Certificate Expiration Date: June 12, health, Penalties, Radiation protection, the Holtec International HI–STORM FW 2031. System, and the current Amendment Reporting and recordkeeping requirements, Security measures, Spent Model Number: HI–STORM FW continues to be effective for existing MPC–37, MPC–89. users. While current CoC users may fuel, Whistleblowing. comply with the new requirements in For the reasons set out in the Dated at Rockville, Maryland, this 18th day of September, 2014. Amendment No. 1, this would be a preamble and under the authority of the voluntary decision on the part of current Atomic Energy Act of 1954, as amended; For the Nuclear Regulatory Commission. users. For these reasons, Amendment the Energy Reorganization Act of 1974, Mark A. Satorius, No. 1 to CoC No. 1032 does not as amended; the Nuclear Waste Policy Executive Director for Operations. constitute backfitting under 10 CFR Act of 1982, as amended; and 5 U.S.C. [FR Doc. 2014–23633 Filed 10–2–14; 8:45 am] 72.62, 10 CFR 50.109(a)(1), or otherwise 552 and 553; the NRC is adopting the BILLING CODE 7590–01–P

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NATIONAL CREDIT UNION part 706, titled ‘‘Unfair or Deceptive loans.’’ The Board believes that ADMINISTRATION Acts or Practices.’’ replacing that terminology with Despite the repeal of part 706, NCUA ‘‘payday alternative loans’’ or ‘‘PAL 12 CFR Parts 701, 706, and 790 still has supervisory and enforcement loans’’ more accurately reflects the authority regarding unfair or deceptive nature and purpose of this loan product. 2 RIN 3133–AE42 acts or practices, which could include The updated terminology also is more the practices previously addressed in consistent with the way NCUA and Unfair or Deceptive Acts or Practices; part 706. NCUA may determine that some industry stakeholders currently Technical Amendments statutory violations exist if federal credit refer to this loan product. This unions engage in acts or practices that important loan product deserves AGENCY: National Credit Union are prohibited by the Dodd-Frank Act or nomenclature that more precisely Administration (NCUA). the FTC Act. Such prohibited acts or describes its function and is more ACTION: Final rule. practices may include, but are not readily understood. limited to: II. Regulatory Amendments SUMMARY: The Dodd-Frank Wall Street • Including confessions of judgment, Reform and Consumer Protection Act waivers of exemptions, wage 1. Part 706—Unfair or Deceptive Acts or (Dodd-Frank Act) repealed NCUA’s assignments, or security interests on Practices rulemaking authority under the Federal household goods in consumer contracts; As discussed above, in response to • Misrepresenting the nature or Trade Commission Act (FTC Act). As a changes made by the Dodd-Frank Act, result, the NCUA Board (Board) is now extent of cosigner liability; and • this final rule repeals 12 CFR part 706. repealing NCUA’s regulations governing Pyramiding late fees. unfair or deceptive acts or practices. Agency Structure 2. Part 790—Changes to NCUA’s Central The Board is also making a number of and Field Office Structure In November 2013, the Board technical amendments to other NCUA approved a restructuring of NCUA’s As discussed above, the Board is regulations to conform them to the central office. This restructuring amending part 790 of NCUA’s agency’s current central and field office regulations to conform it to NCUA’s consisted of transferring certain structures. Additionally, the Board is current central and field office functions from one office to another and amending NCUA’s payday alternative structures. establishing the Office of Continuity and loans regulation to replace all references Security Management (OCSM). OCSM Office of Continuity and Security to ‘‘short-term, small amount loans’’ and performs all security-related functions Management ‘‘STS loans’’ with corresponding that were formerly the responsibility of references to ‘‘payday alternative loans’’ The Office of Continuity and Security several different offices. The core and ‘‘PAL loans.’’ The latter terms more Management (OCSM), created in functions of OCSM are national accurately reflect the nature and November 2013, began operating in continuity programs, emergency purpose of this loan product. January 2014. It was created to aggregate management and physical security, all of the agency’s security-related DATES: This final rule is effective on personnel security, and intelligence and functions into one office. The primary October 3, 2014. information security. As a result of this consolidated functions are continuity of FOR FURTHER INFORMATION CONTACT: and other organizational changes operations planning, physical security, Frank Kressman, Associate General described in section II, the Board is and personnel security. Also, NCUA put Counsel, Office of General Counsel, at making a number of conforming in place an additional security function 1775 Duke Street, Alexandria, VA 22314 technical amendments to NCUA’s to address national security issues or telephone: (703) 518–6540. regulations. affecting the financial services industry. SUPPLEMENTARY INFORMATION: Payday Alternative Loans All federal agencies are required to comply with various statutes and I. Background and Purpose of the Final Rule In September 2010, the Board Executive Orders related to the II. Regulatory Amendments amended its general lending regulation safeguarding of national assets. Through III. Regulatory Procedures to enable federal credit unions (FCUs) to OCSM, NCUA will be able to more offer payday alternative loans (PAL efficiently respond to these federal I. Background and Purpose of the Final loans).3 PAL loans serve as a viable mandates and conduct its security- Rule alternative to predatory payday loans related functions. Why is the NCUA Board issuing this and can help members break free of The final rule amends Part 790 to add rule? their dependency on high-cost a new paragraph describing OCSM and predatory payday loans. The Board its functions. Part 706 encourages FCUs to make PAL loans In 2010, President Obama signed into available for their members who need Office of the Chief Financial Officer law the Dodd-Frank Act (Pub. L. 111– them, provided they are offered in a safe The final rule amends the description 203, 124 Stat. 1376 (2010)). The Dodd- and sound manner. To be more readily of the Office of Chief Financial Officer Frank Act substantially changed the understood, NCUA is amending the to add strategic planning as one of its federal legal framework with respect to current terminology used to describe duties. NCUA shifted this duty from consumer financial protection this type of loan. Specifically, § 701.21 another office to better utilize staffing regulation. Among the many changes, currently refers to these loans as ‘‘short- resources. section 1092 of the Dodd-Frank Act term, small amount loans’’ or ‘‘STS repealed NCUA’s rulemaking authority Office of Consumer Protection under the FTC Act.1 As a result, the 2 NCUA has authority to enforce section 5 of the The final rule amends the description FTC Act (15 U.S.C. 45), and sections 1031 and 1036 of the Office of Consumer Protection Board is repealing NCUA’s rules under of the Dodd-Frank Act (12 U.S.C. 5531 and 5536), under the Federal Credit Union Act. See 12 U.S.C. (OCP) to reflect that the office now has 1 15 U.S.C. 57a(f) as amended by the Dodd-Frank 1786(e) and 1786(k)(2). four divisions. The Board added two Act. 3 75 FR 58285 (Sept. 24, 2010). divisions within OCP to more efficiently

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balance and structure the office’s ‘‘short-term, small amount loans’’ and the Treasury and General Government workload. In addition, NCUA deleted ‘‘STS loans’’ with the terms ‘‘payday Appropriations Act, 1999.7 the duties of the Ombudsman from alternative loans’’ and ‘‘PAL loans’’ to Small Business Regulatory Enforcement OCP’s description. The Executive more accurately reflect the nature and Fairness Act Director’s office now supervises the purpose of this loan product and to Ombudsman. make it more readily understood. The Small Business Regulatory Enforcement Fairness Act of 1996 8 Office of the Executive Director III. Regulatory Procedures (SBREFA) provides generally for The Board established the Regulatory Flexibility Act congressional review of agency rules. A Ombudsman position in April 1995, as reporting requirement is triggered in The Regulatory Flexibility Act required by the Riegle Community instances where NCUA issues a final requires NCUA to prepare an analysis to Development and Regulatory rule as defined by Section 551 of the describe any significant economic Improvement Act of 1994. The Administrative Procedure Act (APA).9 impact a rule may have on a substantial Ombudsman operates as an objective NCUA has submitted this rule to the number of small entities (primarily third party to resolve disputes that Office of Management and Budget for it those under $50 million in assets).5 This cannot be resolved at the operational to determine if the final rule is a ‘‘major final rule only makes non-substantive, level. In 2013, the Board elevated the rule’’ for purposes of SBREFA. NCUA technical changes. NCUA certifies that position of the Ombudsman to the does not believe the rule is major. these technical amendments will not Executive Director’s office. It is have a significant economic impact on Final Rule supervised by the Executive Director’s a substantial number of small credit office and reports directly to the Board. Generally, the APA requires a federal unions. Previously, OCP oversaw the agency to provide the public with notice Ombudsman’s duties, and the Paperwork Reduction Act and the opportunity to comment on Ombudsman reported to the Director of agency rulemakings. The amendments The Paperwork Reduction Act of 1995 OCP. in this rule are non-substantive and (PRA) applies to rulemakings in which technical, or involve only matters Regional Offices an agency by rule creates a new relating to management and personnel paperwork burden on regulated entities and are exempt from APA notice and NCUA realigned its regional offices 6 effective January 1, 2014. This was or modifies an existing burden. For comment requirements.10 They reflect designed to create geographically purposes of the PRA, a paperwork changes to NCUA’s organizational compact districts that balance workload, burden may take the form of either a structure, remove duplicative and improve efficiency, and reduce travel reporting or a recordkeeping imprecise language, make minor costs. In addition, the new regional requirement, both referred to as changes updating cross citations, and structure coincides with other changes information collections. NCUA has make minor changes which are to strengthen NCUA’s supervision, such determined that the technical statutorily required by the Dodd-Frank as the creation of the Office of National amendments in this final rule do not Act. The APA permits an agency to Examinations and Supervision. Each increase the paperwork requirements forego the notice and comment period NCUA region now has approximately an under PRA or regulations of the Office under certain circumstances, such as equal number of examiners, in addition of Management and Budget. when a rulemaking is technical and to supervision, special actions, and Executive Order 13132 non-substantive. NCUA finds that, in support personnel. this instance, notice and public Executive Order 13132 encourages The Board is updating the table in comment are unnecessary under section independent regulatory agencies to § 790.2(c)(1)(i), indicating the states that 553(b)(3)(B) of the APA.11 NCUA also consider the impact of their actions on each region is responsible for finds good cause to dispense with the state and local interests. NCUA, an supervising. Nine states have been 30-day delayed effective date independent regulatory agency as transferred among the NCUA regional requirement under section 553(d)(3) of defined in 44 U.S.C. 3502(5), voluntarily offices for the reasons noted above.4 The the APA.12 The rule, therefore, will be complies with the executive order to changes are as follows: effective immediately upon publication. adhere to fundamental federalism • Wisconsin is in Region I; principles. This final rule will not have List of Subjects • Ohio is in Region II; a substantial direct effect on the states, • Arkansas and Louisiana are in 12 CFR Part 701 on the relationship between the national Region III; government and the states, or on the Credit, Credit unions, Reporting and • Colorado, Montana, New Mexico, distribution of power and recordkeeping requirements. and Wyoming are in Region IV and responsibilities among the various • California is in Region V. 12 CFR Part 706 levels of government. NCUA has Lastly, the territory of American determined that this final rule does not Consumer protection, Credit, Credit Samoa is no longer listed in constitute a policy that has federalism unions, Deception, Intergovernmental § 790.2(c)(1)(i) as NCUA no longer implications for purposes of the relations, Trade practices, Unfairness. supervises any credit unions in that executive order. jurisdiction. 12 CFR Part 790 Assessment of Federal Regulations and Organization and functions 3. Part 701—Payday Alternative Loans Policies on Families (Government agencies). As discussed above, the Board is NCUA has determined that this final amending NCUA’s payday alternative 7 Public Law 105–277, 112 Stat. 2681 (1998). rule will not affect family well-being loans regulation to replace the terms 8 Public Law 104–121, 110 Stat. 857 (1996). within the meaning of Section 654 of 9 5 U.S.C. 551. 4 http://www.ncua.gov/about/Leadership/Pages/ 10 5 U.S.C. 553(a)(2) and 553(b)(3)(B). field-program-offices.aspx. This map shows the 5 5 U.S.C. 603(a). 11 5 U.S.C. 553(b)(3)(B). current regional alignment. 6 44 U.S.C. 3507(d); 5 CFR part 1320. 12 5 U.S.C. 553(d)(3).

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By the National Credit Union ■ b. Adding paragraph (b)(17); and Director. The Executive Director is Administration Board on September 18, ■ c. Revising paragraph (c)(1)(i). otherwise to be privy to all matters 2014. The revisions and addition read as within senior executive staff’s Gerard Poliquin, follows: responsibility. The Executive Director Secretary of the Board. also serves as the agency’s Director of § 790.2 Central and field office For the reasons discussed above, the organization. Equal Employment Opportunity. The Office of the Executive Director also NCUA Board amends 12 CFR parts 701, * * * * * 706, and 790 as follows: supervises the agency’s ombudsman. (b) * * * The ombudsman investigates (4) The Office of the Chief Financial PART 701—ORGANIZATION AND complaints and recommends solutions Officer. NCUA’s Chief Financial Officer OPERATION OF FEDERAL CREDIT on regulatory issues that cannot be plans, organizes, implements, directs, UNIONS resolved at the regional level. and provides overall direction and * * * * * ■ leadership for: 1. The authority citation for part 701 (15) Office of Consumer Protection. (i) continues to read as follows: (i) Agency-wide strategic planning, budget formulation, and performance The Office of Consumer Protection Authority: 12 U.S.C. 1752(5), 1755, 1756, reporting; contains four divisions: 1757, 1758, 1759, 1761a, 1761b, 1766, 1767, (ii) The agency’s financial (A) The Division of Consumer 1782, 1784, 1786, 1787, 1789. Section 701.31 management system and financial Compliance Policy and Outreach; is also authorized by 15 U.S.C. 1601, et seq., (B) The Division of Consumer Affairs; 42 U.S.C. 1981 and 3601–3610. Section reporting functions; 701.35 is also authorized by 12 U.S.C. 4311– (iii) Procurement and facilities (C) The Division of Consumer Access; 4312. management to include various and ■ 2. Amend § 701.21(c)(7)(iii) as administrative responsibilities such as (D) The Division of Consumer Access- follows: property management, mail services, South. ■ a. Remove the words ‘‘Short-term, graphics support, supply management, (ii) The office provides consumer small amount’’ wherever they appear printing, and publications management; services, including consumer education and add, in their place, the words and and complaint resolution; establishes, ‘‘Payday alternative’’. (iv) Managing the operations of the consolidates, and coordinates consumer ■ b. Remove the words ‘‘short-term, Operating and Insurance Funds, protections within the agency; acts as small amount’’ wherever they appear including payroll, travel policies, the central liaison on consumer and add, in their place, the words revenue assessment, and dividend protection with other federal agencies; ‘‘payday alternative’’. distributions. and nationalizes field of membership ■ c. Remove the words ‘‘an STS’’ * * * * * processing and chartering activities. wherever they appear and add, in their (6) Office of the Executive Director. * * * * * place, the words ‘‘a PAL’’. The Executive Director reports to the (17) The Office of Continuity and ■ d. Remove the term ‘‘STS’’ wherever entire NCUA Board. The Executive Security Management. The Director of it appears and add, in its place, the term Director translates NCUA Board policy the Office of Continuity and Security ‘‘PAL’’. decisions into workable programs, Management is responsible for NCUA’s delegates responsibility for these emergency preparedness and for PART 706—[REMOVED] programs to appropriate staff members, coordinating the response to natural and coordinates the activities of the disasters or national security events; for ■ 3. Under the authority of 12 U.S.C. senior executive staff, which includes: timely dissemination of information on 1751 et seq., part 706 is removed and the General Counsel; the Regional cyber threats, terrorism, foreign criminal reserved. Directors; and the Office Directors for activity, and other national security Chief Financial Officer, Examination threats to the agency or to the credit PART 790—DESCRIPTION OF NCUA; and Insurance, Human Resources, Chief union sector; and for conducting risk REQUESTS FOR AGENCY ACTION Information Officer, and Public and assessments and managing executive ■ 4. The authority citation for part 790 Congressional Affairs. Because of the branch programs to protect NCUA continues to read as follows: nature of the attorney/client personnel and facilities, and to relationship between the Board and safeguard classified national security Authority: 12 U.S.C. 1766, 1789, 1795f. General Counsel, the General Counsel information. ■ 5. Amend § 790.2 by: may be directed by the Board not to (c) * * * ■ a. Revising paragraphs (b)(4), (b)(6), disclose discussions and/or assignments (1) Regional Offices. (i) The NCUA and (b)(15); with anyone, including the Executive has five Regional Offices:

Region No. Area within region Office address

I ...... Connecticut, Maine, Massachusetts, Michigan, New Hampshire, 9 Washington Square, Washington Avenue Extension, Albany, New York, Rhode Island, Vermont, Wisconsin. NY 12205–5512. II ...... Delaware, District of Columbia, Maryland, New Jersey, Ohio, 1900 Duke St., Suite 300, Alexandria, VA 22314–3498. Pennsylvania, Virginia, West Virginia. III ...... Alabama, Arkansas, Florida, Georgia, Indiana, Kentucky, Lou- 7000 Central Parkway, Suite 1600, Atlanta, GA 30328–4598. isiana, Mississippi, North Carolina, Puerto Rico, South Caro- lina, Tennessee, Virgin Islands. IV ...... Colorado, Illinois, Iowa, Kansas, Minnesota, Missouri, Montana, 4807 Spicewood Springs Road, Suite 5200, Austin, TX 78759– Nebraska, New Mexico, North Dakota, Oklahoma, South Da- 8490. kota, Texas, Wyoming.

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Region No. Area within region Office address

V ...... Alaska, Arizona, California, Guam, Hawaii, Idaho, Nevada, Or- 1230 W. Washington Street, Suite 301, Tempe, AZ 85281. egon, Utah, Washington.

* * * * * For service information identified in line for damage due to chafing. The [FR Doc. 2014–22715 Filed 10–2–14; 8:45 am] this AD, contact Bombardier, Inc., Q- corrective actions include repair of BILLING CODE 7535–01–P Series Technical Help Desk, 123 Garratt chafed parts, and replacement of Boulevard, Toronto, Ontario M3K 1Y5, missing clamps. You may examine the Canada; telephone 416–375–4000; fax MCAI in the AD docket on the Internet DEPARTMENT OF TRANSPORTATION 416–375–4539; email thd.qseries@ at http://www.regulations.gov/ aero.bombardier.com; Internet http:// #!documentDetail;D=FAA-2013-1067- Federal Aviation Administration www.bombardier.com. You may view 0002. this referenced service information at 14 CFR Part 39 the FAA, Transport Airplane Comment [Docket No. FAA–2013–1067; Directorate Directorate, 1601 Lind Avenue SW., We gave the public the opportunity to Identifier 2013–NM–164–AD; Amendment Renton, WA. For information on the participate in developing this AD. We 39–17982; AD 2014–20–09] availability of this material at the FAA, have considered the comment received. call 425–227–1221. RIN 2120–AA64 The following presents the comment FOR FURTHER INFORMATION CONTACT: received on the NPRM (78 FR 79338, Airworthiness Directives; Bombardier, Assata Dessaline, Aerospace Engineer, December 30, 2013) and the FAA’s Inc. Airplanes Avionics and Service Branch, ANE–172, response to the comment. FAA, New York Aircraft Certification AGENCY: Federal Aviation Office, 1600 Stewart Avenue, Suite 410, Request To Remove Certain Service Administration (FAA), Department of Westbury, NY 11590; telephone 516– Information Procedures Transportation (DOT). 228–7301; fax 516–794–5531. Horizon Air requested that we change ACTION: Final rule. SUPPLEMENTARY INFORMATION: the language in paragraph (g) of the NPRM (78 FR 79338, December 30, SUMMARY: We are adopting a new Discussion airworthiness directive (AD) for certain 2013) from mandating the We issued a notice of proposed Bombardier, Inc. Model DHC–8–400 Accomplishment Instructions in rulemaking (NPRM) to amend 14 CFR series airplanes. This AD was prompted Bombardier Service Bulletin 84–24–53, part 39 by adding an AD that would by reports of missing clamps that are Revision A, dated May 16, 2013, to apply to certain Bombardier, Inc. Model required to provide positive separation mandating only the section of DHC–8–400 series airplanes. The NPRM between the alternating current (AC) Bombardier Service Bulletin 84–24–53, published in the Federal Register on feeder cables and the hydraulic line of Revision A, dated May 16, 2013, that December 30, 2013 (78 FR 79338). corrects the unsafe condition. Horizon the landing gear alternate extension. Transport Canada Civil Aviation This AD requires an inspection for Air stated that the Accomplishment (TCCA), which is the aviation authority missing clamps that are required to Instructions, Part A, ‘‘Job Set-up,’’ and for Canada, has issued Canadian provide positive separation between the Part C, ‘‘Close Out,’’ have nothing to do Airworthiness Directive CF–2013–16, AC feeder cables and the hydraulic line with correcting the unsafe condition. dated June 14, 2013 (referred to after of the landing gear alternate extension, Horizon Air expressed that mandating this as the Mandatory Continuing and related investigative and corrective operators to perform these sections adds Airworthiness Information, or ‘‘the actions if necessary. We are issuing this an unnecessary regulatory requirement MCAI’’), to correct an unsafe condition AD to detect and correct chafing of the because operators must have the for the specified products. The MCAI AC feeder cable. A chafed and arcing airplane in a specific condition, and states: AC feeder cable could puncture the keep it in that condition, while adjacent hydraulic line, which, in During production checks, it was found performing the corrective action. combination with the use of the that the appropriate clamps required to Horizon Air also stated that, if the FAA alternate extension system, could result provide positive separation between the AC keeps the requirements of job setup and feeder cables and the hydraulic line of the job close-out, it forces an operator to in an in-flight fire. landing gear alternate extension were DATES: This AD becomes effective omitted. The AC feeder cable could sag and request an alternative method of November 7, 2014. be in direct contact with the swage fitting of compliance (AMOC) if it chooses to The Director of the Federal Register the landing gear alternate extension deviate from the work-steps. Horizon approved the incorporation by reference hydraulic line, resulting in chafing of the AC Air provided its cost estimate of of a certain publication listed in this AD feeder cable. The chafed and arcing AC obtaining an AMOC. as of November 7, 2014. feeder cable could puncture the adjacent In this case, we agree with the hydraulic line. In combination with the use ADDRESSES: You may examine the AD of the alternate extension system, this could commenter’s request to exclude the ‘‘Job docket on the Internet at http:// result in an in-flight fire. Set-up’’ and ‘‘Close Out’’ sections of www.regulations.gov/ This [Canadian] AD mandates the [general Bombardier Service Bulletin 84–24–53, #!docketDetail;D=FAA-2013-1067 or in visual] inspection [for missing clamps], and Revision A, dated May 16, 2013. We person at the Docket Management rectification [related investigative and have revised paragraph (g) of this AD to Facility, U.S. Department of corrective actions] as necessary, for proper require accomplishment of paragraph Transportation, Docket Operations, M– clamp installation. 3.B., ‘‘Procedure,’’ of the 30, West Building Ground Floor, Room The related investigative action is a Accomplishment Instructions of W12–140, 1200 New Jersey Avenue SE., general visual inspection of the AC Bombardier Service Bulletin 84–24–53, Washington, DC. power feeder cables and the hydraulic Revision A, dated May 16, 2013.

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‘‘Contacting the Manufacturer’’ requirements of the AD-mandated manufacturer’s service bulletin and the Paragraph in This AD actions. The Airworthy Product foreign authority’s MCAI might have Since late 2006, we have included a paragraph only addresses the been issued some time before the FAA standard paragraph titled ‘‘Airworthy requirement to contact the manufacturer AD. Therefore, the DOA might have Product’’ in all MCAI ADs in which the for corrective actions for the identified provided U.S. operators with an FAA develops an AD based on a foreign unsafe condition and does not cover approved repair, developed with full authority’s AD. deviations from other AD requirements. awareness of the unsafe condition, The MCAI or referenced service However, deviations to AD-required before the FAA AD is issued. Under information in an FAA AD often directs actions are addressed in 14 CFR 39.17, these circumstances, to comply with the the owner/operator to contact the and anyone may request the approval FAA AD, the operator would be manufacturer for corrective actions, for an alternative method of compliance required to go back to the such as a repair. Briefly, the Airworthy to the AD-required actions using the manufacturer’s DOA and obtain a new Product paragraph allowed owners/ procedures found in 14 CFR 39.19. approval document, adding time and To address this misunderstanding and operators to use corrective actions expense to the compliance process with misinterpretation of the Airworthy provided by the manufacturer if those no safety benefit. Product paragraph, we have changed actions were FAA-approved. In Based on these comments, we that paragraph and retitled it removed the requirement that the DAH- addition, the paragraph stated that any ‘‘Contacting the Manufacturer.’’ This actions approved by the State of Design provided repair specifically refer to this paragraph now clarifies that for any AD. Before adopting such a Authority (or its delegated agent) are requirement in this AD to obtain considered to be FAA-approved. requirement, the FAA will coordinate corrective actions from a manufacturer, with affected DAHs and verify they are In the NPRM (78 FR 79338, December the action must be accomplished using 30, 2013), we proposed to prevent the prepared to implement means to ensure a method approved by the FAA, TCCA, that their repair approvals consider the use of repairs that were not specifically or Bombardier’s TCCA Design Approval developed to correct the unsafe unsafe condition addressed in this AD. Organization (DAO). Where necessary Any such requirements will be adopted condition, by requiring that the repair throughout this AD, we also replaced approval provided by the State of through the normal AD rulemaking any reference to approvals of corrective process, including notice-and-comment Design Authority or its delegated agent actions with a reference to the specifically refer to this FAA AD. This procedures, when appropriate. We also Contacting the Manufacturer paragraph. have decided not to include a generic change was intended to clarify the The Contacting the Manufacturer reference to either the ‘‘delegated agent’’ method of compliance and to provide paragraph also clarifies that, if approved or ‘‘DAH with State of Design Authority operators with better visibility of repairs by the DAO, the approval must include design organization approval,’’ but that are specifically developed and the DAO-authorized signature. The DAO instead we have provided the specific approved to correct the unsafe signature indicates that the data and delegation approval granted by the State condition. In addition, we proposed to information contained in the document of Design Authority for the DAH. change the phrase ‘‘its delegated agent’’ are TCCA-approved, which is also FAA- to include a design approval holder approved. Messages and other Conclusion (DAH) with State of Design Authority information provided by the We reviewed the relevant data, design organization approval (DOA), as manufacturer that do not contain the considered the comment received, and applicable, to refer to a DAH authorized DAO-authorized signature approval are to approve required repairs for the not TCCA-approved, unless TCCA determined that air safety and the proposed AD. directly approves the manufacturer’s public interest require adopting this AD No comments were provided to the message or other information. with the changes described previously NPRM (78 FR 79338, December 30, This clarification does not remove and minor editorial changes. We have 2013) about these proposed changes. flexibility previously afforded by the determined that these minor changes: • However, a comment was provided for Airworthy Product paragraph. Are consistent with the intent that another NPRM, Directorate Identifier Consistent with long-standing FAA was proposed in the NPRM (78 FR 2012–NM–101–AD (78 FR 78285, policy, such flexibility was never 79338, December 30, 2013) for December 26, 2013), in which the intended for required actions. This is correcting the unsafe condition; and commenter stated the following: ‘‘The also consistent with the • Do not add any additional burden proposed wording, being specific to recommendation of the Airworthiness upon the public than was already repairs, eliminates the interpretation Directive Implementation Aviation proposed in the NPRM (78 FR 79338, that Airbus messages are acceptable for Rulemaking Committee to increase December 30, 2013). approving minor deviations (corrective flexibility in complying with ADs by We also determined that these actions) needed during accomplishment identifying those actions in changes will not increase the economic of an AD mandated Airbus service manufacturers’ service instructions that burden on any operator or increase the bulletin.’’ are ‘‘Required for Compliance’’ with scope of this AD. This comment has made the FAA ADs. We continue to work with Costs of Compliance aware that some operators have manufacturers to implement this misunderstood or misinterpreted the recommendation. But once we We estimate that this AD affects 78 Airworthy Product paragraph to allow determine that an action is required, any airplanes of U.S. registry. the owner/operator to use messages deviation from the requirement must be We also estimate that it would take provided by the manufacturer as approved as an alternative method of about 2 work-hours per product to approval of deviations during the compliance. comply with the basic requirements of accomplishment of an AD-mandated Other commenters to the NPRM this AD. The average labor rate is $85 action. The Airworthy Product discussed previously, Directorate per work-hour. Based on these figures, paragraph does not approve messages or Identifier 2012–NM–101–AD (78 FR we estimate the cost of this AD on U.S. other information provided by the 78285, December 26, 2013), pointed out operators to be $13,260, or $170 per manufacturer for deviations to the that in many cases the foreign product.

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In addition, we estimate that any Facility between 9 a.m. and 5 p.m., (g) Clamp Inspection, Related Investigative necessary follow-on actions would take Monday through Friday, except Federal Actions, and Corrective Actions about 2 work-hours and require parts holidays. The AD docket contains this Within 6,000 flight hours or 36 months costing $11, for a cost of $181 per AD, the regulatory evaluation, any after the effective date of this AD, whichever product. We have received no definitive comments received, and other occurs earlier: Do a general visual inspection data that would enable us to provide information. The street address for the for installation of clamps between the AC cost estimates for the on-condition Docket Operations office (telephone feeder cables and hydraulic line; and do all applicable related investigative and repair of the AC power feeder cables 800–647–5527) is in the ADDRESSES corrective actions; in accordance with and hydraulic lines specified in this AD. section. paragraph 3.B., ‘‘Procedure,’’ of the We have no way of determining the List of Subjects in 14 CFR Part 39 Accomplishment Instructions of Bombardier number of aircraft that might need these Service Bulletin 84–24–53, Revision A, dated actions. Air transportation, Aircraft, Aviation May 16, 2013. Do all applicable related safety, Incorporation by reference, investigative and corrective actions before Authority for This Rulemaking further flight. Safety. Title 49 of the United States Code (h) Credit for Previous Actions specifies the FAA’s authority to issue Adoption of the Amendment This paragraph provides credit for actions rules on aviation safety. Subtitle I, Accordingly, under the authority required by paragraph (g) of this AD, if those section 106, describes the authority of actions were performed before the effective the FAA Administrator. ‘‘Subtitle VII: delegated to me by the Administrator, the FAA amends 14 CFR part 39 as date of this AD using Bombardier Service Aviation Programs,’’ describes in more Bulletin 84–24–53, dated May 11, 2012. detail the scope of the Agency’s follows: (i) Other FAA AD Provisions authority. PART 39—AIRWORTHINESS We are issuing this rulemaking under The following provisions also apply to this DIRECTIVES the authority described in ‘‘Subtitle VII, AD: (1) Alternative Methods of Compliance Part A, Subpart III, Section 44701: ■ (AMOCs): The Manager, New York Aircraft General requirements.’’ Under that 1. The authority citation for part 39 continues to read as follows: Certification Office (ACO), ANE–170, FAA, section, Congress charges the FAA with has the authority to approve AMOCs for this promoting safe flight of civil aircraft in Authority: 49 U.S.C. 106(g), 40113, 44701. AD, if requested using the procedures found air commerce by prescribing regulations in 14 CFR 39.19. In accordance with 14 CFR § 39.13 [Amended] for practices, methods, and procedures 39.19, send your request to your principal the Administrator finds necessary for ■ 2. The FAA amends § 39.13 by adding inspector or local Flight Standards District Office, as appropriate. If sending information safety in air commerce. This regulation the following new airworthiness is within the scope of that authority directly to the ACO, send it to ATTN: directive (AD): Program Manager, Continuing Operational because it addresses an unsafe condition Safety, FAA, New York ACO, 1600 Stewart that is likely to exist or develop on 2014–20–09 Bombardier, Inc.: Amendment 39–17982. Docket No. FAA–2013–1067; Avenue, Suite 410, Westbury, NY 11590; products identified in this rulemaking Directorate Identifier 2013–NM–164–AD. telephone 516–228–7300; fax 516–794–5531. action. Before using any approved AMOC, notify (a) Effective Date your appropriate principal inspector, or Regulatory Findings This AD becomes effective November 7, lacking a principal inspector, the manager of We determined that this AD will not 2014. the local flight standards district office/ have federalism implications under certificate holding district office. The AMOC (b) Affected ADs Executive Order 13132. This AD will approval letter must specifically reference not have a substantial direct effect on None. this AD. the States, on the relationship between (2) Contacting the Manufacturer: For any (c) Applicability requirement in this AD to obtain corrective the national government and the States, This AD applies to Bombardier, Inc. Model actions from a manufacturer, the action must or on the distribution of power and DHC–8–400, –401, and –402 airplanes, be accomplished using a method approved responsibilities among the various certificated in any category, serial numbers by the Manager, New York ACO, ANE–170, levels of government. 4001 through 4347 inclusive. Engine and Propeller Directorate, FAA; or For the reasons discussed above, I Transport Canada Civil Aviation (TCCA); or (d) Subject certify that this AD: Bombardier, Inc.’s TCCA Design Approval 1. Is not a ‘‘significant regulatory Air Transport Association (ATA) of Organization (DAO). If approved by the DAO, action’’ under Executive Order 12866; America Code 24, Electrical power. the approval must include the DAO- authorized signature. 2. Is not a ‘‘significant rule’’ under the (e) Reason DOT Regulatory Policies and Procedures This AD was prompted by reports of (j) Related Information (44 FR 11034, February 26, 1979); missing clamps that are required to provide (1) Refer to Mandatory Continuing 3. Will not affect intrastate aviation in positive separation between the alternating Airworthiness Information (MCAI) Canadian Alaska; and current (AC) feeder cables and the hydraulic Airworthiness Directive CF–2013–16, dated 4. Will not have a significant line of the landing gear alternate extension. June 14, 2013, for related information. This economic impact, positive or negative, We are issuing this AD to detect and correct MCAI may be found in the AD docket on the on a substantial number of small entities chafing of the AC feeder cable. A chafed and Internet at http://www.regulations.gov/ under the criteria of the Regulatory arcing AC feeder cable could puncture the #!documentDetail;D=FAA-2013-1067-0002. Flexibility Act. adjacent hydraulic line, which, in (2) Service information identified in this combination with the use of the alternate AD that is not incorporated by reference is Examining the AD Docket extension system, could result in an in-flight available at the addresses specified in You may examine the AD docket on fire. paragraphs (k)(3) and (k)(4) of this AD. the Internet at http:// (f) Compliance (k) Material Incorporated by Reference www.regulations.gov/ Comply with this AD within the (1) The Director of the Federal Register #!docketDetail;D=FAA-2013-1067; or in compliance times specified, unless already approved the incorporation by reference person at the Docket Management done. (IBR) of the service information listed in this

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paragraph under 5 U.S.C. 552(a) and 1 CFR repetitive replacements of the upper 342–1088; email: roger.caldwell@ part 51. chords, post-replacement inspections, faa.gov. (2) You must use this service information and corrective actions if necessary. This SUPPLEMENTARY INFORMATION: as applicable to do the actions required by new AD also adds post-replacement this AD, unless this AD specifies otherwise. Discussion (i) Bombardier Service Bulletin 84–24–53, inspections for section 41 and reduces Revision A, dated May 16, 2013. certain compliance times. This AD was We issued a notice of proposed (ii) Reserved. prompted by a determination that the rulemaking (NPRM) to amend 14 CFR (3) For service information identified in upper deck floor beams are subject to part 39 to supersede AD 2010–03–05, this AD, contact Bombardier, Inc., Q-Series widespread fatigue damage (WFD), the Amendment 39–16188 (75 FR 5692, Technical Help Desk, 123 Garratt Boulevard, existing inspection program is not February 4, 2010). AD 2010–03–05 Toronto, Ontario M3K 1Y5, Canada; sufficient to maintain an acceptable telephone 416–375–4000; fax 416–375–4539; applied to all The Boeing Company level of safety, and the upper chords of Model 747–200C and –200F series email [email protected]; the upper deck floor beam of section 42 Internet http://www.bombardier.com. airplanes. The NPRM published in the (4) You may view this service information are subject to the unsafe condition. We Federal Register on May 28, 2014 (79 at the FAA, Transport Airplane Directorate, are issuing this AD to detect and correct FR 30486). The NPRM was prompted by 1601 Lind Avenue SW., Renton, WA. For cracking of the upper chords and straps a determination that the upper deck information on the availability of this (or angles) of the floor beams, which floor beams are subject to WFD, the material at the FAA, call 425–227–1221. could lead to failure of the floor beams existing inspection program is not (5) You may view this service information and consequent loss of controllability, sufficient to maintain an acceptable that is incorporated by reference at the rapid decompression, and loss of level of safety, and the upper chords of National Archives and Records structural integrity of the airplane. Administration (NARA). For information on the upper deck floor beams in section 42 the availability of this material at NARA, call DATES: This AD is effective November 7, are subject to the identified unsafe 202–741–6030, or go to: http:// 2014. condition. The NPRM proposed to add www.archives.gov/federal-register/cfr/ibr- The Director of the Federal Register post-replacement inspections for section locations.html. approved the incorporation by reference 41 and reduce certain compliance times. Issued in Renton, Washington, on of a certain publication listed in this AD The NPRM also proposed to add September 23, 2014. as of November 7, 2014. repetitive inspections of the upper Dionne Palermo, ADDRESSES: For service information chords of the upper deck floor beams in Acting Manager, Transport Airplane identified in this AD, contact Boeing section 42, repetitive replacements of Directorate, Aircraft Certification Service. Commercial Airplanes, Attention: Data the upper chords, post-replacement [FR Doc. 2014–23429 Filed 10–2–14; 8:45 am] & Services Management, P.O. Box 3707, inspections, and corrective action if MC 2H–65, Seattle, WA 98124–2207; BILLING CODE 4910–13–P necessary. We are issuing this AD to telephone 206–544–5000, extension 1; detect and correct cracking of the upper fax 206–766–5680; Internet https:// chords and straps (or angles) of the floor DEPARTMENT OF TRANSPORTATION www.myboeingfleet.com. You may view beams, which could lead to failure of this referenced service information at the floor beams and consequent loss of Federal Aviation Administration the FAA, Transport Airplane controllability, rapid decompression, Directorate, 1601 Lind Avenue SW., and loss of structural integrity of the 14 CFR Part 39 Renton, WA. For information on the airplane. availability of this material at the FAA, [Docket No. FAA–2014–0283; Directorate Comments Identifier 2012–NM–183–AD; Amendment call 425–227–1221. 39–17980; AD 2014–20–07] Examining the AD Docket We gave the public the opportunity to participate in developing this AD. We RIN 2120–AA64 You may examine the AD docket on have considered the comment received. the Internet at http:// Boeing stated that it concurs with the Airworthiness Directives; the Boeing www.regulations.gov by searching for contents of the NPRM (79 FR 30486, Company Airplanes and locating Docket No. FAA–2014– May 28, 2014). AGENCY: 0283; or in person at the Docket Federal Aviation Conclusion Administration (FAA), DOT. Management Facility between 9 a.m. and 5 p.m., Monday through Friday, ACTION: Final rule. We reviewed the relevant data, except Federal holidays. The AD docket considered the comment received, and SUMMARY: We are superseding contains this AD, the regulatory determined that air safety and the Airworthiness Directive (AD) 2010–03– evaluation, any comments received, and public interest require adopting this AD 05 for all the Boeing Company Model other information. The address for the as proposed except for minor editorial 747–200C and –200F series airplanes. Docket Office (phone: 800–647–5527) is changes. We have determined that these AD 2010–03–05 required, for the upper Docket Management Facility, U.S. minor changes: chords of the upper deck floor beam of Department of Transportation, Docket • Are consistent with the intent that section 41, an inspection for cracking of Operations, M–30, West Building was proposed in the NPRM (79 FR certain fastener holes, and corrective Ground Floor, Room W12–140, 1200 30486, May 28, 2014) for correcting the action if necessary; and repetitive New Jersey Avenue SE., Washington, unsafe condition; and replacements of the upper chords, straps DC 20590. • Do not add any additional burden (or angles), and radius fillers of certain FOR FURTHER INFORMATION CONTACT: upon the public than was already upper deck floor beams and, for any Roger Caldwell, Aerospace Engineer, proposed in the NPRM (79 FR 30486, replacement that is done, inspections Technical Operations Center, ANM– May 28, 2014). for cracking, and corrective actions if 100D, FAA, Denver Aircraft necessary. This new AD adds repetitive Certification Office (ACO), 26805 East Costs of Compliance inspections of the upper chords of the 68th Avenue, Room 214, Denver, CO We estimate that this AD affects 25 upper deck floor beam of Section 42, 80249; phone: 303–342–1086; fax: 303– airplanes of U.S. registry.

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We estimate the following costs to comply with this AD:

ESTIMATED COSTS

Action Labor cost Parts cost Cost per product Cost on U.S. operators

Retained inspection and replace- 663 work-hours × $85 $0 ...... $56,355 per inspection/ $1,408,875 per inspec- ment (AD 2010–03–05, Amend- per hour = $56,355. replacement cycle. tion/replacement cycle. ment 39-16188 (75 FR 5692, February 4, 2010)). New post-replacement inspec- Up to 525 work-hours × $0 ...... $44,625 ...... Up to $1,115,625. tions—section 41. $85 per hour = $44,625 1. New inspections, replacement, and Up to 525 work-hours × Manufacturer has not $44,625 ...... Up to $1,115,625. post-replacement inspections— $85 per hour = provided cost of parts. section 42. $44,625 1. 1 Includes time to manufacture parts.

We have received no definitive data (4) Will not have a significant (e) Unsafe Condition that would enable us to provide cost economic impact, positive or negative, This AD was prompted by a determination estimates for the on-condition actions on a substantial number of small entities that the upper deck floor beams are subject specified in this AD. under the criteria of the Regulatory to widespread fatigue damage (WFD), the Flexibility Act. existing inspection program is not sufficient Authority for This Rulemaking to maintain an acceptable level of safety, and List of Subjects in 14 CFR Part 39 Title 49 of the United States Code upper chords of the upper deck floor beam of section 42 are subject to the unsafe specifies the FAA’s authority to issue Air transportation, Aircraft, Aviation condition. We are issuing this AD to detect rules on aviation safety. Subtitle I, safety, Incorporation by reference, and correct cracking of the upper chords and Section 106, describes the authority of Safety. straps (or angles) of the floor beams, which the FAA Administrator. Subtitle VII, could lead to failure of the floor beams and Aviation Programs, describes in more Adoption of the Amendment consequent loss of controllability, rapid detail the scope of the Agency’s Accordingly, under the authority decompression, and loss of structural integrity of the airplane. authority. delegated to me by the Administrator, We are issuing this rulemaking under the FAA amends 14 CFR part 39 as (f) Compliance the authority described in Subtitle VII, follows: Comply with this AD within the Part A, Subpart III, Section 44701, compliance times specified, unless already ‘‘General requirements.’’ Under that PART 39—AIRWORTHINESS done. section, Congress charges the FAA with DIRECTIVES (g) Inspection and Replacement for the promoting safe flight of civil aircraft in Upper Chords of the Upper Deck Floor Beam ■ air commerce by prescribing regulations 1. The authority citation for part 39 of Section 41 for practices, methods, and procedures continues to read as follows: At the applicable time specified in Table the Administrator finds necessary for Authority: 49 U.S.C. 106(g), 40113, 44701. 1 of paragraph 1.E., ‘‘Compliance,’’ of Boeing safety in air commerce. This regulation Alert Service Bulletin 747–53A2696, is within the scope of that authority § 39.13 [Amended] Revision 1, dated April 12, 2012: At stations because it addresses an unsafe condition ■ 2. The FAA amends § 39.13 by (STA) 340 through STA 440, STA 500, and that is likely to exist or develop on STA 520, do an open-hole high frequency removing Airworthiness Directive (AD) products identified in this rulemaking eddy current (HFEC) inspection at all 2010–03–05, Amendment 39–16188 (75 action. accessed fastener holes to detect cracking; FR 5692, February 4, 2010), and adding and install new upper deck floor beam upper Regulatory Findings the following new AD: chords, straps, angles, and radius fillers; in accordance with Part 2 and Part 3 of the We have determined that this AD will 2014–20–07 The Boeing Company: Amendment 39–17980; Docket No. Accomplishment Instructions of Boeing Alert not have federalism implications under Service Bulletin 747–53A2696, Revision 1, Executive Order 13132. This AD will FAA–2014–0283; Directorate Identifier 2012–NM–183–AD. dated April 12, 2012. not have a substantial direct effect on the States, on the relationship between (a) Effective Date (h) Post-Replacement Inspections and Replacements for the Upper Chords of the the national government and the States, This AD is effective November 7, 2014. Upper Deck Floor Beam of Section 41 or on the distribution of power and (b) Affected ADs responsibilities among the various At the applicable time specified in Table 2 of paragraph 1.E., ‘‘Compliance,’’ of Boeing levels of government. This AD replaces AD 2010–03–05, Amendment 39–16188 (75 FR 5692, February Alert Service Bulletin 747–53A2696, For the reasons discussed above, I 4, 2010). Revision 1, dated April 12, 2012; or within certify that this AD: 1,500 flight cycles after March 11, 2010 (the (1) Is not a ‘‘significant regulatory (c) Applicability effective date of AD 2010–03–05, action’’ under Executive Order 12866, This AD applies to all The Boeing Amendment 39–16188 (75 FR 5692, February (2) Is not a ‘‘significant rule’’ under Company Model 747–200C and –200F series 4, 2010)); whichever occurs later: Do detailed airplanes, certificated in any category. and HFEC inspections to detect cracking of DOT Regulatory Policies and Procedures the replaced upper deck floor beam chords, (44 FR 11034, February 26, 1979), (d) Subject the floor panel attachment holes, and the (3) Will not affect intrastate aviation Air Transport Association (ATA) of permanent fastener locations of the replaced in Alaska, and America Code 53, Fuselage. upper deck floor beam chords, in accordance

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with Part 4 of the Accomplishment Instructions of Boeing Alert Service Bulletin of the local flight standards district office/ Instructions of Boeing Alert Service Bulletin 747–53A2696, Revision 1, dated April 12, certificate holding district office. 747–53A2696, Revision 1, dated April 12, 2012. If no crack is found, do the actions (3) An AMOC that provides an acceptable 2012. If no cracking is found, do the actions specified in paragraphs (j)(1) and (j)(2) of this level of safety may be used for any repair specified in paragraphs (h)(1) and (h)(2) of AD. required by this AD if it is approved by the this AD. (1) Repeat the HFEC inspections of the Boeing Commercial Airplanes Organization (1) Do the detailed and HFEC inspections replaced upper deck floor beam chords Designation Authorization (ODA) that has of the replaced upper deck floor beam chords thereafter at the applicable time specified been authorized by the Manager, Seattle within 3,000 flight cycles after the most Table 5 of paragraph 1.E., ‘‘Compliance,’’ of recent inspection, or within 300 flight cycles Boeing Alert Service Bulletin 747–53A2696, ACO, to make those findings. For a repair after the effective date of this AD, whichever Revision 1, dated April 12, 2012. method to be approved, the repair must meet occurs later, and repeat thereafter at the (2) Do the open-hole HFEC inspection and the certification basis of the airplane, and the applicable time specified in Table 2 of chord replacement required by paragraph (i) approval must specifically refer to this AD. paragraph 1.E., ‘‘Compliance,’’ of Boeing of this AD at the applicable time specified in (p) Related Information Alert Service Bulletin 747–53A2696, Table 5 of paragraph 1.E., ‘‘Compliance,’’ of Revision 1, dated April 12, 2012. Boeing Alert Service Bulletin 747–53A2696, (1) For more information about this AD, (2) Do the open-hole HFEC inspection and Revision 1, dated April 12, 2012. Repeat the contact Nathan Weigand, Aerospace chord replacement required by paragraph (g) inspections and replacement, as specified in Engineer, Airframe Branch, ANM–120S, of this AD at the applicable time specified in paragraph (j) of this AD, at the applicable FAA, Seattle Aircraft Certification Office Table 2 of paragraph 1.E., ‘‘Compliance,’’ of time specified in Table 5 of paragraph 1.E., (ACO), 1601 Lind Avenue SW., Renton, Boeing Alert Service Bulletin 747–53A2696, ‘‘Compliance,’’ of Boeing Alert Service Washington 98057–3356; phone: 425–917– Revision 1, dated April 12, 2012, or within Bulletin 747–53A2696, Revision 1, dated 6428; fax: 425–917–6590; email: 240 flight cycles after the effective date of April 12, 2012. this AD, whichever occurs later. Repeat the [email protected]. inspections and replacement specified in (k) Corrective Actions (2) Service information identified in this paragraph (h) of this AD at the applicable If any cracking is found during any AD that is not incorporated by reference is time specified in Table 2 of paragraph 1.E., inspection required by this AD, before further available at the addresses specified in ‘‘Compliance,’’ of Boeing Alert Service flight, repair using a method approved in paragraphs (q)(3) and (q)(4) of this AD. Bulletin 747–53A2696, Revision 1, dated accordance with the procedures specified in (q) Material Incorporated by Reference April 12, 2012. paragraph (o) of this AD. (1) The Director of the Federal Register (i) Inspection and Replacement for the (l) Exception to Service Information approved the incorporation by reference Upper Chords of the Upper Deck Floor Beam Specifications of Section 42 (IBR) of the service information listed in this Where Boeing Alert Service Bulletin 747– paragraph under 5 U.S.C. 552(a) and 1 CFR At the applicable time specified in Tables 53A2696, Revision 1, dated April 12, 2012, part 51. 3 and 4 of paragraph 1.E., ‘‘Compliance,’’ of specifies a compliance time ‘‘after the (2) You must use this service information Boeing Alert Service Bulletin 747–53A2696, revision 1 date on this service bulletin,’’ this as applicable to do the actions required by Revision 1, dated April 12, 2012, except as AD requires compliance within the specified required by paragraph (l) of this AD: Do the compliance time ‘‘after the effective date of this AD, unless the AD specifies otherwise. actions specified in paragraph (i)(1) or (i)(2) this AD.’’ (i) Boeing Alert Service Bulletin 747– of this AD as applicable. 53A2696, Revision 1, dated April 12, 2012. (1) At STA 540 through STA 740 for Group (m) Credit for Previous Actions (ii) Reserved. 1 airplanes identified in Boeing Alert Service This paragraph provides credit for the (3) For service information identified in Bulletin 747–53A2696, Revision 1, dated installation of floor beam replacements this AD, contact Boeing Commercial April 12, 2012: Do an open-hole HFEC required by this AD, if those actions were Airplanes, Attention: Data & Services inspection to detect cracking, and install new performed before the effective date of this AD Management, P.O. Box 3707, MC 2H–65, upper deck floor beam upper chord using Boeing Alert Service Bulletin 747– Seattle, WA 98124–2207; telephone 206– replacements, in accordance with Part 7 and 53A2696, dated October 16, 2008. (This 544–5000, extension 1; fax 206–766–5680; Part 8 of the Accomplishment Instructions of service bulletin was incorporated by Boeing Alert Service Bulletin 747–53A2696, reference in AD 2010–03–05, Amendment Internet https://www.myboeingfleet.com. Revision 1, dated April 12, 2012. 39–16188 (75 FR 5692, February 4, 2010)). (4) You may view this service information (2) At STA 540 through STA 780 for Group at FAA, Transport Airplane Directorate, 1601 2 airplanes identified in Boeing Alert Service (n) Special Flight Permit Lind Avenue SW., Renton, WA. For Bulletin 747–53A2696, Revision 1, dated Special flight permits, as described in information on the availability of this April 12, 2012: Do an open-hole HFEC Section 21.197 and Section 21.199 of the material at the FAA, call 425–227–1221. inspection to detect cracking, and install new Federal Aviation Regulations (14 CFR 21.197 (5) You may view this service information upper deck floor beam upper chord and 21.199), are not allowed. that is incorporated by reference at the replacements, in accordance with Part 7 and (o) Alternative Methods of Compliance National Archives and Records Part 8 of the Accomplishment Instructions of (AMOCs) Administration (NARA). For information on Boeing Alert Service Bulletin 747–53A2696, Revision 1, dated April 12, 2012. (1) The Manager, Seattle Aircraft the availability of this material at NARA, call Certification Office (ACO), FAA, has the 202–741–6030, or go to: http:// (j) Post-Replacement Inspections and authority to approve AMOCs for this AD, if www.archives.gov/federal-register/cfr/ibr- Replacement for the Upper Chords of the requested using the procedures found in 14 locations.html. Upper Deck Floor Beam of Section 42 CFR 39.19. In accordance with 14 CFR 39.19, Issued in Renton, Washington, on At the applicable time specified in Table send your request to your principal inspector 5 of paragraph 1.E., ‘‘Compliance,’’ of Boeing or local Flight Standards District Office, as September 20, 2014. Alert Service Bulletin 747–53A2696, appropriate. If sending information directly Michael Kaszycki, Revision 1, dated April 12, 2012; or within to the manager of the ACO, send it to the Acting Manager, Transport Airplane 1,500 flight cycles after March 11, 2010 (the attention of the persons identified in Directorate, Aircraft Certification Service. effective date of AD 2010–03–05, paragraph (p)(1) of this AD. Information may [FR Doc. 2014–23377 Filed 10–2–14; 8:45 am] Amendment 39–16188 (75 FR 5692, February be emailed to: 9-ANM-Seattle-ACO-AMOC- 4, 2010)); whichever occurs later: Do HFEC [email protected]. BILLING CODE 4910–13–P inspections to detect cracking of the replaced (2) Before using any approved AMOC, upper deck floor beam chords, in accordance notify your appropriate principal inspector, with Part 9 of the Accomplishment or lacking a principal inspector, the manager

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DEPARTMENT OF TRANSPORTATION telephone +33 5 61 93 36 96; fax +33 5 detailed inspection is accomplished and 61 93 44 51; email account.airworth- on condition of no crack findings, this Federal Aviation Administration [email protected]; Internet http:// AD allows operators to remove the four www.airbus.com. You may view this titanium angles, perform a rototest for 14 CFR Part 39 referenced service information at the cracking on the open holes and, [Docket No. FAA–2014–0058; Directorate FAA, Transport Airplane Directorate, provided no cracks are found on the Identifier 2013–NM–116–AD; Amendment 1601 Lind Avenue SW., Renton, WA. open holes, install new titanium angles, 39–17977; AD 2014–20–04] For information on the availability of followed by post-modification detailed this material at the FAA, call 425–227– inspections of the new titanium angles. RIN 2120–AA64 1221. For any titanium angle crack findings, Airworthiness Directives; Airbus FOR FURTHER INFORMATION CONTACT: this AD requires removing any cracked Airplanes Sanjay Ralhan, Aerospace Engineer, angle, performing a rototest for cracking International Branch, ANM–116, on the open holes and, provided no AGENCY: Federal Aviation Transport Airplane Directorate, FAA, cracks are found, installing a new Administration (FAA), Department of 1601 Lind Avenue SW., Renton, WA titanium angle, followed by detailed Transportation (DOT). 98057–3356; telephone 425–227–1405; inspections of the new titanium angles. ACTION: Final rule. fax 425–227–1149. For any open hole cracking found SUPPLEMENTARY INFORMATION: during any rototest required by this AD, SUMMARY: We are superseding this AD requires repairing any cracking Airworthiness Directive (AD) 94–12–03 Discussion using a method approved by the for certain Airbus Model A320 series We issued a notice of proposed Manager, International Branch, ANM– airplanes. AD 94–12–03 required rulemaking (NPRM) to amend 14 CFR 116, Transport Airplane Directorate, modification of the belly fairing part 39 to supersede AD 94–12–03, FAA; or the European Aviation Safety structure. This new AD requires Amendment 39–8930 (59 FR 28763, Agency (EASA); or Airbus’s EASA repetitive inspections for cracking of the June 3, 1994). AD 94–12–03 applied to Design Organization Approval (DOA). four titanium angles between the belly Model A320 series airplanes having This AD expands the applicability of fairing and the keel beam side panel, an serial numbers (S/Ns) 003 through 092 AD 94–12–03, Amendment 39–8930 (59 inspection for cracking of the open inclusive. These serial numbers apply to FR 28763, June 3, 1994), to include all holes if any cracking is found in the Model A320–111, –211, and –231 series Airbus Model A318, A319, A320, and titanium angles, and repair or airplanes. The NPRM published in the A321 series airplanes. replacement if necessary; this new AD Federal Register on February 26, 2014 You may examine the MCAI in the also expands the applicability of AD 94– (79 FR 10707). AD docket on the Internet at http:// 12–03. This AD was prompted by The European Aviation Safety Agency www.regulations.gov/ reports of cracks at the lower riveting of (EASA), which is the Technical Agent #!documentDetail;D=FAA-2014-0058- the four titanium angles that connect the for the Member States of the European 0002. Community, has issued EASA belly fairing to the keel beam side Comments panels on both sides of the fuselage. We Airworthiness Directive 2013–0122, are issuing this AD to detect and correct dated June 5, 2013 (referred to after this We gave the public the opportunity to cracking of the titanium angles that as the Mandatory Continuing participate in developing this AD. The connect the belly fairing to the keel Airworthiness Information, or ‘‘the following presents the comments beam side panels on both sides of the MCAI’’), to correct an unsafe condition received on the NPRM (79 FR 10707, fuselage, which could affect the for the specified products. The MCAI February 26, 2014) and the FAA’s structural integrity of the airplane. states: response to each comment. DATES: This AD becomes effective During the fatigue test campaign of the Request To Extend Proposed November 7, 2014. A320 family type design, cracks have been Compliance Time for Inspection of The Director of the Federal Register found at the lower riveting of the four Titanium Angles titanium angles which connect the belly approved the incorporation by reference fairing to the keel beam side panels between Delta Airlines (DAL) requested that of certain publications listed in this AD frames FR40 and FR42, on both sides of the we extend the compliance time for the as of November 7, 2014. fuselage. inspection of the titanium angles The Director of the Federal Register This condition, if not detected and specified in paragraph (h)(3) of the approved the incorporation by reference corrected, could affect the structural integrity proposed AD (79 FR 10707, February of certain other publications listed in of the aeroplane. 26, 2014). DAL stated that extending this AD as of January 10, 1994 (59 FR In 1992, [Direction Ge´ne´rale de l’Aviation Civile] DGAC France issued AD 92–201–030 this compliance time from 3,000 flight 64875, December 10, 1993). (http://ad.easa.europa.eu/blob/19922010tb_ cycles or 6,000 flight hours after the ADDRESSES: You may examine the AD superseded.pdf/AD_F-1992-201-030_1) effective date of this AD, whichever docket on the Internet at http:// (which corresponds to FAA AD 94–12–03, occurs first, to 5,000 flight cycles or www.regulations.gov/ Amendment 39–8930 (59 FR 28763, June 3, 10,000 flight hours, whichever occurs #!docketDetail;D=FAA-2014-0058; or in 1994)) to require reinforcement of the belly first, would match the repetitive interval person at the Docket Management fairing structure, which addressed part of the for the detailed inspection on those unsafe condition. Facility, U.S. Department of For the reason described above, this airplanes that have not had the Transportation, Docket Operations, M– [EASA] AD retains the requirements of DGAC modification accomplished, and it 30, West Building Ground Floor, Room France AD 92–201–030, which is superseded, would give DAL and other operators the W12–140, 1200 New Jersey Avenue SE., and requires repetitive detailed inspections opportunity to schedule these Washington, DC. [for cracking] of the affected titanium angles inspections in a hangar environment. For service information identified in and, depending on findings, repair or We do not agree with the commenter’s this AD, contact Airbus, Airworthiness replacement of parts. request to extend the compliance time Office—EIAS, 1 Rond Point Maurice As an option to extend the repetitive specified in paragraph (h)(3) of this AD. Bellonte, 31707 Blagnac Cedex, France; inspection interval, after the first DAL has not provided data to

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substantiate that extending this developed to correct the unsafe EASA Design Organization Approval compliance time would provide an condition, by requiring that the repair (DOA). acceptable level of safety. This approval provided by the State of The Contacting the Manufacturer compliance time was developed after Design Authority or its delegated agent paragraph also clarifies that, if approved analyzing risk to the fleet, availability of specifically refer to this FAA AD. This by the DOA, the approval must include in-service information and feasibility of change was intended to clarify the the DOA-authorized signature. The DOA performing inspection. We consider the method of compliance and to provide signature indicates that the data and overall risk to the fleet, including the operators with better visibility of repairs information contained in the document severity of the failure and the likelihood that are specifically developed and are EASA-approved, which is also FAA- of the failure’s occurrence, to calculate approved to correct the unsafe approved. Messages and other appropriate compliance times. However, condition. In addition, we proposed to information provided by the under the provisions of paragraph (o)(1) change the phrase ‘‘its delegated agent’’ manufacturer that do not contain the of this AD, we will consider requests for to include a design approval holder DOA-authorized signature approval are approval of an extension of the (DAH) with State of Design Authority not EASA-approved, unless EASA compliance time if sufficient data are design organization approval (DOA), as directly approves the manufacturer’s submitted to substantiate that the applicable, to refer to a DAH authorized message or other information. extension would provide an acceptable to approve required repairs for the This clarification does not remove level of safety. We have not changed proposed AD. flexibility previously afforded by the this final rule in this regard. No comments were provided to the Airworthy Product paragraph. NPRM (79 FR 10707, February 26, 2014) Consistent with long-standing FAA Request To Allow Special Flight Permit policy, such flexibility was never When Cracking Is Found about these proposed changes. However, a comment was provided for an NPRM intended for required actions. This is DAL requested that we add a having Directorate Identifier 2012–NM– also consistent with the provision in the NPRM (79 FR 10707, 101–AD (78 FR 78285, December 26, recommendation of the Airworthiness Directive Implementation Aviation February 26, 2014) to allow operators to 2013). The commenter stated the Rulemaking Committee to increase ferry airplanes with cracking found following: ‘‘The proposed wording, flexibility in complying with ADs by during the inspection specified in being specific to repairs, eliminates the identifying those actions in paragraph (h) of this AD. DAL stated interpretation that Airbus messages are manufacturers’ service instructions that that a ferry flight would allow an acceptable for approving minor are ‘‘Required for Compliance’’ with airplane to be moved to a more suitable deviations (corrective actions) needed ADs. We continue to work with location for maintenance in the event during accomplishment of an AD manufacturers to implement this damage is found. DAL also stated that mandated Airbus service bulletin.’’ the ferry flight is necessary due to the recommendation. But once we This comment has made the FAA extensive level of access and determine that an action is required, any aware that some operators have disassembly. deviation from the requirement must be We agree with the intent behind the misunderstood or misinterpreted the approved as an alternative method of commenter’s request, but find it Airworthy Product paragraph to allow compliance. unnecessary to include a special flight the owner/operator to use messages Other commenters to the NPRM provision in this AD. Special flight provided by the manufacturer as having Directorate Identifier 2012–NM– permits are currently allowed under approval of deviations during the 101–AD (78 FR 78285, December 26, Section 39.23 of the Federal Aviation accomplishment of an AD-mandated 2013) pointed out that in many cases the Regulations (14 CFR 39.23), unless action. The Airworthy Product foreign manufacturer’s service bulletin specifically prohibited or limited by an paragraph does not approve messages or and the foreign authority’s MCAI might AD. No change is necessary to this final other information provided by the have been issued some time before the rule in this regard. manufacturer for deviations to the FAA AD. Therefore, the DOA might requirements of the AD-mandated have provided U.S. operators with an ‘‘Contacting the Manufacturer’’ actions. The Airworthy Product approved repair, developed with full Paragraph in This AD paragraph only addresses the awareness of the unsafe condition, Since late 2006, we have included a requirement to contact the manufacturer before the FAA AD is issued. Under standard paragraph titled ‘‘Airworthy for corrective actions for the identified these circumstances, to comply with the Product’’ in all MCAI ADs in which the unsafe condition and does not cover FAA AD, the operator would be FAA develops an AD based on a foreign deviations from other AD requirements. required to go back to the authority’s AD. However, deviations to AD-required manufacturer’s DOA and obtain a new The MCAI or referenced service actions are addressed in 14 CFR 39.17, approval document, adding time and information in an FAA AD often directs and anyone may request the approval expense to the compliance process with the owner/operator to contact the for an alternative method of compliance no safety benefit. manufacturer for corrective actions, to the AD-required actions using the Based on these comments, we such as a repair. Briefly, the Airworthy procedures found in 14 CFR 39.19. removed the requirement that the DAH- Product paragraph allowed owners/ To address this misunderstanding and provided repair specifically refer to this operators to use corrective actions misinterpretation of the Airworthy AD. Before adopting such a provided by the manufacturer if those Product paragraph, we have changed the requirement, the FAA will coordinate actions were FAA-approved. In paragraph and retitled it ‘‘Contacting the with affected DAHs and verify they are addition, the paragraph stated that any Manufacturer.’’ This paragraph now prepared to implement means to ensure actions approved by the State of Design clarifies that for any requirement in this that their repair approvals consider the Authority (or its delegated agent) are AD to obtain corrective actions from a unsafe condition addressed in this AD. considered to be FAA-approved. manufacturer, the actions must be Any such requirements will be adopted In the NPRM (79 FR 10707, February accomplished using a method approved through the normal AD rulemaking 26, 2014), we proposed to prevent the by the FAA, the European Aviation process, including notice-and-comment use of repairs that were not specifically Safety Agency (EASA), or Airbus’s procedures, when appropriate.

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We also have decided not to include air commerce by prescribing regulations § 39.13 [Amended] a generic reference to either the for practices, methods, and procedures ■ 2. The FAA amends § 39.13 by ‘‘delegated agent’’ or ‘‘DAH with State of the Administrator finds necessary for removing Airworthiness Directive (AD) Design Authority design organization safety in air commerce. This regulation 94–12–03, Amendment 39–8930 (59 FR approval,’’ but instead we have is within the scope of that authority 28763, June 3, 1994), and adding the provided the specific delegation because it addresses an unsafe condition following new AD: approval granted by the State of Design that is likely to exist or develop on 2014–20–04 Airbus: Amendment 39–17977. Authority for the DAH throughout this products identified in this rulemaking Docket No. FAA–2014–0058; Directorate AD. action. Identifier 2013–NM–116–AD. Conclusion Regulatory Findings (a) Effective Date We reviewed the available data, We determined that this AD will not This AD becomes effective November 7, including the comments received, and have federalism implications under 2014 determined that air safety and the Executive Order 13132. This AD will (b) Affected ADs public interest require adopting this not have a substantial direct effect on This AD replaces AD 94–12–03, final rule with the changes described the States, on the relationship between Amendment 39–8930 (59 FR 28763, June 3, previously and minor editorial changes. the national government and the States, 1994). We have determined that these minor or on the distribution of power and (c) Applicability changes: responsibilities among the various • Are consistent with the intent that levels of government. This AD applies to the Airbus airplanes specified in paragraphs (c)(1) through (c)(4) was proposed in the NPRM (79 FR For the reasons discussed above, I 10707, February 26, 2014) for correcting of this AD, certificated in any category, all certify that this AD: manufacturer serial numbers. the unsafe condition; and • 1. Is not a ‘‘significant regulatory (1) Airbus Model A318–111, –112, –121, Do not add any additional burden action’’ under Executive Order 12866; and –122 airplanes. upon the public than was already 2. Is not a ‘‘significant rule’’ under the (2) Airbus Model A319–111, –112, –113, proposed in the NPRM (79 FR 10707, DOT Regulatory Policies and Procedures –114, –115, –131, –132, and –133 airplanes. February 26, 2014). (3) Airbus Model A320–111, –211, –212, (44 FR 11034, February 26, 1979); –214, –231, –232, and –233 airplanes. Costs of Compliance 3. Will not affect intrastate aviation in (4) Airbus Model A321–111, –112, –131, We estimate that this AD affects 851 Alaska; and –211, –212, –213, –231, and –232 airplanes. 4. Will not have a significant airplanes of U.S. registry. (d) Subject The actions that were required by AD economic impact, positive or negative, on a substantial number of small entities Air Transport Association (ATA) of 94–12–03, Amendment 39–8930 (59 FR America Code 53, Fuselage. 28763, June 3, 1994), and retained in under the criteria of the Regulatory this AD take about 288 work-hours per Flexibility Act. (e) Reason product, at an average labor rate of $85 Examining the AD Docket This AD was prompted by reports of cracks per work-hour. Required parts cost at the lower riveting of the four titanium about $1,045 per product. Based on You may examine the AD docket on angles that connect the belly fairing to the these figures, the estimated cost of the the Internet at http:// keel beam side panels on both sides of the fuselage. We are issuing this AD to detect and actions that were required by AD 94– www.regulations.gov/ #!docketDetail;D=FAA-2014-0058; or in correct cracking of the titanium angles that 12–03 is $25,525 per product. connect the belly fairing to the keel beam We also estimate that it will take person at the Docket Management side panels on both sides of the fuselage, about 7 work-hours per product to Facility between 9 a.m. and 5 p.m., which could affect the structural integrity of comply with the basic new Monday through Friday, except Federal the airplane. holidays. The AD docket contains this requirements of this AD. The average (f) Compliance labor rate is $85 per work-hour. Based AD, the regulatory evaluation, any on these figures, we estimate the cost of comments received, and other Comply with this AD within the information. The street address for the compliance times specified, unless already this AD on U.S. operators to be done. $506,345, or $595 per product. Docket Operations office (telephone We have received no definitive data 800–647–5527) is in the ADDRESSES (g) Retained Modification that would enable us to provide cost section. This paragraph restates the requirements of paragraph (a) of AD 94–12–03, Amendment estimates for the on-condition and List of Subjects in 14 CFR Part 39 optional actions specified in this AD. 39–8930 (59 FR 28763, June 3, 1994), with Air transportation, Aircraft, Aviation new service information. For Model A320– Authority for This Rulemaking safety, Incorporation by reference, 111, –211, and –231 series airplanes, Title 49 of the United States Code Safety. manufacturer serial numbers 003 through 092 inclusive: Prior to the accumulation of 12,000 specifies the FAA’s authority to issue Adoption of the Amendment total landings on the airplane, or within 300 rules on aviation safety. Subtitle I, days after January 10, 1994 (the effective date section 106, describes the authority of Accordingly, under the authority of AD 93–24–11, Amendment 39–8760 (58 the FAA Administrator. ‘‘Subtitle VII: delegated to me by the Administrator, FR 64875, December 10, 1993)), whichever Aviation Programs,’’ describes in more the FAA amends 14 CFR part 39 as occurs later, modify the belly fairing detail the scope of the Agency’s follows: structure, in accordance with the authority. Accomplishment Instructions of an Airbus We are issuing this rulemaking under PART 39—AIRWORTHINESS service bulletin specified in paragraph (g)(1), DIRECTIVES (g)(2), or (g)(3) of this AD. As of the effective the authority described in ‘‘Subtitle VII, date of this AD, use only the Airbus service Part A, Subpart III, Section 44701: ■ 1. The authority citation for part 39 bulletin specified in paragraph (g)(3) of this General requirements.’’ Under that AD. section, Congress charges the FAA with continues to read as follows: (1) Airbus Industrie Service Bulletin A320– promoting safe flight of civil aircraft in Authority: 49 U.S.C. 106(g), 40113, 44701. 53–1014, dated June 25, 1992.

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(2) Airbus Industrie Service Bulletin A320– fairing and the keel beam side panel, in the DOA, the approval must include the 53–1014, Revision 1, dated May 26, 1993. accordance with the Accomplishment DOA-authorized signature. (3) Airbus Service Bulletin A320–53–1014, Instructions of Airbus Service Bulletin A320– Revision 2, dated September 1, 1994. 53–1259, dated November 6, 2012. Repeat the (p) Related Information inspection thereafter at intervals not to (h) New Requirement of This AD: Repetitive Refer to Mandatory Continuing exceed 5,000 flight cycles or 10,000 flight Inspection Airworthiness Information (MCAI) European hours, whichever occurs first. Aviation Safety Agency, Airworthiness At the latest of the compliance times Directive 2013–0122, dated June 5, 2013, for specified in paragraphs (h)(1), (h)(2), and (l) New Requirement of This AD: Post (h)(3) of this AD: Do a detailed inspection for Inspection Actions for Any Crack Findings related information. You may examine the cracking of the four titanium angles between During Post-Installation Inspections MCAI in the AD docket on the Internet at the belly fairing and the keel beam side If, during any inspection as required by http://www.regulations.gov/ panel, in accordance with the paragraph (k) of this AD, there is any crack #!documentDetail;D=FAA-2014-0058-0002. Accomplishment Instructions of Airbus finding: Before further flight, remove the (q) Material Incorporated by Reference Service Bulletin A320–53–1259, dated affected titanium angles, accomplish a November 6, 2012. rototest for cracking on the open holes, and, (1) The Director of the Federal Register (1) Before the accumulation of 30,000 total provided no cracks are found, install new approved the incorporation by reference flight cycles or 60,000 total flight hours, titanium angles, in accordance with the (IBR) of the service information listed in this whichever occurs first after first flight of the Accomplishment Instructions of Airbus paragraph under 5 U.S.C. 552(a) and 1 CFR airplane. Service Bulletin A320–53–1259, dated part 51. (2) Within 30,000 flight cycles or 60,000 November 6, 2012. (2) You must use this service information flight hours, whichever occurs first after as applicable to do the actions required by modification of the airplane as required by (m) New Requirement of This AD: Corrective paragraph (g) of this AD, or after installation Action for Rototest Crack Finding this AD, unless this AD specifies otherwise. of new titanium angles, provided that, prior (3) The following service information was If, during any rototest as required by approved for IBR on November 7, 2014. to installation, a rototest for cracking on the paragraph (i), (j), or (l) of this AD, any crack (i) Airbus Service Bulletin A320–53–1014, open holes has been accomplished with no is found: Before further flight, repair using a crack findings, in accordance with the method approved by the Manager, Revision 2, dated September 1, 1994, Accomplishment Instructions of Airbus International Branch, ANM–116, Transport including supplementary page 7A. Pages 1– Service Bulletin A320–53–1259, dated Airplane Directorate, FAA; or the European 3, 15, 19, 20, and 25 of this document are November 6, 2012. Aviation Safety Agency (EASA); or Airbus’s identified as Revision 2, dated September 1, (3) Within 3,000 flight cycles or 6,000 EASA Design Organization Approval (DOA). 1994; pages 4–8, 10, 12, 16–18, and 21–24 are flight hours, whichever occurs first after the identified as Revision 1, dated May 26, 1993; effective date of this AD. (n) New Provision of This AD: No and pages 9, 11, 13, 14, and 26 are identified Termination Action for Repetitive (i) New Requirement of This AD: Post- as the original, dated June 25, 1992. Inspections Inspection Actions for No Crack Findings (ii) Airbus Service Bulletin A320–53–1259, Repair or replacement of parts as specified If, during any inspection required by dated November 6, 2012. in this AD does not terminate the repetitive paragraph (h) of this AD, there is no crack (4) The following service information was inspections required by this AD. finding: Accomplish the actions specified in approved for IBR on January 10, 1994 (59 FR either paragraph (i)(1) or (i)(2) of this AD. (o) Other FAA AD Provisions 64875, December 10, 1993). (1) Repeat the inspection required by The following provisions also apply to this (i) Airbus Industrie Service Bulletin A320– paragraph (h) of this AD at intervals not to AD: 53–1014, dated June 25, 1992. exceed 5,000 flight cycles or 10,000 flight (1) Alternative Methods of Compliance (ii) Airbus Industrie Service Bulletin hours, whichever occurs first (AMOCs): The Manager, International A320–53–1014, Revision 1, dated May 26, (2) Before further flight after the inspection Branch, ANM–116, Transport Airplane 1993. required by paragraph (h) of this AD, remove Directorate, FAA, has the authority to (5) For service information identified in all inspected titanium angles, accomplish a approve AMOCs for this AD, if requested rototest for cracking on the open holes and, this AD, contact Airbus, Airworthiness using the procedures found in 14 CFR 39.19. provided no cracks are found, install new Office—EIAS, 1 Rond Point Maurice In accordance with 14 CFR 39.19, send your titanium angles, in accordance with the Bellonte, 31707 Blagnac Cedex, France; request to your principal inspector or local Accomplishment Instructions of Airbus telephone +33 5 61 93 36 96; fax +33 5 61 Flight Standards District Office, as Service Bulletin A320–53–1259, dated 93 44 51; email account.airworth-eas@ appropriate. If sending information directly November 6, 2012. airbus.com; Internet http://www.airbus.com. to the International Branch, send it to ATTN: (6) You may view this service information (j) New Requirement of This AD: Post- Sanjay Ralhan, Aerospace Engineer, Inspection Actions for Any Crack Findings International Branch, ANM–116, Transport at the FAA, Transport Airplane Directorate, Airplane Directorate, FAA, 1601 Lind 1601 Lind Avenue SW., Renton, WA. For If, during any inspection required by information on the availability of this paragraph (h) of this AD, there is any crack Avenue SW., Renton, WA 98057–3356; material at the FAA, call 425–227–1221. finding: Before further flight, remove the telephone 425–227–1405; fax 425–227–1149. affected titanium angle(s), accomplish a Information may be emailed to: 9-ANM-116- (7) You may view this service information rototest for cracking on the open holes, and, [email protected]. Before using that is incorporated by reference at the provided no cracks are found, install new any approved AMOC, notify your appropriate National Archives and Records titanium angles, in accordance with the principal inspector, or lacking a principal Administration (NARA). For information on Accomplishment Instructions of Airbus inspector, the manager of the local flight the availability of this material at NARA, call Service Bulletin A320–53–1259, dated standards district office/certificate holding 202–741–6030, or go to: http:// November 6, 2012. district office. www.archives.gov/federal-register/cfr/ibr- (2) Contacting the Manufacturer: As of the locations.html. (k) New Requirement of This AD: Post- effective date of this AD, for any requirement Installation Repetitive Inspections in this AD to obtain corrective actions from Issued in Renton, Washington, on For airplanes on which new titanium a manufacturer, the action must be September 19, 2014. angles were installed as specified in accomplished using a method approved by Jeffrey E. Duven, the Manager, International Branch, ANM– paragraph (i)(2) or (j) of this AD: Within Manager, Transport Airplane Directorate, 116, Transport Airplane Directorate, FAA; or 30,000 flight cycles or 60,000 flight hours, Aircraft Certification Service. whichever occurs first after the installation, the European Aviation Safety Agency accomplish a detailed inspection for cracking (EASA); or Airbus’s EASA Design [FR Doc. 2014–23139 Filed 10–2–14; 8:45 am] of the four titanium angles between the belly Organization Approval (DOA). If approved by BILLING CODE 4910–13–P

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DEPARTMENT OF TRANSPORTATION • Hand Delivery: U.S. Department of causing a shift of the electrical harness and Transportation, Docket Operations, M– its seals. Federal Aviation Administration 30, West Building Ground Floor, Room Available data indicates that on a hot day, W12–140, 1200 New Jersey Avenue SE., due to the heat generated by the taxi light 14 CFR Part 39 and/or landing lights on the ground, Washington, DC, between 9 a.m. and 5 temperature in the landing light [Docket No. FAA–2014–0650; Directorate p.m., Monday through Friday, except compartment can reach the fuel auto ignition Identifier 2014–NM–162–AD; Amendment Federal holidays. temperature. Therefore, presence of any fuel 39–17974; AD 2014–20–01] For service information identified in in the right hand landing light compartment this AD, contact Bombardier, Inc., 400 is considered to be a safety hazard [fuel or RIN 2120–AA64 Coˆte-Vertu Road West, Dorval, Que´bec fumes present in the right-hand landing H4S 1Y9, Canada; telephone 514–855– lights compartment might ignite] that Airworthiness Directives; Bombardier, warrants mitigating action. Inc. Airplanes 5000; fax 514–855–7401; email thd.crj@ aero.bombardier.com. You may view In order to help mitigate the potential safety hazard precipitated by any fuel leakage AGENCY: Federal Aviation this referenced service information at in the right hand landing light compartment, Administration (FAA), Department of the FAA, Transport Airplane Bombardier Inc., has revised the Aircraft Transportation (DOT). Directorate, 1601 Lind Avenue SW., Flight Manual (AFM) through Temporary ACTION: Final rule; request for Renton, WA. For information on the Revisions (TRs) 604/38 and 605/20 dated 16 comments. availability of this material at the FAA, June 2014 to restrict the operation of Taxi call 425–227–1221. and Landing lights on the ground. Transport SUMMARY: We are adopting a new Canada issued Emergency [Canadian] AD airworthiness directive (AD) for certain Examining the AD Docket CF–2014–17 [(http://wwwapps3.tc.gc.ca/Saf- Bombardier, Inc. Model CL–600–2B16 You may examine the AD docket on Sec-Sur/2/cawis-swimn/ (CL–601–3A, CL–601–3R, and CL–604 attachment.asp?aiid=CF-2014- the Internet at http:// 17&revid=0&cntr=CF&file=CFCF-2014- Variants) airplanes. This AD requires www.regulations.gov by searching for repetitive inspections for any fuel leak 17.pdf&type=PDE), which corresponds to and locating Docket No. FAA–2014– FAA AD 2014–15–17, Amendment 39–17919 in the right-hand landing lights 0650; or in person at the Docket (79 FR 44268, July 31, 2014)] to mandate compartment, and related investigative Operations office between 9 a.m. and 5 incorporation of the above AFM TRs. and corrective actions if necessary. This p.m., Monday through Friday, except To address the root cause of the subject AD also provides for an optional Federal holidays. The AD docket fuel leakage from the APU fuel boost pump replacement of the connector of the fuel contains this AD, the regulatory canister wiring conduit, Bombardier Inc. boost pump canister of the auxiliary evaluation, any comments received, and issued Alert Service Bulletin (ASB) A605– 28–008 that requires periodic [repetitive power unit (APU), which terminates the other information. The street address for repetitive inspections. This AD was general visual] inspection[s] for fuel leaks the Docket Operations office (telephone and [applicable related investigative and prompted by a report of fuel leaks in the 800–647–5527) is in the ADDRESSES connector cavity of the APU fuel boost corrective actions and] eventual the section. Comments will be available in replacement of the discrepant fuel BP pump canister and at the electrical the AD docket shortly after receipt. canister connectors [including related conduit connection of the APU fuel FOR FURTHER INFORMATION CONTACT: investigative and corrective actions] on boost pump in the right-hand landing Assata Dessaline, Aerospace Engineer, affected aeroplanes. The ASB has been lights compartment. We are issuing this Avionics and Services Branch, ANE– revised to include an additional inspection of AD to detect and correct fuel leaks in the new connector wiring for damage and 172, FAA, New York Aircraft the right-hand landing lights this [Canadian] AD is issued to mandate the Certification Office (ACO), 1600 Stewart compartment, which, in combination compliance with ASB A605–28–008 Revision Avenue, Suite 410, Westbury, NY with the heat generated by the taxi 2 requirements. 11590; telephone 516–228–7301; fax lights and landing lights on the ground Related investigative actions include 516–794–5531. reaching the auto-ignition temperature doing a general visual inspection for any of the fuel, could result in ignition of SUPPLEMENTARY INFORMATION: fuel leak in the wiring conduit of the any fuel or fumes present in the right- Discussion APU fuel boost pump in the right-hand hand landing lights compartment. Transport Canada Civil Aviation landing lights compartment; a detailed DATES: This AD becomes effective (TCCA), which is the aviation authority inspection for damage of the O-rings of October 20, 2014. for Canada, has issued Canadian the fuel pump cartridge; and a detailed The Director of the Federal Register Airworthiness Directive CF–2014–21, inspection of the wires under the wiring approved the incorporation by reference dated July 10, 2014 (referred to after this insulation sleeve of the new connector of a certain publication listed in this AD as the Mandatory Continuing for cuts. Corrective actions include as of October 20, 2014. Airworthiness Information, or ‘‘the installing new packings on the APU fuel We must receive comments on this MCAI’’), to correct an unsafe condition pump cartridge, replacing the connector AD by November 17, 2014. for certain Bombardier, Inc. Model CL– on the APU fuel pump canister, and ADDRESSES: You may send comments, 600–2B16 (CL–601–3A, CL–601–3R, and replacing wiring and O-rings if certain using the procedures found in 14 CFR CL–604 Variants) airplanes. The MCAI conditions are found. You may examine 11.43 and 11.45, by any of the following states: the MCAI on the Internet at http:// methods: www.regulations.gov by searching for • Federal eRulemaking Portal: Go to Bombardier Inc. has discovered fuel and locating Docket No. FAA–2014– http://www.regulations.gov. Follow the leakage in the auxiliary power unit (APU) 0650. instructions for submitting comments. fuel Boost Pump (BP) canister connector cavity. On some of those aeroplanes, leakage • Fax: 202–493–2251. Relevant Service Information • was also noticed at the APU fuel BP electrical Mail: U.S. Department of conduit connection in the right hand landing Bombardier, Inc. has issued Transportation, Docket Operations, M– light compartment. The root cause of the Bombardier Alert Service Bulletin 30, West Building Ground Floor, Room subject fuel leak is identified to be the A605–28–008, Revision 02, dated July 9, W12–140, 1200 New Jersey Avenue SE., improper length of the female connector 2014. The actions described in this Washington, DC 20590. keyway located in the fuel BP canister, service information are intended to

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correct the unsafe condition identified landing lights compartment, in In addition, we estimate that any in the MCAI. combination with the heat generated by necessary follow-on actions will take the taxi lights and landing lights on the about 22 work-hours and require parts Other Relevant Rulemaking ground reaching the auto-ignition costing $0, for a cost of $1,870 per On July 24, 2014, the FAA issued AD temperature of the fuel, could result in product. We have no way of 2014–15–17, Amendment 39–17919 (79 ignition of any fuel or fumes present in determining the number of aircraft that FR 44268, July 31, 2014), for certain the right-hand landing lights might need these actions. Bombardier, Inc. Model CL–600–2B16 compartment. Therefore, we determined According to the manufacturer, some (CL–604 Variant) airplanes. AD 2014– that notice and opportunity for public 15–17 requires revising the airplane of the costs of this AD may be covered comment before issuing this AD are under warranty, thereby reducing the flight manual to incorporate temporary impracticable and that good cause exists cost impact on affected individuals. We revisions that introduce additional for making this amendment effective in do not control warranty coverage for limitations for operation of taxi and fewer than 30 days. landing lights. AD 2014–15–17 requires affected individuals. As a result, we revising the airplane flight manual only Comments Invited have included all costs in our cost for Bombardier, Inc. Model CL–600– This AD is a final rule that involves estimate. 2B16 (CL–604 Variant) airplanes, serial requirements affecting flight safety, and Authority for This Rulemaking numbers 5301 through 5665 inclusive, we did not precede it by notice and and 5701 and subsequent. This AD opportunity for public comment. We Title 49 of the United States Code requires repetitive inspections for any invite you to send any written relevant specifies the FAA’s authority to issue fuel leak in the right-hand landing lights data, views, or arguments about this AD. rules on aviation safety. Subtitle I, compartment, and related investigative Send your comments to an address section 106, describes the authority of and corrective actions if necessary, for listed under the ADDRESSES section. the FAA Administrator. ‘‘Subtitle VII: Bombardier, Inc. Model CL–600–2B16 Include ‘‘Docket No. FAA–2014–0650; Aviation Programs,’’ describes in more (CL–601–3A, CL–601–3R, and CL–604 Directorate Identifier 2014–NM–162– detail the scope of the Agency’s Variants) airplanes, serial numbers AD’’ at the beginning of your comments. authority. 5906, 5910, 5912, 5917, 5919 through We specifically invite comments on the We are issuing this rulemaking under 5932 inclusive, 5934, 5935, 5939, 5940, overall regulatory, economic, the authority described in ‘‘Subtitle VII, 5942, and 5948. environmental, and energy aspects of Part A, Subpart III, Section 44701: this AD. We will consider all comments FAA’s Determination and Requirements General requirements.’’ Under that received by the closing date and may of This AD section, Congress charges the FAA with amend this AD based on those This product has been approved by promoting safe flight of civil aircraft in comments. air commerce by prescribing regulations the aviation authority of another We will post all comments we for practices, methods, and procedures country, and is approved for operation receive, without change, to http:// the Administrator finds necessary for in the United States. Pursuant to our www.regulations.gov, including any safety in air commerce. This regulation bilateral agreement with the State of personal information you provide. We Design Authority, we have been notified will also post a report summarizing each is within the scope of that authority of the unsafe condition described in the substantive verbal contact we receive because it addresses an unsafe condition MCAI and service information about this AD. that is likely to exist or develop on referenced above. We are issuing this products identified in this rulemaking AD because we evaluated all pertinent Interim Action action. information and determined the unsafe This AD is considered to be interim Regulatory Findings condition exists and is likely to exist or action. We are currently considering develop on other products of the same requiring a replacement of the connector We determined that this AD will not type design. of the fuel boost pump canister of the have federalism implications under APU, and applicable related Executive Order 13132. This AD will Differences Between This AD and the investigative and corrective actions, not have a substantial direct effect on MCAI or Service Information which will constitute terminating action the States, on the relationship between The MCAI and Bombardier Alert for the repetitive inspections required the national government and the States, Service Bulletin A605–28–008, Revision by this AD action. However, the or on the distribution of power and 02, dated July 9, 2014, do not specify planned compliance time for the responsibilities among the various corrective actions if any cut is found on replacement would allow enough time levels of government. the wires or if any damage is found on to provide notice and opportunity for For the reasons discussed above, I the O-rings during certain related prior public comment on the merits of certify that this AD: investigative actions. This AD requires the replacement and applicable related that a replacement be done using a investigative and corrective actions. 1. Is not a ‘‘significant regulatory method approved by the FAA, TCCA, or action’’ under Executive Order 12866; Costs of Compliance Bombardier, Inc.’s TCCA Design 2. Is not a ‘‘significant rule’’ under the Approval Organization (DAO). We estimate that this AD affects 92 DOT Regulatory Policies and Procedures airplanes of U.S. registry. (44 FR 11034, February 26, 1979); FAA’s Determination of the Effective We also estimate that it will take Date about 2 work-hours per product to 3. Will not affect intrastate aviation in An unsafe condition exists that comply with the basic requirements of Alaska; and requires the immediate adoption of this this AD. The average labor rate is $85 4. Will not have a significant AD. The FAA has found that the risk to per work-hour. Based on these figures, economic impact, positive or negative, the flying public justifies waiving notice we estimate the cost of this AD on U.S. on a substantial number of small entities and comment prior to adoption of this operators to be $15,640, or $170 per under the criteria of the Regulatory rule because fuel leaks in the right-hand product. Flexibility Act.

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List of Subjects in 14 CFR Part 39 Bombardier Alert Service Bulletin A605–28– (k) Credit for Previous Actions 008, Revision 02, dated July 9, 2014, except This paragraph provides credit for actions Air transportation, Aircraft, Aviation as required by paragraph (h) of this AD. Do safety, Incorporation by reference, required by paragraph (i) of this AD, if those all applicable related investigative and actions were performed before the effective Safety. corrective actions before further flight. date of this AD using Bombardier Alert Adoption of the Amendment Repeat the inspection thereafter at intervals Service Bulletin A605–28–008, Revision 01, not to exceed 8 flight hours until the dated May 28, 2014, which is not Accordingly, under the authority replacement specified in paragraph (i) of this incorporated by reference in this AD. delegated to me by the Administrator, AD has been accomplished. the FAA amends 14 CFR part 39 as (l) Other FAA AD Provisions follows: (h) Corrective Action if Fuel Leak Is Found The following provisions also apply to this During Related Investigative Actions AD: PART 39—AIRWORTHINESS If any fuel leak is found during the related (1) Alternative Methods of Compliance DIRECTIVES investigative actions required by paragraph (AMOCs): The Manager, New York ACO, (g) of this AD: Before further flight, do the ANE–170, FAA, has the authority to approve ■ 1. The authority citation for part 39 terminating action specified in paragraph (i) AMOCs for this AD, if requested using the procedures found in 14 CFR 39.19. In continues to read as follows: of this AD, or repair using a method approved by the Manager, New York Aircraft accordance with 14 CFR 39.19, send your Authority: 49 U.S.C. 106(g), 40113, 44701. Certification Office (ACO), ANE–170, Engine request to your principal inspector or local Flight Standards District Office, as and Propeller Directorate, FAA; or Transport § 39.13 [Amended] appropriate. If sending information directly Canada Civil Aviation (TCCA); or ■ 2. The FAA amends § 39.13 by adding to the ACO, send it to ATTN: Program Bombardier, Inc.’s TCCA Design Approval Manager, Continuing Operational Safety, the following new airworthiness Organization (DAO). directive (AD): FAA, New York ACO, 1600 Stewart Avenue, (i) Optional Terminating Action— Suite 410, Westbury, NY 11590; telephone 2014–20–01 Bombardier, Inc.: Amendment Replacement 516–228–7300; fax 516–794–5531. Before 39–17974. Docket No. FAA–2014–0650; using any approved AMOC, notify your Directorate Identifier 2014–NM–162–AD. Replacing the connector of the fuel boost appropriate principal inspector, or lacking a pump canister of the APU and doing all principal inspector, the manager of the local (a) Effective Date applicable related investigative actions, in flight standards district office/certificate This AD becomes effective October 20, accordance with Part B of the holding district office. The AMOC approval 2014. Accomplishment Instructions of Bombardier letter must specifically reference this AD. Alert Service Bulletin A605–28–008, (2) Contacting the Manufacturer: For any (b) Affected ADs Revision 02, dated July 9, 2014, terminates requirement in this AD to obtain corrective None. the actions required by paragraph (g) of this actions from a manufacturer, the action must AD provided that the following actions are (c) Applicability be accomplished using a method approved done, as applicable. by the Manager, New York ACO, ANE–170, This AD applies to Bombardier, Inc. Model (1) If any damage (cuts) is found on the Engine and Propeller Directorate, FAA; or CL–600–2B16 (CL–601–3A, CL–601–3R, and wires, before further flight, replace the wire TCCA; or Bombardier, Inc.’s TCCA DAO. If CL–604 Variants) airplanes, certificated in with a new wire identified in kit 605K28– approved by the DAO, the approval must any category, serial numbers 5906, 5910, 008A, in accordance with the include the DAO-authorized signature. 5912, 5917, 5919 through 5932 inclusive, Accomplishment Instructions of Bombardier (m) Related Information 5934, 5935, 5939, 5940, 5942, and 5948. Alert Service Bulletin A605–28–008, (1) Refer to Mandatory Continuing (d) Subject Revision 02, dated July 9, 2014. (2) If any damage is found on the O-rings, Airworthiness Information (MCAI) Canadian Air Transport Association (ATA) of before further flight, replace the O-ring with Airworthiness Directive CF–2014–21, dated America Code 28, Fuel. a new O-ring, in accordance with the July 10, 2014, for related information. You may examine the MCAI on the Internet at (e) Reason Accomplishment Instructions of Bombardier Alert Service Bulletin A605–28–008, http://www.regulations.gov by searching for This AD was prompted by a report of fuel and locating Docket No. FAA–2014–0650. Revision 02, dated July 9, 2014. leaks in the auxiliary power unit (APU) fuel (2) Service information identified in this (3) If any fuel leak is found, before further boost pump canister connector cavity and in AD that is not incorporated by reference is flight, repair using a method approved by the the right-hand landing lights compartment available at the addresses specified in Manager, New York ACO, ANE–170, Engine from the APU fuel boost pump electrical paragraphs (n)(3) and (n)(4) of this AD. conduit connection. We are issuing this AD and Propeller Directorate, FAA; or TCCA; or to detect and correct fuel leaks in the right- Bombardier, Inc.’s TCCA DAO. (n) Material Incorporated by Reference hand landing lights compartment, which, in (j) Inspection of Connector Wiring (1) The Director of the Federal Register combination with the heat generated by the approved the incorporation by reference taxi lights and landing lights on the ground For airplanes having new connectors (IBR) of the service information listed in this reaching the auto-ignition temperature of the installed in accordance with Part B of the paragraph under 5 U.S.C. 552(a) and 1 CFR fuel, could result in ignition of any fuel or Accomplishment Instructions of Bombardier part 51. fumes present in the right-hand landing Alert Service Bulletin A605–28–008, dated (2) You must use this service information lights compartment. April 21, 2014: Within 6 months or 150 flight as applicable to do the actions required by hours after the effective date of this AD, this AD, unless this AD specifies otherwise. (f) Compliance whichever occurs first, do a detailed (i) Bombardier Alert Service Bulletin Comply with this AD within the inspection for damage (cuts) of the connector A605–28–008, Revision 02, dated July 9, compliance times specified, unless already wiring, in accordance with Part B of the 2014. done. Accomplishment Instructions of Bombardier (ii) Reserved. Alert Service Bulletin A605–28–008, (3) For service information identified in (g) Repetitive Inspections for Fuel Leaks Revision 02, dated July 9, 2014. If any this AD, contact Bombardier, Inc., 400 Coˆte- Within 25 flight hours after the effective damage (cuts) is found on the wires, before Vertu Road West, Dorval, Que´bec H4S 1Y9, date of this AD: Do a general visual further flight, replace the wire with a new Canada; telephone 514–855–5000; fax 514– inspection for any fuel leak in the right-hand wire identified in kit 605K28–008A, in 855–7401; email thd.crj@ landing lights compartment, and do all accordance with the Accomplishment aero.bombardier.com; Internet http:// applicable related investigative and Instructions of Bombardier Alert Service www.bombardier.com. corrective actions, in accordance with Part A Bulletin A605–28–008, Revision 02, dated (4) You may view this service information of the Accomplishment Instructions of July 9, 2014. at the FAA, Transport Airplane Directorate,

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1601 Lind Avenue SW., Renton, WA. For actions if necessary. We are issuing this part 39 by adding an AD that would information on the availability of this AD to detect and correct cracked or apply to certain Lockheed Martin material at the FAA, call 425–227–1221. damaged rib cap castellations, which Corporation/Lockheed Martin (5) You may view this service information could degrade the structural capabilities Aeronautics Company Model L–1011 that is incorporated by reference at the of the airplane. National Archives and Records series airplanes. The NPRM published Administration (NARA). For information on DATES: This AD is effective November 7, in the Federal Register on May 29, 2014 the availability of this material at NARA, call 2014. (79 FR 30748). The NPRM was 202–741–6030, or go to: http:// The Director of the Federal Register prompted by reports of cracked rib cap www.archives.gov/federal-register/cfr/ibr- approved the incorporation by reference castellations. The NPRM proposed to locations.html. of a certain publication listed in this AD require repetitive inspections for Issued in Renton, Washington, on as of November 7, 2014. castellation and skin clips cracked or September 19, 2014. ADDRESSES: For service information damaged between stringers and cracked Michael Kaszycki, identified in this AD, contact Lockheed stringer clips of the wing box pylon Acting Manager, Transport Airplane Martin Corporation/Lockheed Martin back-up structure, and front spar to rear Directorate, Aircraft Certification Service. Aeronautics Company, L1011 Technical spar; repetitive inspections for cracking, [FR Doc. 2014–23145 Filed 10–2–14; 8:45 am] Support Center, Dept. 6A4M, Zone damage, or failure of the pylon back-up BILLING CODE 4910–13–P 0579, 86 South Cobb Drive, Marietta, torque box structure; repetitive GA 30063–0579; telephone 770–494– inspections for cracking or damage of 5444; fax 770–494–5445; email the wing box external areas at the drag DEPARTMENT OF TRANSPORTATION [email protected]; Internet brace aft wing fitting; repetitive http://www.lockheedmartin.com/ams/ inspections of the outer surface of the Federal Aviation Administration tools/TechPubs.html. You may view this wing upper and lower skins for cracks referenced service information at the or damage along the rib attachment at 14 CFR Part 39 FAA, Transport Airplane Directorate, the fastener holes and between the two rows of attachment; and corrective [Docket No. FAA–2014–0290; Directorate 1601 Lind Avenue SW., Renton, WA. Identifier 2012–NM–210–AD; Amendment For information on the availability of actions if necessary. We are issuing this 39–17981; AD 2014–20–08] this material at the FAA, call 425–227– AD to detect and correct cracked or 1221. damaged rib cap castellations, which RIN 2120–AA64 could degrade the structural capabilities Examining the AD Docket of the airplane. Airworthiness Directives; Lockheed You may examine the AD docket on Martin Corporation/Lockheed Martin the Internet at http:// Comments Aeronautics Company Airplanes www.regulations.gov by searching for We gave the public the opportunity to AGENCY: Federal Aviation and locating Docket No. FAA–2014– participate in developing this AD. We Administration (FAA), DOT. 0290; or in person at the Docket received no comments on the NPRM (79 ACTION: Final rule. Management Facility between 9 a.m. FR 30748, May 29, 2014) or on the and 5 p.m., Monday through Friday, determination of the cost to the public. SUMMARY: We are adopting a new except Federal holidays. The AD docket airworthiness directive (AD) for certain contains this AD, the regulatory Conclusion Lockheed Martin Corporation/Lockheed evaluation, any comments received, and We reviewed the relevant data and Martin Aeronautics Company Model L– other information. The address for the determined that air safety and the 1011 series airplanes. This AD was Docket Office (phone: 800–647–5527) is public interest require adopting this AD prompted by reports of cracked rib cap Docket Management Facility, U.S. as proposed except for minor editorial castellations. This AD requires Department of Transportation, Docket changes. We have determined that these repetitive inspections for castellation Operations, M–30, West Building minor changes: and skin clips cracked or damaged Ground Floor, Room W12–140, 1200 • Are consistent with the intent that between stringers and cracked stringer New Jersey Avenue SE., Washington, was proposed in the NPRM (79 FR clips of the wing box pylon back-up DC 20590. 30748, May 29, 2014) for correcting the structure, and front spar to rear spar; FOR FURTHER INFORMATION CONTACT: Carl unsafe condition; and repetitive inspections for cracking, Gray, Aerospace Engineer, Airframe • damage, or failure of the pylon back-up Branch, ACE–117A, FAA, Atlanta Do not add any additional burden torque box structure; repetitive Aircraft Certification Office (ACO), 1701 upon the public than was already inspections for cracking or damage of Columbia Avenue, College Park, GA proposed in the NPRM (79 FR 30748, the wing box external areas at the drag 30337; phone: 404–474–5554; fax: 404– May 29, 2014). brace aft wing fitting; repetitive 474–5605; email: [email protected]. Costs of Compliance inspections of the outer surface of the SUPPLEMENTARY INFORMATION: wing upper and lower skins for cracks We estimate that this AD affects 26 or damage along the rib attachment at Discussion airplanes of U.S. registry. the fastener holes and between the two We issued a notice of proposed We estimate the following costs to rows of attachment; and corrective rulemaking (NPRM) to amend 14 CFR comply with this AD:

ESTIMATED COSTS

Action Labor cost Parts cost Cost per product Cost on U.S. operators

Inspections ...... 41 work-hours × $85 per hour = $3,485 per $0 $3,485 per inspection cycle .. $90,610 per inspection cycle. inspection cycle.

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We estimate the following costs to do required based on the results of the determining the number of aircraft that any necessary repairs that would be inspections. We have no way of might need these repairs:

ON-CONDITION COSTS

Action Labor cost Parts cost Cost per product

Modification (up to 12 rib caps per air- 96 work-hours × $85 per hour = $15,000 per rib cap ...... $23,160 per rib cap. plane). $8,160 per rib cap.

Other than the modification stated Regulatory Findings (c) Applicability above, we have received no definitive This AD will not have federalism This AD applies to Lockheed Martin data that would enable us to provide Corporation/Lockheed Martin Aeronautics implications under Executive Order Company Model L–1011–385–1, L–1011– cost estimates for the crack repair 13132. This AD will not have a actions specified in this AD. 385–1–14, L–1011–385–1–15, and L–1011– substantial direct effect on the States, on 385–3 airplanes, certificated in any category, Paperwork Reduction Act the relationship between the national as identified in Lockheed Martin Service government and the States, or on the Bulletin 093–57–207, Revision 5, dated A federal agency may not conduct or distribution of power and November 14, 2008. sponsor, and a person is not required to responsibilities among the various (d) Subject respond to, nor shall a person be subject levels of government. to penalty for failure to comply with a Air Transport Association (ATA) of For the reasons discussed above, I America Code 57, Wings. collection of information subject to the certify that this AD: requirements of the Paperwork (1) Is not a ‘‘significant regulatory (e) Unsafe Condition Reduction Act unless that collection of action’’ under Executive Order 12866, This AD was prompted by reports of information displays a current valid (2) Is not a ‘‘significant rule’’ under cracked rib cap castellations. We are issuing OMB control number. The control this AD to detect and correct cracked or DOT Regulatory Policies and Procedures damaged rib cap castellations, which could number for the collection of information (44 FR 11034, February 26, 1979), required by this AD is 2120–0056. The degrade the structural capabilities of the (3) Will not affect intrastate aviation airplane. paperwork cost associated with this AD in Alaska, and has been detailed in the Costs of (f) Compliance (4) Will not have a significant Compliance section of this document economic impact, positive or negative, Comply with this AD within the and includes time for reviewing compliance times specified, unless already on a substantial number of small entities instructions, as well as completing and done. under the criteria of the Regulatory reviewing the collection of information. Flexibility Act. (g) Repetitive Wing Inspections Therefore, all reporting associated with For Model L–1011–385–1, L–1011–385–1– this AD is mandatory. Comments List of Subjects in 14 CFR Part 39 14, L–1011–385–1–15, and L–1011–385–3 concerning the accuracy of this burden Air transportation, Aircraft, Aviation airplanes, serial numbers 1189 and and suggestions for reducing the burden safety, Incorporation by reference, subsequent: At the applicable compliance time specified in paragraphs (h)(1), (h)(2), should be directed to the FAA at 800 Safety. Independence Ave. SW., Washington, and (h)(3) of this AD, do the inspections DC 20591, ATTN: Information Adoption of the Amendment specified in paragraphs (g)(1) through (g)(4) Collection Clearance Officer, AES–200. of this AD. Repeat the inspections thereafter Accordingly, under the authority at intervals not to exceed 3,600 flight cycles Authority for This Rulemaking delegated to me by the Administrator, or 7,200 flight hours, whichever occurs first. the FAA amends 14 CFR part 39 as (1) Do a detailed inspection for castellation Title 49 of the United States Code follows: and skin clips cracked or damaged (including specifies the FAA’s authority to issue cracks, loose or missing fasteners, oversized rules on aviation safety. Subtitle I, PART 39—AIRWORTHINESS and missed drilled fastener holes, corrosion, section 106, describes the authority of DIRECTIVES dents, scratches and other signs of distress) the FAA Administrator. Subtitle VII: between stringers and cracked stringer clips ■ 1. The authority citation for part 39 of the wing box pylon back-up structure, and Aviation Programs, describes in more front spar to rear spar, in accordance with the detail the scope of the Agency’s continues to read as follows: Accomplishment Instructions of Lockheed authority. Authority: 49 U.S.C. 106(g), 40113, 44701. Martin Service Bulletin 093–57–207, We are issuing this rulemaking under Revision 5, dated November 14, 2008. § 39.13 [Amended] the authority described in Subtitle VII, (2) Do a general visual inspection for ■ 2. The FAA amends § 39.13 by adding cracking or damage (including cracks, loose Part A, Subpart III, Section 44701: or missing fasteners, oversized and missed ‘‘General requirements.’’ Under that the following new airworthiness drilled fastener holes, corrosion, dents, section, Congress charges the FAA with directive (AD): scratches and other signs of distress) of the promoting safe flight of civil aircraft in 2014–20–08 Lockheed Martin Corporation/ pylon back-up torque box structure, in air commerce by prescribing regulations Lockheed Martin Aeronautics Company: accordance with the Accomplishment for practices, methods, and procedures Amendment 39–17981; Docket No. Instructions of Lockheed Martin Service the Administrator finds necessary for FAA–2014–0290; Directorate Identifier Bulletin 093–57–207, Revision 5, dated safety in air commerce. This regulation 2012–NM–210–AD. November 14, 2008. is within the scope of that authority (3) Do a general visual inspection for (a) Effective Date cracking, damage (including cracks, loose or because it addresses an unsafe condition This AD is effective November 7, 2014. missing fasteners, oversized and missed that is likely to exist or develop on drilled fastener holes, corrosion, dents, products identified in this rulemaking (b) Affected ADs scratches and other signs of distress), or action. None. failure of the wing box external areas at the

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drag brace aft wing fitting, in accordance airplane serial number, and the number of (IBR) of the service information listed in this with the Accomplishment Instructions of landings and flight hours on the airplane. paragraph under 5 U.S.C. 552(a) and 1 CFR Lockheed Martin Service Bulletin 093–57– (1) If the inspection was done on or after part 51. 207, Revision 5, dated November 14, 2008. the effective date of this AD: Submit the (2) You must use this service information (4) Do a general visual inspection for report within 30 days after the inspection. as applicable to do the actions required by cracking or damage (including cracks, loose (2) If the inspection was done before the this AD, unless the AD specifies otherwise. or missing fasteners, oversized and missed effective date of this AD: Submit the report (i) Lockheed Martin Service Bulletin 093– drilled fastener holes, corrosion, dents, within 30 days after the effective date of this 57–207, Revision 5, dated November 14, scratches and other signs of distress) of the AD. 2008. (ii) Reserved. outer surface of the wing upper and lower (k) Paperwork Reduction Act Burden (3) For Lockheed service information skins for cracks along the rib attachment at Statement the fastener holes and between the two rows identified in this AD, contact Lockheed of attachments, in accordance with the A federal agency may not conduct or Martin Corporation/Lockheed Martin Accomplishment Instructions of Lockheed sponsor, and a person is not required to Aeronautics Company, L1011 Technical Martin Service Bulletin 093–57–207, respond to, nor shall a person be subject to Support Center, Dept. 6A4M, Zone 0579, 86 Revision 5, dated November 14, 2008. a penalty for failure to comply with a South Cobb Drive, Marietta, GA 30063–0579; collection of information subject to the telephone 770–494–5444; fax 770–494–5445; (h) Compliance Times for the Actions requirements of the Paperwork Reduction email [email protected]; Internet Specified in Paragraph (g) of This AD Act unless that collection of information http://www.lockheedmartin.com/ams/tools/ (1) For airplanes that have not displays a current valid OMB Control TechPubs.html. accomplished the inspections described in Number. The OMB Control Number for this (4) You may view this service information Lockheed Martin Service Bulletin 093–57– information collection is 2120–0056. Public at FAA, Transport Airplane Directorate, 1601 207 prior to the effective date of this AD: At reporting for this collection of information is Lind Avenue SW., Renton, Washington. For the later of the compliance times specified in estimated to be approximately 5 minutes per information on the availability of this paragraphs (h)(1)(i) and (h)(1)(ii) of this AD. response, including the time for reviewing material at the FAA, call 425–227–1221. (i) Before the accumulation of 15,000 total instructions, completing and reviewing the (5) You may view this service information flight cycles or 27,000 total flight hours, collection of information. All responses to that is incorporated by reference at the whichever occurs first. this collection of information are mandatory. National Archives and Records (ii) Within 1,800 flight cycles or 3,600 Comments concerning the accuracy of this Administration (NARA). For information on flight hours, whichever occurs first, after the burden and suggestions for reducing the the availability of this material at NARA, call effective date of this AD. burden should be directed to the FAA at: 800 202–741–6030, or go to: http:// Independence Ave. SW., Washington, DC (2) For airplanes that have accomplished www.archives.gov/federal-register/cfr/ibr- 20591, Attn: Information Collection the inspections described in Lockheed locations.html. Clearance Officer, AES–200. Martin Service Bulletin 093–57–207 prior to Issued in Renton, Washington, on the effective date of this AD: Within 3,600 (l) Credit for Previous Actions September 23, 2014. flight cycles or 7,200 flight hours, whichever This paragraph provides credit for actions Dionne Palermo, occurs first, after the completion of the most required by paragraphs (g) and (i) of this AD, Acting Manager, Transport Airplane recent inspections, except as specified in if those actions were performed before the Directorate, Aircraft Certification Service. paragraph (h)(3) of this AD. effective date of this AD using Lockheed (3) For rib caps that have been modified as Martin Service Bulletin 093–57–207, [FR Doc. 2014–23378 Filed 10–2–14; 8:45 am] described in Lockheed Martin Service Revision 3, dated November 22, 1991. BILLING CODE 4910–13–P Bulletin 093–57–207: Before the accumulation of 15,000 total flight cycles or (m) Alternative Methods of Compliance (AMOCs) 27,000 total flight hours, whichever occurs DEPARTMENT OF TRANSPORTATION first, for that rib cap only. (1) The Manager, Atlanta ACO, FAA, has (i) Corrective Actions the authority to approve AMOCs for this AD, Federal Aviation Administration if requested using the procedures found in 14 If any cracking, damage, or failure is found CFR 39.19. In accordance with 14 CFR 39.19, 14 CFR Part 73 during any inspection required by paragraph send your request to your principal inspector (g) of this AD: Before further flight, do all or local Flight Standards District Office, as [Docket No. FAA–2014–0722; Airspace applicable corrective actions, in accordance appropriate. If sending information directly Docket No. 14–AWP–9] with the Accomplishment Instructions of to the manager of the ACO, send it to the Lockheed Martin Service Bulletin 093–57– attention of the person identified in RIN 2120–AA66 207, Revision 5, dated November 14, 2008, paragraph (n)(1) of this AD. except where this service bulletin specifies (2) Before using any approved AMOC, Change of Controlling Agency for that all other damaged structural items notify your appropriate principal inspector, Restricted Areas; California should be repaired using the best shop or lacking a principal inspector, the manager practices, following procedures in Structural of the local flight standards district office/ AGENCY: Federal Aviation Repair Manual 57–12–00, this AD requires certificate holding district office. Administration (FAA), DOT. repairing the damage before further flight, in accordance with a method approved by the (n) Related Information ACTION: Final rule; technical Manager, Atlanta Aircraft Certification Office (1) For more information about this AD, amendment. (ACO), FAA. For a repair method to be contact Carl Gray, Aerospace Engineer, approved by the Manager, Atlanta ACO, as Airframe Branch, ACE–117A, FAA, Atlanta SUMMARY: This action updates the name required by this paragraph, the Manager’s Aircraft Certification Office (ACO), 1701 of the controlling agency for restricted approval letter must specifically refer to this Columbia Avenue, College Park, GA 30337; areas R–2502N Fort Irwin, CA; R–2505 AD. phone: 404–474–5554; fax: 404–474–5605; China Lake, CA; R–2506 China Lake email: [email protected]. (j) Reporting South, CA; R–2508 Complex, CA; R– (2) Service information identified in this 2515 Muroc Lake, CA and R–2524 Submit a report of positive findings of the AD that is not incorporated by reference is Trona, CA to read ‘‘FAA, Joshua Control inspection for cracking, damage, or failure available at the addresses specified in Facility, Edwards AFB, CA.’’ This is an required by this AD to the Manager, Atlanta paragraphs (o)(3) and (o)(4) of this AD. ACO, at the applicable time specified in administrative change only as there are paragraph (j)(1) or (j)(2) of this AD. The (o) Material Incorporated by Reference no changes to the dimensions, time of report must include the inspection results, a (1) The Director of the Federal Register designation or activities conducted description of the discrepancies found, the approved the incorporation by reference within the affected restricted areas.

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DATES: Effective date: 0901 UTC, assign the use of the airspace necessary R–2508 Complex, CA [Amended] January 8, 2015. to ensure the safety of aircraft and the By removing the current controlling FOR FURTHER INFORMATION CONTACT: efficient use of airspace. This regulation agency and adding in its place: Jason Stahl, Airspace Policy and is within the scope of that authority as ‘‘Controlling agency. FAA, Joshua Regulations Group, Office of Airspace it amends the descriptions of restricted Control Facility, Edwards AFB, CA.’’ areas to reflect current facility names. Services, Federal Aviation * * * * * Administration, 800 Independence Environmental Review Avenue SW., Washington, DC 20591; R–2515 Muroc Lake, CA [Amended] The FAA has determined that this telephone: (202) 267–8783. By removing the current controlling action qualifies for categorical exclusion SUPPLEMENTARY INFORMATION: agency and adding in its place: under the National Environmental ‘‘Controlling agency. FAA, Joshua The Rule Policy Act in accordance with FAA Control Facility, Edwards AFB, CA.’’ Order 1050.1E, Environmental Impacts: This action amends Title 14 Code of * * * * * Federal Regulations (14 CFR) part 73 by Policies and Procedures, paragraph amending the controlling agency name 311d. This airspace action is an R–2524 Trona, CA [Amended] for the following Restricted Areas administrative change to the descriptions of the affected restricted By removing the current controlling located in California: R–2502N Fort agency and adding in its place: Irwin, CA, R–2505 China Lake, CA, R– areas to update the controlling agency name. It does not alter the dimensions, ‘‘Controlling agency. FAA, Joshua 2506 China Lake South, CA, R–2508 Control Facility, Edwards AFB, CA.’’ Complex, CA, R–2515 Muroc Lake, CA, altitudes, or times of designation of the * * * * * and R–2524 Trona, CA. The controlling airspace; therefore, it is not expected to agency for these restricted areas is cause any potentially significant Issued in Washington, DC, on September changed from ‘‘FAA, Hi-Desert environmental impacts, and no 25, 2014. TRACON, Edwards AFB, CA’’ to ‘‘FAA, extraordinary circumstances exists that Gary A. Norek, Joshua Control Facility, Edwards AFB, warrant preparation of an Manager, Airspace Policy Regulations Group. CA.’’ environmental assessment. [FR Doc. 2014–23662 Filed 10–2–14; 8:45 am] This is an administrative change to List of Subjects in 14 CFR Part 73 BILLING CODE 4910–13–P update the name of the controlling agency for the above listed restricted Airspace, Prohibited areas, Restricted areas. areas. It does not affect the boundaries, DEPARTMENT OF HOUSING AND designated altitudes, or activities Adoption of the Amendment URBAN DEVELOPMENT conducted within the restricted areas; therefore, notice and public procedure In consideration of the foregoing, the 24 CFR Parts 5 and 232 Federal Aviation Administration under 5 U.S.C. 553(b) are unnecessary. [Docket No. FR–5794–N–02] The FAA has determined that this amends 14 CFR part 73, as follows: action only involves an established PART 73—SPECIAL USE AIRSPACE Federal Housing Administration (FHA): body of technical regulations for which Section 232 Healthcare Facility frequent and routine amendments are ■ 1. The authority citation for part 73 Insurance Program—Submission of necessary to keep them operationally continues to read as follows: Operator Financial Reports in current. Therefore, this regulation: (1) is Accordance With HUD’s Uniform not a ‘‘significant regulatory action’’ Authority: 49 U.S.C. 106(g), 40103, 40113, 40120; E.O. 10854, 24 FR 9565, 3 CFR, 1959– Financial Reporting Standards: under Executive Order 12866; (2) is not 1963 Comp., p. 389. Commencement of Compliance a ‘‘significant rule’’ under DOT Regulatory Policies and Procedures (44 § 73.25 [Amended] AGENCY: Office of the Assistant Secretary for Housing—Federal Housing FR 11034; February 26, 1979); and (3) ■ 2. § 73.25 is amended as follows: does not warrant preparation of a Commissioner, HUD. * * * * * regulatory evaluation as the anticipated ACTION: Announcement of impact is so minimal. Since this is a R–2502N Fort Irwin, CA [Amended] commencement of compliance. routine matter that only affects air traffic procedures and air navigation, it is By removing the current controlling SUMMARY: On September 16, 2014, HUD certified that this rule, when agency and adding in its place: published an interim rule that revised promulgated, does not have a significant ‘‘Controlling agency. FAA, Joshua the financial reporting deadlines for economic impact on a substantial Control Facility, Edwards AFB, CA.’’ operators participating in FHA’s number of small entities under the * * * * * program for insurance of health care facilities under section 232 of the criteria of the Regulatory Flexibility Act. R–2505 China Lake, CA [Amended] The FAA’s authority to issue rules National Housing Act (Section 232 regarding aviation safety is found in By removing the current controlling program) to bring the operators in-line Title 49 of the United States Code. agency and adding in its place: with the reporting periods prescribed in Subtitle I, Section 106 describes the ‘‘Controlling agency. FAA, Joshua HUD’s Uniform Financial Reporting authority of the FAA Administrator. Control Facility, Edwards AFB, CA.’’ Standards. In accordance with HUD’s regulations implementing its Uniform Subtitle VII, Aviation Programs, R–2506 China Lake South, CA Financial Reporting Standards, HUD is describes in more detail the scope of the [Amended] agency’s authority. providing notice that it has issued This rulemaking is promulgated By removing the current controlling guidance on the manner in which the under the authority described in agency and adding in its place: reports by operators are to be submitted Subtitle VII, Part A, Subpart I, Section ‘‘Controlling agency. FAA, Joshua to HUD. 40103. Under that section, the FAA is Control Facility, Edwards AFB, CA.’’ DATES: Compliance date: December 2, charged with prescribing regulations to * * * * * 2014.

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FOR FURTHER INFORMATION CONTACT: 60 calendar days following the end of a DEPARTMENT OF HOMELAND Vance T. Morris, Office of Residential fiscal quarter and 90 calendar days SECURITY Care Facilities, Office of Healthcare following the end of the fiscal-year-end Programs, Office of Housing, quarter to comply with HUD’s financial Coast Guard Department of Housing and Urban statement reporting requirements. Development, 451 7th Street SW., Room 33 CFR Part 100 Section 5.801(d)(4) of HUD’s Uniform 6264, Washington, DC 20410–8000; Financial Reporting Standards [Docket No. USCG–2014–0606] telephone number 202–708–0599 (this regulations provides that operators of is not a toll-free number). Persons with RIN 1625–AA00 hearing or speech impairments may projects with Section 232 insured access this number through TTY by mortgages (the entities described in Eighth Coast Guard District Annual calling the toll-free Federal Relay § 5.801(a)(6)) must comply with the Safety Zones; Three Rivers Towing Service at 1–800–877–8339. requirements of § 5.801 with respect to Association Head of the Ohio Regatta; fiscal years commencing on or after the Allegheny River Mile 0.0 to 3.3; SUPPLEMENTARY INFORMATION: Through a date that is 60 calendar days after the Pittsburgh, PA final rule published on September 7, date on which HUD announces, through 2012, at 77 FR 5512, HUD revised and AGENCY: Federal Register notice, that it has Coast Guard, DHS. updated the regulations for FHA’s issued guidance on the manner in ACTION: Notice of enforcement of Section 232 program, regulations that regulation. had not been revised since 1996. HUD which these reports will be transmitted revised the Section 232 program to HUD. SUMMARY: The Coast Guard will enforce regulations to reflect current policy and This document serves as the notice a safety zone for the Three Rivers practices, and improve accountability required by § 5.801(d)(4) that HUD has Towing Association Head of the Ohio and strengthen risk management in the issued guidance on the manner in Regatta on the Allegheny River, from Section 232 program. which the operator financial reports will mile 0.0 to 3.3, extending the entire Included in the updates made by the be transmitted to HUD. That guidance width of the river. This zone will be in 2012 rulemaking were revisions to 24 can be found under the Guidance for effect on October 4, 2014 from 6:00 a.m. CFR 5.801 (Uniform Financial Reporting Lenders’ Operator Financial Statement until 6:00 p.m. This zone is needed to Standards) and 24 CFR 232.1009 section at http://portal.hud.gov/ protect vessels transiting the area and (Financial Reports), both of which hudportal/HUD?src=/federal_housing_ event spectators from the hazards contained reporting requirements administration/healthcare_facilities/ associated with the Three Rivers applicable to the Section 232 program. residential_care. Accordingly, operators Towing Association Head of the Ohio HUD revised these regulatory sections to must comply with the operator financial Regatta. During the enforcement period, include operators of projects insured or report requirements for fiscal years entry into, transiting, or anchoring in held by HUD as entities that must commencing on or after December 2, the safety zone is prohibited to all submit financial statements to HUD. vessels not registered with the sponsor 2014. Owners and borrowers have long been as participants or official patrol vessels, required to submit financial reports. Information Collection Requirements unless specifically authorized by the Sections 5.801(c)(4) and 232.1009 Captain of the Port (COTP) Pittsburgh or provide that operators must submit The information collection a designated representative. financial statements to HUD quarterly requirements contained in this rule DATES: The regulations in 33 CFR within 30 calendar days of the date of were reviewed by the Office of 100.801 will be enforced with actual the end of each fiscal quarter, and 60 Management and Budget (OMB) under notice on October 4, 2014. calendar days from the end of the fiscal- the Paperwork Reduction Act of 1995 FOR FURTHER INFORMATION CONTACT: If year-end. The other entities in the (44 U.S.C. 3501–3520), and assigned you have questions on this notice of Section 232 program required to submit OMB Control Number 2502–0605. In enforcement, call or email Ariana reports were provided slightly longer accordance with the Paperwork Mohnke, Marine Safety Unit Pittsburgh, periods to prepare and submit the Reduction Act, an agency may not U.S. Coast Guard, at telephone (412) reports than that provided to operators. conduct or sponsor, and a person is not 644–5808, email Accordingly, the September 7, 2012, required to respond to, a collection of [email protected]. rule placed operators on a different information, unless the collection SUPPLEMENTARY INFORMATION: The Coast submission deadline than that required displays a currently valid OMB control of owners. Guard will enforce the Safety Zone for number. HUD’s interim rule published on the annual Three Rivers Towing September 16, 2014, at 79 FR 55360, Dated: September 26, 2014. Association Head of the Ohio Regatta revised the financial reporting deadlines Carol J. Galante, listed in 33 CFR 100.801 Table 1, Entry for operators to bring them in-line with Assistant Secretary for Housing—Federal No. 31; Sector Ohio Valley. the reporting periods prescribed in Housing Commissioner. Under the provisions of 33 CFR HUD’s Uniform Financial Reporting [FR Doc. 2014–23484 Filed 10–2–14; 8:45 am] 100.801, entry into the safety zone listed Standards, to which owners and in Table 1, Entry No. 31; Sector Ohio BILLING CODE 4210–67–P borrowers are subject. The interim rule Valley is prohibited unless authorized increases the amount of time operators by the COTP or a designated have to comply with the reporting representative. Persons or vessels requirements provided in §§ 5.801(c)(4) desiring to enter into or passage through and 232.1009. The interim rule provides the safety zone must request permission that operators will have an additional 30 from the COTP Pittsburgh or a calendar days to comply with the designated representative. If permission financial statement reporting is granted, all persons and vessels shall requirements. Operators will now have comply with the instructions of the

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COTP Pittsburgh or designated from September 16, 2014, until October rule may be requested from the Captain representative. 3, 2014. of the Port and requests to deviate and This notice is issued under authority ADDRESSES: Documents mentioned in transit through this area may be of 5 U.S.C. 552(a); 33 U.S.C. 1231; 46 this preamble are part of docket [USCG– permitted on a case-by-case basis. Once U.S.C. Chapter 701, 3306, 3703; 50 2014–0831]. To view documents demolition and recovery of bridge U.S.C. 191, 195; 33 CFR 1.05–1, 6.04–1, mentioned in this preamble as being debris is completed, the safety zone will 6.04–6, and 160.5; Public Law 107–295, available in the docket, go to http:// be canceled. Delaying this rulemaking to 116 Stat. 2064; Department of Homeland www.regulations.gov, type the docket provide a comment period before Security Delegation No. 0170.1. In number in the ‘‘SEARCH’’ box and click implementing the necessary safety zone addition to this notice in the Federal ‘‘SEARCH.’’ Click on Open Docket would be contrary to the public interest Register, the Coast Guard will provide Folder on the line associated with this by delaying the immediate action the maritime community with advance rulemaking. You may also visit the needed to protect persons, property, and notification of this enforcement period Docket Management Facility in Room infrastructure from the potential damage via Local Notice to Mariners and W12–140 on the ground floor of the and safety hazards associated with the updates via Marine Information Department of Transportation West demolition of this bridge. Broadcasts. Building, 1200 New Jersey Avenue SE., For the same reasons, under 5 U.S.C. If the COTP Pittsburgh or designated Washington, DC 20590, between 9 a.m. 553(d)(3), the Coast Guard finds that representative determines that the safety and 5 p.m., Monday through Friday, good cause exists for making this zone need not be enforced for the full except Federal holidays. emergency rule effective less than 30 days after publication in the Federal duration stated in this notice of FOR FURTHER INFORMATION CONTACT: If Register. Providing 30 days notice enforcement, he or she may use a you have questions on this rule, call or would be contrary to public interest Broadcast Notice to Mariners to grant email Chief Heather Norman, Marine because immediate action is needed to general permission to enter the Safety Unit Paducah Waterways protect life and property from the regulated area. Management Branch, U.S. Coast Guard; hazards associated safety concerns of telephone 270–442–1621, email Dated: September 8, 2014. the George Rogers Clark Memorial [email protected]. If you have L. N. Weaver, Bridge demolition at mile 5.3 Tennessee questions on viewing or submitting Commander, U.S. Coast Guard, Captain of River. the Port, Pittsburgh. material to the docket, call Cheryl F. [FR Doc. 2014–23652 Filed 10–2–14; 8:45 am] Collins, Program Manager, Docket B. Basis and Purpose BILLING CODE 9110–04–P Operations, telephone 202–366–9826. The legal basis and authorities for this SUPPLEMENTARY INFORMATION: rule are found in 33 U.S.C. 1231, 46 Table of Acronyms U.S.C. Chapter 701, 3306, 3703; 50 DEPARTMENT OF HOMELAND U.S.C. 191, 195; 33 CFR 1.05–1, 6.04–1, SECURITY APA Administrative Procedure Act 6.04–6, and 160.5; Public Law 107–295, BNM Broadcast Notice to Mariners 116 Stat. 2064; and Department of Coast Guard COTP Captain of the Port DHS Department of Homeland Security Homeland Security Delegation No. 0170.1, which collectively authorize the 33 CFR Part 165 FR Federal Register LNM Local Notice to Mariners Coast Guard to establish and define [Docket Number USCG–2014–0831] MM Mile Marker safety zones. NPRM Notice of Proposed Rulemaking The purpose of this safety zone is to RIN 1625–AA00 protect persons and vessels from the A. Regulatory History and Information bridge demolition operations, which Safety Zone, Tennessee River Between The Coast Guard is issuing this pose a significant safety hazard at mile Mile 4.8 to 5.8; Ledbetter, KY temporary final rule without prior 5.3 Tennessee River. For this reason, the notice and opportunity to comment AGENCY: Coast Guard, DHS. Coast Guard is prohibiting entry into pursuant to authority under section 4(a) this zone by all vessels during the ACTION: Temporary final rule. of the Administrative Procedure Act enforcement period unless authorized (APA) (5 U.S.C. 553(b)). This provision SUMMARY: The Coast Guard is by the COTP Ohio Valley or a authorizes an agency to issue a rule establishing a temporary safety zone for designated representative. without prior notice and opportunity to all waters of the Tennessee River comment when the agency for good C. Discussion of the Rule between mile 4.8 and 5.8. This safety cause finds that those procedures are The Coast Guard is establishing a zone is needed to protect persons, ‘‘impracticable, unnecessary, or contrary temporary safety zone on the Tennessee property, and infrastructure from to the public interest.’’ Under 5 U.S.C. River from mile 4.8 to 5.8, extending the potential damage and safety hazards 553(b)(B), the Coast Guard finds that entire width of the river. Entry into this associated with using explosives to good cause exists for not publishing a zone is prohibited to all vessels and demolish the section of the bridge that notice of proposed rulemaking (NPRM) persons unless specifically authorized is over the navigation channel and the with respect to this rule. by the COTP Sector Ohio Valley or a resulting recovery of the section from On September 16, 2014 demolition designated representative. the waterway. Entry into the safety zone will begin on the George Rogers Clark This rule is effective and enforceable is prohibited unless specifically Memorial Bridge at mile 5.3 Tennessee with actual notice on September 16, authorized by the Captain of the Port River, creating a hazardous condition. 2014 through October 31, 2014, or until (COTP) Ohio Valley or a designated This situation requires immediate all demolition debris has been removed representative. emergency safety measures to protect from the waterway and deemed to no DATES: This rule is effective without persons and property, and a safety zone longer pose a threat to the public. At actual notice from October 3, 2014 until is in effect to stop all vessel traffic from that time the safety zone will be October 31, 2014. For the purposes of transiting from mile 4.8 to mile 5.8 canceled. Any exceptions to these enforcement, actual notice will be used Tennessee River. Deviation from this operational restrictions must be

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authorized by the COTP Ohio Valley or from September 16, 2014 through 6. Protest Activities a designated representative. The COTP October 31, 2014. This safety zone will The Coast Guard respects the First or a designated representative may be not have a significant economic impact Amendment rights of protesters. contacted by telephone at 502–779– on a substantial number of small Protesters are asked to contact the 5422. entities. Traffic in this area is limited to person listed in the FOR FURTHER almost entirely recreational vessels and D. Regulatory Analyses INFORMATION CONTACT section to commercial towing vessels, and the coordinate protest activities so that your We developed this rule after restrictions will be enforced only as message can be received without considering numerous statutes and necessary while the demolition and jeopardizing the safety or security of executive orders related to rulemaking. debris removal of the George Rogers people, places or vessels. Below we summarize our analyses Clark Memorial Bridge is being based on a number of these statutes or conducted. When this is completed, the 7. Unfunded Mandates Reform Act executive orders. safety zone will be canceled. Deviation The Unfunded Mandates Reform Act 1. Regulatory Planning and Review from the safety zone restriction may be of 1995 (2 U.S.C. 1531–1538) requires requested from the COTP Ohio Valley or This rule is not a significant Federal agencies to assess the effects of designated representative and will be regulatory action under section 3(f) of their discretionary regulatory actions. In considered on a case-by-case basis. Executive Order 12866, Regulatory particular, the Act addresses actions Planning and Review, as supplemented 3. Assistance for Small Entities that may result in the expenditure by a by Executive Order 13563, Improving State, local, or tribal government, in the Under section 213(a) of the Small Regulation and Regulatory Review, and aggregate, or by the private sector of Business Regulatory Enforcement does not require an assessment of $100,000,000 (adjusted for inflation) or Fairness Act of 1996 (Pub. L. 104–121), potential costs and benefits under more in any one year. Though this rule we want to assist small entities in section 6(a)(3) of Executive Order 12866 will not result in such an expenditure, understanding this rule. If the rule or under section 1 of Executive Order we do discuss the effects of this rule would affect your small business, 13563. The Office of Management and elsewhere in this preamble. organization, or governmental Budget has not reviewed it under those jurisdiction and you have questions 8. Taking of Private Property Orders. This rule establishes a concerning its provisions or options for temporary safety zone for vessels on all This rule will not cause a taking of compliance, please contact the person waters of the Tennessee River, private property or otherwise have listed in the FOR FURTHER INFORMATION extending the entire width from mile 4.8 taking implications under Executive to 5.8. Notifications to the marine CONTACT, above. Order 12630, Governmental Actions and community will be made through Small businesses may send comments Interference with Constitutionally Broadcast Notices to Mariners (BNM). on the actions of Federal employees Protected Property Rights. who enforce, or otherwise determine The impacts on routine navigation are 9. Civil Justice Reform expected to be minimal as the compliance with, Federal regulations to restrictions will be enforced only as the Small Business and Agriculture This rule meets applicable standards necessary while demolition and debris Regulatory Enforcement Ombudsman in sections 3(a) and 3(b)(2) of Executive recovery operations of the George and the Regional Small Business Order 12988, Civil Justice Reform, to Rogers Clark Memorial Bridge, mile 5.3 Regulatory Fairness Boards. The minimize litigation, eliminate Tennessee River, are conducted. After Ombudsman evaluates these actions ambiguity, and reduce burden. annually and rates each agency’s demolition and debris recovery 10. Protection of Children operations are complete, the safety zone responsiveness to small business. If you will be canceled. Additionally, wish to comment on actions by We have analyzed this rule under deviation from the safety zone employees of the Coast Guard, call 1– Executive Order 13045, Protection of restriction may be requested from the 888–REG–FAIR (1–888–734–3247). The Children from Environmental Health COTP Ohio Valley or designated Coast Guard will not retaliate against Risks and Safety Risks. This rule is not representative and will be considered small entities that question or complain an economically significant rule and on a case-by-case basis. about this rule or any policy or action does not create an environmental risk to of the Coast Guard. health or risk to safety that may 2. Impact on Small Entities 4. Collection of Information disproportionately affect children. The Regulatory Flexibility Act of 1980 11. Indian Tribal Governments (RFA), 5 U.S.C. 601–612, as amended, This rule will not call for a new requires federal agencies to consider the collection of information under the This rule does not have tribal potential impact of regulations on small Paperwork Reduction Act of 1995 (44 implications under Executive Order entities during rulemaking. The Coast U.S.C. 3501–3520). 13175, Consultation and Coordination Guard certifies under 5 U.S.C. 605(b) 5. Federalism with Indian Tribal Governments, that this rule will not have a significant because it does not have a substantial economic impact on a substantial A rule has implications for federalism direct effect on one or more Indian number of small entities. The Coast under Executive Order 13132, tribes, on the relationship between the Guard certifies under 5 U.S.C. 605(b) Federalism, if it has a substantial direct Federal Government and Indian tribes, that this rule will not have a significant effect on the States, on the relationship or on the distribution of power and economic impact on a substantial between the national government and responsibilities between the Federal number of small entities. the States, or on the distribution of Government and Indian tribes. This rule will affect the following power and responsibilities among the 12. Energy Effects entities, some of which may be small various levels of government. We have entities: the owners or operators of analyzed this rule under that Order and This action is not a ‘‘significant vessels intending to transit the determined that this rule does not have energy action’’ under Executive Order Tennessee River from mile 4.8 to 5.8 implications for federalism. 13211, Actions Concerning Regulations

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That Significantly Affect Energy Supply, Clark Memorial Bridge is completed and public and vessels from the hazards Distribution, or Use. no longer poses a threat to the public. associated the exercise. At that time the safety zone will be 13. Technical Standards DATES: This rule is effective October 3, canceled. 2014 through October 24, 2014 and will This rule does not use technical (c) Regulations. (1) In accordance with be enforced from October 16, 2014 to standards. Therefore, we did not the general regulations in § 165.23 of October 24, 2014 from 6:00 a.m. until consider the use of voluntary consensus this part, entry into this zone is 8:00 p.m. each day. standards. prohibited unless authorized by the ADDRESSES: Documents mentioned in 14. Environment Captain of the Port (COTP) Ohio Valley this preamble are part of docket [USCG– or a designated representative. 2014–0855]. To view documents We have analyzed this rule under (2) All persons and vessels shall Department of Homeland Security mentioned in this preamble as being comply with the instructions of the available in the docket, go to http:// Management Directive 023–01 and COTP and designated on-scene patrol Commandant Instruction M16475.lD, www.regulations.gov, type the docket personnel. On-scene patrol personnel number in the ‘‘SEARCH’’ box and click which guide the Coast Guard in include commissioned, warrant, and complying with the National ‘‘SEARCH.’’ Click on Open Docket petty officers of the U.S. Coast Guard. Folder on the line associated with this Environmental Policy Act of 1969 (3) Persons or vessels may request (NEPA) (42 U.S.C. 4321–4370f), and rulemaking. You may also visit the deviation from the safety zone Docket Management Facility in Room have concluded this action is one of a restriction prescribed under paragraph category of actions which do not W12–140 on the ground floor of the (c)(1) of this section from the COTP Department of Transportation West individually or cumulatively have a Ohio Valley or a designated significant effect on the human Building, 1200 New Jersey Avenue SE., representative who may be a Washington, DC 20590, between 9 a.m. environment. This rule involves the commissioned, warrant, or petty officer creation of a safety zone in response to and 5 p.m., Monday through Friday, of the Coast Guard. The COTP Ohio except Federal holidays. an emergency situation. The safety zone Valley may be contacted by telephone at is implemented to protect persons and 1–800–253–7465 or on VHF–FM FOR FURTHER INFORMATION CONTACT: If property due to a structurally deficient channel 16. you have questions on this rule, call or bridge at mile 5.3 Tennessee River. This (d) Informational broadcasts. The email If you have questions on this rule is categorically excluded from COTP, Ohio Valley or a designated temporary rule, call or email Lieutenant further review under paragraph 34(g) of representative will inform the public Brennan Dougherty, U.S. Coast Guard, Figure 2–1 of the Commandant through broadcast notices to mariners Sector Delaware Bay, Chief Waterways Instruction. An environmental analysis (BNM) of the effective period for the Management Division, Coast Guard; checklist and a categorical exclusion safety zone and of any changes in the telephone (215) 271–4851, email determination will be made available as effective period, size, or restrictions of [email protected]. If you indicated under the ADDRESSES section. the safety zone. have questions on viewing or submitting material to the docket, call Cheryl List of Subjects in 33 CFR Part 165 Dated: September 16, 2014. Collins, Program Manager, Docket Harbors, Marine safety, Navigation R.V. Timme, Operations, telephone (202) 366–9826. (water), Reporting and recordkeeping Captain, U.S. Coast Guard, Captain of the SUPPLEMENTARY INFORMATION: requirements, Security measures, Port Ohio Valley. Waterways. [FR Doc. 2014–23653 Filed 10–2–14; 8:45 am] Table of Acronyms For the reasons discussed in the BILLING CODE 9110–04–P DHS Department of Homeland Security preamble, the Coast Guard amends 33 FR Federal Register CFR Part 165 as follows: NPRM Notice of Proposed Rulemaking DEPARTMENT OF HOMELAND A. Regulatory History and Information PART 165—REGULATED NAVIGATION SECURITY AREAS AND LIMITED ACCESS AREAS The Coast Guard is issuing this final Coast Guard rule without prior notice and ■ 1. The authority citation for part 165 opportunity to comment pursuant to continues to read as follows: 33 CFR Part 165 authority under section 4(a) of the Authority: 33 U.S.C. 1231; 46 U.S.C. [Docket Number USCG–2014–0855] Administrative Procedure Act (APA) Chapter 701, 3306, 3703; 50 U.S.C. 191, 195; (5 U.S.C. 553(b)). This provision RIN 1625–AA00 33 CFR 1.05–1, 6.04–1, 6.04–6, 160.5; Pub. L. authorizes an agency to issue a rule without prior notice and opportunity to 107–295, 116 Stat. 2064; Department of Safety Zone, Navy Exercise, Delaware Homeland Security Delegation No. 0170.1 comment when the agency for good Bay and Atlantic Ocean; Cape May, NJ ■ 2. A new temporary § 165.T08–0831 is cause finds that those procedures are added to read as follows: AGENCY: Coast Guard, DHS. ‘‘impracticable, unnecessary, or contrary ACTION: Temporary final rule. to the public interest.’’ Under 5 U.S.C. § 165.T08–0831 Safety Zone, Tennessee 553(b)(B), the Coast Guard finds that River MM 4.8 to 5.8; Ledbetter, KY. SUMMARY: The Coast Guard is good cause exists for not publishing a (a) Location. The following area is a establishing three temporary safety notice of proposed rulemaking (NPRM) safety zone: All waters of the Tennessee zones on the waters of the Delaware Bay with respect to this rule as publishing River from mile 4.8 to 5.8, extending the and North Atlantic Ocean adjacent to an NPRM is impracticable given that the entire width of the river. Cape May, New Jersey. The safety zones final details for this event were not (b) Effective dates. This safety zone is will restrict vessel traffic on a portion of received by the Coast Guard until effective and enforceable with actual the Delaware Bay and North Atlantic September 8, 2014, and this exercise is notice on September 16, 2014 through Ocean while a Navy exercise is taking scheduled to take place from October October 31, 2014 or until the demolition place. These temporary safety zones are 16, 2014 to October 24, 2014. Further, and debris removal of the George Rogers necessary to protect the surrounding allowing this event to go forward

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without these safety zones in place longitude 075°01′18″ W thence west to requires federal agencies to consider the would expose mariners and the public point of origin. potential impact of regulations on small to unnecessary dangers associated with The second safety zone will entities during rulemaking. The term this exercise contrary to the public encompass all waters of the Delaware ‘‘small entities’’ comprises small interest. Vessels transiting or attempting Bay bounded by a line connecting the businesses, not-for-profit organizations to transit through these areas may be at following points; latitude 38°54′17″ N, that are independently owned and risk, and therefore the safety zones are longitude 075°07′50″ W thence operated and are not dominant in their needed to protect the public from the northwest to latitude 39°04′06″ N, fields, and governmental jurisdictions hazards associated with this exercise. longitude 075°13′54″ W thence with populations of less than 50,000. Therefore, delay in taking action is both northeast to latitude 39°04′39″ N, The Coast Guard certifies under 5 U.S.C. impracticable and contrary to public longitude 074°12′39″ W thence 605(b) that this rule will not have a interest. southeast to latitude 38°55′04″ N, significant economic impact on a Under 5 U.S.C. 553(d)(3), the Coast longitude 075°06′38″ W thence substantial number of small entities. Guard finds that good cause exists for southwest to point of origin. This rule will affect the following making this rule effective less than 30 The third safety zone will encompass entities, some of which may be small days after publication in the Federal a portion of the North Atlantic Ocean entities: the owners or operators of Register as any delay encountered in bounded by a line connecting the vessels intending to anchor or transit this regulation’s effective date would be following points; latitude 38°49′57″ N, along a portion of Delaware Bay and contrary to public interest because longitude 074°47′41″ W thence North Atlantic Ocean adjacent to Cape immediate action is needed to provide northeast to latitude 38°54′28″ N, May, New Jersey from October 16, 2014 for the safety of life and property from longitude 074°43′15″ W thence to October 24, 2014 from 6:00 a.m. until the hazards associated with the naval southeast to latitude 38°54′11″ N, 8:00 p.m. each day, unless cancelled exercise. longitude 074°42′45″ W thence earlier by the Captain of the Port once ° ′ ″ B. Basis and Purpose southwest to latitude 38 49 39 N, all operations are completed. Once longitude 074°47′10″ W thence operations are concluded, an The legal basis for the rule is the northwest to point of origin, off the informational broadcast will inform Coast Guard’s authority to establish coast of Cape May, NJ. mariners that the safety zone is no regulated navigation areas and other All of the safety zones will be longer being enforced. limited access areas: 33 U.S.C. 1231; 46 effective and enforced from October 16, This safety zone will not have a U.S.C. Chapter 701, 3306, 3703; 50 2014 to October 24, 2014 from 6:00 a.m. significant economic impact on a U.S.C. 191, 195; 33 CFR 1.05–1, 6.04–1, until 8:00 p.m. each day. Entry into, substantial number of small entities for 6.04–6, 160.5; Public Law 107–295, 116 transiting, or anchoring within the the following reason: the zone is limited Stat. 2064; Department of Homeland safety zone is prohibited. in size and duration. Sector Delaware Security Delegation No. 0170.1. From October 16, 2014, until October D. Regulatory Analyses Bay will issue maritime advisories widely available to users of the 24, 2014, a Navy exercise will take place We developed this rule after Delaware River. in a portion of the Delaware Bay and the considering numerous statutes and North Atlantic Ocean near Cape May, executive orders related to rulemaking. 3. Assistance for Small Entities New Jersey. This regulation is necessary Below we summarize our analyses Under section 213(a) of the Small because of the ongoing hazards based on these statutes or executive Business Regulatory Enforcement associated with the exercise. Once orders. operations are concluded, an Fairness Act of 1996 (Pub. L. 104–121), informational broadcast will inform 1. Regulatory Planning and Review we want to assist small entities in mariners that the saftey zone is no This rule is not a significant understanding this rule. If the rule longer being enforced. The Captain of regulatory action under section 3(f) of would affect your small business, the Port is establishing this safety zone Executive Order 12866, Regulatory organization, or governmental to ensure the safety of life and property Planning and Review, as supplemented jurisdiction and you have questions of all mariners and vessels transiting the by Executive Order 13563, Improving concerning its provisions or options for local area. Regulation and Regulatory Review, and compliance, please contact the person does not require an assessment of listed in the FOR FURTHER INFORMATION C. Discussion of the Final Rule potential costs and benefits under CONTACT, above. To mitigate the risks associated with section 6(a)(3) of Executive Order 12866 Small businesses may send comments the Navy exercise, the Captain of the or under section 1 of Executive Order on the actions of Federal employees Port, Sector Delaware Bay will enforce 13563. The Office of Management and who enforce, or otherwise determine temporary safety zones in Delaware Bay Budget has not reviewed it under those compliance with, Federal regulations to and the North Atlantic Ocean near Cape Orders. Although this regulation will the Small Business and Agriculture May, New Jersey. The safety zones will restrict access to the regulated area, the Regulatory Enforcement Ombudsman encompass two areas within Delaware effect of this rule will not be significant and the Regional Small Business Bay and one area in the North Atlantic because: (i) the Coast Guard will make Regulatory Fairness Boards. The Ocean. extensive notification of the Safety Zone Ombudsman evaluates these actions The first safety zone will encompass to the maritime public via maritime annually and rates each agency’s all waters of the Delaware Bay, bounded advisories so mariners can alter their responsiveness to small business. If you by a line connecting the following plans accordingly; (ii) this rule will be wish to comment on actions by points; latitude 38°54′10″ N, longitude enforced until the area is deemed safe employees of the Coast Guard, call 1– 075°03′12″ W thence north to latitude to transit. 888–REG–FAIR (1–888–734–3247). The 39°02′24″ N, longitude 075°02′38″ W Coast Guard will not retaliate against thence east to latitude 39°02′24″ N, 2. Impact on Small Entities small entities that question or complain longitude 075°01′42″ W thence The Regulatory Flexibility Act of 1980 about this rule or any policy or action southeast to latitude 38°54′22″ N, (RFA), 5 U.S.C. 601–612, as amended, of the Coast Guard.

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4. Collection of Information 11. Indian Tribal Governments For the reasons discussed in the This rule will not call for a new preamble, the Coast Guard amends 33 This rule does not have tribal CFR part 165 as follows: collection of information under the implications under Executive Order Paperwork Reduction Act of 1995 (44 13175, Consultation and Coordination PART 165—REGULATED NAVIGATION U.S.C. 3501–3520). with Indian Tribal Governments, AREAS AND LIMITED ACCESS AREAS 5. Federalism because it does not have a substantial direct effect on one or more Indian ■ 1. The authority citation for part 165 A rule has implications for federalism tribes, on the relationship between the continues to read as follows: under Executive Order 13132, Federal Government and Indian tribes, Federalism, if it has a substantial direct Authority: 33 U.S.C 1231; 46 U.S.C. or on the distribution of power and effect on the States, on the relationship Chapter 701, 3306, 3703; 50 U.S.C. 191, 195; responsibilities between the Federal 33 CFR 1.05–1, 6.04–1, 6.04–6, 160.5; Pub. L. between the national government and Government and Indian tribes. 107–295, 116 Stat. 2064; Department of the States, or on the distribution of Homeland Security Delegation No. 0170.1 power and responsibilities among the 12. Energy Effects various levels of government. We have ■ 2. Add temporary § 165.T05–0855 to analyzed this rule under that Order and This action is not a ‘‘significant read as follows determined that this rule does not have energy action’’ under Executive Order 13211, Actions Concerning Regulations § 165.T05–0855 Safety Zones, Navy implications for federalism. Exercise, Delaware Bay and Atlantic Ocean; That Significantly Affect Energy Supply, Cape May, NJ. 6. Protest Activities Distribution, or Use. (a) Regulated area. The following The Coast Guard respects the First 13. Technical Standards areas are safety zones: (1) All waters of Amendment rights of protesters. the Delaware Bay, bounded by a line This rule does not use technical Protesters are asked to contact the connecting the following points: s all FOR FURTHER standards. Therefore, we did not person listed in the waters of the Delaware Bay, bounded by INFORMATION CONTACT consider the use of voluntary consensus section to a line connecting the following points; standards. coordinate protest activities so that your latitude 38°54′10″ N, longitude message can be received without 14. Environment 075°03′12″ W thence north to latitude jeopardizing the safety or security of 39°02′24″ N, longitude 075°02′38″ W people, places or vessels. We have analyzed this rule under thence east to latitude 39°02′24″ N, 7. Unfunded Mandates Reform Act Department of Homeland Security longitude 075°01′42″ W thence Management Directive 023–01 and ° ′ ″ The Unfunded Mandates Reform Act southeast to latitude 38 54 22 N, Commandant Instruction M16475.lD, longitude 075°01′18″ W thence west to of 1995 (2 U.S.C. 1531–1538) requires which guide the Coast Guard in Federal agencies to assess the effects of point of origin. complying with the National (2) All waters of the Delaware Bay their discretionary regulatory actions. In Environmental Policy Act of 1969 particular, the Act addresses actions bounded by a line connecting the (NEPA)(42 U.S.C. 4321–4370f), and following points; latitude 38°54′17″ N, that may result in the expenditure by a have determined that this action is one ° ′ ″ State, local, or tribal government, in the longitude 075 07 50 W thence of a category of actions that do not northwest to latitude 39°04′06″ N, aggregate, or by the private sector of individually or cumulatively have a ° ′ ″ $100,000,000 (adjusted for inflation) or longitude 075 13 54 W thence significant effect on the human northeast to latitude 39°04′39″ N, more in any one year. Though this rule environment. This rule involves ° ′ ″ will not result in such expenditure, we longitude 074 12 39 W thence implementation of regulations within 33 southeast to latitude 38°55′04″ N, do discuss the effects of this rule CFR Part 165, applicable to safety zones ° ′ ″ elsewhere in this preamble. longitude 075 06 38 W thence on the navigable waterways. The zones southwest to point of origin. 8. Taking of Private Property will temporarily restrict vessel traffic (3) All waters of the North Atlantic from transiting a portion of the This rule will not cause a taking of Ocean bounded by a line connecting the Delaware Bay and North Atlantic Ocean ° ′ ″ private property or otherwise have following points; latitude 38 49 57 N, in vicinity of Cape May, New Jersey, in ° ′ ″ taking implications under Executive longitude 074 47 41 W thence order to protect the safety of life and ° ′ ″ Order 12630, Governmental Actions and northeast to latitude 38 54 28 N, property on the waters until the exercise ° ′ ″ Interference with Constitutionally longitude 074 43 15 W thence is complete. This rule is categorically ° ′ ″ Protected Property Rights. southeast to latitude 38 54 11 N, excluded from further review under longitude 074°42′45″ W thence 9. Civil Justice Reform paragraph 34(g) of Figure 2–1 of the southwest to latitude 38°49′39 ″N, This rule meets applicable standards Commandant Instruction. An longitude 074°47′10″ W thence in sections 3(a) and 3(b)(2) of Executive environmental analysis checklist northwest to point of origin, off the Order 12988, Civil Justice Reform, to supporting this determination and a coast of Cape May, NJ. minimize litigation, eliminate Categorical Exclusion Determination are (b) Enforcement period. This rule will ambiguity, and reduce burden. available in the docket where indicated be enforced from October 16, 2014 to under ADDRESSES. We seek any October 24, 2014 from 6:00 a.m. until 10. Protection of Children comments or information that may lead 8:00 p.m. each day, unless cancelled We have analyzed this rule under to the discovery of a significant earlier by the Captain of the Port once Executive Order 13045, Protection of environmental impact from this rule. all operations are completed. Children from Environmental Health List of Subjects in 33 CFR Part 165 (c) Regulations. All persons are Risks and Safety Risks. This rule is not required to comply with the general an economically significant rule and Harbors, Marine safety, Navigation regulations governing safety zones in 33 does not create an environmental risk to (water), Reporting and recordkeeping CFR 165.23 of this part. health or risk to safety that may requirements, Security measures, (1) This section applies to all vessels disproportionately affect children. Waterways. wishing to transit through the Safety

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Zone except vessels that are engaged in Ecology’s jurisdiction, except for major requirements for states to submit SIPs to the following operations: source specific provisions which the attain or maintain the NAAQS and the (i) Enforcing laws; EPA is addressing separately. EPA’s actions regarding approval of (ii) Servicing aids to navigation; and DATES: This final rule is effective on those SIPs. On January 27, 2014, (iii) Emergency response vessels. November 3, 2014. Ecology submitted updates to portions of Chapter 173–400 of the Washington (2) No person or vessel may enter or ADDRESSES: The EPA has established a Administrative Code (WAC) currently in remain in a safety zone without the docket for this action under Docket ID the Federally-approved Washington SIP permission of the Captain of the Port; No. EPA–R10–OAR–2014–0141. All (40 CFR part 52, subpart WW). Ecology (3) Each person and vessel in a safety documents in the docket are listed on did not submit to the EPA those sections zone shall obey any direction or order the www.regulations.gov Web site. of Chapter 173–400 WAC that have not of the Captain of the Port; Although listed in the index, some changed since the last SIP approval by (4) No person may board, or take or information is not publicly available, the EPA. Ecology also did not submit place any article or thing on board, any e.g., Confidential Business Information certain provisions of Chapter 173–400 vessel in a safety zone without the (CBI) or other information the disclosure WAC because they are not related to the permission of the Captain of the Port; of which is restricted by statute. Certain and criteria pollutants regulated under title other material, such as copyrighted I of the CAA, not essential for meeting (5) No person may take or place any material, is not placed on the Internet article or thing upon any waterfront and maintaining the NAAQS, or not and will be publicly available only in related to the requirements for SIPs facility in a safety zone without the hard copy form. Publicly available permission of the Captain of the Port. under section 110 of the CAA. The SIP docket materials are available either revisions covered by this action are (d) Definitions. The Captain of the electronically through Port means the Commander of Sector explained in more detail in the www.regulations.gov or in hard copy at proposed rulemaking, along with an Delaware Bay or any Coast Guard the Air Programs Unit, Office of Air commissioned, warrant, or petty officer evaluation of how these rules comply Waste and Toxics, EPA Region 10, 1200 with the CAA requirements for SIPs (79 who has been authorized by the Captain Sixth Avenue, Seattle, WA, 98101. The of the Port to act on her behalf. FR 39351, July 10, 2014). Also included EPA requests that if at all possible, you in the proposed rulemaking is a (e) Enforcement. The U.S. Coast contact the individual listed in the FOR Guard may be assisted in the patrol and discussion of how the EPA intends to FURTHER INFORMATION CONTACT section to act on the remainder of Ecology’s enforcement of the Safety Zone by view the hard copy of the docket. You Federal, State, and local agencies. submittal, covering the Prevention of may view the hard copy of the docket Significant Deterioration (PSD), Dated: September 23, 2014. Monday through Friday, 8:00 a.m. to Nonattainment New Source Review K. Moore, 4:00 p.m., excluding Federal holidays. (NNSR), and visibility permitting Captain, U.S. Coast Guard, Captain of the FOR FURTHER INFORMATION CONTACT: For programs for major sources. See also the Port Delaware Bay. information on the New Source Review EPA’s proposed rulemaking on the [FR Doc. 2014–23659 Filed 10–2–14; 8:45 am] permitting program, please contact NNSR-specific provisions (79 FR 43345, BILLING CODE 9110–04–P Donna Deneen at (206) 553–6706 or July 25, 2014). [email protected]. For information II. Response to Comments on the Washington SIP in general, ENVIRONMENTAL PROTECTION please contact Jeff Hunt at (206) 553– The EPA received one set of AGENCY 0256, [email protected], or by using the comments on its proposal. above EPA, Region 10 address. Comment: The commenter pointed to another rulemaking action in which 40 CFR Part 52 SUPPLEMENTARY INFORMATION: Ecology stated that a notice of [EPA–R10–OAR–2014–0141; FRL–9917–10– Definitions construction (NOC) 1 approval order Region–10] For the purpose of this document, we issued under WAC 173–400–113(1) does Approval and Promulgation of are giving meaning to certain words or not need to include conditions requiring Implementation Plans; Washington: initials as follows: compliance with federal New Source General Regulations for Air Pollution (i) The words or initials ‘‘Act’’ or Performance Standards (NSPS) or Sources ‘‘CAA’’ mean or refer to the Clean Air National Emissions Standards for Act, unless the context indicates Hazardous Air Pollutants (NESHAP), AGENCY: but that WAC 173–400–113(1) instead Environmental Protection otherwise. only requires that Ecology determine, Agency. (ii) The words ‘‘EPA’’, ‘‘we’’, ‘‘us’’ or prior to issuance of an NOC approval ACTION: Final rule. ‘‘our’’ mean or refer to the United States order, that the new or modified source Environmental Protection Agency. SUMMARY: The Environmental Protection in an attainment area will comply with (iii) The initials ‘‘SIP’’ mean or refer Agency (EPA) is approving revisions to the NSPS and NESHAP. The commenter to State Implementation Plan. the Washington State Implementation states that the EPA’s approval of WAC (iv) The words ‘‘Washington’’ and Plan (SIP) submitted by the Department 173–400–113(1) into the Washington ‘‘State’’ mean the State of Washington. of Ecology (Ecology) on January 27, SIP therefore would ‘‘give a green light’’ 2014. These revisions were submitted in Table of Contents to a regulation that allows Ecology to omit conditions in orders that would accordance with the requirements of I. Background Information section 110 of the Clean Air Act, which II. Response to Comments require compliance with applicable requires states to develop a plan for the III. Final Action NSPS and NESHAP. The commenter implementation, maintenance, and IV. Statutory and Executive Orders Review enforcement of the National Ambient 1 Washington’s air permitting program uses the Air Quality Standards (NAAQS). The I. Background Information terms ‘‘Notice of Construction approval order’’ or ‘‘NOC approval order,’’ which are more commonly revisions update the general air quality Title I of the CAA, as amended by referred to as construction permits in other states regulations that apply to sources within Congress in 1990, specifies the general and as new source review permits under the CAA.

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further states that, because conditions in associated with implementation of provisions of Chapter 173–400 WAC, orders issued under WAC 173–400 are sections 111 and 112. Washington has generally because they are not related to applicable requirements under not submitted for inclusion into the SIP the criteria pollutants regulated under Ecology’s title V operating permit and the EPA has not approved into the title I of the CAA, are not essential for program, Ecology’s actions taken under SIP WAC 173–400–115, in which meeting and maintaining the NAAQS, WAC 173–400 directly impact Ecology’s Ecology has incorporated by reference or are not related to the requirements for implementation of the CAA title V most of the NSPS as a matter of state SIPs under section 110 of the CAA. program in Washington. The commenter law, or WAC 173–400–075, in which These exceptions are noted in the also raises concerns with Ecology’s Ecology has incorporated by reference ‘‘Explanation’’ column of the table. The implementation of requirements under most of the NESHAP as a matter of state EPA’s review and approval of the section 112 of the CAA, which law. In this action, EPA is approving a revised WAC 173–400–110 through addresses hazardous air pollutants state law provision related to –113, 173–400–036, 173–400–171, and (HAPs). The commenter states that the implementation of CAA section 110. 173–400–560 in this action is not a EPA’s approval of WAC 173–400–113(1) Section 110 focuses on implementation determination that these revised as part of the Washington SIP would of the NAAQS. The NSPS and NESHAP regulations meet requirements for major add EPA concurrence to Ecology’s are promulgated under other sections of sources such as a SIP-approved PSD ability to remove a HAP (in particular, the CAA (CAA sections 111 and 112, permitting program (40 CFR 51.166), a radionuclides) from section 112 of the respectively), and any state programs SIP-approved major NNSR permitting CAA and thereby to remove all implementing the NSPS and NESHAP program (40 CFR 51.165), or a SIP- federally-enforceable requirements for CAA purposes are submitted and approved visibility program (40 CFR controlling emissions of that particular approved by EPA under those other 51.307). These regulations are marked HAP from regulation under title V of the statutory authorities. To the extent the with asterisks in Table 1. The EPA will CAA in Washington. The commenter comment raises questions regarding the evaluate these regulations for also questions whether the EPA has adequacy of Ecology’s title V, NSPS, or consistency with the requirements for authority to make enforceable under NEHSAP programs under the CAA, major NSR permitting programs and federal law a provision in a state those issues are outside the scope of this visibility in a separate action. regulation giving Ecology the ability to rulemaking, which relates solely to whether the regulations submitted by As discussed in the proposed omit applicable NSPS and NESHAPs rulemaking for this action, with respect requirements from an NOC approval Ecology meet the requirements for approval into the SIP under section 110 to WAC 173–400–020, Applicability, the order and the ability to move EPA’s approval for this action is limited enforcement of federal requirements of the CAA. The EPA notes, with limited exceptions not relevant here, to only those counties or sources where regulating a HAP from the CAA to a the Department of Ecology has direct state regulation that is both that the NSPS and NESHAP standards are federally enforceable against affected jurisdiction. This action excludes unenforceable under federal law and sources subject to Energy Facilities Site unenforceable by Ecology. sources under the CAA independently of whether such standards have been Evaluation Council (EFSEC) or local Response: The EPA disagrees that adopted by a state as a matter of state clean air agency jurisdiction. The Ecology’s SIP is deficient if new source law. In addition, they are also counties where Ecology has direct review permits issued under the SIP do ‘‘applicable requirements’’ for purposes jurisdiction are: Adams, Asotin, Chelan, not include NSPS or NESHAP of the title V program, 40 CFR 70.2, and Columbia, Douglas, Ferry, Franklin, requirements. In this action, the EPA is as such a title V permit must contain Garfield, Grant, Kittitas, Klickitat, approving WAC 173–400–113(1) for emission limitations and standards that Lincoln, Okanogan, Pend Oreille, San purposes of implementing the assure compliance with any such Juan, Stevens, Walla Walla, and requirements of Section 110 of the CAA, applicable requirements at the time of Whitman. The EPA also notes that particularly, the minor new source permit issuance, 40 CFR 70.6(a). under the SIP-approved provisions of review requirements of CAA Section WAC 173–405–012, WAC 173–410–012, 110(a)(2)(C) and 40 CFR 51.160. Neither III. Final Action and WAC 173–415–012, Ecology has that CAA section nor that CFR provision The EPA is approving into the SIP at direct, statewide jurisdiction for kraft require minor new source review 40 CFR part 52, subpart WW, the pulping mills, sulfite pulping mills, and permits to contain NSPS and NESHAPs Ecology regulations listed in Table 1. It primary aluminum plants. The EPA is requirements. Indeed, this action does is important to note that Ecology did not updating 40 CFR part 52, subpart WW not address the WAC provisions submit for approval into the SIP certain to reflect these changes.

TABLE 1—APPROVED WASHINGTON STATE DEPARTMENT OF ECOLOGY REGULATIONS

State State citation Title/subject effective Explanation date

Chapter 173–400 WAC, General Regulations for Air Pollution Sources

173–400–020 .... Applicability ...... 12/29/12 173–400–030 .... Definitions ...... 12/29/12 Except: 173–400–030(91). 173–400–036 * .. Relocation of Portable Sources ...... 12/29/12 173–400–040 .... General Standards for Maximum Emissions ...... 4/1/11 Except: 173–400–040(2)(c); 173–400–040(2)(d); 173–400–040(3); 173–400–040(5); 173–400–040(7), second paragraph.

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TABLE 1—APPROVED WASHINGTON STATE DEPARTMENT OF ECOLOGY REGULATIONS—Continued

State State citation Title/subject effective Explanation date

173–400–050 .... Emission Standards for Combustion and Incineration Units ...... 12/29/12 Except: 173–400–050(4); 173–400–050(5). 173–400–060 .... Emission Standards for General Process Units ...... 2/10/05 173–400–070 .... Emission Standards for Certain Source Categories ...... 12/29/12 Except: 173–400–070(7); 173–400–070(8). 173–400–081 .... Startup and Shutdown ...... 4/1/11 173–400–091 .... Voluntary Limits on Emissions ...... 4/1/11 173–400–105 .... Records, Monitoring, and Reporting ...... 12/29/12 173–400–110 * .. New Source Review (NSR) for Sources and Portable Sources .. 12/29/12 Except: 173–400–110(1)(c)(ii)(C); 173–400–110(1)(e); 173–400–110(2)(d); The part of WAC 173–400–110(4)(b)(vi) that says, • ‘‘not for use with materials containing toxic air pollutants, as listed in chapter 173–460 WAC,’’; The part of 400–110 (4)(e)(iii) that says, • ‘‘where toxic air pollutants as defined in chapter 173–460 WAC are not emitted’’; The part of 400–110(4)(e)(f)(i) that says, • ‘‘that are not toxic air pollutants listed in chapter 173–460 WAC’’; The part of 400–110 (4)(h)(xviii) that says, • ‘‘, to the extent that toxic air pollutant gases as defined in chapter 173–460 WAC are not emitted’’; The part of 400–110 (4)(h)(xxxiii) that says, • ‘‘where no toxic air pollutants as listed under chapter 173–460 WAC are emit- ted’’; The part of 400–110(4)(h)(xxxiv) that says, • ‘‘, or ≤ 1% (by weight) toxic air pollutants as listed in chapter 173–460 WAC’’; The part of 400–110(4)(h)(xxxv) that says, • ‘‘or ≤ 1% (by weight) toxic air pollutants’’; The part of 400–110(4)(h)(xxxvi) that says, • ‘‘or ≤ 1% (by weight) toxic air pollutants as listed in chapter 173–460 WAC’’; 400–110(4)(h)(xl) , second sentence; The last row of the table in 173–400–110(5)(b) regarding exemption levels for Toxic Air Pollutants. 173–400–111 * .. Processing Notice of Construction Applications for Sources, 12/29/12 Except: Stationary Sources and Portable Sources. 173–400–111(3)(h); 173–400–111(3)(i); The part of 173–400–111(8)(a)(v) that says, • ‘‘and 173–460–040,’’; 173–400–111(9). 173–400–112 * .. Requirements for New Sources in Nonattainment Areas—Re- 12/29/12 Except: view for Compliance with Regulations. 173–400–112(8). 173–400–113 * .. New Sources in Attainment or Unclassifiable Areas—Review for 12/29/12 Except: Compliance with Regulations. 173–400–113(3), second sentence. 173–400–118 .... Designation of Class I, II, and III Areas ...... 12/29/12 173–400–151 .... Retrofit Requirements for Visibility Protection ...... 2/10/05 173–400–171 * .. Public Notice and Opportunity for Public Comment ...... 12/29/12 Except: The part of 173–400–171(3)(b) that says, • ‘‘or any increase in emissions of a toxic air pollutant above the acceptable source impact level for that toxic air pollutant as regulated under chapter 173–460 WAC’’; 173–400–171(12). 173–400–175 .... Public Information ...... 2/10/05 173–400–200 .... Creditable Stack Height and Dispersion Techniques ...... 2/10/05 173–400–560 * .. General Order of Approval ...... 12/29/12 Except: The part of 173–400–560(1)(f) that says, • ‘‘173–460 WAC’’.

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IV. Statutory and Executive Orders • does not provide the EPA with the until 60 days after it is published in the Review discretionary authority to address, as Federal Register. This action is not a appropriate, disproportionate human ‘‘major rule’’ as defined by 5 U.S.C. Under the CAA, the Administrator is health or environmental effects, using 804(2). required to approve a SIP submission practicable and legally permissible that complies with the provisions of the Under section 307(b)(1) of the CAA, methods, under Executive Order 12898 Act and applicable Federal regulations. petitions for judicial review of this (59 FR 7629, February 16, 1994). 42 U.S.C. 7410(k); 40 CFR 52.02(a). action must be filed in the United States The SIP is not approved to apply on Thus, in reviewing SIP submissions, the Court of Appeals for the appropriate any Indian reservation land in EPA’s role is to approve State choices, circuit by December 2, 2014. Filing a Washington except as specifically noted provided that they meet the criteria of petition for reconsideration by the below and is also not approved to apply the Clean Air Act. Accordingly, this Administrator of this final rule does not in any other area where the EPA or an action merely approves State law as affect the finality of this action for the Indian tribe has demonstrated that a meeting Federal requirements and does purposes of judicial review nor does it tribe has jurisdiction. In those areas of not impose additional requirements extend the time within which a petition Indian country, the rule does not have beyond those imposed by State law. For for judicial review may be filed, and tribal implications as specified by that reason, this action: shall not postpone the effectiveness of Executive Order 13175 (65 FR 67249, such rule or action. This action may not • Is not a ‘‘significant regulatory November 9, 2000), nor will it impose be challenged later in proceedings to action’’ subject to review by the Office substantial direct costs on tribal enforce its requirements. See section of Management and Budget under governments or preempt tribal law. 307(b)(2). Executive Order 12866 (58 FR 51735, Washington’s SIP is approved to apply October 4, 1993); List of Subjects in 40 CFR Part 52 • on non-trust land within the exterior does not impose an information boundaries of the Puyallup Indian Environmental protection, Air collection burden under the provisions Reservation, also known as the 1873 pollution control, Carbon monoxide, of the Paperwork Reduction Act (44 Survey Area. Under the Puyallup Tribe Incorporation by reference, U.S.C. 3501 et seq.); of Indians Settlement Act of 1989, 25 Intergovernmental relations, Lead, • is certified as not having a U.S.C. 1773, Congress explicitly Nitrogen dioxide, Ozone, Particulate significant economic impact on a provided state and local agencies in matter, Reporting and recordkeeping substantial number of small entities Washington authority over activities on requirements, Sulfur oxides, Volatile under the Regulatory Flexibility Act (5 non-trust lands within the 1873 Survey organic compounds. U.S.C. 601 et seq.); Area. Consistent with EPA policy, the • does not contain any unfunded Dated: September 16, 2014. EPA nonetheless provided a Michelle L. Pirzadeh, mandate or significantly or uniquely consultation opportunity to the Acting Regional Administrator, Region 10. affect small governments, as described Puyallup Tribe in a letter dated in the Unfunded Mandates Reform Act February 25, 2014. The EPA did not For the reasons set forth in the of 1995 (Pub. L. 104–4); receive a request for consultation. preamble, 40 CFR part 52 is amended as • does not have Federalism The Congressional Review Act, 5 follows: implications as specified in Executive U.S.C. 801 et seq., as added by the Small PART 52—APPROVAL AND Order 13132 (64 FR 43255, August 10, Business Regulatory Enforcement 1999); PROMULGATION OF Fairness Act of 1996, generally provides IMPLEMENTATION PLANS • is not an economically significant that before a rule may take effect, the regulatory action based on health or agency promulgating the rule must ■ 1. The authority citation for Part 52 safety risks subject to Executive Order submit a rule report, which includes a continues to read as follows: 13045 (62 FR 19885, April 23, 1997); copy of the rule, to each House of the • is not a significant regulatory action Congress and to the Comptroller General Authority: 42 U.S.C. 7401 et seq. subject to Executive Order 13211 (66 FR of the United States. The EPA will Subpart WW—Washington 28355, May 22, 2001); submit a report containing this action • is not subject to requirements of and other required information to the ■ 2. Section 52.2470 is amended by Section 12(d) of the National U.S. Senate, the U.S. House of revising paragraph (c) to read as follows: Technology Transfer and Advancement Representatives, and the Comptroller Act of 1995 (15 U.S.C. 272 note) because General of the United States prior to § 52.2470 Identification of plan. this action does not involve technical publication of the rule in the Federal * * * * * standards; and Register. A major rule cannot take effect (c) EPA approved regulations.

TABLE 1—REGULATIONS APPROVED STATEWIDE

State State Title/subject effective EPA approval date Explanations citation date

Washington Administrative Code, Chapter 173–405—Kraft Pulping Mills

173–405–012 ..... Statement of Purpose ...... 3/22/91 1/15/93, 58 FR 4578. 173–405–021 ..... Definitions ...... 3/22/91 1/15/93, 58 FR 4578. 173–405–040 ..... Emissions Standards ...... 3/22/91 1/15/93, 58 FR 4578 ...... except for sections (1)(b), (1)(c), (3)(b), (3)(c), (4), (7), (8) & (9) 173–405–045 ..... Creditable Stack Height & Dispersion Tech- 3/22/91 1/15/93, 58 FR 4578. niques. 173–405–061 ..... More Restrictive Emission Standards ...... 3/22/91 1/15/93, 58 FR 4578.

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TABLE 1—REGULATIONS APPROVED STATEWIDE—Continued

State State Title/subject effective EPA approval date Explanations citation date

173–405–072 ..... Monitoring Requirements ...... 3/22/91 1/15/93, 58 FR 4578 ...... except section (2) 173–405–077 ..... Report of Startup, Shutdown, Breakdown or 3/22/91 1/15/93, 58 FR 4578. Upset Conditions. 173–405–078 ..... Emission Inventory ...... 3/22/91 1/15/93, 58 FR 4578. 173–405–086 ..... New Source Review (NSR) ...... 3/22/91 1/15/93, 58 FR 4578. 173–405–087 ..... Prevention of Significant Deterioration (PSD) 3/22/91 1/15/93, 58 FR 4578. 173–405–091 ..... Special Studies ...... 3/22/91 1/15/93, 58 FR 4578.

Washington Administrative Code, Chapter 173–410—Sulfite Pulping Mills

173–410–012 ..... Statement of Purpose ...... 3/22/91 1/15/93, 58 FR 4578. 173–410–021 ..... Definitions ...... 3/22/91 1/15/93, 58 FR 4578. 173–410–040 ..... Emissions Standards ...... 3/22/91 1/15/93, 58 FR 4578 ...... except the exception provision in (3) & section (5) 173–410–045 ..... Creditable Stack Height & Dispersion Tech- 3/22/91 1/15/93, 58 FR 4578. niques. 173–410–062 ..... Monitoring Requirements ...... 3/22/91 1/15/93, 58 FR 4578. 173–410–067 ..... Report of Startup, Shutdown, Breakdown or 3/22/91 1/15/93, 58 FR 4578. Upset Conditions. 173–410–071 ..... Emission Inventory ...... 3/22/91 1/15/93, 58 FR 4578. 173–410–086 ..... New Source Review (NSR) ...... 3/22/91 1/15/93, 58 FR 4578. 173–410–087 ..... Prevention of Significant Deterioration (PSD) 3/22/91 1/15/93, 58 FR 4578. 173–410–100 ..... Special Studies ...... 3/22/91 1/15/93, 58 FR 4578.

Washington Administrative Code, Chapter 173–415—Primary Aluminum Plants

173–415–010 ..... Statement of Purpose ...... 3/22/91 1/15/93, 58 FR 4578. 173–415–020 ..... Definitions ...... 3/22/91 1/15/93, 58 FR 4578 ...... except sections (1) & (2) 173–415–030 ..... Emissions Standards ...... 3/22/91 1/15/93, 58 FR 4578 ...... except sections (1) & (3)(b) 173–415–045 ..... Creditable Stack Height & Dispersion Tech- 3/22/91 1/15/93, 58 FR 4578. niques. 173–415–050 ..... New Source Review (NSR) ...... 3/22/91 1/15/93, 58 FR 4578. 173–415–051 ..... Prevention of Significant Deterioration (PSD) 3/22/91 1/15/93, 58 FR 4578. 173–415–060 ..... Monitoring and Reporting ...... 3/22/91 1/15/93, 58 FR 4578 ...... except sections (1)(a), (b), & (d) 173–415–070 ..... Report of Startup, Shutdown, Breakdown or 3/22/91 1/15/93, 58 FR 4578. Upset Conditions. 173–415–080 ..... Emission Inventory ...... 3/22/91 1/15/93, 58 FR 4578.

Washington Administrative Code, Chapter 173–422—Motor Vehicle Emission Inspection

173–422–010 ..... Purpose ...... 6/3/93 9/25/96, 61 FR 50235. 173–422–020 ..... Definitions ...... 3/31/95 9/25/96, 61 FR 50235. 173–422–030 ..... Vehicle Emission Inspection Requirement ...... 11/9/96 5/19/97, 62 FR 27204. 173–422–031 ..... Vehicle Emission Inspection Schedules ...... 12/2/00 5/12/05, 70 FR 24491. 173–422–035 ..... Registration Requirements ...... 3/31/95 9/25/96, 61 FR 50235. 173–422–040 ..... Noncompliance Areas ...... 6/3/93 9/25/96, 61 FR 50235. 173–422–050 ..... Emission Contributing Areas ...... 11/9/96 5/19/97, 62 FR 27204. 173–422–060 ..... Gasoline Vehicle Emission Standards ...... 11/9/96 5/19/97, 62 FR 27204. 173–422–065 ..... Diesel Vehicle Exhaust Emission Standards .. 3/31/95 9/25/96, 61 FR 50235. 173–422–070 ..... Gasoline Vehicle Exhaust Emission Testing 11/9/96 5/19/97, 62 FR 27204. Procedures. 173–422–075 ..... Diesel Vehicle Inspection Procedure ...... 3/11/94 9/25/96, 61 FR 50235. 173–422–090 ..... Exhaust Gas Analyzer Specifications ...... 3/31/95 9/25/96, 61 FR 50235. 173–422–095 ..... Exhaust Opacity Testing Equipment ...... 3/11/94 9/25/96, 61 FR 50235. 173–422–100 ..... Testing Equipment Maintenance and Calibra- 3/31/95 9/25/96, 61 FR 50235. tion. 173–422–120 ..... Quality Assurance ...... 3/31/95 9/25/96, 61 FR 50235. 173–422–130 ..... Inspection Fees ...... 3/11/94 9/25/96, 61 FR 50235. 173–422–145 ..... Fraudulent Certificates of Compliance/Accept- 4/6/90 9/25/96, 61 FR 50235. ance. 173–422–160 ..... Fleet and Diesel Owner Vehicle Testing Re- 3/31/95 9/25/96, 61 FR 50235. quirements. 173–422–170 ..... Exemptions ...... 12/2/00 5/12/05, 70 FR 24491. 173–422–175 ..... Fraudulent Exemptions ...... 1/2/84 9/25/96, 61 FR 50235. 173–422–190 ..... Emission Specialist Authorization ...... 11/9/96 5/19/97, 62 FR 27204. 173–422–195 ..... Listing of Authorized Emission Specialists ...... 3/31/95 9/25/96, 61 FR 50235.

Washington Administrative Code, Chapter 173–425—Open Burning

173–425–010 ..... Purpose ...... 10/18/90 1/15/93, 58 FR 4578. 173–425–020 ..... Applicability ...... 10/18/90 1/15/93, 58 FR 4578.

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TABLE 1—REGULATIONS APPROVED STATEWIDE—Continued

State State Title/subject effective EPA approval date Explanations citation date

173–425–030 ..... Definitions ...... 10/18/90 1/15/93, 58 FR 4578. 173–425–036 ..... Curtailment During Episodes or Impaired Air 10/18/90 1/15/93, 58 FR 4578. Quality. 173–425–045 ..... Prohibited Materials ...... 1/3/89 1/15/93, 58 FR 4578. 173–425–055 ..... Exceptions ...... 10/18/90 1/15/93, 58 FR 4578. 173–425–065 ..... Residential Open Burning ...... 10/18/90 1/15/93, 58 FR 4578. 173–425–075 ..... Commercial Open Burning ...... 10/18/90 1/15/93, 58 FR 4578. 173–425–085 ..... Agricultural Open Burning ...... 10/18/90 1/15/93, 58 FR 4578. 173–425–095 ..... No Burn Area Designation ...... 10/18/90 1/15/93, 58 FR 4578. 173–425–100 ..... Delegation of Agricultural Open Burning Pro- 10/18/90 1/15/93, 58 FR 4578. gram. 173–425–115 ..... Land Clearing Projects ...... 10/18/90 1/15/93, 58 FR 4578. 173–425–120 ..... Department of Natural Resources Smoke 10/18/90 1/15/93, 58 FR 4578. Management Plan. 173–425–130 ..... Notice of Violation ...... 10/18/90 1/15/93, 58 FR 4578. 173–425–140 ..... Remedies ...... 10/18/90 1/15/93, 58 FR 4578.

Washington Administrative Code, Chapter 173–430—Burning of Field and Forage and Turf Grasses Grown for Seed Open Burning

173–430–010 ..... Purpose ...... 10/18/90 1/15/93, 58 FR 4578. 173–430–020 ..... Definitions ...... 10/18/90 1/15/93, 58 FR 4578. 173–430–030 ..... Permits, Conditions, and Restrictions ...... 10/18/90 1/15/93, 58 FR 4578. 173–430–040 ..... Mobile Field Burners ...... 10/18/90 1/15/93, 58 FR 4578. 173–430–050 ..... Other Approvals ...... 10/18/90 1/15/93, 58 FR 4578. 173–430–060 ..... Study of Alternatives ...... 10/18/90 1/15/93, 58 FR 4578. 173–430–070 ..... Fees ...... 10/18/90 1/15/93, 58 FR 4578. 173–430–080 ..... Certification of Alternatives ...... 10/18/90 1/15/93, 58 FR 4578.

Washington Administrative Code, Chapter 173–433—Solid Fuel Burning Device Standards

173–433–010 ..... Purpose ...... 2/23/14 5/9/14, 79 FR 26628. 173–433–020 ..... Applicability ...... 12/16/87 1/15/93, 58 FR 4578. 173–433–030 ..... Definitions ...... 2/23/14 5/9/14, 79 FR 26628. 173–433–100 ..... Emission Performance Standards ...... 2/23/14 5/9/14, 79 FR 26628. 173–433–110 ..... Opacity Standards ...... 2/23/14 5/9/14, 79 FR 26628. 173–433–120 ..... Prohibited Fuel Types ...... 2/23/14 5/9/14, 79 FR 26628. 173–433–130 ..... General Emission Standards ...... 10/18/90 1/15/93, 58 FR 4578. 173–433–140 ..... Criteria for Impaired Air Quality Burn Bans .... 2/23/14 5/9/14, 79 FR 26628. 173–433–150 ..... Restrictions on Operation of Solid Fuel Burn- 2/23/14 5/9/14, 79 FR 26628. ing Devices. 173–433–155 ..... Criteria for Prohibiting Solid Fuel Burning De- 2/23/14 5/9/14, 79 FR 26628. vices That Are Not Certified.

Washington Administrative Code, Chapter 173–434—Solid Waste Incinerator Facilities

173–434–010 ..... Purpose ...... 10/18/90 1/15/93, 58 FR 4578. 173–434–020 ..... Applicability and Compliance ...... 1/22/04 8/4/05, 70 FR 44855. 173–434–030 ..... Definitions ...... 1/22/04 8/4/05, 70 FR 44855. 173–434–090 ..... Operation and Maintenance Plan ...... 10/18/90 1/15/93, 58 FR 4578. 173–434–110 ..... Standards of Performance ...... 1/22/04 8/4/05, 70 FR 44855 ...... except section (1)(a) 173–434–130 ..... Emission Standards ...... 1/22/04 8/4/05, 70 FR 44855 ...... except section (2) 173–434–160 ..... Design and Operation ...... 1/22/04 8/4/05, 70 FR 44855. 173–434–170 ..... Monitoring and Reporting ...... 1/22/04 8/4/05, 70 FR 44855. 173–434–190 ..... Changes in Operation ...... 1/22/04 8/4/05, 70 FR 44855. 173–434–200 ..... Emission Inventory ...... 1/22/04 8/4/05, 70 FR 44855. 173–434–210 ..... Special Studies ...... 10/18/90 1/15/93, 58 FR 4578.

Washington Administrative Code, Chapter 173–435—Emergency Episode Plan

173–435–010 ..... Purpose ...... 1/3/89 1/15/93, 58 FR 4578. 173–435–015 ..... Significant Harm Levels ...... 1/3/89 1/15/93, 58 FR 4578. 173–435–020 ..... Definitions ...... 1/3/89 1/15/93, 58 FR 4578. 173–435–030 ..... Episode Stage Criteria ...... 1/3/89 1/15/93, 58 FR 4578. 173–435–040 ..... Source Emission Reduction Plans ...... 1/3/89 1/15/93, 58 FR 4578. 173–435–050 ..... Action Procedures ...... 1/3/89 1/15/93, 58 FR 4578. 173–435–060 ..... Enforcement ...... 1/3/89 1/15/93, 58 FR 4578. 173–435–070 ..... Sampling Sites, Equipment and Methods ...... 1/3/89 1/15/93, 58 FR 4578 ...... except section (1)

Washington Administrative Code, Chapter 173–476—Ambient Air Quality Standards

173–476–010 ..... Purpose ...... 12/22/13 3/4/14, 79 FR 12077.

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TABLE 1—REGULATIONS APPROVED STATEWIDE—Continued

State State Title/subject effective EPA approval date Explanations citation date

173–476–020 ..... Applicability ...... 12/22/13 3/4/14, 79 FR 12077. 173–476–030 ..... Definitions ...... 12/22/13 3/4/14, 79 FR 12077. 173–476–100 ..... Ambient Air Quality Standard for PM–10 ...... 12/22/13 3/4/14, 79 FR 12077. 173–476–110 ..... Ambient Air Quality Standards for PM–2.5 ..... 12/22/13 3/4/14, 79 FR 12077. 173–476–120 ..... Ambient Air Quality Standard for Lead (Pb) ... 12/22/13 3/4/14, 79 FR 12077. 173–476–130 ..... Ambient Air Quality Standards for Sulfur Ox- 12/22/13 3/4/14, 79 FR 12077. ides (Sulfur Dioxide). 173–476–140 ..... Ambient Air Quality Standards for Nitrogen 12/22/13 3/4/14, 79 FR 12077. Oxides (Nitrogen Dioxide). 173–476–150 ..... Ambient Air Quality Standard for Ozone ...... 12/22/13 3/4/14, 79 FR 12077. 173–476–160 ..... Ambient Air Quality Standards for Carbon 12/22/13 3/4/14, 79 FR 12077. Monoxide. 173–476–170 ..... Monitor Siting Criteria ...... 12/22/13 3/4/14, 79 FR 12077. 173–476–180 ..... Reference Conditions ...... 12/22/13 3/4/14, 79 FR 12077. 173–476–900 ..... Table of Standards ...... 12/22/13 3/4/14, 79 FR 12077.

Washington Administrative Code, Chapter 173–490—Emission Standards and Controls for Sources Emitting Volatile Organic Compounds

173–490–010 ..... Policy and Purpose ...... 3/22/91 7/12/93, 58 FR 37426. 173–490–020 ..... Definitions ...... 3/22/91 7/12/93, 58 FR 37426. 173–490–025 ..... General Applicability ...... 3/22/91 7/12/93, 58 FR 37426. 173–490–030 ..... Registration and Reporting ...... 3/22/91 7/12/93, 58 FR 37426. 173–490–040 ..... Requirements ...... 3/22/91 7/12/93, 58 FR 37426. 173–490–080 ..... Exceptions and Alternative Methods ...... 3/22/91 7/12/93, 58 FR 37426. 173–490–090 ..... New Source Review (NSR) ...... 3/22/91 7/12/93, 58 FR 37426. 173–490–200 ..... Petroleum Refinery Equipment Leaks ...... 3/22/91 7/12/93, 58 FR 37426. 173–490–201 ..... Petroleum Liquid Storage in External Floating 3/22/91 7/12/93, 58 FR 37426. Roof Tanks. 173–490–202 ..... Leaks from Gasoline Transport Tanks and 3/22/91 7/12/93, 58 FR 37426. Vapor Collection System. 173–490–203 ..... Perchloroethylene Dry Cleaning Systems ...... 3/22/91 7/12/93, 58 FR 37426. 173–490–204 ..... Graphic Arts System ...... 3/22/91 7/12/93, 58 FR 37426. 173–490–205 ..... Surface Coating of Miscellaneous Metal Parts 3/22/91 7/12/93, 58 FR 37426. and Products. 173–490–207 ..... Surface Coating of Flatwood Paneling ...... 3/22/91 7/12/93, 58 FR 37426. 173–490–208 ..... Aerospace Assembly and Component Coat- 3/22/91 7/12/93, 58 FR 37426. ing Operations.

Washington Administrative Code, Chapter 173–492—Motor Fuel Specifications for Oxygenated Gasoline

173–492–010 ..... Policy and Purpose ...... 10/19/96 4/30/97, 62 FR 23363. 173–492–020 ..... Applicability ...... 12/1/92 4/30/97, 62 FR 23363. 173–492–030 ..... Definitions ...... 12/1/92 4/30/97, 62 FR 23363. 173–492–040 ..... Compliance Requirements ...... 12/1/92 4/30/97, 62 FR 23363. 173–492–050 ..... Registration Requirements ...... 10/19/96 4/30/97, 62 FR 23363. 173–492–060 ..... Labeling Requirements ...... 12/1/92 4/30/97, 62 FR 23363. 173–492–070 ..... Control Areas and Control Periods ...... 10/19/96 4/30/97, 62 FR 23363. 173–492–080 ..... Enforcement and Compliance ...... 12/1/92 4/30/97, 62 FR 23363. 173–492–090 ..... Unplanned Conditions ...... 12/1/92 4/30/97, 62 FR 23363. 173–492–100 ..... Severability ...... 12/1/92 4/30/97, 62 FR 23363.

TABLE 2—ADDITIONAL REGULATIONS APPROVED FOR WASHINGTON DEPARTMENT OF ECOLOGY (ECOLOGY) DIRECT JURISDICTION [Applicable in Adams, Asotin, Chelan, Columbia, Douglas, Ferry, Franklin, Garfield, Grant, Kittitas, Klickitat, Lincoln, Okanogan, Pend Oreille, San Juan, Stevens, Walla Walla, and Whitman counties, excluding facilities subject to Energy Facilities Site Evaluation Council (EFSEC) ju- risdiction. These regulations also apply statewide for facilities subject to the applicability sections of WAC 173–405–012, WAC 173–410–012, and WAC 173–415–012]

State State citation Title/subject effective EPA approval date Explanations date

Washington Administrative Code, Chapter 173–400—General Regulations for Air Pollution Sources

173–400–010 .... Policy and Purpose ...... 3/22/91 6/2/95, 60 FR 28726. 173–400–020 .... Applicability ...... 12/29/12 10/3/14 [Insert Federal Register citation]. 173–400–030 .... Definitions ...... 12/29/12 10/3/14 [Insert Federal Except: Register citation]. 173–400–030(91)

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TABLE 2—ADDITIONAL REGULATIONS APPROVED FOR WASHINGTON DEPARTMENT OF ECOLOGY (ECOLOGY) DIRECT JURISDICTION—Continued [Applicable in Adams, Asotin, Chelan, Columbia, Douglas, Ferry, Franklin, Garfield, Grant, Kittitas, Klickitat, Lincoln, Okanogan, Pend Oreille, San Juan, Stevens, Walla Walla, and Whitman counties, excluding facilities subject to Energy Facilities Site Evaluation Council (EFSEC) ju- risdiction. These regulations also apply statewide for facilities subject to the applicability sections of WAC 173–405–012, WAC 173–410–012, and WAC 173–415–012]

State State citation Title/subject effective EPA approval date Explanations date

173–400–036 * .. Relocation of Portable Sources ...... 12/29/12 10/3/14 [Insert Federal Register citation]. 173–400–040 .... General Standards for Maximum Emis- 4/1/11 10/3/14] [Insert Federal Except: sions. Register citation]. 173–400–040(2)(c); 173–400–040(2)(d); 173–400–040(3); 173–400–040(5); 173–400–040(7), second para- graph. 173–400–050 .... Emission Standards for Combustion and 12/29/12 10/3/14 [Insert Federal Except: Incineration Units. Register citation]. 173–400–050(4); 173–400–050(5). 173–400–060 .... Emission Standards for General Process 2/10/05 10/3/14 [Insert Federal Units. Register citation]. 173–400–070 .... Emission Standards for Certain Source 12/29/12 10/3/14 [Insert Federal Except: Categories. Register citation]. 173–400–070(7); 173–400–070(8). 173–400–081 .... Startup and Shutdown ...... 4/1/11 10/3/14 [Insert Federal Register citation]. 173–400–091 .... Voluntary Limits on Emissions ...... 9/20/93 10/3/14 [Insert Federal Register citation]. 173–400–105 .... Records, Monitoring, and Reporting ...... 12/29/12 10/3/14 [Insert Federal Register citation]. 173–400–107 .... Excess Emissions ...... 9/20/93 6/2/95, 60 FR 28726. 173–400–110 * .. New Source Review (NSR) for Sources 12/29/12 10/3/14 [Insert Federal Except: and Portable Sources. Register citation]. 173–400–110(1)(c)(ii)(C); 173–400–110(1)(e); 173–400–110(2)(d); The part of WAC 173–400– 110(4)(b)(vi) that says, ‘‘not for use with materials containing toxic air pollutants, as listed in chapter 173–460 WAC,’’; The part of 400–110(4)(e)(iii) that says, ‘‘where toxic air pollutants as defined in chapter 173–460 WAC are not emitted’’; The part of 400–110(4)(e)(f)(i) that says, ‘‘that are not toxic air pol- lutants listed in chapter 173–460 WAC’’; The part of 400–110(4)(h)(xviii) that says, ‘‘, to the extent that toxic air pollutant gases as de- fined in chapter 173–460 WAC are not emitted’’; The part of 400–110(4)(h)(xxxiii) that says, ‘‘where no toxic air pollutants as listed under chap- ter 173–460 WAC are emitted’’; The part of 400–110(4)(h)(xxxiv) that says, ‘‘, or ≤1% (by weight) toxic air pollutants as listed in chapter 173–460 WAC’’; The part of 400–110(4)(h)(xxxv) that says, ‘‘or ≤1% (by weight) toxic air pollutants’’;

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TABLE 2—ADDITIONAL REGULATIONS APPROVED FOR WASHINGTON DEPARTMENT OF ECOLOGY (ECOLOGY) DIRECT JURISDICTION—Continued [Applicable in Adams, Asotin, Chelan, Columbia, Douglas, Ferry, Franklin, Garfield, Grant, Kittitas, Klickitat, Lincoln, Okanogan, Pend Oreille, San Juan, Stevens, Walla Walla, and Whitman counties, excluding facilities subject to Energy Facilities Site Evaluation Council (EFSEC) ju- risdiction. These regulations also apply statewide for facilities subject to the applicability sections of WAC 173–405–012, WAC 173–410–012, and WAC 173–415–012]

State State citation Title/subject effective EPA approval date Explanations date

The part of 400–110(4)(h)(xxxvi) that says, ‘‘or ≤ 1% (by weight) toxic air pollutants as listed in chapter 173–460 WAC’’; 400– 110(4)(h)(xl), second sentence; The last row of the table in 173– 400–110(5)(b) regarding exemp- tion levels for Toxic Air Pollut- ants. 173–400–111 * .. Processing Notice of Construction Applica- 12/29/12 10/3/14 [Insert Federal Except: tions for Sources, Stationary Sources Register citation]. and Portable Sources. 173–400–111(3)(h); 173–400–111(3)(i); The part of 173–400–111(8)(a)(v) that says, ‘‘and 173–460–040,’’; 173–400–111(9). 173–400–112 * .. Requirements for New Sources in Non- 12/29/12 10/3/14 [Insert Federal Except: attainment Areas—Review for Compli- Register citation]. 173–400–112(8) ance with Regulations. 173–400–113 * .. New Sources in Attainment or 12/29/12 10/3/14 [Insert Federal Except: Unclassifiable Areas—Review for Com- Register citation]. 173–400–113(3), pliance with Regulations. second sentence. 173–400–118 .... Designation of Class I, II, and III Areas ..... 12/29/12 10/3/14 [Insert Federal Register citation]. 173–400–151 .... Retrofit Requirements for Visibility Protec- 2/10/05 10/3/14 [Insert Federal tion. Register citation]. 173–400–161 .... Compliance Schedules ...... 3/22/91 6/2/95, 60 FR 28726. 173–400–171 * .. Public Notice and Opportunity for Public 12/29/12 10/3/14 [Insert Federal Except: Comment. Register citation]. The part of 173–400–171(3)(b) that says, ‘‘or any increase in emissions of a toxic air pollutant above the acceptable source im- pact level for that toxic air pollut- ant as regulated under chapter 173–460 WAC’’; 173–400–171 (12). 173–400–175 .... Public Information ...... 2/10/05 10/3/14 [Insert Federal Register citation]. 173–400–190 .... Requirements for Nonattainment Areas .... 3/22/91 6/2/95, 60 FR 28726. 173–400–200 .... Creditable Stack Height and Dispersion 2/10/05 10/3/14 [Insert Federal Techniques. Register citation]. 173–400–205 .... Adjustment for Atmospheric Conditions ..... 3/22/91 6/2/95, 60 FR 28726. 173–400–210 .... Emission Requirements of Prior Jurisdic- 3/22/91 6/2/95, 60 FR 28726. tions. 173–400–220 .... Requirements for Board Members ...... 3/22/91 6/2/95, 60 FR 28726. 173–400–230 .... Regulatory Actions ...... 3/20/93 6/2/95, 60 FR 28726. 173–400–240 .... Criminal Penalties ...... 3/22/91 6/2/95, 60 FR 28726. 173–400–250 .... Appeals ...... 9/20/93 6/2/95, 60 FR 28726. 173–400–260 .... Conflict of Interest ...... 3/22/91 6/2/95, 60 FR 28726. 173–400–560 * .. General Order of Approval ...... 12/29/12 10/3/14 [Insert Federal Except: Register citation]. The part of 173–400–560(1)(f) that says, ‘‘173–460 WAC’’. * The EPA’s approval of the WAC 173–400–110 through –113, 173–400–036, 173–400–171, and 173–400–560 is not a determination that these regulations meet requirements for major sources such as a SIP-approved PSD permitting program (40 CFR 51.166), a SIP-approved major NNSR permitting program (40 CFR 51.165), or a SIP-approved visibility program (40 CFR 51.307).

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TABLE 3—ADDITIONAL REGULATIONS APPROVED FOR THE ENERGY FACILITIES SITE EVALUATION COUNCIL (EFSEC) JURISDICTION [See the SIP-approved provisions of WAC 463–39–020 for jurisdictional applicability]

State State citation Title/subject effective EPA approval date Explanations date

Washington Administrative Code, Chapter 463–39—General Regulations for Air Pollution Sources

463–39–005 ...... Adoption by Reference ...... 9/21/95 5/23/96, 61 FR 25791 ...... except sections (2), (3) & (4). 463–39–010 ...... Purpose ...... 5/3/92 5/23/96, 61 FR 25791. 463–39–020 ...... Applicability ...... 9/21/95 5/23/96, 61 FR 25791. 463–39–030 ...... Additional Definitions ...... 9/21/95 5/23/96, 61 FR 25791. 463–39–095 ...... Permit Issuance ...... 9/21/95 5/23/96, 61 FR 25791. 463–39–100 ...... Registration ...... 12/11/93 5/23/96, 61 FR 25791. 463–39–120 ...... Monitoring and Special Report ...... 9/21/95 5/23/96, 61 FR 25791. 463–39–135 ...... Criminal Penalties ...... 8/6/79 5/23/96, 61 FR 25791. 463–39–170 ...... Conflict of Interest ...... 8/6/79 5/23/96, 61 FR 25791. 463–39–230 ...... Regulatory Actions ...... 8/26/94 5/23/96, 61 FR 25791 ......

TABLE 4—ADDITIONAL REGULATIONS APPROVED FOR THE BENTON CLEAN AIR AGENCY (BCAA) JURISDICTION [Applicable in Benton County, excluding facilities subject to Energy Facilities Site Evaluation Council (EFSEC) jurisdiction and facilities subject to the applicability sections of WAC 173–405–012, WAC 173–410–012, and WAC 173–415–012]

State State citation Title/subject effective EPA approval date Explanations date

Washington Department of Ecology Regulations

Washington Administrative Code, Chapter 173–400—General Regulations for Air Pollution Sources

173–400–010 .... Policy and Purpose ...... 3/22/91 6/2/95, 60 FR 28726. 173–400–020 .... Applicability ...... 3/22/91 6/2/95, 60 FR 28726. 173–400–030 .... Definitions ...... 3/22/91 6/2/95, 60 FR 28726. 173–400–040 .... General Standards for Maximum Emis- 3/22/91 6/2/95, 60 FR 28726 ...... except (1)(c), and (1)(d), (2), (4), sions. and the 2nd paragraph of (6). 173–400–050 .... Emission Standards for Combustion and 3/22/91 6/2/95, 60 FR 28726 ...... except the exception provision in Incineration Units. (3). 173–400–060 .... Emission Standards for General Process 3/22/91 6/2/95, 60 FR 28726. Units. 173–400–070 .... Emission Standards for Certain Source 3/22/91 6/2/95, 60 FR 28726 ...... except (7). Categories. 173–400–081 .... Startup and Shutdown ...... 9/20/93 6/2/95, 60 FR 28726. 173–400–091 .... Voluntary Limits on Emissions ...... 9/20/93 6/2/95, 60 FR 28726 ...... including all regulatory orders issued pursuant to this section. 173–400–100 .... Registration ...... 9/20/93 6/2/95, 60 FR 28726. 173–400–105 .... Records, Monitoring and Reporting ...... 9/20/93 6/2/95, 60 FR 28726. 173–400–107 .... Excess Emissions ...... 9/20/93 6/2/95, 60 FR 28726. 173–400–110 .... New Source Review (NSR) ...... 9/20/93 6/2/95, 60 FR 28726. 173–400–112 .... Requirements for New Sources in Non- 9/20/93 6/2/95, 60 FR 28726 ...... except (8). attainment Areas. 173–400–113 .... Requirements for New Sources in Attain- 9/20/93 6/2/95, 60 FR 28726 ...... except (5). ment or Unclassifiable Areas. 173–400–151 .... Retrofit Requirements for Visibility Protec- 3/22/91 6/2/95, 60 FR 28726. tion. 173–400–161 .... Compliance Schedules ...... 3/22/91 6/2/95, 60 FR 28726. 173–400–171 .... Public Involvement ...... 9/20/93 6/2/95, 60 FR 28726. 173–400–190 .... Requirements for Nonattainment Areas .... 3/22/91 6/2/95, 60 FR 28726. 173–400–200 .... Creditable Stack Height & Dispersion 3/22/91 6/2/95, 60 FR 28726. Techniques. 173–400–205 .... Adjustment for Atmospheric Conditions ..... 3/22/91 6/2/95, 60 FR 28726. 173–400–210 .... Emission Requirements of Prior Jurisdic- 3/22/91 6/2/95, 60 FR 28726. tions. 173–400–220 .... Requirements for Board Members ...... 3/22/91 6/2/95, 60 FR 28726. 173–400–230 .... Regulatory Actions ...... 3/20/93 6/2/95, 60 FR 28726. 173–400–240 .... Criminal Penalties ...... 3/22/91 6/2/95, 60 FR 28726. 173–400–250 .... Appeals ...... 9/20/93 6/2/95, 60 FR 28726. 173–400–260 .... Conflict of Interest ...... 3/22/91 6/2/95, 60 FR 28726 ......

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TABLE 5—ADDITIONAL REGULATIONS APPROVED FOR THE NORTHWEST CLEAN AIR AGENCY (NWCAA) JURISDICTION [Applicable in Island, Skagit and Whatcom counties, excluding facilities subject to Energy Facilities Site Evaluation Council (EFSEC) jurisdiction and facilities subject to the applicability sections of WAC 173–405–012, WAC 173–410–012, and WAC 173–415–012]

State State citation Title/subject effective EPA approval date Explanations date

Washington Department of Ecology Regulations

Washington Administrative Code, Chapter 173–400—General Regulations for Air Pollution Sources

173–400–010 .... Policy and Purpose ...... 3/22/91 6/2/95, 60 FR 28726. 173–400–020 .... Applicability ...... 3/22/91 6/2/95, 60 FR 28726. 173–400–030 .... Definitions ...... 3/22/91 6/2/95, 60 FR 28726. 173–400–040 .... General Standards for Maximum Emis- 3/22/91 6/2/95, 60 FR 28726 ...... except (1)(c), and (1)(d), (2), (4), sions. and the 2nd paragraph of (6). 173–400–050 .... Emission Standards for Combustion and 3/22/91 6/2/95, 60 FR 28726 ...... except the exception provision in Incineration Units. (3). 173–400–060 .... Emission Standards for General Process 3/22/91 6/2/95, 60 FR 28726. Units. 173–400–070 .... Emission Standards for Certain Source 3/22/91 6/2/95, 60 FR 28726 ...... except (7). Categories. 173–400–081 .... Startup and Shutdown ...... 9/20/93 6/2/95, 60 FR 28726. 173–400–091 .... Voluntary Limits on Emissions ...... 9/20/93 6/2/95, 60 FR 28726 ...... including all regulatory orders issued pursuant to this section. 173–400–100 .... Registration ...... 9/20/93 6/2/95, 60 FR 28726. 173–400–105 .... Records, Monitoring and Reporting ...... 9/20/93 6/2/95, 60 FR 28726. 173–400–107 .... Excess Emissions ...... 9/20/93 6/2/95, 60 FR 28726. 173–400–110 .... New Source Review (NSR) ...... 9/20/93 6/2/95, 60 FR 28726. 173–400–112 .... Requirements for New Sources in Non- 9/20/93 6/2/95, 60 FR 28726 ...... except (8). attainment Areas. 173–400–113 .... Requirements for New Sources in Attain- 9/20/93 6/2/95, 60 FR 28726 ...... except (5). ment or Unclassifiable Areas. 173–400–151 .... Retrofit Requirements for Visibility Protec- 3/22/91 6/2/95, 60 FR 28726. tion. 173–400–161 .... Compliance Schedules ...... 3/22/91 6/2/95, 60 FR 28726. 173–400–171 .... Public Involvement ...... 9/20/93 6/2/95, 60 FR 28726. 173–400–190 .... Requirements for Nonattainment Areas .... 3/22/91 6/2/95, 60 FR 28726. 173–400–200 .... Creditable Stack Height & Dispersion 3/22/91 6/2/95, 60 FR 28726. Techniques. 173–400–205 .... Adjustment for Atmospheric Conditions ..... 3/22/91 6/2/95, 60 FR 28726. 173–400–210 .... Emission Requirements of Prior Jurisdic- 3/22/91 6/2/95, 60 FR 28726. tions. 173–400–220 .... Requirements for Board Members ...... 3/22/91 6/2/95, 60 FR 28726. 173–400–230 .... Regulatory Actions ...... 3/20/93 6/2/95, 60 FR 28726. 173–400–240 .... Criminal Penalties ...... 3/22/91 6/2/95, 60 FR 28726. 173–400–250 .... Appeals ...... 9/20/93 6/2/95, 60 FR 28726. 173–400–260 .... Conflict of Interest ...... 3/22/91 6/2/95, 60 FR 28726.

Northwest Clean Air Agency Regulations

General Provisions

100 ...... Name of Authority ...... 9/8/93 2/22/95, 60 FR 9778. 101 ...... Short Title ...... 9/8/93 2/22/95, 60 FR 9778. 102 ...... Policy ...... 9/8/93 2/22/95, 60 FR 9778. 103 ...... Duties & Powers ...... 9/8/93 2/22/95, 60 FR 9778. 104 ...... Adoption of State/Federal Laws and Rules 11/13/94 10/24/95, 60 FR 54439 ...... except section 104.2. 105 ...... Separability ...... 9/8/93 2/22/95, 60 FR 9778. 106 ...... Public Records ...... 9/8/93 2/22/95, 60 FR 9778. 110 ...... Investigation and Studies ...... 9/8/93 2/22/95, 60 FR 9778. 111 ...... Interference or Obstruction ...... 9/8/93 2/22/95, 60 FR 9778. 112 ...... False and Misleading Oral Statements ...... 9/8/93 2/22/95, 60 FR 9778. 113 ...... Service of Notice ...... 9/8/93 2/22/95, 60 FR 9778. 114 ...... Confidential Information ...... 9/8/93 2/22/95, 60 FR 9778. 120 ...... Hearings ...... 9/8/93 2/22/95, 60 FR 9778. 121 ...... Orders ...... 9/8/93 2/22/95, 60 FR 9778. 122 ...... Appeals from Orders or Violations ...... 9/8/93 2/22/95, 60 FR 9778. 123 ...... Status of Orders on Appeal ...... 9/8/93 2/22/95, 60 FR 9778. 124 ...... Display of Orders ...... 9/8/93 2/22/95, 60 FR 9778. 130 ...... Citations—Notices ...... 9/8/93 2/22/95, 60 FR 9778. 131 ...... Violations—Notices ...... 9/8/93 2/22/95, 60 FR 9778. 132 ...... Criminal Penalty ...... 11/13/94 10/24/95, 60 FR 54439. 133 ...... Civil Penalty ...... 11/13/94 10/24/95, 60 FR 54439. 134 ...... Restraining Orders—Injunction ...... 9/8/93 2/22/95, 60 FR 9778.

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TABLE 5—ADDITIONAL REGULATIONS APPROVED FOR THE NORTHWEST CLEAN AIR AGENCY (NWCAA) JURISDICTION— Continued [Applicable in Island, Skagit and Whatcom counties, excluding facilities subject to Energy Facilities Site Evaluation Council (EFSEC) jurisdiction and facilities subject to the applicability sections of WAC 173–405–012, WAC 173–410–012, and WAC 173–415–012]

State State citation Title/subject effective EPA approval date Explanations date

135 ...... Additional Enforcement—Compliance 9/8/93 2/22/95, 60 FR 9778. Schedules. 140 ...... Reporting by Government Agencies ...... 9/8/93 2/22/95, 60 FR 9778. 145 ...... Motor Vehicle Owner Responsibility ...... 9/8/93 2/22/95, 60 FR 9778. 150 ...... Pollutant Disclosure—Reporting by Air 9/8/93 2/22/95, 60 FR 9778. Containment Sources. 180 ...... Sampling and Analytical Methods/Ref- 9/8/93 2/22/95, 60 FR 9778. erences.

Definitions

200 ...... Definitions ...... 11/13/94 10/24/95, 60 FR 54439.

Control Procedures

300 ...... Notice of Construction When Required ..... 11/13/94 10/24/95, 60 FR 54439. 301 ...... Information Required for Notice of Con- 11/13/94 10/24/95, 60 FR 54439. struction & Application for Approval, Public Notice, Public Hearing. 302 ...... Issuance of Approval or Order ...... 11/13/94 10/24/95, 60 FR 54439. 303 ...... Notice of Completion—Notice of Violation 9/8/93 2/22/95, 60 FR 9778. 310 ...... Approval to Operate Required ...... 9/8/93 2/22/95, 60 FR 9778. 320 ...... Registration Required ...... 9/8/93 2/22/95, 60 FR 9778. 321 ...... General Requirements for Registration ..... 9/8/93 2/22/95, 60 FR 9778. 322 ...... Exemptions from Registration ...... 11/13/94 10/24/95, 60 FR 54439. 323 ...... Classes of Registration ...... 9/8/93 2/22/95, 60 FR 9778. 324 ...... Fees ...... 11/13/94 10/24/95, 60 FR 54439 ...... except section 324.121. 325 ...... Transfer ...... 9/8/93 2/22/95, 60 FR 9778. 340 ...... Report of Breakdown and Upset ...... 11/13/94 10/24/95, 60 FR 54439. 341 ...... Schedule Report of Shutdown or Start-Up 9/8/93 2/22/95, 60 FR 9778. 342 ...... Operation and Maintenance ...... 9/8/93 2/22/95, 60 FR 9778. 360 ...... Testing and Sampling ...... 9/8/93 2/22/95, 60 FR 9778. 365 ...... Monitoring ...... 9/8/93 2/22/95, 60 FR 9778. 366 ...... Instrument Calibration ...... 9/8/93 2/22/95, 60 FR 9778.

Standards

400 ...... Ambient Air Standards—Forward ...... 9/8/93 2/22/95, 60 FR 9778. 401 ...... Suspended Particulate Standards (PM–10) 9/8/93 2/22/95, 60 FR 9778. 410 ...... Sulfur Oxide Standards ...... 9/8/93 2/22/95, 60 FR 9778. 420 ...... Carbon Monoxide Standards ...... 9/8/93 2/22/95, 60 FR 9778. 422 ...... Nitrogen Oxide Standards ...... 9/8/93 2/22/95, 60 FR 9778. 424 ...... Ozone Standards ...... 9/8/93 2/22/95, 60 FR 9778. 450 ...... Emission Standards—Forward ...... 9/8/93 2/22/95, 60 FR 9778. 451 ...... Emission of Air Contaminant—Visual 11/13/94 10/24/95, 60 FR 54439. Standards. 452 ...... Motor Vehicle Visual Standards ...... 9/8/93 2/22/95, 60 FR 9778 ...... except section 452.5. 455 ...... Emission of Particulate Matter ...... 9/8/93 2/22/95, 60 FR 9778. 458 ...... Incinerators—Wood Waste Burners ...... 9/8/93 2/22/95, 60 FR 9778. 460 ...... Weight/Heat Rate Standard—Emission of 9/8/93 2/22/95, 60 FR 9778. Sulfur Compounds. 462 ...... Emission of Sulfur Compounds ...... 11/13/94 10/24/95, 60 FR 54439. 466 ...... Portland Cement Plants ...... 9/8/93 2/22/95, 60 FR 9778.

Regulated Activities and Prohibitions

510 ...... Incinerator Burning ...... 9/8/93 2/22/95, 60 FR 9778. 520 ...... Sulfur Compounds in Fuel ...... 9/8/93 2/22/95, 60 FR 9778. 550 ...... Particulate Matter from Becoming Airborne 9/8/93 2/22/95, 60 FR 9778. 560 ...... Storage of Organic Liquids ...... 9/8/93 2/22/95, 60 FR 9778. 580 ...... Volatile Organic Compound Control (VOC) 11/13/94 10/24/95, 60 FR 54439 ......

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TABLE 6—ADDITIONAL REGULATIONS APPROVED FOR THE OLYMPIC REGION CLEAN AIR AGENCY (ORCAA) JURISDICTION [Applicable in Clallam, Grays Harbor, Jefferson, Mason, Pacific, and Thurston counties, excluding facilities subject to Energy Facilities Site Eval- uation Council (EFSEC) jurisdiction and facilities subject to the applicability sections of WAC 173–405–012, WAC 173–410–012, and WAC 173–415–012]

State State citation Title/subject effective EPA approval date Explanations date

Washington Department of Ecology Regulations

Washington Administrative Code, Chapter 173–400—General Regulations for Air Pollution Sources

173–400–010 .... Policy and Purpose ...... 3/22/91 6/2/95, 60 FR 28726. 173–400–020 .... Applicability ...... 3/22/91 6/2/95, 60 FR 28726. 173–400–030 .... Definitions ...... 3/22/91 6/2/95, 60 FR 28726. 173–400–040 .... General Standards for Maximum Emis- 3/22/91 6/2/95, 60 FR 28726 ...... except (1)(c), and (1)(d), (2), (4), sions. and the 2nd paragraph of (6). 173–400–050 .... Emission Standards for Combustion and 3/22/91 6/2/95, 60 FR 28726 ...... except the exception provision in Incineration Units. (3). 173–400–060 .... Emission Standards for General Process 3/22/91 6/2/95, 60 FR 28726. Units. 173–400–070 .... Emission Standards for Certain Source 3/22/91 6/2/95, 60 FR 28726 ...... except (7). Categories. 173–400–081 .... Startup and Shutdown ...... 9/20/93 6/2/95, 60 FR 28726. 173–400–091 .... Voluntary Limits on Emissions ...... 9/20/93 6/2/95, 60 FR 28726 ...... including all regulatory orders issued pursuant to this section. 173–400–100 .... Registration ...... 9/20/93 6/2/95, 60 FR 28726. 173–400–105 .... Records, Monitoring and Reporting ...... 9/20/93 6/2/95, 60 FR 28726. 173–400–107 .... Excess Emissions ...... 9/20/93 6/2/95, 60 FR 28726. 173–400–110 .... New Source Review (NSR) ...... 9/20/93 6/2/95, 60 FR 28726. 173–400–112 .... Requirements for New Sources in Non- 9/20/93 6/2/95, 60 FR 28726 ...... except (8). attainment Areas. 173–400–113 .... Requirements for New Sources in Attain- 9/20/93 6/2/95, 60 FR 28726 ...... except (5). ment or Unclassifiable Areas. 173–400–151 .... Retrofit Requirements for Visibility Protec- 3/22/91 6/2/95, 60 FR 28726. tion. 173–400–161 .... Compliance Schedules ...... 3/22/91 6/2/95, 60 FR 28726. 173–400–171 .... Public Involvement ...... 9/20/93 6/2/95, 60 FR 28726. 173–400–190 .... Requirements for Nonattainment Areas .... 3/22/91 6/2/95, 60 FR 28726. 173–400–200 .... Creditable Stack Height & Dispersion 3/22/91 6/2/95, 60 FR 28726. Techniques. 173–400–205 .... Adjustment for Atmospheric Conditions ..... 3/22/91 6/2/95, 60 FR 28726. 173–400–210 .... Emission Requirements of Prior Jurisdic- 3/22/91 6/2/95, 60 FR 28726. tions. 173–400–220 .... Requirements for Board Members ...... 3/22/91 6/2/95, 60 FR 28726. 173–400–230 .... Regulatory Actions ...... 3/20/93 6/2/95, 60 FR 28726. 173–400–240 .... Criminal Penalties ...... 3/22/91 6/2/95, 60 FR 28726. 173–400–250 .... Appeals ...... 9/20/93 6/2/95, 60 FR 28726 ...... 173–400–260 .... Conflict of Interest ...... 3/22/91 6/2/95, 60 FR 28726 ......

Olympic Region Clean Air Agency Regulations

Rule 6.2 Outdoor Burning

6.2.3 ...... No Residential or Land Clearing Burning .. 2/4/12 10/3/13, 78 FR 61188 ...... Only as it applies to the cities of Olympia, Lacey, and Tumwater. 6.2.6 ...... Curtailment ...... 3/18/11 10/3/13, 78 FR 61188 ...... 6.2.7 ...... Recreational Burning ...... 3/18/11 10/3/13, 78 FR 61188 ......

Rule 8.1 Wood Heating

8.1.1 ...... Definitions ...... 5/22/10 10/3/13, 78 FR 61188. 8.1.2 (b) and (c) General Emission Standards ...... 5/22/10 10/3/13, 78 FR 61188. 8.1.3 ...... Prohibited Fuel Types ...... 5/22/10 10/3/13, 78 FR 61188. 8.1.4 ...... Curtailment ...... 5/22/10 10/3/13, 78 FR 61188. 8.1.5 ...... Exceptions ...... 5/22/10 10/3/13, 78 FR 61188. 8.1.7 ...... Sale and Installation of Uncertified 5/22/10 10/3/13, 78 FR 61188. Woodstoves. 8.1.8 ...... Disposal of Uncertified Woodstoves ...... 5/22/10 10/3/13, 78 FR 61188 ......

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TABLE 7—ADDITIONAL REGULATIONS APPROVED FOR THE PUGET SOUND CLEAN AIR AGENCY (PSCAA) JURISDICTION [Applicable in King, Kitsap, Pierce and Snohomish counties, excluding facilities subject to Energy Facilities Site Evaluation Council (EFSEC) jurisdiction and facilities subject to the applicability sections of WAC 173–405–012, WAC 173–410–012, and WAC 173–415–012]

State State citation Title/subject effective EPA approval date Explanations date

Washington Department of Ecology Regulations

Washington Administrative Code, Chapter 173–400—General Regulations for Air Pollution Sources

173–400–010 .... Policy and Purpose ...... 3/22/91 6/2/95, 60 FR 28726. 173–400–020 .... Applicability ...... 3/22/91 6/2/95, 60 FR 28726. 173–400–030 .... Definitions ...... 3/22/91 6/2/95, 60 FR 28726. 173–400–040 .... General Standards for Maximum Emis- 3/22/91 6/2/95, 60 FR 28726 ...... except (1)(c), and (1)(d), (2), (4), sions. and the 2nd paragraph of (6). 173–400–050 .... Emission Standards for Combustion and 3/22/91 6/2/95, 60 FR 28726 ...... except the exception provision in Incineration Units. (3). 173–400–060 .... Emission Standards for General Process 3/22/91 6/2/95, 60 FR 28726. Units. 173–400–070 .... Emission Standards for Certain Source 3/22/91 6/2/95, 60 FR 28726 ...... except (7). Categories. 173–400–081 .... Startup and Shutdown ...... 9/20/93 6/2/95, 60 FR 28726. 173–400–091 .... Voluntary Limits on Emissions ...... 9/20/93 6/2/95, 60 FR 28726 ...... including all regulatory orders issued pursuant to this section. 173–400–100 .... Registration ...... 9/20/93 6/2/95, 60 FR 28726. 173–400–105 .... Records, Monitoring and Reporting ...... 9/20/93 6/2/95, 60 FR 28726. 173–400–107 .... Excess Emissions ...... 9/20/93 6/2/95, 60 FR 28726. 173–400–110 .... New Source Review (NSR) ...... 9/20/93 6/2/95, 60 FR 28726. 173–400–112 .... Requirements for New Sources in Non- 9/20/93 6/2/95, 60 FR 28726 ...... except (8). attainment Areas. 173–400–113 .... Requirements for New Sources in Attain- 9/20/93 6/2/95, 60 FR 28726 ...... except (5). ment or Unclassifiable Areas. 173–400–151 .... Retrofit Requirements for Visibility Protec- 3/22/91 6/2/95, 60 FR 28726. tion. 173–400–161 .... Compliance Schedules ...... 3/22/91 6/2/95, 60 FR 28726. 173–400–171 .... Public Involvement ...... 9/20/93 6/2/95, 60 FR 28726. 173–400–190 .... Requirements for Nonattainment Areas .... 3/22/91 6/2/95, 60 FR 28726. 173–400–200 .... Creditable Stack Height & Dispersion 3/22/91 6/2/95, 60 FR 28726. Techniques. 173–400–205 .... Adjustment for Atmospheric Conditions ..... 3/22/91 6/2/95, 60 FR 28726. 173–400–210 .... Emission Requirements of Prior Jurisdic- 3/22/91 6/2/95, 60 FR 28726. tions. 173–400–220 .... Requirements for Board Members ...... 3/22/91 6/2/95, 60 FR 28726. 173–400–230 .... Regulatory Actions ...... 3/20/93 6/2/95, 60 FR 28726. 173–400–240 .... Criminal Penalties ...... 3/22/91 6/2/95, 60 FR 28726. 173–400–250 .... Appeals ...... 9/20/93 6/2/95, 60 FR 28726. 173–400–260 .... Conflict of Interest ...... 3/22/91 6/2/95, 60 FR 28726.

Puget Sound Clean Air Agency Regulations

Regulation I—Article 1: Policy, Short Title, and Definitions

1.01 ...... Policy ...... 11/1/99 8/31/04, 69 FR 53007. 1.03 ...... Name of Agency ...... 11/1/99 8/31/04, 69 FR 53007. 1.05 ...... Short Title ...... 11/1/99 8/31/04, 69 FR 53007. 1.07 ...... Definitions ...... 5/19/94 6/29/95, 60 FR 33734.

Regulation I—Article 3: General Provisions

3.04 ...... Reasonably Available Control Technology 4/17/99 8/31/04, 69 FR 53007 ...... except (e). 3.06 ...... Credible Evidence ...... 11/14/98 8/31/04, 69 FR 53007.

Regulation I—Article 5: Registration

5.02 ...... Applicability and Purpose of the Registra- 11/1/96 8/6/97, 62 FR 42216. tion Program. 5.03 ...... Registration Required ...... 8/13/99 8/31/04, 69 FR 53007 ...... except (a)(5). 5.05 ...... General Reporting Requirements for Reg- 11/1/98 8/31/04, 69 FR 53007. istration.

Regulation I—Article 6: New Source Review

6.03 ...... Notice of Construction ...... 11/1/96 8/6/97, 62 FR 42216. 6.04 ...... Notice of Construction Review Fees ...... 11/1/97 4/21/98, 63 FR 19658. 6.06 ...... Public Notice ...... 5/19/94 6/29/95, 60 FR 33734.

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TABLE 7—ADDITIONAL REGULATIONS APPROVED FOR THE PUGET SOUND CLEAN AIR AGENCY (PSCAA) JURISDICTION— Continued [Applicable in King, Kitsap, Pierce and Snohomish counties, excluding facilities subject to Energy Facilities Site Evaluation Council (EFSEC) jurisdiction and facilities subject to the applicability sections of WAC 173–405–012, WAC 173–410–012, and WAC 173–415–012]

State State citation Title/subject effective EPA approval date Explanations date

6.07 ...... Order of Approval—Order to Prevent Con- 5/19/94 6/29/95, 60 FR 33734. struction. 6.08 ...... Emission Reduction Credit Banking ...... 1/1/93 8/29/94, 59 FR 44324. 6.09 ...... Notice of Completion ...... 5/19/94 6/29/95, 60 FR 33734 ...... 6.10 ...... Work Done without an Approval ...... 11/1/97 4/21/98, 63 FR 19658.

Regulation I—Article 7: Operating Permits

7.09 ...... General Reporting Requirements for ...... 11/1/98 8/31/04, 69 FR 53007. Operating Permits ......

Regulation I—Article 8: Outdoor Burning

8.04 ...... General Conditions for Outdoor Burning ... 1/1/01 8/31/04, 69 FR 53007. 8.05 ...... Agricultural Burning ...... 1/1/01 8/31/04, 69 FR 53007. 8.06 ...... Outdoor Burning Ozone Contingency 1/23/03 8/5/04, 69 FR 47364. Measure. 8.09 ...... Description of King County No-Burn Area 1/1/01 8/31/04, 69 FR 53007. 8.10 ...... Description of Pierce County No-Burn 1/1/01 8/31/04, 69 FR 53007. Area. 8.11 ...... Description of Snohomish County No-Burn 1/1/01 8/31/04, 69 FR 53007 ...... Area. 8.12 ...... Description of Kitsap County No-Burn 11/30/02 8/31/04, 69 FR 53007. Area.

Regulation I—Article 9: Emission Standards

9.03 ...... Emission of Air Contaminant: Visual 4/17/99 8/31/04, 69 FR 53007 ...... except (e). Standard. 9.04 ...... Opacity Standards for Equipment with 6/1/98 8/31/04, 69 FR 53007 ...... except (d)(2) & (f). Continuous Opacity Monitoring Systems. 9.05 ...... Refuse Burnin...... 1/13/94 6/29/95, 60 FR 33734. 9.07 ...... Sulfur Dioxide Emission Standard ...... 5/19/94 6/29/95, 60 FR 33734. 9.08 ...... Fuel Oil Standards ...... 5/19/94 6/29/95, 60 FR 33734. 9.09 ...... Particulate Matter Emission Standards ...... 6/1/98 8/31/04, 69 FR 53007. 9.15 ...... Fugitive Dust Control Measures ...... 4/17/99 8/31/04, 69 FR 53007. 9.16 ...... Spray-Coating Operations ...... 9/1/01 8/31/04, 69 FR 53007 ...... 9.20 ...... Maintenance of Equipment ...... 6/9/88 8/29/94, 59 FR 44324.

Regulation I—Article 12: Standards of Performance for Continuous Emission Monitoring Systems

12.01 ...... Applicability...... 6/1/98 8/31/04, 69 FR 53007 ...... 12.03 ...... Continuous Emission Monitoring Systems 11/1/04 9/17/13, 78 FR 57073.

Regulation I—Article 13: Solid Fuel Burning Device Standards

13.01 ...... Policy and Purpose ...... 12/01/12 5/29/13, 78 FR 32131. 13.02 ...... Definitions ...... 12/01/12 5/29/13, 78 FR 32131. 13.03 ...... Opacity Standards ...... 12/01/12 5/29/13, 78 FR 32131. 13.04 ...... Prohibited Fuel Types ...... 12/01/12 5/29/13, 78 FR 32131. 13.05 ...... Curtailment ...... 12/01/12 5/29/13, 78 FR 32131. 13.06 ...... Emission Performance Standards ...... 12/01/12 5/29/13, 78 FR 32131 ...... 13.07 ...... Contingency Plan ...... 12/01/12 5/29/13, 78 FR 32131.

Regulation II—Article 1: Purpose, Policy, Short Title, and Definitions

1.01 ...... Purpose ...... 11/1/99 8/31/04, 69 FR 53007. 1.02 ...... Policy ...... 11/1/99 8/31/04, 69 FR 53007. 1.03 ...... Short Title ...... 11/1/99 8/31/04, 69 FR 53007. 1.04 ...... General Definitions ...... 12/11/80 2/28/83, 48 FR 8273 ...... 1.05 ...... Special Definitions ...... 9/1/03 9/17/13, 78 FR 57073.

Regulation II—Article 2: Gasoline Marketing Emission Standards

2.01 ...... Definitions ...... 8/13/99 8/31/04, 69 FR 53007. 2.03 ...... Petroleum Refineries ...... 7/15/91 8/29/94, 59 FR 44324. 2.05 ...... Gasoline Loading Terminals ...... 1/13/94 6/29/95, 60 FR 33734. 2.06 ...... Bulk Gasoline Plants ...... 7/15/91 8/29/94, 59 FR 44324.

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TABLE 7—ADDITIONAL REGULATIONS APPROVED FOR THE PUGET SOUND CLEAN AIR AGENCY (PSCAA) JURISDICTION— Continued [Applicable in King, Kitsap, Pierce and Snohomish counties, excluding facilities subject to Energy Facilities Site Evaluation Council (EFSEC) jurisdiction and facilities subject to the applicability sections of WAC 173–405–012, WAC 173–410–012, and WAC 173–415–012]

State State citation Title/subject effective EPA approval date Explanations date

2.07 ...... Gasoline Stations ...... 1/10/00 8/31/04, 69 FR 53007. 2.08 ...... Gasoline Transport Tanks ...... 8/13/99 8/31/04, 69 FR 53007. 2.09 ...... Oxygenated Gasoline Carbon Monoxide 1/23/03 8/5/04, 69 FR 47365. Contingency Measure and Fee Sched- ule. 2.10 ...... Gasoline Station Ozone Contingency 1/23/03 8/5/04, 69 FR 47365. Measure.

Regulation II—Article 3: Miscellaneous Volatile Organic Compound Emission Standards

3.01 ...... Cutback Asphalt Paving ...... 7/15/91 8/29/94, 59 FR 44324. 3.02 ...... Volatile Organic Compound Storage 8/13/99 8/31/04, 69 FR 53007. Tanks. 3.03 ...... Can and Paper Coating Operations ...... 3/17/94 6/29/95, 60 FR 33734. 3.04 ...... Motor Vehicle and Mobile Equipment 9/1/03 9/17/13, 78 FR 57073. Coating Operations. 3.05 ...... Graphic Arts Systems ...... 1/13/94 6/29/95, 60 FR 33734. 3.08 ...... Polyester, Vinylester, Gelcoat, and Resin 1/13/94 6/29/95, 60 FR 33734. Operations. 3.09 ...... Aerospace Component Coating Oper- 1/13/94 6/29/95, 60 FR 33734 ...... ations.

TABLE 8—ADDITIONAL REGULATIONS APPROVED FOR THE SOUTHWEST CLEAN AIR AGENCY (SWCAA) JURISDICTION [Applicable in Clark, Cowlitz, Lewis, Skamania and Wahkiakum counties, excluding facilities subject to Energy Facilities Site Evaluation Council (EFSEC) jurisdiction and facilities subject to the applicability sections of WAC 173–405–012, WAC 173–410–012, and WAC 173–415–012]

State State citation Title/subject effective EPA approval date Explanations date

Washington Department of Ecology Regulations

Washington Administrative Code, Chapter 173–400—General Regulations for Air Pollution Sources

173–400–010 .... Policy and Purpose ...... 3/22/91 6/2/95, 60 FR 28726. 173–400–020 .... Applicability ...... 3/22/91 6/2/95, 60 FR 28726. 173–400–030 .... Definitions ...... 3/22/91 6/2/95, 60 FR 28726. 173–400–040 .... General Standards for Maximum Emis- 3/22/91 6/2/95, 60 FR 28726 ...... except (1)(c), and (1)(d), (2), (4), sions. and the 2nd paragraph of (6). 173–400–050 .... Emission Standards for Combustion and 3/22/91 6/2/95, 60 FR 28726 ...... except the exception provision in Incineration Units. (3). 173–400–060 .... Emission Standards for General Process 3/22/91 6/2/95, 60 FR 28726. Units. 173–400–070 .... Emission Standards for Certain Source 3/22/91 6/2/95, 60 FR 28726 ...... except (7). Categories. 173–400–081 .... Startup and Shutdown ...... 9/20/93 6/2/95, 60 FR 28726. 173–400–091 .... Voluntary Limits on Emissions ...... 9/20/93 6/2/95, 60 FR 28726 ...... including all regulatory orders issued pursuant to this section. 173–400–100 .... Registration ...... 9/20/93 6/2/95, 60 FR 28726. 173–400–105 .... Records, Monitoring and Reporting ...... 9/20/93 6/2/95, 60 FR 28726. 173–400–107 .... Excess Emissions ...... 9/20/93 6/2/95, 60 FR 28726. 173–400–110 .... New Source Review (NSR) ...... 9/20/93 6/2/95, 60 FR 28726. 173–400–112 .... Requirements for New Sources in Non- 9/20/93 6/2/95, 60 FR 28726 ...... except (8). attainment Areas. 173–400–113 .... Requirements for New Sources in Attain- 9/20/93 6/2/95, 60 FR 28726 ...... except (5). ment or Unclassifiable Areas. 173–400–151 .... Retrofit Requirements for Visibility Protec- 3/22/91 6/2/95, 60 FR 28726. tion. 173–400–161 .... Compliance Schedules ...... 3/22/91 6/2/95, 60 FR 28726. 173–400–171 .... Public Involvement ...... 9/20/93 6/2/95, 60 FR 28726. 173–400–190 .... Requirements for Nonattainment Areas .... 3/22/91 6/2/95, 60 FR 28726. 173–400–200 .... Creditable Stack Height & Dispersion 3/22/91 6/2/95, 60 FR 28726. Techniques. 173–400–205 .... Adjustment for Atmospheric Conditions ..... 3/22/91 6/2/95, 60 FR 28726. 173–400–210 .... Emission Requirements of Prior Jurisdic- 3/22/91 6/2/95, 60 FR 28726. tions.

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TABLE 8—ADDITIONAL REGULATIONS APPROVED FOR THE SOUTHWEST CLEAN AIR AGENCY (SWCAA) JURISDICTION— Continued [Applicable in Clark, Cowlitz, Lewis, Skamania and Wahkiakum counties, excluding facilities subject to Energy Facilities Site Evaluation Council (EFSEC) jurisdiction and facilities subject to the applicability sections of WAC 173–405–012, WAC 173–410–012, and WAC 173–415–012]

State State citation Title/subject effective EPA approval date Explanations date

173–400–220 .... Requirements for Board Members ...... 3/22/91 6/2/95, 60 FR 28726. 173–400–230 .... Regulatory Actions ...... 3/20/93 6/2/95, 60 FR 28726. 173–400–240 .... Criminal Penalties ...... 3/22/91 6/2/95, 60 FR 28726. 173–400–250 .... Appeals ...... 9/20/93 6/2/95, 60 FR 28726 ...... 173–400–260 .... Conflict of Interest ...... 3/22/91 6/2/95, 60 FR 28726.

Southwest Clean Air Agency Regulations

General Regulations for Air Pollution Sources

400–010 ...... Policy and Purpose ...... 9/21/95 2/26/97, 62 FR 8624. 400–020 ...... Applicability ...... 9/21/95 2/26/97, 62 FR 8624. 400–030 ...... Definitions ...... 11/21/96 5/19/97, 62 FR 27204 ...... except 2nd sentence in two sub- sections (14) & (49), subsection (84). 400–040 ...... General Standards for Maximum Emis- 9/21/95 2/26/97, 62 FR 8624 ...... except (1)(c), and (1)(d), (2), (4), sions. and the exception provision of (6)(a). 400–050 ...... Emission Standards for Combustion and 9/21/95 2/26/97, 62 FR 8624 ...... except the exception provision in Incineration Units. (3). 400–052 ...... Stack Sampling of Major Combustion 9/21/95 2/26/97, 62 FR 8624. Sources. 400–060 ...... Emission Standards for General Process 9/21/95 2/26/97, 62 FR 8624. Units. 400–070 ...... Emission Standards for Certain Source 9/21/95 2/26/97, 62 FR 8624 ...... except (5). Categories. 400–074 ...... Gasoline Transport Tankers ...... 9/21/95 2/26/97, 62 FR 8624. 400–081 ...... Startup and Shutdown ...... 9/21/95 2/26/97, 62 FR 8624. 400–090 ...... Voluntary Limits on Emissions ...... 11/8/93 5/3/95, 60 FR 21703. 400–091 ...... Voluntary Limits on Emissions ...... 9/21/95 2/26/97, 62 FR 8624. 400–100 ...... Registration and Operating Permits ...... 9/21/95 2/26/97, 62 FR 8624 ...... except the first sentence of (3)(a)(iv) & (4). 400–101 ...... Sources Exempt from Registration Re- 11/21/96 5/19/97, 62 FR 27204. quirements. 400–105 ...... Records, Monitoring and Reporting ...... 9/21/95 2/26/97, 62 FR 8624. 400–107 ...... Excess Emissions ...... 9/21/95 2/26/97, 62 FR 8624. 400–109 ...... Notice of Construction Application ...... 11/21/96 5/19/97, 62 FR 27204 ...... except subsections (3)(b), (3)(c), (3)(g), (3)(h), (3)(i). 400–110 ...... New Source Review ...... 11/21/96 5/19/97, 62 FR 27204. 400–111 ...... Requirements for Sources in a Mainte- 11/21/96 5/19/97, 62 FR 27204. nance Plan Area. 400–112 ...... Requirements for New Sources in Non- 11/21/96 5/19/97, 62 FR 27204. attainment Areas. 400–113 ...... Requirements for New Sources in Attain- 11/21/96 5/19/97, 62 FR 27204. ment or Nonclassifiable Areas. 400–114 ...... Requirements for Replacement or Sub- 11/21/96 5/19/97, 62 FR 27204. stantial Alteration for Emission Control Technology at an Existing Stationary Source. 400–116 ...... Maintenance of Equipment ...... 11/21/96 5/19/97, 62 FR 27204. 400–151 ...... Retrofit Requirements for Visibility Protec- 9/21/95 2/26/97, 62 FR 8624. tion. 400–161 ...... Compliance Schedules ...... 9/21/95 2/26/97, 62 FR 8624. 400–171 ...... Public Involvement ...... 9/21/95 2/26/97, 62 FR 8624. 400–190 ...... Requirements for Nonattainment Areas .... 11/21/96 5/19/97, 62 FR 27204. 400–200 ...... Creditable Stack Height & Dispersion 9/21/95 2/26/97, 62 FR 8624. Techniques. 400–205 ...... Adjustment for Atmospheric Conditions ..... 9/21/95 2/26/97, 62 FR 8624. 400–210 ...... Emission Requirements of Prior Jurisdic- 9/21/95 2/26/97, 62 FR 8624. tions. 400–220 ...... Requirements for Board Members ...... 9/21/95 2/26/97, 62 FR 8624. 400–230 ...... Regulatory Actions & Civil Penalties ...... 9/21/95 2/26/97, 62 FR 8624. 400–240 ...... Criminal Penalties ...... 9/21/95 2/26/97, 62 FR 8624. 400–250 ...... Appeals ...... 9/21/95 2/26/97, 62 FR 8624. 400–260 ...... Conflict of Interest ...... 9/21/95 2/26/97, 62 FR 8624. 400–270 ...... Confidentiality of Records & Information ... 9/21/95 2/26/97, 62 FR 8624.

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TABLE 8—ADDITIONAL REGULATIONS APPROVED FOR THE SOUTHWEST CLEAN AIR AGENCY (SWCAA) JURISDICTION— Continued [Applicable in Clark, Cowlitz, Lewis, Skamania and Wahkiakum counties, excluding facilities subject to Energy Facilities Site Evaluation Council (EFSEC) jurisdiction and facilities subject to the applicability sections of WAC 173–405–012, WAC 173–410–012, and WAC 173–415–012]

State State citation Title/subject effective EPA approval date Explanations date

400–280 ...... Powers of Authority ...... 9/21/95 2/26/97, 62 FR 8624.

Emission Standards and Controls for Sources Emitting Volatile Organic Compounds

490–010 ...... Policy and Purpose ...... 11/21/96 5/19/97, 62 FR 27204. 490–020 ...... Definitions ...... 11/21/96 5/19/97, 62 FR 27204. 490–025 ...... General Applicability ...... 11/21/96 5/19/97, 62 FR 27204. 490–030 ...... Registration and Reporting ...... 11/21/96 5/19/97, 62 FR 27204. 490–040 ...... Requirements ...... 11/21/96 5/19/97, 62 FR 27204. 490–080 ...... Exceptions & Alternative Methods ...... 11/21/96 5/19/97, 62 FR 27204. 490–090 ...... New Source Review ...... 11/21/96 5/19/97, 62 FR 27204. 490–200 ...... Petroleum Refinery Equipment Leaks ...... 11/21/96 5/19/97, 62 FR 27204. 490–201 ...... Petroleum Liquid Storage in External 11/21/96 5/19/97, 62 FR 27204. Floating Roof Tanks. 490–202 ...... Leaks from Gasoline Transport Tanks and 11/21/96 5/19/97, 62 FR 27204. Vapor Collection Systems. 490–203 ...... Perchloroethylene Dry Cleaning Systems 11/21/96 5/19/97, 62 FR 27204. 490–204 ...... Graphic Arts Systems ...... 11/21/96 5/19/97, 62 FR 27204. 490–205 ...... Surface Coating of Miscellaneous Metal 11/21/96 5/19/97, 62 FR 27204. Parts and Products. 490–207 ...... Surface Coating of Flatwood Paneling ...... 11/21/96 5/19/97, 62 FR 27204. 490–208 ...... Aerospace Assembly & Component Coat- 11/21/96 5/19/97, 62 FR 27204. ing Operations.

Emissions Standards and Controls for Sources Emitting Gasoline Vapors

491–010 ...... Policy and Purpose ...... 11/21/96 5/19/97, 62 FR 27204. 491–015 ...... Applicability ...... 11/21/96 5/19/97, 62 FR 27204. 491–020 ...... Definitions ...... 11/21/96 5/19/97, 62 FR 27204. 491–030 ...... Registration ...... 11/21/96 5/19/97, 62 FR 27204. 491–040 ...... Gasoline Vapor Control Requirements ...... 11/21/96 5/19/97, 62 FR 27204. 491–050 ...... Failures, Certification, Testing & Record- 11/21/96 5/19/97, 62 FR 27204. keeping. 491–060 ...... Severability ...... 11/21/96 5/19/97, 62 FR 27204.

Oxygenated Fuels

492–010 ...... Policy and Purpose ...... 11/21/96 4/30/97, 62 FR 23363. 492–020 ...... Applicability ...... 11/21/96 4/30/97, 62 FR 23363. 492–030 ...... Definitions ...... 11/21/96 4/30/97, 62 FR 23363. 492–040 ...... Compliance Requirements ...... 11/21/96 4/30/97, 62 FR 23363. 492–050 ...... Registration Requirements ...... 11/21/96 4/30/97, 62 FR 23363. 492–060 ...... Labeling Requirements ...... 11/21/96 4/30/97, 62 FR 23363. 492–070 ...... Control Area and Control Period ...... 11/21/96 4/30/97, 62 FR 23363. 492–080 ...... Enforcement and Compliance ...... 11/21/96 4/30/97, 62 FR 23363. 492–090 ...... Unplanned Conditions ...... 11/21/96 4/30/97, 62 FR 23363. 492–100 ...... Severability ...... 11/21/96 4/30/97, 62 FR 23363.

VOC Area Source Rules

493–100 ...... Consumer Products (Reserved) ...... 05/26/96 5/19/97, 62 FR 27204. 493–200–010 .... Applicability ...... 05/26/96 5/19/97, 62 FR 27204. 493–200–020 .... Definitions ...... 05/26/96 5/19/97, 62 FR 27204. 493–200–030 .... Spray Paint Standards & Exemptions ...... 05/26/96 5/19/97, 62 FR 27204. 493–200–040 .... Requirements for Manufacture, Sale and 05/26/96 5/19/97, 62 FR 27204. Use of Spray Paint. 493–200–050 .... Recordkeeping & Reporting Requirements 05/26/96 5/19/97, 62 FR 27204. 493–200–060 .... Inspection and Testing Requirements ...... 05/26/96 5/19/97, 62 FR 27204. 493–300–010 .... Applicability ...... 5/26/96 5/19/97, 62 FR 27204. 493–300–020 .... Definitions ...... 5/26/96 5/19/97, 62 FR 27204. 493–300–030 .... Standards ...... 5/26/96 5/19/97, 62 FR 27204. 493–300–040 .... Requirements for Manufacture, Sale and 5/26/96 5/19/97, 62 FR 27204. Use of Architectural Coatings. 493–300–050 .... Recordkeeping & Reporting Requirements 5/26/96 5/19/97, 62 FR 27204. 493–300–060 .... Inspection and Testing Requirements ...... 5/26/96 5/19/97, 62 FR 27204. 493–400–010 .... Applicability ...... 05/26/96 5/19/97, 62 FR 27204. 493–400–020 .... Definitions ...... 05/26/96 5/19/97, 62 FR 27204.

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TABLE 8—ADDITIONAL REGULATIONS APPROVED FOR THE SOUTHWEST CLEAN AIR AGENCY (SWCAA) JURISDICTION— Continued [Applicable in Clark, Cowlitz, Lewis, Skamania and Wahkiakum counties, excluding facilities subject to Energy Facilities Site Evaluation Council (EFSEC) jurisdiction and facilities subject to the applicability sections of WAC 173–405–012, WAC 173–410–012, and WAC 173–415–012]

State State citation Title/subject effective EPA approval date Explanations date

493–400–030 .... Coating Standards & Exemptions ...... 05/26/96 5/19/97, 62 FR 27204. 493–400–040 .... Requirements for Manufacture & Sale of 05/26/96 5/19/97, 62 FR 27204. Coating. 493–400–050 .... Requirements for Motor Vehicle Refin- 05/26/96 5/19/97, 62 FR 27204. ishing in Vancouver AQMA. 493–400–060 .... Recordkeeping and Reporting Require- 05/26/96 5/19/97, 62 FR 27204. ments. 493–400–070 .... Inspection & Testing Requirements ...... 05/26/96 5/19/97, 62 FR 27204. 493–500–010 .... Applicability ...... 05/26/96 5/19/97, 62 FR 27204. 493–500–020 .... Compliance Extensions ...... 05/26/96 5/19/97, 62 FR 27204. 493–500–030 .... Exemption from Disclosure to the Public ... 05/26/96 5/19/97, 62 FR 27204. 493–500–040 .... Future Review ...... 05/26/96 5/19/97, 62 FR 27204 ......

TABLE 9—ADDITIONAL REGULATIONS APPROVED FOR THE SPOKANE REGIONAL CLEAN AIR AGENCY (SRCAA) JURISDICTION [Applicable in Spokane County, excluding facilities subject to Energy Facilities Site Evaluation Council (EFSEC) jurisdiction and facilities subject to the applicability sections of WAC 173–405–012, WAC 173–410–012, and WAC 173–415–012]

State State citation Title/subject effective EPA approval date Explanations date

Washington Department of Ecology Regulations

Washington Administrative Code, Chapter 173–400—General Regulations for Air Pollution Sources

173–400–010 .... Policy and Purpose ...... 3/22/91 6/2/95, 60 FR 28726. 173–400–020 .... Applicability ...... 3/22/91 6/2/95, 60 FR 28726. 173–400–030 .... Definitions ...... 3/22/91 6/2/95, 60 FR 28726. 173–400–040 .... General Standards for Maximum Emis- 3/22/91 6/2/95, 60 FR 28726 ...... except (1)(c), and (1)(d), (2), (4), sions. and the 2nd paragraph of (6). 173–400–050 .... Emission Standards for Combustion and 3/22/91 6/2/95, 60 FR 28726 ...... except the exception provision in Incineration Units. (3). 173–400–060 .... Emission Standards for General Process 3/22/91 6/2/95, 60 FR 28726. Units. 173–400–070 .... Emission Standards for Certain Source 3/22/91 6/2/95, 60 FR 28726 ...... except (7). Categories. 173–400–081 .... Startup and Shutdown ...... 9/20/93 6/2/95, 60 FR 28726. 173–400–091 .... Voluntary Limits on Emissions ...... 9/20/93 6/2/95, 60 FR 28726 ...... including all regulatory orders issued pursuant to this section. 173–400–100 .... Registration ...... 9/20/93 6/2/95, 60 FR 28726. 173–400–105 .... Records, Monitoring and Reporting ...... 9/20/93 6/2/95, 60 FR 28726. 173–400–107 .... Excess Emissions ...... 9/20/93 6/2/95, 60 FR 28726. 173–400–110 .... New Source Review (NSR) ...... 9/20/93 6/2/95, 60 FR 28726. 173–400–112 .... Requirements for New Sources in Non- 9/20/93 6/2/95, 60 FR 28726 ...... except (8). attainment Areas. 173–400–113 .... Requirements for New Sources in Attain- 9/20/93 6/2/95, 60 FR 28726 ...... except (5). ment or Unclassifiable Areas. 173–400–151 .... Retrofit Requirements for Visibility Protec- 3/22/91 6/2/95, 60 FR 28726. tion. 173–400–161 .... Compliance Schedules ...... 3/22/91 6/2/95, 60 FR 28726. 173–400–171 .... Public Involvement ...... 9/20/93 6/2/95, 60 FR 28726. 173–400–190 .... Requirements for Nonattainment Areas .... 3/22/91 6/2/95, 60 FR 28726. 173–400–200 .... Creditable Stack Height & Dispersion 3/22/91 6/2/95, 60 FR 28726. Techniques. 173–400–205 .... Adjustment for Atmospheric Conditions ..... 3/22/91 6/2/95, 60 FR 28726. 173–400–210 .... Emission Requirements of Prior Jurisdic- 3/22/91 6/2/95, 60 FR 28726. tions. 173–400–220 .... Requirements for Board Members ...... 3/22/91 6/2/95, 60 FR 28726. 173–400–230 .... Regulatory Actions ...... 3/20/93 6/2/95, 60 FR 28726. 173–400–240 .... Criminal Penalties ...... 3/22/91 6/2/95, 60 FR 28726. 173–400–250 .... Appeals ...... 9/20/93 6/2/95, 60 FR 28726. 173–400–260 .... Conflict of Interest ...... 3/22/91 6/2/95, 60 FR 28726.

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TABLE 9—ADDITIONAL REGULATIONS APPROVED FOR THE SPOKANE REGIONAL CLEAN AIR AGENCY (SRCAA) JURISDICTION—Continued [Applicable in Spokane County, excluding facilities subject to Energy Facilities Site Evaluation Council (EFSEC) jurisdiction and facilities subject to the applicability sections of WAC 173–405–012, WAC 173–410–012, and WAC 173–415–012]

State State citation Title/subject effective EPA approval date Explanations date

Spokane Regional Clean Air Agency Regulations

Regulation I—Article VI—Emissions Prohibited

6.05 ...... Particulate Matter & Preventing Particulate 11/12/93 1/27/97, 62 FR 3800. Matter from becoming Airborne. 6.14 ...... Standards for Control of Particulate Matter 2/13/99 4/12/99, 64 FR 17545. on Paved Surfaces. 6.15 ...... Standards for Control of Particulate Matter 2/13/99 4/12/99, 64 FR 17545. on Unpaved Roads. 6.16 ...... Motor Fuel Specifications for Oxygenated 7/6/95 9/22/97, 62 FR 49442 * ...... * correction: 12/31/97, Gasoline. 62 FR 68187.

Regulation I—Article VIII—Solid Fuel Burning Device Standards

8.01 ...... Purpose ...... 9/10/94 1/27/97, 62 FR 3800. 8.02 ...... Applicability ...... 9/10/94 1/27/97, 62 FR 3800. 8.03 ...... Definitions ...... 9/10/94 1/27/97, 62 FR 3800. 8.04 ...... Emission Performance Standards ...... 9/10/94 1/27/97, 62 FR 3800. 8.05 ...... Opacity Standards ...... 9/10/94 1/27/97, 62 FR 3800. 8.06 ...... Prohibited Fuel Types ...... 9/10/94 1/27/97, 62 FR 3800. 8.07 ...... Curtailment ...... 9/10/94 1/27/97, 62 FR 3800. 8.08 ...... Exemptions ...... 9/10/94 1/27/97, 62 FR 3800. 8.09 ...... Procedure to Geographically Limit Solid 9/10/94 1/27/97, 62 FR 3800. Fuel Burning Devices. 8.10 ...... Restrictions on Installation of Solid Fuel 9/10/94 1/27/97, 62 FR 3800. Burning Devices. 8.11 ...... Regulatory Actions and Penalties ...... 9/10/94 1/27/97, 62 FR 3800.

Regulation II—Article IV—Emissions Prohibited

4.01 ...... Particulate Emissions—Grain Loading Re- 4/26/79 6/5/80, 45 FR 37821 ...... strictions.

TABLE 10—ADDITIONAL REGULATIONS APPROVED FOR THE YAKIMA REGIONAL CLEAN AIR AGENCY (YRCAA) JURISDICTION [Applicable in Yakima County, excluding facilities subject to Energy Facilities Site Evaluation Council (EFSEC) jurisdiction and facilities subject to the applicability sections of WAC 173–405–012, WAC 173–410–012, and WAC 173–415–012]

State State citation Title/subject effective EPA approval date Explanations date

Washington Department of Ecology Regulations

Washington Administrative Code, Chapter 173–400—General Regulations for Air Pollution Sources

173–400–010 .... Policy and Purpose ...... 3/22/91 6/2/95, 60 FR 28726. 173–400–020 .... Applicability ...... 3/22/91 6/2/95, 60 FR 28726. 173–400–030 .... Definitions ...... 3/22/91 6/2/95, 60 FR 28726. 173–400–040 .... General Standards for Maximum Emis- 3/22/91 6/2/95, 60 FR 28726 ...... except (1)(c), and (1)(d), (2), (4), sions. and the 2nd paragraph of (6). 173–400–050 .... Emission Standards for Combustion and 3/22/91 6/2/95, 60 FR 28726 ...... except the exception provision in Incineration Units. (3). 173–400–060 .... Emission Standards for General Process 3/22/91 6/2/95, 60 FR 28726. Units. 173–400–070 .... Emission Standards for Certain Source 3/22/91 6/2/95, 60 FR 28726 ...... except (7). Categories. 173–400–081 .... Startup and Shutdown ...... 9/20/93 6/2/95, 60 FR 28726. 173–400–091 .... Voluntary Limits on Emissions ...... 9/20/93 6/2/95, 60 FR 28726 ...... including all regulatory orders issued pursuant to this section. 173–400–100 .... Registration ...... 9/20/93 6/2/95, 60 FR 28726. 173–400–105 .... Records, Monitoring and Reporting ...... 9/20/93 6/2/95, 60 FR 28726. 173–400–107 .... Excess Emissions ...... 9/20/93 6/2/95, 60 FR 28726. 173–400–110 .... New Source Review (NSR) ...... 9/20/93 6/2/95, 60 FR 28726.

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TABLE 10—ADDITIONAL REGULATIONS APPROVED FOR THE YAKIMA REGIONAL CLEAN AIR AGENCY (YRCAA) JURISDICTION—Continued [Applicable in Yakima County, excluding facilities subject to Energy Facilities Site Evaluation Council (EFSEC) jurisdiction and facilities subject to the applicability sections of WAC 173–405–012, WAC 173–410–012, and WAC 173–415–012]

State State citation Title/subject effective EPA approval date Explanations date

173–400–112 .... Requirements for New Sources in Non- 9/20/93 6/2/95, 60 FR 28726 ...... except (8). attainment Areas. 173–400–113 .... Requirements for New Sources in Attain- 9/20/93 6/2/95, 60 FR 28726 ...... except (5). ment or Unclassifiable Areas. 173–400–151 .... Retrofit Requirements for Visibility Protec- 3/22/91 6/2/95, 60 FR 28726. tion. 173–400–161 .... Compliance Schedules ...... 3/22/91 6/2/95, 60 FR 28726. 173–400–171 .... Public Involvement ...... 9/20/93 6/2/95, 60 FR 28726. 173–400–190 .... Requirements for Nonattainment Areas .... 3/22/91 6/2/95, 60 FR 28726. 173–400–200 .... Creditable Stack Height & Dispersion 3/22/91 6/2/95, 60 FR 28726. Techniques. 173–400–205 .... Adjustment for Atmospheric Conditions ..... 3/22/91 6/2/95, 60 FR 28726. 173–400–210 .... Emission Requirements of Prior Jurisdic- 3/22/91 6/2/95, 60 FR 28726. tions. 173–400–220 .... Requirements for Board Members ...... 3/22/91 6/2/95, 60 FR 28726. 173–400–230 .... Regulatory Actions ...... 3/20/93 6/2/95, 60 FR 28726. 173–400–240 .... Criminal Penalties ...... 3/22/91 6/2/95, 60 FR 28726. 173–400–250 .... Appeals ...... 9/20/93 6/2/95, 60 FR 28726 ...... 173–400–260 .... Conflict of Interest ...... 3/22/91 6/2/95, 60 FR 28726 ......

Yakima Regional Clean Air Agency Regulations

Article I—Policy, Short Title and Definitions

1.01 ...... Policy ...... 12/15/95 2/2/98, 63 FR 5269. 1.02 ...... Short Title ...... 11/18/93 2/2/98, 63 FR 5269 ...... 1.03 ...... Definitions ...... 12/15/95 2/2/98, 63 FR 5269 ......

Article II—General Provisions

2.02 ...... Control Officer- Powers & Duties ...... 11/18/93 2/2/98, 63 FR 5269. 2.03 ...... Miscellaneous Provisions ...... 11/18/93 2/2/98, 63 FR 5269. 2.04 ...... Confidentiality ...... 11/18/93 2/2/98, 63 FR 5269 ...... 2.05 ...... Advisory Council ...... 11/18/93 2/2/98, 63 FR 5269 ......

Article III—Violations—Orders and Hearings

3.01 ...... Notice of Violation—Corrective Action 11/18/93 2/2/98, 63 FR 5269. Hearings. 3.02 ...... Finality of Order ...... 11/18/93 2/2/98, 63 FR 5269. 3.03 ...... Stay of Order Pending Appeal ...... 11/18/93 2/2/98, 63 FR 5269 ...... 3.04 ...... Voluntary Compliance ...... 11/18/93 2/2/98, 63 FR 5269 ......

Article IV—Registration and Notice of Construction

4.01 ...... Registration ...... 12/15/95 2/2/98, 63 FR 5269. 4.02 ...... Notice of Construction ...... 12/15/95 2/2/98, 63 FR 5269 ...... 4.03 ...... Exceptions to Article 4 ...... 11/18/93 2/2/98, 63 FR 5269 ......

Article V—Emissions Standards and Preventative Measures

5.01 ...... Outdoor Burning ...... 12/15/95 2/2/98, 63 FR 5269. 5.02 ...... Regulations Applicable to all Outdoor 12/15/95 2/2/98, 63 FR 5269. Burning. 5.03 ...... Regulations Applicable to all Outdoor 12/15/95 2/2/98, 63 FR 5269. Burning within Jurisdiction of the Yak- ima County Clean Air Authority, Local Cities, Towns, Fire Protection Districts and Conservation Districts. 5.04 ...... Regulations Applicable to Permits Issued 12/15/95 2/2/98, 63 FR 5269. by the Yakima County Clean Air Author- ity for all Other Outdoor Burning. 5.05 ...... Additional Restrictions on Outdoor Burning 12/15/95 2/2/98, 63 FR 5269. 5.06 ...... General Standards for Maximum Permis- 12/15/95 2/2/98, 63 FR 5269. sible Emissions. 5.07 ...... Minimum Emission Standards for Com- 12/15/95 2/2/98, 63 FR 5269. bustion and Incineration Sources.

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TABLE 10—ADDITIONAL REGULATIONS APPROVED FOR THE YAKIMA REGIONAL CLEAN AIR AGENCY (YRCAA) JURISDICTION—Continued [Applicable in Yakima County, excluding facilities subject to Energy Facilities Site Evaluation Council (EFSEC) jurisdiction and facilities subject to the applicability sections of WAC 173–405–012, WAC 173–410–012, and WAC 173–415–012]

State State citation Title/subject effective EPA approval date Explanations date

5.08 ...... Minimum Emissions Standards for Gen- 12/15/95 2/2/98, 63 FR 5269. eral Process Sources. 5.10 ...... Sensitive Area Designation ...... 6/20/94 2/2/98, 63 FR 5269. 5.11 ...... Monitoring and Special Reporting ...... 12/15/95 2/2/98, 63 FR 5269 ...... 5.12 ...... Preventive Measures ...... 11/18/93 2/2/98, 63 FR 5269 ......

Article VIII—Penalty and Severability

8.01 ...... Penalty for Violation ...... 11/18/93 2/2/98, 63 FR 5269. 8.02 ...... Additional/Alternative Penalties ...... 12/15/95 2/2/98, 63 FR 5269. 8.03 ...... Assurance of Discontinuance ...... 11/18/93 2/2/98, 63 FR 5269. 8.04 ...... Restraining Order—Injunctions ...... 11/18/93 2/2/98, 63 FR 5269 ...... 8.05 ...... Severability ...... 12/15/95 2/2/98, 63 FR 5269 ......

Article IX—Woodstoves and Fireplaces

9.01 ...... Policy ...... 11/18/93 2/2/98, 63 FR 5269. 9.02 ...... Opacity ...... 11/18/93 2/2/98, 63 FR 5269. 9.03 ...... Prohibitive Fuel Types ...... 11/18/93 2/2/98, 63 FR 5269. 9.04 ...... Limitations of Sales of Solid Fuel Burning 11/18/93 2/2/98, 63 FR 5269 ...... Devices. 9.05 ...... Prohibition of Visible Emissions During Air 12/15/95 2/2/98, 63 FR 5269 ...... Pollution Episodes.

Article XII—Adoption of State and Federal Regulations

12.01 ...... State Regulations ...... 12/15/95 2/2/98, 63 FR 5269 ......

Article XIII—Fee Schedules and Other Charges

13.01 ...... Registration and Fee Schedule ...... 1/13/94 2/2/98, 63 FR 5269. 13.02 ...... Notice of Construction Fee Schedule ...... 6/20/94 2/2/98, 63 FR 5269. 13.03 ...... Outdoor Burning Permit Fees ...... 6/20/94 2/2/98, 63 FR 5269.

* * * * * Purposes’’ for the 1997 and 2006 PM2.5 NAAQS (Primary and Secondary)’’ and [FR Doc. 2014–23016 Filed 10–2–14; 8:45 am] NAAQS nonattainment areas. An error ‘‘Wisconsin—1997 24-hour PM2.5 BILLING CODE 6560–50–P in the table for the Wisconsin 2006 24- NAAQS (Primary and Secondary)’’ and hour PM2.5 NAAQS in 40 CFR 81.350 is ‘‘Wisconsin—2006 24-hour PM2.5 identified and corrected in this action. NAAQS (Primary and Secondary)’’. The ENVIRONMENTAL PROTECTION DATES: This final rule is effective on entry for the Milwaukee-Racine AGENCY October 3, 2014. designated area in the Wisconsin—2006 40 CFR Part 81 FOR FURTHER INFORMATION CONTACT: 24-hour PM2.5 NAAQS table erroneously Christos Panos, Environmental indicated that the area was designated [EPA–HQ–OAR–2013–0694; FRL 9917–34- Engineer, Attainment Planning and as nonattainment when, in fact, the area Region 5] Maintenance Section, Air Programs had been redesignated to attainment Branch (AR–18J), Environmental Identification of Nonattainment status on April 22, 2014. 79 FR 22415. Protection Agency, Region 5, 77 West Therefore, the entry for the Milwaukee- Classification and Deadlines for Jackson Boulevard, Chicago, Illinois Submission of State Implementation Racine area is being corrected to reflect 60604, (312) 353–8328, panos.christos@ the correct attainment designation. Plan (SIP) Provisions for the 1997 Fine epa.gov. Particle (PM ) National Ambient Air 2.5 SUPPLEMENTARY INFORMATION: EPA List of Subjects in 40 CFR Part 81 Quality Standard (NAAQS) and 2006 published a final rule document on June PM NAAQS; Correction 2.5 2, 2014, (79 FR 31566) updating 40 CFR Environmental protection, Air AGENCY: Environmental Protection part 81, ‘‘Designation of Areas for Air pollution control, National parks, Agency (EPA). Quality Planning Purposes’’ for the 1997 Wilderness areas. ACTION: Correcting amendments. and 2006 PM2.5 NAAQS nonattainment Dated: September 22, 2014. areas. This final rule included revisions Susan Hedman, SUMMARY: The Environmental Protection to 40 CFR 81.350 to remove the tables Regional Administrator, Region 5. Agency (EPA) published a final rule in titled ‘‘Wisconsin—PM2.5 (Annual the Federal Register on June 2, 2014, NAAQS)’’ and ‘‘Wisconsin—PM2.5 [24- 40 CFR part 81 is corrected by making updating 40 CFR part 81, ‘‘Designation hour NAAQS]’’ and to add three tables the following correcting amendments: of Areas for Air Quality Planning titled ‘‘Wisconsin—1997 Annual PM2.5

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PART 81—DESIGNATION OF AREAS Authority: 42 U.S.C. 7401 et seq. ‘‘Wisconsin—PM2.5 (24-Hour NAAQS)’’ FOR AIR QUALITY PLANNING to read as follows: PURPOSES ■ 2. Section 81.350 is amended by revising the entry for Milwaukee- § 81.350 Wisconsin. ■ 1. The authority citation for part 81 Racine, WI in the table entitled * * * * * continues to read as follows:

WISCONSIN–2006—24-HOUR PM2.5 NAAQS [Primary and Secondary]

Designationa Classification Designated area Date1 Type Date 2 Type

Milwaukee-Racine, WI: Milwaukee County ...... April 22, 2014 ...... Attainment ...... Racine County ...... April 22, 2014 ...... Attainment ...... Waukesha County ...... April 22, 2014 ...... Attainment ......

*******

a Includes Indian Country located in each county or area, except as otherwise specified. 1 This date is 30 days after November 13, 2009, unless otherwise noted. 2 This date is July 2, 2014, unless otherwise noted.

[FR Doc. 2014–23634 Filed 10–2–14; 8:45 am] Hospital Prospective Payment System Care Hospitals and the Long-Term Care BILLING CODE 6560–50–P and Fiscal Year 2015 Rates; Quality Hospital Prospective Payment System Reporting Requirements for Specific and Fiscal Year 2015 Rates; Quality Providers; Reasonable Compensation Reporting Requirements for Specific DEPARTMENT OF HEALTH AND Equivalents for Physician Services in Providers; Reasonable Compensation HUMAN SERVICES Excluded Hospitals and Certain Equivalents for Physician Services in Teaching Hospitals; Provider Excluded Hospitals and Certain Centers for Medicare & Medicaid Administrative Appeals and Judicial Teaching Hospitals; Provider Services Review; Enforcement Provisions for Administrative Appeals and Judicial Organ Transplant Centers; and Review; Enforcement Provisions for 42 CFR Parts 405, 412, 413, 415, 422, Electronic Health Record (EHR) Organ Transplant Centers; and 424, 485, and 488 Incentive Program.’’ Electronic Health Record (EHR) [CMS–1607–CN] DATES: Effective date: This document is Incentive Program’’ (hereinafter referred effective October 1, 2014. to as the FY 2015 IPPS/LTCH PPS final RINs 0938–AS11; 0938–AR12; and 0938– FOR FURTHER INFORMATION CONTACT: Ing rule), there were a number of technical AR53 Jye Cheng, (410) 786–4487, Operating errors that are identified and corrected in section IV. of this correcting Medicare Program; Hospital Inpatient Prospective Payment, Capital document. The provisions in this Prospective Payment Systems for Prospective Payment, and New Medical correction document are effective as if Acute Care Hospitals and the Long- Service and Technology Add-On they had been included in the FY 2015 Term Care Hospital Prospective Payment Corrections. IPPS/LTCH PPS final rule that appeared Payment System and Fiscal Year 2015 Donald Thompson, (410) 786–6504, in the August 22, 2014 Federal Register. Rates; Quality Reporting Requirements Operating Prospective Payment, Wage Accordingly, the corrections are for Specific Providers; Reasonable Index, and Capital Prospective Payment effective October 1, 2014. Compensation Equivalents for Corrections. Physician Services in Excluded James Poyer, (410) 786–2261, PPS- II. Summary of Errors and Corrections Hospitals and Certain Teaching Exempt Cancer Hospital Quality to Tables Posted on the CMS Web Site Hospitals; Provider Administrative Reporting and Hospital Inpatient A. Summary of Errors in the Preamble Appeals and Judicial Review; Quality Reporting Corrections. Mary Pratt, (410) 786–2261, Long- Enforcement Provisions for Organ On page 49865, in our discussion of term Care Hospital Quality Data Transplant Centers; and Electronic the summary of costs and benefits of the Reporting Corrections. Health Record (EHR) Incentive Kellie Shannon, (410) 786–0416, payment adjustment of the Hospital- Program; Correction Administrative Appeals by Providers Acquired Condition (HAC) Reduction Program for FY 2015, we made a AGENCY: Centers for Medicare & and Judicial Review Corrections. technical error in the amount by which Medicaid Services (CMS), HHS. Thomas Hamilton, (410) 786–6763, overall payments would decrease. ACTION: Final rule; correction. Organ Transplant Center Corrections. SUPPLEMENTARY INFORMATION: On page 49918, in our discussion of SUMMARY: This document corrects new technology add-on payments, we technical and typographical errors in I. Background made an error in the amount of the the final rule that appeared in the In FR Doc. 2014–18545 which maximum add-on payment for August 22, 2014 Federal Register titled appeared in the August 22, 2014 Voraxaze®. ‘‘Medicare Program; Hospital Inpatient Federal Register (79 FR 49853), titled On page 49940, we made an error in Prospective Payment Systems for Acute ‘‘Medicare Program; Hospital Inpatient our discussion of the FY 2015 new Care Hospitals and the Long-Term Care Prospective Payment Systems for Acute technology add-on payment for the

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CardioMEMSTM HF (Heart Failure) payments in the ratesetting process after under our established methodology, Monitoring System. properly treating those MS–DRGs that payments for MA IME claims are used On pages 50246 through 50249, in the qualified for a special payment under in our operating IPPS budget neutrality table titled ‘‘Previously Adopted the postacute care transfer policy in FY calculations. Therefore, the inadvertent Hospital IQR Program Measures And 2015 as MS–DRGs subject to the omission of these MA IME claims Measures Newly Finalized in this Final postacute care transfer policy. resulted in a miscalculation of the Rule for the FY 2017 Payment Therefore, we are recalculating the operating budget neutrality calculations. Determination and Subsequent Years,’’ operating and capital IPPS budget (We note this error did not affect the we inadvertently listed VTE–3 as a neutrality factors, outlier threshold, calculation of the outlier threshold or ‘‘voluntary electronic clinical quality operating standardized amounts, capital the MS–DRG relative weights because, measure’’ only and inadvertently Federal rates, and impacts for FY 2015 under our established methodology for omitted PN–6 from the table, which using our established methodology. the respective calculations of these IPPS should have been listed as a voluntary The second error was the inadvertent payment factors, we only include claims electronic clinical quality measure. error in identifying claims for indirect with a ‘‘Claim Type’’ of 60, and the On pages 50279 and 52084, in our medical education (IME) payments for claims that were not properly identified discussion of the PPS-exempt Cancer Medicare Advantage (MA) beneficiaries as MA IME claims did not have a Hospital Quality Reporting Program (MA IME claims) in the ratesetting ‘‘Claim Type’’ of 60.) We are (PCHQR), we provided a Web site link process for the FY 2015 IPPS/LTCH PPS recalculating the operating budget that is not functional due to a final rule. Per the methodology neutrality factors that are used to typographical error, and made other established in the FY 2011 IPPS/LTCH determine the standardized amounts for typographical and technical errors. PPS final rule (75 FR 50422 through FY 2015 to conform with our On pages 50298, 50302, and 50306, 50433), in order to identify IME MA established methodology as stated in the we made typographical and technical claims, we first search the MedPAR file FY 2015 IPPS/LTCH PPS final rule. errors in our discussion of the Long- for all claims with an IME payment Specifically, for this correcting Term Care Hospital Quality Reporting greater than zero. Then, we filter these document, we are restoring the 2- (LTCHQR) Program. claims for a subset of claims with a percent reduction for sequestration to On page 50335, we made group health organization (GHO) paid the DRG payment field in order to typographical and technical errors in indicator with a value of ‘‘1’’ or with the ensure that we properly identify all our discussion of organ transplant IME payment field equal to the DRG claims where the IME payment field is centers. payment field. For the reasons described equal to the DRG payment field later in this section, in applying this consistent with our established B. Summary of Errors in the Regulations methodology for the FY 2015 IPPS/ methodology. Text LTCH PPS final rule, we did not As described previously, one or both On page 50350, in the regulations text identify certain MA IME claims using of these two technical errors resulted in at § 405.1811(c) and § 405.1835(c), we the filter for claims where the IME errors to our calculation of the operating made technical errors in specifying the payment field is equal to the DRG and capital IPPS budget neutrality requirements regarding a provider’s payment field. factors, outlier threshold, operating right to contractor or Board hearings The Budget Control Act of 2011 standardized amounts, capital Federal resulting from untimely contractor requires mandatory across-the-board rates, and impacts. As a result of these determinations. reductions in Federal spending, also technical errors we are correcting the known as sequestration. The American C. Summary of Errors in the Addendum following errors: Taxpayer Relief Act of 2012 postponed • In the operating and capital budget In calculating the final FY 2015 IPPS sequestration for 2 months. As required neutrality factors, outlier threshold, operating and capital rates and impacts, by law, President Obama issued a operating standardized amounts, capital we made two technical errors. sequestration order on March 1, 2013. Federal rates, and capital IPPS payment First, there was a technical error in For FY 2015, we used claims from the estimates that appear on the following our determination of payments under FY 2013 MedPAR in our ratesetting pages of the Addendum of the FY 2015 the postacute care transfer policy for process to determine the operating and IPPS/LTCH PPS final rule: 50367 certain MS–DRGs within the ratesetting capital IPPS budget neutrality factors, through 50370, 50373 and 50374, 50380 process. Specifically, we inadvertently outlier threshold, operating through 50383, 50385 and 50386, 50388 did not treat those MS–DRGs that standardized amounts, capital Federal through 50390, and 50404 (Tables 1A qualified for a special payment under rates, and the IPPS impact analyses through 1D). the postacute care transfer policy (see presented in the FY 2015 IPPS/LTCH • In the data presented in the tables § 412.4(f)(6)) in FY 2015 as MS–DRGs PPS final rule. Claims for discharges referred to in the FY 2015 IPPS/LTCH subject to the postacute care transfer occurring on or after April 1, 2013 had PPS final rule and available via the policy. Consequently, the FY 2015 the 2-percent reduction for Internet on the CMS Web site (see transfer-adjusted case-mix indexes and sequestration applied to the DRG section II.D. of this correcting cases used to model IPPS payments in payment field. As a result, in applying document). the ratesetting process were incorrect, the methodology described previously • In the operating and capital impacts and resulted in a miscalculation of the for the FY 2015 IPPS/LTCH PPS final that appear in the following pages of the operating and capital IPPS budget rule, we inadvertently did not properly Appendices of the FY 2015 IPPS/LTCH neutrality factors, outlier threshold, identify certain claims for IME MA PPS final rule: 50405, 50407, 50409 operating standardized amounts, capital payments because the DRG payment through 50418, 50420 through 50429, Federal rates, and impacts for the FY field reflected the 2-percent reduction 50435 and 50436, and 50446. 2015 IPPS/LTCH PPS final rule. To for sequestration (and therefore, the IME The errors described previously also conform with our established payment field did not equal the DRG affect the calculation of the Hospital methodology, we are recalculating the payment field for those claims). As Readmissions Reduction Program FY 2015 transfer-adjusted case-mix discussed in the FY 2015 IPPS/LTCH payment adjustment factors and the indexes and cases used to model IPPS PPS final rule (79 FR 50364 and 50365), Hospital Value-Based Purchasing (VBP)

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Program payment adjustment factors for determining the base-operating DRG value-based incentive payment FY 2015. The readmissions payment payment amounts used in our adjustment factors, and that we adjustment factor is based in part on a calculation of the proxy readmissions expected Table 16B to be posted on the ratio of a hospital’s ‘‘aggregate payment adjustment factors (Table 15A) and the CMS Web site in October 2014 (79 FR for excess readmissions’’ and its updated proxy Hospital VBP payment 50049). ‘‘aggregate payments for all discharges.’’ adjustment factors (Table 16A) for the The review and corrections period for We use Medicare Part A inpatient FY 2015 IPPS/LTCH PPS final rule, we the data from the FY 2015 applicable claims from the MedPAR file as our data inadvertently failed to properly exclude period under the Hospital Readmissions source for determining aggregate all of the IME MA claims, and also Reduction Program resulted in no payments for excess readmissions and inadvertently included the 2-percent changes to the proxy adjustment factors aggregate payments for all discharges. sequestration reduction for claims in the shown in Table 15A. However, the For FY 2015, we use MedPAR claims FY 2013 MedPAR with a discharge date calculation of the FY 2015 readmissions with discharge dates on or after July 1, after April 1, 2013. Therefore, to payment adjustment factors was affected 2010 and no later than June 30, 2013 to properly account for how sequestration by the inadvertent errors resulting from calculate the ratio used in determining is reflected in the FY 2013 MedPAR our use of claims in the FY 2013 the readmissions payment adjustment data in the calculation of these payment MedPAR with a discharge date after factors. Under the Hospital VBP adjustment factors, we restored the 2- April 1, 2013 without properly Program, the Secretary reduces the base percent sequestration reduction to the accounting for how sequestration was operating DRG payment amount for an DRG payment field on the MedPAR reflected in those data. Because we use eligible hospital for each discharge in a claim (as described previously). This claims data from July 1, 2010 to June 30, fiscal year by an applicable percent. The correction ensures that we identify and 2013 to calculate the FY 2015 sum total of these reductions in a fiscal remove all IME MA claims when the readmissions payment adjustment year must equal the total amount IME payment field is equal to the DRG factors, only a portion of that data (that available for value-based incentive payment field and correctly determine is, the claims between April 1, 2013 and payments for all eligible hospitals for the base-operating DRG payment June 30, 2013) was impacted by the the fiscal year, as estimated by the amount used in the calculation of the errors described previously. As a result Secretary. We use a linear exchange readmission and Hospital VBP payment of the correction of those errors, the FY function to translate this estimated adjustment factors for FY 2015. 2015 readmissions payment adjustment amount available into a value-based factors have changed for 60 hospitals. At the time of the issuance of the FY The final FY 2015 readmissions incentive payment percentage for each 2015 IPPS/LTCH PPS final rule, under hospital, based on its total performance payment adjustment factors, which were the Hospital Readmissions Reduction calculated after correcting the errors score (TPS). We then calculate the Program, applicable hospitals had not value-based incentive payment discussed previously, are posted in yet had the opportunity to review and Table 15B on the CMS Web site at: adjustment factor for each hospital and correct data from the FY 2015 apply that factor to the base-operating http://www.cms.gov/Medicare/ applicable period before they were Medicare-Fee-for-Service-Payment/ DRG payment amount for each made public under our policy regarding discharge occurring at that hospital in AcuteInpatientPPS/index.html. (Click the reporting of hospital-specific on the link on the left side of the screen FY 2015 on a per claim basis. We information. Therefore, in Table 15A titled, ’’FY 2015 IPPS Final Rule Home finalized the methodology for using base listed in the Addendum of the FY 2015 Page’’ or ’’Acute Inpatient—Files for operating DRG payment amounts IPPS/LTCH PPS final rule, we provided Download’’.) As noted previously, the derived from the MedPAR file in the proxy FY 2015 readmission payment final FY 2015 readmissions payment calculation of the value-based incentive adjustment factors, and stated that we adjustment factors in Table 15B will be payment adjustment factors in the FY expected to publish the final FY 2015 used for determining payments for 2013 IPPS/LTCH PPS final rule (77 FR readmissions payment adjustment discharges occurring on or after October 53574 and 53575). In the FY 2015 IPPS/ factors in Table 15B on the CMS IPPS 1, 2014. After accounting for these LTCH PPS final rule (79 FR 50049), Web site by October 2014, and would corrections in determination of the FY based on the March 2014 update of the use those final factors for determining 2015 readmissions payment adjustment FY 2013 MedPAR file (that is, MedPAR payments for discharges occurring on or factors, we are revising the estimated Part A claims with discharge dates on or after October 1, 2014 (79 FR 50048). savings under the Hospital after October 1, 2012 and on or before Similarly, in the final rule, we provided Readmissions Reduction Program to September 30, 2013), we estimated that updated proxy value-based incentive $428 million, from $424 million in the the amount available for value-based payment adjustment factors for FY 2015 FY 2015 IPPS/LTCH PPS final rule (79 incentive payments for FY 2015 is $1.4 in Table 16A listed in the Addendum of FR 50425). billion (the applicable percent for the that final rule to reflect changes based We note that we are not correcting the FY 2015 Hospital VBP Program is 1.50 on the March 2014 update to the FY proxy FY 2015 readmissions payment percent). 2013 MedPAR file. These updated proxy adjustment factors for FY 2015 shown in We use the same methodology value-based incentive payment Table 15A or the updated proxy value- described previously to identify only adjustment factors for FY 2015 were based incentive payment adjustment Medicare Part A claims in the MedPAR based on historic FY 2014 Program TPSs factors for FY 2015 shown in Table 16A. file and to remove IME MA claims when because hospitals had not been given However, consistent with the calculating the Hospital Readmissions the opportunity to review and correct methodology for calculating the Reduction Program and the Hospital their actual TPSs for the FY 2015 operating budget neutrality factors for VBP Program payment adjustment Hospital VBP Program at the time we the FY 2015 IPPS/LTCH PPS final rule factors. In addition, we use the claims issued that final rule. We stated that (79 FR 50366), we used corrected proxy in the MedPAR file to determine the after hospitals had been given an payment adjustment factors in the base operating DRG payment amounts opportunity to review and correct their recalculation of the IPPS rates for this used in the calculation of these payment actual TPSs for FY 2015, we would correcting document. These factors can adjustment factors. Consequently, in publish Table 16B to display the actual be found in the IPPS Impact File that

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corresponds to this correcting document for Table 2–2 which is listed in the Reclassified by CBSA and by State—FY which is available on the CMS Web site. Addendum of the FY 2015 IPPS/LTCH 2015; Based on CBSA Delineations Used (We note that the description of the PPS final rule as one of the tables that in FY 2015. methodology for calculating the are only available through the Internet • Table 4D–1.—States Designated as operating budget neutrality factors on the CMS Web site (page 50403). Frontier, with Acute Care Hospitals contained errors that are summarized Receiving at a Minimum the Frontier later in the section and corrected in D. Corrections to Tables Posted on the State Floor Wage Index; Urban Areas section IV.C.1. of this correcting CMS Web Site with Acute Care Hospitals Receiving the document). The proxy factors in Table The following corrections are being Statewide Rural Floor or Imputed Floor 15A were provided for informational made to the tables listed on pages 50402 Wage Index—FY 2015; Based on CBSA purposes and they are not used for and 50403 of the FY 2015 IPPS/LTCH Delineations Used in FY 2014. payment adjustment purposes and the PPS final rule that are only available • Table 4D–2.—States Designated as final FY 2015 readmissions payment through the Internet on the CMS Web Frontier, with Acute Care Hospitals adjustment factors in Table 15B will be site at http://www.cms.gov/Medicare/ Receiving at a Minimum the Frontier used for determining payments for Medicare-Fee-for-Service-Payment/ State Floor Wage Index; Urban Areas discharges occurring on or after October AcuteInpatientPPS/index.html. with Acute Care Hospitals Receiving the 1, 2014 (79 FR 50048). Similarly, the In Table 2–2.—Acute Care Hospitals Statewide Rural Floor or Imputed Floor proxy factors in Table 16A were Case-Mix Indexes for Discharges Wage Index—FY 2015; Based on CBSA provided for informational purposes, Occurring in Federal Fiscal Year 2012; Delineations Used in FY 2015. according to the methodology finalized Hospital Wage Indexes for Federal • Table 4J.—Out-Migration in the FY 2013 IPPS/LTCH final rule (77 Fiscal Year 2015; Hospital Average Adjustment for Acute Care Hospitals— FR 53576), and they are not used for Hourly Wages for Federal Fiscal Years FY 2015 • payment adjustment purposes. As stated 2013 (2009 Wage Data), 2014 (2010 Table 10.—New Technology Add- in the FY 2015 IPPS/LTCH PPS final Wage Data), and 2015 (2011 Wage Data; On Payment Thresholds 1,2 for rule, we intend to post the actual Based on FY 2015 CBSA Delineations); Applications for FY 2016. Hospital VBP Program payment and 3-Year Average of Hospital Average Table 5.—List of Medicare Severity adjustment factors, as Table 16B, in Hourly Wages, we are correcting the Diagnosis-Related Groups (MS–DRGs), October of 2014, after hospitals have table heading as noted in section II.C. of Relative Weighting Factors, and had an opportunity to review and this correcting document. We are also Geometric and Arithmetic Mean Length correct their TPSs. correcting the entries in column ‘‘FY of Stay—FY 2015. We are correcting this On page 50366, we made an error in 2015 Wage Index’’ as a result of the table by correcting typographical and the description of our budget neutrality technical errors discussed in section technical errors in the columns titled methodology with respect to the II.C. of this correcting document. ‘‘Geometric Mean LOS’’ and readmissions payment adjustment We are correcting the following tables ‘‘Arithmetic Mean LOS’’. factors that we used for the purpose of in the entirety as a result of the Table 8B.—FY 2015 Statewide modeling aggregate payments when technical errors discussed in section Average Capital Cost-to-Charge Ratios determining all budget neutrality II.C. of this correcting document: (CCRs) for Acute Care Hospitals. We are factors. As we discussed in the FY 2015 • Table 4A–1.—Wage Index and correcting typographical and technical IPPS/LTCH PPS final rule (79 FR Capital Geographic Adjustment Factor errors in this table. 50048), for that final rule we determined (GAF) for Acute Care Hospitals in Urban Table 18.—FY 2015 Medicare DSH proxy FY 2015 readmission payment Areas by CBSA and by State—FY 2015; Uncompensated Care Payment Factor 3 adjustment factors (shown in Table Based on CBSA Delineations Used in FY and Supplemental Medicare DSH File— 15A), which were calculated based on 2014. FY 2015 Uncompensated Care Payment data from the FY 2015 applicable period • Table 4A–2.—Wage Index and Factors. For the FY 2015 IPPS/LTCH of July 1, 2010 to June 30, 2013. Capital Geographic Adjustment Factor PPS final rule, we published a list of In addition, we made a typographical (GAF) for Acute Care Hospitals in Urban hospitals that we identified to be error in the March 2013 and 2014 Areas by CBSA and by State—FY 2015; subsection (d) hospitals and subsection operating national average case Based on CBSA Delineations Used in FY (d) Puerto Rico hospitals eligible to weighted cost-to charge ratios (CCRs) set 2015. receive empirically justified Medicare forth in the FY 2015 IPPS/LTCH PPS • Table 4B–1.—Wage Index and DSH payment adjustments and final rule. Also, we made a technical Capital Geographic Adjustment Factor uncompensated care payments for FY error in the calculation of the capital (GAF) for Acute Care Hospitals in Rural 2015. As stated in the FY 2015 IPPS/ CCR adjustment factor that is applied to Areas by CBSA and by State—FY 2015; LTCH PPS final rule (79 FR 50022), we determine the capital CCRs used in our Based on CBSA Delineations Used in FY allowed the public an additional period ratesetting process. This inadvertent 2014. after the issuance of the final rule to technical error caused a miscalculation • Table 4B–2.—Wage Index and review and submit comments on the of the capital CCRs used in the Capital Geographic Adjustment Factor accuracy of the list of mergers that we determination of the operating and (GAF) for Acute Care Hospitals in Rural identified in the final rule. Based on the capital budget neutrality factors and the Areas by CBSA and by State—FY 2015; comments received during this calculation of the outlier threshold for Based on FY 2015 CBSA Delineations. additional period, we are updating the FY 2015 IPPS/LTCH PPS final rule. • Table 4C–1.—Wage Index and Table 18 and the Supplemental Therefore, we are correcting the capital Capital Geographic Adjustment Factor Medicare DSH File to reflect the merger CCR adjustment factor and the capital (GAF) for Acute Care Hospitals That Are information received in response to the CCRs used in our determination of the Reclassified by CBSA and by State—FY final rule and are also making one other operating and capital budget neutrality 2015; Based on CBSA Delineations Used correction to Table 18 and the factors as well as our calculation of the in FY 2014. Supplemental Medicare DSH File. We outlier threshold. • Table 4C–2.—Wage Index and have discovered that in calculating Lastly, we made technical and Capital Geographic Adjustment Factor Factor 3 of the uncompensated care typographical errors in the table heading (GAF) for Acute Care Hospitals That Are payment methodology, we inadvertently

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excluded the Medicaid days from the the finding and the reasons therefore in rule accurately reflects these payment most recently available 2012 or 2011 the notice. methodologies and policies. Therefore, cost report for a certain provider that Section 553(d) of the APA ordinarily we believe we have good cause to waive was projected to receive Medicare DSH requires a 30-day delay in effective date the notice and comment and effective in FY 2015. This provider submitted its of final rules after the date of their date requirements. Medicare hospital cost reports to its publication in the Federal Register. IV. Correction of Errors Medicare contractor prior to the March This 30-day delay in effective date can 2014 update of HCRIS but due to be waived, however, if an agency finds In FR Doc. 2014–18545 of August 22, technical errors the Medicare hospital for good cause that the delay is 2014 (79 FR 49853), make the following cost reports were not included in the impracticable, unnecessary, or contrary corrections: March 2014 update of HCRIS. As a to the public interest, and the agency A. Corrections of Errors in the Preamble result, this provider had no Medicaid incorporates a statement of the findings days included in the calculation of and its reasons in the rule issued. 1. On page 49865, third column, third Factor 3. In order to correct this error, In our view, this correcting document bulleted paragraph, line 12, the figure we have revised Factor 3 for all does not constitute a rule that would be ‘‘$369’’ is corrected to read ‘‘$373’’. hospitals to incorporate the changes to subject to the APA notice and comment 2. On page 49918, second column, the data for this provider whose or delayed effective date requirements. first partial paragraph: This correcting document corrects Medicare hospital cost report data were a. Lines 7 through 12, the sentences technical and typographic errors in the inadvertently excluded from the March ‘‘The cost of Voraxaze® is $22,500 per preamble, regulation text, addendum, 2014 update of HCRIS. vial. The applicant stated that an payment rates, tables, and appendices average of four vials is used per E. Summary of Errors in the Appendices included or referenced in the FY 2015 Medicare beneficiary. Therefore, the IPPS/LTCH PPS final rule but does not On page 50428, in our discussion of average cost per case for Voraxaze® is make substantive changes to the policies the effects of the new technology add- $90,000 ($22,500 × 4).’’ are corrected to on payment policy, we made an error in or payment methodologies that were adopted in the final rule. As a result, read ‘‘Based on the latest data from the the costs of the add-on payments for manufacturer, the cost of Voraxaze® is ® this correcting document is intended to Voraxaze for FY 2015. $23,625 per vial. The applicant stated On pages 50405, 50407, and 50409 ensure that the information in the FY 2015 IPPS/LTCH PPS final rule that an average of four vials is used per through 50429; we made errors in the Medicare beneficiary. Therefore, the operating impacts as described in accurately reflects the policies adopted ® in that final rule. average cost per case for Voraxaze is section II.C. of this correcting document. $94,500 ($23,625 × 4).’’ On pages 50435 through 50437, we In addition, even if this were a rule to b. Lines 18 through 20, the sentence made errors in the capital impacts as which the notice and comment ‘‘As a result, the maximum new described in section II.C. of this procedures and delayed effective date technology add-on payment for correcting document. requirements applied, we find that there ® On page 50446, we made an error in is good cause to waive such Voraxaze is $45,000 per case.’’ is the estimated expenditures under the requirements. Undertaking further corrected to read ‘‘As a result, based on IPPS as a result of the errors described notice and comment procedures to the latest data from the manufacturer, the maximum new technology add-on in section II.C. of this correcting incorporate the corrections in this ® document. document into the final rule or delaying payment for Voraxaze for FY 2015 is the effective date would be contrary to $47,250 per case.’’ III. Waiver of Proposed Rulemaking the public interest because it is in the 3. On page 49940, third column, last and Delay in Effective Date public’s interest for providers to receive paragraph, fourth line from the bottom, We ordinarily publish a notice of appropriate payments in as timely a the phrase ‘‘the maximum payment’’ is proposed rulemaking in the Federal manner as possible, and to ensure that corrected to read ‘‘the maximum add-on Register to provide a period for public the FY 2015 IPPS/LTCH PPS final rule payment’’. comment before the provisions of a rule accurately reflects our policies. 4. On pages 50246 through 50249, the take effect in accordance with section Furthermore, such procedures would be table titled ‘‘Previously Adopted 553(b) of the Administrative Procedure unnecessary, as we are not altering our Hospital IQR Program Measures and Act (APA) (5 U.S.C. 553(b)). However, payment methodologies or policies, but Measures Newly Finalized in this Final we can waive this notice and comment rather, we are simply implementing Rule for the FY 2017 Payment procedure if the Secretary finds, for correctly the policies that we previously Determination and Subsequent Years’’ is good cause, that the notice and proposed, received comment on, and corrected as follows: comment process is impracticable, subsequently finalized. This correcting a. Adding the following entry (short unnecessary, or contrary to the public document is intended solely to ensure name VTE–3) immediately preceding interest, and incorporates a statement of that the FY 2015 IPPS/LTCH PPS final the entry VTE–5:

Short Submission methods for FY name Measure name NQF No. 2017 New for FY 2017

VTE–3 Venous thromboembolism patients with anticoagulation NQF #0373 Electronic clinical quality overlap therapy. measure or chart-abstract- ed REQUIRED.

b. Removing the entry for VTE–3 that c. Adding the following entry for PN– follows the entry for Stroke-10. 6 immediately preceding the entry for VTE–4:

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Short Submission methods for FY name Measure name NQF No. 2017 New for FY 2017

PN–6 ... Initial Antibiotic Selection for community-acquired pneu- NQF #0147 Electronic clinical quality Voluntary electronic clinical monia (CAP) in Immunocompetent Patients. measure. quality measure.

5. On 50279, second column, second through 9, the phrase ‘‘for specific items ‘‘0.997543’’ is corrected to read full paragraph, lines 10 through 13, the claimed for a cost reporting period ‘‘0.998761’’. hyperlink, ‘‘http://www.Fqualityforum. if—’’ is corrected to read ‘‘for specific b. Third column: Forg/WorkArea/linkit.aspx items for a cost reporting period if—’’. (1) First partial paragraph, line 11, the ?LinkIdentifier=id&ItemID=70374’’ is C. Corrections of Errors in the figure ‘‘0.997543’’ is corrected to read corrected to read ‘‘http://www.quality Addendum ‘‘0.998761’’. forum.org/WorkArea/linkit.aspx (2) Last paragraph: 1. On page 50366, first column, first ?LinkIdentifier=id&ItemID=70374.’’ (a) Line 9, the figure ‘‘1.001443’’ is 6. On page 50284: full paragraph the paragraph beginning corrected to read ‘‘1.001421’’. a. Second column, first partial with the phrase ‘‘For the purpose of paragraph: calculating the FY’’ and ending with the (b) Line 13, the figure ‘‘0.997543’’ is (1) Line 7, the phrase ‘‘However the phrase ‘‘to the FY 2013 IPPS/LTCH PPS corrected to read ‘‘0.998761’’. six’’ is corrected to read ‘‘However for final rule (77 FR 53399 through (c) Line 15, the figure ‘‘1.001443’’ is the six’’. 53400).)’’ is corrected to read as follows: corrected to read ‘‘1.001421’’. (2) Line 12, the phrase ‘‘four quarters ‘‘For the purpose of calculating the (d) Line 21, the figure ‘‘0.998982’’ is data’’ is corrected to read ‘‘four quarters proposed FY 2015 readmissions corrected to read ‘‘1.000180’’. of data’’. payment adjustment factors in the 4. On page 50369, first column, last b. Third column, third full paragraph, proposed rule, we used excess partial paragraph, line 13, the figure lines 14 and 15, the parenthetical phase readmission ratios and aggregate ‘‘0.990406’’ is corrected to read ‘‘(and not limited to orthopedic payments for excess readmissions based ‘‘0.990429’’. surgeries)’’ is corrected to read ‘‘(and are on admissions from the prior fiscal 5. On page 50370, first column, not limited to orthopedic surgeries)’’. year’s applicable period because second full paragraph: 7. On page 50298, second column, hospitals have had the opportunity to a. Line 3, the figure ‘‘0.989507’’ is first partial paragraph, line 6, the phrase review and correct these data before the corrected to read ‘‘0.989525’’. ‘‘the CAM® Instrument’’ is corrected to data were made public under the policy b. Line 5, the figure ‘‘0.991291’’ is read ‘‘the short CAM® instrument’’. we adopted regarding the reporting of 8. On page 50302, third column, corrected to read ‘‘0.991293’’. hospital-specific readmission rates, 6. On page 50373: second full paragraph, lines 3 and 4, the consistent with section 1886(q)(6) of the a. First column, last paragraph, line 3, phrase ‘‘of long-term mechanical Act. As discussed in section IV.H.11. of the figure ‘‘0.998859’’ is corrected to ventilation’’ is corrected to read ‘‘with this preamble, because the review and read ‘‘0.998854’’. patients on prolonged mechanical corrections period will still be ongoing ventilation’’. through August 19, 2014, which extends b. Second column, first partial 9. On page 50306, lower two-thirds of beyond the issuance of this FY 2015 paragraph, line 1, the figure ‘‘0.998859’’ the page, third column, partial IPPS/LTCH PPS final rule, we are is corrected to read ‘‘0.998854’’. paragraph, lines 18 and 19, the phrase calculating proxy FY 2015 readmissions 7. On page 50374, second column, ‘‘tobacco performance measure set’’ is payment adjustment factors using second full paragraph, line 5, the figure corrected to read ‘‘tobacco treatment excess readmission ratios and aggregate ‘‘0.99931’’ is corrected to read performance measure set’’. payments for excess readmissions based ‘‘0.999313’’. 10. On page 50335, first column, first on admissions from the finalized 8. On page 50380: full paragraph: applicable period for FY 2015. We will a. First column: a. Line 34, the phrase ‘‘that because determine the final readmissions (1) First paragraph: available’’ is corrected to read ‘‘that payment adjustment factors that will be (a) Line 4, the figure ‘‘0.292377’’ is became available’’. used for payments in FY 2015 after the corrected to read ‘‘0.292376’’. b. Lines 38 and 39, the phrase ‘‘not completion of the review and correct (b) Line 6, the figure ‘‘0.28714’’ is enter into an SIA’’ is corrected to read process. (For additional information on corrected to read ‘‘0.287139’’. ‘‘not entered into an SIA’’. our general policy for the reporting of (2) Second paragraph: B. Corrections of Errors in the hospital-specific readmission rates, (a) Line 7, the figure ‘‘0.024849’’ is Regulation Text consistent with section 1886(q)(6) of the corrected to read ‘‘0.024649’’. Act, we refer readers to the FY 2013 § 405.1811 [Corrected] (b) Line 18, the figure ‘‘0.988307’’ is IPPS/LTCH PPS final rule (77 FR 53399 corrected to read ‘‘0.980352’’. 1. On page 50350, in the first column, through 53400).)’’ c. Third column, second full in § 405.1811(c) introductory text, lines 2. On page 50367, third column, first paragraph, line 9, the figure ‘‘$24,758’’ 7 and 8, the phrase ‘‘for a cost reporting full paragraph: is corrected to read ‘‘$24,626’’. period if—’’ is corrected to read ‘‘for a. Line 3, the figure ‘‘0.997543’’ is 9. On page 50381: specific items for a cost reporting period corrected to read ‘‘0.998761’’. if—’’. b. Line 8, the figure ‘‘0.997543’’ is a. First column: corrected to read ‘‘0.998761’’. (1) First full paragraph, line 15, the § 405.1835 [Corrected] 3. On page 50368: figure ‘‘6.27’’ is corrected to read ‘‘6.18’’. 2. On page 50350, in the third a. First column, first partial (2) Third full paragraph, the table is column, in § 405.1835(c), in lines 7 paragraph, line 19, the figure corrected to read as follows:

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Operating standardized Capital federal amounts rate

National ...... 0.948999 0.938237 Puerto Rico ...... 0.926334 0.916334

b. Third column, third full paragraph: (3) Line 10, the figure ‘‘5.71’’ is Standardized Amounts to the FY 2015 (1) Line 4, the figure ‘‘5.71’’ is corrected to read ‘‘5.68’’. Standardized Amounts’’ is corrected to corrected to read ‘‘5.68’’. 10. On pages 50382 and 50383, the read as follows: (2) Line 6, the figure ‘‘0.61’’ is table titled, ‘‘Comparison of FY 2014 corrected to read ‘‘0.58’’.

COMPARISON OF FY 2014 STANDARDIZED AMOUNTS TO THE FY 2015 STANDARDIZED AMOUNTS

Hospital submitted Hospital submitted Hospital did NOT sub- Hospital did NOT sub- quality data quality data mit quality data mit quality data and is a meaningful and is NOT a mean- and is a meaningful and is NOT a mean- EHR user ingful EHR user EHR user ingful EHR user

FY 2014 Base Rate after removing: 1. FY 2014 Geographic Reclassification If Wage Index is If Wage Index is If Wage Index is If Wage Index is Budget Neutrality (0.990718). Greater Than Greater Than Greater Than Greater Than 2. FY 2014 Rural Community Hospital 1.0000: Labor 1.0000: Labor 1.0000: Labor 1.0000: Labor Demonstration Program Budget Neu- (69.6%): $4,230.38 (69.6%): $4,230.38 (69.6%): $4,230.38 (69.6%): $4,230.38 trality (0.999415). Nonlabor (30.4%): Nonlabor (30.4%): Nonlabor (30.4%): Nonlabor (30.4%): 3. Cumulative Factor: FY 2008, FY $1,847.75. $1,847.75. $1,847.75. $1,847.75. 2009, FY 2012, FY 2013, and FY If Wage Index is less If Wage Index is less If Wage Index is less If Wage Index is less 2014 Documentation and Coding Ad- Than or Equal to Than or Equal to Than or Equal to Than or Equal to justment as Required under Sections 1.0000: Labor 1.0000: Labor 1.0000: Labor 1.0000: Labor 7(b)(1)(A) and 7(b)(1)(B) of Pub. L. (62%): $3,768.45 (62%): $3,768.45 (62%): $3,768.45 (62%): $3,768.45 110–90 and Documentation and Cod- Nonlabor (38%): Nonlabor (38%): Nonlabor (38%): Nonlabor (38%): ing Recoupment Adjustment as re- $2,309.70. $2,309.70. $2,309.70. $2,309.70. quired under Section 631 of the Amer- ican Taxpayer Relief Act of 2012 (0.9403). 4. FY 2014 Operating Outlier Offset (0.948995). FY 2015 Update Factor ...... 1.022 ...... 1.01475 ...... 1.01475 ...... 1.0075. FY 2015 MS-DRG Recalibration and Wage 1.000180 ...... 1.000180 ...... 1.000180 ...... 1.000180. Index Budget Neutrality Factor. FY 2015 Reclassification Budget Neutrality 0.990429 ...... 0.990429 ...... 0.990429 ...... 0.990429. Factor. FY 2015 Rural Community Demonstration 0.999313 ...... 0.999313 ...... 0.999313 ...... 0.999313. Program Budget Neutrality Factor. FY 2015 Operating Outlier Factor ...... 0.948999 ...... 0.948999 ...... 0.948999 ...... 0.948999. Cumulative Factor: FY 2008, FY 2009, FY 0.9329 ...... 0.9329 ...... 0.9329 ...... 0.9329. 2012, FY 2013, FY 2014 and FY 2015 Documentation and Coding Adjustment as Required under Sections 7(b)(1)(A) and 7(b)(1)(B) of Pub. L. 110–90 and Docu- mentation and Coding Recoupment Ad- justment as required under Section 631 of the American Taxpayer Relief Act of 2012. FY 2015 New Labor Market Delineation 0.998854 ...... 0.998854 ...... 0.998854 ...... 0.998854. Wage Index Transition Budget Neutrality Factor. National Standardized Amount for FY 2015 if Labor: $3,784.75 Labor: $3,757.90 Labor: $3,757.90 Labor: $3,731.05 Wage Index is Greater Than 1.0000; Nonlabor: $1,653.10. Nonlabor: $1,641.37. Nonlabor: $1,641.37. Nonlabor: Labor/Non-Labor Share Percentage (69.6/ $1,629.65. 30.4). National Standardized Amount for FY 2015 if Labor: $3,371.47 Labor: $3,347.55 Labor: $3,347.55 Labor: $3,323.63 Wage Index is less Than or Equal to Nonlabor: $2,066.38. Nonlabor: $2,051.72. Nonlabor: $2,051.72. Nonlabor: 1.0000; Labor/Non-Labor Share Percent- $2,037.07. age (62/38).

11. On page 50383, the table titled, Puerto Rico-Specific Payment Rate’’ is ‘‘Comparison of FY 2014 Puerto Rico- corrected to read as follows: Specific Payment Rate to the FY 2015

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COMPARISON OF FY 2014 PUERTO RICO-SPECIFIC PAYMENT RATE TO THE FY 2015 PUERTO RICO-SPECIFIC PAYMENT RATE

Update (2.2 percent); wage index is greater Update (2.2 percent); Wage index is less than than 1.0000; labor/non-labor share or equal to 1.0000; labor/non-labor share per- percentage (63.2/36.8) centage (62/38)

FY 2014 Puerto Rico Base Rate, after remov- ing: 1. FY 2014 Geographic Reclassification Labor: $1,722.31 Nonlabor: $1,002.86 ...... Labor: $1,689.61 Nonlabor: $1,035.56. Budget Neutrality (0.990718). 2. FY 2014 Rural Community Hospital Demonstration Program Budget Neu- trality (0.999415). 3. FY 2014 Puerto Rico Operating Outlier Offset (0.943455). FY 2015 Update Factor ...... 1.022 ...... 1.022. FY 2015 MS-DRG Recalibration Budget Neu- 0.998761 ...... 0.998761. trality Factor. FY 2015 Reclassification Budget Neutrality Fac- 0.990429 ...... 0.990429. tor. FY 2015 Rural Community Hospital Demonstra- 0.999313 ...... 0.999313. tion Program Budget Neutrality Factor. FY 2015 New Labor Market Delineation Wage 0.998854 ...... 0.998854. Index Transition Budget Neutrality Factor. FY 2015 Puerto Rico Operating Outlier Factor .. 0.926334 ...... 0.926334. Puerto Rico-Specific Payment Rate for FY 2015 Labor: $1,609.97 Nonlabor: $937.45 ...... Labor: $1,579.40 Nonlabor: $968.02.

12. On page 50385, lower half of the corrected to read ‘‘0.9988 (0.9382/ (3) Sixth full paragraph (third bulleted page, first column, second paragraph, 0.9393)’’. paragraph), last line, the figure ‘‘0.9373’’ line 15, the figure ‘‘0.997543’’ is (c) Line 13, the figure ‘‘0.21 percent’’ is corrected to read ‘‘0.9382’’. corrected to read ‘‘0.998761’’. is corrected to read ‘‘0.12 percent’’ 15. On page 50389: 13. On page 50386, second column, b. Second column, second full a. Top of page, third column, partial last partial paragraph, line 6, the figure paragraph: paragraph: ‘‘1.2’’ is corrected to read ‘‘1.3’’. (1) Line 12, the figure ‘‘0.9987’’ is (1) Line 1, the figure ‘‘0.14’’ is 14. On page 50388: corrected to read’’0.9994’’. corrected to read ‘‘0.07’’. a. First column: (2) Line 17, the figure ‘‘0.9877’’ is (1) Second full paragraph: corrected to read ‘‘0.9884’’. (2) Line 4, the figure ‘‘0.21’’is (a) Line 9, the figure ‘‘6.27’’ is corrected to read ‘‘0.11’’. corrected to read ‘‘6.18’’. (3) Line 18, the figure ‘‘1.0075’’ is (b) Line 13, the figure ‘‘0.9373’’ is corrected to read ‘‘1.0082’’. (3) Line 7, the figure ‘‘1.15’’ is corrected to read ‘‘0.9382’’ c. Third column: corrected to read ‘‘1.32’’. (2) Third full paragraph: (1) Third full paragraph, line 9, the b. Top half of the page, first table (a) Line 6, the phrase ‘‘0.9373 is a figure ‘‘$434.26’’ is corrected to read titled, ‘‘Comparison of Factors and ¥0.21 percent’’ is corrected to read ‘‘$434.97’’. Adjustments: FY 2014 Capital Federal ‘‘0.9382 is a ¥0.12 percent’’. (2) Fifth full paragraph (second Rate and FY 2015 Capital Federal Rate’’ (b) Line 11, the mathematical bulleted paragraph), last line, the figure the table and table footnotes are expression ‘‘0.9979 (0.9373/0.9393)’’ is ‘‘0.9986’’ is corrected to read ‘‘0.9993’’. corrected to read as follows:

COMPARISON OF FACTORS AND ADJUSTMENTS: FY 2014 CAPITAL FEDERAL RATE AND FY 2015 CAPITAL FEDERAL RATE

Percent FY 2014 FY 2015 Change change

Update Factor 1 ...... 1.0090 1 .0150 1.0150 1.50 GAF/DRG Adjustment Factor 1 ...... 0.9987 0.9993 0.9993 ¥0.07 Outlier Adjustment Factor 2 ...... 0 .9393 0.9382 0.9989 ¥0.11 Capital Federal Rate ...... 429 .31 434.97 1.0132 1.32 1 The update factor and the GAF/DRG budget neutrality adjustment factors are built permanently into the capital Federal rates. Thus, for exam- ple, the incremental change from FY 2014 to FY 2015 resulting from the application of the 0.9993 GAF/DRG budget neutrality adjustment factor for FY 2015 is a net change of 0.9993 (or ¥0.07 percent). 2 The outlier reduction factor is not built permanently into the capital Federal rate; that is, the factor is not applied cumulatively in determining the capital Federal rate. Thus, for example, the net change resulting from the application of the FY 2015 outlier adjustment factor is 0.9382/ 0.9393, or 0.9989 (or ¥0.11 percent).

c. Middle of the page, second table Adjustments: Proposed FY 2015 Capital Federal Rate’’ is corrected to read as titled, ‘‘Comparison of Factors and Federal Rate and Final FY 2015 Capital follows:

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COMPARISON OF FACTORS AND ADJUSTMENTS: PROPOSED FY 2015 CAPITAL FEDERAL RATE AND FINAL FY 2015 CAPITAL FEDERAL RATE

Percent Proposed Final Change change

Update Factor ...... 1.0150 1 .0150 1.0000 0.00 GAF/DRG Adjustment Factor ...... 0 .9957 0.9993 1.0037 0.37 Outlier Adjustment Factor ...... 0 .9374 0.9382 1.0009 0.09 Capital Federal Rate ...... 433 .01 434.97 1.0045 0.45

d. Bottom half of the page, third Average Hourly Wages for Federal 2014 CBSA Delineations), and 2015 column, second full paragraph, last line, Fiscal Years 2013 (2009 Wage Data), (2011 Wage Data; Based on FY 2015 the figure ‘‘$209.10.’’ is corrected to 2014 (2010 Wage Data), and 2015 (2011 CBSA Delineations); and 3-Year Average read ‘‘$209.45.’’ Wage Data; Based on FY 2015 CBSA of Hospital Average Hourly Wages 16. On page 50390, second column, Delineations); and 3-Year Average of (Based on FY 2014 and FY 2015 CBSA first partial paragraph, last line, the Hospital Average Hourly Wages’’ is Delineations)’’. figure ‘‘$24,758’’ is corrected to read corrected to read ‘‘Table 2–2.—Acute 18. On page 50404: ‘‘$24,626’’. Care Hospitals Case-Mix Indexes for a. Top one-sixth of the page, the first 17. On page 50403, first column, first Discharges Occurring in Federal Fiscal table titled ‘‘Table 1A.—National paragraph (table heading for Table 2–2), Year 2013; Hospital Wage Indexes for Adjusted Operating Standardized the heading, ‘‘Table 2–2.—Acute Care Federal Fiscal Year 2015; Hospital Amounts, Labor/Nonlabor (69.6 Percent Hospitals Case-Mix Indexes for Average Hourly Wages for Federal Labor Share/30.4 Percent Nonlabor Discharges Occurring in Federal Fiscal Fiscal Years 2013 (2009 Wage Data; Share If Wage Index Is Greater Than Year 2012; Hospital Wage Indexes for Based on FY 2014 CBSA Delineations), 1)—FY 2015’’ is corrected to read as Federal Fiscal Year 2015; Hospital 2014 (2010 Wage Data; Based on FY follows:

TABLE 1A—NATIONAL ADJUSTED OPERATING STANDARDIZED AMOUNTS, LABOR/NONLABOR (69.6 PERCENT LABOR SHARE/30.4 PERCENT NONLABOR SHARE IF WAGE INDEX IS GREATER THAN 1)—FY 2015

Hospital submitted quality data Hospital did NOT submit quality Hospital submitted quality data Hospital did NOT submit quality and is a meaningful data and is a meaningful and is NOT a meaningful data and is NOT a meaningful EHR user EHR user EHR user EHR user (update = 2.2 percent) (update = 1.475 percent) (update = 1.475 percent) (Update = 0.75 percent) Labor Nonlabor Labor Nonlabor Labor Nonlabor Labor Nonlabor

$3,784.75 $1,653.10 $3,757.90 $1,641.37 $3,757.90 $1,641.37 $3,731.05 $1,629.65

b. Top third of the page, the second Amounts, Labor/Nonlabor (62 Percent 1)—FY 2015’’ is corrected to read as table titled ‘‘Table 1B.—National Labor Share/38 Percent Nonlabor Share follows: Adjusted Operating Standardized If Wage Index Is Less Than Or Equal To

TABLE 1B—NATIONAL ADJUSTED OPERATING STANDARDIZED AMOUNTS, LABOR/NONLABOR (62 PERCENT LABOR SHARE/ 38 PERCENT NONLABOR SHARE IF WAGE INDEX IS LESS THAN OR EQUAL TO 1)—FY 2015

Hospital submitted quality data Hospital did NOT submit quality Hospital submitted quality data Hospital did NOT submit quality and is a meaningful data and is a meaningful and is NOT a meaningful data and is NOT a meaningful EHR user EHR user EHR user EHR user (update = 2.2 percent) (update = 1.475 percent) (update = 1.475 percent) (update = 0.75 percent) Labor Nonlabor Labor Nonlabor Labor Nonlabor Labor Nonlabor

$3,371.47 $2,066.38 $3,347.55 $2,051.72 $3,347.55 $2,051.72 $3,323.63 $2,037.07

c. Middle of the page, the third table Because Wage Index Is Less Than Or Nonlabor Share If Wage Index Is Less titled ‘‘Table 1C.—Adjusted Operating Equal To 1; Puerto Rico: 63.2 Percent Than Or Equal To 1—FY 2015’’ is Standardized Amounts For Puerto Rico, Labor Share/36.8 Percent Nonlabor corrected to read as follows: Labor/Nonlabor (National: 62 Percent Share If Wage Index Is Greater Than 1 Labor Share/38 Percent Nonlabor Share Or 62 Percent Labor Share/38 Percent

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TABLE 1C—ADJUSTED OPERATING STANDARDIZED AMOUNTS FOR PUERTO RICO, LABOR/NONLABOR (NATIONAL: 62 PER- CENT LABOR SHARE/38 PERCENT NONLABOR SHARE BECAUSE WAGE INDEX IS LESS THAN OR EQUAL TO 1; PUERTO RICO: 63.2 PERCENT LABOR SHARE/36.8 PERCENT NONLABOR SHARE IF WAGE INDEX IS GREATER THAN 1 OR 62 PERCENT LABOR SHARE/38 PERCENT NONLABOR SHARE IF WAGE INDEX IS LESS THAN OR EQUAL TO 1—FY 2015

Rates if wage index is Rates if wage index is Standardized amount greater than 1 less than or equal to 1 Labor Nonlabor Labor Nonlabor

. National 1 ...... Not Applicable ...... Not Applicable ...... $3,371.47 $2,066.38 Puerto Rico ...... $1,609.97 ...... $937.45 ...... 1,579.40 968.02 1 For FY 2015, there are no CBSAs in Puerto Rico with a national wage index greater than 1.

d. Lower third of the page, the fourth D. Corrections of Errors in the 2. On page 50407, second column, last table titled ‘‘Table 1D.—Capital Appendices partial paragraph, line 3, the figure Standard Federal Payment Rate—FY ‘‘5.71’’ is corrected to read ‘‘5.68’’. 2015’’ is corrected to read as follows: 1. On page 50405, first column, first paragraph: 3. On pages 50409 through 50419, table titled ‘‘Table I.—Impact Analysis TABLE 1D—CAPITAL STANDARD a. Line 10, the figure ‘‘$654’’ is of Changes to the IPPS For Operating FEDERAL PAYMENT RATE—FY 2015 corrected to read ‘‘$623’’. Costs for FY 2015’’ the table and table b. Line 12, the figure ‘‘$132’’ is Rate footnotes are corrected as follows: corrected to read ‘‘$128’’. BILLING CODE 4120–01–P National ...... $434.97 c. Line 14, the figure ‘‘1.6’’ is Puerto Rico ...... 209.45 corrected to read ‘‘1.5’’.

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TABLE I.-IMPACT ANALYSIS OF CHANGES TO THE IPPS FOR OPERATING COSTS FOR FY 2015

Appli. catio FY n of 2015 the Weight FY 2015 Front sand DRG, ier Hospit DRG Rei. Rural Applic Wag Hos al Rate Chang wts., Floor and a-tion e pitaI Updat es Wage Imputed of the lnde Rea e and with FY2015 Index Floor CBSA X d- Docu- Appli- Wage Change with Transi- and mis menta- cation Data swith FY201 Applica- Impact tion Out- sion Cha tion of with Wage 5 tion of of the Wage Migr s nge All and Recall- Appli- and MGCR National New Index a- Red s to FY Cod in bratio cation Recall- B Rural OMB with tion UC· Med 201 g n of Wage bration Reclas Floor CBSA Budge Adju tion lear 5 No. of Adjust Budge Budget Budget si- Budget Design t st- Pro- e Cha Hospi· -ment t Neu- Neu- Neutrali ficatio Neu- a-tions Neutra ment gra DSH nqe tals1 2 tralityl trality4 ty5 ns6 trality7 8 -lity 9 10 m" 12 s 3 (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) All Hospitals 3,396 1.5 0 0 0 0 0 0 0 0.1 -0.2 -1.3 -0.6 By Geographic Location: Urban hospitals 2,549 1.4 0 0 0 -0.1 0 0 0 0.1 -0.2 -1.4 -0.6 Large urban areas 1,401 1.4 0.1 0.1 0.2 -0.3 0 0 0 0 -0.2 -1.4 -0.6 Other urban areas 1,148 1.5 0 -0.2 -0.2 0.1 0 0 0 0.2 -0.2 -1.3 -0.6 Rural hospitals 847 1.8 -0.2 0.1 -0.2 1.6 -0.3 0 0 0.1 0 -0.9 -0.6 Bed Size (Urban): 0-99 beds 666 1.5 -0.2 0.1 -0.1 -0.4 0.1 0.1 0 0.4 -0.2 -0.7 -0.3 100-199 beds 787 1.4 -0.1 -0.1 -0.1 0 0.3 0 0 0.2 -0.3 -1.4 -0.7 200-299 beds 455 1.5 -0.1 0 0 0.1 0 0.1 0 0.1 -0.2 -1.1 -0.2 300-499 beds 429 1.4 0 0 0.1 -0.3 0.1 0.1 0 0.2 -0.1 -1.5 -0.6 500 or more beds 212 1.4 0.2 0 0.2 -0.2 -0.2 -0.1 0 0 -0.1 -1.4 -0.8 Bed Size (Rural): 0-49 beds 328 1.8 -0.2 -0.1 -0.3 0.4 -0.2 -0.1 0.1 0.2 0 -0.7 -1.1 50-99 beds 305 1.9 -0.3 0.1 -0.3 0.9 -0.2 0 0 0.1 0 -0.9 -1.4 100-149 beds 125 1.8 -0.2 0.1 -0.2 1.8 -0.3 0 0 0.2 -0.1 -0.9 0 150-199 beds 50 1.7 -0.1 0.1 0 1.8 -0.3 0 0 0.2 -0.1 -1.2 -0.4 200 or more beds 39 1.7 -0.1 0.1 0 2.8 -0.4 0.1 -0.1 0 0.1 -0.7 0.4 Urban by Region: New England 120 1.4 0 0.8 0.8 1.3 2.8 -0.5 0.2 0.1 -0.2 -1 0 Middle Atlantic 324 1.4 0.1 0.1 0.2 0.1 -0.4 0 0.3 0.2 -0.2 -1.2 -0.1 South Atlantic 407 1.4 0 -0.3 -0.2 -0.3 -0.4 0.1 -0.1 0 -0.2 -1.3 -0.9 East North Central 397 1.4 0 0 0 -0.2 -0.6 0.1 -0.1 0 -0.3 -1.1 -0.5 East South Central 153 1.4 0 -0.5 -0.4 -0.4 -0.4 0 -0.1 0 -0.2 -1.6 -1.3 West North Central 162 1.4 0 -0.1 0 -0.7 -0.5 0.1 -0.1 0.8 -0.1 -1 -0.4 West South Central 387 1.4 0 -0.6 -0.5 -0.5 -0.5 0.1 -0.1 0 -0.2 -2 -1.7 Mountain 162 1.5 -0.1 0 0 -0.1 0 0.1 -0.1 0.2 -0.2 -1.6 -0.8 Pacific 385 1.4 0 0.6 0.5 -0.2 1.4 0.1 -0.1 0 -0.1 -1.5 0.1 Puerto Rico 52 1.5 0.2 0.1 0.3 -0.8 0 -0.1 0 0 0 -7.6 -7.3 Rural by Re!lion: New En!lland 22 1.7 -0.1 0.6 0.4 2.2 -0.3 0 0 0 0 -0.5 -0.9 Middle Atlantic 57 1.9 -0.3 0.7 0.3 1.1 -0.2 -0.2 0.2 0.2 -0.1 -0.7 -0.7 South Atlantic 132 1.8 -0.2 -0.1 -0.3 2.2 -0.4 0 0 0.1 0.1 -1 -0.8 East North Central 116 1.9 -0.2 0 -0.2 1.1 -0.2 0.1 0 0 -0.1 -0.5 0.2 East South Central 165 1.6 -0.1 -0.3 -0.3 2.6 -0.5 0 -0.1 0.1 -0.1 -1.5 -1.4 West North Central 102 2.1 -0.3 0 -0.3 0.4 -0.1 0.1 0 0.3 0 -0.3 0.3 West South Central 168 1.7 -0.1 0 0 1.6 -0.4 -0.1 0 0.1 -0.2 -1.6 -1.8 Mountain 61 2 -0.3 -0.1 -0.4 0.2 -0.1 0 0 0.6 0 -0.4 0.6 Pacific 24 2.3 -0.6 0.8 -0.4 0.9 -0.1 -0.2 0 0 0.2 -0.3 1.3 By Payment Classification: Urban areas 2,563 1.4 0 0 0.1 -0.1 0 0 0 0.1 -0.2 -1.4 -0.6 Large urban areas 1,413 1.4 0.1 0.1 0.2 -0.3 0 0 0 0 -0.2 -1.4 -0.6 Other urban areas 1,150 1.5 0 -0.2 -0.1 0.1 0 0 0 0.2 -0.2 -1.3 -0.6 Rural areas 833 1.8 -0.2 0 -0.2 1.2 -0.3 -0.1 0 0.3 0 -0.8 -0.5

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Appli - catio FY n of 2015 the Weight FY 2015 Front sand DRG, ier Hospit DRG Rei. Rural Applic Wag Hos al Rate Chang wts., Floor and a-tion e pital Updat es Wage Imputed of the lnde Rea e and with FY2015 Index Floor CBSA X d- Docu- Appli- Wage Change with Transi- and mis menta- cation Data swith FY201 Applica- Impact lion Out- sion Cha lion of with Wage 5 tion of of the Wage Migr s nge All and Recali- Appli- and MGCR National New Index a- Red s to FY Cod in bratio cation Recali- B Rural OMB with lion uc- Med 201 g n of Wage bration Reclas Floor CBSA Budge Adju tion icar 5 No. of Adjust Budge Budget Budget si- Budget Design t st- Pro- e Cha Hospi- -ment t Neu- Neu- Neutrali ficatio Neu- a-lions Neutra ment gra DSH n~e tals1 2 tralityl trality" ns6 trality7 8 -lily 9 10 m11 12 53 (1) (2) (3). (4). ~~ (6) m· (8) (9) (10) (11) (12) (13) Teaching Status: Nonteaching 2,357 1.5 -0.1 -0.1 -0.1 0.2 0.2 0.1 0 0.1 -0.2 -1.1 -0.5 Fewer than 100 residents 795 1.5 0 0 0 -0.1 -0.1 0.1 0 0.2 -0.2 -1.4 -0.5 1DO or more residents 244 1.4 0.2 0.1 0.3 -0.1 -0.2 -0.1 0.1 0 -0.1 -1.6 -0.8 Urban DSH: Non-DSH 679 1.5 -0.1 -0.1 -0.1 0 0 0.2 0 0.2 -0.2 -0.3 0.6 100 or more beds 1,588 1.4 0 0 0.1 -0.1 0 0 0 0.1 -0.2 -1.5 -0.8 Less than 100 beds 383 1.5 -0.2 0.2 0 0 0 0.1 0 0.3 -0.2 -1 -0.7 Rural DSH: SCH 373 2.1 -0.3 0 -0.4 0.3 -0.1 0 0 0 0 -0.6 -0.5 RRC 212 1.8 -0.2 0 -0.1 1.8 -0.3 0 0 0.5 0 -0.9 -0.2 100 or more beds 24 1.4 -0.1 -0.2 -0.3 2.4 -0.6 0.1 0 0.2 -0.2 -1.7 -1.2 Less than 1DO beds 137 1.4 -0.1 -0.1 -0.2 1 -0.6 -0.3 0.2 0.6 -0.2 -1.8 -1.2 Urban teaching and DSH: Both teaching and DSH 842 1.4 0.1 0 0.2 -0.2 -0.1 0 0 0.1 -0.1 -1.6 -0.8 Teaching and no DSH 133 1.4 0 0 0 0.3 0.1 0.1 0 0.1 -0.3 -0.3 0.9 No teaching and DSH 1,129 1.5 -0.1 -0.1 -0.1 0 0.3 0.1 0 0.1 -0.2 -1.4 -0.7 No teaching and no DSH 459 1.4 -0.1 -0.2 -0.2 -0.2 0 0.2 0 0.2 -0.2 -0.3 0.7 Special Hospital Types: RRC 193 1.4 0 0 -0.1 2.5 -0.5 0 0 0.6 -0.2 -1.2 -0.6 SCH 325 2 -0.2 -0.1 -0.3 0 -0.1 0 0 0 0 -0.4 0.8 MDH 162 2 -0.3 0 -0.3 0.3 -0.2 0 0 0.1 -0.1 -0.8 -5.2 SCH and RRC 124 2.1 -0.3 0 -0.2 0.3 0 0 0 0.1 0.1 -0.3 1.1 MDH and RRC 15 2 -0.3 -0.1 -0.3 0.5 -0.1 -0.1 0 0 0 -0.3 -8 Type of Ownership: Voluntary 1,935 1.5 0 0.1 0.1 0 0 0 0 0.1 -0.2 -1.2 -0.4 Proprietary 892 1.4 0 -0.2 -0.1 0.2 0.1 0.1 -0.1 0.1 -0.2 -1.5 -0.8 Government 542 1.5 0 -0.1 0 -0.1 0 0 0 0 -0.1 -2 -1.4 Medicare Utilization as a Percent of Inpatient Days: 0-25 501 1.4 0 0.1 0.2 -0.3 0 0 0 0 -0.1 -3 -2.3 25-50 2,081 1.4 0 0 0 -0.1 0 0 0 0.1 -0.2 -1.2 -0.4 50-65 601 1.6 -0.1 -0.1 -0.1 0.8 0.1 0.2 0 0.1 -0.2 -0.6 0 Over65 93 1.6 -0.2 -0.2 -0.3 0.2 0.5 -0.1 0 0.2 -0.2 -0.6 -0.6 FY 2015 Reclassifications by the Medicare Geographic Classification Review Board: All Reclassified Hospitals 719 1.5 0 0 0 2.4 0.1 0 -0.1 0 -0.2 -1.1 -0.1 Non-Reclassified Hospitals 2,677 1.4 0 0 0 -0.7 0 0 0 0.1 -0.2 -1.4 -0.7 Urban Hospitals Reclassified 450 1.4 0 0 0.1 2.4 0.2 0 -0.1 0 -0.2 -1.2 -0.1 Urban Nonreclassified Hospitals, FY 2015 2,054 1.4 0 0 0 -0.8 0 0 0 0.1 -0.2 -1.4 -0.7 All Rural Hospitals Reclassified FY 2015 269 1.8 -0.2 0 -0.1 2.5 -0.3 0.1 0 0 -0.1 -0.9 -0.2 Rural Nonreclassified Hospitals FY 2015 514 1.9 -0.3 0 -0.3 -0.1 -0.2 -0.1 0 0.3 0.1 -0.9 -0.8 All Section 401 Reclassified Hospitals 50 1.9 -0.2 -0.1 -0.4 -0.4 -0.1 -0.4 0.2 2 0 -0.6 -1.1

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Appll. catlo FY n of 2015 the Weight FY 2015 Front sand DRG, ier Hospit DRG Rei. Rural Applic Wag Hos al Rate Chang Wts., Floor and a-tion e pitaI Updat es Wage Imputed of the lnde Rea eand with FY2015 Index Floor CBSA X d- Docu- Appll- Wage Change with Transl- and mls menta- cation Data swith FY201 Applica- Impact tion Out- sion Cha tion of with Wage 5 tion of of the Wage Migr s nge All and Recall- Appli- and MGCR National New Index a- Red sto FY Codin bratio cation Recall- B Rural OMB with tion UC• Med 201 g n of Wage bration Reel as Floor CBSA Budge Adju tion icar 5 No. of Adjust Budge Budget Budget si- Budget Design t st- Pro- e Cha Hospi· -ment tNeu- Neu- Neutrali ficatio Neu· a-tions Neutra ment g~ DSH n~e tals1 2 trallty'l trallty' t/ ns6 trallty7 8 -llty9 10 m 12 s 3 {1) {2) {3) {4) {lj} {6) m {8) nil {10) {11) {12) {13) Other Reclassified Hospitals (Section 1886(d){8)(B)l. 64 1.6 -0.2 0.3 0 3.1 -0.5 0.2 0.1 0.1 -0.1 -1.2 -1.9 Specialty Hospitals Cardiac specialty Hospitals 15 1.4 0.9 0.1 1.1 -0.9 -0.1 0.1 -0.1 0.7 0 -0.1 1.9

1 Because data necessary to classify some hospitals by category were missing, the total number of hospitals in each category may not equal the national total. Discharge data are from FY 2013, and hospital cost report data are from reporting periods beginning in FY 2012 and FY 2011. 2 This column displays the payment impact of the hospital rate update and the documentation and coding adjustment including the 2.2 percent adjustment to the national standardized amount and hospital-specific rate (the estimated 2.9 percent market basket update reduced by the 0.5 percentage point for the multifactor productivity adjustment and the 0.2 percentage point reduction under the Affordable Care Act) and the 0.8 percent documentation and coding adjustment to the national standardized amount. This column displays the payment impact of the changes to the Version 32.0 GROUPER, the changes to the relative weights and the recalibration of the MS-DRG weights based on the corrected FY 2013 MedPAR data in accordance with section 1886(d)(4)(C)(iii) of the Act. This column displays the application of the recalibration budget neutrality factor of 0.998761 in accordance with section 1886(d)(4)(C)(iii) of the Act. 4 This column displays the payment impact of the update to wage index data using FY 2011 cost report data and the new OMB labor market area delineations. This column displays the payment impact of the application of the wage budget neutrality factor, which is calculated separately from the recalibration budget neutrality factor, and is calculated in accordance with section 1886(d)(3)(E)(i) of the Act. The wage budget neutrality factor is 1.001421. 5 This column displays the combined payment impact of the changes in Columns 3 through 4 and the cumulative budget neutrality factor for MS-DRG and wage changes in accordance with section 1886(d)(4)(C)(iii) of the Act and section 1886(d)(3)(E) of the Act. The cumulative wage and recalibration budget neutrality factor of 1.000180 is the product of the wage budget neutrality factor and the recalibration budget neutrality factor. 6 Shown here are the effects of geographic reclassifications by the Medicare Geographic Classification Review Board (MGCRB) along with the effects of the adoption of the new OMB labor market area delineations on these reclassifications. The effects demonstrate the FY 2015 payment impact of going from no reclassifications to the reclassifications scheduled to be in effect for FY 2015. Reclassification for prior years has no bearing on the payment impacts shown here. This column reflects the geographic budget neutrality factor of 0.990429. 7 This column displays the effects of the rural floor and imputed floor based on the adoption of new OMB labor market area delineations. The Affordable Care Act requires the rural floor budget neutrality adjustment to be 100 percent national level adjustment. The rural floor budget neutrality factor (which includes the imputed floor) applied to the wage index is 0.989525. 8 This column displays the effects of the adoption of the new OMB labor market area delineations. It does not reflect the 3-year transition for hospitals that are currently located in urban counties that would become rural under the new OMB delineations and the 1-year transition to the new OMB delineations where the wage indexes are blended such that hospitals receive 50 percent of their wage index based on the new OMB delineations, and 50 percent of their wage index based on their current labor market area. Rather, it shows the impact of the new OMB delineations fully implemented in FY 2015. ~his column shows the effects of both the 3-year transition for hospitals that are currently located in urban counties that become rural under the new OMB delineations, and the 50150 blended wage index adjustments in a budget neutral manner. For FY 2015, we are applying both the 3-year transition and 50150 blended wage index adjustments in a budget neutral manner, with a budget neutrality factor of 0.998854 applied to the standardized amount. 1 This column shows the combined impact of the policy required under section 10324 of the Affordable Care Act that hospitals located in frontier States have a wage index no less than 1.0 and of section 1886(d)(13) of the Act, as added by section 505 of Pub. L. 108-173, which provides for an increase in a hospital's wage index if a threshold percentage of residents of the county where the hospital Is located commute to work at hospitals in counties with higher wage indexes. These are non budget neutral policies. 11 This column displays the impact of the implementation of the Hospital Readmissions Reduction Program, section 3025 of the Affordable Care Act, a nonbudget neutral provision that adjusts a hospital's payment for excess readmissions. 12 This column displays the impact of the implementation of section 3133 of the Affordable Care Act that reduces Medicare DSH payments by 75 percent and establishes an additional uncompensated care payment. 13 This column shows the changes in payments from FY 2014 to FY 2015. It reflects the impact of the FY 2015 hospital update and the adjustment for documentation and coding. It also reflects changes in hospitals' reclassification status in FY 2015 compared to FY 2014, and the extension of MDH payment status for the first half of FY 2015, under Pub. L. 113-93 enacted on April1, 2014. It incorporates all of the changes displayed in Columns 2, 5, 6, 7, 8, 9, 10, 11, and 12 (the changes displayed in Columns 3 and 4 are included in Column 5). The sum of these impacts may be different from the percentage changes shown here due to rounding and interactive effects.

BILLING CODE 4120–01–C b. Second column, first partial (1) First full paragraph, line 26, the 4. On page 50420: paragraph, line 6, the figure ‘‘0.3’’ is figure ‘‘1.001443’’ is corrected to read a. First column, last partial paragraph, corrected to read ‘‘0.2’’. ‘‘1.001421’’. last line, the figure ‘‘0.997543’’ is corrected to read ‘‘0.998761’’. c. Third column:

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(2) Last partial paragraph, line 6, the (2) Line 13, the figure ‘‘1.5’’ is is corrected to read ‘‘this final rule for phrase ‘‘2 urban hospital’’ is corrected corrected to read ‘‘1.6’’. a complete’’. to read ‘‘2 urban hospitals’’. c. Third column, first full paragraph, (2) Second paragraph, line 8, the 5. On page 50421, bottom half of the line 8, the figure ‘‘0.989507’’ is figure ‘‘0.991291’’ is corrected to read page: corrected to read ‘‘0.989525’’. a. First column, first full paragraph: 6. On page 50422: ‘‘0.991293’’. (1) Line 9, the figure ‘‘1.001443’’ is a. First column, second partial (3) Last paragraph, line 7, the figure corrected to read ‘‘1.001421’’. paragraph: ‘‘1.121’’ is corrected to read ‘‘1.1093’’. (2) Line 11, the figure ‘‘0.997543’’ is (1) Line 1, the figure ‘‘422’’ is (4) Last paragraph, last line, the figure corrected to read ‘‘0.998761’’. corrected to read ‘‘423’’. (3) Line 18, the figures ‘‘0.998982’’ (2) Line 3, the figure ‘‘2,974’’ is ‘‘$1.9’’ is corrected to read ‘‘$1.8’’. and ‘‘0.10’’ are corrected to read corrected to read ‘‘2,973’’. 7. On page 50423, the table titled ‘‘FY ‘‘1.000180’’ and ‘‘0.018’’, respectively. (3) Line 6, the figure ‘‘0.989507’’ is 2015 IPPS Estimated Payments Due to b. Second column, second full corrected to read ‘‘0.989525’’. Rural Floor and Imputed Floor with paragraph: b. Second column: National Budget Neutrality’’ is corrected (1) Line 6, the figure ‘‘0.990406’’ is (1) First paragraph, line 23, the to read as follows: corrected to read ‘‘0.990429’’. phrase, ‘‘this final rule for a complere’’

FY 2015 IPPS ESTIMATED PAYMENTS DUE TO RURAL FLOOR AND IMPUTED FLOOR WITH NATIONAL BUDGET NEUTRALITY

Percent Number of change in pay- hospitals that ments due to Number of will receive the application of Difference State hospitals rural floor and (in millions) rural floor or imputed floor imputed floor with budget neutrality

(1) (2) (3) (4)

Alabama ...... 91 2 ¥0.5 ¥8.4 Alaska ...... 6 4 1.5 2.2 Arizona ...... 57 9 ¥0.1 ¥1.9 Arkansas ...... 45 0 ¥0.5 ¥5.3 California ...... 309 200 1.9 190.2 Colorado ...... 47 6 0.2 2.3 Connecticut ...... 31 8 ¥0.4 ¥6.6 Delaware ...... 6 0 ¥0.6 ¥2.4 Washington, D.C ...... 7 0 ¥0.6 ¥2.6 Florida ...... 169 25 ¥0.3 ¥18.7 Georgia ...... 106 0 ¥0.5 ¥13.2 Hawaii ...... 12 0 ¥0.4 ¥1.3 Idaho ...... 14 0 ¥0.4 ¥1.2 Illinois ...... 127 0 ¥0.6 ¥28.0 Indiana ...... 91 0 ¥0.6 ¥13.2 Iowa ...... 34 0 ¥0.5 ¥4.5 Kansas ...... 53 0 ¥0.4 ¥3.8 Kentucky ...... 65 1 ¥0.5 ¥7.9 Louisiana ...... 100 0 ¥0.5 ¥7.0 Maine ...... 20 0 ¥0.5 ¥2.5 Massachusetts ...... 61 51 4.9 156.4 Michigan ...... 95 0 ¥0.5 ¥23.2 Minnesota ...... 51 0 ¥0.5 ¥10.1 Mississippi ...... 64 0 ¥0.5 ¥5.3 Missouri ...... 78 0 ¥0.5 ¥11.2 Montana ...... 12 4 ¥0.3 ¥0.8 Nebraska ...... 23 0 ¥0.4 ¥2.6 Nevada ...... 24 6 0.7 4.7 New Hampshire ...... 13 9 2.2 10.5 New Jersey ...... 64 15 0.1 2.7 New Mexico ...... 25 2 ¥0.3 ¥1.1 New York ...... 163 0 ¥0.6 ¥48.9 North Carolina ...... 87 0 ¥0.5 ¥15.9 North Dakota ...... 6 1 ¥0.3 ¥0.8 Ohio ...... 135 10 ¥0.4 ¥16.9 Oklahoma ...... 86 2 ¥0.5 ¥5.7 Oregon ...... 33 0 ¥0.5 ¥4.8 Pennsylvania ...... 154 10 ¥0.5 ¥23.3 Puerto Rico ...... 52 11 0 ¥0.1 Rhode Island ...... 11 4 0.5 1.8 South Carolina ...... 55 7 ¥0.3 ¥5.1 South Dakota ...... 19 0 ¥0.3 ¥1.1 Tennessee ...... 98 16 ¥0.2 ¥5.6 Texas ...... 324 6 ¥0.5 ¥30.1 Utah ...... 33 2 ¥0.4 ¥2.2

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FY 2015 IPPS ESTIMATED PAYMENTS DUE TO RURAL FLOOR AND IMPUTED FLOOR WITH NATIONAL BUDGET NEUTRALITY—Continued

Percent change in pay- Number of ments due to Number of hospitals that application of Difference State hospitals will receive the rural floor and (in millions) rural floor or imputed floor imputed floor with budget neutrality

(1) (2) (3) (4)

Vermont ...... 6 0 ¥0.3 ¥0.7 Virginia ...... 79 1 ¥0.5 ¥12.0 Washington ...... 49 8 ¥0.2 ¥3.1 West Virginia ...... 30 0 ¥0.4 ¥3.2 Wisconsin ...... 65 2 ¥0.5 ¥8.6 Wyoming ...... 11 1 ¥0.2 ¥0.3

8. On page 50424: a. First column, first partial (2) First full paragraph, line 14, the a. Second column, first partial paragraph, last line, the figure ‘‘$424’’ is figure ‘‘0.7’’ is corrected to read ‘‘0.6’’. paragraph, line 9, the figure ‘‘0.998859’’ corrected to read ‘‘$428’’. 10. On pages 50426 and 50427, the b. Second column, first full is corrected to read ‘‘0.998854’’. table titled ‘‘Table II.—Impact Analysis paragraph, line 1, the phrase ‘‘Rural b. Third column, first full paragraph, West South’’ is corrected to read ‘‘Rural of Changes for FY 2015 Acute Care line 18, the figure ‘‘273’’ is corrected to West North’’. Hospital Operating Prospective Payment read ‘‘279’’. c. Third column: System (Payments Per Discharge)’’ is corrected to read as follows: 9. On page 50425: (1) First partial paragraph, line 6, the figure ‘‘5.71’’ is corrected to read ‘‘5.68’’.

TABLE II—IMPACT ANALYSIS OF CHANGES FOR FY 2015 ACUTE CARE HOSPITAL OPERATING PROSPECTIVE PAYMENT SYSTEM [Payments per discharge]

Estimated av- Estimated av- Number of erage FY 2014 erage FY 2015 All FY 2015 hospitals payment per payment per changes discharge discharge

(1) (2) (3) (4)

All Hospitals ...... 3,396 11,249 11,184 ¥0.6 By Geographic Location: Urban hospitals ...... 2,549 11,625 11,557 ¥0.6 Large urban areas ...... 1,401 12,377 12,308 ¥0.6 Other urban areas ...... 1,148 10,709 10,643 ¥0.6 Rural hospitals ...... 847 8,240 8,194 ¥0.6 Bed Size (Urban): 0–99 beds ...... 666 9,088 9,061 ¥0.3 100–199 beds ...... 787 9,747 9,682 ¥0.7 200–299 beds ...... 455 10,507 10,489 ¥0.2 300–499 beds ...... 429 11,951 11,875 ¥0.6 500 or more beds ...... 212 14,309 14,198 ¥0.8 Bed Size (Rural): 0–49 beds ...... 328 6,778 6,701 ¥1.1 50–99 beds ...... 305 7,803 7,692 ¥1.4 100–149 beds ...... 125 8,113 8,109 0 150–199 beds ...... 50 8,857 8,819 ¥0.4 200 or more beds ...... 39 9,988 10,027 0.4 Urban by Region: New England ...... 120 12,806 12,802 0 Middle Atlantic ...... 324 12,914 12,905 ¥0.1 South Atlantic ...... 407 10,453 10,359 ¥0.9 East North Central ...... 397 10,849 10,790 ¥0.5 East South Central ...... 153 10,052 9,922 ¥1.3 West North Central ...... 162 11,355 11,314 ¥0.4 West South Central ...... 387 10,677 10,500 ¥1.7 Mountain ...... 162 11,935 11,835 ¥0.8 Pacific ...... 385 14,691 14,708 0.1 Puerto Rico...... 52 8,218 7,620 ¥7.3 Rural by Region: New England ...... 22 11,207 11,110 ¥0.9

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TABLE II—IMPACT ANALYSIS OF CHANGES FOR FY 2015 ACUTE CARE HOSPITAL OPERATING PROSPECTIVE PAYMENT SYSTEM—Continued [Payments per discharge]

Estimated av- Estimated av- Number of erage FY 2014 erage FY 2015 All FY 2015 hospitals payment per payment per changes discharge discharge

(1) (2) (3) (4)

Middle Atlantic...... 57 8,292 8,231 ¥0.7 South Atlantic ...... 132 7,836 7,772 ¥0.8 East North Central ...... 116 8,475 8,496 0.2 East South Central ...... 165 7,513 7,409 ¥1.4 West North Central ...... 102 8,914 8,941 0.3 West South Central ...... 168 7,108 6,978 ¥1.8 Mountain ...... 61 9,454 9,509 0.6 Pacific ...... 24 11,083 11,221 1.3 By Payment Classification: Urban hospitals ...... 2,563 11,609 11,541 ¥0.6 Large urban areas ...... 1,413 12,366 12,296 ¥0.6 Other urban areas ...... 1,150 10,677 10,611 ¥0.6 Rural areas ...... 833 8,457 8,411 ¥0.5 Teaching Status: Nonteaching ...... 2,357 9,343 9,300 ¥0.5 Fewer than 100 residents ...... 795 10,978 10,920 ¥0.5 100 or more residents ...... 244 16,533 16,399 ¥0.8 Urban DSH: Non-DSH ...... 679 9,836 9,899 0.6 100 or more beds ...... 1,588 12,055 11,960 ¥0.8 Less than 100 beds ...... 383 8,434 8,375 ¥0.7 Rural DSH: SCH ...... 373 7,907 7,867 ¥0.5 RRC ...... 212 9,194 9,175 ¥0.2 100 or more beds ...... 24 7,395 7,305 ¥1.2 Less than 100 beds ...... 137 6,329 6,253 ¥1.2 Urban teaching and DSH: Both teaching and DSH ...... 842 13,277 13,167 ¥0.8 Teaching and no DSH ...... 133 11,130 11,230 0.9 No teaching and DSH ...... 1,129 9,781 9,713 ¥0.7 No teaching and no DSH ...... 459 9,223 9,289 0.7 Special Hospital Types: RRC ...... 193 9,403 9,350 ¥0.6 SCH ...... 325 9,577 9,654 0.8 MDH ...... 162 7,072 6,706 ¥5.2 SCH and RRC ...... 124 10,293 10,410 1.1 MDH and RRC ...... 15 9,195 8,458 ¥8 Type of Ownership: Voluntary ...... 1,935 11,377 11,334 ¥0.4 Proprietary ...... 892 10,001 9,919 ¥0.8 Government ...... 542 12,283 12,113 ¥1.4 Medicare Utilization as a Percent of Inpatient Days: 0–25 ...... 501 14,885 14,544 ¥2.3 25–50 ...... 2,081 11,359 11,311 ¥0.4 50–65 ...... 601 9,146 9,145 0 Over 65...... 93 8,408 8,353 ¥0.6 FY 2015 Reclassifications by the Medicare Geographic Classification Re- view Board: All Reclassified Hospitals ...... 719 10,843 10,829 ¥0.1 Non-Reclassified Hospitals ...... 2,677 11,379 11,298 ¥0.7 Urban Hospitals Reclassified ...... 450 11,514 11,502 ¥0.1 Urban Nonreclassified Hospitals, FY 2015: ...... 2,054 11,675 11,593 ¥0.7 All Rural Hospitals Reclassified FY 2015: ...... 269 8,734 8,713 ¥0.2 Rural Nonreclassified Hospitals FY 2015: ...... 514 7,667 7,606 ¥0.8 All Section 401 Reclassified Hospitals: ...... 50 10,137 10,025 ¥1.1 Other Reclassified Hospitals (Section 1886(d)(8)(B)) ...... 64 7,814 7,665 ¥1.9 Specialty Hospitals: Cardiac specialty Hospitals ...... 15 12,303 12,538 1.9

11. On page 50428, first column, first estimate from FY 2013, we currently overall FY 2015 payments by paragraph, lines 31 through 35, the estimate that new technology add-on $6,300,000.’’ is corrected to read ‘‘Based sentence ‘‘Based on the applicant’s payments for Voraxaze® will increase on the latest data from the

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manufacturer, we currently estimate 13. On page 50435, upper three- increase in capital payments for that new technology add-on payments fourths of the page: voluntary and proprietary hospitals is for Voraxaze® will increase overall FY a. First column, fourth bulleted estimated at 1.5 percent, and for 2015 payments by $6,615,000.’’ paragraph: government hospitals the increase is 12. On page 50429: (1) Line 4, the figure ‘‘0.9986’’ is estimated to be 1.3 percent.’’ a. First column, second paragraph, corrected to read ‘‘0.9993’’. (2) Third full paragraph: line 6, the figure ‘‘$5.3’’ is corrected to (2) Line 5, the figure ‘‘0.9373’’ is (a) Line 20, the figure ‘‘0.7’’ is read ‘‘$8.8’’. corrected to read ‘‘0.9382’’. corrected to read ‘‘0.8’’. b. First column, third paragraph, line b. Second column, first partial (b) Line 24, the figure ‘‘(2.2 percent)’’ 16, the figure ‘‘166’’ is corrected to read paragraph, line 2, the figure’’1.2’’ is is corrected to read ‘‘(2.3 percent)’’. ‘‘116’’. corrected to read ‘‘1.3’’. 14. On pages 50435 through 50437, c. Second column, first partial c. Third column: the table titled, ‘‘Table III. Comparison paragraph, line 4, the figure ‘‘$70.7’’ is (1) Second full paragraph, second of Total Payments Per Case’’ is corrected corrected to read ‘‘$71’’. sentence, is corrected to read, ‘‘The to read as follows:

TABLE III—COMPARISON OF TOTAL PAYMENTS PER CASE [FY 2014 payments compared to FY 2015 payments]

Average FY Average FY Number of 2014 2015 hospitals payments/ payments/ Change case case

By Geographic Location: All hospitals ...... 3,396 856 869 1.5 Large urban areas (populations over 1 million) ...... 1,401 944 959 1.7 Other urban areas (populations of 1 million or fewer) ...... 1,148 824 835 1.4 Rural areas ...... 847 583 589 1.0 Urban hospitals ...... 2,549 890 903 1.5 0–99 beds ...... 666 733 740 0.9 100–199 beds ...... 787 772 783 1.5 200–299 beds ...... 455 812 826 1.8 300–499 beds ...... 429 907 922 1.6 500 or more beds ...... 212 1,066 1,081 1.5 Rural hospitals ...... 847 583 589 1.0 0–49 beds ...... 328 474 480 1.2 50–99 beds ...... 305 542 546 0.8 100–149 beds ...... 125 582 588 1.1 150–199 beds ...... 50 636 643 1.1 200 or more beds ...... 39 709 717 1.1 By Region: Urban by Region ...... 2,549 890 903 1.5 New England ...... 120 984 1,001 1.7 Middle Atlantic ...... 324 958 977 1.9 South Atlantic ...... 407 802 812 1.3 East North Central ...... 397 856 867 1.3 East South Central ...... 153 764 772 1.0 West North Central ...... 162 880 892 1.4 West South Central ...... 387 823 831 0.9 Mountain ...... 162 907 918 1.2 Pacific ...... 385 1,120 1,148 2.4 Puerto Rico ...... 52 408 412 1.2 Rural by Region ...... 847 583 589 1.0 New England ...... 22 812 823 1.4 Middle Atlantic ...... 57 566 575 1.7 South Atlantic ...... 132 555 559 0.7 East North Central ...... 116 607 613 1.1 East South Central ...... 165 534 539 0.9 West North Central ...... 102 619 624 0.9 West South Central ...... 168 515 519 0.8 Mountain ...... 61 653 657 0.5 Pacific ...... 24 749 767 2.4 Puerto Rico ...... 0 0 0 0.0 By Payment Classification: All hospitals ...... 3,396 856 869 1.5 Large urban areas (populations over 1 million) ...... 1,413 943 959 1.7 Other urban areas (populations of 1 million or fewer) ...... 1,150 823 835 1.4 Rural areas ...... 833 594 599 0.8 Teaching Status: Non-teaching ...... 2,357 728 738 1.5 Fewer than 100 Residents ...... 795 837 850 1.5 100 or more Residents ...... 244 1,210 1,229 1.6 Urban DSH: 100 or more beds ...... 1,588 911 925 1.6 Less than 100 beds ...... 383 649 657 1.1

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TABLE III—COMPARISON OF TOTAL PAYMENTS PER CASE—Continued [FY 2014 payments compared to FY 2015 payments]

Average FY Average FY Number of 2014 2015 hospitals payments/ payments/ Change case case

Rural DSH: Sole Community (SCH/EACH) ...... 373 530 535 1.1 Referral Center (RRC/EACH) ...... 212 656 661 0.8 Other Rural: 100 or more beds ...... 24 552 552 0.0 Less than 100 beds ...... 137 465 469 1.0 Urban teaching and DSH: Both teaching and DSH ...... 842 990 1,005 1.5 Teaching and no DSH ...... 133 891 907 1.8 No teaching and DSH ...... 1,129 762 774 1.6 No teaching and no DSH ...... 459 788 799 1.4 Rural Hospital Types: Non special status hospitals ...... 2,575 890 903 1.5 RRC/EACH ...... 193 717 730 1.8 SCH/EACH ...... 325 652 659 1.1 SCH, RRC and EACH ...... 124 711 720 1.3 Hospitals Reclassified by the Medicare Geographic Classification Review Board: FY2015 Reclassifications: All Urban Reclassified ...... 450 886 904 2.1 All Urban Non-Reclassified ...... 2,054 893 906 1.4 All Rural Reclassified ...... 269 621 628 1.0 All Rural Non-Reclassified ...... 514 533 537 0.8 Other Reclassified Hospitals (Section 1886(d)(8)(B)) ...... 59 581 595 2.3 Type of Ownership: Voluntary ...... 1,935 868 882 1.5 Proprietary ...... 892 776 787 1.5 Government ...... 542 895 907 1.3 Medicare Utilization as a Percent of Inpatient Days: 0–25 ...... 501 1,022 1,037 1.4 25–50 ...... 2,081 871 884 1.5 50–65 ...... 601 717 728 1.6 Over 65 ...... 93 648 654 1.0

a. Upper three-fourths of the page: under the IPPS from FY 2014 to FY (1) Second column, first paragraph: 2015’’ is corrected to read as follows: (a) Line 2, the figure ‘‘$654’’ is corrected to read ‘‘$623’’. TABLE V—ACCOUNTING STATEMENT: (b) Line 14, the figure ‘‘$457’’ is CLASSIFICATION OF ESTIMATED EX- corrected to read ‘‘$428’’. PENDITURES UNDER THE IPPS (c) Line 22, the figure ‘‘$369’’ is FROM FY 2014 TO FY 2015 corrected to read ‘‘$373’’. (d) Line 44, the figure ‘‘$457’’ is Category Transfers corrected to read ‘‘$428’’. Annualized Monetized ¥$734 million. (e) Line 45, the figure ‘‘$888’’ is Transfers. corrected to read ‘‘$862’’. From Whom to Whom Federal Government (f) Line 51, the figure ‘‘$132’’ is to IPPS Medicare corrected to read ‘‘$128’’. Providers. (g) Line 55, the figure ‘‘$756’’ is corrected to read ‘‘$734’’. Dated: September 30, 2014. (2) Third column, last paragraph, last Oliver Potts, line, the figure ‘‘$756’’ is corrected to Deputy Executive Secretary to the read ‘‘$734’’. Department, Department of Health and b. Lower quarter of the page, the table Human Services. titled ‘‘Table V.—Accounting Statement: [FR Doc. 2014–23630 Filed 10–1–14; 11:15 am] Classification of Estimated Expenditures BILLING CODE 4120–01–P

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Proposed Rules Federal Register Vol. 79, No. 192

Friday, October 3, 2014

This section of the FEDERAL REGISTER INFORMATION CONTACT section of this about obtaining materials referenced in contains notices to the public of the proposed document. this document are provided in the issuance of rules and regulations. The • Email comments to: ‘‘Availability of Documents’’ section. purpose of these notices is to give interested [email protected]. If you • NRC’s PDR: You may examine and persons an opportunity to participate in the do not receive an automatic email reply purchase copies of public documents at rule making prior to the adoption of the final confirming receipt, then contact us at the NRC’s PDR, Room O1–F21, One rules. 301–415–1677. White Flint North, 11555 Rockville • Fax comments to: Secretary, U.S. Pike, Rockville, Maryland 20852. Nuclear Regulatory Commission at 301– NUCLEAR REGULATORY B. Submitting Comments COMMISSION 415–1101. • Mail comments to: Secretary, U.S. Please include Docket ID NRC–2014– 10 CFR Part 72 Nuclear Regulatory Commission, 0102 in the subject line of your Washington, DC 20555–0001, ATTN: comment submission, in order to ensure [NRC–2014–0102] Rulemakings and Adjudications Staff. that the NRC is able to make your • Hand deliver comments to: 11555 comment submission available to the RIN 3150–AJ40 Rockville Pike, Rockville, Maryland public in this docket. The NRC cautions you not to include List of Approved Spent Fuel Storage 20852, between 7:30 a.m. and 4:15 p.m. identifying or contact information in Casks: Holtec International HI-STORM (Eastern Time) Federal workdays; comment submissions that you do not FLOOD/WIND System; Certificate of telephone: 301–415–1677. want to be publicly disclosed in your Compliance No. 1032, Amendment No. For additional direction on obtaining comment submission. The NRC will 1 information and submitting comments, see ‘‘Obtaining Information and post all comment submissions at AGENCY: Nuclear Regulatory Submitting Comments’’ in the http://www.regulations.gov as well as Commission. SUPPLEMENTARY INFORMATION section of enter the comment submissions into ADAMS, and the NRC does not ACTION: Proposed rule. this document. FOR FURTHER INFORMATION CONTACT: routinely edit comment submissions to SUMMARY: The U.S. Nuclear Regulatory Naiem S. Tanious, Office of Federal and remove identifying or contact Commission (NRC) is proposing to State Materials and Environmental information. amend its spent fuel storage regulations Management Programs, U.S. Nuclear If you are requesting or aggregating by revising the Holtec International HI- Regulatory Commission, Washington, comments from other persons for STORM FLOOD/WIND (FW) System DC 20555–0001; telephone: 301–415– submission to the NRC, then you should listing within the ‘‘List of approved 6103, email: [email protected]. inform those persons not to include identifying or contact information that spent fuel storage casks’’ to include SUPPLEMENTARY INFORMATION: Amendment No. 1 to Certificate of they do not want to be publicly Compliance (CoC) No. 1032. I. Obtaining Information and disclosed in their comment submission. Amendment No. 1 adds a new heat load Submitting Comments Your request should state that the NRC does not routinely edit comment pattern for the multipurpose canister A. Obtaining Information (MPC)–37, broadens the back pressure submissions to remove such information range for MPC–37 and MPC–89, and Please refer to Docket IDNRC–2014– before making the comment updates certain definitions related to 0102 when contacting the NRC about submissions available to the public or fuel classification. Also, the amendment the availability of information for this entering the comment into ADAMS. proposed rule. You may obtain publicly- makes a correction to the expiration II. Procedural Background date of CoC No. 1032. available information related to this proposed rule by any of the following This proposed rule is limited to the DATES: Submit comments by November methods: changes contained in Amendment No. 1 3, 2014. Comments received after this • Federal Rulemaking Web site: Go to to CoC No. 1032 and does not include date will be considered if it is practical http://www.regulations.gov and search other aspects of the Holtec International to do so, but the NRC staff is able to for Docket ID NRC–2014–0102. HI-STORM FW System design. Because ensure consideration only for comments • NRC’s Agencywide Documents the NRC considers this action received on or before this date. Access and Management System noncontroversial and routine, the NRC ADDRESSES: You may submit comments (ADAMS): You may obtain publicly- is publishing this proposed rule by any one of the following methods available documents online in the concurrently with a direct final rule in (unless this document describes a ADAMS Public Documents collection at the Rules and Regulations section of this different method for submitting http://www.nrc.gov/reading-rm/ issue of the Federal Register. Adequate comments on a specific subject): adams.html. To begin the search, select protection of public health and safety • Federal Rulemaking Web site: Go to ‘‘ADAMS Public Documents’’ and then continues to be ensured. The direct final http://www.regulations.gov and search select ‘‘Begin Web-based ADAMS rule will become effective on December for Docket ID NRC–2014–0102. Address Search.’’ For problems with ADAMS, 17, 2014. However, if the NRC receives questions about NRC dockets to Carol please contact the NRC’s Public significant adverse comments on this Gallagher; telephone: 301–287–3422; Document Room (PDR) reference staff at proposed rule by November 3, 2014, email: [email protected]. For 1–800–397–4209, 301–415–4737, or by then the NRC will publish a document technical questions, please contact the email to [email protected]. For the that withdraws the direct final rule. If individual listed in the FOR FURTHER convenience of the reader, instructions the direct final rule is withdrawn, the

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NRC will address the comments technology approved by the The NRC may post materials related received in response to these proposed Commission under Section 219(a) [sic: to this document, including public revisions in a subsequent final rule. 218(a)] for use at the site of any civilian comments, on the Federal rulemaking Absent significant modifications to the nuclear power reactor.’’ Web site at http://www.regulations.gov proposed revisions requiring To implement this mandate, the under Docket ID NRC–2014–0102. The republication, the NRC will not initiate Commission approved dry storage of Federal rulemaking Web site allows you a second comment period on this action spent nuclear fuel in NRC-approved to receive alerts when changes or in the event the direct final rule is casks under a general license by additions occur in a docket folder. To withdrawn. publishing a final rule which added a subscribe: 1) Navigate to the docket A significant adverse comment is a new subpart K in part 72 of Title 10 of folder (NRC–2014–0102); 2) click the comment where the commenter the Code of Federal Regulations (10 ‘‘Sign up for Email Alerts’’ link; and 3) explains why the rule would be CFR) entitled, ‘‘General License for enter your email address and select how inappropriate, including challenges to Storage of Spent Fuel at Power Reactor frequently you would like to receive the rule’s underlying premise or Sites’’ (55 FR 29181; July 18, 1990). This emails (daily, weekly, or monthly). approach, or would be ineffective or rule also established a new subpart L in List of Subjects in 10 CFR Part 72 unacceptable without a change. A 10 CFR part 72 entitled, ‘‘Approval of Administrative practice and comment is adverse and significant if: Spent Fuel Storage Casks,’’ which (1) The comment opposes the rule and procedure, Criminal penalties, contains procedures and criteria for provides a reason sufficient to require a Manpower training programs, Nuclear obtaining NRC approval of spent fuel substantive response in a notice-and- materials, Occupational safety and storage cask designs. The NRC comment process. For example, a health, Penalties, Radiation protection, subsequently issued a final rule on June substantive response is required when: Reporting and recordkeeping 8, 2011 (76 FR 33121) that approved the (a) The comment causes the NRC staff requirements, Security measures, Spent Holtec International HI–STORM FW to reevaluate (or reconsider) its position fuel, Whistleblowing. System design and added it to the list or conduct additional analysis; For the reasons set out in the (b) The comment raises an issue of NRC-approved cask designs in 10 preamble and under the authority of the serious enough to warrant a substantive CFR 72.214 as CoC No. 1032. Atomic Energy Act of 1954, as amended; response to clarify or complete the IV. Plain Writing the Energy Reorganization Act of 1974, record; or as amended; the Nuclear Waste Policy (c) The comment raises a relevant The Plain Writing Act of 2010 (Pub. Act of 1982, as amended; and 5 U.S.C. issue that was not previously addressed L. 111–274) requires Federal agencies to 552 and 553; the NRC is proposing to or considered by the NRC staff. write documents in a clear, concise, adopt the following amendments to 10 (2) The comment proposes a change well-organized manner that also follows CFR part 72. or an addition to the rule, and it is other best practices appropriate to the apparent that the rule would be subject or field and the intended PART 72—LICENSING ineffective or unacceptable without audience. The NRC has written this REQUIREMENTS FOR THE incorporation of the change or addition. document to be consistent with the INDEPENDENT STORAGE OF SPENT (3) The comment causes the NRC staff Plain Writing Act as well as the NUCLEAR FUEL, HIGH-LEVEL to make a change (other than editorial) Presidential Memorandum, ‘‘Plain RADIOACTIVE WASTE, AND to the rule, CoC, or Technical Language in Government Writing,’’ REACTOR-RELATED GREATER THAN Specifications. published June 10, 1998 (63 FR 31883). CLASS C WASTE For additional procedural The NRC requests comment on the information, the regulatory analysis, and proposed rule with respect to clarity ■ 1. The authority citation for part 72 the environmental assessment and and effectiveness of the language used. continues to read as follows: finding of no significant impact, see the Authority: Atomic Energy Act secs. 51, 53, direct final rule published in the Rules V. Availability of Documents 57, 62, 63, 65, 69, 81, 161, 182, 183, 184, 186, and Regulations section of this issue of The documents identified in the 187, 189, 223, 234, 274 (42 U.S.C. 2071, 2073, the Federal Register. 2077, 2092, 2093, 2095, 2099, 2111, 2201, following table are available to 2232, 2233, 2234, 2236, 2237, 2273, 2282, III. Background interested persons through one or more 2021); Energy Reorganization Act secs. 201, of the following methods, as indicated. 202, 206, 211 (42 U.S.C. 5841, 5842, 5846, Section 218(a) of the Nuclear Waste 5851); National Environmental Policy Act Policy Act (NWPA) of 1982, as sec. 102 (42 U.S.C. 4332); Nuclear Waste Document ADAMS Acces- amended, requires that ‘‘the Secretary sion No. Policy Act secs. 131, 132, 133, 135, 137, 141, [of the Department of Energy] shall 148 (42 U.S.C. 10151, 10152, 10153, 10155, establish a demonstration program, in CoC No. 1032, Amend- ML14118A466. 10157, 10161, 10168); sec. 1704 112 Stat. cooperation with the private sector, for ment No. 1. 2750 (44 U.S.C. 3504 note); Energy Policy Act the dry storage of spent nuclear fuel at Technical Specifications, ML14118A468. of 2005, Pub. L. 109–58, 119 Stat. 549 (2005). civilian nuclear power reactor sites, Appendix A. Section 72.44(g) also issued under Nuclear Technical Specifications, ML14118A467. Waste Policy Act secs. 142(b) and 148(c), (d) with the objective of establishing one or Appendix B. (42 U.S.C. 10162(b), 10168(c), (d)). more technologies that the [Nuclear Safety Evaluation Report ... ML14118A469. Section 72.46 also issued under Atomic Regulatory] Commission may, by rule, Application ...... ML11290A019. Energy Act sec. 189 (42 U.S.C. 2239); Nuclear approve for use at the sites of civilian Application Supplemental ML12158A558. Waste Policy Act sec. 134 (42 U.S.C. 10154). nuclear power reactors without, to the May 23, 2012. Section 72.96(d) also issued under Nuclear maximum extent practicable, the need Application Supplemental ML13028A103. Waste Policy Act sec. 145(g) (42 U.S.C. for additional site-specific approvals by January 24, 2013. 10165(g)). Application Supplemental ML13120A505. Subpart J also issued under Nuclear Waste the Commission.’’ Section 133 of the Policy Act secs. 117(a), 141(h) (42 U.S.C. NWPA states, in part, that ‘‘[the April 18, 2013. Application Supplemental ML13217A050. 10137(a), 10161(h)). Commission] shall, by rule, establish July 23, 2013. Subpart K also issued under sec. 218(a) (42 procedures for the licensing of any U.S.C. 10198).

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■ 2. In § 72.214, Certificate of procedures for updating the RFM. Since federalism impacts that might result Compliance No. 1032 is revised to read these actions impose an additional from adopting the proposals in this as follows: burden over that proposed in the NPRM, document. The most helpful comments we are reopening the comment period to reference a specific portion of the § 72.214 List of approved spent fuel allow the public the chance to comment storage casks. proposal, explain the reason for any on these proposed changes. recommended change, and include * * * * * DATES: We must receive comments on supporting data. To ensure the docket Certificate Number: 1032. this SNPRM by December 2, 2014. does not contain duplicate comments, Initial Certificate Effective Date: June 13, 2011. ADDRESSES: You may send comments by commenters should send only one copy any of the following methods: of written comments, or if comments are Amendment Number 1 Effective Date: • December 17, 2014. Federal eRulemaking Docket: Go to filed electronically, commenters should SAR Submitted by: Holtec http://www.regulations.gov. Follow the submit only one time. International, Inc. online instructions for sending your We will file in the docket all comments electronically. SAR Title: Final Safety Analysis • comments that we receive, as well as a Report for the HI–STORM FW System. Fax: 202–493–2251. report summarizing each substantive • Mail: Send comments to the U.S. Docket Number: 72–1032. public contact with FAA personnel Department of Transportation, Docket Certificate Expiration Date: June 12, concerning this proposed rulemaking. Operations, M–30, West Building 2031. Before acting on this proposal, we will Ground Floor, Room W12–140, 1200 Model Number: HI–STORM FW consider all comments we receive on or New Jersey Avenue SE., Washington, MPC–37, MPC–89. before the closing date for comments. DC 20590–0001. Dated at Rockville, Maryland, this 18th day • Hand Delivery: Deliver to the We will consider comments filed after of September 2014. ‘‘Mail’’ address between 9 a.m. and 5 the comment period has closed if it is For the Nuclear Regulatory Commission. p.m., Monday through Friday, except possible to do so without incurring Mark A. Satorius, Federal holidays. expense or delay. We may change this Executive Director for Operations. proposal in light of the comments we Examining the AD Docket [FR Doc. 2014–23631 Filed 10–2–14; 8:45 am] receive. BILLING CODE 7590–01–P You may examine the AD docket on Discussion the Internet at http:// www.regulations.gov or in person at the We issued an NPRM to amend 14 CFR DEPARTMENT OF TRANSPORTATION Docket Operations Office between 9 part 39 to add an airworthiness directive a.m. and 5 p.m., Monday through (AD) that would apply to certain Bell Federal Aviation Administration Friday, except Federal holidays. The AD Model 206L–3 and 206L–4 helicopters. docket contains this proposed AD, the The NPRM was published in the 14 CFR Part 39 foreign authority’s AD, the economic Federal Register on June 7, 2013 (78 FR evaluation, any comments received, and [Docket No. FAA–2013–0489; Directorate 34282). The NPRM proposed to require Identifier 2008–SW–003–AD] other information. The street address for installing a placard on the instrument the Docket Operations Office (telephone panel below the dual tachometer and RIN 2120–AA64 800–647–5527) is in the ADDRESSES revising the Operating Limitations section. Comments will be available in section of the Model 206L3 and 206L4 Airworthiness Directives; Bell the AD docket shortly after receipt. Helicopter Textron Canada Limited RFMs by inserting pages that limit For service information identified in steady-state operations between speeds AGENCY: Federal Aviation this proposed AD, contact Bell of 71.8% and 91.5%. Administration (FAA), DOT. Helicopter Textron Canada Limited, 12,800 Rue de l’Avenir, Mirabel, Quebec The NPRM was prompted by ACTION: Supplemental notice of J7J1R4; telephone (450) 437–2862 or Transport Canada Civil Aviation (TCCA) proposed rulemaking (SNPRM); (800) 363–8023; fax (450) 433–0272; or AD No. CF–2005–28R1, dated June 14, reopening of comment period. at http://www.bellcustomer.com/files/. 2007, to correct an unsafe condition for SUMMARY: We are revising and You may review the referenced service certain Model 206L–3 and 206L–4 reopening the comment period for an information at the FAA, Office of the helicopters. TCCA, which is the aviation earlier notice of proposed rulemaking Regional Counsel, Southwest Region, authority for Canada, advises of several (NPRM) for certain Bell Helicopter 2601 Meacham Blvd., Room 663, Fort failures of third stage turbine wheels Textron Canada Limited (Bell) Model Worth, Texas 76137. used in Rolls-Royce 250–C30S and 250– 206L–3 and 206L–4 helicopters. The FOR FURTHER INFORMATION CONTACT: C47B engines. According to TCCA, NPRM proposes to require installing a James Blyn, Aviation Safety Engineer, Rolls-Royce determined that detrimental placard and revising the limitations Regulations and Policy Group, vibrations can occur within a particular section of the rotorcraft flight manual Rotorcraft Directorate, FAA, 2601 range of turbine speeds, and may be a (RFM). The NPRM was prompted by Meacham Blvd., Fort Worth, Texas contributing factor to these failures. Bell several incidents of third stage engine 76137; telephone (817) 222–5110; email has revised the RFM and provided a turbine wheel failures caused by [email protected]. corresponding decal to inform pilots to excessive vibrations at certain engine SUPPLEMENTARY INFORMATION: avoid steady-state operations between speeds during steady-state operations. 71.8% and 91.5% turbine speeds. The This action proposes to revise the Comments Invited TCCA AD requires amending the RFMs, NPRM by adding certain Model 206L1 We invite you to participate in this advising pilots of the change, and helicopters to the applicability, rulemaking by submitting written installing a decal as described in Bell excluding certain Model 206L3 and comments, data, or views. We also Alert Service Bulletin (ASB) No. 206L– 206L4 helicopters from the invite comments relating to the 05–134, dated June 8, 2005, or later applicability, and changing the economic, environmental, energy, or revisions.

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Actions Since Previous NPRM was the main rotor RPM (Nr)/power turbine safety in air commerce. This regulation Issued RPM (N2) dual tachometer and for is within the scope of that authority Since we issued the NPRM (78 FR inserting the RFM changes into the because it addresses an unsafe condition 34282, June 7, 2013), we determined flight manual. Revision A of the ASB that is likely to exist or develop on that Bell Model 206L1 helicopters with was issued to exclude Bell Model 206L– products identified in this rulemaking Engine Upgrade Kit Part Number (P/N) 3 and 206L–4 helicopters with 250– action. C20R engines installed under STC No. 206–706–520 installed should be Regulatory Findings included in the applicability. Engine SR00036SE from the requirements of the Upgrade Kit P/N 206–706–520 replaces ASB. We determined that this proposed AD would not have federalism implications the Rolls-Royce 250–C28B engine with Proposed Requirements of the SNPRM a Rolls-Royce 250–C30P engine. The under Executive Order 13132. This condition causing the failures of third This proposed AD would require proposed AD would not have a stage turbine wheels used in Rolls- installing a placard on the instrument substantial direct effect on the States, on Royce 250–C30S and 250–C–47B panel below the NR/N2 dual tachometer the relationship between the national engines could also exist in Rolls-Royce and also requires revising the Operating Government and the States, or on the 250–C30P engines. Lastly, we have Limitations section of the Model 206L3 distribution of power and determined that Bell Model 206L3 and and 206L4 RFMs to limit steady-state responsibilities among the various 206L4 helicopters having Rolls-Royce operations between speeds of 71.8% levels of government. 250–C20R engines installed under and 91.5%. For the reasons discussed, I certify Supplemental Type Certificate (STC) this proposed regulation: Differences Between This Supplemental 1. Is not a ‘‘significant regulatory number SR00036SE are exempt from the NPRM and the TCCA AD requirements of the proposed AD action’’ under Executive Order 12866; The TCCA AD requires compliance because that engine is not affected by 2. Is not a ‘‘significant rule’’ under the within 10 calendar days; this proposed the unsafe condition. This SNPRM also DOT Regulatory Policies and Procedures AD would require compliance within 30 changes the procedures for modifying (44 FR 11034, February 26, 1979); the RFM Limitations Section from days. This proposed AD would be 3. Will not affect intrastate aviation in inserting revised pages to making pen applicable to Model 206L–1 helicopters Alaska to the extent that it justifies and ink changes. with Engine Upgrade Kit P/N 206–706– making a regulatory distinction; and 520 installed because the same unsafe 4. Will not have a significant Comments condition exits on this model, and the economic impact, positive or negative, We gave the public the opportunity to TCCA AD is not. on a substantial number of small entities under the criteria of the Regulatory comment on the previous NPRM (78 FR Costs of Compliance 34282, June 7, 2013), and we received Flexibility Act. a comment from one commenter. We estimate that this proposed AD We prepared an economic evaluation would affect 616 helicopters of U.S. of the estimated costs to comply with Request Registry. We estimate that operators this proposed AD and placed it in the Rolls-Royce Corporation requested may incur the following costs in order AD docket. to comply with this AD. Based on an that in addition to requiring the placard List of Subjects in 14 CFR Part 39 on the instrument panel, we allow average labor rate of $85 per hour, operators the option to temporarily amending the RFM would require about Air transportation, Aircraft, Aviation mark the Nr/Np gauge with colored tape 0.5 work-hour, for a cost per helicopter safety, Incorporation by Reference, to provide a more visual aide to the of about $43 and a cost to U.S. operators Safety. of $26,488. Installing the decal would pilot for the speed avoidance zone. The Proposed Amendment We disagree. Marking the glass require about 0.2 work-hour, and surface of the gauge can create parallax required parts would cost $20, for a cost Accordingly, under the authority issues when viewing the avoidance per helicopter of $37 and a cost to U.S. delegated to me by the Administrator, ranges on the gauge, resulting in operators of $22,792. Based on these the FAA proposes to amend 14 CFR part erroneous readings. estimates, the total cost of this proposed 39 as follows: AD would be $80 per helicopter and FAA’s Determination $49,280 for the fleet. PART 39—AIRWORTHINESS We are proposing this SNPRM DIRECTIVES Authority for This Rulemaking because we evaluated all known ■ Title 49 of the United States Code 1. The authority citation for part 39 relevant information and determined continues to read as follows: that an unsafe condition is likely to specifies the FAA’s authority to issue exist or develop on other products of rules on aviation safety. Subtitle I, Authority: 49 U.S.C. 106(g), 40113, 44701. section 106, describes the authority of these same type designs. Certain § 39.13 [Amended] changes described above expand the the FAA Administrator. ‘‘Subtitle VII: ■ 2. Amend § 39.13 by adding the scope of the original NPRM (78 FR Aviation Programs,’’ describes in more following new airworthiness directive 34282, June 7, 2013). As a result, we detail the scope of the Agency’s (AD): have determined that it is necessary to authority. reopen the comment period to provide We are issuing this rulemaking under Bell Helicopter Textron Canada Limited additional opportunity for the public to the authority described in ‘‘Subtitle VII, (Bell): Docket No. FAA–2013–0489; comment on this SNPRM. Part A, Subpart III, Section 44701: Directorate Identifier 2008–SW–003–AD. General requirements.’’ Under that (a) Applicability Related Service Information section, Congress charges the FAA with This AD applies to the following Bell issued ASB No. 206L–05–134, promoting safe flight of civil aircraft in helicopters, certificated in any category: Revision A, dated April 9, 2007, which air commerce by prescribing regulations (1) Bell Model 206L–1 with an Engine describes procedures for installing a for practices, methods, and procedures Upgrade Kit Part Number (P/N) No. 206–706– placard on the instrument panel below the Administrator finds necessary for 520–101 installed;

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(2) Bell Model 206L–3, serial number (S/ the FAA, Office of the Regional Counsel, p.m., Monday through Friday, except N) 51001 through 51612, except those with Southwest Region, 2601 Meacham Blvd., Federal holidays. a Rolls-Royce 250–C20R engine installed Room 663, Fort Worth, Texas 76137. under Supplemental Type Certificate (STC) (2) The subject of this AD is addressed in Examining the AD Docket Transport Canada Civil Aviation (TCCA) AD No. SR00036SE; and You may examine the AD docket on (3) Bell Model 206L–4, S/N 52001 through No. CF–2005–28R1, dated June 14, 2007. You 52313, except those with a Rolls-Royce 250– may view the TCCA AD at http:// the Internet at http:// C20R engine installed under STC No. www.regulations.gov in Docket No. FAA– www.regulations.gov or in person at the SR00036SE. 2013–0489. Docket Operations Office between 9 a.m. and 5 p.m., Monday through (b) Unsafe Condition (h) Subject Friday, except Federal holidays. The AD This AD defines the unsafe condition as a Joint Aircraft Service Component (JASC) docket contains this proposed AD, the Code: 7250, Turbine Section. third stage turbine vibration, which could economic evaluation, any comments result in turbine failure, engine power loss, Issued in Fort Worth, Texas, on September received, and other information. The and subsequent loss of control of the 17, 2014. helicopter. street address for the Docket Operations Kim Smith, Office (telephone 800–647–5527) is in (c) Comments Due Date Directorate Manager, Rotorcraft Directorate, the ADDRESSES section. Comments will We must receive comments by December 2, Aircraft Certification Service. be available in the AD docket shortly 2014. [FR Doc. 2014–23582 Filed 10–2–14; 8:45 am] after receipt. (d) Compliance BILLING CODE 4910–13–P For service information identified in You are responsible for performing each this proposed AD, contact Kaman action required by this AD within the Aerospace Corporation, Old Windsor specified compliance time unless it has DEPARTMENT OF TRANSPORTATION Rd., P.O. Box 2, Bloomfield, CT 06002– already been accomplished prior to that time. 0002; telephone (860) 242–4461; fax Federal Aviation Administration (e) Required Actions (860) 243–7047; or at http:// www.kamanaero.com. You may review 14 CFR Part 39 Within 30 days: a copy of the referenced service (1) Install placard P/N 230–075–213–117, or equivalent, on the instrument panel [Docket No. FAA–2014–0758; Directorate information at the FAA, Office of the directly below the dual tachometer. Identifier 2013–SW–062–AD] Regional Counsel, Southwest Region, (2) Revise the Operating Limitations RIN 2120–AA64 2601 Meacham Blvd., Room 663, Fort section of the Rotorcraft Flight Manual (RFM) Worth Texas 76137. by inserting a copy of this AD into the RFM Airworthiness Directives; Kaman FOR FURTHER INFORMATION CONTACT: or by making pen and ink changes as follows: Aerospace Corporation (Kaman) Nicholas Faust, Aviation Safety (i) In the Power Plant section, beneath the Helicopters Power Turbine RPM header, add: Avoid Engineer, Boston Aircraft Certification Office, Engine & Propeller Directorate, continuous operations 71.8% to 91.5%. AGENCY: Federal Aviation (ii) In the Placards and Decals section, add: Administration (FAA), DOT. 12 New England Executive Park, AVOID CONT OPS 71.8% TO 91.5% N2’’ Burlington, Massachusetts 01803; ACTION: Notice of proposed rulemaking with the location identification ‘‘Location: telephone (781) 238–7763; email (NPRM). Instrument Panel. [email protected]. (f) Alternative Methods of Compliance SUMMARY: We propose to adopt a new SUPPLEMENTARY INFORMATION: (AMOCs) airworthiness directive (AD) for Kaman Comments Invited (1) The Manager, Safety Management Model K–1200 helicopters with certain Group, FAA, may approve AMOCs for this main rotor blades (MRB) installed. This We invite you to participate in this AD. Send your proposal to: James Blyn, proposed AD would require inspecting rulemaking by submitting written Aviation Safety Engineer, Regulations and each MRB for a crack or damage. This comments, data, or views. We also Policy Group, Rotorcraft Directorate, FAA, proposed AD is prompted by a report invite comments relating to the 2601 Meacham Blvd., Fort Worth, Texas that a crack was found on an MRB economic, environmental, energy, or 76137; telephone (817) 222–5110; email [email protected]. during a tear-down inspection. The federalism impacts that might result (2) For operations conducted under a 14 proposed actions are intended to detect from adopting the proposals in this CFR part 119 operating certificate or under a crack in the MRB, which could lead document. The most helpful comments 14 CFR part 91, subpart K, we suggest that to failure of the MRB and subsequent reference a specific portion of the you notify your principal inspector, or loss of control of the helicopter. proposal, explain the reason for any lacking a principal inspector, the manager of DATES: We must receive comments on recommended change, and include the local flight standards district office or this proposed AD by December 2, 2014. supporting data. To ensure the docket certificate holding district office before ADDRESSES: You may send comments by does not contain duplicate comments, operating any aircraft complying with this commenters should send only one copy AD through an AMOC. any of the following methods: • Federal eRulemaking Docket: Go to of written comments, or if comments are (g) Additional Information http://www.regulations.gov. Follow the filed electronically, commenters should (1) Bell Alert Service Bulletin No. 206L– online instructions for sending your submit only one time. 05–134, Revision A, dated April 9, 2007, comments electronically. We will file in the docket all which is not incorporated by reference, • Fax: 202–493–2251. comments that we receive, as well as a contains additional information about the • Mail: Send comments to the U.S. report summarizing each substantive subject of this AD. For service information Department of Transportation, Docket public contact with FAA personnel identified in this AD, contact Bell Helicopter concerning this proposed rulemaking. Textron Canada Limited, 12,800 Rue de Operations, M–30, West Building l’Avenir, Mirabel, Quebec J7J1R4; telephone Ground Floor, Room W12–140, 1200 Before acting on this proposal, we will (450) 437–2862 or (800) 363–8023; fax (450) New Jersey Avenue SE., Washington, consider all comments we receive on or 433–0272; or at http:// DC 20590–0001. before the closing date for comments. www.bellcustomer.com/files/. You may • Hand Delivery: Deliver to the We will consider comments filed after review a copy of the service information at ‘‘Mail’’ address between 9 a.m. and 5 the comment period has closed if it is

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possible to do so without incurring TIS. If there is a crack, wood split, void, For the reasons discussed, I certify expense or delay. We may change this or delamination, the proposed AD this proposed regulation: proposal in light of the comments we would require repairing or replacing the 1. Is not a ‘‘significant regulatory receive. MRB before further flight. The action’’ under Executive Order 12866; inspections and repairs required by the 2. Is not a ‘‘significant rule’’ under the Discussion proposed AD would be accomplished by DOT Regulatory Policies and Procedures We are proposing to adopt a new AD a method approved by the Manager of (44 FR 11034, February 26, 1979); for Kaman Model K–1200 helicopters the Boston Aircraft Certification Office. 3. Will not affect intrastate aviation in with an MRB, part number (P/N) Alaska to the extent that it justifies K911001–009, K911001–010, K911001– Costs of Compliance making a regulatory distinction; and 109, or K911001–110, installed. We We estimate that this proposed AD 4. Will not have a significant received reports that during x-ray and would affect 11 helicopters of U.S. economic impact, positive or negative, teardown inspections with the MRB Registry. on a substantial number of small entities removed from the helicopter, cracks are We estimate that operators may incur under the criteria of the Regulatory being found in the MRB spar. To detect the following costs in order to comply Flexibility Act. this unsafe condition, we are proposing with this proposed AD. At an average We prepared an economic evaluation requiring repetitive x-ray and visual labor cost of $85 per hour, inspecting of the estimated costs to comply with inspections of the MRB for a crack, each matched pair of main rotor blades this proposed AD and placed it in the wood split, void, or delamination at would require about 160 work-hours AD docket. intervals not exceeding 1,000 hours and required parts would cost about List of Subjects in 14 CFR Part 39 time-in-service (TIS). If there is a crack, $2,000, for a cost per MRB set of wood split, void, or delamination, the $15,600 and a cost per helicopter of Air transportation, Aircraft, Aviation proposed AD would require repairing or $31,200 per inspection cycle. If safety, Incorporation by Reference, replacing the MRB before further flight. required, repairing a cracked MRB Safety. The proposed AD would also require would require about 335 work-hours The Proposed Amendment and required parts would cost about that any inspection or repair procedure Accordingly, under the authority $15,000, for a cost per MRB of $43,475. performed in compliance with this AD delegated to me by the Administrator, If required, replacing a MRB set would receive prior approval from the Boston the FAA proposes to amend 14 CFR part require about 4 work-hours, and Aircraft Certification Office. The 39 as follows: proposed actions are intended to detect required parts would cost about a crack in the MRB, which could lead $495,000, for a cost per helicopter of PART 39—AIRWORTHINESS to failure of the MRB and subsequent $495,340. DIRECTIVES loss of control of the helicopter. Authority for This Rulemaking ■ 1. The authority citation for part 39 FAA’s Determination Title 49 of the United States Code continues to read as follows: specifies the FAA’s authority to issue We are proposing this AD because we Authority: 49 U.S.C. 106(g), 40113, 44701. evaluated all known relevant rules on aviation safety. Subtitle I, information and determined that an section 106, describes the authority of § 39.13 [Amended] unsafe condition exists and is likely to the FAA Administrator. ‘‘Subtitle VII: ■ 2. Amend § 39.13 by adding the exist or develop on other products of Aviation Programs,’’ describes in more following new airworthiness directive these same type designs. detail the scope of the Agency’s (AD): authority. Related Service Information We are issuing this rulemaking under Kaman Aerospace Corporation Helicopters: Docket No. FAA–2014–0758; Directorate We reviewed Kaman Maintenance the authority described in ‘‘Subtitle VII, Identifier 2013–SW–062–AD. Manual 04–00–00, Continued Part A, Subpart III, Section 44701: Airworthiness, Revision 31, dated General requirements.’’ Under that (a) Applicability August 1, 2013, which establishes the section, Congress charges the FAA with This AD applies to Kaman Aerospace airworthiness limitations for the Model promoting safe flight of civil aircraft in Incorporated (Kaman) Model K–1200 K–1200 helicopter. The airworthiness air commerce by prescribing regulations helicopters with a main rotor blade (MRB) for practices, methods, and procedures part number K911001–009, K911001–010, limitations establish an MRB life limit K911001–109, or K911001–110 installed, of 8,000 hours TIS and also establish a the Administrator finds necessary for certificated in any category. recurring 1,000 hour Rotor Blade Spar safety in air commerce. This regulation Inspection for each MRB with 3,000 or is within the scope of that authority (b) Unsafe Condition more hours TIS. because it addresses an unsafe condition This AD defines the unsafe condition as a We also reviewed Kaman that is likely to exist or develop on crack in an MRB, which could lead to failure Maintenance Manual 05–20–06, 1,000 products identified in this rulemaking of the MRB and subsequent loss of control of Hour Rotor Blade Spar Inspection, action. the helicopter. Revision 31, dated August 1, 2013, (c) Comments Due Date Regulatory Findings which specifies returning each MRB to We must receive comments by December 2, Kaman every 1,000 hours for inspection We determined that this proposed AD 2014. after the MRB accumulates 3,000 hours would not have federalism implications (d) Compliance TIS. under Executive Order 13132. This proposed AD would not have a You are responsible for performing each Proposed AD Requirements substantial direct effect on the States, on action required by this AD within the This proposed AD would require the relationship between the national specified compliance time unless it has already been accomplished prior to that time. performing repetitive X-Ray and visual Government and the States, or on the inspections of each wooden MRB for a distribution of power and (e) Required Actions crack, wood split, void, or delamination responsibilities among the various (1) Before the MRB reaches 3,000 hours at intervals not exceeding 1,000 hours levels of government. time-in-service (TIS) or within 50 hours TIS,

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whichever occurs later, and thereafter at DEPARTMENT OF HEALTH AND DEPARTMENT OF THE TREASURY intervals not exceeding 1,000 hours TIS: HUMAN SERVICES (i) X-Ray inspect each MRB between 31 CFR Part 1 station (STA) 30 and 289 for a crack, a wood Food and Drug Administration split, a void, and delamination. RIN 1505–AC43 (ii) Using a 10× or higher power magnifying glass, inspect each spar plank 21 CFR Part 179 Privacy Act, Implementation between STA 33 and STA 78 for a wood split AGENCY: Departmental Offices, Treasury. or a crack, and inspect each spar plank to [Docket No. FDA–2014–F–1370] plank glueline for a void or delamination. ACTION: Proposed rule. (2) If there is a crack, wood split, void, or Casa de Mesquite LLC; Filing of Food delamination within maximum repair SUMMARY: In accordance with the damage limits in an MRB, before further Additive Petition requirements of the Privacy Act of 1974, flight, repair the MRB. If there is a crack, as amended, 5 U.S.C. 552a, the wood split, void, or delamination exceeding AGENCY: Food and Drug Administration, Department of the Treasury gives notice maximum repair damage limits in an MRB, HHS. of a proposed amendment to update its before further flight, replace the MRB with an Privacy Act regulations, and to add an airworthy MRB. ACTION: Notice of petition. (3) Each inspection and repair procedure exemption from certain provisions of required for compliance with Paragraphs SUMMARY: The Food and Drug the Privacy Act for a system of records (e)(1) and (e)(2) of this AD must be Administration (FDA or we) is related to the Office of Intelligence and accomplished by a method approved by the announcing that we have filed a Analysis. Manager, Boston Aircraft Certification Office petition, submitted by Casa de Mesquite DATES: Comments must be received no (ACO). For a repair method to be approved later than November 3, 2014. by the Manager, Boston ACO, as required by LLC, proposing that the food additive this AD, the Manager’s approval letter must regulations be amended to provide for ADDRESSES: Written comments should specifically refer to this AD. the safe use of ionizing radiation to treat be sent to the Director Intelligence mesquite bean flour. Information Systems, Office of (f) Alternative Methods of Compliance Intelligence and Analysis, Department (AMOC) DATES: The food additive petition was of the Treasury, 1500 Pennsylvania Ave. (1) The Manager, Boston ACO, FAA, may filed on August 11, 2014. NW., Washington, DC 20220. The approve AMOCs for this AD. Send your Department will make such comments proposal to: Nicholas Faust, Aviation Safety FOR FURTHER INFORMATION CONTACT: Engineer, Boston Aircraft Certification Office, Teresa A. Croce, Center for Food Safety available for public inspection and Engine & Propeller Directorate, 12 New and Applied Nutrition (HFS–265), Food copying in the Department’s Library, Room 1020, Annex Building, 1500 England Executive Park, Burlington, and Drug Administration, 5100 Paint Pennsylvania Ave. NW., Washington, Massachusetts 01803; telephone (781) 238– Branch Pkwy., College Park, MD 20740– 7763; email [email protected]. DC 20220, on official business days 3835, 240–402–1281. (2) For operations conducted under a 14 between the hours of 10 a.m. and 5 p.m. CFR part 119 operating certificate or under SUPPLEMENTARY INFORMATION: Under the Eastern Standard Time. You must make 14 CFR part 91, subpart K, we suggest that Federal Food, Drug, and Cosmetic Act an appointment to inspect comments by you notify your principal inspector, or telephoning (202) 622–0990 (not a toll lacking a principal inspector, the manager of (section 409(b)(5) (21 U.S.C. 348(b)(5))), the local flight standards district office or we are giving notice that we have filed free number). You may also submit certificate holding district office before a food additive petition (FAP 4M4807), comments through the Federal operating any aircraft complying with this submitted by Casa de Mesquite LLC, rulemaking portal at http:// AD through an AMOC. 10021 Pacheco Pass Hwy., Hollister, CA www.regulations.gov (follow the instructions for submitting comments). (g) Additional Information 95023. The petition proposes to amend All comments, including attachments Kaman Aerospace Corporation the food additive regulations in § 179.26 (21 CFR 179.26), Ionizing radiation for and other supporting materials, received Maintenance Manual 04–00–00, Continued are part of the public record and subject Airworthiness, Revision 31, dated August 1, the treatment of food, to provide for the to public disclosure. You should submit 2013, and Kaman Aerospace Corporation safe use of ionizing radiation to reduce only information that you wish to make Maintenance Manual 05–20–06, 1,000 Hour the levels of food-borne pathogens in available publicly. Rotor Blade Spar Inspection, Revision 31, mesquite bean flour. dated August 1, 2013, which are not FOR FURTHER INFORMATION CONTACT: incorporated by reference, contain additional We have determined under 21 CFR Director Intelligence Information information about the subject of this AD. You 25.32(j) that this action is of a type that Systems, Office of Intelligence and may review a copy of this information at the does not individually or cumulatively Analysis, Department of the Treasury, at FAA, Office of the Regional Counsel, have a significant effect on the human (202) 622–1826, facsimile (202) 622– Southwest Region, 2601 Meacham Blvd., environment. Therefore, neither an Room 663, Fort Worth Texas 76137. For 1829, or email [email protected]. information on the availability of this environmental assessment nor an SUPPLEMENTARY INFORMATION: The material at the FAA, call (817) 222–5110. environmental impact statement is Department is establishing ‘‘Treasury/ required. (h) Subject DO. 411—Intelligence Enterprise Files,’’ Dated: September 29, 2014. maintained by the Office of Intelligence Joint Aircraft Service Component (JASC) and Analysis. Code: 6210: Main Rotor MRB. Dennis M. Keefe, Under 5 U.S.C. 552a(k)(1), the head of Issued in Fort Worth, Texas, on September Director, Office of Food Additive Safety, an agency may promulgate rules to 17, 2014. Center for Food Safety and Applied Nutrition. exempt a system of records from certain Kim Smith, [FR Doc. 2014–23597 Filed 10–2–14; 8:45 am] provisions of 5 U.S.C. 552a if the system Directorate Manager, Rotorcraft Directorate, BILLING CODE 4164–01–P of records is subject to the provisions of Aircraft Certification Service. 5 U.S.C. 552(b)(1), which regards [FR Doc. 2014–23588 Filed 10–2–14; 8:45 am] matters specifically authorized under BILLING CODE 4910–13–P criteria established by an Executive

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order to be kept secret in the interest of agency. Access to the records would authorities relevant to the intelligence national defense or foreign policy and present a serious impediment to efforts responsibilities of the Department of the are in fact properly classified pursuant to protect national security interests by Treasury. to such Executive order. permitting the individual who is the The Department of the Treasury will To the extent that records in this subject of a record to learn whether they publish separately in the Federal system of records contain information have been identified as suspects or Register a notice of a proposed system subject to the provisions of 5 U.S.C. subjects of a national security-related of records related to the records 552(b)(1), the Department of the investigation. Access to such knowledge maintained by OIA entitled ‘‘Treasury/ Treasury proposes to exempt those would impair the Department’s ability DO. 411—Intelligence Enterprise Files.’’ records from the following provisions of to carry out its mission, since As required by Executive Order the Privacy Act pursuant to 5 U.S.C. individuals could take steps to impede 12866, it has been determined that this 552a(k)(1): the investigation and avoid detection or rule is not a significant regulatory (1) From subsection 5 U.S.C. apprehension, including the steps action, and therefore, does not require a 552a(c)(3) (Accounting for Disclosures) described in paragraph (1)(i)–(vi) of this regulatory impact analysis. Pursuant to because release of the accounting of section. Amendment of the records the requirements of the Regulatory disclosures of the records in this system would interfere with ongoing Flexibility Act (RFA), 5 U.S.C. 601–612, could alert individuals whether they investigations and law enforcement it is hereby certified that this rule will have been identified as a national activities and impose an impossible not have significant economic impact on security threat or the subject of an administrative burden by requiring a substantial number of small entities. investigation related to the national investigations to be continuously The term ‘‘small entity’’ is defined to security interests of the United States, reinvestigated. The information have the same meaning as the terms including threats to the national contained in the system may also ‘‘small business,’’ ‘‘small organization,’’ security, foreign policy, or economy of include classified information, the and ‘‘small governmental jurisdiction’’ the United States, to the existence of the release of which would pose a threat to as defined in the RFA. investigation and reveal investigative the national security, foreign policy, or The proposed regulation, issued interest on the part of the Department of economy of the United States. In under section 552a(k) of the Privacy the Treasury as well as the recipient addition, permitting access and Act, is to exempt certain information agency. Disclosure of the accounting amendment to such information could maintained by the Department in the would present a serious impediment to disclose sensitive security information above system of records from efforts to protect national security that could be detrimental to the notification, access, and amendment of interests by giving individuals an Department of the Treasury. a record by individuals. Inasmuch as the opportunity to learn whether they have (3) From subsection 5 U.S.C. Privacy Act rights are personal, small been identified as suspects or subjects of 552a(e)(1), (Relevance and Necessity of entities, as defined in the RFA, are not a national security-related investigation. Information) because in the course of its provided rights under the Privacy Act As further described in the following operations, OIA must be able to review and are outside the scope of this paragraph, access to such knowledge information from a variety of sources. regulation. would impair the Department’s ability What information is relevant and to carry out its mission, since necessary may not always be apparent List of Subjects in 31 CFR Part 1 individuals could: until after the evaluation is completed. Privacy. (i) Take steps to avoid detection; In the interests of national security, it is Part 1, subpart C of title 31 of the (ii) Inform associates that an appropriate to include a broad range of Code of Federal Regulations is proposed investigation is in progress; information that may aid in identifying to be amended as follows: (iii) Learn the nature of the and assessing the nature and scope of investigation; terrorist or other threats to the United PART 1—[AMENDED] (iv) Learn the scope of the States. Additionally, investigations into investigation; potential violations of federal law, the ■ 1. The authority citation for part 1 (v) Begin, continue, or resume accuracy of information obtained or continues to read as follows: conduct that may pose a threat to introduced, occasionally may be unclear Authority: 5 U.S.C. 301 and 31 U.S.C. 321. national security upon inferring they or the information may not be strictly Subpart A also issued under 5 U.S.C. 552, as may not be part of an investigation relevant or necessary to a specific amended. Subpart C also issued under 5 because their records were not investigation. In the interests of effective U.S.C. 552a. disclosed; or enforcement of federal laws, it is ■ 2. Section 1.36 is amended in (vi) Destroy information relevant to appropriate to retain all information that paragraph (e)(1)(i) by adding an entry the national security investigation. may aid in establishing patterns of for ‘‘DO .411—Intelligence Enterprise (2) From subsection 5 U.S.C. suspicious or unlawful activity. Files’’ to the table in numerical order. 552a(d)(1), (d)(2), (d)(3), and (d)(4), (4) From subsection 5 U.S.C. (Access to Records) because access to a 552a(e)(4)(G), (H), and (I) (Agency § 1.36 Systems exempt in whole or in part portion of the records contained in this Requirements), and 5 U.S.C. 552a(f), from provisions of 5 U.S.C. 522a and this system of records could inform because portions of this system are part. individuals whether they have been exempt from the access and amendment * * * * * identified as a national security threat or provisions of subsection (d). The reason (e) * * * the subject of an investigation related to for invoking the exemption is to protect (1) * * * the national security interests of the material authorized to be kept secret in (i) * * * United States, including threats to the the interest of national security, which national security, foreign policy, or includes threats to the national security, Number System name economy of the United States, to the foreign policy, or economy of the United existence of the investigation and reveal States, pursuant to Executive Orders ***** investigative interest on the part of the 12968, 13526, successor or prior DO .411 ...... Intelligence Enterprise Files. Department of the Treasury or another Executive Orders, and other legal

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Dated: September 11, 2014. Hampton Roads, Coast Guard; telephone change the rule based on your Helen Goff Foster, (757) 668–5580, email comments. [email protected]. If Deputy Assistant Secretary for Privacy, 2. Viewing Comments and Documents Transparency, and Records. you have questions on viewing or [FR Doc. 2014–23012 Filed 10–2–14; 8:45 am] submitting material to the docket, call To view comments, as well as BILLING CODE 4810–25–P Cheryl Collins, Program Manager, documents mentioned in this preamble Docket Operations, telephone (202) as being available in the docket, go to 366–9826. http://www.regulations.gov, type the docket number [USCG–2014–0834] in DEPARTMENT OF HOMELAND SUPPLEMENTARY INFORMATION: the ‘‘SEARCH’’ box and click SECURITY Table of Acronyms ‘‘SEARCH.’’ Click on Open Docket Coast Guard DHS Department of Homeland Security Folder on the line associated with this FR Federal Register rulemaking. You may also visit the 33 CFR Part 165 NPRM Notice of Proposed Rulemaking Docket Management Facility in Room A. Public Participation and Request for W12–140 on the ground floor of the [Docket Number USCG–2014–0834] Comments Department of Transportation West RIN 1625–AA00 Building, 1200 New Jersey Avenue SE., We encourage you to participate in Washington, DC 20590, between 9 a.m. this rulemaking by submitting Safety Zone, Chesapeake Bay; Cape and 5 p.m., Monday through Friday, comments and related materials. All Charles, VA except Federal holidays. comments received will be posted AGENCY: Coast Guard, DHS. without change to http:// 3. Privacy Act ACTION: Notice of proposed rulemaking. www.regulations.gov and will include Anyone can search the electronic any personal information you have form of comments received into any of SUMMARY: The Coast Guard proposes to provided. our dockets by the name of the establish a safety zone on the navigable 1. Submitting Comments individual submitting the comment (or waters of the Chesapeake Bay in the signing the comment, if submitted on vicinity of Bayshore Road in the Cape If you submit a comment, please behalf of an association, business, labor Charles Harbor, Cape Charles, VA. This include the docket number for this union, etc.). You may review a Privacy proposed safety zone would restrict rulemaking, indicate the specific section Act notice regarding our public dockets vessel movement in the specified area of this document to which each in the January 17, 2008, issue of the during the Town of Cape Charles New comment applies, and provide a reason Federal Register (73 FR 3316). Years Eve fireworks display between 10 for each suggestion or recommendation. p.m. and 10:30 p.m. on December 31, You may submit your comments and 4. Public Meeting 2014. This action is necessary to material online at http:// We do not now plan to hold a public provide for the safety of life and www.regulations.gov, or by fax, mail, or meeting. However, you may submit a property on the surrounding navigable hand delivery, but please use only one request for one at least 15 days prior to waters during the fireworks displays. of these means. If you submit a the end of the comment period specified comment online, it will be considered DATES: Comments and related material in DATES, using one of the methods must be received by the Coast Guard on received by the Coast Guard when you specified under ADDRESSES. Please or before November 3, 2014. successfully transmit the comment. If explain why you believe a public you fax, hand deliver, or mail your meeting would be beneficial. If we ADDRESSES: You may submit comments comment, it will be considered as determine that a public meeting would identified by docket number using any having been received by the Coast aid this rulemaking, we will hold one at one of the following methods: Guard when it is received at the Docket a time and place announced by a later (1) Federal eRulemaking Portal: Management Facility. We recommend notice in the Federal Register. http://www.regulations.gov. that you include your name and a (2) Fax: 202–493–2251. mailing address, an email address, or a B. Regulatory History and Information (3) Mail or Delivery: Docket telephone number in the body of your The town of Cape Charles has not Management Facility (M–30), U.S. document so that we can contact you if held a fireworks show for the New Year Department of Transportation, West we have questions regarding your in the past. This same location is used Building Ground Floor, Room W12–140, submission. for other fireworks displays during the 1200 New Jersey Avenue SE., To submit your comment online, go to year that are already in 33 CFR 165.506. Washington, DC 20590–0001. Deliveries www.regulations.gov, type the docket accepted between 9 a.m. and 5 p.m., number [USCG–2014–0834] in the C. Basis and Purpose Monday through Friday, except federal ‘‘SEARCH’’ box and click ‘‘SEARCH.’’ The legal basis for the rule is the holidays. The telephone number is 202– Click on ‘‘Submit a Comment’’ on the Coast Guard’s authority to establish 366–9329. line associated with this rulemaking. regulated navigation areas and other See the ‘‘Public Participation and If you submit your comments by mail limited access areas: 33 U.S.C. 1231; 46 Request for Comments’’ portion of the or hand delivery, submit them in an U.S.C. Chapter 701, 3306, 3703; 50 SUPPLEMENTARY INFORMATION section unbound format, no larger than 81⁄2 by U.S.C. 191, 195; 33 CFR 1.05–1, 6.04–1, below for further instructions on 11 inches, suitable for copying and 6.04–6, 160.5; Public Law 107–295, 116 submitting comments. To avoid electronic filing. If you submit Stat. 2064; Department of Homeland duplication, please use only one of comments by mail and would like to Security Delegation No. 0170.1. these three methods. know that they reached the Facility, Spectator vessels may gather nearby FOR FURTHER INFORMATION CONTACT: If please enclose a stamped, self-addressed to view the fireworks display. Due to the you have questions on this rule, call or postcard or envelope. We will consider need for vessel control during the email LCDR Gregory Knoll, Waterways all comments and material received fireworks display, vessel traffic will be Management Division Chief, Sector during the comment period and may temporarily restricted to provide for the

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safety of participants, spectators and limited area, and will be well publicized 4. Collection of Information transiting vessels. Under provisions of to allow mariners to make alternative This proposed rule will not call for a 33 CFR 165.506, during the enforcement plans for transiting the affected area. new collection of information under the period, vessels may not enter the 2. Impact on Small Entities Paperwork Reduction Act of 1995 (44 regulated area unless they receive U.S.C. 3501–3520). permission from the Coast Guard Patrol The Regulatory Flexibility Act of 1980 Commander. (RFA), 5 U.S.C. 601–612, as amended, 5. Federalism D. Discussion of the Proposed Rule requires federal agencies to consider the A rule has implications for federalism potential impact of regulations on small under Executive Order 13132, The Captain of the Port of Hampton entities during rulemaking. The term Federalism, if it has a substantial direct Roads proposes to establish a safety ‘‘small entities’’ comprises small effect on the States, on the relationship zone on specified waters of the businesses, not-for-profit organizations between the national government and Chesapeake Bay within a 700 foot radius that are independently owned and the States, or on the distribution of of the position: 37°–15′–47″ N /0 076°– operated and are not dominant in their power and responsibilities among the 01′–29″ W (NAD 1983), in the vicinity fields, and governmental jurisdictions various levels of government. We have of Bayshore Road in the Cape Charles with populations of less than 50,000. analyzed this proposed rule under that Harbor, Cape Charles, Virginia. This The Coast Guard certifies under 5 U.S.C. Order and determined that this rule safety zone will be enforced on 605(b) that this proposed rule will not does not have implications for December 31, 2014 between the hours of have a significant economic impact on federalism. 10 p.m. and 10:30 p.m. Access to the a substantial number of small entities. safety zone will be restricted during the 6. Protest Activities This proposed rule will affect the specified date and time. The Coast Guard respects the First following entities, some of which might Except for vessels authorized by the Amendment rights of protesters. be small entities: The owners or Captain of the Port or his Protesters are asked to contact the operators of vessels intending to transit Representative, no person or vessel may person listed in the FOR FURTHER or anchor in waters of the Chesapeake enter or remain in the safety zone INFORMATION CONTACT section to Bay during the outlined timeframe. during the time frame listed. The coordinate protest activities so that your Captain of the Port will give notice of This safety zone will not have a message can be received without the enforcement of the safety zone by all significant economic impact on a jeopardizing the safety or security of appropriate means to provide the widest substantial number of small entities for people, places or vessels. dissemination of notice among the the following reasons: (i) The safety affected segments of the public. This zone will only be in place for a limited 7. Unfunded Mandates Reform Act will include publication in the Local duration, and (ii) before the enforcement The Unfunded Mandates Reform Act Notice to Mariners and Marine period, maritime advisories will be of 1995 (2 U.S.C. 1531–1538) requires Information Broadcasts. issued allowing mariners to adjust their Federal agencies to assess the effects of E. Regulatory Analyses plans accordingly. their discretionary regulatory actions. In particular, the Act addresses actions 3. Assistance for Small Entities We developed this proposed rule after that may result in the expenditure by a considering numerous statutes and Under section 213(a) of the Small State, local, or tribal government, in the executive orders related to rulemaking. Business Regulatory Enforcement aggregate, or by the private sector of Below we summarize our analyses Fairness Act of 1996 (Pub. L. 104–121), $100,000,000 (adjusted for inflation) or based on these statutes and executive we want to assist small entities in more in any one year. Though this orders. understanding this proposed rule. If the proposed rule will not result in such an 1. Regulatory Planning and Review rule would affect your small business, expenditure, we do discuss the effects of This proposed rule is not a significant organization, or governmental this rule elsewhere in this preamble. regulatory action under section 3(f) of jurisdiction and you have questions 8. Taking of Private Property Executive Order 12866, Regulatory concerning its provisions or options for compliance, please contact the person This proposed rule will not cause a Planning and Review, as supplemented taking of private property or otherwise by Executive Order 13563, Improving listed in the FOR FURTHER INFORMATION CONTACT, above. have taking implications under Regulation and Regulatory Review, and Executive Order 12630, Governmental does not require an assessment of Small businesses may send comments Actions and Interference with potential costs and benefits under on the actions of Federal employees Constitutionally Protected Property section 6(a)(3) of Executive Order 12866 who enforce, or otherwise determine Rights. or under section 1 of Executive Order compliance with, Federal regulations to 13563. The Office of Management and the Small Business and Agriculture 9. Civil Justice Reform Budget has not reviewed it under those Regulatory Enforcement Ombudsman This proposed rule meets applicable Orders. The primary impact of these and the Regional Small Business standards in sections 3(a) and 3(b)(2) of regulations will be on vessels wishing to Regulatory Fairness Boards. The Executive Order 12988, Civil Justice transit the affected waterways during Ombudsman evaluates these actions Reform, to minimize litigation, the safety zone on the Chesapeake Bay annually and rates each agency’s eliminate ambiguity, and reduce in the vicinity of Bayshore Road in the responsiveness to small business. If you burden. Cape Charles Harbor, Cape Charles, VA wish to comment on actions by from 10 p.m. until 10:30 p.m. on employees of the Coast Guard, call 1– 10. Protection of Children December 31, 2014. Although these 888–REG–FAIR (1–888–734–3247). The We have analyzed this proposed rule regulations prevent traffic from Coast Guard will not retaliate against under Executive Order 13045, transiting a portion of the Chesapeake small entities that question or complain Protection of Children from Bay during this event, that restriction is about this rule or any policy or action Environmental Health Risks and Safety limited in duration, affects only a of the Coast Guard. Risks. This rule is not an economically

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significant rule and does not create an PART 165—REGULATED NAVIGATION ENVIRONMENTAL PROTECTION environmental risk to health or risk to AREAS AND LIMITED ACCESS AREAS AGENCY safety that may disproportionately affect children. ■ 1. The authority citation for part 165 40 CFR Parts 52 and 81 continues to read as follows: 11. Indian Tribal Governments [EPA–R03–OAR–2014–0387; FRL–9917–40– Authority: 33 U.S.C. 1231; 46 U.S.C. Region 3] This proposed rule does not have Chapter 701, 3306, 3703; 50 U.S.C. 191, 195; tribal implications under Executive 33 CFR 1.05–1, 6.04–1, 6.04–6, and 160.5; Approval and Promulgation of Air Order 13175, Consultation and Pub. L. 107–295, 116 Stat. 2064; Department Quality Implementation Plans; Coordination with Indian Tribal of Homeland Security Delegation No. 0170.1. Maryland; Redesignation Request and Governments, because it does not have ■ 2. Add § 165.T05–0834 to read as Associated Maintenance Plan for the a substantial direct effect on one or follows: Baltimore, Maryland Nonattainment more Indian tribes, on the relationship Area for the 1997 Annual Fine between the Federal Government and § 165.T05–0834 Safety Zone, Chesapeake Particulate Matter Standard Indian tribes, or on the distribution of Bay; Cape Charles, VA. AGENCY: Environmental Protection power and responsibilities between the (a) Definitions. For the purposes of Agency (EPA). Federal Government and Indian tribes. this section, Captain of the Port means the Commander, Sector Hampton Roads. ACTION: Proposed rule. 12. Energy Effects Representative means any Coast SUMMARY: The Environmental Protection This proposed rule is not a Guard commissioned, warrant or petty Agency (EPA) is proposing to approve ‘‘significant energy action’’ under officer who has been authorized to act the State of Maryland’s request to Executive Order 13211, Actions on the behalf of the Captain of the Port redesignate to attainment the Baltimore, Concerning Regulations That (b) Location. The following area is a Maryland Nonattainment Area Significantly Affect Energy Supply, proposed safety zone: Specified waters (Baltimore Area or Area) for the 1997 Distribution, or Use. of the Captain of the Port Sector annual fine particulate matter (PM2.5) 13. Technical Standards Hampton Roads zone, as defined in 33 national ambient air quality standard CFR 3.25–10, in the Chesapeake Bay in (NAAQS). The EPA has determined that This proposed rule does not use the vicinity of Bayshore Road in the the Baltimore Area attained the standard technical standards. Therefore, we did Cape Charles Bay, Cape Charles, VA all and is proposing to determine that it ° not consider the use of voluntary waters within a 700 foot radius of 37 – continues to attain the standard. In ′ ″ ° ′ ″ consensus standards. 15 –47 N/076 –01 –29 W (NAD 1983). addition, EPA is proposing to approve, 14. Environment (c) Regulations. as a revision to the Maryland State (1) In accordance with the general Implementation Plan (SIP), the We have analyzed this proposed rule regulations in 165.23 of this part, entry Baltimore Area maintenance plan to under Department of Homeland into this zone is prohibited unless show maintenance of the 1997 annual Security Management Directive 023–01 authorized by the Captain of the Port, PM2.5 NAAQS through 2025 for the and Commandant Instruction Hampton Roads or his designated Area. The maintenance plan includes M16475.lD, which guide the Coast representatives. the 2017 and 2025 PM2.5 and nitrogen Guard in complying with the National (2) The operator of any vessel in the oxides (NOX) mobile vehicle emissions Environmental Policy Act of 1969 immediate vicinity of this safety zone budgets (MVEBs) for the Baltimore Area (NEPA) (42 U.S.C. 4321–4370f), and shall: for the 1997 annual PM2.5 NAAQS, have determined that this action is one (i) Contact on scene contracting which EPA is proposing to approve for of a category of actions that do not vessels via VHF channel 13 and 16 for transportation conformity purposes. individually or cumulatively have a passage instructions. These actions are being taken under the significant effect on the human (ii) If on scene proceed as directed by Clean Air Act (CAA). environment. This proposed rule any commissioned, warrant or petty DATES: Written comments must be involves the establishment of a safety officer on shore or on board a vessel that received on or before November 3, 2014. zone. This proposed rule is categorically is displaying a U.S. Coast Guard Ensign. ADDRESSES: excluded from further review under Submit your comments, (3) The Captain of the Port, Hampton paragraph 34–g of Figure 2–1 of the identified by Docket ID Number EPA– Roads can be reached through the Sector Commandant Instruction. An R03–OAR–2014–0387 by one of the Duty Officer at Sector Hampton Roads environmental analysis checklist following methods: in Portsmouth, Virginia at telephone A. www.regulations.gov. Follow the supporting this determination and a number (757) 668–5555. on-line instructions for submitting Categorical Exclusion Determination are comments. available in the docket where indicated (4) The Coast Guard Representatives enforcing the safety zone can be B. Email: [email protected]. under ADDRESSES. We seek any C. Mail: EPA–R03–OAR–2014–0387, comments or information that may lead contacted on VHF–FM marine band radio channel 13 (165.65Mhz) and Cristina Fernandez, Associate Director, to the discovery of a significant Office of Air Program Planning, environmental impact from this rule. channel 16 (156.8 Mhz). (d) Enforcement Period: This section Mailcode 3AP30, U.S. Environmental List of Subjects in 33 CFR Part 165 will be enforced from 10 p.m. until Protection Agency, Region III, 1650 10:30 p.m. on December 31, 2014. Arch Street, Philadelphia, Pennsylvania Harbors, Marine safety, Navigation 19103. (water), Reporting and recordkeeping Dated: September 16, 2014. D. Hand Delivery: At the previously- requirements, Security measures, Christopher S. Keane, listed EPA Region III address. Such Waterways. Captain, U.S. Coast Guard, Captain of the deliveries are only accepted during the For the reasons discussed in the Port Hampton Roads. Docket’s normal hours of operation, and preamble, the Coast Guard proposes to [FR Doc. 2014–23650 Filed 10–2–14; 8:45 am] special arrangements should be made amend 33 CFR part 165 as follows: BILLING CODE 9110–04–P for deliveries of boxed information.

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Instructions: Direct your comments to Table of Contents attained the 1997 annual PM2.5 NAAQS, Docket ID No. EPA–R03–OAR–2014– I. Background and that the Area attained the NAAQS 0387. EPA’s policy is that all comments II. EPA’s Requirements by the statutory attainment date of April received will be included in the public A. Criteria for Redesignation to Attainment 5, 2010. Pursuant to 40 CFR 51.1004(c) docket without change, and may be B. Requirements of a Maintenance Plan and based on the determination of made available online at III. Summary of Proposed Actions attainment, the requirements for the www.regulations.gov, including any IV. Effects of Recent Court Decisions on Baltimore Area to submit an attainment personal information provided, unless Proposed Actions demonstration and associated the comment includes information A. Effect of the Supreme Court and D.C. reasonably available control measures Circuit Court’s Decisions on EPA’s (RACM), a reasonable further progress claimed to be Confidential Business CSAPR Information (CBI) or other information B. Effect of the January 4, 2013 D.C. Circuit (RFP) plan, contingency measures, and other planning SIP revisions related to whose disclosure is restricted by statute. Court Decision Regarding the PM2.5 Do not submit information that you Implementation under Subpart 4 of Part the attainment of the 1997 annual PM2.5 consider to be CBI or otherwise D of Title I of the CAA NAAQS were suspended until such protected through www.regulations.gov V. EPA’s Analysis of Maryland’s SIP time as: (1) The Area is redesignated to or email. The www.regulations.gov Web Submittal attainment for the standard, at which site is an ‘‘anonymous access’’ system, A. Redesignation Request time the requirements no longer apply which means EPA will not know your B. Maintenance Plan or (2) EPA determines that the Area has C. Transportation Conformity again violated the standard, at which identity or contact information unless VI. Proposed Actions you provide it in the body of your VII. Statutory and Executive Order Reviews time such plans are required to be comment. If you send an email submitted. comment directly to EPA without going I. Background On December 12, 2013, the State of through www.regulations.gov, your The first air quality standards for Maryland, through the Maryland email address will be automatically PM2.5 were established on July 18, 1997 Department of the Environment (MDE), captured and included as part of the (62 FR 38652). EPA promulgated an formally submitted a request to comment that is placed in the public annual standard at a level of 15 redesignate the Baltimore Area from docket and made available on the micrograms per cubic meter (mg/m3), nonattainment to attainment for the Internet. If you submit an electronic based on a three-year average of annual 1997 annual PM2.5 NAAQS. comment, EPA recommends that you mean PM2.5 concentrations (the 1997 Concurrently, MDE submitted a include your name and other contact annual PM2.5 standard). In the same maintenance plan for the Area as a SIP information in the body of your rulemaking, EPA promulgated a 24-hour revision to ensure continued attainment comment and with any disk or CD–ROM standard of 65 mg/m3 based on a three- throughout the Area over the next 10 you submit. If EPA cannot read your year average of the 98th percentile of 24- years. The maintenance plan includes comment due to technical difficulties hour concentrations. the 2017 and 2025 PM2.5 and NOX and cannot contact you for clarification, On January 5, 2005 (70 FR 944, 1014), MVEBs used for transportation EPA may not be able to consider your EPA published air quality area conformity purposes for the Baltimore comment. Electronic files should avoid designations for the 1997 PM2.5 NAAQS. Area for the 1997 annual PM2.5 NAAQS. the use of special characters, any form In that rulemaking action, EPA II. EPA’s Requirements of encryption, and be free of any defects designated the Baltimore Area as or viruses. nonattainment for the 1997 annual A. Criteria for Redesignation to Docket: All documents in the PM2.5 NAAQS. The Baltimore Area is Attainment electronic docket are listed in the comprised of the City of Baltimore, and The CAA provides the requirements www.regulations.gov index. Although Anne Arundel, Baltimore, Carroll, for redesignating a nonattainment area listed in the index, some information is Harford, Howard, and Queen Anne to attainment. Specifically, section not publicly available, i.e., CBI or other Counties. See 40 CFR 81.321. On October 17, 2006 (71 FR 61144), 107(d)(3)(E) of the CAA allows for information whose disclosure is EPA retained the annual average redesignation providing that: (1) EPA restricted by statute. Certain other standard at 15 mg/m3 but revised the 24- determines that the area has attained the material, such as copyrighted material, hour standard to 35 mg/m3, based again applicable NAAQS; (2) EPA has fully is not placed on the Internet and will be on the three-year average of the 98th approved the applicable publicly available only in hard copy percentile of the 24-hour concentrations implementation plan for the area under form. Publicly available docket (the 2006 24-hour PM standard). On section 110(k) of the CAA; (3) EPA materials are available either 2.5 November 13, 2009 (74 FR 58688), EPA determines that the improvement in air electronically in www.regulations.gov or published designations for the 2006 24- quality is due to permanent and in hard copy during normal business hour PM standard, which became enforceable reductions in emissions hours at the Air Protection Division, 2.5 effective on December 14, 2009. In that resulting from implementation of the U.S. Environmental Protection Agency, rulemaking action, EPA designated the applicable SIP and applicable Federal Region III, 1650 Arch Street, Baltimore Area as attainment for the air pollution control regulations and Philadelphia, Pennsylvania 19103. 2006 24-hour PM NAAQS. See 74 FR other permanent and enforceable Copies of the State submittal are 2.5 58737 and 40 CFR 81.321. Since the reductions; (4) EPA has fully approved available at the Maryland Department of Baltimore Area is designated a maintenance plan for the area as the Environment, Air and Radiation nonattainment for the annual NAAQS meeting the requirements of section Management Administration, 1800 promulgated in 1997, today’s proposed 175A of the CAA; and, (5) the state Washington Boulevard, Baltimore, rulemaking action addresses the containing such area has met all Maryland 21230. redesignation to attainment only for this requirements applicable to the area FOR FURTHER INFORMATION CONTACT: standard. under section 110 and part D of the Marilyn Powers, at (215) 814–2308, or On May 22, 2012 (77 FR 30208), EPA CAA. Each of these requirements are by email at [email protected]. determined that the Baltimore Area had discussed in section V (EPA’s Analysis

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of Maryland’s SIP Submittal) of this seeking redesignation to attainment for proposing to find that the Area proposed rulemaking action. a given NAAQS. These emission control continues to attain the standard. EPA is, EPA has provided guidance on strategy SIP revisions (e.g., RFP and therefore, proposing to approve MDE’s redesignation in the ‘‘State attainment demonstration SIP revisions) request to change the designation for the Implementation Plans; General and maintenance plans create MVEBs Baltimore Area from nonattainment to Preamble for the Implementation of based on onroad mobile source attainment for the 1997 annual PM2.5 Title I of the CAA Amendments of emissions for the relevant criteria NAAQS. 1990,’’ (57 FR 13498, April 16, 1992) pollutants and/or their precursors, IV. Effects of Recent Court Decisions on (the ‘‘General Preamble’’) and has where appropriate, to address pollution Proposed Actions provided further guidance on processing from onroad transportation sources. The redesignation requests in the following MVEBs are the portions of the total In this proposed rulemaking action, documents: (1) ‘‘Procedures for allowable emissions that are allocated to EPA considers the effects of three legal Processing Requests to Redesignate onroad vehicle use that, together with decisions on this redesignation. EPA Areas to Attainment,’’ Memorandum emissions from all other sources in the first considers the effects of the D.C. from John Calcagni, Director, Air area, will provide attainment, RFP, or Circuit Court and U.S. Supreme Court’s Quality Management Division, maintenance, as applicable. The budget decisions in EME Homer City September 4, 1992 (hereafter referred to serves as a ceiling on emissions from an Generation, L.P. v. EPA, 696 F.3d 7 (D.C. as the ‘‘1992 Calcagni Memorandum’’); area’s planned transportation system. Cir. 2012), rev’d, No. 12–1182 (S. Ct. (2) ‘‘SIP Actions Submitted in Response Under 40 CFR part 93, an MVEB for an April 29, 2014). The Supreme Court to CAA Deadlines,’’ Memorandum from area seeking a redesignation to reversed the D.C. Circuit Court decision John Calcagni, Director, Air Quality attainment is established for the last vacating and remanding the Cross-State Management Division, October 28, 1992; year of the maintenance plan. Air Pollution Rule (CSAPR). EPA is also and, (3) ‘‘Part D New Source Review The maintenance plan for the considering the effect of the January 4, (Part D NSR) Requirements for Areas Baltimore Area includes 2017 and 2025 2013 D.C. Circuit decision remanding to Requesting Redesignation to PM2.5 and NOX MVEBs for EPA the ‘‘Final Clean Air Fine Particle Attainment,’’ Memorandum from Mary transportation conformity purposes. The Implementation Rule’’ (72 FR 20586, D. Nichols, Assistant Administrator for transportation conformity determination April 25, 2007) and the Air and Radiation, October 14, 1994. for the Area is further discussed in ‘‘Implementation of the New Source subsection C of section V Review (NSR) Program for Particulate B. Requirements of a Maintenance Plan (Transportation Conformity) of this Matter Less than 2.5 Micrometers Section 175A of the CAA sets forth proposed rulemaking action and in a (PM2.5)’’ final rule (73 FR 28321, May the elements of a maintenance plan for technical support document (TSD) 16, 2008) (collectively, ‘‘1997 PM2.5 areas seeking redesignation from dated May 20, 2014, which is available Implementation Rule’’). Natural nonattainment to attainment. Under in the docket for this proposed Resources Defense Council (NRDC) v. section 175A of the CAA, the plan must rulemaking action. EPA, 706 F.3d 428 (D.C. Cir. 2013). demonstrate continued attainment of the applicable NAAQS for at least 10 III. Summary of Proposed Actions A. Effect of the Supreme Court and D.C. years after EPA approves the EPA is proposing to take several Circuit Court’s Decisions Regarding redesignation of an area to attainment. rulemaking actions related to the EPA’s CSAPR Eight years after the redesignation, the redesignation of the Baltimore Area to EPA has considered the recent state must submit a revised maintenance attainment for the 1997 annual PM2.5 decisions from the U.S. Supreme Court plan demonstrating that attainment will NAAQS. EPA is proposing to find that and the D.C. Circuit Court regarding continue to be maintained for the 10 the Baltimore Area meets the EPA’s CSAPR, and has concluded that years following the initial 10-year requirements for redesignation for the the decisions do not affect the Agency’s period. To address the possibility of 1997 annual PM2.5 NAAQS under proposal to redesignate the Baltimore future NAAQS violations, the section 107(d)(3)(E) of the CAA. EPA is Area from nonattainment to attainment maintenance plan must contain such proposing to approve the maintenance for the 1997 annual PM2.5 NAAQS. EPA contingency measures, with a schedule plan for the Baltimore Area as a revision promulgated CSAPR (76 FR 48208, for implementation, as EPA deems to the Maryland SIP for the 1997 annual August 8, 2011) to replace the Clean Air necessary to assure prompt correction of PM2.5 NAAQS. Approval of the Interstate Rule (CAIR), which has been any future PM2.5 violations. maintenance plan is one of the CAA in place since 2005. See 76 FR 59517. The 1992 Calcagni Memorandum criteria for redesignation of the Area to Both CSAPR and CAIR require provides additional guidance on the attainment for the 1997 annual PM2.5 significant reductions in emissions of content of a maintenance plan. The NAAQS. The Baltimore Area sulfur dioxide (SO2) and NOX from memorandum states that a maintenance maintenance plan is designed to ensure electric generating units (EGUs) to limit plan should address the following continued attainment in the Area for 10 the interstate transport of these provisions: (1) An attainment emissions years after redesignation. EPA is also pollutants and the ozone and fine inventory; (2) a maintenance proposing to approve the MVEBs for particulate matter they form in the demonstration showing maintenance for PM2.5 and NOX emissions for the 1997 atmosphere. The D.C. Circuit Court 10 years; (3) a commitment to maintain annual PM2.5 standard. In this initially vacated CAIR, North Carolina the existing monitoring network; (4) rulemaking action, EPA is proposing to v. EPA, 531 F.3d 896 (D.C. Cir. 2008), verification of continued attainment; find that the Area continues to attain the but ultimately remanded the rule to EPA and, (5) a contingency plan to prevent standard. without vacatur to preserve the or correct future violations of the EPA previously determined that the environmental benefits provided by NAAQS. Baltimore Area had attained the 1997 CAIR, North Carolina v. EPA, 550 F.3d Under the CAA, states are required to annual PM2.5 NAAQS and that it had 1176, 1178 (D.C. Cir. 2008). After submit, at various times, control strategy done so by its applicable attainment staying the implementation of CSAPR SIP revisions and maintenance plans for date. See 77 FR 30208, May 22, 2012. In on December 20, 2011 and instructing nonattainment areas and for areas this rulemaking action, EPA is EPA to continue to implement CAIR in

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the interim, on August 21, 2012, the The status of CSAPR is not relevant to related and other SIP elements required D.C. Circuit Court issued a decision to this redesignation. CSAPR was for these areas pursuant to subpart 4. vacate CSAPR, with further instruction promulgated in June 2011, and the rule The rule also identifies EPA guidance to continue administering CAIR was stayed by the D.C. Circuit Court just that is currently available regarding ‘‘pending the promulgation of a valid six months later, before the trading subpart 4 requirements. The PM2.5 replacement.’’ EME Homer City programs it created were scheduled to Subpart 4 Classification and Deadline Generation L.P. v. EPA, 696 F.3d 7, 38 go into effect. Therefore, the Baltimore Rule specifies December 31, 2014 as the (D.C. Cir. 2012). On April 29, 2014, the Area’s attainment of the 1997 annual deadline for the states to submit any Supreme Court reversed the opinion of PM2.5 standard cannot have been a additional attainment-related SIP- the D.C. Circuit Court and remanded the result of any emission reductions elements that may be needed to meet matter to the D.C. Circuit Court for associated with CSAPR. In sum, neither the applicable requirements of subpart 4 further proceedings. EPA v. EME Homer the current status of CAIR nor the for areas currently designated City Generation, L.P., No. 12–1182 (S. current status of CSAPR affects any of nonattainment for the 1997 annual and/ Ct. April 29, 2014). the criteria for proposed approval of this or 2006 24-hour PM2.5 NAAQS and to In its submission, MDE does not rely redesignation request for the Area. submit SIPs addressing the on either CAIR or CSAPR for emission nonattainment NSR requirements in B. Effect of the January 4, 2013 D.C. reductions that contributed to the subpart 4. Therefore, as explained in Circuit Court Decision Regarding PM2.5 Baltimore Area’s attainment of the 1997 detail in the following section, any Implementation Under Subpart 4 of Part annual PM NAAQS, nor does the additional attainment-related SIP 2.5 D of Title I of the CAA State rely on either of the rules to show elements that may be needed for the maintenance of the standard in the Area 1. Background Baltimore Area to meet the applicable for 10 years following redesignation. On January 4, 2013, in Natural requirements of subpart 4 were not due However, because CAIR was Resources Defense Council v. EPA, the at the time that Maryland submitted its promulgated in 2005 and incentivized D.C. Circuit Court remanded to EPA the redesignation request for the Area. sources and states to begin achieving ‘‘Final Clean Air Fine Particle Maryland submitted its request for early emission reductions, the air Implementation Rule’’ (72 FR 20586, redesignating the Baltimore Area for the quality data examined by EPA in issuing April 25, 2007) and the 1997 annual PM2.5 NAAQS on a final determination of attainment for ‘‘Implementation of the New Source December 12, 2013. the Baltimore Area in 2009 (November Review (NSR) Program for Particulate 2. Proposal on This Issue 20, 2009, 74 FR 60119) and the air Matter Less than 2.5 Micrometers quality data from the Area since 2005 (PM2.5)’’ final rule (73 FR 28321, May In this proposed rulemaking action, necessarily reflect reductions in 16, 2008) (collectively, ‘‘1997 PM2.5 EPA addresses the effect of the D.C. emissions from upwind sources as a Implementation Rule’’). 706 F.3d 428 Circuit Court’s January 4, 2013 ruling result of CAIR. Nonetheless, in this case (D.C. Cir. 2013). The D.C. Circuit Court and the proposed PM2.5 Subpart 4 EPA believes that it is appropriate to found that EPA erred in implementing Nonattainment Classification and redesignate the Area. Modeling the 1997 PM2.5 NAAQS pursuant to the Deadline Rule on the redesignation conducted by EPA during the CSAPR general implementation provisions of request for the Baltimore Area. EPA is rulemaking process, which used a subpart 1 of Part D of Title I of the CAA proposing to determine that the D.C. baseline emissions scenario that (subpart 1), rather than the particulate- Circuit Court’s January 4, 2013 decision ‘‘backed out’’ the effects of CAIR, see 76 matter-specific provisions of subpart 4 does not prevent EPA from FR at 48223, projected that the counties of Part D of Title I (subpart 4). redesignating the Baltimore Area to in the Baltimore Area would have PM2.5 Prior to the January 4, 2013 decision, attainment. Even in light of the D.C. annual design values 1 below the level the states had worked towards meeting Circuit Court’s decision, redesignation of the 1997 annual PM2.5 standard for the air quality goals of the 1997 annual for the Baltimore Area is appropriate 2012 and 2014 without taking into PM2.5 NAAQS in accordance with EPA under the CAA and EPA’s longstanding account emission reductions from CAIR regulations and guidance derived from interpretations of the CAA provisions or CSAPR. See Appendix B of EPA’s subpart 1. Subsequent to this decision, regarding redesignation. EPA first ‘‘Air Quality Modeling Final Rule in rulemaking that responds to the D.C. explains its longstanding interpretation Technical Support Document,’’ (Page B– Circuit Court’s remand, EPA took this that requirements that are imposed, or 45, B–46), which is available in the history into account by proposing to set that become due, after a complete docket for this proposed rulemaking a new deadline for any remaining redesignation request is submitted for action. In addition, the 2010–2012 submissions that may be required for an area that is attaining the standard, are quality-assured, quality-controlled, and moderate nonattainment areas as a not applicable for purposes of certified monitoring data for the result of the Court’s decision regarding evaluating a redesignation request. Baltimore Area confirms that 2012 PM2.5 subpart 4. Second, EPA then shows that, even if annual design values for each On June 2, 2014 (79 FR 31566) EPA EPA applies the subpart 4 requirements monitoring site in the Area remained finalized the ‘‘Identification of to the redesignation request for the well below the 1997 annual PM2.5 Nonattainment Classification and Baltimore Area and disregards the NAAQS, and, thus, the entire Area Deadlines for Submission of SIP provisions of its 1997 annual PM2.5 continued to attain the standard in Provisions for the 1997 PM2.5 NAAQS implementation rule remanded by the 2012. See Table 1 of this proposed and 2006 PM2.5 NAAQS’’ rule (the PM2.5 D.C. Circuit Court, the State’s request for rulemaking action for the Baltimore Subpart 4 Classification and Deadline redesignation of the Baltimore Area still Area’s monitoring data for 2010–2012. Rule). The rule identifies the qualifies for approval. EPA’s discussion classification under subpart 4 for areas takes into account the effect of the D.C. 1 As defined in 40 CFR part 50, Appendix N, currently designated nonattainment for Circuit Court’s ruling and the proposed section (1)(c). A monitoring site’s design value is the 1997 annual and/or 2006 24-hour PM2.5 Subpart 4 Classification and compared to the level of the 1997 annual PM2.5 NAAQS to determine compliance with the PM2.5 standards, and sets a new Deadline Rule on the Baltimore Area standard. deadline for states to submit attainment- maintenance plan, which EPA views as

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approvable when subpart 4 that the State submitted its 107(d)(3)(D). If ‘‘applicable requirements are considered. redesignation request, the requirements requirements’’ were interpreted to be a under subpart 4 were not due. continuing flow of requirements with no a. Applicable Requirements Under EPA’s view that, for purposes of reasonable limitation, states, after Subpart 4 for Purposes of Evaluating the evaluating the redesignation of the submitting a redesignation request, Redesignation Request for the Baltimore Baltimore Area, the subpart 4 would be forced continuously to make Area requirements were not due at the time additional SIP submissions that in turn With respect to the 1997 PM2.5 Maryland submitted the redesignation would require EPA to undertake further Implementation Rule, the D.C. Circuit request is in keeping with the EPA’s notice-and-comment rulemaking actions Court’s January 4, 2013 ruling rejected interpretation of subpart 2 requirements to act on those submissions. This would EPA’s reasons for implementing the for subpart 1 ozone areas redesignated create a regime of unceasing rulemaking PM2.5 NAAQS solely in accordance with subsequent to the D.C. Circuit Court’s that would delay action on the the provisions of subpart 1, and decision in South Coast Air Quality redesignation request beyond the 18- remanded that matter to EPA, so that it Mgmt. Dist. v. EPA, 472 F.3d 882 (D.C. month timeframe provided by the CAA could address implementation of the Cir. 2006). In South Coast, the D.C. for this purpose. 1997 annual PM2.5 NAAQS under Circuit Court found that EPA was not Second, a fundamental premise for subpart 4, in addition to subpart 1. For permitted to implement the 1997 8-hour redesignating a nonattainment area to the purposes of evaluating the ozone standard solely under subpart 1, attainment is that the area has attained redesignation request for the Baltimore and held that EPA was required under the relevant NAAQS due to emission Area, to the extent that implementation the statute to implement the standard reductions from existing controls. Thus, under subpart 4 would impose under the ozone-specific requirements an area for which a redesignation additional requirements for areas of subpart 2 as well. Subsequent to the request has been submitted would have designated nonattainment, EPA believes South Coast decision, in evaluating and already attained the NAAQS as a result that those requirements are not acting upon redesignation requests for of satisfying statutory requirements that ‘‘applicable’’ for the purposes of CAA the 1997 8-hour ozone standard that came due prior to the submission of the section 107(d)(3)(E), and thus EPA is not were submitted to EPA for areas under request. Absent a showing that required to consider subpart 4 subpart 1, EPA applied its longstanding unadopted and unimplemented requirements with respect to the interpretation of the CAA that requirements are necessary for future redesignation of the Baltimore Area. ‘‘applicable requirements,’’ for purposes maintenance, it is reasonable to view Under its longstanding interpretation of of evaluating a redesignation, are those the requirements applicable for the CAA, EPA has interpreted section that had been due at the time the purposes of evaluating the redesignation 107(d)(3)(E) to mean, as a threshold redesignation request was submitted. request as including only those SIP matter, that the part D provisions which See, e.g., Proposed Redesignation of requirements that have already come are ‘‘applicable’’ and which must be Manitowoc County and Door County due. These are the requirements that led approved in order for EPA to Nonattainment Areas (75 FR 22047, to attainment of the NAAQS. To require, redesignate an area include only those 22050, April 27, 2010). In those actions, for redesignation approval, that a state which came due prior to a state’s EPA, therefore, did not consider subpart also satisfy additional SIP requirements submittal of a complete redesignation 2 requirements to be ‘‘applicable’’ for coming due after the state submits its request. See 1992 Calcagni the purposes of evaluating whether the complete redesignation request, and Memorandum. See also ‘‘State area should be redesignated under while EPA is reviewing it, would Implementation Plan (SIP) section 107(d)(3)(E). compel the state to do more than is Requirements for Areas Submitting EPA’s interpretation derives from the necessary to attain the NAAQS, without Requests for Redesignation to provisions of section 107(d)(3). Section a showing that the additional Attainment of the Ozone and Carbon 107(d)(3)(E)(v) states that, for an area to requirements are necessary for Monoxide (CO) National Ambient Air be redesignated, a state must meet ‘‘all maintenance. Quality Standards (NAAQS) on or after requirements ‘applicable’ to the area In the context of this redesignation, the timing and nature of the D.C. Circuit November 15, 1992,’’ Memorandum under section 110 and part D.’’ Section Court’s January 4, 2013 decision in from Michael Shapiro, Acting Assistant 107(d)(3)(E)(ii) provides that the EPA NRDC v. EPA and EPA’s PM Subpart Administrator, Air and Radiation, must have fully approved the 2.5 4 Nonattainment Classification and September 17, 1993 (Shapiro ‘‘applicable’’ SIP for the area seeking Deadline Rule compound the memorandum); Final Redesignation of redesignation. These two sections read consequences of imposing requirements Detroit-Ann Arbor, (60 FR 12459, together support EPA’s interpretation of that come due after the redesignation 12465–66, March 7, 1995); Final ‘‘applicable’’ as only those requirements request is submitted. Maryland Redesignation of St. Louis, Missouri, (68 that came due prior to submission of a submitted its redesignation request for FR 25418, 25424–27, May 12, 2003); complete redesignation request. First, the 1997 annual PM NAAQS on Sierra Club v. EPA, 375 F.3d 537, 541 holding states to an ongoing obligation 2.5 (7th Cir. 2004) (upholding EPA’s December 12, 2013, which is prior to the to adopt new CAA requirements that deadline by which the Baltimore Area is redesignation rulemaking applying this arose after the state submitted its interpretation and expressly rejecting required to meet the applicable redesignation request, in order to be requirements pursuant to subpart 4. Sierra Club’s view that the meaning of redesignated, would make it ‘‘applicable’’ under the statute is To require Maryland’s fully- problematic or impossible for EPA to act completed and pending redesignation ‘‘whatever should have been in the plan on redesignation requests in accordance at the time of attainment rather than request for the 1997 annual PM2.5 with the 18-month deadline Congress NAAQS to comply now with whatever actually was in the plan and set for EPA action in section already implemented or due at the time requirements of subpart 4 that the D.C. 2 Circuit Court announced only in of attainment’’). In this case, at the time redesignation request remain applicable until a redesignation is approved, but are not required as January 2013 and for which the 2 Applicable requirements of the CAA that come a prerequisite to redesignation. Section 175A(c) of deadline to comply has not yet come, due subsequent to the area’s submittal of a complete the CAA. would be to give retroactive effect to

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such requirements and provide the State With respect to evaluating the quantitative milestones demonstrating a unique and earlier deadline for relevant substantive requirements of RFP toward attainment by the compliance solely on the basis of subpart 4 for purposes of redesignating applicable attainment date (section submitting its redesignation request for the Baltimore Area, EPA notes that 189(c)). the Baltimore Area. The D.C. Circuit subpart 4 incorporates components of The permit requirements of subpart 4, Court recognized the inequity of this subpart 1, which contains general air as contained in section 189(a)(1)(A), type of retroactive impact in Sierra Club quality planning requirements for areas refer to and apply the subpart 1 permit v. Whitman, 285 F.3d 63 (D.C. Cir. designated as nonattainment. See provisions requirements of sections 172 2002),3 where it upheld the D.C. Circuit section 172(c). Subpart 4 itself contains and 173 to PM10, without adding to Court’s ruling refusing to make specific planning and scheduling them. Consequently, EPA believes that retroactive EPA’s determination that the requirements for coarse particulate section 189(a)(1)(A) does not itself 4 St. Louis area did not meet its matter (PM10) nonattainment areas, impose for redesignation purposes any attainment deadline. In that case, and under the D.C. Circuit Court’s additional requirements for moderate petitioners urged the D.C. Circuit Court January 4, 2013 decision in NRDC v. areas beyond those contained in subpart to make EPA’s nonattainment EPA, these same statutory requirements 1.5 In any event, in the context of determination effective as of the date also apply for PM2.5 nonattainment redesignation, EPA has long relied on that the statute required, rather than the areas. EPA has longstanding general the interpretation that a fully approved later date on which EPA actually made guidance that interprets the 1990 nonattainment NSR program is not the determination. The D.C. Circuit amendments to the CAA, making considered an applicable requirement Court rejected this view, stating that recommendations to states for meeting for redesignation, provided the area can applying it ‘‘would likely impose large the statutory requirements for SIPs for maintain the standard with a prevention costs on States, which would face fines nonattainment areas. See the General of significant deterioration (PSD) and suits for not implementing air Preamble. In the General Preamble, EPA program after redesignation. A detailed pollution prevention plans . . . even discussed the relationship of subpart 1 rationale for this view is described in a though they were not on notice at the and subpart 4 SIP requirements, and memorandum from Mary Nichols, time.’’ Id. at 68. Similarly, it would be pointed out that subpart 1 requirements Assistant Administrator for Air and unreasonable to penalize the States by were to an extent ‘‘subsumed by, or Radiation, dated October 14, 1994, rejecting their redesignation request for integrally related to, the more specific entitled, ‘‘Part D New Source Review an area that is already attaining the 1997 PM10 requirements’’ (57 FR 13538, April Requirements for Areas Requesting 16, 1992). The subpart 1 requirements Redesignation to Attainment.’’ See also annual PM2.5 standard and that met all applicable requirements known to be in include, among other things, provisions rulemakings for Detroit, Michigan (60 effect at the time of the requests. For for attainment demonstrations, RACM, FR 12467–12468, March 7, 1995); EPA now to reject the redesignation RFP, emissions inventories, and Cleveland-Akron-Lorain, Ohio (61 FR request solely because the States did not contingency measures. 20458, 20469–20470, May 7, 1996); expressly address subpart 4 For the purposes of this redesignation Louisville, Kentucky (66 FR 53665, requirements which have not yet come request, in order to identify any October 23, 2001); and Grand Rapids, due, would inflict the same unfairness additional requirements which would Michigan (61 FR 31834–31837, June 21, condemned by the D.C. Circuit Court in apply under subpart 4, consistent with 1996). With respect to the specific Sierra Club v. Whitman. EPA’s June 2, 2014 PM2.5 Subpart 4 Nonattainment Classification and attainment planning requirements under b. Subpart 4 Requirements and Deadline Rule, EPA is considering the subpart 4,6 when EPA evaluates a Maryland Redesignation Request Baltimore Area to be a ‘‘moderate’’ PM2.5 redesignation request under either subpart 1 or 4, any area that is attaining Even if EPA were to take the view that nonattainment area. As EPA explained the PM standards is viewed as having the D.C. Circuit Court’s January 4, 2013 in its June 2, 2014 rule, section 188 of 2.5 satisfied the attainment planning decision requires that, in the context of the CAA provides that all areas requirements for these subparts. For pending redesignations for the 1997 designated nonattainment areas under redesignations, EPA has for many years annual PM standard, subpart 4 subpart 4 are initially classified by 2.5 interpreted attainment-linked requirements were due and in effect at operation of law as ‘‘moderate’’ requirements as not applicable for areas the time Maryland submitted its nonattainment areas, and will remain attaining the standard. In the General redesignation request, EPA proposes to moderate nonattainment areas unless Preamble, EPA stated that: ‘‘The determine that the Baltimore Area still and until EPA reclassifies the area as a requirements for RFP will not apply in qualifies for redesignation to attainment ‘‘serious’’ nonattainment area. Accordingly, EPA believes that it is evaluating a request for redesignation to for the 1997 annual PM standard. As 2.5 appropriate to limit the evaluation of attainment since, at a minimum, the air explained subsequently, EPA believes the potential impact of subpart 4 quality data for the area must show that that the redesignation request for the requirements to those that would be the area has already attained. Showing Baltimore Area, though not expressed in applicable to moderate nonattainment that the State will make RFP towards terms of subpart 4 requirements, areas. Sections 189(a) and (c) of subpart attainment will, therefore, have no substantively meets the requirements of 4 apply to moderate nonattainment meaning at that point.’’ that subpart for purposes of areas and include the following: (1) An The General Preamble also explained redesignating the Area to attainment. approved permit program for that: ‘‘The section 172(c)(9) requirements are directed at ensuring 3 construction of new and modified major Sierra Club v. Whitman was discussed and RFP and attainment by the applicable distinguished in a recent D.C. Circuit Court stationary sources (section 189(a)(1)(A)); decision that addressed retroactivity in a quite (2) an attainment demonstration (section different context, where, unlike the situation here, 189(a)(1)(B)); (3) provisions for RACM 5 The potential effect of section 189(e) on section EPA sought to give its regulations retroactive effect. 189(a)(1)(A) for purposes of evaluating this National Petrochemical and Refiners Ass’n v. EPA. (section 189(a)(1)(C)); and (4) redesignation request is discussed in this 630 F.3d 145, 163 (D.C. Cir. 2010), rehearing denied rulemaking action. 4 6 643 F.3d 958 (D.C. Cir. 2011), cert denied 132 S. PM10 refers to particulates nominally 10 i.e., attainment demonstration, RFP, RACM, Ct. 571 (2011). micrometers in diameter or smaller. milestone requirements, contingency measures.

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date. These requirements no longer concluded that to require states to meet specific control measures in various apply when an area has attained the superfluous SIP planning requirements regions of the country in reducing PM2.5 standard and is eligible for is not necessary and not required by the concentrations. EPA also left open the redesignation. Furthermore, section CAA, so long as those areas continue to possibility for such regulation of VOC 175A for maintenance plans . . . attain the relevant NAAQS. and ammonia in specific areas where provides specific requirements for Elsewhere in this notice, EPA that was necessary. contingency measures that effectively proposes to determine that the The D.C. Circuit Court in its January supersede the requirements of section Baltimore Area has attained and 4, 2013 decision made reference to both 172(c)(9) for these areas.’’ Id. EPA continues to attain the 1997 annual section 189(e) and 40 CFR 51. 1002, and similarly stated in its 1992 Calcagni PM2.5 NAAQS. Under its longstanding stated that: ‘‘In light of our disposition, Memorandum that: ‘‘The requirements interpretation, EPA is proposing to we need not address the petitioners’ for reasonable further progress and other determine here that the Baltimore Area challenge to the presumptions in [40 measures needed for attainment will not meets the attainment-related plan CFR 51.1002] that volatile organic apply for redesignations because they requirements of subparts 1 and 4 for the compounds and ammonia are not PM2.5 only have meaning for areas not 1997 annual PM2.5 NAAQS. Thus, EPA precursors, as subpart 4 expressly attaining the standard.’’ is proposing to conclude that the governs precursor presumptions.’’ It is evident that even if we were to requirements to submit an attainment NRDC v. EPA, at 27, n.10. Elsewhere in consider the D.C. Circuit Court’s January demonstration under 189(a)(1)(B), a the D.C. Circuit Court’s opinion, 4, 2013 decision in NRDC v. EPA to RACM determination under section however, the D.C. Circuit Court mean that attainment-related 172(c)(1) and section 189(a)(1)(c), a RFP observed: ‘‘Ammonia is a precursor to requirements specific to subpart 4 demonstration under 189(c)(1), and fine particulate matter, making it a 7 should be imposed retroactively or contingency measure requirements precursor to both PM2.5 and PM10. For prior to December 31, 2014 and, thus, under section 172(c)(9) are satisfied for a PM10 nonattainment area governed by were due prior to the State’s purposes of evaluating this subpart 4, a precursor is presumptively redesignation request, those redesignation request. regulated. See 42 U.S.C. 7513a(e) requirements do not apply to an area [section 189(e)].’’ Id. at 21, n.7. c. Subpart 4 and Control of PM that is attaining the 1997 annual PM 2.5 For a number of reasons, EPA believes 2.5 Precursors NAAQS, for the purpose of evaluating a that its proposed redesignation of the pending request to redesignate the area The D.C. Circuit Court in NRDC v. Baltimore Area for the 1997 annual to attainment. EPA has consistently EPA remanded to EPA the two rules at PM2.5 NAAQS is consistent with the enunciated this interpretation of issue in the case with instructions to D.C. Circuit Court’s decision on this applicable requirements under section EPA to re-promulgate them consistent aspect of subpart 4. While the D.C. 107(d)(3)(E) since the General Preamble with the requirements of subpart 4. EPA Circuit Court, citing section 189(e), was published more than twenty years in this section addresses the D.C. Circuit stated that ‘‘for a PM10 area governed by ago. Courts have recognized the scope of Court’s opinion with respect to PM2.5 subpart 4, a precursor is ‘presumptively EPA’s authority to interpret ‘‘applicable precursors. While past implementation regulated,’ ’’ the D.C. Circuit Court requirements’’ in the redesignation of subpart 4 for PM10 has allowed for expressly declined to decide the specific context. See Sierra Club v. EPA, 375 control of PM10 precursors such as NOX challenge to EPA’s 1997 PM2.5 F.3d 537 (7th Cir. 2004). from major stationary, mobile, and area Implementation Rule provisions Moreover, even outside the context of sources in order to attain the standard regarding ammonia and VOC as redesignations, EPA has viewed the as expeditiously as practicable, section precursors. The D.C. Circuit Court had obligations to submit attainment-related 189(e) of the CAA specifically provides no occasion to reach whether and how SIP planning requirements of subpart 4 that control requirements for major it was substantively necessary to as inapplicable for areas that EPA stationary sources of direct PM10 shall regulate any specific precursor in a determines are attaining the 1997 also apply to PM10 precursors from particular PM2.5 nonattainment area, annual PM2.5 standard. EPA’s prior those sources, except where EPA and did not address what might be ‘‘Clean Data Policy’’ rulemakings for the determines that major stationary sources necessary for purposes of acting upon a PM10 NAAQS, also governed by the of such precursors ‘‘do not contribute redesignation request. requirements of subpart 4, explain significantly to PM10 levels which However, even if EPA takes the view EPA’s reasoning. They describe the exceed the standard in the area.’’ EPA’s that the requirements of subpart 4 were effects of a determination of attainment 1997 PM2.5 Implementation Rule, deemed applicable at the time the State on the attainment-related SIP planning remanded by the D.C. Circuit Court, submitted the redesignation request, requirements of subpart 4. See contained rebuttable presumptions and disregards the 1997 PM2.5 ‘‘Determination of Attainment for Coso concerning certain PM2.5 precursors Implementation Rule’s rebuttable Junction Nonattainment Area,’’ (75 FR applicable to attainment plans and presumptions regarding ammonia and 27944, May 19, 2010). See also Coso control measures related to those plans. VOC as PM2.5 precursors, the regulatory Junction Proposed PM10 Redesignation, Specifically, in 40 CFR 51.1002, EPA consequence would be to consider the (75 FR 36023, 36027, June 24, 2010); provided, among other things, that a need for regulation of all precursors Proposed and Final Determinations of state was ‘‘not required to address VOC from any sources in the area to Attainment for San Joaquin [and ammonia] as . . . PM2.5 attainment demonstrate attainment and to apply the Nonattainment Area (71 FR 40952, plan precursor[s] and to evaluate section 189(e) provisions to major 40954–55, July 19, 2006 and 71 FR sources of VOC [and ammonia] stationary sources of precursors. In the 63641, 63643–47, October 30, 2006). In emissions in the State for control case of the Baltimore Area, EPA believes short, EPA in this context has also long measures.’’ EPA intended these to be that doing so is consistent with rebuttable presumptions. EPA proposing redesignation of the Area for 7 As EPA has explained previously, we do not established these presumptions at the the 1997 annual PM2.5 standard. The believe that the D.C. Circuit Court’s January 4, 2013 time because of uncertainties regarding Baltimore Area has attained the 1997 decision should be interpreted so as to impose these requirements on the states retroactively. Sierra Club the emission inventories for these annual PM2.5 standard without any v. Whitman, supra. pollutants and the effectiveness of specific additional controls of VOC and

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ammonia emissions from any sources in EPA notes that its 1997 PM2.5 additional precursors under subpart 4, it the Area. Implementation Rule provisions in 40 would not affect EPA’s approval here of Precursors in subpart 4 are CFR 51.1002 were not directed at the State’s request for redesignation of specifically regulated under the evaluation of PM2.5 precursors in the the Baltimore Area for the 1997 annual provisions of section 189(e), which context of redesignation, but at SIP PM2.5 NAAQS. In the context of a requires, with important exceptions, plans and control measures required to redesignation, the State has shown that control requirements for major bring a nonattainment area into the Baltimore Area has attained the 8 stationary sources of PM10 precursors. attainment for the 1997 annual PM2.5 standard. Moreover, the State has shown Under subpart 1 and EPA’s prior NAAQS. By contrast, redesignation to and EPA is proposing to determine that implementation rule, all major attainment primarily requires the attainment of the 1997 annual PM2.5 nonattainment area to have already stationary sources of PM2.5 precursors NAAQS in the Baltimore Area is due to were subject to regulation, with the attained due to permanent and permanent and enforceable emissions exception of ammonia and VOC. Thus, enforceable emission reductions, and to reductions on all precursors necessary EPA must address here whether demonstrate that controls in place can to provide for continued attainment of additional controls of ammonia and continue to maintain the standard. the standard (see section V.A.3 of this VOC from major stationary sources are Thus, even if we regard the D.C. Circuit rulemaking notice). It follows logically required under section 189(e) of subpart Court’s January 4, 2013 decision as that no further control of additional 4 in order to redesignate the Baltimore calling for ‘‘presumptive regulation’’ of precursors is necessary. Accordingly, ammonia and VOC for PM2.5 under the Area for the 1997 annual PM2.5 NAAQS. EPA does not view the January 4, 2013 As explained subsequently, EPA does attainment planning provisions of decision of the D.C. Circuit Court as not believe that any additional controls subpart 4, those provisions in and of precluding redesignation of the of ammonia and VOC are required in the themselves do not require additional Baltimore Area to attainment for the controls of these precursors for an area context of this redesignation. 1997 annual PM2.5 NAAQS at this time. that already qualifies for redesignation. In the General Preamble, EPA In summary, even if, prior to the date of Nor does EPA believe that requiring the the redesignation request submittal, the discusses its approach to implementing State to address precursors differently section 189(e). See 57 FR 13538–13542. State was required to address precursors than it has already, would result in a for the Baltimore Area under subpart 4 With regard to precursor regulation substantively different outcome. under section 189(e), the General rather than under subpart 1, as Although, as EPA has emphasized, its interpreted in EPA’s remanded 1997 Preamble explicitly stated that control consideration here of precursor PM2.5 Implementation Rule, EPA would of VOC under other CAA requirements requirements under subpart 4 is in the may suffice to relieve a state from the still conclude that the Baltimore Area context of a redesignation to attainment, had met all applicable requirements for need to adopt precursor controls under EPA’s existing interpretation of subpart section 189(e). See 57 FR 13542. EPA in purposes of redesignation in accordance 4 requirements with respect to with section 107(d)(3(E)(ii) and (v). this rulemaking action proposes to precursors in attainment plans for PM10 determine that Maryland’s SIP has met contemplates that states may develop V. EPA’s Analysis of Maryland’s SIP the provisions of section 189(e) with attainment plans that regulate only Submittal respect to ammonia and VOC as those precursors that are necessary for EPA is proposing several rulemaking precursors. This proposed purposes of attainment in the area in actions for the Baltimore Area: (1) To determination is based on our findings question, i.e., states may determine that redesignate the Area to attainment for that: (1) The Baltimore Area contains no only certain precursors need be the 1997 annual PM NAAQS; (2) to major stationary sources of ammonia; 2.5 regulated for attainment and control approve into the Maryland SIP the and (2) existing major stationary sources 10 purposes. Courts have upheld this associated maintenance plan for the of VOC are adequately controlled under approach to the requirements of subpart 1997 annual PM2.5 NAAQS; and, (3) to 11 other provisions of the CAA regulating 4 for PM10. EPA believes that 9 approve the 2017 and 2025 PM2.5 and the ozone NAAQS. In the alternative, application of this approach to PM2.5 NOX MVEBs for the Baltimore Area for EPA proposes to determine that, under precursors under subpart 4 is transportation conformity purposes. the express exception provisions of reasonable. Because the Baltimore Area EPA’s proposed approval of the section 189(e), and in the context of the has already attained the 1997 annual redesignation request and maintenance redesignation of the Baltimore Area, PM2.5 NAAQS with its current approach plan for the 1997 annual PM NAAQS which is attaining the 1997 annual 2.5 to regulation of PM2.5 precursors, EPA is based upon EPA’s determination that PM 2.5 standard, at present ammonia and believes that it is reasonable to conclude the Area continues to attain the 1997 VOC precursors from major stationary in the context of this redesignation that annual PM NAAQS, and that all other sources do not contribute significantly 2.5 there is no need to revisit the attainment redesignation criteria have been met for to levels exceeding the 1997 annual control strategy with respect to the the Baltimore Area. The following is a PM treatment of precursors. Even if the D.C. 2.5 standard in the Area. See 57 FR description of how the December 12, Circuit Court’s decision is construed to 13539–42. 2013 Maryland submittal satisfies the impose an obligation, in evaluating this requirements of section 107(d)(3)(E) of 8 redesignation request, to consider Under either subpart 1 or subpart 4, for the CAA for the 1997 annual PM purposes of demonstrating attainment as 2.5 NAAQS. expeditiously as practicable, a state is required to 10 See, e.g., ‘‘Approval and Promulgation of evaluate all economically and technologically Implementation Plans for California—San Joaquin A. Redesignation Request feasible control measures for direct PM emissions Valley PM10 Nonattainment Area; Serious Area Plan and precursor emissions, and adopt those measures for Nonattainment of the 24-Hour and Annual PM10 1. Attainment that are deemed reasonably available. Standards,’’ (69 FR 30006, May 26, 2004) 9 The Baltimore Area has reduced VOC emissions (approving a PM10 attainment plan that impose EPA has previously determined that through the implementation of various control controls on direct PM10 and NOX emissions and did the Baltimore Area has attained the programs including VOC Reasonably Available not impose controls on SO2, VOC, or ammonia Control Technology (RACT) regulations and various emissions). 1997 annual PM2.5 NAAQS. As noted onroad and nonroad motor vehicle control 11 See, e.g., Assoc. of Irritated Residents v. EPA earlier, on May 22, 2012 (77 FR 30208), programs. et al., 423 F.3d 989 (9th Cir. 2005). EPA determined that the Baltimore Area

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had attained the 1997 annual PM2.5 determined in the May 22, 2012 Area has been quality-assured, quality- standard, based on 2007–2009 and rulemaking, that the Baltimore Area had controlled, and certified by the State in 2008–2010 quality-assured, quality- attained the 1997 annual PM2.5 NAAQS accordance with 40 CFR 58.10. controlled, and certified ambient air by its statutory attainment date of April Furthermore, EPA has thoroughly quality monitoring data. Pursuant to 40 5, 2010. The basis and effect of the reviewed the most recent ambient air CFR 51.2004(c), this ‘‘clean data’’ determination of attainment for the 1997 quality monitoring data for PM2.5 in the determination for the Area suspended annual PM2.5 NAAQS was discussed in Area, as submitted by the State and the requirements for the State to submit the proposed (76 FR 72374, November recorded in EPA’s Air Quality System an attainment demonstration and 23, 2011) and final rulemaking notice (AQS). The PM quality-assured, (77 FR 30208, May 22, 2012). 2.5 associated RACM, a RFP plan, quality-controlled, and state-certified Maryland’s redesignation request contingency measures, and other submittal included the historic 2009–2012 air quality data shows that planning SIPs related to the attainment the Baltimore Area continues to attain monitoring data for the annual PM2.5 of the 1997 annual PM2.5 NAAQS until monitoring sites in the Baltimore Area. the 1997 annual PM2.5 NAAQS. The the Area is redesignated to attainment The historic monitoring data shows that Area’s PM2.5 annual design values for for the standard or EPA determines that the Baltimore Area has attained and the 2009–2011, and 2010–2012 the Area has again violated the continues to attain the 1997 annual monitoring periods as well as standard, at which time such plans are PM2.5 NAAQS. MDE assures that all preliminary data for 2013 are provided required to be submitted. EPA also PM2.5 monitoring data for the Baltimore in Table 1.

TABLE 1—DESIGN VALUES IN THE BALTIMORE AREA FOR THE 1997 ANNUAL PM2.5 NAAQS

Annual design value (in μg/m3) Monitor ID Monitor location 2009–2011 2010–2012 2011–2013

24–003–1003 ...... Glen Burnie, Anne Arundel County ...... 10.9 10.7 10.0 24–005–1007 ...... Padonia, Baltimore County ...... 10.1 9.6 9.0 24–005–3001 ...... Essex, Baltimore County ...... 11.1 11.0 10.3 24–025–1001 ...... Edgewood, Harford County ...... 9.8 10.3 10.3 24–510–0006 ...... Baltimore City ...... 10.0 10.0 9.9 24–510–0007 ...... Baltimore City ...... 10.2 9.9 9.3 24–510–0008 ...... Baltimore City ...... 10.9 10.4 9.9 24–510–0040 ...... Baltimore City ...... 11.3 11.1 10.5

The Baltimore Area’s recent a. Section 110 General SIP measures to prevent sources in a state monitoring data supports EPA’s Requirements from significantly contributing to air previous determinations that the Area quality problems in another state. To Section 110(a)(2) of Title I of the CAA has attained the 1997 annual PM2.5 implement this provision, EPA has delineates the general requirements for required certain states to establish NAAQS. In addition, as discussed a SIP, which include enforceable subsequently with respect to the programs to address the interstate emissions limitations and other control transport of air pollutants in accordance Baltimore Area’s maintenance plan, the measures, means, or techniques, with the NOX SIP Call (63 FR 57356, State has committed to continue provisions for the establishment and monitoring ambient PM October 27, 1998), amendments to the 2.5 operation of appropriate devices NO SIP Call (64 FR 26298, May 14, concentrations in accordance with 40 X necessary to collect data on ambient air 1999 and 65 FR 11222, March 2, 2000), CFR part 58. Thus, EPA is proposing to quality, and programs to enforce the and CAIR (70 FR 25162, May 12, 2005). determine that the Baltimore Area limitations. The general SIP elements However, section 110(a)(2)(D) of the continues to attain the 1997 annual and requirements set forth in section CAA requirements for a state are not PM2.5 NAAQS. 110(a)(2) of the CAA include, but are linked with a particular nonattainment not limited to the following: (1) 2. The State Has Met All Applicable area’s designation and classification in Submittal of a SIP that has been adopted Requirements Under Section 110 and that state. EPA believes that the by the state after reasonable public Subpart 1 of the CAA and Has a Fully requirements linked with a particular notice and hearing; (2) provisions for nonattainment area’s designation and Approved SIP Under Section 110(k) of establishment and operation of the CAA classifications are the relevant measures appropriate procedures needed to to evaluate in reviewing a redesignation In accordance with section monitor ambient air quality; (3) request. The transport SIP submittal 107(d)(3)(E)(v) of the CAA, the SIP implementation of a source permit requirements, where applicable, program; provisions for the revisions for the 1997 annual PM continue to apply to a state regardless of 2.5 implementation of Part C requirements NAAQS for the Baltimore Area must be the designation of any one particular (PSD); (4) provisions for the area in the state. Thus, EPA does not fully approved under section 110(k) of implementation of Part D requirements the CAA and all the requirements believe that these requirements are for NSR permit programs; (5) provisions applicable requirements for purposes of applicable to the Baltimore Area under for air pollution modeling; and, (6) section 110 of the CAA (general SIP redesignation. provisions for public and local agency In addition, EPA believes that the requirements) and part D of Title I of the participation in planning and emission other section 110(a)(2) elements of the CAA (SIP requirements for control rule development. CAA which are not connected with nonattainment areas) must be met. Section 110(a)(2)(D) of the CAA nonattainment plan submissions and requires that SIPs contain certain not linked with an area’s attainment

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status are not applicable requirements As noted previously, EPA has requires source permits for the for purposes of redesignation. The determined that the Baltimore Area has construction and operation of new and Baltimore Area will still be subject to attained the 1997 annual PM2.5 NAAQS. modified major stationary sources these requirements after it is Pursuant to 40 CFR 51.2004(c), the anywhere in the nonattainment area. redesignated. EPA concludes that requirement for Maryland to submit, for EPA has determined that, since the PSD section 110(a)(2) of the CAA and part D the Baltimore Area, an attainment requirements will apply after requirements which are linked with a demonstration and associated RACM, an redesignation, areas being redesignated particular area’s designation and RFP plan, contingency measures, and need not comply with the requirement classification are the relevant measures other planning SIPs related to the that a nonattainment NSR program be to evaluate in reviewing a redesignation attainment of the 1997 annual PM2.5 approved prior to redesignation, request, and that section 110(a)(2) NAAQS are suspended until the Area is provided that the area demonstrates elements of the CAA not linked to the redesignated to attainment for the maintenance of the NAAQS without area’s nonattainment status are not standard, or EPA determines that the part D NSR. A more detailed rationale applicable for purposes of Area again violated the standard, at for this view is described in a redesignation. This approach is which time such plans are required to memorandum from Mary Nichols, consistent with EPA’s existing policy on be submitted. Since the Baltimore Area Assistant Administrator for Air and applicability of conformity (i.e., for has attained the 1997 annual PM2.5 Radiation, dated October 14, 1994 redesignations) and oxygenated fuels NAAQS and continues to attain the entitled, ‘‘Part D New Source Review requirement. See Reading, standard, no additional measures are Requirements for Areas Requesting Pennsylvania, proposed and final needed to provide for attainment. Redesignation to Attainment.’’ rulemakings (61 FR 53174, October 10, Therefore, the requirements of sections Maryland’s PSD program for the 1997 1996), (62 FR 24826, May 7, 1997); 172(c)(1), 172(c)(2), 172(c)(6), and annual PM2.5 NAAQS will become Cleveland-Akron-Lorain, Ohio final 172(c)(9) of the CAA are no longer effective in the Baltimore Area upon rulemaking (61 FR 20458, May 7, 1996); considered to be applicable for purposes redesignation to attainment. See (77 FR and Tampa, Florida final rulemaking (60 of redesignation of the Baltimore Area 45949, August 2, 2012) (approving FR 62748, December 7, 1995). See also for the 1997 annual PM2.5 NAAQS. revisions to Maryland’s PSD program). the discussion on this issue in the The requirement under section Section 172(c)(7) of the CAA requires Cincinnati, Ohio redesignation (65 FR 172(c)(3) was not suspended by EPA’s the SIP to meet the applicable 37890, June 19, 2000) and in the clean data determination for the 1997 provisions of section 110(a)(2) of the Pittsburgh, Pennsylvania redesignation annual PM2.5 NAAQS, and is the only CAA. As noted previously, EPA believes (66 FR 53099, October 19, 2001). remaining requirement under section the Maryland SIP meets the 172 of the CAA to be considered for requirements of section 110(a)(2) of the EPA has reviewed the Maryland SIP purposes of redesignation of the CAA that are applicable for purposes of and has concluded that it meets the Baltimore Area. Section 172(c)(3) of the redesignation. general SIP requirements under section CAA requires submission and approval Section 175A of the CAA requires a 110(a)(2) of the CAA to the extent they of a comprehensive, accurate, and state seeking redesignation to are applicable for purposes of current inventory of actual emissions. attainment to submit a SIP revision to redesignation. EPA has previously On December 10, 2012 (77 FR 73313), provide for the maintenance of the approved provisions of Maryland’s SIP EPA approved a 2002 emissions NAAQS in the area ‘‘for at least 10 years addressing section 110(a)(2) inventory for the 1997 annual PM2.5 after the redesignation.’’ In conjunction requirements, including provisions NAAQS for the Baltimore Area. The with its request to redesignate the addressing PM2.5. See 76 FR 72624, emissions inventory, submitted by Baltimore Area to attainment status, November 25, 2011. These requirements Maryland on June 8, 2008 along with Maryland submitted a SIP revision to are, however, statewide requirements the Baltimore Area attainment plan for provide for maintenance of the 1997

that are not linked to the PM2.5 the 1997 annual PM2.5 NAAQS, was annual PM2.5 NAAQS in the Baltimore nonattainment status of the Baltimore submitted to meet the requirements of Area through 2025, which is at least 10 Area. Therefore, EPA believes that these section 172(c)(3) of the CAA. The 2002 years after redesignation. Maryland is SIP elements are not applicable comprehensive emissions inventory for requesting that EPA approve this SIP requirements for purposes of review of the 1997 annual PM2.5 standard revision as meeting the requirement of Maryland’s PM2.5 redesignation request. submitted by the State included section 175A of the CAA. Once b. Subpart 1 Requirements emissions estimates that cover the approved, the Baltimore Area general source categories of point maintenance plan will ensure that the Subpart 1 sets forth the basic sources, area sources, onroad mobile SIP for Maryland meets the nonattainment plan requirements sources, and nonroad mobile sources for requirements of the CAA regarding applicable to PM2.5 nonattainment areas. the Baltimore Area. The pollutants that maintenance of the 1997 annual PM2.5 Under section 172 of the CAA, states comprise the State’s 2002 emissions NAAQS for the Area. EPA’s analysis of with nonattainment areas must submit inventory for the Baltimore Area are the maintenance plan is provided in plans providing for timely attainment PM2.5, NOX, SO2, VOC, and ammonia section V.B (Maintenance Plan) of this and meet a variety of other (NH3). An evaluation of the 2002 document. requirements. The General Preamble for comprehensive emissions inventory for Section 176(c) of the CAA requires Implementation of Title I discusses the the Baltimore Area is provided in the states to establish criteria and evaluation of these requirements in the TSD prepared by EPA for that separate procedures to ensure that Federally context of EPA’s consideration of a rulemaking action. See Docket ID No. supported or funded projects conform to redesignation request. The General EPA–R03–OAR–2010–0143. the air quality planning goals in the Preamble sets forth EPA’s view of Section 172(c)(4) of the CAA requires applicable SIP. The requirement to applicable requirements for purposes of the identification and quantification of determine conformity applies to evaluating redesignation requests when allowable emissions for major new and transportation plans, programs, and an area is attaining the standard. See 57 modified stationary sources in an area, projects developed, funded or approved FR 13498, April 16, 1992. and section 172(c)(5) of the CAA under Title 23 of the United States Code

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(U.S.C.) and the Federal Transit Act Thus, for purposes of redesignating EPA to determine that the air quality (transportation conformity) as well as to the Baltimore Area to attainment for the improvement in the area is due to all other Federally supported or funded 1997 annual PM2.5 NAAQS, EPA permanent and enforceable reductions projects (general conformity). State determines that the Area has meet all in emissions resulting from transportation conformity SIP revisions applicable SIP requirements under part implementation of the SIP and must be consistent with Federal D of Title I of the CAA. applicable Federal air pollution control conformity regulations relating to regulations and other permanent and consultation, enforcement and c. Maryland Has a Fully Approved Applicable SIP Under Section 110(k) of enforceable reductions. Maryland’s enforceability which EPA promulgated redesignation request indicates that a pursuant to its authority under the CAA. the CAA variety of federal vehicle control EPA interprets the conformity SIP EPA has fully approved all applicable programs have created emission requirements as not applying for requirements of the Maryland SIP for reductions that contributed to purposes of evaluating the redesignation the Baltimore Area for purposes of request under section 107(d) of the CAA redesignaton to attainment for the 1997 attainment in 2007. In making this demonstration, Maryland has calculated because state conformity rules are still annual PM2.5 NAAQS in accordance required after redesignation and Federal with section 110(k) of the CAA. the change in emissions for the on-road conformity rules apply where state rules sector between 2002, one of the years have not been approved. See Wall v. 3. Permanent and Enforceable used to designate the Area as EPA, 265 F.3d 426, (6th Cir. 2001) Reductions in Emissions nonattainment, and 2007, one of the (upholding this interpretation). See also For redesignating a nonattainment years the Area monitored attainment, as (60 FR 62748, December 7, 1995) area to attainment, section shown in Table 2. (discussing Tampa, Florida). 107(d)(3)(E)(iii) of the CAA requires

TABLE 2—COMPARISON OF 2002 NONATTAINMENT YEAR AND 2007 ATTAINMENT YEAR REDUCTIONS FOR ON ROAD EMISSIONS IN THE BALTIMORE AREA (TPY)

2002 2007 Decrease

SO2 ...... 2,025.51 385.34 1,640.17 NOX ...... 76,060.01 49,140.12 26,219.89 PM2.5 ...... 2,344.86 1,789.28 555.52 VOC ...... 28,060.25 19,998.51 8,061.74 NH3 ...... 1,402.09 91.77 1,310. 32

Total ...... 109,892.72 71,405.02 37,787.64

The reduction in emissions and the passenger vehicles, including sport reduction in NOX emissions for these corresponding improvement in air utility vehicles, minivans, vans, and new engines using low sulfur diesel, quality from 2002 to 2007 in the pick-up trucks. The Federal rules were compared to existing engines using Baltimore Area can be attributed to a phased in between 2004 and 2009. EPA higher sulfur diesel fuel. The reduction number of regulatory control measures has estimated that, after phasing in the in fuel sulfur content also yielded an that have been implemented in the new requirements, new vehicles emit immediate reduction in particulate Baltimore Area and contributing areas less NOX in the following percentages: sulfate emissions from all diesel in recent years. An evaluation of the Passenger cars (light duty vehicles)—77 vehicles. State’s 2002 comprehensive emissions percent; light duty trucks, minivans, On June 29, 2004 (69 FR 38958), EPA inventory for the Baltimore Area is and sports utility vehicles—86 percent; promulgated the Nonroad Diesel Rule provided in the TSD prepared by EPA and larger sports utility vehicles, vans, for large nonroad diesel engines, such as for the December 7, 2012 rulemaking and heavier trucks—69–95 percent. EPA those used in construction, agriculture, action approving the base year expects fleet wide average emissions to and mining, to be phased in between inventory. See Docket ID No. EPA–R03– decline by similar percentages as new 2008 and 2014. The rule phased in OAR–2010–0143. An evaluation of the vehicles replace older vehicles. The Tier requirements for reducing the sulfur 2007 emissions inventory is provided in 2 standards also reduced the sulfur content of diesel used in nonroad diesel EPA’s emissions inventory TSD dated content of gasoline to 30 parts per engines. The reduction in sulfur content July 23, 2014, which is available in the million (ppm) beginning in January prevents damage to the more advanced docket for this proposed rulemaking 2006, which reflects up to a 90 percent emission control systems needed to action. reduction in sulfur content. meet the engine standards. It will also a. Federal Measures Implemented EPA issued the Heavy-Duty Diesel reduce fine particulate emissions from Engine Rule in July 2000. This rule diesel engines. The rule also reduces the Reductions in PM2.5 precursor includes standards limiting the sulfur sulfur content in nonroad diesel fuel by emissions have occurred statewide and content of diesel fuel, which went into over 99%. Prior to 2006, nonroad diesel in upwind states as a result of Federal effect in 2004. A second phase took fuel averaged approximately 3,400 ppm emission control measures, with effect in 2007 which reduced PM2.5 sulfur. Starting in 2007, this rule limited additional emission reductions expected emissions from heavy-duty highway nonroad diesel sulfur content to 500 to occur in the future. The Tier 2 engines and further reduced the ppm, with a further reduction to 15 ppm Emission Standards for Vehicles and highway diesel fuel sulfur content to 15 in 2010. The combined engine standards Gasoline Sulfur Standards (Tier 2 ppm. The total program is estimated to and the sulfur in fuel reductions will Standards) have resulted in lower NOX achieve a 90 percent reduction in direct reduce NOX and PM emissions from and SO2 emissions from all new PM2.5 emissions and a 95 percent large nonroad engines by over 90%,

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compared to current nonroad engines entitled ‘‘Technical Support Document 1992 Calcagni Memorandum, pages 9– using higher sulfur content diesel. for the Development of the 2007 10. In November 2002, EPA promulgated Emissions Inventory for the Regional For a demonstration of maintenance, emission standards for groups of Air Quality Modeling in the Northeast/ emissions inventories are required to be previously unregulated nonroad Mid-Atlantic Region Version 3.3’’, projected to future dates to assess the engines. These engines include large which may be found in Appendix D of influence of future growth and controls; spark-ignition engines such as those the State’s submittal, and is available in however, the maintenance used in forklifts, airport ground service the docket for this proposed rulemaking demonstration need not be based on equipment, and farm and construction action. modeling. See Wall v. EPA, supra; equipment; recreational vehicles using The 2007 point source inventory Sierra Club v. EPA, supra. See also 66 spark-ignition engines such as off includes emissions from EGUs and non- FR 53099–53100; 68 FR 25430–32. The highway motorcycles, all-terrain EGU sources as developed by MARAMA measures described in subsection A.3 of vehicles and snowmobiles; and in consultation with MDE. The section V (Permanent and Enforceable recreational marine diesel engines. nonpoint source emissions inventory for Reductions in Emissions) of this Emission standards from large spark- 2007 was developed using 2007 specific proposed rulemaking action achieved ignition engines were implemented in activity data along with EPA emission the reduction in emissions from point, two tiers, with Tier 1 starting in 2004 factors and the most recently available area, and mobile sources in the Area and Tier 2 in 2007. Recreational vehicle emission calculation methodologies. that led to attainment in 2007, and will emission standards were phased in from The 2007 nonroad mobile source continue through 2025. In addition, 2006 through 2012. Marine diesel emissions was generated using EPA’s some of the nonroad and on-road engine standards were phased in from National Mobile Inventory Model measures that helped the Area attain the 2006 through 2009. With full (NMIM) 2008, which used the standard in 2007 have requirements implementation of the entire nonroad NONROAD 2008a emissions model. which became applicable after 2007, spark-ignition engine and recreational Since marine, air and rail/locomotive and will help maintain the standard engine standards, an 80% reduction in (MAR) emissions are not part of the during the 10 year maintenance period. NOX is expected by 2020. NONROAD model, they were calculated In addition to the measures described in subsection A.3 of section V, Maryland’s B. Maintenance Plan separately outside of the NONROAD Healthy Air Act (HAA) regulation will On December 12, 2013, MDE model using the most recent methodologies and inputs. help to ensure the continuing decline of submitted a maintenance plan for the SO and NO emissions in the Area The 2007 onroad mobile source 2 X Baltimore Area for the 1997 annual during the maintenance period and inventory was developed by using PM2.5 NAAQS pursuant to section 175A beyond. Maryland’s HAA regulation EPA’s highway mobile source emissions of the CAA. EPA’s analysis for requires emission reductions of NO model MOVES2010a. A mix of default X proposing approval of the maintenance and SO2 from large coal-fired power plan is provided in this section. and local data was used to develop the plants in Maryland, and will limit inventory. The 2007 onroad emissions 1. Attainment Emissions Inventory emissions from the Brandon Shores, inventory, including a summary of the Herbert A. Wagner, and C.P. Crane Section 172(c)(3) requires states to methodology and data assumptions Generating Stations, all of which are submit a comprehensive, accurate, used for the analysis may be found in located in the Baltimore Area. See 73 FR current inventory of actual emissions Appendix F of the State’s submittal, 51599, September 4, 2008 (approving from all sources in the nonattainment which is available in the docket for this Maryland’s HAA regulation into the area. For a maintenance plan, states are proposed rulemaking action. Maryland SIP). The HAA was phased in required to submit an inventory to EPA has reviewed the documentation starting in 2009 with a second phase identify the level of emissions in the provided by MDE and found the that started in 2012. At full area which is sufficient to attain the emissions inventory to be approvable. implementation, the HAA will reduce NAAQS, referred to as the attainment For more information on the 2007 NOX and SO2 emissions from affected inventory (or the maintenance plan base inventory submitted by MDE and EPA’s units by 65 percent and 80 percent, year inventory), and which should be analysis of the inventory, see Appendix respectively, from 2002 levels. based on actual emissions. MDE A of the State’s submittal and EPA’s To show that the Baltimore Area will submitted an attainment inventory for emissions inventory TSD dated July 23, remain in attainment, MDE uses 2007, one of the years in the period 2014, both of which are available in the projection inventories derived by during which the Baltimore Area docket for this proposed rulemaking applying appropriate growth and monitored attainment of the 1997 action. control factors to the 2007 attainment annual PM2.5 standard. The attainment 2. Maintenance Demonstration year emissions inventory. MDE inventory is comprised of NOX, PM2.5, developed projection inventories for an SO2, VOC, and NH3 emissions from Section 175A requires a state seeking interim year of 2017 and a maintenance point sources, nonpoint sources, onroad redesignation to attainment to submit a plan end year of 2025 to show that mobile sources, and nonroad mobile SIP revision to provide for the future emissions of SO2, NOX, PM2.5, sources. maintenance of the NAAQS in the area VOC, and NH3, will remain at or below For the 2007 emissions inventory for ‘‘for at least 10 years after the the 2007 emissions levels throughout point, nonpoint, and nonroad source redesignation.’’ EPA has interpreted this the Baltimore Area through the year categories, MDE submitted the 2007 as a showing of maintenance ‘‘for a 2025. Version 3 emissions inventory period of ten years following For EGU emissions, the Department of developed through the Mid-Atlantic redesignation.’’ Where the emissions Energy 2011 Annual Energy Outlook Regional Air Management Association inventory method of showing growth factors, delineated by region and (MARAMA) regional planning process. maintenance is used, its purpose is to fuel, were used to develop the projected Details related to the development of the show that emissions during the EGU emissions. Non-EGU emissions 2007 emissions inventory can be found maintenance period will not increase were developed using employment in the January 23, 2012 MARAMA TSD over the attainment year inventory. See projections and other state specific

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emission data. Nonpoint emissions for MOVES2010a mobile source inventory emissions inventory, see EPA’s 2017 and 2025 were developed by model. emissions inventory TSD dated July 23, applying the appropriate growth and EPA has determined that the 2014, all of which are available in the control factors to the 2007 inventory. emissions inventories discussed above docket for this proposed rulemaking Nonroad source emissions for 2017 and as provided by MDE are approvable. For action. Table 3 shows the inventories for 2025 were developed using growth detailed information on the projected the 2007 attainment year, the 2017 factors from EPA’s NMIM2008 model. inventories, see Appendices B and C of interim year, and the 2025 maintenance On-road emissions for 2017 and 2025 the State submittal, and for more plan end year for the Baltimore Area. were developed using EPA’s information on EPA’s analysis of the

TABLE 3—COMPARISION OF 2007 ATTAINMENT YEAR INVENTORY WITH 2017 AND 2025 PROJECTED EMISSIONS IN THE BALTIMORE AREA (TPY)

Change from Change from 2007 2017 2025 2007–2017 2007–2025

SO2 ...... 103,510 24,714 24,620 78,796 78,890 NOX ...... 116,595 69,258 58,249 47,337 58,346 PM2.5 ...... 19,005 16,374 16,205 2,631 2,800 VOC ...... 64,416 46,800 44,302 17,616 20,114 NH3 ...... 4,117 3,905 3,930 212 187

Total ...... 307,643 161,051 147,305 146,592 160,337

Table 3 shows that between 2007 and emissions inventory, consisting of three situations: (1) When the annual 2017, the Baltimore Area is projected to annual and periodic evaluations. actual emissions of SO2, NOX, or PM2.5 reduce SO2 emissions by 76.1 percent, Annual emissions updates of stationary exceed the attainment year inventories NOX emissions by 40.6 percent, PM2.5 sources, the Highway Performance that are identified in Table 3, (2) when emissions by 13.8 percent, NH3 by 5.1 Monitoring System vehicle miles there is an annual exceedance (annual percent, and VOC by 27.3 percent. travelled data reported to the Federal average for one year at a federal Between 2007 and 2025, the Baltimore Highway Administration, and other reference method monitor located in the Area is projected to reduce SO2 growth indicators, which will be Baltimore Area) of 15.0 mg/m3; or, (3) emissions by 76.2 percent, NOX compared to the growth assumptions to When there is any violation (three year emissions by 50.0 percent, PM2.5 determine if the projected growth and average of the annual average at a emissions by 14.7 percent, NH3 by 4.5 observed growth are consistent. MDE federal reference method monitor percent and VOC by 31.2 percent. The will also submit comprehensive tracking located in the Baltimore Area) of 15.0 projected emissions inventories show inventories to EPA every three years as mg/m3 or greater. that the Baltimore Area will continue to required by EPA’s Air Emissions If any future year emissions inventory maintain the 1997 annual PM2.5 NAAQS Reporting Requirements (AERR) or as indicates that the Baltimore Area’s total during the 10 year maintenance period. required by other federal regulations emissions of SO2, NOX, or PM2.5 exceeds 3. Monitoring Network during the maintenance plan period. the attainment year levels, MDE would first perform an audit to determine if There are eight PM monitors in the 5. Contingency Measures 2.5 inventory refinements are needed, Baltimore Area. EPA has determined The contingency plan provisions for including a review of whether that Maryland’s maintenance plan maintenance plans are designed to appropriate models, control strategies, includes a commitment to continue to promptly correct a violation of the monitoring strategies, planning operate its EPA-approved monitoring NAAQS that occurs after redesignation. network, as necessary to demonstrate assumptions, industrial throughput, and Section 175A of the CAA requires that ongoing compliance with the NAAQS. production data were used in the a maintenance plan include such The Baltimore Area maintenance plan attainment year and future year contingency measures as EPA deems includes the State’s commitment to projections. If the audit does not necessary to ensure that a state will continue to operate and maintain its reconcile the emissions exceedances, promptly correct a violation of the MDE will implement one or more of the PM2.5 air quality monitoring network, consistent with EPA’s monitoring NAAQS that occurs after redesignation. contingency measures identified in the requirements, as necessary to The maintenance plan should identify plan. If an annual exceedance of 15.0 3 demonstrate ongoing compliance with the events that would ‘‘trigger’’ the mg/m occurs, MDE commits to adoption and implementation of a implementing one of the contingency the 1997 annual PM2.5 NAAQS. In its December 12, 2013 submittal, Maryland contingency measure(s), the measures identified for additional states that it will consult with EPA prior contingency measure(s) that would be emission reductions, and if a violation to making any necessary changes to the adopted and implemented, and the occurs, MDE commits to implementing network and will continue to quality schedule indicating the time frame by two or more of the contingency assure the monitoring data in which the state would adopt and measures to correct the violation. accordance with the requirements of 40 implement the measure(s). As explained in greater detail in the CFR part 58. Maryland’s maintenance plan outlines Baltimore Area maintenance plan, the the procedures for the adoption and candidate contingency measures 4. Verification of Continued Attainment implementation of contingency include the following: (1) PM2.5 RACM To provide for tracking of the measures to further reduce emissions determinations; (2) NOX RACM emission levels in the Baltimore Area, should a violation occur. These determination; (3) Non Road diesel MDE will periodically update the procedures would be triggered in one of emission reduction strategies; (4) low

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sulfur home heating oil requirements; CFR 93.102(b)(2)(v), which predated reviewed the MVEBs and found them (5) alternative fuel and diesel retrofit and was not disturbed by the litigation consistent with the maintenance plan programs for fleet vehicle operations; on the 1997 PM2.5 Implementation Rule, and found that the budgets meet the and, (6) wet suppression upgrade that emissions of these precursors from criteria for adequacy and approval. requirements for concrete motor vehicles are not significant Therefore, EPA is proposing to approve manufacturing. EPA finds that the contributors to the Area’s PM2.5 air the 2017 and 2025 PM2.5 and NOX Baltimore Area maintenance plan quality problem. EPA issued conformity MVEBs for the Baltimore Area for includes appropriate contingency regulations to implement the 1997 transportation conformity purposes. measures as necessary to ensure MDE annual PM2.5 NAAQS in July 2004 and Additional information pertaining to the will promptly correct any violation of May 2005 (69 FR 40004, July 1, 2004 review of the MVEBs can be found in the NAAQS that occurs after and 70 FR 24280, May 6, 2005). Those the transportation conformity TSD dated redesignation. Finally, the maintenance actions were not part of the final rule May 20, 2014, available in the docket for plan establishes a schedule for remanded to EPA by the D.C. Circuit this proposed rulemaking action. implementation of contingency Court in NRDC v. EPA, No. 08–1250 VI. Proposed Actions measures if needed, and MDE has (January 4, 2013), in which the D.C. committed to full implementation of Circuit Court remanded to EPA the 1997 EPA is proposing to approve the contingency measures or programs PM2.5 Implementation Rule because it request submitted by Maryland to within 24 months after notification by concluded that EPA must implement redesignate the Baltimore Area from EPA that contingency measures must be that NAAQS pursuant to the PM- nonattainment to attainment for the implemented or 27 months after quality specific implementation provisions of 1997 annual PM2.5 NAAQS. EPA has assured data indicates an exceedance or subpart 4, rather than solely under the evaluated the State’s redesignation violation has occurred. For all of the general provisions of subpart 1. That request and determined that it meets the reasons discussed above, EPA is decision does not affect EPA’s proposed redesignation criteria set forth in section proposing to approve the 1997 annual approval of the MVEBs for the Baltimore 107(d)(3)(E) of the CAA for the 1997 PM2.5 maintenance plan for the Area. The MVEBs are presented in Table annual PM2.5 standard. The monitoring Baltimore Area as meeting the 4. data demonstrates that the Baltimore requirements of section 175A of the Area has attained the 1997 annual PM2.5 CAA. TABLE 4—MVEBS FOR BALTIMORE NAAQS, and, for the reasons discussed previously, that it will continue to attain C. Transportation Conformity AREA, MARYLAND FOR THE 1997 PM NAAQS IN TPY the 1997 annual PM2.5 NAAQS. EPA is Section 176(c) of the CAA requires 2.5 also proposing to approve the

Federal actions in nonattainment and Year PM2.5 NOX maintenance plan for the Baltimore maintenance areas to ‘‘conform to’’ the Area as a revision to the Maryland SIP goals of SIPs. This means that such 2017 ...... 1,218.60 29,892.01 for the 1997 annual PM2.5 standard actions will not cause or contribute to 2025 ...... 1,051.39 21,594.96 because the plan meets the requirements violations of a NAAQS, worsen the of CAA section 175A for the standard, severity of an existing violation, or EPA’s substantive criteria for as described previously in this proposed delay timely attainment of any NAAQS determining adequacy of MVEBs are set rulemaking notice. In addition, EPA is or any interim milestone. Actions out in 40 CFR 93.118(e)(4). proposing to approve the 2017 and 2025 involving Federal Highway Additionally, to approve the MVEBs, PM2.5 and NOX MVEBs for the Baltimore Administration (FHWA) or Federal EPA must complete a thorough review Area for transportation conformity Transit Administration (FTA) funding of the SIP, in this case the PM2.5 purposes. Final approval of the or approval are subject to the maintenance plan, and conclude that redesignation request would change the transportation conformity rule (40 CFR with the projected level of motor vehicle official designation of the Baltimore Part 93, subpart A). Under this rule, and all other emissions, the SIP will Area from nonattainment to attainment metropolitan planning organizations achieve its overall purpose, in this case as found at 40 CFR part 81, for the 1997 (MPOs) in nonattainment and providing for maintenance of the 1997 annual PM2.5 NAAQS, and would maintenance areas coordinate with state annual PM2.5 NAAQS. EPA’s process for incorporate into the Maryland SIP the air quality and transportation agencies, determining adequacy of a MVEB maintenance plan ensuring continued EPA, and the FHWA and FTA to consists of three basic steps: (1) attainment of the 1997 annual PM2.5 demonstrate that their long range Providing public notification of a SIP NAAQS in the Area for 10 years after transportation plans and transportation submission; (2) providing the public the redesignation. EPA is soliciting public improvement programs (TIP) conform to opportunity to comment on the MVEB comments on the issues discussed in applicable SIPs. This is typically during a public comment period; and, this document. These comments will be determined by showing that estimated (3) EPA taking action on the MVEB. considered before taking final action. emissions from existing and planned On April 30, 2014, EPA initiated an highway and transit systems are less adequacy review of the MVEBs for the VII. Statutory and Executive Order Reviews than or equal to the MVEBs contained 1997 annual PM2.5 NAAQS that in the SIP. Maryland included in its redesignation Under the CAA, the Administrator is On December 12, 2013, Maryland request submittal. As such, a notice of required to approve a SIP submission submitted a SIP revision that contains the submission of these MVEBs were that complies with the provisions of the the 2017 and 2025 PM2.5 and NOX posted on the adequacy Web site (http:// CAA and applicable Federal regulations. onroad mobile source budgets for the www.epa.gov/otaq/stateresources/ 42 U.S.C. 7410(k); 40 CFR 52.02(a). Baltimore Area. Maryland did not transconf/currsips.htm). The public Thus, in reviewing SIP submissions, provide emission budgets for SO2, VOC, comment period closed on May 30, EPA’s role is to approve state choices, and NH3 because it concluded, 2014. There were no public comments provided that they meet the criteria of consistent with the presumptions received. EPA is acting on making the the CAA. Accordingly, this action regarding these precursors in the adequacy finding final through a merely proposes to approve state law as Transportation Conformity Rule at 40 separate notice of adequacy. EPA has meeting Federal requirements and does

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not impose additional requirements 40 CFR Part 81 However, you may submit comments beyond those imposed by state law. For Environmental protection, Air using one of three ways (no duplicates, that reason, this proposed action: please): • pollution control, National parks, is not a ‘‘significant regulatory Wilderness areas. 1. Electronically. You may submit action’’ subject to review by the Office electronically through the Federal of Management and Budget under Authority: 42 U.S.C. 7401 et seq. eRulemaking Portal at http:// Executive Order 12866 (58 FR 51735, Dated: September 15, 2014. www.regulations.gov. (Attachments October 4, 1993); William C. Early, should be in Microsoft Word, if • does not impose an information Acting Regional Administrator, Region III. possible.) collection burden under the provisions [FR Doc. 2014–23638 Filed 10–2–14; 8:45 am] 2. By regular, express, or overnight of the Paperwork Reduction Act (44 mail. You may mail your printed or BILLING CODE 6560–50–P U.S.C. 3501 et seq.); written submissions to the following • is certified as not having a address: significant economic impact on a substantial number of small entities DEPARTMENT OF HEALTH AND Patrice Drew, Office of Inspector General, HUMAN SERVICES Department of Health and Human Services, under the Regulatory Flexibility Act (5 Attention: OIG–403–P, Room 5269, Cohen U.S.C. 601 et seq.); • Office of Inspector General Building, 330 Independence Avenue SW., does not contain any unfunded Room 5269, Washington, DC 20201. mandate or significantly or uniquely affect small governments, as described 42 CFR Parts 1001 and 1003 Please allow sufficient time for mailed comments to be received before the in the Unfunded Mandates Reform Act RIN 0936–AA06 of 1995 (Pub. L. 104–4); close of the comment period. • does not have Federalism Medicare and State Health Care 3. By hand or courier. You may implications as specified in Executive Programs: Fraud and Abuse; deliver, by hand or courier, before the Order 13132 (64 FR 43255, August 10, Revisions to Safe Harbors Under the close of the comment period, your 1999); Anti-Kickback Statute, and Civil printed or written comments to: • is not an economically significant Monetary Penalty Rules Regarding Patrice Drew, Office of Inspector General, regulatory action based on health or Beneficiary Inducements and Department of Health and Human Services, safety risks subject to Executive Order Gainsharing Cohen Building, 330 Independence Avenue 13045 (62 FR 19885, April 23, 1997); SW., Room 5269, Washington, DC 20201. • AGENCY: Office of Inspector General is not a significant regulatory action Because access to the interior of the (OIG), HHS. subject to Executive Order 13211 (66 FR Cohen Building is not readily available 28355, May 22, 2001); ACTION: Proposed rule. to persons without Federal Government • is not subject to requirements of SUMMARY: This proposed rule would identification, commenters are Section 12(d) of the National encouraged to schedule their delivery Technology Transfer and Advancement amend the safe harbors to the anti- kickback statute and the civil monetary with one of our staff at (202) 619–1368. Act of 1995 (15 U.S.C. 272 note) because Inspection of Public Comments: All application of those requirements would penalty (CMP) rules under the authority of the Office of Inspector General (OIG). comments received before the end of the be inconsistent with the CAA; and comment period will be posted on • does not provide EPA with the The proposed rule would add new safe http://www.regulations.gov for public discretionary authority to address, as harbors, some of which codify statutory viewing. Hard copies will also be appropriate, disproportionate human changes set forth in the Medicare available for public inspection at the health or environmental effects, using Prescription Drug, Improvement, and Office of Inspector General, Department practicable and legally permissible Modernization Act of 2003 (MMA) and of Health and Human Services, Cohen methods, under Executive Order 12898 the Patient Protection and Affordable Building, 330 Independence Avenue (59 FR 7629, February 16, 1994). Care Act, Public Law 111–148, 124 Stat. SW., Washington, DC 20201, Monday In addition, this rule proposing to 119 (2010), as amended by the Health through Friday from 8:30 a.m. to 4 p.m. approve Maryland’s redesignation Care and Education Reconciliation Act To schedule an appointment to view request, associated maintenance plan, of 2010, Public Law 111–152, 124 Stat. public comments, phone (202) 619– and MVEBs for transportation 1029 (2010) (ACA), and all of which 1368. conformity purposes for the Baltimore would protect certain payment practices Area for the 1997 annual PM2.5 NAAQS and business arrangements from FOR FURTHER INFORMATION CONTACT: does not have tribal implications as criminal prosecution or civil sanctions Heather Westphal, Office of Counsel to specified by Executive Order 13175 (65 under the anti-kickback statute. We also the Inspector General, (202) 619–0335, FR 67249, November 9, 2000), because propose to codify revisions to the for questions relating to the proposed the SIP is not approved to apply in definition of ‘‘remuneration,’’ added by rule. the Balanced Budget Act (BBA) of 1997 Indian country located in the state, and Executive Summary EPA notes that it will not impose and ACA, and add a gainsharing CMP substantial direct costs on tribal provision in our regulations. A. Need For Regulatory Action governments or preempt tribal law. DATES: To ensure consideration, MMA and ACA include exceptions to List of Subjects comments must be delivered to the the anti-kickback statute, and BBA of address provided below by no later than 1997 and ACA include exceptions to the 40 CFR Part 52 5 p.m. Eastern Standard Time on definition of ‘‘remuneration’’ under the Environmental protection, Air December 2, 2014. civil monetary penalties law. OIG pollution control, Incorporation by ADDRESSES: In commenting, please proposes to codify those changes here. reference, Nitrogen oxides, Particulate reference file code OIG–403–P3. At the same time, OIG proposes matter, Reporting and recordkeeping Because of staff and resource additional changes to make technical requirements, Sulfur oxides, Volatile limitations, we cannot accept comments corrections to an existing regulation and organic compounds. by facsimile (FAX) transmission. proposes new safe harbors to the anti-

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kickback statute to protect certain C. Costs and Benefits reimbursable by any Federal health care services that the industry has expressed There are no significant costs program. an interest in offering and that we associated with the proposed regulatory Because of the broad reach of the believe could be, if properly structured revisions that would impose any statute, concern was expressed that and with appropriate safeguards, low mandates on State, local, or tribal some relatively innocuous commercial risk to Federal health care programs. governments or on the private sector. arrangements were covered by the statute and, therefore, potentially Finally, the civil monetary penalties law SUPPLEMENTARY INFORMATION: This subject to criminal prosecution. In includes a gainsharing CMP provision notice of proposed rulemaking is part of response, Congress enacted section 14 of that has yet to be codified in a rulemaking that was identified in the regulations. We propose to interpret and Unified Agenda by the title ‘‘Medicare the Medicare and Medicaid Patient and codify that provision in this proposed and State Health Care Programs: Fraud Program Protection Act of 1987, Public rule. and Abuse; Revisions to the Office of Law 100–93 (section 1128B(b)(3)(E) of the Act), which specifically requires the B. Summary of Major Provisions Inspector General’s Safe Harbors Under the Anti-Kickback Statute, Exclusion development and promulgation of 1. Anti-Kickback Statute and Safe Authorities, and Civil Monetary Penalty regulations, the so-called safe harbor Harbors Rules.’’ OIG has proposed additional provisions, that would specify various payment and business practices that We propose to amend 42 CFR rulemaking in the following areas: CMP would not be treated as criminal 1001.952 by modifying certain existing authorities (42 CFR part 1003); inflation offenses under the anti-kickback statute, safe harbors to the anti-kickback statute adjustment for CMPs (42 CFR part even though they may potentially be and by adding safe harbors that provide 1003); and exclusion authorities and the capable of inducing referrals of business new protections or codify certain duties and responsibilities of State under the Federal health care programs. existing statutory protections. These Medicaid Fraud Control Units (MFCUs) 42 CFR parts 1000, 1001, 1002, and Section 205 of the Health Insurance changes include: Portability and Accountability Act of • A technical correction to the 1006. Each of the proposed rules is a stand-alone, independent rule, and thus, 1996, Public Law 104–191, established existing safe harbor for referral services; section 1128D of the Act, which • protection for certain cost-sharing one can comment meaningfully on this proposed rule independent of the includes criteria for modifying and waivers, including: establishing safe harbors. Specifically, • Pharmacy waivers of cost-sharing proposed rules concerning CMP authorities, inflation adjustment for section 1128D(a)(2) of the Act provides for financially needy Medicare Part D CMPs, exclusion authorities, or that, in modifying and establishing safe beneficiaries; and authorities and duties of the MFCUs. harbors, the Secretary of Health and • waivers of cost-sharing for Human Services (Secretary) may emergency ambulance services I. Background consider whether a specified payment furnished by State- or municipality- practice may result in: A. Anti-Kickback Statute and Safe • owned ambulance services; Harbors An increase or decrease in access to • protection for certain remuneration health care services; between Medicare Advantage Section 1128B(b) of the Act (42 U.S.C. • an increase or decrease in the organizations and federally qualified 1320a–7b(b), the anti-kickback statute) quality of health care services; health centers; provides criminal penalties for • an increase or decrease in patient • protection for discounts by individuals or entities that knowingly freedom of choice among health care manufacturers on drugs furnished to and willfully offer, pay, solicit, or providers; • beneficiaries under the Medicare receive remuneration in order to induce an increase or decrease in Coverage Gap Discount Program; and or reward the referral of business competition among health care reimbursable under Federal health care • protection for free or discounted providers; programs, as defined in section 1128B(f) • local transportation services that meet an increase or decrease in the of the Act. The offense is classified as specified criteria. ability of health care facilities to provide a felony and is punishable by fines of services in medically underserved areas 2. Civil Monetary Penalty Authorities up to $25,000 and imprisonment for up or to medically underserved to 5 years. Violations may also result in We propose to amend the definition populations; the imposition of CMPs under section • of ‘‘remuneration’’ in the CMP an increase or decrease in the cost 1128A(a)(7) of the Act (42 U.S.C. 1320a– regulations at 42 CFR 1003 by adding to Federal health care programs; 7a(a)(7)), program exclusion under • an increase or decrease in the certain statutory exceptions for: section 1128(b)(7) of the Act (42 U.S.C. potential overutilization of health care • Copayment reductions for certain 1320a–7(b)(7)), and liability under the services; hospital outpatient department services; False Claims Act (31 U.S.C. 3729–33). • • the existence or nonexistence of any certain remuneration that poses a The types of remuneration covered potential financial benefit to a health low risk of harm and promotes access to specifically include, without limitation, care professional or provider, which care; kickbacks, bribes, and rebates, whether benefit may vary depending on whether • coupons, rebates, or other retailer made directly or indirectly, overtly or the health care professional or provider reward programs that meet specified covertly, in cash or in kind. In addition, decides to order a health care item or requirements; prohibited conduct includes not only service or arrange for a referral of health • certain remuneration to financially the payment of remuneration intended care items or services to a particular needy individuals; and to induce or reward referrals of patients, practitioner or provider; • copayment waivers for the first fill but also the payment of remuneration • any other factors the Secretary of generic drugs. intended to induce or reward the deems appropriate in the interest of We also propose to codify the purchasing, leasing, or ordering of, or preventing fraud and abuse in Federal gainsharing CMP set forth in section arranging for or recommending the health care programs. 1128A(b) of the Social Security Act (the purchasing, leasing, or ordering of, any Since July 29, 1991, we have Act) (42 U.S.C. 1320a–7a(b)). good, facility, service, or item published in the Federal Register a

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series of final regulations establishing drug manufacturers have entered into 3. The Gainsharing CMP 1 safe harbors in various areas. These agreements with the Secretary to Public Law 99–509, the Omnibus provisions have been developed ‘‘to provide certain beneficiaries access to Budget Reconciliation Act (OBRA) of limit the reach of the statute somewhat discounts on drugs at the point of sale. 1986, authorized the Secretary to by permitting certain non-abusive Section 3301(d) of ACA amends the impose CMPs for certain incentive arrangements, while encouraging anti-kickback statute to protect the payments made to physicians by beneficial or innocuous arrangements.’’ discounts provided for under the hospitals, risk-sharing health (56 FR 35952, 35958 (July 29, 1991).) Medicare Coverage Gap Discount maintenance organizations (HMOs), and Many of the safe harbors create new Program. competitive medical plans. Over time, exemptions, while other safe harbors We are proposing to incorporate into this provision, section 1128A(b) of the interpret exceptions already our regulations safe harbors for payment Act (the Gainsharing CMP), has been promulgated by statute. and business practices permitted under amended to repeal the provisions Health care providers and others may MMA and ACA, as well as proposing relating to HMOs and other risk-sharing voluntarily seek to comply with safe new safe harbors pursuant to our entities and to make various other harbors so that they have the assurance authority under section 14 of the changes in terminology.4 See section that their business practices will not be Medicare and Medicaid Patient and 6003(g)(3) of Public Law 101–239, subject to enforcement action under the Protection Act of 1987 to protect OBRA of 1989; section 4204(a)(3) and anti-kickback statute, the CMP provision practices that we view as posing a low 4731(b) of Public Law 101–508, OBRA for anti-kickback violations, or the risk to Federal health care programs as of 1990; and section 4201(c) of the BBA program exclusion authority related to long as specified conditions are met. of 1997. kickbacks. We note, however, that B. Civil Monetary Penalty Authorities Section 1128A(b)(1) prohibits a compliance with a safe harbor insulates hospital or a critical access hospital an individual or entity from liability 1. Overview of OIG Civil Monetary from knowingly making a payment, under the anti-kickback statute and the Penalty Authorities directly or indirectly, to a physician as beneficiary inducements CMP 2 only; In 1981, Congress enacted the CMP an inducement to reduce or limit individuals and entities remain law, section 1128A of the Act, as one of services provided to Medicare or responsible for complying with all other several administrative remedies to Medicaid beneficiaries who are under laws, regulations, and guidance that combat fraud and abuse in Medicare the direct care of the physician. A apply to their businesses. In authorizing and Medicaid. The law authorized the hospital or a critical access hospital that the Department of Health and Human Secretary to impose penalties and makes such payment and the physician Services (Department or HHS) to protect assessments on persons who defrauded who knowingly accepts such payment certain arrangements and payment Medicare or Medicaid or engaged in are subject to CMPs of not more than practices under the anti-kickback certain other wrongful conduct. The $2,000 for each beneficiary for whom statute, Congress intended the safe CMP law also authorized the Secretary the payment is made. to exclude persons from Federal health harbor regulations to be updated II. Provisions of the Proposed Rule periodically to reflect changing business care programs (as defined in section practices and technologies in the health 1128B(f)(1) of the Act) and to direct the A. Anti-Kickback Statute and Safe care industry. appropriate State agency to exclude the Harbors Section 101 of MMA added a new person from participating in any State Below is a description of the section 1860D to the Act, establishing health care programs (as defined in additional payment practices that we the Part D prescription drug benefit in section 1128(h) of the Act). Congress are proposing to incorporate under 42 the Medicare program. Section 101(e) of later expanded the CMP law and the CFR 1001.952 pursuant to the MMA amends section 1128B(b)(3) of the scope of exclusion to apply to all authorities cited under each heading Act to permit pharmacies to waive or Federal health care programs, but the and the rationale for their inclusion in reduce cost-sharing imposed under Part CMP applicable to beneficiary this proposed rulemaking. Consistent D as long as specified conditions are inducements remains limited to with the criteria set forth in section met. In addition, section 237 of MMA Medicare and State health care program 1128D(a)(2) for modifying and added an exception to permit certain beneficiaries. The Secretary delegated establishing safe harbors, our goal is to remuneration between Medicare the law’s CMP authorities to OIG. 53 FR protect beneficial arrangements that Advantage organizations and federally 12993 (April 20, 1988). Since 1981, enhance the efficient and effective qualified health centers. Congress has created various other CMP delivery of health care and promote the ACA also includes a number of authorities covering numerous types of best interests of patients, while also provisions that could affect liability fraud and abuse, many of which were protecting the Federal health care under the anti-kickback statute. Section also delegated by the Secretary to OIG. programs and beneficiaries from undue 3301 of ACA establishes the Medicare 2. The Definition of ‘‘Remuneration’’ risk of harm associated with referral Coverage Gap Discount Program, payments. We seek to strike an The BBA of 1997 and section codified at new section 1860D–14A of appropriate balance between protections 6402(d)(2)(B) of ACA amended the the Act (42 U.S.C. 1395w–114A). for beneficial arrangements and definition of ‘‘remuneration’’ for Pursuant to this program, prescription safeguards to prevent unscrupulous purposes of the beneficiary inducements CMP at section 1128A(a)(5) of the Act, 1 56 FR 35952 (July 29, 1991); 61 FR 2122 (Jan. 0936–AA04, Medicare and State Health Care 25, 1996); 64 FR 63518 (Nov. 19, 1999); 64 FR as discussed below. We propose to Programs: Fraud and Abuse; Revisions to the Office 63504 (Nov. 19, 1999); 66 FR 62979 (Dec. 4, 2001); incorporate these changes into the of Inspector General’s Civil Monetary Penalty Rules, 71 FR 45110 (Aug. 8, 2006); and 72 FR 56632 (Oct. definition of ‘‘remuneration’’ under published on May 12, 2014 (79 FR 27080) (CMP 4, 2007). proposed § 1003.110 3 (current NPRM); this proposed rule uses the section 2 Pursuant to section 1128A(i)(6)(B), any practice designations proposed in the CMP NPRM, together permissible under the anti-kickback statute, § 1003.101). with current section numbers. whether through statutory exception or regulations 4 Requirements relating to physician incentive issued by the Secretary, is also excepted from the 3 The Secretary proposed a reorganization of Part plans in HMOs and other risk-sharing entities are beneficiary inducements CMP. 1003. See Notice of Proposed Rulemaking RIN now set forth in section 1876(i) of the Act.

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individuals and entities from taking prohibition against inducements to suppliers still must comply with other advantage of the safe harbors to increase beneficiaries, found in section laws, regulations, and Centers for costs to programs and patients or 1128A(a)(5) of the Act. We propose to Medicare & Medicaid Services (CMS) compromise quality of care. We seek modify § 1001.952(k) by adding two program rules. comments on how best to do this with new subparagraphs to protect certain Cost-Sharing Waivers for Emergency respect to all of our proposals below. cost-sharing waivers that pose a low risk Ambulance Services of harm and make technical corrections 1. Referral Services to the introductory language to account Over the years, we have received We propose to make a technical for new subparagraphs. In addition, we many advisory opinion requests correction to the safe harbor for referral note that subparagraph (k) is limited to concerning the reduction or waiver of services, found at 42 CFR 1001.952(f). reductions or waivers of Medicare and coinsurance or deductible amounts This safe harbor originally required that State health care program beneficiary owed for emergency ambulance services any fee a referral service charged a cost-sharing. We are considering and to an ambulance supplier that is owned participant be ‘‘based on the cost of solicit comments about expanding this and operated by a State or a political operating the referral service, and not on safe harbor to protect waivers under all subdivision of a State, resulting in many the volume or value of any referrals to Federal health care programs, if favorable advisory opinions (that is, or business otherwise generated by the applicable, and subject to each of the approving of such arrangements). participants for the referral service paragraphs below. Notwithstanding the vast body of * * *’’. This language created an favorable advisory opinions, we unintended ambiguity, such that the Part D Cost-Sharing Waivers by continue to receive similar requests for safe harbor could have been viewed as Pharmacies advisory opinions each year. In light of permitting referral services to adjust As noted in section I.A above, MMA this, pursuant to our authority under their fees on the basis of the volume of specifically amended section section 1128B(b)(3)(E) of the Act, we referrals they make to the participants. 1128B(b)(3) of the Act by adding a new propose to establish a safe harbor to In 1999, we finalized a modification to subparagraph (G) that excepts from protect those reductions or waivers that the language to clarify that the safe liability under the anti-kickback statute meet all the conditions enumerated in harbor precludes protection for waivers or reductions by pharmacies § 1001.952(k)(4). payments from participants to referral (including pharmacies of the Indian First, we propose to require that the services that are based on the volume or Health Service, Indian tribes, tribal ambulance provider or supplier be value of referrals to, or business organizations, and urban Indian owned and operated by a State, a otherwise generated by, either party for organizations) of any cost-sharing political subdivision of a State, or a the other party. See 64 FR 63518, 63526 imposed under Medicare Part D, as long federally recognized Indian tribe 5 and (Nov. 19, 1999). During subsequent as certain conditions are met. These be the Medicare Part B provider or revisions to the safe harbor by which we conditions are specified in clauses (i) supplier of the emergency ambulance intended to make a technical correction through (iii) of section 1128A(i)(6)(A) of services. We note that items and clarifying that OIG’s exclusion authority the Act, and we propose to interpret services that are paid for directly or applied to all Federal health care them consistent with our regulations indirectly by a government entity (i.e., programs rather than only to Medicare interpreting these conditions in ‘‘free services’’) generally are not and State health care programs, the paragraph (1) of the definition of reimbursable by Medicare,6 so we also language in § 1001.952(f)(2) ‘‘remuneration’’ at § 1003.101. propose to limit the safe harbor inadvertently was changed to ‘‘* * * or We propose to add a new protection to situations in which a business otherwise generated by either § 1001.952(k)(3) reflecting this provider’s or supplier’s reduction or party for the referral service * * *.’’ See exception to the anti-kickback statute. waiver of coinsurance or deductible is 67 FR 11928, 11929 and 11934 (Mar. 18, Thus, consistent with the statute, a not considered to be the furnishing of 2002). Therefore, we propose to make a pharmacy waiving Part D cost-sharing services paid for directly or indirectly technical correction and revert to the qualifies for safe harbor protection if: (1) by a government entity, subject to language in the 1999 final rule cited The waiver or reduction is not applicable exceptions promulgated by above. advertised or part of a solicitation; (2) CMS. CMS has explained that certain the pharmacy does not routinely waive cost-sharing waivers do not constitute 2. Cost-Sharing Waivers the cost-sharing; and (3) before waiving the provision of free services: Generally, the reduction or waiver of the cost-sharing, the pharmacy either A [State or local government] facility Medicare or other Federal health care determines in good faith that the which reduces or waives its charges for program cost-sharing amounts may beneficiary has a financial need or the patients unable to pay, or charges patients implicate the anti-kickback statute. Our pharmacy fails to collect the cost- only to the extent of their Medicare and other concern about potentially abusive sharing amount after making a health insurance coverage, is not viewed as waivers of cost-sharing amounts under reasonable effort to do so. If, however, furnishing free services and may therefore 7 the anti-kickback statue is longstanding. the waiver or reduction of cost-sharing receive program payment. For example, we have previously stated is made on behalf of a subsidy-eligible Notwithstanding the use of the term that providers and suppliers that individual (as defined in section ‘‘facility,’’ CMS has confirmed that this routinely waive Medicare cost-sharing 1860D–14(a)(3) of the Act), then provision would apply to an ambulance amounts for reasons unrelated to conditions (2) and (3) above are not provider or supplier that was owned individualized, good faith assessments required. We reiterate, however, that of financial hardship may be held liable compliance with the conditions of this 5 Section 104 of the Federally Recognized Indian under the anti-kickback statute. See e.g., safe harbor, as with all safe harbors, Tribe List Act of 1994, Public Law 103–454, 108 Stat. 4791, requires the Secretary to publish a list Special Fraud Alert, 59 FR 65372, 65374 protects a individual or an entity from of all federally recognized Indian tribes on an (Dec. 19, 1994). Such waivers may liability only under the anti-kickback annual basis. constitute prohibited remuneration to statute and the beneficiary inducements 6 See 42 CFR § 411.8. induce referrals under the anti-kickback CMP, pursuant to section 1128A(i)(6)(B) 7 CMS Medicare Benefit Policy Manual, Pub. No. statute, as well as violations of the CMP of the Act. Providers, practitioners, and 100–02, ch. 16, § 50.3.1.

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and operated by a State or a political services from a federally qualified would incorporate by reference the subdivision of a State and that was the health center (FQHC) that has a written following definitions of the terms Medicare Part B provider or supplier of agreement with the MA plan. Section ‘‘applicable beneficiary’’ and the emergency ambulance services. 237 of MMA amended 42 U.S.C. ‘‘applicable drug’’ which were added by We also would require that the 1395w–27(e) by adding a new paragraph a new section 1860D–14A(g) of the Act: ambulance provider or supplier offer the (3) regarding agreements between MA Applicable beneficiary means an reduction or waiver on a uniform basis, organizations and FQHCs. This new individual who, on the date of dispensing a without regard to patient-specific paragraph requires that the written covered part D drug— factors. In addition, we propose to agreement between the two entities (A) is enrolled in a prescription drug plan include an express prohibition against specifically provide that the MA or [a Medicare Advantage Prescription Drug claiming the amount reduced or waived organization will pay the contracting (MA–PD)] plan; as bad debt for payment purposes under FQHC no less than the level and amount (B) is not enrolled in a qualified retiree Medicare or a State health care program of payment that the plan would make prescription drug plan; (C) is not entitled to an income-related or otherwise shifting the burden of the for the same services if the services were subsidy under section 1860D–14(a); and reduction or waiver onto Medicare, a furnished by another type of entity. (D) who— State health care program, other payers, Section 237 also added a new statutory (i) has reached or exceeded the initial or individuals. We solicit comments on exception to the anti-kickback statute at coverage limit under section 1860D–2(b)(3) these proposed conditions. section 1128B(b)(3)(H) of the Act (42 during the year; and For purposes of this safe harbor, we U.S.C. 1320a–7b(b)(3)(H)). This (ii) has not incurred costs for covered part plan to interpret the term ‘‘ambulance exception protects ‘‘any remuneration D drugs in the year equal to the annual out- provider or supplier’’ as a provider or between a federally qualified health of-pocket threshold specified in section supplier of ambulance transport services 1860D–2(b)(4)(B). center (or an entity controlled by such Applicable drug means, with respect to an that furnishes emergency ambulance a health center) and an MA organization applicable beneficiary, a covered part D services. The term would not include a pursuant to a written agreement drug— provider or supplier of ambulance described in section 1853(a)(4) [of the (A) approved under a new drug application transport services that furnishes only Act].’’ 8 We propose to incorporate this under section 505(b) of the Federal Food, nonemergency transport services, exception into the safe harbor Drug, and Cosmetic Act or, in the case of a because the safe harbor would only regulations as new section 42 CFR biologic product, licensed under section 351 apply to the waiver of cost-sharing in 1001.952(z) and solicit comments on of the Public Health Service Act (other than connection with emergency ambulance a product licensed under subsection (k) of this proposal. such section 351); and services. We plan to interpret (B)(i) if the sponsor of the prescription ‘‘emergency ambulance services’’ in a 4. Medicare Coverage Gap Discount Program drug plan or the MA organization offering the manner consistent with the definition MA–PD plan uses a formulary, which is on given to that term in 42 CFR Section 3301 of ACA establishes the the formulary of the prescription drug plan 1001.952(v)(4)(iv). We solicit comments Medicare Coverage Gap Discount or MA–PD plan that the applicable on this interpretation and on whether Program, codified at section 1860D–14A beneficiary is enrolled in; these terms need to be expressly defined of the Act. Under this program, (ii) if the [prescription drug plan (PDP)] in the regulatory text of this safe harbor. prescription drug manufacturers enter sponsor of the prescription drug plan or the Finally, we are considering whether into an agreement with the Secretary to MA organization offering the MA–PD plan does not use a formulary, for which benefits to include reductions or waivers of cost- provide certain beneficiaries access to are available under the prescription drug sharing amounts owed under other discounts on drugs at the point of sale. plan or MA–PD plan that the applicable Federal health care programs (e.g., Section 3301(d) of ACA amends the beneficiary is enrolled in; or Medicaid) in the safe harbor. We solicit anti-kickback statute by adding a new (iii) is provided through an exception or comments on this consideration, and on subparagraph (J) to section 1128B(b)(3) appeal. of the Act to protect the discounts what additional or different safeguards, 5. Local Transportation if any, might be required to protect provided for under the Medicare against fraud, waste, and abuse. Coverage Gap Discount Program. To Pursuant to our authority at section This safe harbor would apply only to codify this self-implementing exception 1128B(b)(3)(E) of the Act, we propose to situations in which the governmental in our regulations, this proposed rule establish a new safe harbor at 42 CFR unit owns and operates the ambulance would add a new paragraph (aa) to the 1001.952(bb) to protect free or provider or supplier; it would not apply existing safe harbor regulations at 42 discounted local transportation services to contracts with outside ambulance CFR 1001.952. provided to Federal health care program providers or suppliers. For example, if This new paragraph (aa) would beneficiaries. We explored this issue in a municipality contracted with an protect a discount in the price of an the context of section 1128A(a)(5) in the outside ambulance provider or supplier ‘‘applicable drug’’ of a manufacturer past. According to the Act’s legislative for rendering services to residents of its that is furnished to an ‘‘applicable history, in enacting section 1128A(a)(5) service area, the municipality could not beneficiary’’ under the Medicare of the Act, Congress intended that the require the ambulance provider or Coverage Gap Discount Program under statute not preclude the provision of supplier to waive the collection from section 1860D–14A, as long as the complimentary local transportation of beneficiaries of out-of-pocket cost- manufacturer participates in, and is in nominal value (H.R. Conf. Rep. No. 104– sharing amounts unless the full compliance with all requirements 736 at 255 (1996)). We have interpreted municipality paid the cost-sharing of, the Medicare Coverage Gap Discount ‘‘nominal value’’ to mean no more than amounts owed or otherwise made Program. The proposed regulation $10 per item or service or $50 in the provisions for paying them. aggregate over the course of a year. (See 8 Section 1853(a)(4) of the Act (42 U.S.C. 1395w– 65 FR 24400, 24411; April 6, 2000.) As 3. Federally Qualified Health Centers 23(a)(4)) generally describes the payment rule for we previously indicated, we were and Medicare Advantage Organizations FQHCs that provide services to patients enrolled in MA plans that have an agreement with the FQHC, concerned that this interpretation may An individual enrolled in a Medicare including agreements required under 42 U.S.C. be overly restrictive in the context of Advantage (MA) plan may receive 1395w–27(e)(3). complimentary local transportation.

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Accordingly, we solicited public input comments on a number of safeguards unnecessary home health care on a number of issues as they related to and limitations related to this proposed prescriptions. To address this concern, a possible exception to section condition. we are considering excluding home 1128A(a)(5) of the Act (via 1128A(i)(6)) (a) We propose that the safe harbor health care providers from safe harbor for complimentary local transportation. protect free or discounted local protection when they furnish free or (67 FR 72892; Dec. 9, 2002) (2002 transportation offered or provided by discounted local transportation to their Solicitation). However, ultimately we any individual or entity, except as referral sources (but not excluding them did not propose or finalize an exception provided below (for purposes of this from protection when they provide such for complimentary local transportation. safe harbor, an ‘‘Eligible Entity’’), transportation to non-referral sources, On the basis of our experience in the subject to meeting all proposed such as pharmacies). We also solicit years since the 2002 Solicitation and safeguards herein. The term ‘‘Eligible comments on whether home health our continued concern that our Entity’’ in the proposed safe harbor agencies should be excluded from the interpretation of ‘‘nominal value’’ in the would not include individuals and definition of ‘‘Eligible Entity’’ entirely. context of complimentary local entities (or family members or others At this time, we propose that the safe transportation may be overly restrictive, acting on their behalf) that primarily harbor criteria apply equally to all we are proposing a safe harbor to the supply health care items (including, but Eligible Entities offering the eligible anti-kickback statute to protect not only not limited to durable medical forms of free or discounted local certain free local transportation but also equipment (DME) suppliers or transportation services. In addition to discounted local transportation that pharmaceutical companies) because we considering whether to exclude certain meets certain conditions. As explained believe that there may be additional risk types of providers or suppliers of above, by operation of section that these types of entities, which are services from protection as described 1128A(i)(6)(B), practices permissible heavily dependent upon practitioner above, we are also considering and under the safe harbor would also be prescriptions and referrals, would use solicit comments on whether there excepted from the definition of transportation arrangements to generate should be additional safeguards ‘‘remuneration’’ in section 1128A(i)(6) business for themselves by steering depending on the type of Eligible Entity of the Act. transported patients to those who order offering the transportation services and, The proposed safe harbor would their products. Moreover, these if so, what types of safeguards could be protect free or discounted local suppliers and manufacturers do not included to protect beneficial free or transportation made available to have the broader patient care discounted local transportation established patients (and, if needed, a responsibilities that, for example, arrangements while at the same time person to assist the patient) to obtain hospitals, health systems, clinics, and preventing abuses, such as medically necessary items and services. physicians have, and thus they would overutilization, improper patient We also seek comments on a second seem to have less need to engage in free steering, or use of free or discounted format of transportation that would be or discounted local transportation local transportation to generate referrals, akin to a shuttle service. We are mindful arrangements. We have similar concerns either referrals initiated by the that certain types of entities may have about the laboratory industry even transported patient or referrals from legitimate financial and patient care though laboratories furnish services providers and others to whom the interests in the provision of local rather than items. Thus, we propose to patients are transported. transportation to patients and that such exclude laboratories from the definition (b) We propose and solicit comments transportation could, depending on the of ‘‘Eligible Entity’’ and solicit on limiting safe harbor protection to free circumstances, benefit Federal health comments on that proposal. or discounted local transportation care programs through reduced costs For the same and other reasons, we offered to established patients. Thus, for and Federal beneficiaries through better are considering and solicit comments on example, once a patient has selected an care, access, and convenience. In an whether certain other types of oncology practice and has attended an effort to foster these beneficial providers, suppliers of services, or other appointment with a physician in the arrangements without permitting entities should be excluded, completely group, the physician could offer arrangements that negatively impact or partially, from protection as an transportation assistance to the patient beneficiaries or Federal health care Eligible Entity. In the context of who might have trouble reliably programs, the safe harbor would impose partially limiting protection as an attending appointments for a number of conditions on protected Eligible Entity, we are considering and chemotherapy. However, safe harbor free or discounted local transportation seek comments on whether certain types protection would not be available to a services as set forth below. of health care providers or suppliers of practice that offers or provides free or (1) We propose to require that the free services should not be protected when discounted transportation to new or discounted local transportation they provide free or discounted local patients. services be available only to established transportation to other health care (c) We propose to allow free or patients (as described in greater detail providers or suppliers who refer to discounted local transportation services below) and be determined in a manner them. For example, our oversight to the premises of a health care provider unrelated to the past or anticipated experience suggests that overutilization or supplier, subject to certain volume or value of Federal health care may be occurring in the home health limitations that we believe would program business. This requirement is industry. We are concerned that reduce the risk of using the intended to reduce the risk that a health protecting the provision of free or transportation services to increase care provider or supplier could use a discounted local transportation by home referrals. First, the safe harbor would transportation program for the purpose health care providers to physician not protect free or discounted local of increasing business by transporting offices that are actual or potential transportation that an Eligible Entity patients to its own premises or for the referral sources might result in both makes available only to patients who purpose of inappropriately inducing steering (inducing the physician to refer were referred to it by particular health referrals from other providers or to that particular home health care care providers or suppliers. Likewise, suppliers by transporting patients to provider) and overutilization in the the safe harbor would not protect an theirs. We propose and solicit form of unnecessary physician visits or offer of transportation that is contingent

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on a patient’s seeing particular provide free or discounted local Entities should be limited for purposes providers or suppliers who may be transportation to non-network or non- of safe harbor protection to providing referral sources for the Eligible Entity participating providers or suppliers and, transportation for medical purposes or if offering the transportation. These if so, under what conditions. Finally, if Eligible Entities should also be restrictions would not prohibit Eligible we were to have different standards protected under the safe harbor if they Entities from setting limitations on the applicable to entities that do not provide free or discounted local furnishing of free or discounted local directly furnish health care services, we transportation for other purposes that transportation, but they would require are interested in comments suggesting relate to the patient’s health care (e.g., that the limitations be unrelated to the safeguards to prevent abuses such as to apply for government benefits, to volume or value of referrals. For overutilization, improper patient obtain counseling or other social example, a hospital could place a limit steering, and increased costs. services, or to get to food banks or food of 10 miles or a limit on the number of (d) We also propose to require that the stores). We would not protect trips on its offer to transport a patient offer or granting of free or discounted transportation for purposes wholly to another health care provider or local transportation services not be unrelated to health care, such as supplier for the purpose of obtaining based on the type of treatment a patient transportation to entertainment or items or services necessary to avoid might receive. Under the proposed safe sporting events. We note, however, that hospital readmissions. It could not, harbor, an Eligible Entity would be the anti-kickback statute prohibits however, limit the offer of permitted to restrict offers of free or offering or providing remuneration to transportation to patients who receive discounted local transportation to induce referrals for or receiving items or patients whose conditions require these items or services from the services paid for by Federal health care frequent or critical (e.g., follow-up hospital’s referral sources. We are programs. The provision of testing for a drug that has the potential considering and seek comments on any transportation for non-medical for serious side effects) appointments, additional safeguards that would be purposes, even by a provider or supplier but who do not have reliable required to limit the risk of fraud and of health care services, would not transportation. In practice, this means abuse associated with one health care necessarily violate the statute, that a free or discounted local depending on the facts and provider or supplier providing transportation offer might be restricted circumstances. For example, a hospital transportation to the premises of to patients with chronic conditions, or could potentially sponsor shuttle another, as well as on whether one even, in some circumstances, to patients service between a housing complex and provider or supplier of services should with a specific illness. However, a grocery store without running afoul of be permitted to provide free or limiting offers of transportation to the statute, if the service were available discounted local transportation to the patients who have been prescribed to all residents of the complex premises of others at all. For example, expensive treatments that are lucrative regardless of whether they were or if the safe harbor is to cover for the Eligible Entity offering the would become patients of the hospital. transportation provided by one health transportation (or a referral source, We are considering and solicit care provider to the premises of another, parent company, subsidiary, or other comments on whether the safe harbor should it be required that the patient be affiliated entity of the Eligible Entity) should separately protect transportation an established patient of the provider or would not be protected. For example, an supplied by an Eligible Entity, such as supplier to which the patient would be oncology group that offered an a hospital, in the form of bus or van transported, as well as an established expensive radiation treatment in its service on regular routes that include patient of the Eligible Entity offering the office could not restrict its offers of neighborhoods served by the hospital, transportation? We also recognize that transportation to patients who require public transportation stops, and the health systems, health plans, the lucrative radiation treatments. The hospital campus or other locations accountable care organizations, or other group could, however, offer where referring physicians have offices. integrated networks of providers and transportation to patients who require If we were to protect this type of suppliers might be Eligible Entities and frequent appointments to monitor their transportation, protection would not might seek to establish a free or condition, even if some of those patients necessarily be limited to established discounted local transportation program also would receive the radiation patients of an Eligible Entity. We only among providers and suppliers treatment. We solicit comments on this recognize that certain communities may within the system or network. We seek proposal. have a need for this type of service, but comments on the impact on those (e) In addition, we are considering we also recognize that such a service potential programs if we include, as and seek comments on whether to presents opportunities for fraud and conditions of safe harbor protection, the require Eligible Entities to maintain abuse. Thus, we solicit comments not restrictions on offers of transportation documented beneficiary eligibility simply on whether this type of service set forth in this section. We are criteria, such as a requirement that the would be useful but also on what considering whether, and if so, how, the patient show transportation need or additional safeguards we could include safe harbor conditions should be financial need or that the transportation to reduce the risk that Eligible Entities modified to account for differences that assistance would address risks would use this service to bring in may exist when these kinds of entities associated with failure to comply with patients for unnecessary services, provide free or discounted local a treatment regimen. Offering leading to overutilization or transportation. We are also considering transportation to patients solely on the compromised quality of care. whether, for these kinds of entities, safe basis of number of appointments, (2) We propose to limit the form of harbor protection should apply only to without regard to transportation need, transportation by excluding from safe free or discounted local transportation raises the possibility that the offer might harbor protection air, luxury (e.g., provided to destinations that are be based upon the volume of Federal limousine), and ambulance-level participating or network providers or health care program business and thus transportation. suppliers; conversely, we are would not be protected. (3) We propose and solicit comments considering whether such entities (f) Finally, we are considering and on the following limitations, which should be permitted or required to solicit comments on whether Eligible would be designed to exclude from

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protection transportation that is, in We recognize that a distance-based and not shift the burden of these costs reality, a means for providers and test is not a one-size-fits-all solution. onto Medicare, a State health care suppliers to pay for recruitment of Therefore, we are considering and seek program, other payers, or individuals. patients. First, we propose to exclude comments on other reasonable methods Moreover, safe harbor protection would from safe harbor protection for interpreting the term ‘‘local’’ either not be available if the Eligible Entity transportation services that are publicly alone or in combination with the 25- providing the transportation and the advertised or marketed to patients or mile deeming provision. For example, destination provider or supplier had any others who are potential referral we are considering and solicit referral agreement tied to the sources. Second, we propose that the comments on: transportation. For example, if an safe harbor would not apply if Eligible • Whether to allow a more expansive ambulance supplier had an agreement Entities were to pay drivers or others service area for patients who reside in with a hospital to provide certain free involved in arranging the transportation rural or underserved areas, and if so, transports to hospital outpatients (e.g., on a per-beneficiary transported basis, what the appropriate test should be and via van service) in exchange for rather than, for example, on an hourly if ‘‘rural’’ or ‘‘underserved’’ should be receiving the hospital’s transports that or mileage basis. Third, no safe harbor defined; are payable by Medicare Part B, the free protection would be available if Æ If we were to include definitions, transportation would not be protected. marketing of health care items and we solicit comments on: (1) Defining B. Civil Monetary Penalty Authorities services occurred during the course of ‘‘underserved’’ as being located either in the transportation. For purposes of this a Health Professional Shortage Area or This proposed rule would amend 42 safe harbor condition, we would not a Medically Underserved Area; and (2) CFR Part 1003 in two ways. First, we consider signage on the vehicle using the definition of ‘‘rural’’ accepted propose to amend the definition of designating the source of the by the Office of Rural Health Policy (i.e., ‘‘remuneration’’ related to the transportation (e.g., the name of the all counties outside a Metropolitan beneficiary inducements CMP to: (a) hospital) to be ‘‘marketing.’’ Statistical Area (MSA), plus counties Add a self-implementing exception that (4) We propose to protect only local within MSAs with Rural-Urban was enacted in BBA of 1997 but was transportation services provided: (a) To Commuting Codes 4–10). We also solicit never codified in our regulations; and the patient and, if needed, a family comments on alternate definitions for (b) codify amendments that were member or other person to assist the these terms; enacted in ACA. Second, we propose to patient, to obtain medically necessary Æ If we were to deem a greater codify in our regulations the items or services and (b) within the distance to be ‘‘local’’ in rural or Gainsharing CMP by interpreting terms local area of the health care provider or underserved areas, we solicit comments used in that statute and adding a supplier to which the patient would be on expanding the distance to 35 miles definition of ‘‘hospital’’ to the transported. We propose permitting the or to the nearest facility capable of regulations. free or discounted local transportation providing medically necessary items 1. Beneficiary Inducements CMP to be extended to a family member, a and services, whichever is greater; This proposed rule would add friend, or other person involved in the • whether to permit free or exceptions to the regulations at Part patient’s care. We recognize that it may discounted local transportation to the 1003 addressing the civil monetary be beneficial or necessary in some nearest facility capable of providing penalties prohibition against offering circumstances for the patient to be medically necessary items and services, accompanied by another person, and we inducements to Medicare or Medicaid even if the beneficiary resides farther do not view this extension as increasing beneficiaries that the offeror knows or away than the proposed mileage limits the risk of fraud and abuse. We do not should know are likely to influence the would otherwise allow; intend to require that the need for a selection of particular providers, • whether travel time might be more patient companion be documented, nor practitioners or suppliers.10 As we appropriate than a distance-based do we intend that transportation of a explained in footnote 2 above, one method; patient companion be required for the exception to the definition of • whether the general approach used proposed safe harbor to apply to ‘‘remuneration’’ for purposes of the in the regulations governing exceptions transportation of the patient. beneficiary inducements CMP to the self-referral prohibition related to Finally, we propose to limit the safe incorporates exceptions to the anti- compensation arrangements regarding harbor to local transportation. In the kickback statute and the safe harbor ‘‘geographic area served by the interest of providing clear guidance, we regulations. However, no parallel hospital,’’ which uses a calculation propose that if the distance that the exception exists in the anti-kickback based on the contiguous ZIP Codes from patient would be transported is no more statute. Thus, the exceptions in section which hospitals draw at least 75 percent than 25 miles, then the transportation 1128A(i)(6) of the Act apply only to the of their inpatients (see 42 CFR would be deemed to be local. We solicit definition of ‘‘remuneration’’ applicable 411.357(e)(2)), would be useful; and comments on whether 25 miles is an to section 1128A. • whether a more general approach, appropriate distance for this deeming Section 4523 of the BBA of 1997 such as transportation offered to provision. We also solicit comments on added section 1833(t)(5)(B) of the Act, patients within the primary service area whether 25 miles should be a fixed which required the Secretary to of the provider or supplier (or other limitation rather than a distance establish a procedure to permit location) to which the patient would be ‘‘deemed’’ to comply with the safe hospitals to elect to reduce copayment transported, would be appropriate. harbor.9 amounts for some or all covered We solicit comments on all of these hospital outpatient department (OPD) 9 If 25 miles is a fixed limitation, nothing beyond possible approaches, and we will services (as defined in section that distance would be ‘‘local’’ under the safe consider alternative suggestions as well. 1833(t)(1)(B)) to no less than 20 percent harbor, unless the final rule includes alternate tests. (5) We propose requiring the Eligible If 25 miles is deemed to be local, an Eligible Entity of the Medicare OPD fee schedule could still comply with the ‘‘local’’ requirement Entity that makes the transportation beyond 25 miles under appropriate facts and available to bear the costs of the free or 10 For additional background on this provision, circumstances. discounted local transportation services see 65 FR 24400 (Apr. 26, 2000).

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amount. The Secretary established the protects ‘‘any other remuneration which patient’s medical care, such as social required procedures at 42 CFR 419.42. promotes access to care and poses a low services. Section 4523 of the BBA of 1997 also risk of harm to patients and Federal We propose to interpret the phrase added subsection (D) to the definition of health care programs (as defined in ‘‘low risk of harm to Medicare and ‘‘remuneration’’ at section 1128A(i)(6) of section 1128B(f) and designated by the Medicaid beneficiaries and the the Act. That subsection, which was Secretary under regulations).’’ Medicare and Medicaid programs’’ as subsequently redesignated subsection For purposes of this exception, we meaning that the remuneration: (1) Is (E), excluded from the definition of propose that the phrase ‘‘promotes unlikely to interfere with, or skew, ‘‘remuneration’’ ‘‘a reduction in the access to care’’ mean that the clinical decision-making; (2) is unlikely copayment amount for covered OPD remuneration provided improves a to increase costs to Federal health care services under section 1833(t)(5)(B) [of particular beneficiary’s ability to obtain programs or beneficiaries through the Act].’’ Id. Subsequent to the BBA of medically necessary health care items overutilization or inappropriate 1997, sections 201(a) and 202(a) of the and services. We solicit comments on utilization; and (3) does not raise Medicare, Medicaid, and SCHIP whether this phrase should be patient-safety or quality-of-care Balanced Budget Refinement Act of interpreted more broadly, particularly in concerns. 1999 (106 Pub. L. 113) redesignated light of the movement towards While some forms of remuneration subsection 1833(t)(5) as section coordinated or integrated care covered by the prohibition at section 1833(t)(8). A corresponding change to arrangements that depend, in part, on 1128A(a)(5) of the Act may promote the reference at 1128A(i)(6)(E) was not patient engagement. For example, we access to care and some forms may pose made. We propose to codify the are considering whether to interpret a low risk of harm to Medicare and exception to the definition of ‘‘promotes access to care’’ to include Medicaid beneficiaries and the programs, the amendment to the statute ‘‘remuneration’’ at 1128A(i)(6)(E) in our encouraging patients to access care, applies only to forms of otherwise regulations at proposed 42 CFR supporting or helping patients to access prohibited remuneration that meet both 1003.110 (current § 1003.101). We care, or making access to care more of these standards. By way of example, propose to adopt language identical to convenient for patients than it would through our advisory opinion process, the statutory language, except that we otherwise be. We request that any such we have examined and approved propose to change the reference from comments include specific examples of arrangements that meet both 1883(t)(5)(B) to 1883(t)(8)(B) to reflect remuneration that would promote requirements. In these arrangements, the redesignation of the originally access to care under a broader definition referenced subsection. We believe that certain hospitals provide lodging that would not be included within the our proposed change is consistent with assistance to patients and their families proposed interpretation above. When congressional intent and merely when the assistance was necessary for providing examples, we request that addresses an inadvertent oversight. We the patient to obtain appropriate care. commenters bear in mind that not all solicit comments on this proposal. Because of the specialized nature of Section 6402(d)(2)(B) of ACA amends forms of remuneration provided to these hospitals, the lodging programs the statutory definition of beneficiaries would be prohibited by the were unlikely to steer patients to those ‘‘remuneration’’ at section 1128A(i)(6) of beneficiary inducements CMP. The particular hospitals, and the costs were the Act by adding four new beneficiary inducements CMP applies not passed on to Federal programs. Yet, subparagraphs, (F)–(I), protecting only to remuneration that the donor the programs enabled patients to get certain charitable and other programs. ‘‘knows or should know is likely to treatment that they might not otherwise We propose to amend the definition of influence [the recipient] to order or have been able to access because of ‘‘remuneration’’ in the regulations to receive from a particular provider, logistical hurdles. See OIG Advisory include the new statutory exceptions. practitioner, or supplier any item or Opinion Nos. 11–01 and 11–16. We believe these exceptions are service for which payment may be Similarly, we believe that giving items intended to protect certain arrangements made’’ by Medicare or Medicaid. Thus, that are necessary for patients to record that offer beneficiaries incentives to remuneration that is not likely to and report health data, such as blood engage in their wellness or treatment influence a beneficiary to order or pressure cuffs or scales, to beneficiaries regimens or that improve or increase receive federally reimbursable items or who could benefit from close beneficiary access to care, including services from a particular provider, monitoring of their blood pressure or better care coordination. However, in practitioner, or supplier need not meet weight, promotes access to care, because structuring the proposals, we are also the conditions of this or any other the recording and reporting of health mindful of the significant potential for exception. data increase their ability to obtain abusive arrangements that offer We are also considering, and medically necessary care and pose a low vulnerable beneficiaries (or, in some soliciting comments on, whether the test risk of harm to patients and Federal cases, cooperating beneficiaries) for the exception should be that the programs as long as receipt of the items remuneration, whether in cash or in remuneration would promote access to is not conditioned on the patient kind, to induce them to obtain items or care for a particular beneficiary or obtaining other items or services from a services billable to Medicare or whether the exception should also particular provider or supplier. Medicaid that may be unnecessary, too apply to remuneration that promotes However, not every program that expensive, or of poor quality. The access to care for a defined beneficiary benefits patients would meet the terms proposals set forth below aim to ensure population generally, such as, by way of of this exception. We continue to that additional protections offered for example, beneficiaries in a designated believe that offering valuable gifts to arrangements that benefit patient care care network or beneficiaries being beneficiaries in connection with direct do not lead to such abuses. treated under a designated care or indirect marketing activities is not protocol. Finally, we are considering, low risk to beneficiaries or to the Promotes Access/Low Risk of Harm and soliciting comment on, whether we Medicare and Medicaid programs. In The first new exception to the should more broadly interpret ‘‘access addition, we are concerned that rewards definition of ‘‘remuneration,’’ added at to care’’ to include care that is non- offered by providers or suppliers to section 1128A(i)(6)(F) of the Act, clinical but reasonably related to the patients purportedly for compliance

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with a treatment regimen pose a risk of means, some of which could involve (ii) the items or services are offered or abuse, in cases when the offerors know providing incentives to beneficiaries. transferred on equal terms available to the or should know that the rewards are These programs include, for example, a general public, regardless of health insurance likely to influence the recipients to variety of permanent and demonstration status; and (iii) the offer or transfer of the items or order or receive from a particular source programs testing accountable care services is not tied to the provision of other items or services paid for by Medicare organizations, medical homes, bundled items or services reimbursed in whole or in or Medicaid. For example, patients payments, coordinated care programs, part by the program under title XVIII or a might seek or agree to seek unnecessary and other initiatives to improve the State health care program (as defined in or poor quality care to obtain the quality of care and reduce costs. Some section 1128(h)). rewards, or providers and suppliers participants in particular CMS models, This exception concerns retailer might order or seek orders for additional such as the Bundled Payment for Care rewards programs. We are aware that items or services to recoup the costs of Initiative, may have waivers of the CMP this genre of program has proliferated in giving the rewards. In either case, such for certain arrangements undertaken as recent years at grocery stores, drug rewards would not be low risk for part of the applicable CMS model.11 stores, ‘‘big-box,’’ and other retailers. patients and/or Federal health care With respect to CMS programs or Although these retailer rewards programs. models to which a waiver does not programs vary in design, in general most While we are concerned about the apply, we are considering whether to attempt to incentivize and reward significant potential for abuse when make a special provision in this rule for customer loyalty by providing benefits patients are offered rewards to induce incentives offered by participants to to shoppers. Many retailers offering them to receive items or services, we are beneficiaries covered by those programs. such programs have pharmacies that sell also aware that, in some circumstances, Many of these programs have safeguards items or services reimbursable by patients might be offered incentives to built into their structures. For example, Federal health care programs. encourage them to engage in CMS reviews and monitors these OIG has interpreted the prohibition arrangements that lower health care programs, beginning with an application on offering gifts and other inducements costs (without compromising quality) or process, continuing through the to beneficiaries as permitting Medicare that promote their own wellness and development and implementation or Medicaid providers generally to offer health care, for example, by phases, and including a final assessment beneficiaries inexpensive gifts or participating fully in appropriate of the overall impact of the program on services (other than cash or cash prescribed treatment, achieving cost and quality of care. Because equivalents) without violating the appropriate treatment milestones, or incentives offered to beneficiaries to statute. For enforcement purposes, we following up with medically necessary foster patient engagement outside the have considered inexpensive gifts or appointments. We seek comments on auspices of such a CMS program are not services to be those that have a retail whether otherwise prohibited incentives subject to this oversight, we would not value of no more than $10 individually for compliance with treatment regimens necessarily consider that remuneration and no more than $50 in the aggregate should be permitted under this (if otherwise prohibited by the annually per patient.12 Notwithstanding exception and if so, what limitations or beneficiary inducements CMP) to be low this interpretation, we understand that safeguards should be required. For risk, unless it met the same safeguards many retailer reward programs have example, should the incentives be that we finalize in connection with this included a blanket exclusion of Federal subject to specific dollar value limits? proposed rule. health care program beneficiaries. Should providers or suppliers offering We are also soliciting comments on Against this backdrop, we believe this the incentives be required to document other types of remuneration to new exception should increase retailers’ the milestones reached to earn the beneficiaries not mentioned in this willingness to include Federal health incentives? Should the form of the preamble that both promote access to care program beneficiaries in their incentive be required to bear a care and pose a low risk of harm to reward programs in appropriate reasonable connection to the medical Medicare and Medicaid beneficiaries circumstances. care? Are there quality or performance and the Medicare and Medicaid Section 6402(d)(2)(B) of ACA metrics or monitoring mechanisms that, programs, to inform our development of excludes from the definition of if required for safe harbor compliance, regulatory text for this exception. We ‘‘remuneration’’ rewards pursuant to a would help ensure that protected are not providing regulatory text at this retailer rewards program that meet three patient incentives are not used to time, but we solicit proposals for criteria. The first criterion provides that facilitate abusive arrangements that language, including specific examples of the free or less-than-fair-market-value increase costs or compromise quality? the types of remuneration to items or services must ‘‘consist of Are there different considerations if the beneficiaries, that would implement the coupons, rebates, or other rewards from offeror of the incentive is at risk, in principles described above. a retailer.’’ We propose to interpret whole or in part (or directly or Retailer Rewards Programs these terms as follows. We interpret a indirectly) for the treatment that the ‘‘coupon’’ as something authorizing a incentive is intended to encourage (e.g., Section 6402(d)(2)(B) of ACA adds the discount on merchandise or services. if the offeror is a risk-bearing following exception as new section For instance, if Alpha Store’s rewards accountable care organization, medical 1128A(i)(6)(G) of the Act: program mails its customers a flyer home, or health plan; a hospital subject The offer or transfer of items or services for offering 20 percent off the purchase to readmissions penalties; or a provider free or less than fair market value by a price of any item in the store, the flyer reimbursed under a bundled payment person, if— would be considered a coupon. Another arrangement that includes some or all of (i) the items or services consist of coupons, example of a coupon would be a ‘‘buy the incentivized treatment)? rebates, or other rewards from a retailer; We recognize that the Department is one get one free’’ reward. We propose to undertaking a number of initiatives and 11 Nothing in this proposed rule would change the application of existing waivers. It is possible 12 See Special Advisory Bulletin: Offering Gifts demonstration programs with the goal of that a final exception, as proposed here, might offer and Other Inducements to Beneficiaries, available at encouraging better care and better additional protection for participants in programs http://oig.hhs.gov/fraud/docs/alertsandbulletins/ health at lower costs through innovative that have such a waiver. SABGiftsandInducements.pdf.

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interpret ‘‘rebate’’ as a return on part of services to federally reimbursable explained in the preamble to that final a payment. For example, if Beta Store’s services as requiring a complete rule (‘‘we are excluding from the scope retailer reward program consisted of severance of the offer from the medical of permissible exceptions cash and returning to customers a store credit care of the individual. At the front end instruments convertible to cash’’ (65 FR equal to 1 percent of the total money the of a transaction (‘‘earning’’ the reward), 24400, 24409 (Apr. 26, 2000)). Other customer spent out-of-pocket at the the reward should not be conditioned proposed limits on what may be retailer during the previous calendar on the purchase of goods or services transferred are discussed in the year, it would constitute a rebate. In no reimbursed in whole or in part by a paragraphs below. event, however, could a retailer ‘‘rebate’’ Federal health care program and should The statute provides that protected an amount that exceeds what the not treat federally reimbursable items items or services may not be offered as customer spent at the store. We propose and services in a manner that is part of any advertisement or solicitation. to interpret ‘‘other rewards’’ primarily different from that in which non- We are including this requirement in as describing free items or services, such reimbursable items and services are our proposed regulation. as store merchandise, gasoline, frequent treated. For instance, a drugstore The second statutory criterion is that flyer miles, etc. Finally, we interpret program that offered a $20 coupon to ‘‘the items or services are not tied to the ‘‘retailer’’ as having its usual meaning, customers, including Medicare provision of other services reimbursed i.e., an entity that sells items directly to beneficiaries, who transferred their in whole or in part by the program consumers. We note, however, that prescriptions to the drugstore would not under title XVIII or a State health care individuals or entities that primarily meet this criterion because the $20 program. . . .’’ To interpret this provide services (e.g., hospitals or coupon would be tied to the drugstore’s criterion in a meaningful way, it is physicians) would not be considered getting the recipients’ Medicare Part D necessary to consider it together with ‘‘retailers.’’ We are considering and prescription drug business. On the other the next requirement, which is that solicit comments on whether entities hand, a program that awarded a $20 there must be a reasonable connection that primarily sell items that require a coupon once a customer spent $1,000 between the items or services and the prescription (e.g., medical equipment out-of-pocket in the store—even if a medical care of the individual. Each stores) should be considered ‘‘retailers.’’ portion of that $1,000 included requirement is discussed in more detail The second criterion requires that the copayments for prescription drugs— below. items or services be offered or would likely meet the criterion. We also To be protected under the statute, the transferred on equal terms to the public, believe that this attenuation must be item or service being offered or regardless of health insurance status. present on the ‘‘redeeming’’ end of the transferred must not be tied to the We propose to interpret this transaction and therefore interpret it to provision of other reimbursed services. requirement consistent with OIG’s exclude from protection rewards Consistent with our interpretation of the longstanding concern that providers and programs in which the rewards same criterion described in connection suppliers of items or services themselves are items or services with the exception for retailer rewards reimbursable in whole or in part by reimbursed in whole or in part by a programs described above, we do not Federal health care programs not Federal health care program. Thus, if interpret the prohibition on tying the discriminate against (‘‘lemon drop’’)— Epsilon Store allowed its customers to free or below-market items and services or, conversely, ‘‘cherry pick’’—certain redeem reward points only for cost- to services reimbursable by Medicare or patients on the basis of health insurance sharing (i.e., the customer’s out-of- Medicaid as requiring a complete status. For example, we do not believe pocket costs) on DME, prescription severance of the offer from the medical that a retailer that targets its rewards drugs, or other federally payable items care of the individual. However, a program to Medicare beneficiaries only or services, that program would not provider’s conditioning the offer or would meet this criterion. On the other meet this criterion. On the other hand, transfer of items or services on the hand, if a retailer mailed a coupon for if the $10 coupon referenced in the first patient’s use of other services from the $10 off the next purchase of any item in example could be redeemed on anything provider that would be reimbursed by its store, including prescriptions, to purchased in the store, including the Medicare or Medicaid would violate every resident in the surrounding ZIP customer’s out-of-pocket costs for this requirement. For example, we Code, such a promotion likely would be federally reimbursable items, the interpret this criterion to exclude from in compliance with this provision coupon could meet the terms of the protection offers by providers of lodging because the coupon would be offered on exception. or transportation to receive a particular equal terms to everyone in the ZIP Code, 13 Financial-Need-Based Exception service from the provider. We solicit without regard to health insurance comments on this interpretation. status. A third new statutory provision, The third statutory requirement is that The third criterion requires that the added at 1128A(i)(6)(H) of the Act, there ‘‘is a reasonable connection offer or transfer of the items or services excepts from the definition of between the items or services and the not be tied to the provision of other ‘‘remuneration’’ the offer or transfer of medical care of the individual.’’ We items or services reimbursed in whole items or services for free or at less than must interpret this requirement in the or in part by Medicare or an applicable fair market value after a determination context of this particular exception. State health care program. We believe that the recipient is in financial need This exception is designed to help that the objective of this criterion is to and meets certain other criteria. financially needy individuals access We begin our consideration of this attenuate any connection between items or services related to their medical federally payable items and services and new provision by noting that it concerns a loyalty program’s rewards; this ‘‘the offer or transfer of items or 13 As explained above, we have approved lodging attenuation should be present both in services.’’ The term ‘‘items or services’’ and transportation assistance programs through our the manner in which a reward is earned does not include cash or instruments advisory opinion process. However, we found that and in the manner in which the reward convertible to cash. This interpretation the programs were consistent with the exception to the definition of ‘‘remuneration’’ for programs that is redeemed, as explained further below. is consistent with our interpretation of promote access to care and pose a low risk of harm We do not interpret the prohibition on ‘‘permissible incentives for preventive to patients and Federal health care program tying the free or below-market items and care’’ under section 1128A(i)(6)(D), as beneficiaries.

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care; unlike the preventive care bicycle helmets or other child safety based on objective criteria and be exception referenced above, this devices to financially needy families appropriate for the applicable locality. exception is not designed to induce the when children are treated for injuries in Under our proposal, ‘‘financial need’’ patient to seek additional care. the emergency department? We use this would not be limited to ‘‘indigence,’’ For purposes of this requirement, we example, which arguably is not related but could include any reasonable interpret ‘‘medical care’’ to refer to the to ‘‘care,’’ in order to inform comments measure of financial hardship. What treatment and management of illness or on the limits of the ‘‘reasonable constitutes a good faith determination of injury and the preservation of health connection to care’’ requirement. ‘‘financial need’’ may vary depending through services offered by the medical, From a financial perspective, transfers on the individual patient’s dental, pharmacy, nursing, and allied of items or services of circumstances; the individual or entity health professions. Consistent with the disproportionately large value compared offering the items or services should statutory language, our proposed with their medical benefit for the have flexibility to consider relevant regulation would require a ‘‘reasonable individual patient would not qualify. variables. We are considering whether connection’’ between the remuneration For example, transfer to a diabetic we have authority to require and the patient’s medical care. Whether patient of a smartphone preloaded with documentation of the financial need a ‘‘reasonable connection’’ exists an ‘‘app’’ relating to management of assessment as a condition of the depends on a situation’s specific facts blood sugar levels would not likely exception. Regardless, it would be and circumstances. In particular, this qualify, while an offer to the diabetic prudent for those seeking protection requirement warrants a dual patient of only a complimentary under the proposed exception to consideration: Whether a reasonable download of the app onto his or her maintain accurate and contemporaneous connection exists from a medical own smartphone might. documentation of the need assessment perspective and whether a reasonable We are considering whether we can and the criteria applied. connection exists from a financial (and, if so, whether we should) identify Waivers of Cost-Sharing for the First Fill perspective. A reasonable connection specific conditions under which of a Generic Drug exists from a medical perspective when remuneration would be deemed to be the items or services would benefit or ‘‘reasonably connected’’ to the patient’s The fourth new provision added at advance identifiable medical care or medical care, and we solicit suggestions section 1128A(i)(6)(I) of the Act excepts treatment that the individual patient is for possible conditions. For example, from the definition of ‘‘remuneration’’ receiving. From a financial perspective, one condition we are considering is waivers by a PDP sponsor of a Part D remuneration disproportionately large whether the patient’s physician or other plan or MA organization offering MA– compared with the medical benefits health care professional has concluded PD plans of any copayment that would conferred on the individual patient that the items or services would benefit be otherwise owed by their enrollees for would not have a reasonable connection the individual patient’s treatment. the first fill of a covered Part D drug that to the patient’s medical care. Such Another possible condition is whether, is a generic drug. Section 6402(d)(2)(B) remuneration gives rise to an inference absent the transfer of needed health care of ACA does not define the term that at least part of the transfer is being items or services, the patient would ‘‘generic drug,’’ so we propose to rely on provided to induce beneficiaries to otherwise be expected to lack access to the definition in the Part D regulations obtain additional services, and such them for reasons including lack of at 42 CFR 423.4. remuneration would not be covered by payment resources; lack of appropriate The type of waiver described in the the Financial-Need-Based Exception. health care facilities in the patient’s statute is designed to minimize drug Examples of transfers of items or community or the surrounding areas; costs by encouraging the use of lower services that, in context, might qualify and unique physical, behavioral, or cost generic drugs. To implement this as reasonably connected to medical care mental health issues that might interfere waiver, we propose interpreting this include: with the patient’s ability to otherwise statutory provision consistently with • Distribution of protective helmets obtain access. Such circumstances in a current CMS guidance. Thus, sponsors and safety gear to hemophiliac children; patient’s case would support the desiring to offer these waivers to their • distribution of pagers to alert argument for a reasonable connection. enrollees would be required to disclose patients with chronic medical We solicit comments about what this incentive program in their benefit conditions to take their drugs; additional or alternative factors should plan package submissions to CMS. We • provision of free blood pressure be considered, if any, in the propose to include this requirement checks to hypertensive patients; determination of a reasonable both to ensure consistency with current • distribution of free nutritional connection between items or services CMS practice and to ensure supplements to malnourished patients offered or transferred and the medical transparency to beneficiaries when they with end-stage renal disease (ESRD); care of the individual. select Part D or MA plans. We propose and The fourth and final statutory to make this exception effective for • provision of air conditioners to requirement is that the items or services coverage years beginning after asthmatic patients. may be provided only ‘‘after publication of the final rule. We note, However, in another context, these determining in good faith that the however, that CMS already permits same items and services would not individual is in financial need.’’ We these waivers as part of Part D and MA likely qualify as reasonably connected propose to interpret this provision as plan benefit designs. Although this to an individual patient’s medical care. requiring an individualized assessment proposed regulation will not be effective Most obviously, these would include of the patient’s financial need on a case- until a future date, we will not exercise transfers of items or services to an by-case basis. Moreover, the assessment our enforcement authority against plans individual for whom they were not must be conducted in good faith. We complying with CMS requirements for medically indicated. We are considering believe, among other things, that a good these waivers in the interim. and seek comments, however, on the faith assessment requires the use of a boundaries of the concept of ‘‘medically reasonable set of income guidelines, 2. Gainsharing indicated.’’ For example, should a uniformly applied. This reasonable set The Gainsharing CMP is a self- hospital be permitted to provide free of financial need guidelines should be implementing law that prohibits

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hospitals and critical access hospitals Physician-Owned Specialty Hospitals provisions of section 3022. In the from knowingly paying a physician to (March 2005) (MedPAC Report). The Interim Final Rule implementing the induce the physician to reduce or limit MedPAC Report provided examples of Shared Savings program waivers, the services provided to Medicare or safeguards included in OIG advisory Secretary waived the Gainsharing CMP Medicaid beneficiaries who are under opinions and posited that gainsharing with respect to certain aspects of the the physician’s direct care. We proposed programs could lead to program savings Shared Savings program, subject to regulations in 1994 to interpret the over time. See id. at p. 46. applicable conditions. See 76 FR 67992 Gainsharing CMP (59 FR 61571 (Dec. 1, Later that year, the Chief Counsel to (Nov. 2, 2011). 1994)), but the proposed rule was not the Inspector General testified to the Both government and private insurers finalized. In July 1999, we published a House Committee on Ways and Means have increased efforts to lower costs and Special Advisory Bulletin titled about gainsharing. The testimony improve the quality of care. Better ways ‘‘Gainsharing Arrangements and CMPs highlighted three types of safeguards of measuring quality and outcomes exist for Hospital Payments to Physicians to that the OIG looked for when evaluating now than in the past. The growth of Reduce or Limit Services to the risks posed by a gainsharing health information technology, Beneficiaries’’ (the Gainsharing SAB), program: Measures that promote developments in data analytics and available at: https://oig.hhs.gov/fraud/ accountability, adequate quality quality metrics, and broader use of docs/alertsandbulletins/gainsh.htm. In controls, and controls on payments that evidence-based medicine all facilitate the Gainsharing SAB, we explained that may change referral patterns. See such measurements and accountability the Gainsharing CMP is broad and Testimony of Lewis Morris, Chief for performance. For example, the prohibits any hospital incentive plan Counsel to the Inspector General, House Shared Savings program, as enacted, that involves payments to physicians to Committee on Ways and Means, promotes an evidence-based medicine encourage reductions or limitations in Subcommittee on Health (October 7, approach for accountable care items or services provided to patients 2005), available at https://oig.hhs.gov/ organizations participating in the under the physicians’ clinical care. We testimony/docs/2005/Gainsharing10-07- Shared Savings program (ACOs): ‘‘[t]he observed that the statute does not limit 05.pdf. Although the testimony focused ACO shall define processes to promote this prohibition to reductions or largely on specific risks in gainsharing evidence-based medicine and patient limitations of medically necessary items programs, and safeguards to counteract engagement, report on quality and cost or services. those risks, the testimony also explained measures, and coordinate care, such as We have previously observed that not that if properly structured, ‘‘gainsharing through the use of telehealth, remote all changes in practice necessarily arrangements may offer opportunities patient monitoring, and other such constitute a reduction of services. for hospitals to reduce costs without enabling technologies.’’ Section Health care payment and delivery causing inappropriate reductions in 1899(b)(2)(G) of the Act. systems are changing, with greater medical services or rewarding referrals Notwithstanding these and similar emphasis on accountability for of Federal health care program developments, the Gainsharing CMP has providing high quality care at lower patients.’’ Id. at p. 1. In fact, OIG would not been amended by Congress. It costs. We propose to codify the be unlikely to bring a case against a prohibits a hospital from knowingly Gainsharing CMP in our regulations and hospital or physician for a gainsharing making a payment, directly or interpret certain provisions in a manner arrangement that included patient and indirectly, to a physician as an that reflects today’s health care program safeguards such as those inducement to reduce or limit services landscape. identified in our advisory opinions.15 provided to Medicare or Medicaid OIG has recognized that gainsharing In addition, since 2005, Congress has beneficiaries who are under the direct can be beneficial. In fact, we have authorized, and the Secretary has care of the physician. The statute does approved 16 gainsharing arrangements approved, a number of projects not prohibit only payments to reduce through our advisory opinion process.14 involving gainsharing. For example, the medically necessary services; it 16 We found that the particular facts Deficit Reduction Act of 2005 prohibits payments to reduce or limit presented to us in those arrangements required the Secretary to establish a ‘‘services.’’ Without a change in the presented few risks relative to those of gainsharing program to test and evaluate statute, we continue to believe that we other gainsharing arrangements. The arrangements between hospitals and cannot read a ‘‘medically necessary’’ gainsharing programs in the advisory physicians designed to govern element into the prohibition. However, opinions set out specific actions to be utilization of certain inpatient services given the changes in the practice of taken and tied remuneration to the to improve the quality and efficiency of medicine over the years, including actual cost savings attributable to the care. Section 3022 of ACA required the collaborative efforts among providers arrangements. They included specific Secretary to establish a Medicare shared and practitioners and the rise of widely safeguards against patient and program savings program (Shared Savings accepted clinical metrics, we are abuse. program) and allowed the Secretary to considering a narrower interpretation of Citing to many of these advisory waive such requirements of sections the term ‘‘reduce or limit services’’ than opinions, the Medicare Payment 1128A and 1128B and Title XVIII of the we have previously held. Advisory Commission (MedPAC) Act as may be necessary to carry out the Since issuing the Gainsharing SAB, recommended that Congress authorize we have had the opportunity to examine the Secretary to allow gainsharing 15 OIG has never pursued any gainsharing CMP a number of different gainsharing case. OIG always has been, and remains, open to arrangements and to regulate those arrangements through our advisory pursuing a gainsharing CMP case under appropriate opinion process. In each favorable arrangements to protect the quality of facts. Prior to initiating any such case, we would care and minimize financial incentives consider the factors set out in the advisory opinions opinion we issued, we found that the that could influence physician referrals. and considerations discussed in this preamble. cost-saving measures proposed by the Pending further notice from OIG, gainsharing See MedPAC, Report to the Congress: hospitals implicated the statute. For arrangements are not an enforcement priority for example, in OIG Advisory Opinion No. OIG unless the arrangement lacks sufficient patient 14 OIG Advisory Opinion Nos.: 00–02, 01–01, 05– and program safeguards. 05–01, we stated: ‘‘the Proposed 01, 05–02, 05–03, 05–04, 05–05, 05–06, 06–22, 07– 16 Deficit Reduction Act of 2005, Public Law 109– Arrangement constitutes an inducement 21, 07–22, 08–09, 08–15, 08–21, 09–06, 12–22. 171, § 5007, 120 Stat. 4, 34–36 (2006). to reduce or limit the current medical

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practice at the Hospital.’’ We went on to this interpretation appropriate or the delivery of health care, and the state that ‘‘[w]e recognize that the necessary in the context of the potential safeguards to protect patients current medical practice may involve Gainsharing CMP? and promote accountability for care that exceeds the requirements of • Should a hospital’s decision to outcomes, has been changing. We seek medical necessity. However, whether standardize certain items (e.g., surgical to interpret the statutory prohibition the current medical practice reflects instruments, medical devices, or drugs) broadly enough to protect beneficiaries necessity or prudence is irrelevant for be deemed to constitute reducing or and Federal health care programs, but purposes of the CMP.’’ OIG Advisory limiting care? Would the answer be the narrowly enough to allow low risk Opinion No. 05–01 (issued Jan. 28, same if the physicians were simply programs that further the goal of 2005, at pp. 7–8).17 This language encouraged to choose from the delivering high quality health care at a implies that any change to current standardized items, but other items lower cost. We emphasize that this medical practice that a hospital might remained available for use when proposed regulation would interpret the initiate is potentially a reduction in care deemed appropriate for any particular Gainsharing CMP. We have no authority that could trigger CMP liability. patient? to create an exception to the statute. However, as hospitals move towards • Should a hospital’s decision to rely III. Regulatory Impact Statement using objective quality metrics, we on protocols based on objective quality recognize that a change in practice does metrics for certain procedures ever be We have examined the impact of this not necessarily constitute a limitation or deemed to constitute reducing or proposed rule as required by Executive reduction of services, but may in fact limiting care (e.g., protocols calling for Order 12866, the Regulatory Flexibility constitute an improvement in patient the discontinuance of a prophylactic Act (RFA) of 1980, the Unfunded care or a reduction in cost without antibiotic after a specific period of Mandates Reform Act of 1995, and reducing patient care or diminishing its time)? Should hospitals deciding to Executive Order 13132. compensate physicians in connection quality. Executive Order 12866 The regulatory text we are proposing with the use of such protocols be largely tracks the statute and is similar required to maintain quality-monitoring Executive Order 12866 directs to the text proposed in 1994. Besides procedures to ensure that these agencies to assess all costs and benefits codifying the gainsharing prohibition protocols do not, even inadvertently, of available regulatory alternatives and, itself, we propose to add a definition of involve reductions in care? What types if regulations are necessary, to select ‘‘hospital’’ to proposed section 42 CFR of monitoring and documentation regulatory approaches that maximize 1003.110 (current § 1003.101). This would be reasonable and appropriate? net benefits (including potential • definition would refer to the definitions Should a hospital desiring to economic, environmental, public health of ‘‘hospital’’ and ‘‘critical access standardize items or processes as part of and safety effects; distributive impacts; hospital’’ in the Act. In addition, a gainsharing program be required to and equity). A regulatory impact however, we are considering and solicit establish certain thresholds based on analysis must be prepared for major comments on whether we should historical experience or clinical rules with economically significant include a definition of the term ‘‘reduce protocols, beyond which participating effects, i.e., $100 million or more in any or limit services’’ to address the physicians could not share in cost given year. This is not a major rule as considerations we express above. If so, savings (i.e., change beyond the relevant defined at 5 U.S.C. 804(2); it is not we solicit specific proposals and threshold would be deemed to economically significant because it does safeguards that we should include in constitute reducing or limiting not reach that economic threshold. This proposed rule would implement this definition to ensure that the goal of services)? For example, in OIG Advisory or codify new and existing CMP the statute is met: To prevent hospitals Opinion 05–01, the hospital had a authorities and exceptions and from paying physicians to discharge policy of performing blood cross- implement new or revised anti-kickback patients too soon or take other action matching (in addition to typing and statute safe harbors. The vast majority of that inappropriately limits a screening) in all cases and proposed to providers and Federal health care beneficiary’s care. We are not proposing perform cross-matching only when a programs would be minimally text of a definition at this time. We patient required a transfusion. The facts impacted, if at all, by these proposed specifically solicit comments on the in that opinion were that less than 30 revisions. following areas of concern, but we percent of cases actually required The changes to the safe harbors and welcome any other comments relating to transfusions, so 30 percent was used as CMP authorities and exceptions would the topic: the threshold. Therefore, the surgeon allow providers to enter into certain • We have interpreted the prohibition group would not receive any share of beneficial arrangements. In doing so, on payments to reduce or limit services savings resulting from performing cross- this regulation would impose no as including payments to limit items matching in fewer than 30 percent of requirements on any party. Providers used in providing services, which is cases. • would be allowed to voluntarily seek to consistent with the definition of If we define ‘‘reduce or limit comply with these provisions so that ‘‘services’’ found at 42 CFR 400.202. Is services,’’ should the regulation include a requirement that the hospital and/or they would have assurance that 17 Under section 1862 of the Act, no payment may physician participating in a gainsharing participating in certain agreements be made under Part A or Part B for any expenses program notify potentially affected would not subject them to liability incurred for items or services that (with certain patients about the program? Would such under the anti-kickback statute and the exceptions) are not reasonable and necessary for the a requirement help ensure that beneficiary inducement or gainsharing diagnosis or treatment of illness or injury or to CMPs. These safe harbors and improve the functioning of a malformed body gainsharing payments were for member. Under the Part A prospective payment legitimate purposes and not for the exceptions facilitate providers’ ability to system (PPS) for hospital inpatient stays, payments purpose of reducing or limiting care? provide important health care and are made for hospital stays that are reasonable and Our proposal to define the term related services to communities in need. necessary; however, additional payment is not We believe that the aggregate economic made if a patient receives individual items or ‘‘reduce or limit services’’ and our services in excess of, or more expensive than, those solicitation of comments related to that impact of the changes to these factored into the PPS payment for covered care. definition reflect our recognition that regulations would be minimal and

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would have no effect on the economy or Executive Order 13132 on the cost of operating the referral on Federal or State expenditures. Executive Order 13132 establishes service, and not on the volume or value Accordingly, we believe that the certain requirements that an agency of any referrals to or business otherwise likely aggregate economic effect of these must meet when it promulgates a rule generated by either party for the other regulations would be significantly less that imposes substantial direct party for which payment may be made than $100 million. requirements or costs on State and local in whole or in part under Medicare, Medicaid, or ther Federal health care Regulatory Flexibility Act governments, preempts State law, or otherwise has Federalism implications. programs. The RFA and the Small Business In reviewing this rule under the * * * * * Regulatory Enforcement and Fairness threshold criteria of Executive Order (k) Waiver of beneficiary coinsurance Act of 1996, which amended the RFA, 13132, we have determined that this and deductible amounts. As used in require agencies to analyze options for proposed rule would not significantly section 1128B of the Act, regulatory relief of small businesses. For affect the rights, roles, and ‘‘remuneration’’ does not include any purposes of the RFA, small entities responsibilities of State or local reduction or waiver of a Medicare or a include small businesses, non-profit governments. State health care program beneficiary’s organizations, and government agencies. obligation to pay coinsurance or IV. Paperwork Reduction Act Most providers are considered small deductible amounts as long as all the entities by having revenues of $7 This document does not impose standards are met within one of the million to $35.5 million or less in any information collection and following categories of health care one year. For purposes of the RFA, most recordkeeping requirements. providers or suppliers. physicians and suppliers are considered Consequently, it need not be reviewed * * * * * small entities. by the Office of Management and (3) If the copayment, coinsurance, or The changes to the CMP provisions Budget under the authority of the deductible amounts are owed to a would be minimal, and the changes to Paperwork Reduction Act of 1995. pharmacy (including, but not limited to, the anti-kickback statute safe harbors List of Subjects pharmacies of the Indian Health would not significantly affect small Service, Indian tribes, tribal providers as these would not impose 42 CFR Part 1001 organizations, and urban Indian any requirement on any party. Administrative practice and organizations) for cost-sharing imposed under part D of Title XVIII provided In summary, we have concluded that procedure, Fraud, Grant programs— that— this proposed rule should not have a health, Health facilities, Health (i) The waiver is not offered as part of significant impact on the operations of professions, Maternal and child health, an advertisement or solicitation and a substantial number of small providers Medicaid, Medicare. (ii) Except for waivers or reductions and that a regulatory flexibility analysis 42 CFR Part 1003 offered to subsidy-eligible individuals is not required for this rulemaking. Fraud, Grant programs—health, (as defined in section 1860D–14(a)(3)) to In addition, section 1102(b) of the Act Health facilities, Health professions, which only requirement in paragraph (42 U.S.C. 1302) requires us to prepare Medicaid, Reporting and recordkeeping. (k)(3)(i) of this section applies: a regulatory impact analysis if a rule For the reasons set forth in the (A) The pharmacy does not routinely under Titles XVIII or XIX or section B waive copayment, coinsurance, or of Title XI of the Act may have a preamble, the Office of Inspector General, Department of Health and deductible amounts and significant impact on the operations of (B) The pharmacy waives the a substantial number of small rural Human Services, proposes to amend 42 CFR chapter V as follows: copayment, coinsurance, or deductible hospitals. For the reasons stated above, amounts only after determining in good we do not believe that any provisions or PART 1001—PROGRAM INTEGRITY— faith that the individual is in financial changes proposed here would have a MEDICARE AND STATE HEALTH need or fails to collect the copayment, significant impact on the operations of CARE PROGRAMS coinsurance, or deductible after making rural hospitals. Thus, an analysis under reasonable collection efforts. section 1102(b) is not required for this ■ 1. The authority citation for part 1001 (4) If the coinsurance or deductible rulemaking. continues to read as follows: amounts are owed to an ambulance Unfunded Mandates Reform Act Authority: 42 U.S.C. 1302, 1320a–7, provider or supplier for emergency 1320a–7b, 1395u(j), 1395u(k), 1395w– ambulance services for which Medicare Section 202 of the Unfunded 104(e)(6), 1395y(d), 1395y(e), pays under a fee-for-service payment Mandates Reform Act of 1995, Public 1395cc(b)(2)(D), (E) and (F), and 1395hh; and system and all the following conditions Law 104–4, also requires that agencies sec. 2455, Public Law 103–355, 108 Stat. are met: assess anticipated costs and benefits 3327 (31 U.S.C. 6101 note). (i) The ambulance provider or before issuing any rule that may result ■ 2. Section 1001.952 is amended by supplier is owned and operated by a in expenditures in any one year by revising paragraphs (f)(2), (k) State, a political subdivision of a State, State, local, or tribal governments, in the introductory text, and by adding or a federally recognized Indian tribe; aggregate, or by the private sector, of paragraphs (k)(3), (k)(4), (z), (aa), and (ii) The ambulance provider or $100 million, adjusted for inflation. We (bb) to read as follows: supplier is the Medicare Part B provider believe that no significant costs would or supplier of the emergency ambulance be associated with these proposed § 1001.952 Exceptions. services; revisions that would impose any * * * * * (iii) The ambulance provider’s or mandates on State, local, or tribal (f) * * * supplier’s reduction or waiver of governments or the private sector that (2) Any payment the participant coinsurance or deductible amounts is would result in an expenditure of $141 makes to the referral service is assessed not considered to be the furnishing of million (after adjustment for inflation) equally against and collected equally free services paid for directly or in any given year. from all participants and is based only indirectly by a government entity;

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(iv) The ambulance supplier offers the time by drivers who provide the for other than fair market value. The reduction or waiver on a uniform basis, transportation, and drivers or others term ‘‘remuneration’’ does not include— without regard to patient-specific arranging for the transportation are not * * * * * factors; and paid on a per-beneficiary transported (5) A reduction in the copayment (v) The ambulance provider or basis; amount for covered OPD services under supplier must not later claim the (4) The Eligible Entity that makes the section 1833(t)(8)(B) of the Act; amount reduced or waived as a bad debt free or discounted transportation (6) [Reserved]; for payment purposes under Medicare available furnishes the services only: (7) The offer or transfer of items or or otherwise shift the burden of the (i) To the established patient (and, if services for free or less than fair market reduction or waiver onto Medicare, a needed, a person to assist the patient) to value by a person if— State health care program, other payers, obtain medically necessary items or (i) The items or services consist of or individuals. services, and coupons, rebates, or other rewards from * * * * * (ii) Within the local area of the health a retailer; (z) As used in section 1128B of the care provider or supplier to which the (ii) The items or services are offered Act, ‘‘remuneration’’ does not include patient would be transported; or transferred on equal terms available any remuneration between a federally (5) The Eligible Entity that makes the to the general public, regardless of qualified health center (or an entity transportation available bears the costs health insurance status; and controlled by such a health center) and of the free or discounted local (iii) The offer or transfer of the items a Medicare Advantage organization transportation services and does not or services is not tied to the provision pursuant to a written agreement shift the burden of these costs onto of other items or services reimbursed in described in section 1853(a)(4) of the Medicare, a State health care program, whole or in part by the program under Act. other payers, or individuals. title XVIII or a State health care program Note to paragraph (bb): For purposes (aa) Medicare Coverage Gap Discount (as defined in section 1128(h) of the of this paragraph (bb), an ‘‘Eligible Program. As used in section 1128B of Act); Entity’’ is any individual or entity, the Act, ‘‘remuneration’’ does not (8) The offer or transfer of items or except for individuals or entities (or include a discount in the price of a drug services for free or less than fair market family members or others acting on their when the discount is furnished to a value by a person, if— behalf) that primarily supply health care beneficiary under the Medicare (i) The items or services are not items; and if the distance from the Coverage Gap Discount Program offered as part of any advertisement or patient’s location to the provider or established in section 1860D–14A of the solicitation; supplier to which the patient would be Act, so long as all the following (ii) The offer or transfer of the items transported is no more than 25 miles, requirements are met: or services is not tied to the provision the transportation is deemed to be local. (1) The discounted drug meets the of other items or services reimbursed in whole or in part by the program under definition of ‘‘applicable drug’’ set forth PART 1003—CIVIL MONEY in section 1860D–14A(g) of the Act; Title XVIII or a State health care PENALTIES, ASSESSMENTS AND program; (2) The beneficiary receiving the EXCLUSIONS discount meets the definition of (iii) There is a reasonable connection ‘‘applicable beneficiary’’ set forth in ■ 3. The authority citation for part 1003 between the items or services and the section 1860D–14A(g) of the Act; and continues to read as follows: medical care of the individual; and (3) The manufacturer of the drug (iv) The person provides the items or Authority: 42 U.S.C. 262a, 1302, 1320–7, services after determining in good faith participates in, and is in full compliance 1320a–7a, 1320b–10, 1395u(j), 1395u(k), that the individual is in financial need; with all requirements of, the Medicare 1395cc(j), 1395w–141(i)(3), 1395dd(d)(1), (9) Waivers by a sponsor of a Coverage Gap Discount Program. 1395mm, 1395nn(g), 1395ss(d), 1396b(m), Prescription Drug Plan under part D of (bb) Local Transportation. As used in 11131(c), and 11137(b)(2). Title XVIII or a Medicare Advantage section 1128B of the Act, ■ 4. Section 1003.101 as proposed to be organization offering an MA–PD Plan ‘‘remuneration’’ does not include free or redesignated as 1003.110 and amended under part C of such title of any discounted local transportation made at 79 FR 27080 (May 12, 2014) is further copayment for the first fill of a covered available by an Eligible Entity (as amended by adding the definition of Part D drug (as defined in section defined in this paragraph (bb)) to ‘‘Hospital’’ and by amending the 1860D–2(e)) that is a generic drug (as established patients who are Federal definition of ‘‘Remuneration’’ by defined in 42 CFR 423.4) for individuals health care program beneficiaries for the revising the introductory text and enrolled in the Prescription Drug Plan purpose of obtaining medically adding paragraphs (5) through (9) to or MA–PD Plan, respectively, as long as necessary items or services if all the read as follows: such waivers are included in the benefit following conditions are met: design package submitted to CMS. This (1) The availability of the free or § 1003.101 Definitions. exception is effective for coverage years discounted local transportation services * * * * * beginning after publication of the final is not determined in a manner related to Hospital means a hospital as defined rule. the past or anticipated volume or value in section 1861(e) of the Act or critical of Federal health care program business; access hospital as defined in section * * * * * (2) The free or discounted local 1861(mm)(1) of the Act. ■ 5. Part 1003, as proposed to be transportation services do not take the * * * * * amended at 79 FR 27080, (May 12, form of air, luxury, or ambulance-level Remuneration, for the purposes of 2014) is further amended by adding transportation; § 1003.1000(a) of this part, is consistent subpart G to read as follows: (3) The free or discounted local with the definition in section Subpart G—CMPs for Gainsharing transportation services are not marketed 1128A(i)(6) of the Act and includes the Violations or advertised, no marketing of health waiver of coinsurance and deductible care items and services occurs during amounts (or any part thereof) and Sec. the course of the transportation or at any transfers of items or services for free or 1003.700 Basis for civil money penalties.

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1003.710 Amount of penalties. DEPARTMENT OF COMMERCE complete the required fields, and enter 1003.720 Determinations regarding the or attach your comments. amount of penalties. National Oceanic and Atmospheric • Mail: Submit written comments to Administration § 1003.700 Basis for civil money penalties. Glenn Merrill, Assistant Regional Administrator, Sustainable Fisheries OIG may impose a penalty against any 50 CFR Part 679 Division, Alaska Region NMFS, Attn: person who it determines in accordance [Docket No. 140519437–4437–01] Ellen Sebastian. Mail comments to P.O. with this part— Box 21668, Juneau, AK 99802–1668. RIN 0648–BE24 (a) Is a hospital that knowingly makes Instructions: Comments sent by any a payment, directly or indirectly, overtly Fisheries of the Exclusive Economic other method, to any other address or or covertly, in cash or in kind, to a Zone Off Alaska; Establishing Transit individual, or received after the end of physician as an inducement to reduce or Areas through Walrus Protection the comment period, may not be limit services provided to an individual Areas at Round Island and Cape considered by NMFS. All comments who is eligible for Medicare or Medicaid Peirce, Northern Bristol Bay, Alaska received are a part of the public record benefits and who is under the direct and will generally be posted for public AGENCY: National Marine Fisheries viewing on www.regulations.gov care of the physician; Service (NMFS), National Oceanic and without change. All personal identifying (b) Is a physician who knowingly Atmospheric Administration (NOAA), information (e.g., name, address), receives a payment described in Commerce. confidential business information, or paragraph (a) of this section. ACTION: Proposed rule; request for otherwise sensitive information comments. submitted voluntarily by the sender will § 1003.710 Amount of penalties. be publicly accessible. NMFS will (a) OIG may impose a penalty against SUMMARY: NMFS issues a proposed rule accept anonymous comments (enter a hospital of not more than $2,000 for that would implement Amendment 107 ‘‘N/A’’ in the required fields if you wish to the Fishery Management Plan for each individual for whom payment was to remain anonymous). Attachments to Groundfish of the Bering Sea and made to a physician in violation of electronic comments will be accepted in Aleutian Islands Management Area § 1003.700. Microsoft Word, Excel, or Adobe PDF (BSAI FMP). If approved, Amendment file formats only. (b) OIG may impose a penalty against 107 would establish seasonal transit Electronic copies of the a physician of not more than $2,000 for areas for vessels designated on Federal Environmental Assessment/Regulatory each individual for whom the physician Fisheries Permits (FFPs) through Walrus Impact Review/Initial Regulatory received payment from a hospital in Protection Areas in northern Bristol Flexibility Analysis (Analysis) prepared violation of § 1003.700. Bay, AK. This action would allow for this action are available from http:// vessels designated on FFPs to transit www.regulations.gov or from the NMFS § 1003.720 Determinations regarding the through Walrus Protection Areas in the amount of penalties. Alaska Region Web site at Exclusive Economic Zone (EEZ) near http://alaskafisheries.noaa.gov/ In determining the amount of any Round Island and Cape Peirce from sustainablefisheries/. penalty or assessment, OIG will April 1 through August 15, annually. This action is necessary to restore the Written comments regarding the consider the factors listed in § 1003.140, burden-hour estimates or other aspects as well as the following: access of federally permitted vessels to transit through Walrus Protection Areas of the collection-of-information (a) The nature of the payment that was limited by regulations requirements contained in this proposed designed to reduce or limit services and action may be submitted to NMFS at the implementing Amendment 83 to the _ the circumstances under which it was Fishery Management Plan for above address and by email to OIRA made, Groundfish of the Gulf of Alaska (GOA [email protected] or fax to 202– 395–7285. (b) The extent to which the payment FMP) and to maintain suitable encouraged the limiting of medical care protection for walruses on Round Island FOR FURTHER INFORMATION CONTACT: or the premature discharge of the and Cape Peirce. This action would Anne Marie Eich, 907–586–7172. patient, maintain an existing prohibition on SUPPLEMENTARY INFORMATION: NMFS deploying fishing gear in Walrus (c) The extent to which the payment manages groundfish fisheries in the EEZ Protection Areas by vessels designated caused actual or potential harm to off Alaska under the GOA FMP and the on an FFP. This action is intended to program beneficiaries, and BSAI FMP. The North Pacific Fishery promote the goals and objectives of the Management Council (Council) (d) The financial condition of the Magnuson-Stevens Fishery prepared these FMPs under the hospital (or physician) involved in the Conservation and Management Act, the authority of the Magnuson-Stevens offering (or acceptance) of the payment. BSAI FMP, and other applicable law. Fishery Conservation and Management Dated: March 1, 2014. DATES: Submit comments on or before Act (Magnuson-Stevens Act), 16 U.S.C. Daniel R. Levinson, November 3, 2014. 1801, et seq. Regulations governing U.S. ADDRESSES: fisheries and implementing the FMPs Inspector General. You may submit comments on this document, identified by NOAA– appear at 50 CFR parts 600 and 679. Approved: September 18, 2014. NMFS–2014–0066, by either of the Background Sylvia M. Burwell, following methods: Secretary. • Electronic Submission: Submit all The following sections of the [FR Doc. 2014–23182 Filed 10–2–14; 8:45 am] electronic public comments via the preamble describe: (1) The Walrus BILLING CODE 4152–01–P Federal e-Rulemaking Portal. Go to Protection Areas; (2) the effects of www.regulations.gov/ disturbance on walruses; (3) the areas #!docketDetail;D=NOAA-NMFS-2014- and vessels affected by this proposed 0066, click the ‘‘Comment Now!’’ icon, action; and (4) the proposed action.

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Walrus Protection Areas reduce potential disturbance to walruses from the Alaska Department of Fish and Thousands of walruses, primarily from groundfish fisheries. Amendment Game reported that of the 56 observed adult males, use haulouts in northern 13 prohibited vessels from fishing for anthropogenic events (e.g., vessel traffic, Bristol Bay, AK, during spring through groundfish in the areas around Round aircraft traffic) occurring more than 3 fall each year. The State of Alaska Island, Cape Peirce, and The Twins nm from Round Island, only four events (State) and NMFS have implemented a because these areas are known to be resulted in observable disturbance to variety of management measures to important terrestrial haulouts for walruses. All these disturbance events protect walruses in northern Bristol Bay. walruses. Specifically, Round Island were due to aircraft noise. In 2012, In 1960, the State established the and Cape Peirce are the two largest Weiss and Sell reported that they did Walrus Islands State Game Sanctuary walrus terrestrial haulouts in the United not observe any disturbance to walruses States. Amendment 13 prohibited (Walrus Sanctuary) to protect a group of from anthropogenic events occurring vessels from fishing for groundfish seven small, craggy islands and their more than 3 nm from Round Island. annually from April 1 through adjacent waters in northern Bristol Bay Based on these findings, and other September 30 to reduce disturbance to commonly used by walruses. The research described in Section 3.2.1.6 of walruses during periods of peak walrus Walrus Sanctuary includes Round the Analysis, the U.S. Fish and Wildlife use (see Section 1.2 of the Analysis for Island, Summit Island, Crooked Island, Service (USFWS) released guidelines for additional information on patterns of High Island, Black Rock, and The vessels operating near walrus haulouts use of haulouts by walruses). These Twins. in Bristol Bay in September, 2012. regulations were in effect from January The State maintains the most Under the Marine Mammal Protection 1, 1990 through April 26, 1992. Act of 1972 (MMPA), walruses are co- protective management measures On April 26, 1992, NMFS around Round Island, one of the largest managed by USFWS and the Eskimo implemented Amendment 17 to the Walrus Commission (EWC), with and well-established walrus haulouts in BSAI FMP (57 FR 10430, March 26, northern Bristol Bay. The State permits scientific research support from the U.S. 1992). Amendment 17 encompassed the Geological Survey and the State. The visitors to Round Island for wildlife same areas and seasonal closure period viewing or research. The State prohibits guidelines released by USFWS are as those established under Amendment intended to minimize potential all other vessel traffic within Alaska 13. However, Amendment 17 closed State waters (from 0 to 3 nautical miles disturbance to walruses. These Federal waters to all federally permitted guidelines include descriptions of (nm) from shore) around Round Island, vessels in 3 to 12 nm zones around but the State has no restrictions on disturbance behavior and best-practices Round Island, the Twins, and Cape for mariners to avoid disturbance to vessel traffic in Alaska State waters Peirce annually from April 1 through around the other islands in the Walrus walruses. Best-practices include: September 30. Amendment 17 defined • Marine vessels 50 feet in length or Sanctuary. The State limited vessel federally permitted vessels as vessels less should remain at least 0.5 nm away traffic around Round Island to reduce that are designated on an FFP (see from hauled out walruses; the potential for vessel activities that regulations at § 679.22(a)(4)). • Marine vessels 50–100 feet in disturb walruses. Walruses are known to Amendment 17 was more restrictive length should remain at least 1 nm away be sensitive to disturbance. Walrus than Amendment 13. Amendment 13 from hauled out walruses; calves or adults can be injured or killed prohibited fishing for groundfish, but • Marine vessels greater than 100 feet by stampeding adults (see Section did not prohibit vessels designated on in length should remain at least 3 nm 3.2.1.6 of the Analysis). an FFP from entering and transiting away from hauled out walruses; The Council has recommended and through Walrus Protection Areas. • All vessels should refrain from NMFS has implemented a series of Because Amendment 17 prohibited anchoring, or conducting tendering or closure areas, known as Walrus entry and transit by vessels designated fishing operations within 3 miles of Protection Areas, around important on an FFP in these areas, it effectively hauled out walruses; walrus haulout sites in Bristol Bay to prohibited groundfish fishing in these • All vessels should avoid sudden reduce potential disturbances to areas because a vessel cannot fish for changes in engine noise, using loud walruses from fishing activities. These groundfish in Federal waters without speakers, loud deck equipment or other management measures apply in a being designated on an FFP. The operations that produce noise when in portion of Federal waters in the EEZ regulations implementing Amendment the vicinity of walrus haulouts; (i.e., from 3 nm to 12 nm from shore). 17 superseded those implementing • All vessels should avoid excessive Walrus Protection Areas were first Amendment 13. speed or sudden changes in speed or implemented in the early 1990s to Effects of Disturbance on Walruses direction when approaching or reduce disturbance from fishing departing walrus haulout areas; activities based on apparent correlations Since the early 1990s, additional • All vessels should reduce speed between fishing activities and observed research by the Alaska Department of and maintain a minimum 0.5 nm declines in walrus populations at Fish and Game has improved NMFS’ exclusion zone around feeding haulouts in northern Bristol Bay during understanding of the potential walruses; the 1980s. disturbance to walruses from vessel • All vessels should not operate in In January 1990, NMFS implemented traffic. The new research indicates that such a manner to separate members of Amendment 13 to the BSAI FMP to disturbance to walruses from vessel a group of walruses from other members prohibit groundfish fishing within 3 to traffic more than 3 nm from haulouts of the group; and 12 nm from Round Island, The Twins, has not been observed in northern • All vessels should adjust speed and Cape Peirce in northern Bristol Bay Bristol Bay. Specifically, Section 3.2.1.6 according to weather conditions to from April 1 through September 30 (54 of the Analysis notes that recent reduce the likelihood of injury to FR 50386, December 6, 1989; corrected research at Round Island indicates that walruses. 55 FR 1036, January 11, 1990; walruses were not disturbed (e.g., raised During the development of this technically amended 56 FR 5775, their heads, reoriented, or dispersed) by proposed action, the Council February 13, 1991). The Council and vessel traffic more than 3 nm from communicated with the USFWS and the NMFS intended Amendment 13 to Round Island. In 2011, Sell and Weiss Qayassiq Walrus Commission to avoid

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adverse impacts to walruses from this Areas to deliver processed groundfish to the north and outside of Walrus proposed action. As noted in Section from fishing grounds in the Bering Sea Protection Areas requires vessels to 3.2.7 of the Analysis, all of the to delivery locations in northern Bristol transit through shallower waters in State alternative management approaches Bay. waters. Transit through shallower considered, and this proposed action Without an FFP, vessels can transit waters can be more difficult to navigate specifically, were determined to be through Walrus Protection Areas and and may create additional safety consistent with the best practices in the avoid the additional time, operating concerns. Transiting to the south of guidelines established by USFWS and expenses, increased exposure to Round Island and outside of the Walrus would not disturb walruses more than weather, and navigational challenges Protection Areas requires vessels to existing management. Therefore, NMFS when operating in State waters transit around Round Island and concludes that this proposed action compared to vessels that are designated through Hagemeister Strait. This route would have no adverse impact on on an FFP and are prohibited from adds considerable distance and time to walruses. entering Walrus Protection Areas. each transit, which increases fuel costs Section 1.3.2 of the Analysis describes and potentially exposes vessels to more Areas and Vessels Affected by This the factors affecting vessels that are adverse weather conditions for a longer Proposed Action prohibited from transiting through period of time. Transit through This proposed action would apply in Walrus Protection Areas. The following Hagemeister Strait also puts vessels in the northern Bristol Bay. This proposed paragraphs summarize these factors. close proximity (i.e., within 3 nm) to a action would apply to Federal waters in On January 1, 2012, NMFS walrus haulout on the southern tip of statistical area 514 of the BSAI, as implemented Amendment 83 to the Hagemeister Island. This vessel traffic shown in Figure 1 to 50 CFR part 679. GOA FMP (76 FR 74670, December 1, may disturb walruses using the haulout This proposed action would not apply 2011; corrected 76 FR 81872, December on Hagemeister Island. An alternative in State waters. The State restricts vessel 29, 2011). Regulations implementing route that would allow vessels transit only in State waters around Amendment 83 to the GOA FMP designated on FFPs to transit through a Round Island, but not in State waters (Amendment 83) limited the ability of portion of the Walrus Protection Areas elsewhere in the area. All vessels, vessel owners to easily surrender an north of Round Island could reduce including vessels designated on an FFP, FFP. An FFP is issued for 3 years under vessel transits through Hagemeister can transit through State waters around the FFP application process and is in Strait and the potential for disturbance Cape Peirce and The Twins. This effect from the effective date through the to walruses using the haulout on proposed action would only affect expiration date, unless it is revoked, Hagemeister Island. vessels designated on an FFP. Vessels suspended, surrendered (see regulations Currently, vessels can transit through that are not designated on an FFP are at § 679.4(b)(4)(i)). NMFS will not State waters (from 0 to 3 nm from the not regulated in the Walrus Protection reissue a surrendered FFP with certain shore) near Cape Peirce while tendering Areas and can enter and transit through endorsements (see regulations at herring or salmon from fishing locations Walrus Protection Areas. § 679.4(b)(4)(ii)); therefore, a vessel near Cape Peirce, or when delivering Prior to 2012, vessel owners were able owner cannot surrender an FFP more groundfish in northern Bristol Bay. As to easily surrender an FFP for a period than once in a 3-year period to transit noted in Section 3.2.7.3 of the Analysis, of time to allow that vessel to transit the Walrus Protection Areas. USFWS has not monitored walruses in through Walrus Protection Areas. Some NMFS intended the regulations the Cape Peirce area for disturbance and vessel owners surrendered their FFPs implementing Amendment 83 to allow the incidence of disturbance at Cape during the spring and summer so that the proper tracking and accounting of Peirce is not known. However, vessels these vessels could transit through Federal fishery allocations. NMFS did transiting through State waters (i.e., Walrus Protection Areas around Round not intend the regulations to specifically within 3 nm of Cape Peirce) may be Island and Cape Peirce when operating limit the ability of vessel owners to more likely to disturb walruses. An as a tender. A tender is a vessel that is surrender FFPs to transit through alternative route that would allow used to transport unprocessed fish or Walrus Protection Areas when operating vessels designated on FFPs to transit shellfish received from another vessel to as tenders or delivering processed through a portion of the Walrus an associated processor (see definition groundfish. However, the regulations Protection Areas east of Cape Peirce at § 679.2). In northern Bristol Bay, implementing Amendment 83 require could reduce vessel transits through many vessels that are active in federally vessel owners to either surrender their State waters near Cape Peirce and the managed fisheries operate as tenders for FFPs to transit through Walrus potential for disturbance to walruses vessels fishing in State-managed herring Protection Areas when operating as using the haulout at Cape Peirce. and salmon fisheries. These tenders tenders or delivering processed receive catch in Togiak Bay, Kulukak groundfish and be prohibited from The Proposed Action Bay, and other bays in northern Bristol deploying fishing gear in Federal waters This proposed action would allow Bay and deliver that catch to processing for up to 3 years, or retain their FFPs vessels designated on FFPs to enter and plants in Dillingham and other and be prohibited from transiting transit through specific areas of the communities in Bristol Bay. Prior to through Walrus Protection Areas. Walrus Protection Areas near Round 2012, some vessel owners also Vessel owners prefer to transit Island and Cape Peirce. These transit surrendered their FFPs to allow a vessel through the Walrus Protection Areas areas are shown in Figure 1 below. to transit through Walrus Protection north of Round Island because transiting BILLING CODE 3510–22–P

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The Council recommended and designated on FFPs from deploying groundfish access to a transit route NMFS proposes these transit areas fishing gear in Walrus Protection Areas. north of Round Island. NMFS expects this proposed transit area to reduce the based on information in Sections 3.7 Transit Area Near Round Island and 4 of the Analysis indicating that potential for vessels to transit near allowing vessels designated on FFPs to This proposed action would add Hagemeister Island, a known walrus transit areas near Round Island and regulations at § 679.22(a)(4)(ii) to haulout, because vessels would be establish a transit area through the Cape Peirce would: (1) Not increase allowed to transit north of Round Island Walrus Protection Areas near Round potential disturbance of walruses on and to avoid the route near Hagemeister Island. This proposed action would Round Island and Cape Peirce; (2) not Island. This proposed action would also establish a transit area in the EEZ near allow vessels to transit through Federal be expected to increase vessel traffic Round Island from April 1 through through Walrus Protection Areas, waters further from shore and thereby August 15, annually, north of a line reduce transit through shallower State particularly when compared to vessel from 58°47.90′ N, 160°21.91′ W to traffic patterns prior to the ° ′ ° ′ waters that are more difficult to 58 32.94 N, 159 35.45 W. (Please see navigate. implementation of Amendment 83; (3) Figure 1 of this preamble.) restore the ability for vessels designated This transit area is at least 3 nm from The transit area near Round Island on an FFP that historically served as Round Island at its closest point and is would open April 1 because this tenders for the northern Bristol Bay more than 9 nm from the haulouts on proposed action is intended to relieve herring and salmon fisheries before The Twins at its closest point. As noted the existing regulations that prohibit implementation of Amendment 83 to in Section 3.2.7.2.1 of the Analysis, entry and transit to vessels designated transit through Walrus Protection Areas; there has been no recorded visible on an FFP in Walrus Protection Areas (4) restore the ability of vessels disturbance to walruses from vessel on April 1, the start of peak walrus use designated on an FFP that delivered traffic more than 3 nm from Round in the area. This transit area would be closed after August 15 because of the processed groundfish to northern Bristol Island, but disturbance from vessel following: (1) The herring and most Bay before implementation of traffic has been documented within 3 salmon fisheries are completed by Amendment 83 to transit through nm from Round Island. This proposed action would not allow vessels August 15, and tender vessels are no Walrus Protection Areas; and (5) reduce designated on an FFP to transit within longer active and do not require transit the potential for disturbance to walruses 3 nm of Round Island or The Twins. through Walrus Protection Areas after using haulouts on Hagemeister Island The Council recommended and that date; (2) vessels transiting to deliver and Cape Peirce. The following sections NMFS proposes this transit area to groundfish in northern Bristol Bay describe proposed transit areas near maintain suitable protection for typically have completed their Round Island and Cape Peirce and a walruses on Round Island and to allow deliveries by August 15 and do not proposed prohibition to vessels tenders and vessels delivering require transit through Walrus

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Protection Areas after that date; and (3) Prohibition on Vessels with FFPs basis for, the proposed rule; (c) a limiting vessel transit by August 15 Deploying Fishing Gear in Walrus description of and, where feasible, an would reduce vessel traffic near walrus Protection Areas estimate of the number of small entities haulouts that could interfere with This proposed action would add to which the proposed rule will apply; vessels used for the subsistence harvest regulations at § 679.22(a)(4)(ii) to (d) a description of the projected of walruses on Round Island beginning prohibit vessels designated on an FFP reporting, recordkeeping, and other in September of each year. NMFS notes from deploying fishing gear in Walrus compliance requirements of the that vessels designated on FFPs would Protection Areas from April 1 through proposed rule; (e) an identification, to still be prohibited from entering and September 30 annually. As noted the extent practicable, of all relevant Federal rules which may duplicate, transiting through the Walrus Protection throughout this preamble, this proposed overlap or conflict with the proposed Areas near Round Island after August 15 action is intended to remove a rule; and (f) a description of any through September 30. NMFS expects prohibition that limits vessels from entering and transiting through Walrus significant alternatives to the proposed that this prohibition would not rule which accomplish the stated adversely affect vessels designated on Protection Areas. This proposed action is not intended to allow vessels objectives of applicable statutes and FFPs because tendering operations and which minimize any significant groundfish deliveries in northern Bristol designated on FFPs to fish in Walrus Protection Areas from April 1 through economic impact of the proposed rule Bay do not occur during the August 15 September 30. Section 3.1 of the on small entities. A description of the through September 30 time period. Analysis notes that this proposed action action, why it is being considered, and the legal basis for this action are Transit Area Near Cape Peirce would not be expected to affect the timing, duration, effort, or harvest levels contained at the beginning of this This proposed action would add in the fisheries in northern Bristol Bay section in the preamble and in the regulations at § 679.22(a)(4)(ii) to because this proposed action would not SUMMARY section of the preamble. A establish transit areas through the open Walrus Protection Areas to fishing summary of the remainder of the IRFA Walrus Protection Areas at Cape Peirce. by vessels designated on an FFP. follows. A copy of the IRFA is available This proposed action would establish a Because vessels designated on FFPs are from NMFS (see ADDRESSES). The entities that could be directly transit area in the EEZ near Cape Peirce already prohibited from deploying fishing gear in Walrus Protection Areas, regulated by the proposed action are that would be open from April 1 those businesses that tender herring or through August 15, annually, east of a this proposed prohibition would ° ′ ° ′ maintain the status quo prohibition on salmon from fisheries to delivery line from 58 30.00 N, 161 46.20 W to locations in northern Bristol Bay, and 58°21.00′ N, 161°46.20′ W. (Please see deploying fishing gear in Walrus Protection Areas. Therefore, this those businesses that deliver processed Figure 1 of this preamble.) This transit groundfish from the Bering Sea to area is at least 3 nm from Cape Peirce proposed action would not affect any existing fishing operations. locations in northern Bristol Bay. at its closest point. Vessels tendering herring or salmon are The Council recommended and Classification transporting harvested fish. Because NMFS proposes the transit area through Pursuant to section 304(b) of the tender vessel operators enter into the Walrus Protection Areas near Cape Magnuson-Stevens Act, the NMFS private contracts with herring and Peirce to provide an opportunity for Assistant Administrator has determined salmon fishing vessel operators to vessels with FFPs to travel farther from that this proposed action is consistent transport their catch, revenue information from tenders is not shore while tendering herring or salmon with the FMPs, other provisions of the available. Based on information from and avoid transit through State waters Magnuson-Stevens Act, and other applicable law, subject to further 2012, the most recent year of complete near walrus haulouts at Cape Peirce. data, a maximum of 64 vessels were NMFS expects that the transit area will consideration after public comment. This proposed action has been estimated to have operated as tenders in reduce the likelihood of disturbance to determined to be not significant for the the herring and salmon fisheries in walruses at the Cape Peirce Walrus purposes of Executive Order (E.O.) northern Bristol Bay. These vessels Protection Areas. 12866. could have been designated on an FFP The transit area would be open from and could be affected by this proposed Regulatory Impact Review April 1 through August 15 consistent action. Because no revenue information with the opening and closing dates An RIR was prepared to assess all is available on these vessels each of established for the Round Island transit costs and benefits of available regulatory these vessels were assumed to be a area. As noted in the previous section of alternatives. The RIR considers all small entity. this preamble, these dates would quantitative and qualitative measures. A Based on information from 2012, the most recent year of complete data, a facilitate vessel transits for tendering copy of this analysis is available from maximum of 6 vessels were estimated to and groundfish deliveries. NMFS notes NMFS (see ADDRESSES). have delivered processed groundfish to that vessels designated on FFPs would Initial Regulatory Flexibility Analysis locations in northern Bristol Bay. These still be prohibited from entering and An Initial Regulatory Flexibility vessels could have been designated on transiting through the Walrus Protection Analysis (IRFA) was prepared, as FFP and could be affected by this Areas near Cape Peirce after August 15 required by section 603 of the proposed action. All of these vessels through September 30. NMFS expects Regulatory Flexibility Act. The IRFA were affiliated through common this prohibition would not adversely describes the economic impact this management under cooperative fishing affect vessels designated on FFPs proposed rule, if adopted, would have arrangements. These affiliated vessels because tendering operations and on small entities. An IRFA is required had ex-vessel annual revenues in 2012 groundfish deliveries in northern Bristol to include (a) a description of the that exceeded the annual revenue limit Bay do not occur during the August 16 reasons why action by the agency is of $20.5 million used by the Small through September 30 period. being considered; (b) a succinct Business Administration to define a statement of the objectives of, and legal small entity harvesting or processing

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groundfish (79 FR 33647, June 12, options. As noted in Section 3.2.7.2.1 of impact summary statement that 2014). Therefore these vessels are the Analysis, there has been no recorded addresses the four questions above will considered to be large entities. visible disturbance to walruses from be included in the final rule. None of the alternatives would vessel traffic more than 3 nm from List of Subjects in 50 CFR Part 679 modify existing reporting, Round Island. recordkeeping, or other compliance The Council also considered Alaska, Fisheries. requirements. No duplication, overlap, rescinding the protection areas around Dated: September 30, 2014. or conflict between this proposed action Round Island and Cape Peirce for all or Samuel D. Rauch III, and existing Federal rules has been a portion of the year, eliminating the identified. barriers to transiting the Walrus Deputy Assistant Administrator for Regulatory Programs, National Marine An IRFA requires a description of any Protection Areas. Rescission of the Fisheries Service. significant alternatives to the proposed protection areas would reduce costs to alternative that accomplish the stated regulated small entities more than the For reasons set out in the preamble, objectives, are consistent with proposed action. However, these 50 CFR part 679 is proposed to be applicable statutes, and that would alternatives were not analyzed because amended as follows: minimize any significant economic they do not meet the purpose and need PART 679—FISHERIES OF THE impact of the proposed action on small of the proposed action to maintain EXCLUSIVE ECONOMIC ZONE OFF entities. The IRFA considered three protection of walruses in these ALASKA alternatives. Alternative 1, the no action important haulout sites. (status quo) alternative, would maintain Tribal Consultation ■ 1. The authority citation for part 679 the existing closures between 3 and 12 continues to read as follows: nm around Round Island and Cape Executive Order (E.O.) 13175 of Peirce, and would not allow vessels November 6, 2000 (25 U.S.C. 450 note), Authority: 16 U.S.C. 773 et seq.; 1801 et designated on an FFP to transit these the Executive Memorandum of April 29, seq.; 3631 et seq.; Pub. L. 108–447. areas. Therefore, Alternative 1 1994 (25 U.S.C. 450 note), the American ■ 2. In § 679.22, revise paragraph (a)(4) represents the most restrictive Indian and Alaska Native Policy of the to read as follows: U.S. Department of Commerce (March alternative considered and the § 679.22 Closures. alternative with the highest potential 30, 1995), and the Department of cost to regulated small entities. Commerce Tribal Consultation and (a) * * * Alternative 2 would establish a transit Coordination policy (78 FR 33331, June (4) Walrus protection areas. area through the existing Walrus 4, 2013) outline the responsibilities of (i) From April 1 through September Protection Areas near Round Island. NMFS for Federal policies that have 30 of each calendar year, vessels Alternative 2 also included three tribal implications. Section 161 of designated on a Federal fisheries permit options, Options 1, 2 and 3 to allow the Public Law 108–199 (188 Stat. 452), as issued under § 679.4 are prohibited from closest point of the transit area to be amended by section 518 of Public Law deploying fishing gear in that part of the within 3 nm, 4.5 nm, and 6 nm from 109–447 (118 Stat. 3267), extends the Bering Sea subarea between 3 and 12 Round Island, respectively. Alternative consultation requirements of E.O. 13175 nm seaward of the baseline used to 3 would establish a transit area through to Alaska Native corporations. Under measure the territorial sea around Walrus Protection Areas near Cape the E.O. and agency policies, NMFS islands named Round Island and The Peirce. must ensure meaningful and timely Twins, as shown on National Ocean The alternatives analyzed but not input by tribal officials and Survey Chart 16315, and around Cape ° ′ ° ′ selected are Alternative 1 (status quo, do representatives of Alaska Native Peirce (58 33 N. lat., 161 43 W. long.). not allow transit through the protection corporations in the development of (ii) From April 1 through September areas) and Alternative 2, Options 2 and regulatory policies that have tribal 30 of each calendar year, vessels 3. All of these alternatives and options implications. NMFS will provide a copy designated on a Federal fisheries permit are more restrictive than the proposed of this proposed rule to the federally issued under § 679.4 are prohibited in action. The proposed action is recognized tribes and Alaska Native that part of the Bering Sea subarea Alternative 2, Option 1 and Alternative corporations in the Bristol Bay area to between 3 and 12 nm seaward of the 3. Alternative 2, Option 1 allows vessels notify them of the opportunity to baseline used to measure the territorial to transit closer to Round Island than comment or request a consultation on sea around islands named Round Island Alternative 2, Option 2 and Alternative this proposed action. and The Twins, as shown on National 2, Option 3. Therefore, Alternative 2, Section 5(b)(2)(B) of E.O. 13175 Ocean Survey Chart 16315, and around Option 1 is the least restrictive of the requires NMFS to prepare a ‘‘tribal Cape Peirce (58°33′ N. lat., 161°43′ W. three options under Alternative 2. summary impact statement’’ for any long.), except that from April 1 through Alternative 3 provides a seasonal transit regulation that has tribal implications, August 15 of each calendar year vessels area around Cape Peirce. This proposed that imposes substantial direct designated on a Federal fisheries permit action represents the alternatives that compliance costs on Indian tribal are not prohibited from entering and minimize the potential cost to directly governments, and is not required by transiting through waters off: regulated small entities. The boundaries statute. The tribal summary impact (A) Round Island, north of a straight farther from Round Island (Options 2 statement must contain (1) a description line connecting 58°47.90′ N. lat./ and 3) may incrementally reduce the of the extent of the agency’s prior 160°21.91′ W. long., and 58°32.94′ N. potential for disturbance to walruses on consultation with tribal officials, (2) a lat./159°35.45′ W. long.; and Round Island (see Section 3.2.7 of the summary of the nature of their concerns, (B) Cape Peirce, east of a straight line Analysis), but are not likely to (3) the agency’s position supporting the connecting 58°30.00′ N. lat./161°46.20′ significantly affect the distances need to issue the regulation, and (4) a W. long., and 58°21.00′ N. lat./ traveled as vessels with FFPs transit the statement of the extent to which the 161°46.20′ W. long. protected area. The differences in transit concerns of tribal officials have been * * * * * time or fuel costs are not likely to be met. If the Secretary of Commerce [FR Doc. 2014–23635 Filed 10–2–14; 8:45 am] significantly different between these approves this proposed action, a tribal BILLING CODE 3510–22–C

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Notices Federal Register Vol. 79, No. 192

Friday, October 3, 2014

This section of the FEDERAL REGISTER Dated: September 29, 2014. DEPARTMENT OF AGRICULTURE contains documents other than rules or Vanessa D. Prout, proposed rules that are applicable to the Division Chief, Employee Labor Relations Submission for OMB Review; public. Notices of hearings and investigations, Comment Request committee meetings, agency decisions and Division. rulings, delegations of authority, filing of [FR Doc. 2014–23593 Filed 10–2–14; 8:45 am] September 29, 2014. petitions and applications and agency BILLING CODE 6116–02–P statements of organization and functions are The Department of Agriculture has examples of documents appearing in this submitted the following information section. collection requirement(s) to OMB for DEPARTMENT OF AGRICULTURE review and clearance under the Paperwork Reduction Act of 1995, U.S. AGENCY FOR INTERNATIONAL Rural Housing Service Public Law 104–13. Comments DEVELOPMENT regarding (a) whether the collection of Senior Executive Service; Membership Rural Business-Cooperative Service information is necessary for the proper of Performance Review Board performance of the functions of the Rural Utilities Service agency, including whether the ACTION: Notice. information will have practical utility; 2014 Farm Bill Implementation (b) the accuracy of the agency’s estimate SUMMARY: This notice lists approved Listening Session—Rural Community of burden including the validity of the candidates who will comprise a College Coordinated Strategy methodology and assumptions used; (c) standing roster for service on the ways to enhance the quality, utility and Agency’s 2014 and 2015 SES AGENCY: Rural Housing Service, Rural clarity of the information to be Performance Review Boards. The Business-Cooperative Service, and Rural collected; (d) ways to minimize the Agency will use this roster to select SES Utilities Service, USDA. burden of the collection of information board members, and an outside member ACTION: Notice, Correction. on those who are to respond, including for the convening SES Performance through the use of appropriate Review Board each year. The standing SUMMARY: automated, electronic, mechanical, or roster is as follows: On September 25, 2014, Rural Development published a notice other technological collection Allen, Colleen concerning the 2014 Farm Bill techniques or other forms of information Broderick, Deborah Implementation Listening Session— technology. Cappozola, Christa Rural Community College Coordinated Comments regarding this information Chan, Carol Strategy. The phone number for the collection received by November 3, Crumbly, Angelique conference was incorrectly stated in one 2014 will be considered. Written Detherage, Maria Price location. comments should be addressed to: Desk Feinstein, Barbara DATES: Effective on Thursday, Officer for Agriculture, Office of Foley, Jason September 25, 2014. Information and Regulatory Affairs, Jenkins, Robert Office of Management and Budget Kolmstetter, Elizabeth FOR FURTHER INFORMATION CONTACT: (OMB), New Executive Office Building, Kramer, Douglas Dexter Pearson, 202–401–9790, Email: 725—17th Street NW., Washington, DC [email protected]. Persons Kuyumjian, Kent 20502. Commenters are encouraged to with disabilities who require alternative Leavitt, William submit their comments to OMB via means for communication (Braille, large _ Martin-Wallace, Valencia, Outside SES email to: OIRA Submission@ print, audio tape, etc.) should contact Member OMB.EOP.GOV or fax (202) 395–5806 the USDA Target Center at (202) 720– McNerney, Angela and to Departmental Clearance Office, 2600 (voice and TDD). USDA, OCIO, Mail Stop 7602, Mitchell, Reginald Washington, DC 20250–7602. Copies of Miranda, Roberto Correction the submission(s) may be obtained by Pascocello, Susan In the Federal Register of September calling (202) 720–8958. Peters, James 25, 2014, FR Doc. #2014–22827 on page Romanowski, Alina An agency may not conduct or 57505 in the second column, correct sponsor a collection of information Sampler, Donald phone number should read: unless the collection of information Schmipp, Michele Dial 1–888–469–0566 and enter displays a currently valid OMB control Vera, Mauricio Conference ID: 3499699. number and the agency informs Walther, Mark Dated: September 26, 2014. potential persons who are to respond to Warren, Wade the collection of information that such Doug O’Brien, Webb, Mark persons are not required to respond to White, Christa Acting Under Secretary, Rural Development. the collection of information unless it [FR Doc. 2014–23577 Filed 10–2–14; 8:45 am] FOR FURTHER INFORMATION CONTACT: displays a currently valid OMB control Marvol Edmonds, 202–712–1781. BILLING CODE 3410–XV–P number.

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Animal and Plant Health Inspection DEPARTMENT OF COMMERCE Dated: August 12, 2014. Service Brian C. Moyer, Bureau of Economic Analysis Deputy Director, Bureau of Economic Title: Importation of Plants for Analysis. Planting; Establishing a Category for Meeting of Bureau of Economic [FR Doc. 2014–23424 Filed 10–2–14; 8:45 am] Plants for Planting Not Authorized for Analysis Advisory Committee BILLING CODE 3510–06–P Importation Pending Pest Risk Analysis. OMB Control Number: 0579–0380. AGENCY: Bureau of Economic Analysis, Economics and Statistics DEPARTMENT OF COMMERCE Summary Of Collection: The United Administration, Department of States Department of Agriculture, Commerce. Foreign-Trade Zones Board Animal and Plant Health Inspection Service (APHIS), is responsible for ACTION: Notice of Public Meeting. [S–107–2014] preventing the entry of plant diseases or Approval of Subzone Status; Southern SUMMARY: Pursuant to the Federal insect pests from entering into the Motion, Inc.; Pontotoc and Baldwyn, Advisory Committee Act (Pub. L. 92– United States, preventing the spread of Mississippi pests and noxious weeds not widely 463 as amended by Pub. L. 94–409, Pub. distributed into the United States, and L. 96–523, Pub. L. 97–375 and Pub. L. On August 7, 2014, the Executive eradicating those imported pests when 105–153), we are announcing a meeting Secretary of the Foreign-Trade Zones eradication is feasible. Under the Plant of the Bureau of Economic Analysis (FTZ) Board docketed an application Protection Act (7 U.S.C. 7701—et seq.), Advisory Committee. The meeting will submitted by the Greater Mississippi the Secretary of Agriculture is address ways in which the national Foreign-Trade Zone, Inc., grantee of FTZ authorized to take such actions as may economic accounts can be presented 158, requesting subzone status subject to be necessary to prevent the introduction more effectively for current economic the existing activation limit of FTZ 158 and spread of plant pests and noxious analysis and recent statistical on behalf of Southern Motion, Inc., in weeds within the United States. APHIS developments in national accounting. Pontotoc and Baldwyn, Mississippi. The application was processed in amended the regulations to establish a DATES: Friday, November 14, the new category of regulated articles in the accordance with the FTZ Act and meeting will begin at 9:00 a.m. and Regulations, including notice in the regulations governing the importation of adjourn at 3:30 p.m. Federal Register inviting public nursery stock, also known as plants for ADDRESSES: The meeting will take place comment (79 FR 47436, August 13, planting. This category will list taxa for 2014). The FTZ staff examiner reviewed plants for planting whose importation is at the Bureau of Economic Analysis at 1441 L St. NW., Washington, DC. the application and determined that it not authorized pending pest risk meets the criteria for approval. analysis. FOR FURTHER INFORMATION CONTACT: Pursuant to the authority delegated to Need And Use of the Information: Gianna Marrone, Program Analyst, the FTZ Board’s Executive Secretary (15 APHIS will collect the following Bureau of Economic Analysis, U.S. CFR 400.36(f)), the application to information before a Pest Risk Department of Commerce, Washington, establish Subzone 158G is approved, Assessment can be prepared: (1) a DC 20230; telephone number: (202) subject to the FTZ Act and the Board’s description and/or map of the specific 606–9633. regulations, including Section 400.13, and further subject to FTZ 158’s 2,000- locations(s) of the areas in the exporting Public Participation: This meeting is acre activation limit. country where the plant, plant parts,, or open to the public. Because of security plant products are produced; (2) procedures, anyone planning to attend Dated: September 30, 2014. Scientific name (including genus, the meeting must contact Gianna Andrew McGilvray, species, and author names) and Marrone of BEA at (202) 606–9633 in Executive Secretary. taxonomic classification of arthropods, advance. The meeting is physically [FR Doc. 2014–23665 Filed 10–2–14; 8:45 am] fungi, bacteria, nematodes, viruses, accessible to people with disabilities. BILLING CODE 3510–DS–P viroids, mollusks, phytoplasmas, Requests for foreign language spiroplasmas, etc., attacking the crop; interpretation or other auxiliary aids and (3) Plant part attacked by each pest, should be directed to Gianna Marrone at DEPARTMENT OF COMMERCE pest life stages associated with plant (202) 606–9633. part attacked, and location of pest (in, International Trade Administration SUPPLEMENTARY INFORMATION: The on, or with commodity). [A–533–857, A–580–870, A–583–850, A–489– Committee was established September Description of Respondents: Business 816, A–552–817] 2, 1999. The Committee advises the or other for-profits; Federal Director of BEA on matters related to the Certain Oil Country Tubular Goods Government. development and improvement of BEA’s From India, the Republic of Korea, Number of Respondents: 5. national, regional, industry, and Taiwan, the Republic of Turkey, and Frequency of Responses: Reporting: international economic accounts, the Socialist Republic of Vietnam: On occasion. especially in areas of new and rapidly Notice of Correction to the Antidumping Duty Orders With Total Burden Hours: 28. growing economic activities arising from innovative and advancing Respect to Turkey and the Socialist Ruth Brown, technologies, and provides Republic of Vietnam Departmental Information Collection recommendations from the perspectives AGENCY: Enforcement and Compliance, Clearance Officer. of the economics profession, business, International Trade Administration, [FR Doc. 2014–23525 Filed 10–2–14; 8:45 am] and government. This will be the Department of Commerce. Committee’s twenty-seventh meeting. BILLING CODE 3410–34–P DATES: Effective Date: October 3, 2014.

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FOR FURTHER INFORMATION CONTACT: DEPARTMENT OF COMMERCE and parental consent and commitment Emily Halle at (202) 482–0176 (India); form. Victoria Cho at (202) 482–5075 or National Institute of Standards and II. Method of Collection Deborah Scott at (202) 482–2657 Technology (Korea); Thomas Schauer at (202) 482– The initial application is via NIST’s 0410 (Taiwan); Catherine Cartsos at Proposed Information Collection; on-line Student Information System. (202) 482–1757 (Turkey); or Fred Baker Comment Request; Summer High The finalist application is via email to at (202) 482–2924 or Davina Friedmann School Intern Program (SHIP) [email protected]. at (202) 482–0698 (Vietnam), AD/CVD AGENCY: National Institute of Standards III. Data Operations, Enforcement and and Technology, Commerce. Compliance, International Trade OMB Control Number: 0693–XXXX. ACTION: Notice. Administration, U.S. Department of Form Number(s): None. Type of Review: Regular submission Commerce, 14th Street and Constitution SUMMARY: The Department of Avenue NW., Washington, DC 20230. (new collection). Commerce, as part of its continuing Affected Public: Individuals or SUPPLEMENTARY INFORMATION: On effort to reduce paperwork and households; Local government (public September 10, 2014, the Department of respondent burden, invites the general schools). Commerce (the Department) published public and other Federal agencies to Estimated Number of Respondents: the antidumping duty orders on certain take this opportunity to comment on 350. oil country tubular goods (OCTG) from proposed and/or continuing information Estimated Time per Response: 8 India, the Republic of Korea (Korea), collections, as required by the hours. Taiwan, the Republic of Turkey Paperwork Reduction Act of 1995. Estimated Total Annual Burden (Turkey), and the Socialist Republic of DATES: Written comments must be Hours: 2,800. Vietnam (Vietnam).1 Footnote 1 of the submitted on or before December 2, Estimated Total Annual Cost to Orders contains a list of the Federal 2014. Public: $0. Register citations for the Department’s ADDRESSES: Direct all written comments IV. Request for Comments affirmative final determinations of sales to Jennifer Jessup, Departmental Comments are invited on: (a) Whether at less than fair value (LTFV) in the Paperwork Clearance Officer, investigations of OCTG from India, the proposed collection of information Department of Commerce, Room 6616, is necessary for the proper performance Korea, Taiwan, Turkey, and Vietnam. 14th and Constitution Avenue NW., Incorrect page numbers were cited for of the functions of the agency, including Washington, DC 20230 (or via the whether the information shall have the final determinations of sales at Internet at [email protected]). LTFV in the investigations of OCTG practical utility; (b) the accuracy of the FOR FURTHER INFORMATION CONTACT: from Turkey and Vietnam. This notice agency’s estimate of the burden provides the citations for these two Requests for additional information or (including hours and cost) of the notices with the correct page numbers. copies of the information collection proposed collection of information; (c) The correct citations are: Certain Oil instrument and instructions should be ways to enhance the quality, utility, and Country Tubular Goods From the directed to Jeremy Lawson, Civil Rights clarity of the information to be Republic of Turkey: Final Determination and Diversity Office, NIST, 100 Bureau collected; and (d) ways to minimize the of Sales at Less Than Fair Value and Dr., Mail Stop 1080, Gaithersburg, MD burden of the collection of information Affirmative Final Determination of 20899–1080; 301–975–5481; on respondents, including through the Critical Circumstances, in Part, 79 FR [email protected]. use of automated collection techniques 41971 (July 18, 2014) and Certain Oil SUPPLEMENTARY INFORMATION: or other forms of information technology. Country Tubular Goods From the I. Abstract Socialist Republic of Vietnam: Final Comments submitted in response to Determination of Sales at Less Than The Summer High School Intern this notice will be summarized and/or Fair Value and Final Affirmative Program (SHIP) is a NIST-wide 8-week included in the request for OMB Determination of Critical summer intern program for students approval of this information collection; Circumstances, 79 FR 41973 (July 18, who will have finished their junior or they also will become a matter of public 2014). senior year of high school by the start record. of the program, are U.S. citizens, and are This notice serves as a correction and Dated: September 30, 2014 interested in scientific research. Gwellnar Banks, is published in accordance with section Students selected for this competitive 777(i) of the Tariff Act of 1930 as Management Analyst, Office of the Chief volunteer program will participate in Information Officer. amended. cutting-edge research at NIST, and will [FR Doc. 2014–23610 Filed 10–2–14; 8:45 am] Dated: September 25, 2014. work closely with NIST staff scientists BILLING CODE 3510–13–P Paul Piquado, and engineers on a specific research Assistant Secretary for Enforcement and problem. Compliance. The first round of the application DEPARTMENT OF COMMERCE [FR Doc. 2014–23666 Filed 10–2–14; 8:45 am] process is completed via an on-line BILLING CODE 3510–DS–P application through the Student National Oceanic and Atmospheric Information System which collects basic Administration biographical information about the 1 See Certain Oil Country Tubular Goods From RIN 0648–XD524 India, the Republic of Korea, Taiwan, the Republic student. This information is reviewed of Turkey, and the Socialist Republic of Vietnam: and finalists are invited to submit Pacific Fishery Management Council; Antidumping Duty Orders; and Certain Oil Country secondary materials via email to ship@ Tubular Goods From the Socialist Republic of Public Meeting Vietnam: Amended Final Determination of Sales at nist.gov. These secondary materials Less Than Fair Value, 79 FR 53691 (September 10, include a resume, transcript, letters of AGENCY: National Marine Fisheries 2014) (Orders). recommendation, personal statement, Service, National Oceanic and

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Atmospheric Administration, document and any issues arising after recommendations and other scientific Commerce. publication of this document that advice for Gulf of Maine cod for fishing ACTION: Notice of public meeting. require emergency action under section years 2015–17; review stock assessment 305(c) of the Magnuson-Stevens Fishery information, consider information SUMMARY: The Pacific Fishery Conservation and Management Act, provided by the Groundfish PDT and Management Council’s (Council) provided the public has been notified of develop overfishing levels (OFLs) and Salmon Subcommittee of the Scientific the intent to take final action to address ABC recommendations for Georges Bank and Statistical Committee (SSC) will the emergency. winter flounder, Gulf of Maine winter hold a joint methodology review flounder and pollock for fishing years Special Accommodations meeting with the Salmon Technical 2015–17. The committee may not Team (STT) and Model Evaluation The meetings are physically complete all the ABC recommendations Workgroup (MEW), followed by a accessible to people with disabilities. for these stocks at this meeting. They single-day meeting of the STT, all of Requests for sign language will also discuss the format of which will be open to the public. interpretation or other auxiliary aids operational stock assessment reports. DATES: The joint methodology review should be directed to Mr. Kris The committee will address other meeting will be held Tuesday, October Kleinschmidt at (503) 820–2425 at least business as necessary. 21, from 1 p.m. to 5 p.m., Wednesday, 5 days prior to the meeting date. Although non-emergency issues not October 22, 2014, from 9 a.m. to 5 p.m., Dated: September 30, 2014. contained in this agenda may be and Thursday, October 23, 2014, from 9 Tracey L. Thompson, discussed, those issues may not be the a.m. to noon, or until business is Acting Deputy Director, Office of Sustainable subject of formal action during this completed. The STT will continue with Fisheries, National Marine Fisheries Service. meeting. Action will be restricted to a one-day meeting on Friday, October [FR Doc. 2014–23617 Filed 10–2–14; 8:45 am] those issues specifically identified in 24, 2014, from 9 a.m. to 5 p.m. this notice and any issues arising after BILLING CODE 3510–22–P ADDRESSES: Both meetings will be held publication of this notice that require at the Sheraton Portland Airport Hotel, emergency action under section 305(c) 8235 NE Airport Way, Portland OR DEPARTMENT OF COMMERCE of the Magnuson-Stevens Fishery 97220; telephone: (503) 281–2500. The Conservation and Management Act, methodology review meeting will be in National Oceanic and Atmospheric provided the public has been notified of the St. Helens D Room and the STT Administration the Council’s intent to take final action meeting will be in the Garden C Room. to address the emergency. RIN 0648–XD529 Council address: Pacific Council, Special Accommodations 7700 NE Ambassador Place, Suite 101, New England Fishery Management Portland, OR 97220–1384. Council; Public Meeting This meeting is physically accessible FOR FURTHER INFORMATION CONTACT: Mr. to people with disabilities. Requests for Mike Burner, Pacific Council; AGENCY: National Marine Fisheries sign language interpretation or other telephone: (503) 820–2414. Service (NMFS), National Oceanic and auxiliary aids should be directed to SUPPLEMENTARY INFORMATION: The Atmospheric Administration (NOAA), Thomas A. Nies (see ADDRESSES) at least purpose of the methodology review Commerce. 5 days prior to the meeting date. meeting is to discuss and review ACTION: Notice; public meeting. Authority: 16 U.S.C. 1801 et seq. proposed changes to analytical methods SUMMARY: The New England Fishery Dated: September 29, 2014. used in salmon management. Management Council’s (Council) Tracey L. Thompson, Recommendations from the Scientific and Statistical Committee Acting Deputy Director, Office of Sustainable methodology review meeting will be (SSC) will meet to consider actions Fisheries, National Marine Fisheries Service. presented at the November 14–19, 2014 affecting New England fisheries in the [FR Doc. 2014–23542 Filed 10–2–14; 8:45 am] Council meeting in Costa Mesa, CA exclusive economic zone (EEZ). BILLING CODE 3510–22–P where the Council is scheduled to take final action on the proposals. Final DATES: The meeting will be held on Monday, October 20, 2014 at 8:30 a.m. methodology review topics were DEPARTMENT OF COMMERCE adopted by the Council at their ADDRESSES: The meeting will be held at September 12–17, 2014 meeting in the DoubleTree by Hilton, 50 Ferncroft National Oceanic and Atmospheric Spokane, WA and are posted on the Road, Danvers, MA 01923; telephone: Administration Pacific Council’s Web page (978) 777–2500; fax: (978) 750–7991. (www.pcouncil.org). The STT will hold Council address: New England RIN 0648–XD518 a 1-day session following the Fishery Management Council, 50 Water Street, Mill 2, Newburyport, MA 01950. Western Pacific Fishery Management methodology review to discuss items on Council; Public Meetings the Council’s November 2014 meeting FOR FURTHER INFORMATION CONTACT: agenda. Major topics include: The Thomas A. Nies, Executive Director, AGENCY: National Marine Fisheries salmon methodology review, the Lower New England Fishery Management Service (NMFS), National Oceanic and Columbia River coho harvest matrix, Council; telephone: (978) 465–0492. Atmospheric Administration (NOAA), and the preseason salmon management SUPPLEMENTARY INFORMATION: Commerce. schedule, process, and documentation Agenda items: ACTION: Notice of public meetings and for 2015. The New England Fishery hearings. Although non-emergency issues not Management Council’s SSC will meet contained in the meeting agenda may be to: Review stock assessment SUMMARY: The Western Pacific Fishery discussed, those issues may not be the information, consider information Management Council (Council) will subject of formal action during these provided by the Groundfish PDT and hold meetings of its 117th Scientific and meetings. Action will be restricted to continue to develop acceptable Statistical Committee (SSC) and its those issues specifically listed in this biological catch (ABC) 161st Council meeting to take actions on

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fishery management issues in the Schedule and Agenda for the Education Management Organization (RFMO) Western Pacific Region. The Council Steering Committee Measures will also convene meetings of the 1. Development of a Framework 3 p.m.–5 p.m., Monday, October 13, Council’s Education Steering Process to Implement RFMO 2014 Committee, Fishery Data Collection and Conservation and Management Research Committee, Pelagic Standing 1. Scholarship Program Measures under the Pelagic FEP Committee, and Executive and Budget 2. Internships 2. Draft Proposed Regulations to Standing Committee. 3. Educational Resources Address Overfishing and DATES: The meetings will be held 4. Public Comment Overfished Status of Western Monday, October 13, 2014 through 5. Discussion and Recommendations Central Pacific Ocean North Pacific (WCPO NP) Striped Marlin (Action Thursday, October 23, 2014. For specific Schedule and Agenda for 117th SSC Item) dates, times and agendas, see Meeting SUPPLEMENTARY INFORMATION. B. Bigeye Stock Status (Action Item) 8:30 a.m.–5 p.m., Tuesday, October 14, C. Hawaii Yellowfin and Bigeye ADDRESSES: The Education Steering 2014 Commercial Minimum Size Limit Committee, 117th SSC, the Fishery Data 1. Introductions (Action Item) Collection and Research Committee and D. Report on Disproportionate Burden Standing Committee meetings will be 2. Approval of Draft Agenda and Assignment of Rapporteurs Workshop held at the Council office, 1164 Bishop E. 2014 El Nin˜ o Update 3. Status of the 116th SSC Meeting Street, Suite 1400, Honolulu, HI 96813; F. International Fisheries Recommendations telephone: (808) 522–8220. The 161st 1. Western and Central Pacific 4. Report from the National Marine Council meeting will be held at the Fisheries Commission (WCPFC) Fisheries Service (NMFS) Pacific Laniakea YWCA-Fuller Hall, 1040 Science Committee Islands Fisheries Science Center Richards Street, Honolulu, HI 96813; 2. WCPFC Northern Committee Director telephone: (808) 538–7061. 3. WCPFC Technical and Compliance 5. Report from NMFS Office of Science The Fishers Forum will be held at the Committee Harbor View Center, Pier 38, 1129 North & Technology 4. US Permanent Advisory Committee Nimitz Highway, Honolulu, HI 96817; 6. Insular Fisheries G. Ocean Legacy telephone: (808) 983–1200. A. NMFS Pacific Islands Fisheries H. Public Comment Background documents will be Science Center’s Response to SSC I. SSC Discussion and available from, and written comments Comments on 2014 Main Hawaiian Recommendations should be sent to, Mr. Edwin Ebisui, Islands (MHI) Deep 7 Bottomfish 9. Protected Species Acting Chair, Western Pacific Fishery Stock Assessment A. Report on the Hawaii Deep-set Management Council, 1164 Bishop B. Report on SSC Subgroup Regarding Longline Biological Opinion (BiOp) Street, Suite 1400, Honolulu, HI 96813, 2014 MHI Deep 7 Bottomfish Stock B. Draft 2014 Marine Mammal Stock telephone: (808) 522–8220 or fax: (808) Assessment Assessment Reports 522–8226. C. Public Comment C. Preliminary Summary of the D. SSC Discussion and FOR FURTHER INFORMATION CONTACT: Molokai Cetacean Survey Recommendations D. Independent Advisory Team for Kitty M. Simonds, Executive Director; 7. Program Planning telephone: (808) 522–8220. Marine Mammal Assessments A. Specifying Acceptable Biological E. Updates on Endangered Species SUPPLEMENTARY INFORMATION: The Catches (ABCs) for the American Act (ESA) and Marine Mammal Education Steering Committee will meet Samoa, Guam and CNMI Bottomfish Protection Act (MMPA) Actions on October 13, 2014, between 3 p.m. (Action Item) 1. Final Determination to List Corals and 5 p.m.; 117th SSC meeting on B. Report on the Center for under the ESA October 14–16, 2014, between 8:30 a.m. Independent Experts (CIE) Review 2. Final Determination to List and 5 p.m.; Fishery Data Collection and on the Biomass Augmented Catch- Scalloped Hammerhead Shark Research Committee October 20, 2014, Maximum Sustainable Yield (BAC– under the ESA between 10 a.m. and 12 noon; the MSY) Model 3. 90-day Finding on a Petition to List Council’s Pelagics and International C. Reconsideration of ABC Seven Species of Pomacentrid Reef Standing Committee on October 20, Recommendations for Coral Reef Fish under the ESA 2014, between 1 p.m. and 3 p.m. and Fish, Crustacean, MHI Deep 7 and 4. Green Turtle Status Review Executive and Budget Standing Non-Deep 7 Bottomfish (Action 5. North Pacific Humpback Whale Committee October 20, between 3 p.m. Item) Status Review and 5 p.m.; the 161st Council meeting D. Discussion to Develop Agenda for 6. Update on the False Killer Whale will be held between 8:30 a.m. and 5 the Fifth National SSC Meeting on Take Reduction Plan p.m. on October 21–23, 2014. In Uncertainties in ABC Specifications Implementation addition, the Council will host a Fishers for Data-limited Stocks 7. Proposed 2015 List of Fisheries Forum on October 21, 2014, between 6 E. Marine Planning and Climate 8. Other Relevant Actions p.m. and 9 p.m. Change Committee F. Public Comment In addition to the agenda items listed F. Public Comment G. SSC Discussion and here, the SSC and Council will hear G. SSC Discussion and Recommendations recommendations from Council Recommendations advisory groups. Public comment 8:30 a.m.–12 noon, Thursday, October periods will be provided throughout the 8:30 a.m.–5 p.m., Wednesday, October 16, 2014 agendas. The order in which agenda 15, 2014 10. Other Business items are addressed may change. The 8. Pelagic Fisheries A. 118th SSC Meeting meetings will run as late as necessary to A. Fishery Ecosystem Plan (FEP) 11. Summary of SSC Recommendations complete scheduled business. Amendment for Regional Fishery to the Council

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Fishery Data Collection and Research D. Regional Electronic Technologies Longline Biological Opinion Committee Implementation Plan B. Draft 2014 Marine Mammal Stock E. Western Pacific Stock Assessment Assessment Reports 10 a.m.–12 noon, Monday, October 20, Review Process and Policy C. Updates on Endangered Species 2014 F. Regional, National and Act and Marine Mammal Protection 1. Welcome Remarks International Outreach & Education Act Actions 2. Introductions G. Advisory Group Reports and 1. Final Determination to List Corals 3. Update on Progress on Data Recommendations under the ESA Collection Projects 1. Fishery Data Collection and 2. Final Determination to List 4. Review of the Strategic Plan Changes Research Committee Scalloped Hammerhead Shark 5. Endorsement and Signing of the 2. Marine Planning and Climate under the ESA Strategic Plan Change Committee 3. 90-day Finding on a Petition to List 6. Revisiting Data Sharing Agreements 3. Education Steering Committee Seven Species of Pomacentrid Reef 7. Planning for the Next Steps H. SSC Recommendations Fish under the ESA 8. Public Comment I. Public Hearing 4. Green Turtle Status Review 9. Discussions and Recommendations J. Council Discussion and Action 5. North Pacific Humpback Whale Status Review Schedule for Council Standing Fishers Forum Harbor View Center 6 6. Update on the False Killer Whale Committee Meetings p.m.–9 p.m. Take Reduction Plan 1 p.m.–3 p.m., Monday, October 20, Hawaii Yellowfin and Striped Marlin Implementation 2014 Management 7. Proposed 2015 List of Fisheries Pelagic and International Standing 8:30 a.m.–5 p.m., Wednesday, October 8. Other Relevant Actions Committee 22, 2014 D. SSC Recommendations E. Public Comment 3 p.m.–5 p.m., Monday, October 20, 8. American Samoa Archipelago F. Council Discussion and Action 2014 A. Motu Lipoti 11. Public Comment on Non-agenda B. Fono Report Executive and Budget Standing Items C. Enforcement Issues Committee D. Community Activities and Issues 8:30 a.m. to 5 p.m., Thursday October Schedule and Agenda for 161st Council E. Education and Outreach Initiatives 23, 2014 Meeting F. American Samoa National Marine 12. Mariana Archipelago Sanctuary 8:30 a.m.–5 p.m., Tuesday, October 21, A. Guam G. Rose Atoll Marine National 1. Isla Informe 2014 Monument 2. Legislative Report 1. Welcome and Introductions H. SSC Recommendations 3. Enforcement Issues A. Swearing In of New and I. Public Comment 4. Community Activities and Issues Reappointed Members J. Council Discussion and Action B. Commonwealth of Northern 2. Approval of the 161st Agenda 9. Hawaii Archipelago Mariana Islands 3. Approval of the 160th Meeting A. Moku Pepa 1. Arongol Falu´ Minutes B. Legislative Report 2. Legislative Report 4. Executive Director’s Report C. Enforcement 3. Enforcement Issues 5. Presentation on State of Ecosystem D. Main Hawaiian Islands Bottomfish 4. Community Activities and Issues 6. Agency Reports 1. PIFSC Response to SSC Comments C. Marianas Trench Marine National A. NMFS on MHI Deep 7 Bottomfish Stock Monument: Islands, Volcanic, and 1. Pacific Islands Regional Office Assessment Trench Units 2. Pacific Islands Fisheries Science 2. Report on SSC Subgroup Regarding D. SSC Recommendations Center 2014 MHI Deep 7 Stock Assessment E. Public Hearing B. NOAA Office of General Counsel, 3. Reconsideration of MHI Deep 7 F. Council Discussion and Action Pacific Islands Section ACL Specification (Action Item) 13. Pelagic & International Fisheries C. U.S. Fish and Wildlife Service 4. State of Hawaii BRFA Management A. FEP Amendment for RFMO D. Enforcement Plan Measures 1. U.S. Coast Guard 5. Regulatory Changes Establishing a 1. Development of a Framework 2. NOAA Office of Law Enforcement Market Delay for the Sale and Process to Implement RFMO 3. NOAA Office of General Counsel, Removal of Non-commercial Bag Conservation and Management Enforcement Section Limits for MHI Bottomfish (Action Measures under the Pelagic FEP E. Public Comment Item) 2. Draft Proposed Regulations to F. Council Discussion and Action E. Community Projects, Activities and Address Overfishing and 7. Program Planning and Research Issues Overfished Status of WCPO NP A. Specifying Annual Catch Limits for 1. Report on Puwalu Striped Marlin (Action Item) American Samoa, Guam, CNMI 2. Council Marine Science Summer B. Bigeye Stock Status (Action Item) Bottomfish (Action Item) Class C. Hawaii Yellowfin and Bigeye B. Report on CIE Review of BAC–MSY 3. Outreach and Education Report Commercial Minimum Size Limit Model (Action Item) F. Hawaiian Islands Humpback Whale (Action Item) C. Reconsideration of ACL National Marine Sanctuary D. American Samoa Exclusive Recommendation and G. SSC Recommendations Economic Zone Albacore Catch Accountability Measures for Coral H. Public Hearing Limit (Action Item) Reef Fish, Crustaceans and MHI I. Council Discussion and Action E. Report on Disproportionate Burden Non-deep 7 Bottomfish (Action 10. Protected Species Workshop Item) A. Report on the Hawaii Deep-set F. International Fisheries

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1. WCPFC Science Committee DEPARTMENT OF COMMERCE • Port Eads, Louisiana Marina Access 2. WCPFC Northern Committee • Overview of Office of Law 3. WCPFC Technical and Compliance National Oceanic and Atmospheric Enforcement (OLE) Gulf Restructuring Committee Administration • Review of 2015–2016 Cooperative 4. US Permanent Advisory Committee RIN 0648–XD525 Enforcement Operations Plan • G. Proposed Expansion of the Pacific State Report Highlights Gulf of Mexico Fishery Management Remote Islands Marine National Red Drum Management Committee Council (Council); Public Meeting Monument (Action Item) Agenda, Monday, October 20, 2014, 11 1. Changes to Monument Boundaries AGENCY: National Marine Fisheries a.m. until 11:30 a.m. 2. Council Action Service (NMFS), National Oceanic and • Scoping Document for Recreational H. SSC Recommendations Atmospheric Administration (NOAA), Red Drum Management and Update I. Standing Committee Commerce. From Special Red Drum Working Group Recommendations ACTION: Notice of public meeting. – Recess – J. Public Hearing K. Council Discussion and SUMMARY: The Gulf of Mexico Fishery Joint Meeting of the Administrative Recommendations Management Council (Council) will Policy and Budget/Personnel 14. Administrative Matters hold meetings of the: Joint Law Committees Agenda, Monday, October A. Council Member and Staff Ethics Enforcement Committee, Gulf Council’s 20, 2014, 1 p.m. until 3 p.m. Law Enforcement Advisory Panel Training • Review of 2010–2014 Expenditures Committee, and Gulf States Law B. Financial Reports and Budget Carryover to 2015 Enforcement Committee, Red Drum • Review and Discussion of Potential C. Administrative Reports Management Committee, Joint D. Council Family Changes Contractual Projects Administrative Policy and Budget/ • 1. Advisory Panel Appointments Personnel Committees, Data Collection Update on Advisory Panels (AP) E. Meetings and Workshops Management Committee, Gulf SEDAR and Scientific and Statistical F. Report on Operational Guidelines Committee, Reef Fish Committee, Committees (SSC) Appointment Process and Structure Workshop Mackerel Committee, and Shrimp • G. Report on MSA Reauthorization Management Committee; in conjunction Discussion of SSC Conflict of Interest Policy H. Other Business with a meeting of the Full Council. The • Continued Review of Draft I. Standing Committee Council will also hold a formal public comment session. Statement of Organization Practices and Recommendations Procedures (SOPPs) Revisions J. Public Comment DATES: The Council meeting will K. Council Discussion and Action convene 8:30 a.m. on Monday, October Data Collection Administrative 15. Election of Officers 20 until 5:30 p.m. on Thursday, October Committee Agenda, Monday, October 16. Other Business 23, 2014. 20, 2014, 3 p.m. until 4:30 p.m. ADDRESSES: Non-Emergency issues not contained Meeting address: The • Calibration Workshop Summary in this agenda may come before the meeting will be held at The Battle Report Council for discussion and formal House Renaissance Mobile Hotel and • Discussion of South Atlantic Council action during its 161st meeting. Spa, located at 26 North Royal Street, Council Recommendations for However, Council action on regulatory Mobile, AL 36602; telephone: (251) Electronic Charter Boat Reporting issues will be restricted to those issues 338–2000. • Discussion of Species Reporting Council address: Gulf of Mexico specifically listed in this document and Requirements Under the Joint Electronic Fishery Management Council, 2203 any regulatory issue arising after Dealer Reporting Amendment North Lois Avenue, Suite 1100, Tampa, publication of this document that • Discussion of Strategies to Improve FL 33607. requires emergency action under section Private Recreational Data Collection and 305(c) of the Magnuson-Stevens Act, FOR FURTHER INFORMATION CONTACT: Mr. Management provided the public has been notified of Douglas Gregory, Executive Director, Gulf of Mexico Fishery Management Gulf SEDAR Committee Agenda, the Council’s intent to take action to Monday, October 20, 2014, 4:30 p.m. address the emergency. Council; telephone: (813) 348–1630; fax: (813) 348–1711; email: doug.gregory@ until 5:30 p.m. Special Accommodations gulfcouncil.org. • SEDAR 38—Gulf of Mexico and These meetings are physically SUPPLEMENTARY INFORMATION: The items South Atlantic King Mackerel accessible to people with disabilities. of discussion for each individual • SEDAR Steering Committee Update Requests for sign language management committee agenda are as • SEDAR Schedule Review interpretation or other auxiliary aids follows: • Updated List of Fishery Research should be directed to Kitty M. Simonds, and Socio-economic Priorities for 2015– (808) 522–8220 (voice) or (808) 522– Joint Meeting of the Gulf Council’s Law 2019 8226 (fax), at least 5 days prior to the Enforcement Administrative Committee – Recess – meeting date. (Council), Law Enforcement Advisory Panel, and Gulf States Law Reef Fish Management Committee Authority: 16 U.S.C 1801 et seq. Enforcement Committee Agenda, Agenda, Tuesday, October 21, 2014, Dated: September 30, 2014. Monday, October 20, 2014, 8:30 a.m. 8:30 a.m.–11:30 a.m. & 1 p.m.–5:30 p.m. Tracey L. Thompson, until 11 a.m. • Estimates of Red Snapper Acting Deputy Director, Office of Sustainable • Usefulness of Charter-for-hire Abundance on Alabama’s Offshore Fisheries, National Marine Fisheries Service. Decals Reefs [FR Doc. 2014–23602 Filed 10–2–14; 8:45 am] • Review of Draft Definition of • Amendment 39—Red Snapper BILLING CODE 3510–22–P Charter Fishing Regional Management

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• Final Action—Amendment 40— 2:30 p.m.–5 p.m.: The Council will webcast will be available on the Recreational Red Snapper Sector receive public testimony on Final Council’s Web site, http:// Separation Action on Reef Fish Amendment 40— www.gulfcouncil.org. • Individual Fishing Quota (IFQ) Sector Separation, Final Action on Although non-emergency issues not Program Review Shrimp Amendment 15—Status contained in this agenda may come • Gag Overfishing Limit (OFL) and Determination Criteria for Penaeid before this group for discussion, those Acceptable Biological Catch (ABC) Shrimp and Adjustments to the Shrimp issues may not be the subject of formal • Final Action—Red Grouper Bag Framework Procedure, Final Action on action during these meetings. Action Limit and Accountability Measures Shrimp Amendment 16—Adjustments will be restricted to those issues Framework Action to the Annual Catch Limit and specifically identified in this notice and • Hogfish Benchmark Assessment Accountability Measures for Royal Red any issues arising after publication of Overfishing Limit (OFL) and Acceptable Shrimp, Final Action on Framework this notice that require emergency Biological Catch (ABC) Action to Modify Recreational Red action under section 305(c) of the • Greater Amberjack Annual Catch Grouper Bag Limits and Accountability Magnuson-Stevens Fishery Limit (ACL)/Annual Catch Target (ACT) Measures, Final Action on Framework Conservation and Management Act, Options Paper Amendment 2 to the Coastal Migratory provided the public has been notified of • Amendment 28—Red Snapper Pelagics Fishery Management Plans the Council’s intent to take final action Allocation (FMP)—Atlantic Migratory Group to address the emergency. • Southeast Fisheries Science Center Spanish Mackerel Trip Limits, and open Special Accommodations (SEFSC) Comments on Red Snapper testimony on any other fishery issues or Abundance Graph concerns. People wishing to speak These meetings are physically – Recess – before the Council should complete a accessible to people with disabilities. Requests for sign language Mackerel Management Committee public comment card prior to the interpretation or other auxiliary aids Agenda, Wednesday, October 22, 2014, comment period. should be directed to Kathy Pereira at 8:30 a.m. until 9:30 a.m. – Recess – 5:30 p.m.–7:30 p.m.: The Council will the Council Office (see ADDRESSES), at • Final Action—Framework continue to receive public testimony. least 5 working days prior to the Amendment 2 to the Coastal Migratory – Recess – meeting. Pelagics Fishery Management Plan Council Session Agenda, Thursday, Note: The times and sequence specified in (FMP) for Atlantic Migratory Group this agenda are subject to change. Spanish Mackerel Trip Limits October 23, 2014, 8:30 a.m. until 5:30 p.m. • Other Business—King Mackerel Gill Authority: 16 U.S.C. 1801 et seq. 8:30 a.m.–4:30 p.m.: The Council will Net Concerns Dated: September 30, 2014. continue to receive committee reports Shrimp Management Committee from the following: Reef Fish Tracey L. Thompson, Agenda, Wednesday, October 22, 2014, Management Committee (8:30 a.m.– Acting Deputy Director, Office of Sustainable 9:30 a.m.–11 a.m. 11:30 a.m.), Shrimp Management Fisheries, National Marine Fisheries Service. • Final Action—Shrimp Amendment Committee (1 p.m.–1:30 p.m.), Red [FR Doc. 2014–23616 Filed 10–2–14; 8:45 am] 15—Status Determination Criteria for Drum Management Committee (1:30 BILLING CODE 3510–22–P Penaeid Shrimp and Adjustments to the p.m.–1:45 p.m.), Gulf SEDAR Shrimp Framework Procedure Management Committee (1:45 p.m.–2 DEPARTMENT OF COMMERCE • Final Action—Shrimp Amendment p.m.), Joint Law Enforcement 16—Adjustments to the Annual Catch Committees (2 p.m.–3 p.m.), Mackerel National Telecommunications and Limit and Accountability Measures for Management Committee (3 p.m.–3:30 Information Administration Royal Red Shrimp p.m.), Data Collection Administrative • Shrimp Amendment 17—Scoping Committee (3:30 p.m.–4 p.m.), and the [Docket No. 140925800–4800–01] Document of the Shrimp Permit Joint Administrative Policy and Budget/ RIN 0660–XC013 Moratorium Personnel Committee (4 p.m.–4:30 p.m.) • 2013 Shrimp Effort and Shrimp 4:30 p.m.–5:15 p.m.: The Council will Telecommunications Assessment of Electronic Logbook (ELB) Program receive a summary report on the Pacific the Arctic Region Update Fishery Management Council Meeting and an update on the RESTORE Act AGENCY: National Telecommunications Council Session Agenda, Wednesday, and Information Administration, U.S. October 22, 2014, 11 a.m. until 7:30 Science Program. 5:15 p.m.–5:30 p.m.: Other Business— Department of Commerce. p.m. Status of Biscayne National Park ACTION: Notice of Inquiry. 11 a.m.–11:10 a.m.: Call to Order and Implementation of Fishing Regulations Introductions, Adoption of Agenda, and –Adjourn – SUMMARY: Consistent with the Approval of Minutes The Agenda is subject to change, and Implementation Plan for the National 11:10 a.m.–11:15 a.m.: Approval of the latest version will be posted on the Strategy for the Arctic Region, the 2015 Committee Appointments Council’s file server, which can be National Telecommunications and 11:15 a.m.–2:30 p.m.: The Council accessed by going to the Council Web Information Administration (NTIA) will receive presentations on the site at http://www.gulfcouncil.org and issues this Notice of Inquiry (Notice) to Proposed Rule Update for the clicking on FTP Server under Quick seek public comment on the current and Aquaculture Fishery Management Plan Links. For meeting materials see folder potential availability of communications (FMP), Evaluation of the Status of ‘‘Briefing Books/Briefing Book 2014–10’’ services in the Arctic region. Kemp’s Ridley Sea Turtle Following the on Gulf Council file server. The DATES: Comments must be received no 2010 Deepwater Horizon Spill using a username and password are both later than November 3, 2014. Revised Assessment Model, Update on ‘‘gulfguest’’. The meetings will be ADDRESSES: Comments may be Red Snapper Federal Violations. webcast over the internet. A link to the submitted by email to

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[email protected]. Comments also includes: (1) Advancing U.S. security distance terrestrial, commercial mobile may be submitted by mail to: National interests; (2) pursuing responsible cellular, public safety services, Telecommunications and Information Arctic Region stewardship; and (3) emergency services, navigational safety Administration, U.S. Department of strengthening international cooperation. and satellite voice, and broadband Commerce, 1401 Constitution Avenue The National Strategy states that these channel availability by the end of NW., Room 4898, Attn: Arctic NOI, efforts will be guided by: ‘‘Providing for 2014;’’ (2) ‘‘[d]evelop a framework that Washington, DC 20230. Responders the security of the United States; lists and prioritizes opportunities for should include the name of the person protecting the free flow of resources and investment in telecom capacity and or the organization, as well as a page commerce; protecting the environment; capability, with a strong emphasis on number on each page of their addressing the needs of indigenous innovative technologies with Federal, submissions. Paper submissions should communities; and enabling scientific State, and international public-private also include a CD or DVD with an research.’’ 2 The United States is a partnerships by the end of 2015;’’ and electronic version of the document, member of an eight nation Arctic (3) ‘‘[i]n collaboration with the Arctic which should be labeled with the name Council, also consisting of Canada, the Council, evaluate feasibility of an and organization of the filer. All email Russian Federation, Denmark, Iceland, Arctic-wide telecommunications messages and comments received are a Finland, Sweden, and Norway.3 network and radio frequency spectrum part of the public record and will The White House issued the management with the goals of generally be posted without change to Implementation Plan for the National compatible interference-free operations the NTIA Web site at http:// Strategy for the Arctic Region and Arctic-wide communications by www.ntia.doc.gov/federal-register- (Implementation Plan) in January 2014, end of the U.S. Chairmanship of the notice/2014/comments-arctic-noi. All setting forth the methodology, process, Arctic Council.’’ 8 personal identifying information (e.g., and approach for executing the National The Implementation Plan states name, address) voluntarily submitted by Strategy.4 The Implementation Plan further that ‘‘[s]uccess of this initiative the commenter may be publicly provides four guiding principles: (1) will be the development of a framework, accessible. Please do not submit any Safeguard peace and stability; (2) make in coordination with Federal, State, confidential or business sensitive decisions using the best available local, tribal, native governments and the information. NTIA intends to use the information; (3) pursue innovative commercial enterprise, to prioritize information provided in response to this arrangements; and (4) consult and investments in new facility and Notice about potential future plans for coordinate with Alaska Natives.5 equipment installations such as high- communications networks in Arctic Furthermore, the Implementation Plan powered high frequency radio stations, Alaska only in the aggregate, excluding emphasizes that the successful satellite ground stations, fixed companies’ names and customer implementation of the National Strategy microwave radio stations, public safety information. Additionally, this will depend upon the active engagement radio facilities, mobile cellular base information will be used to describe and coordination with Alaska Natives stations, and fiber optic cable potential future communications and the State of Alaska.6 installations that enhance security and developments to fill the gaps where The Implementation Plan calls on safety in the Arctic.’’ 9 services are not currently provided. NTIA, with support from the NTIA and its Federal partners will FOR FURTHER INFORMATION CONTACT: Department of Defense, Department of leverage information currently available Helen Shaw, National Homeland Security (U.S. Coast Guard), from government, commercial, non- Telecommunications and Information Department of Transportation, and the profit, and academic entities. For Administration, U.S. Department of Federal Communications Commission example, NTIA’s State Broadband Commerce, 1401 Constitution Avenue (FCC), to ‘‘assess the telecommunication Initiative funded a comprehensive NW., Room 4874, Washington, DC infrastructure in the Arctic and use new assessment of broadband infrastructure 20230; telephone: (202) 482–1157; email technology to support improved across Alaska, which resulted in an [email protected]. Please direct communications in the region, August 2013 report entitled A Blueprint media inquiries to NTIA’s Office of including in areas of sparse population for Alaska’s Broadband Future 7 Public Affairs, (202) 482–7002. to facilitate emergency response.’’ The (Blueprint Report).10 We will also utilize Implementation Plan outlines three SUPPLEMENTARY INFORMATION: data from the National Broadband Map distinct deliverables: (1) ‘‘[a]ssess and the Alaska Emergency Response I. Background current and potential availability of Guide for Small Communities.11 telecommunications services in the On May 10, 2013, President Obama II. Objectives of This Notice issued the National Strategy for the Arctic region, including local and long- Arctic Region (National Strategy) to Effective communications services are articulate strategic priorities to enable 2 Id. at 4. critical to accommodate the increase in 3 the United States to ‘‘respond effectively For purposes of this Notice, the ‘‘pan Arctic’’ commercial, residential, governmental, region is defined as the region above the Arctic and other critical economic and social to challenges and emerging Circle that includes the areas of all eight Arctic opportunities arising from significant Council member nations. activities across Arctic Alaskan increases in Arctic activity due to the 4 Implementation Plan for the National Strategy diminishment of sea ice and the for the Arctic Region, The White House, January 8 Id. at 6–7. 2014, available at http://www.whitehouse.gov/sites/ 9 Id. at 7. emergence of a new Arctic _ _ _ _ default/files/docs/implementation plan for the 10 A Blueprint for Alaska’s Broadband Future, 1 ______environment.’’ The National Strategy national strategy for the arctic region - fi....pdf. Statewide Broadband Task Force (August 2013), 5 Id. at 4. available at http://www.alaska.edu/files/oit/ 1 National Strategy for the Arctic Region, The 6 Press Release, White House Releases bbtaskforce/2013-08-AK-Broadband-Task-Force- White House (May 10, 2013), available at http:// Implementation Plan for the National Strategy for Report%7CA-Blueprint-for-Alaska’s-Broadband- www.whitehouse.gov/sites/default/files/docs/nat_ the Arctic Region, National Security Council (Jan. Future.pdf. arctic_strategy.pdf. For purposes of this Notice, the 30, 2014), available at http://www.whitehouse.gov/ 11 Alaska Emergency Response Guide for Small Arctic Region is defined as the geographic region blog/2014/01/30/white-house-releases- Communities, State of Alaska Department of north of the Arctic Circle, which is at 66° 33′ 39″ implementation-plan-national-strategy-arctic- Military and Veterans Affairs and Homeland North latitude. The area includes offshore areas region. Security & Emergency Management (March 2013), such as the Chukchi Sea and the Beaufort Sea. 7 Implementation Plan at 6. available at http://ready.alaska.gov.

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communities, as well as the pan-Arctic wireless networks (point-to-point, point- and services; (b) potential networks and region in general. A robust to-multipoint), mobile wireless services; (c) recommendations to foster communications infrastructure is a networks, Wi-Fi networks, fiber and the deployment of advanced critical tool in economic development, microwave-based middle-mile communication networks and services; and it is expected that communications networks, satellite systems, submarine and (d) adoption barriers. Please send networks will contribute to small cable networks, terrestrial broadcast links to relevant documents, such as business development, economic networks, high frequency (HF) radio studies and reports. growth, and corresponding employment networks, very high frequency (VHF), increases. Accurate and reliable unlicensed systems, and any forms of IV. Questions About networks and services, such as hybrid networks. Telecommunications Services and radionavigation, are critical to the safety • General Communications Services: Technologies in Arctic Alaskan and security of the region. Voice, data, and video services that can Communities and the Pan-Arctic This Notice offers an opportunity for be delivered to fixed or mobile devices. Region all interested parties to provide • Dedicated Networks and/or Special (1) Existing and Potential Networks information regarding existing and Communications Services: Public safety, and Services in Arctic Alaska: Which potential communications technologies, emergency, search and rescue services, Arctic Alaskan communities have services and applications for the Arctic radionavigation, aeronautical, maritime access to, or lack access to, the network region. We invite input from communications, weather services, or technologies and communications communication service providers that other categories for specific user services that enable local residents, currently serve, or plan to serve, Arctic segments. businesses, community institutions, Alaska and the pan-Arctic region. We We seek information about the local authorities, and other user groups also seek comment from subject matter location and the adequacy of existent to effectively meet their experts on the questions below. We networks owned and managed by communications requirements? What further invite feedback from all user commercial service providers, network technologies and services are segments (e.g., residential, business, government entities, non-profits, being planned to address both current government, or community research and education entities, or any and emerging user needs? organizations) residing within the other ownership and management (2) Wireline-Based Broadband Alaskan portion of the Arctic and all models. Many of these networks and Services: Which Arctic Alaskan users whose activities may require services target terrestrial-based users communities have access to fixed communications access across any (e.g., mobile cellular, terrestrial fiber, wireline services that offer a minimum portion of the Arctic. fixed wireless). Input should pertain to broadband speed of 4 Mbps download For purposes of this Notice, the Arctic the network infrastructure and services and 1 Mbps upload? 12 For such Region of Alaska is defined as the within the Arctic portion of Alaska. communities, is access available to all geographic region north of the Arctic Other services may address the needs of homes, businesses, and community ° ′ ″ Circle, which is at 66 33 39 North both Alaskan-based and pan-Arctic anchor institutions? For communities latitude. The area includes offshore users (e.g., satellite, maritime with fiber, what factors enable the areas such as the Chukchi Sea and the communications). business case for such deployment? For Beaufort Sea. However, parties may To help guide commenters, we seek communities that have advanced speeds submit information and data outside of information about the availability and via copper-based plant, please cite the this geographic area if its inclusion is adequacy of telecommunications types of upgrades undertaken (e.g., services in the following Arctic Alaskan relevant to the questions that follow. copper-bonding, hybrid fiber systems, or communities and key geographic middle-mile upgrades to central offices). III. Request for Comments on Available locations: Alatna, Allakaket, Ambler, For communities with microwave or and Planned Communications Services Anaktuvuk Pass, Arctic Village, fiber backhaul, what key enablers led to The Implementation Plan specifies a Atqasuk, Barrow (including Point such deployment (e.g., federal or state number of existing and potential Barrow), Beaufort Sea area, Beechey subsidy, public-private partnerships, services for NTIA to assess, including: Point, Bettles, Cape Blossom, Cape innovative business models)? Local and long-distance terrestrial, Lisburne, Chalkyitsik, Chandalar, (3) Fixed Wireless Broadband commercial mobile cellular, public Chuckchi Sea area, Coldfoot, Deadhorse, Services: Which Arctic Alaskan safety services, emergency services, Evansville, Fort Yukon, Kaktovik, communities have access to fixed navigational safety, satellite voice, and Kiana, Kivalina, Kobuk, Kotzebue, New wireless broadband with minimum broadband services. These services Allakaket, Noatak, Northstar Island, broadband speeds of 4 Mbps download reflect a variety of network technologies. Noorvik, Nuiqsut, Point Hope, Point and 1 Mbps upload? What are the key We seek comment on the availability of Lay, Prudhoe Bay/Prudhoe Bay Oil advantages and limitations of these all network technologies, general Field, Red Dog Mine, Selawik, networks? What best practices and communications services, and dedicated Sheshalik, Shungnak, Umiat, Venetie, lessons can be applied to expand fixed networks and special services targeted Wainwright, and Wiseman. This list wireless solutions to other underserved for specific user segments in Arctic should not be considered all-inclusive, Arctic Alaskan communities? Alaska. Interested parties should, and absence from the list should not (4) Mobile Wireless: Which Arctic therefore, provide information on the preclude responses on other Arctic Alaskan communities have access to availability and adequacy of networks locations. mobile wireless broadband services that and services listed below, and any We encourage a broad response in others that support the safety and order to assist our efforts to develop a 12 Federal Communications Commission, Tenth security, economic development, and comprehensive assessment that Broadband Progress Notice of Inquiry (August other objectives in Arctic Alaska that considers all service providers, user 2014), available at http://transition.fcc.gov/Daily_ were noted in the National Strategy. segments, stakeholders, and other Releases/Daily_Business/2014/db0805/FCC-14- • 113A1.pdf. The Commission applies this General Network Technologies: interested parties. We welcome benchmark to assess the pace of broadband Wireline networks (copper, cable, responses and comments covering the deployment, and has asked in the cited Notice optical fiber, or hybrid networks), fixed following areas: (a) Available networks whether it should modify this threshold.

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offer at least 4 Mbps download and 1 services used for search and rescue (11) Aeronautical and Maritime Mbps upload speeds? What percentage operations adequate or are additional Radionavigation: What radionavigation of households has replaced wireline services necessary? systems are currently used by services with mobile wireless services? (7) Satellite Communications commercial ships and aircrafts in the Under what circumstances are mobile Services: What specific satellite-based Arctic region? What are the key wireless services considered the most services are widely used by Arctic strengths and limitations of these effective broadband solution for Arctic Alaskan communities and users across systems, especially with regard to Alaskan communities, taking into the pan-Arctic region? What are the location reliability? What new satellite- account pricing, coverage, service strengths and limitations of using based navigation systems are being quality, scale, and other key factors? satellites generally and for specific planned, and what are their comparative What are the key barriers (e.g., communications services? What key advantages relative to current systems? economic, technology, regulatory, or dependencies and factors impact the What key dependencies and factors spectrum availability) preventing wide- likelihood of these planned systems impact the likelihood of these systems scale deployment of third and fourth being launched in a timely manner? being launched in a timely manner? generation (3G and 4G) technologies in Which specific user segments are being (12) Weather and Other Information the Arctic Alaskan region? To what targeted and what services will be Services: How effectively do broadcast extent is the lack of middle-mile fiber or offered? Do existing and planned and other networks support the delivery other broadband backhaul to base satellite systems target the broader pan- of weather monitoring alerts (including stations a key barrier to higher speed Arctic footprint and provide 24/7 warnings, watches, and forecasts) and deployments? availability? For areas where satellites non-weather hazard alerts across Arctic (5) Public Safety Services: Which constitute the only form of Alaska and the pan-Arctic region, Arctic Alaskan communities have communications, what ensures especially with regard to speed of access to, or lack access to, wire and reasonable pricing and service quality? delivery and service reliability? How do wireless public safety communications In regard to older satellites that were Arctic broadcasts and other information systems used by law enforcement, fire formerly in the geostationary orbit and reports for weather monitoring compare emergency, and emergency medical first are now operating in an inclined orbit, to those services in other parts of responders? Are there plans to extend how many hours of operation and what Alaska? What initiatives are underway, the Alaska Land Mobile Radio network quality of service do they offer in the or can be recommended, to improve the (ALMR) and the State of Alaska Arctic Alaskan and in the pan-Arctic delivery and receipt of weather Telecommunications System (SATS) to area? information and other critical alerts, (8) Broadcasting and Broadcasting- any Arctic Alaskan communities? What including system upgrades and/or new Satellite Services: What methods are are the benefits and limitations of infrastructure deployments? What used to receive radio and television extending the ALMR and SATS innovations across satellite imaging and broadcast signals in Arctic Alaskan networks to these communities and first other technology developments offer the responders and what key barriers may areas? What improvements can be made greatest potential? limit this extension? Which other if such signals are not readily available? (13) High Frequency Radio network technologies and services are Does the Alaska Rural Communications Communications (3–30 MHz): How do used by public safety professionals (e.g., System (ARCS) provide adequate high frequency (HF) radio systems serve dispatch land mobile radio systems, broadcasting coverage in the Arctic commercial mobile radio, mobile Alaskan communities? To what extent Arctic Alaskan end-users and to what satellite services, high-frequency), and do the broadband speeds of other degree are they used especially for what are the key strengths and terrestrial and satellite networks enable emergency and search and rescue limitations of these networks and the delivery of high-quality video? communications? What are the services? How is communications (9) Submarine Cable Networks: How comparative advantages and limitations interoperability achieved among various do existing submarine cable networks of HF radio relative to other first responders, and among federal, currently support the delivery of technologies, especially with regard to state, and local agencies? What network communications services in Arctic reliability, privacy, and degree of technologies and services are being Alaskan communities and the pan- availability after considering seasonal planned for public safety Arctic region? What are the advantages and temporal variances? Which communications, and what are the key and limitations of these networks? How frequencies are currently used and enablers and challenges with regard to will new submarine cable facilities which ones offer the highest quality of the rollout of these networks? being planned for this region contribute service? What improvements have been (6) Emergency Communications and to the performance, economics, and made, or are planned, on HF radios to Search and Rescue: What are the overall network access for the improve communications? emergency wired and wireless previously mentioned services? What is (14) Very High Frequency Radio communications services available the timetable for building and operating Communications (30–300 MHz): How within the listed Arctic Alaska these planned facilities and what key do Arctic Alaskan residents use VHF communities, and other communities risks could impact their timing, scale, radios to communicate? and locations, and near and far offshore availability, and overall sustainability? (15) Unlicensed (License-Exempt) areas? How would these communities (10) Aeronautical and Maritime Systems: What applications and services connect into the overall Alaskan Communications: What utilizing unlicensed spectrum bands are communications backbone network in communications systems and used across the Arctic region and to case of a major emergency? To what technologies support aircraft and what extent? To what extent is extent are there areas without any maritime voice and data unlicensed spectrum used for providing emergency communications services? communications? What are the key broadband for residential and business What communications services are used strengths and limitations of these users? What speeds are available to for search and rescue operations and networks? What new systems are being these users? To what extent do power what is their availability and reliability? planned to address aviation and limits and other technical restrictions in Are the existing communications maritime user needs? unlicensed spectrum bands impede the

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ability to deliver services to more homes COMMITTEE FOR PURCHASE FROM Medium and businesses? PEOPLE WHO ARE BLIND OR NSN: 8415–00–SAM–3808—Yellow, Size SEVERELY DISABLED Medium (16) Existing and Potential Networks NSN: 8415–00–SAM–3809—Yellow, Size and Services Across the Pan-Arctic Small Procurement List; Proposed Additions NSN: 8415–00–SAM–3810—Yellow, Size Region: Which pan-Arctic regions have and Deletion access to, or lack access to, network Large technologies and communications AGENCY: Committee for Purchase From NSN: 8415–00–SAM–3811—Green, Size Medium services critical to the safety and People Who Are Blind or Severely NSN: 8415–00–SAM–3812—Red, Size Small security of the pan-Arctic region, and Disabled. NSN: 8415–00–SAM–3813—Red, Size the increasing activity across ACTION: Proposed additions to and Medium commercial, maritime, research, deletions from the Procurement List. NSN: 8415–00–SAM–3814—Red, Size Large tourism, and other growing sectors? NSN: 8415–00–SAM–3815—Blue, Size Small SUMMARY: The Committee is proposing What network technologies and services T-Shirt, Mesh, Physical Fitness, USMC, to add products and services to the are being planned across the pan-Arctic Unisex, Short Sleeve Procurement List that will be furnished NSN: 8415–00–SAM–3771 —, Gold, Size region to address both current and by nonprofit agencies employing emerging user needs? Small persons who are blind or have other NSN: 8415–00–SAM–3772—Gold, Size (17) Fostering the Deployment of severe disabilities and, deletes a service Medium Advanced Communications Networks previously provided by such agency. NSN: 8415–00–SAM–3773—Gold, Size Large and Services in Arctic Alaskan DATES: Comments Must Be Received On NSN: 8415–00–SAM–3774—Gold, Size X- Communities: What strategies are Or Before: 11/3/2014. Large recommended to facilitate the NSN: 8415–00–SAM–3775—Blue, Size Small ADDRESSES: Committee for Purchase NSN: 8415–00–SAM–3776—Blue, Size deployment of additional From People Who Are Blind or Severely Medium communications capabilities across Disabled, 1401 S. Clark Street, Suite NSN: 8415–00–SAM–3777—Blue, Size Large Arctic Alaska? These recommendations 10800, Arlington, Virginia, 22202–4149. NSN: 8415–00–SAM–3778—Blue, Size X- may involve commercial or public FOR FURTHER INFORMATION OR TO SUBMIT Large NSN: 8415–00–SAM–3779—Maroon, Size X- investment, new business models, COMMENTS CONTACT: Barry S. Lineback, policy and regulatory changes (federal, Small Telephone: (703) 603–7740, Fax: (703) NSN: 8415–00–SAM–3780—Maroon, Size state, or local), public-private 603–0655, or email CMTEFedReg@ Small partnerships, research and innovation AbilityOne.gov. NSN: 8415–00–SAM–3781—Maroon, Size developments, or other suggestions. SUPPLEMENTARY INFORMATION: This Medium NSN: 8415–00–SAM–3782—Red, Size Small Please comment on best practices in notice is published pursuant to 41 other Alaskan communities and other NSN: 8415–00–SAM–3783—Red, Size U.S.C. 8503(a)(2) and 41 CFR 51–2.3. Its Medium rural and remote areas. purpose is to provide interested persons NSN: 8415–00–SAM–3784—Red, Size Large (18) Fostering the Deployment of an opportunity to submit comments on NSN: 8415–00–SAM–3785—Red, Size X- Advanced Communication Networks the proposed actions. Large NSN: 8415–00–SAM–3786—Gray, Size Small and Services in the Pan-Arctic Region: Additions What would facilitate the deployment of NSN: 8415–00–SAM–3787—Gray, Size If the Committee approves the Medium advanced networks to ensure the safety, NSN: 8415–00–SAM–3788—Gray, Size Large security, and the commercial interests of proposed additions, the entities of the Federal Government identified in this NSN: 8415–00–SAM–3789—Green, Size X- the United States and other Small notice will be required to procure the international users in the pan-Arctic NSN: 8415–00–SAM–3790—Green, Size products and services listed below from region? These recommendations may Small nonprofit agencies employing persons involve commercial or public NSN: 8415–00–SAM–3791—Green, Size who are blind or have other severe Medium investment, new business models, disabilities. NSN: 8415–00–SAM–3792—Green, Size policy and regulatory changes (federal The following products and services Large or international), international are proposed for addition to the NSN: 8415–00–SAM–3793—Black W/ agreements, public-private partnerships, Procurement List for production by the Weapons Logo, Size Small NSN: 8415–00–SAM–3794—Black W/ research and innovation developments, nonprofit agencies listed: or other suggestions. We seek comment Weapons Logo, Size Medium Products NSN: 8415–00–SAM–3795—Black W/ on best practices from other pan-Arctic Weapons Logo, Size Large Sweatshirt, Physical Fitness, USMC, Unisex, locations, and other rural and remote NSN: 8415–00–SAM–3796—Gray, Size X- Long Sleeve areas. Small NSN: 8415–00–SAM–3800—Black, Size X- (19) Adoption Barriers: What key NSN: 8415–00–SAM–3797—Black W/Drill Large Instructor Logo, Small barriers limit the adoption of existing NSN: 8415–00–SAM–3801—Black, Size NSN: 8415–00–SAM–3798—Black W/Drill services for users across both Arctic Small Instructor Logo, Medium Alaska and the broader pan-Arctic NSN: 8415–00–SAM–3802—Black, Size NSN: 8415–00–SAM–3799—Black W/Drill region? How can these adoption barriers Medium Instructor Logo, Large be addressed? NSN: 8415–00–SAM–3803—Black, Size NPA: Beaufort Vocational Rehabilitation Large Center, Beaufort, SC Dated: September 29, 2014. NSN: 8415–00–SAM–3804—Black, Size X- Contracting Activity: Dept of the Navy, Lawrence E. Strickling, Large Commanding General, MCRD, Parris Assistant Secretary for Communications and NSN: 8415–00–SAM–3805—Maroon, Size Island, SC Small Coverage: C-List for 100% of the requirement Information. NSN: 8415–00–SAM–3806—Maroon, Size of the U.S. Marine Corps Parris Island [FR Doc. 2014–23517 Filed 10–2–14; 8:45 am] Medium Recruiting Depot, as aggregated by the BILLING CODE 3510–60–P NSN: 8415–00–SAM–3807—Blue, Size Commanding General, U.S. Marine Corps

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Parris Island Recruiting Depot, Parris COMMITTEE FOR PURCHASE FROM Extinguisher Island, SC. PEOPLE WHO ARE BLIND OR NPA: Huntsville Rehabilitation Foundation, Huntsville, AL Work Lamp SEVERELY DISABLED Contracting Activity: Defense Logistics NSN: 6230–00–NIB–0060—Extendable, Procurement List; Deletions Agency Troop Support, Philadelphia, PA Torch Style, Rubber Grip, LED, Service Rechargeable AGENCY: Committee for Purchase From NSN: 6230–00–NIB–0061—Baton Style, People Who Are Blind or Severely Service Type/,Location: Catering Service, Rubber Grip, LED, Rechargeable Disabled. Military Entrance Processing Station, Leo O’Brien Federal Building, Suite 810, NSN: 6230–00–NIB–0062—Aluminum ACTION: Deletions from the Procurement Albany, NY Frame, Superbright, COB LED, List. NPA: Albany County Chapter, NYSARC, Inc., Rechargeable Slingerlands, NY NPA: Industries for the Blind, Inc., West SUMMARY: This action deletes a product Contracting Activity: Dept of the Army, Allis, WI and service from the Procurement List W6QM MICC Ctr-Ft Knox, Ft Knox, KY Contracting Activity: Defense Logistics previously furnished by nonprofit Agency Troop Support, Philadelphia, PA agencies employing persons who are Barry S. Lineback, Coverage: B-List for the Broad Government blind or have other severe disabilities. Director, Business Operations. Requirement as aggregated by the DATES: Effective Date: 11/3/2014. [FR Doc. 2014–23604 Filed 10–2–14; 8:45 am] Defense Logistics Agency Troop Support, BILLING CODE 6353–01–P ADDRESSES: Committee for Purchase Philadelphia, PA. From People Who Are Blind or Severely Services Disabled, 1401 S. Clark Street, Suite DEPARTMENT OF DEFENSE Service Type/,Locations: Custodial Service, 10800, Arlington, Virginia 22202–4149. Architect of the Capitol, Dirksen Senate FOR FURTHER INFORMATION CONTACT: Office of the Secretary Office Building, 1st and C Streets NE., Barry S. Lineback, Telephone: (703) Washington, DC 603–7740, Fax: (703) 603–0655, or email [Docket ID: DoD–2014–OS–0116] Hart Senate Office Building, 2nd and C [email protected]. Proposed Collection; Comment Streets NE., Washington, DC SUPPLEMENTARY INFORMATION: Request Russell Senate Office Building, 1st and Constitution Avenue NE., Washington, Deletions AGENCY: Defense Information Systems DC On 8/29/2014 (79 FR 51561), the Agency, DoD. NPA: Davis Memorial Goodwill Industries, Committee for Purchase From People ACTION: Notice. Washington, DC Who Are Blind or Severely Disabled Contracting Activity: Architect of the Capitol, published notice of proposed deletions SUMMARY: In compliance with the U.S. Capitol Building, Washington, DC from the Procurement List. Paperwork Reduction Act of 1995, the Service Type/,Location: Grounds After consideration of the relevant Defense Information Systems Agency Maintenance and Snow Removal matter presented, the Committee has announces a proposed public Service, US Army, US Army Research determined that the product and service information collection and seeks public Laboratory, 4402 Susquehanna Avenue, listed below are no longer suitable for comment on the provisions thereof. Aberdeen Proving Ground, MD procurement by the Federal Government Comments are invited on: (a) Whether NPA: Melwood Horticultural Training under 41 U.S.C. 8501–8506 and 41 CFR the proposed collection of information Center, Upper Marlboro, MD 51–2.4. is necessary for the proper performance Contracting Activity: Dept of the Army, of the functions of the agency, including W2SD ENDIST PHILADELPHIA, Regulatory Flexibility Act Certification whether the information shall have Philadelphia, PA I certify that the following action will practical utility; (b) the accuracy of the not have a significant impact on a agency’s estimate of the burden of the Deletion substantial number of small entities. proposed information collection; (c) The following service is proposed for The major factors considered for this ways to enhance the quality, utility, and deletion from the Procurement List: certification were: clarity of the information to be 1. The action will not result in collected; and (d) ways to minimize the Service additional reporting, recordkeeping or burden of the information collection on Service Type/Location: Janitorial/,Custodial other compliance requirements for small respondents, including through the use Service, Department of Agriculture, entities. of automated collection techniques or Kootenai National Forest, Libby Ranger 2. The action may result in other forms of information technology. Station, Libby, MT authorizing small entities to furnish the DATES: Consideration will be given to all NPA: Lincoln Training Center and product and service to the Government. comments received by December 2, Rehabilitation Workshop, South El 3. There are no known regulatory 2014. Monte, CA alternatives which would accomplish ADDRESSES: Contracting Activity: Department of the objectives of the Javits-Wagner- You may submit comments, Agriculture, Procurement Operations O’Day Act (41 U.S.C. 8501–8506) in identified by docket number and title, Division, Washington, DC connection with the product and service by any of the following methods: • Federal eRulemaking Portal: http:// deleted from the Procurement List. Barry S. Lineback, www.regulations.gov. Follow the Director, Business Operations. End of Certification instructions for submitting comments. • [FR Doc. 2014–23605 Filed 10–2–14; 8:45 am] Accordingly, the following product Mail: Federal Docket Management System Office, 4800 Mark Center Drive, BILLING CODE 6353–01–P and service are deleted from the Procurement List: East Tower, Suite 02G09, Alexandria, VA 22350–3100. Product Instructions: All submissions received NSN: 5340–00–410–2296—Cover, Fire must include the agency name, docket

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number and title for this Federal Needs and Uses: The information DEPARTMENT OF DEFENSE Register document. The general policy collection requirement is necessary to for comments and other submissions measure user satisfaction of the Defense Office of the Secretary from members of the public is to make Connect Online (DCO) collaboration these submissions available for public tool in accordance with the Quality [Transmittal Nos. 14–27] viewing on the Internet at http:// Assurance Surveillance Plan required www.regulations.gov as they are by contract HC1047–11–C–4013. 36(b)(1) Arms Sales Notification received without change, including any Affected Public: Individuals or personal identifiers or contact Households. AGENCY: Defense Security Cooperation information. Any associated form(s) for Annual Burden Hours: 300. Agency, Department of Defense. this collection may be located within Number of Respondents: 1200. ACTION: Notice. this same electronic docket and Responses per Respondent: 1. downloaded for review/testing. Follow Average Burden per Response: 15 the instructions at http:// SUMMARY: The Department of Defense is minutes. www.regulations.gov for submitting publishing the unclassified text of a comments. Please submit comments on Frequency: On occasion. section 36(b)(1) arms sales notification. any given form identified by docket Respondents are DoD contractors who This is published to fulfill the number, form number, and title. are registered users of DCO as part of requirements of section 155 of Public their official duties. The completed FOR FURTHER INFORMATION CONTACT: To Law 104–164 dated July 21, 1996. request more information on this web-based satisfaction survey responses FOR FURTHER INFORMATION CONTACT: Ms. proposed information collection or to are aggregated and reported to DISA as obtain a copy of the proposal and part of the Quality Assurance B. English, DSCA/DBO/CFM, (703) 601– associated collection instruments, Surveillance Plan. Additionally, users 3740. please write to the Office of Public who voluntarily provide their contact The following is a copy of a letter to Affairs, Defense Information Systems information receive a follow-up call the Speaker of the House of Agency, 6910 Cooper Rd, Ft. Meade from the DCO service provider to Representatives, Transmittals 14–27 Maryland 20755. Contact 301–225–8100 discuss any concerns or issues they with attached transmittal and policy have with DCO performance. or disa.meade.spi.mbx.disa-pao@ justification. mail.mil. Dated: September 30, 2014. Dated: September 30, 2014. Aaron Siegel, SUPPLEMENTARY INFORMATION: Aaron Siegel, Title; Associated Form; and OMB Alternate OSD Federal Register Liaison Number: Defense Connect Online Officer, Department of Defense. Alternate OSD Federal Register Liaison Officer, Department of Defense. Satisfaction Survey; OMB Control [FR Doc. 2014–23609 Filed 10–2–14; 8:45 am] Number 0704–TBD. BILLING CODE 5001–06–P BILLING CODE 5001–06–P

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BILLING CODE 5001–06–C (iii) Description and Quantity or (iv) Military Department: Army Transmittal No. 14–27 Quantities of Articles or Services under (UAM) Consideration for Purchase: 9 UH–72A Notice of Proposed Issuance of Letter of (v) Prior Related Cases, if any: FMS Lakota Helicopters, warranty, spare and Offer Pursuant to Section 36(b)(1) of the case UAK–$54M–8Jan14 repair parts, support equipment, Arms Export Control Act, as amended (vi) Sales Commission, Fee, etc., Paid, communication equipment, Offered, or Agreed to be Paid: None (i) Prospective Purchaser: Thailand publications and technical (ii) Total Estimated Value: documentation, Aviation Mission (vii) Sensitivity of Technology Major Defense Equipment * .. $55 million Planning Station, personnel training and Contained in the Defense Article or Other ...... $34 million training equipment, U.S. Government Defense Services Proposed to be Sold: None TOTAL ...... $89 million and contractor technical and logistics * as defined in Section 47(6) of the Arms support services, and other related (viii) Date Report Delivered to Export Control Act elements of logistics support. Congress: 26 Sep 14

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POLICY JUSTIFICATION The proposed sale of this equipment ACTION: Notice. Thailand—UH–72A Lakota Helicopters and support will not alter the basic military balance in the region. SUMMARY: The Department of Defense is The Government of Thailand has The principal contractor will be EADS publishing the unclassified text of a requested a possible sale of 9 UH–72A North America in Herndon, Virginia. section 36(b)(1) arms sales notification. Lakota Helicopters, warranty, spare and There are no known offset agreements This is published to fulfill the repair parts, support equipment, proposed in connection with this communication equipment, requirements of section 155 of Public potential sale. Law 104–164 dated July 21, 1996. publications and technical Implementation of this proposed sale documentation, Aviation Mission will require ten contractor FOR FURTHER INFORMATION CONTACT: Ms. Planning Station, personnel training and representatives to travel to Thailand for B. English, DSCA/DBO/CFM, (703) 601– training equipment, U.S. Government a period of five weeks for equipment 3740. and contractor technical and logistics deprocessing/fielding and system The following is a copy of a letter to support services, and other related checkout. elements of logistics support. The the Speaker of the House of There will be no adverse impact on Representatives, Transmittals 14–49 estimated cost is $89 million. U.S. defense readiness as a result of this This proposed sale will contribute to with attached transmittal and policy proposed sale. the foreign policy and national security justification. [FR Doc. 2014–23600 Filed 10–2–14; 8:45 am] of the United States, by helping to Dated: September 29, 2014. improve the security of a major non- BILLING CODE 5001–06–P Aaron Siegel, NATO ally. This proposed sale will contribute to Alternate OSD Federal Register Liaison Thailand’s goal of upgrading and DEPARTMENT OF DEFENSE Officer, Department of Defense. modernizing its military forces with a BILLING CODE 5001–06–P Office of the Secretary new light utility helicopter capable of meeting requirements for rotary-wing transportation, while further enhancing [Transmittal Nos. 14–49] interoperability between Thailand the 36(b)(1) Arms Sales Notification U.S., and among other allies. Thailand will have no difficulty absorbing these AGENCY: Defense Security Cooperation helicopters into its armed forces. Agency, Department of Defense.

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BILLING CODE 5001–06–C (iii) Description and Quantity or (iv) Military Department: Navy (APE, Transmittal No. 14–49 Quantities of Articles or Services under Amd #3) Consideration for Purchase: 12 MK–48 Notice of Proposed Issuance of letter of (v) Prior Related Cases, if any: Mod 7 Advanced Technology Torpedo Offer Pursuant to Section 36(b)(1) Of the FMS case AKR–$31M–09Sep87 Arms Export Control Act, as amended Conversion Kits with containers, spare and repair parts, weapon system FMS case APE–$118M–31Jan12 (i) Prospective Purchaser: Canada support and integration, publications (vi) Sales Commissions, Fee etc., Paid, (ii) Total Estimated Value: and technical documentation, personnel Offered, or Agreed to be Paid: None Major Defense Equipment * .. $25 million training and training equipment, U.S. (vii) Sensitivity of Technology Other ...... $16 million Government and contractor engineering Contained in the Defense Article TOTAL ...... $41 million and technical, and logistics support Proposed to be Sold: None. * as defined in Section 47(6) of the Arms services, and other related elements of (viii) Date Report Delivered to Export Control Act logistics support. Congress: 24 Sep 14

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POLICY JUSTIFICATION Navy’s Victoria (formerly Upholder) DEPARTMENT OF DEFENSE Canada—MK–48 Mod 7 Advanced Class submarines. Canada has Office of the Secretary Technology (AT) Torpedo Kits significant relevant infrastructure and experience with modern torpedoes, [Transmittal Nos. 14–26] The Government of Canada has including MK–48 Mod 4/4M and MK– requested a possible sale of 12 MK–48 46 Mod 5A (SW) torpedoes. Canada will 36(b)(1) Arms Sales Notification Mod 7 Advanced Technology Torpedo have no difficulty absorbing these Conversion Kits with containers, spare additional conversion kits. AGENCY: Defense Security Cooperation and repair parts, weapon system Agency, Department of Defense. The principal contractor will be support and integration, publications ACTION: Notice. and technical documentation, personnel Lockheed Martin Sippican, Inc. in training and training equipment, U.S. Marion, Massachusetts. There are no SUMMARY: The Department of Defense is Government and contractor engineering known offset agreements proposed in publishing the unclassified text of a and technical, and logistics support connection with this potential sale. section 36(b)(1) arms sales notification. services, and other related elements of Implementation of this proposed sale This is published to fulfill the logistics support. These kits will will not require the assignment of any requirements of section 155 of Public upgrade 12 of Canada’s existing additional U.S. Government or Law 104–164 dated July 21, 1996. inventory of MK–48 torpedoes from contractor representatives to Canada. FOR FURTHER INFORMATION CONTACT: Ms. Mod 4 to Mod 7. The estimated cost is B. English, DSCA/DBO/CFM, (703) 601– There will be no adverse impact on $41 million. 3740. U.S. defense readiness as a result of this This proposed sale will contribute to The following is a copy of a letter to the foreign policy and national security proposed sale. the Speaker of the House of of the United States by helping to [FR Doc. 2014–23532 Filed 10–2–14; 8:45 am] Representatives, Transmittals 14–26 improve the security of a NATO ally BILLING CODE 5001–06–P with attached transmittal, policy that has been, and continues to be, a key justification, and Sensitivity of democratic partner of the United States Technology. in ensuring peace and stability. The sale of this equipment and Dated: September 30, 2014. support will not alter the basic military Aaron Siegel, balance in the region. Alternate OSD Federal Register Liaison Canada intends to use the MK 48 Mod Officer, Department of Defense. 7AT Torpedoes on its Royal Canadian BILLING CODE 5001–06–P

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BILLING CODE 5001–06–C TOTAL ...... $2.5 billion Base/MRAP Expedient Armor Program Transmittal No. 14–26 * As defined in Section 47(6) of the Arms (MEAP) capsules without armor, 729 Export Control Act. MaxxPro Bases, 283 MaxxPro MEAP Notice of Proposed Issuance of Letter of without armor, 970 MaxxPro Plus, 15 Offer Pursuant to Section 36(b)(1) of the (iii) Description and Quantity or MRAP Recovery Vehicles, 1,150 Caiman Arms Export Control Act, as amended Quantities of Articles or Services under Multi-Terrain Vehicles without armor, Consideration for Purchase: the (i) Prospective Purchaser: United Arab and 44 MRAP All-Terrain Vehicles) refurbishment and modification of 4,569 Emirates (UAE) being sold separately from U.S. Army Mine Resistant Ambush Protected (ii) Total Estimated Value: stock pursuant to section 21 of the Arms (MRAP) Vehicles (that include 29 Major Defense Equipment* .. $ 0 billion Export Control Act, as amended, as MaxxPro Long Wheel Base (LWB), 1,085 Other ...... $2.5 billion Excess Defense Articles (EDA). Also MaxxPro LWB chassis, 264 MaxxPro

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included are Underbody Improvement This proposed sale will contribute to countermeasures which might reduce Kits, spare and repair parts, support the foreign policy and national security weapon system effectiveness or be used equipment, personnel training and of the U.S. by helping to improve the in the development of a system with training equipment, publications and security of a friendly country that has similar or advanced capabilities. technical documentation, Field Service been and continues to be an important 4. A determination has been made Representatives’ support, U.S. force for political stability and economic that the recipient country can provide Government and contractor logistics and progress in the Middle East. the same degree of protection for the technical support services, and other The UAE intends to utilize the EDA sensitive technology being released as related elements of logistics and MRAP vehicles to increase force the U.S. Government. This sale is program support. Notification for the protection, to conduct humanitarian necessary in furtherance of the U.S. sale from stock of the MRAP vehicles assistance operations, and to protect foreign policy and national security referenced above has been provided vital international commercial trade objectives outlined in the Policy separately, pursuant to the requirements routes and critical infrastructure. Justification. of section 7016 of the Consolidated Additionally, these MRAPs will 5. All defense articles and services Appropriations Act, 2014 and section enhance UAE’s burden sharing capacity listed in this transmittal have been 516 of the Foreign Assistance Act of and defensive capabilities. authorized for release and export to the 1961, as amended. The proposed sale of this equipment Government of the United Arab (iv) Military Department: Army (IEA) and support will not alter the basic Emirates. (v) Prior Related Cases, if any: None military balance in the region. [FR Doc. 2014–23599 Filed 10–2–14; 8:45 am] The principal contractors will be (vi) Sales Commission Fee, etc., paid, BILLING CODE 5001–06–P offered, or agreed to be paid: None Navistar Defense in Lisle, Illinois; BAE (vii) Sensitivity of Technology Systems in Sealy, Texas; and Oshkosh Contained in the Defense Article or Defense in Oshkosh, Wisconsin. There DEPARTMENT OF DEFENSE Defense Services proposed to be sold: are no known offset agreements See attached annex. proposed in connection with this Office of the Secretary (viii) Date Report Delivered to potential sale. Defense Business Board; Notice of Congress: 26 Sep 14 Implementation of this proposed sale will require multiple trips to the UAE Federal Advisory Committee Meeting POLICY JUSTIFICATION involving many U.S. Government and AGENCY: DoD. contractor representatives for UAE—Mine Resistant Ambush ACTION: Meeting notice. Protected (MRAP) Vehicles approximately three or more years to provide program support and training. SUMMARY: The Department of Defense is The Government of the United Arab There will be no adverse impact on publishing this notice to announce the Emirates (UAE) has requested a possible the U.S. defense readiness as a result of following Federal Advisory Committee sale for the refurbishment and this proposed sale. meeting of the Defense Business Board. modification of 4,569 Mine Resistant This meeting is open to the public. Ambush Protected (MRAP) Vehicles Transmittal No. 14–26 DATES: The public meeting of the (that include 29 MaxxPro Long Wheel Notice of Proposed Issuance of Letter of Defense Business Board (hereafter Base (LWB), 1,085 MaxxPro LWB Offer Pursuant to Section 36(b)(1) of the referred to as ‘‘the Board’’) will be held chassis, 264 MaxxPro Base/MRAP Arms Export Control Act, as amended Expedient Armor Program (MEAP) on Thursday, October 23, 2014. The Annex capsules without armor, 729 MaxxPro meeting will begin at 9:30 a.m. and end Bases, 283 MaxxPro MEAP without Item No. vii at 10:30 a.m. (Escort required; see guidance in the SUPPLEMENTARY armor, 970 MaxxPro Plus, 15 MRAP (vii) Sensitivity of Technology: INFORMATION section, ‘‘Public’s Recovery Vehicles, 1,150 Caiman Multi- 1. The Mine Resistant Ambush Accessibility to the Meeting.’’) Terrain Vehicles without armor, and 44 Protected (MRAP) vehicle is an MRAP All-Terrain Vehicles) being sold armored, multi-purpose combat vehicle ADDRESSES: Room 3D557 in the separately from U.S. Army stock intended to support mounted urban Pentagon, Washington, DC (Escort pursuant to section 21 of the Arms operations to include convoy security required; see guidance in the Export Control Act, as amended, as support and dismounted patrols. It is SUPPLEMENTARY INFORMATION section, Excess Defense Articles (EDA). Also designed to increase crew survivability. ‘‘Public’s Accessibility to the Meeting.’’) included are Underbody Improvement The vehicle has a blast-resistant FOR FURTHER INFORMATION CONTACT: Kits, spare and repair parts, support underbody designed to protect the crew Committee’s Designated Federal Officer: equipment, personnel training and from mine blasts, fragmentation, and The Board’s Designated Federal Officer training equipment, publications and direct fire weapons. is Phyllis Ferguson, Defense Business technical documentation, Field Service 2. All MRAP vehicle information Board, 1155 Defense Pentagon, Room Representatives’ support, U.S. needed to operate, train, and maintain 5B1088A, Washington, DC 20301–1155, Government and contractor logistics and the vehicles are Unclassified; some [email protected], 703– technical support services, and other design and test data, design 695–7563. For meeting information related elements of logistics and performance parameters, armoring please contact Ms. Debora Duffy, program support. Notification for the methodology, vulnerabilities, armor Defense Business Board, 1155 Defense sale from stock of the MRAP vehicles types and configuration can be Pentagon, Room 5B1088A, Washington, referenced above has been provided classified up to Secret. DC 20301–1155, debora.k.duffy.civ@ separately, pursuant to the requirements 3. If a technologically advanced mail.mil, 703–697–2168. of section 7016 of the Consolidated adversary were to obtain knowledge of SUPPLEMENTARY INFORMATION: This Appropriations Act, 2014 and section the design performance and functional meeting is being held under the 516 of the Foreign Assistance Act of characteristics of specific hardware and provisions of the Federal Advisory 1961, as amended. The estimated cost is software elements, the information Committee Act of 1972 (5 U.S.C., $2.5 billion could be used to develop Appendix, as amended), the

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Government in the Sunshine Act of Federal Advisory Committee Act of DATES: Written comments on the Draft 1976 (5 U.S.C. 552b, as amended), and 1972, the public or interested SEIS will be received until the close of 41 CFR 102–3.150. organizations may submit written the 45-day public review on November Purpose of the Meeting: At this comments to the Board about its 17, 2014, and can be sent to USACE meeting, the Board will receive updates mission and topics pertaining to this and/or FHWA (see ADDRESSES). from the ‘‘Guiding Principles to public meeting. ADDRESSES: William T. Walker, Chief Optimize DoD’s Research and Written comments pertaining to this Regulatory Branch, Corps of Engineers, Development Investments’’ Task Group meeting should be received by the DFO 803 Front Street, Norfolk, VA 23510; Ed Study and the ‘‘Transformational at least five (5) business days prior to Sundra, Director of Program Change for the Department of Defense the meeting date so that the comments Development, Federal Highway Business Systems’’ Task Group Study. may be made available to the Board for Administration, 400 North 8th St., Suite The mission of the Board is to examine their consideration prior to the meeting. 750, Richmond, VA 23219. and advise the Secretary of Defense on Written comments should be submitted FOR FURTHER INFORMATION CONTACT: overall DoD management and via email to the address for the DFO Questions about the SEIS can be governance. The Board provides given in the FOR FURTHER INFORMATION directed to Alice Allen-Grimes, U.S. independent advice which reflects an CONTACT section in either Adobe Army Corps of Engineers, Regulatory outside private sector perspective on Acrobat or Microsoft Word format. Branch, 803 Front Street, Norfolk, VA proven and effective best business The public will be offered an 23510; email: Alice.W.Allen- practices that can be applied to DoD. opportunity for oral comments during [email protected]; (757) 201–7219 Availability of Materials for the the public session as time permits. Meeting: A copy of the agenda and the and/or Ed Sundra, Federal Highway Please note that since the Board Administration, 400 North 8th Street, terms of reference for the Task Group operates under the provisions of the studies may be obtained from the Suite 750, Richmond, VA 23219; email: Federal Advisory Committee Act, as [email protected]; (804) 775–3357. Board’s Web site at http:// amended, all submitted comments and SUPPLEMENTARY INFORMATION: This SEIS dbb.defense.gov/meetings. Copies will public presentations will be treated as has been prepared pursuant to 23 CFR also be available at the meeting. public documents and will be made 771.130 and 40 CFR 1502.9(c), because Meeting Agenda: available for public inspection, of new information and circumstances 9:30 a.m.–10:30 a.m. Task Group including, but not limited to, being relevant to environmental concerns of Updates on: posted on the Board’s Web site. • ‘‘Guiding Principles to Optimize the federal action that may result in DoD’s Research and Development Dated: September 30, 2014. significant environmental impacts not Investments’’ Aaron Siegel, evaluated in the FHWA approved Final • ‘‘Transformational Change for the Alternate OSD Federal Register Liaison Environmental Impact Statement (FEIS). Department of Defense Business Officer, Department of Defense. 1. Project Description and Systems’’ [FR Doc. 2014–23618 Filed 10–2–14; 8:45 am] Background: An FEIS for the Route 460 Location Study was approved by FHWA Public’s Accessibility to the Meeting: BILLING CODE 5001–06–P in June 2008 and a ROD was issued in Pursuant to 5 U.S.C. 552b and 41 CFR September 2008. In November 2012, 102–3.140 through 102–3.165, and the DEPARTMENT OF DEFENSE based upon the information before them availability of space, this meeting is open to the public. Seating is limited at the time, FHWA completed a Department of the Army; Corps of National Environmental Policy Act and is on a first-come basis. All Engineers members of the public who wish to (NEPA) Re-evaluation of the FEIS, concluding that an SEIS was not attend the public meeting must contact Draft Supplemental Environmental needed. Based on new information Ms. Debora Duffy at the number listed Impact Statement, US Route 460, bearing on the environmental impacts, in the FOR FURTHER INFORMATION Prince George County to City of including the aquatic impacts, it was CONTACT section no later than 12:00 p.m. Suffolk, VA on Wednesday, October 15 to register later decided that an SEIS is required. and make arrangements for a Pentagon AGENCY: Department of the Army, U.S. The Notice of Intent to Prepare this escort, if necessary. Public attendees Army Corps of Engineers, DoD. SEIS, published in December 2013, requiring escort should arrive at the ACTION: Notice of availability. indicated that USACE had received an Pentagon Metro Entrance with sufficient application for the construction of a time to complete security screening no SUMMARY: The United States Department Route 460 project; that application was later than 9:00 a.m. on October 23, 2014. of the Army Corps of Engineers withdrawn in March 2014. To complete security screening, please (USACE) is issuing this notice to advise US Route 460 (Route 460) is a primary come prepared to present two forms of the public that a Draft Supplemental east-west arterial highway that traverses identification and one must be a Environmental Impact Statement (SEIS) the Commonwealth of Virginia. From pictured identification card. has been prepared jointly with the Interstate 295 (I–295) in Prince George Special Accommodations: Individuals Federal Highway Administration County to US Route 58 (Route 58) in the requiring special accommodations to (FHWA) and in cooperation with the City of Suffolk, Route 460 is a four lane, access the public meeting should Virginia Department of Transportation undivided arterial roadway with posted contact Ms. Duffy at least five (5) (VDOT) for the Route 460 Location speeds of 35 to 55 miles per hour (mph). business days prior to the meeting so Study. The study area extends from I– This eastern segment of the road was that appropriate arrangements can be 295 in Prince George County on the built in the mid-1930s as a two-lane made. western end to Route 58 in the City of roadway. In the mid-1950s, two lanes Suffolk on the eastern end. (USACE were added, widening Route 460 to four Procedures for Providing Public Project Number NAO–2008–03470; undivided travel lanes. In the study area Comments FHWA Project Number STP–0005(276); Route 460 is approximately 55 miles in Pursuant to 41 CFR 102–3.105(j) and VDOT Project Number 0460–969– length and passes through portions of 102–3.140, and section 10(a)(3) of the 101,P101; UPC 100432). the Counties of Prince George, Surry,

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Sussex, Southampton and Isle of Wight; depending on the Build Alternative found in area libraries and other public the City of Suffolk; the incorporated considered include: facilities, the locations of which can be towns of Waverly, Wakefield, Ivor, and a. Potential impacts to wetlands found on the VDOT project Web site Windsor; and the unincorporated ranging from 90 to 613 acres. (address above). communities of Disputanta and Zuni. b. Potential impacts to streams 2. Alternatives: The purpose of the ranging from 4 to 13 linear miles. William T. Walker, improvements to the Route 460 corridor c. Potential displacements to Chief, Regulatory Branch U.S. Army Corps is to construct a facility that is residences of 78 to 167. of Engineers, Norfolk District. consistent with the functional d. Potential displacements to [FR Doc. 2014–23356 Filed 10–2–14; 8:45 am] classification of the corridor, businesses of 12 to 54. BILLING CODE 3720–58–P sufficiently addresses safety, mobility e. Potential impacts to historic and evacuation needs, and sufficiently architectural resources. accommodates freight traffic along the f. Potential impacts to wildlife habitat, Route 460 corridor between Petersburg including riparian corridors. DEPARTMENT OF EDUCATION and Suffolk, Virginia. The SEIS provides g. Disruption of communities. detailed analysis of five alternatives h. Potential impacts to designated Early Childhood Longitudinal Study (Alternatives 1–5) that meet the Purpose conservation areas. Kindergarten Class of 2010–11 (ECLS– and Need for the project as well as i. Cost and tolling. K:2011) Spring Third-Grade National applicable design standards, plus the No 4. Scoping and Public Review Process: Collection, Fourth-Grade Recruitment, Build Alternative. The Build Throughout the development of the and Fifth-Grade Tracking; Title; Alternatives have been developed using project, a variety of scoping and public Correction varying typical sections based on design involvement opportunities were standards and site specific conditions to provided to alert the public about the AGENCY: Department of Education. determine the design corridor width project, provide information and that will likely be needed to ACTION: Correction Notice. updates, and solicit feedback. These accommodate construction and estimate opportunities included but were not the extent of impacts associated with SUMMARY: On September 10, 2014 the limited to a series of public hearings in each alternative. the corridor when the DEIS was issued U.S. Department of Education published Some of the Alternatives considered a 30-day comment period notice in the in the SEIS are different than the in 2005 and a series of public meetings in 2007 to evaluate conceptual Federal Register Pages 53698, Column alternatives in the original EIS. 3; Page 53699, Column 1 and 2 seeking Transportation Systems Management proposals received from the private sector in response to the solicitation of public comment for an information and Improvements to the Existing collection entitled, ‘‘Early Childhood Alignment with a two-way left turn lane private-public proposals. Most recently, Longitudinal Study Kindergarten Class were evaluated in the EIS, but were VDOT hosted public meetings in 2012 of 2010–11 (ECLS–K:2011) Spring eliminated in the SEIS, along with Mass and 2014 to update the public on the Transit, which was considered for both project. Public meetings will be Third-Grade National Collection, the EIS and the SEIS but not retained in conducted on October 27, 29 and 30 by Fourth-Grade Recruitment, and Fifth- either. Alternatives retained from the VDOT, with FHWA and USACE in Grade Tracking’’. ED is requesting a EIS include the No Build; Alternative 1 attendance. VDOT has provided correction to the title. Title should read (a limited-access tolled facility on new information for the public meetings, as Early Childhood Longitudinal Study location south of the existing Route 460; including time and location, through a Kindergarten Class of 2010–11 (ECLS– the Preferred Alternative in the 2008 variety of means, including their Web K:2011) Spring Fourth-Grade Data FEIS); Alternative 2 (improvements to site (http://www.route460project.org/) Collection & Recruitment for Fifth- the existing Route 460 with six limited and by newspaper advertisement. Grade. 5. Additional Review and access bypasses around the built-up The Acting Director, Information areas; the four lane typical section Consultation: The SEIS complies with other Federal and State requirements Collection Clearance Division, Privacy, between the towns is not the same as in Information and Records Management the original EIS); and Alternative 3 (a including, but not limited to, the State Services, Office of Management, hereby limited-access tolled facility on new water quality certification under Section issues a correction notice as required by location north of the existing Route 401 of the CWA; protection of water 460). In addition, two alternatives not quality under the Virginia/National the Paperwork Reduction Act of 1995. previously evaluated were developed as Pollutant Discharge Elimination System; Dated: September 30, 2014. part of the SEIS and carried forward: consideration of minority and low Kate Mullan, income populations under Executive Alternative 4 (improvements of existing Acting Director, Information Collection Route 460 to meet current design Order 12898; protection of endangered Clearance Division, Privacy, Information and standards, through the towns with no and threatened species under Section 7 Records Management Services, Office of bypasses); and Alternative 5 (8-lanes— of the Endangered Species Act; and Management. 4 limited-access tolled lanes with 2 bi- protection of cultural resources under [FR Doc. 2014–23578 Filed 10–2–14; 8:45 am] directional service lanes on each side Section 106 of the National Historic BILLING CODE 4000–01–P between the towns—on the same Preservation Act. general location as Alternative 2 along 6. Availability of the Draft SEIS: This the existing roadway with bypasses). Draft SEIS has been filed with the 3. Issues: There are several potential Environmental Protection Agency, environmental and social issues that are published and circulated. A copy of the addressed in the SEIS. Additional issues full document including all Technical may be identified as part of the public Reports can be found at http:// comment process. Issues identified as www.route460project.org/SEIS. In potentially significant and varying addition, hard copies of the SEIS can be

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DEPARTMENT OF EDUCATION requirements and provide the requested DEPARTMENT OF EDUCATION data in the desired format. ED is [Docket No.: ED–2014–ICCD–0112] [Docket No.: ED–2014–ICCD–0101] soliciting comments on the proposed Agency Information Collection information collection request (ICR) that Agency Information Collection Activities; Submission to the Office of is described below. The Department of Activities; Submission to the Office of Management and Budget for Review Education is especially interested in Management and Budget for Review and Approval; Comment Request; public comment addressing the and approval; Comment Request; Health Education Assistance Loan following issues: (1) Is this collection Progress in International Reading (HEAL) Program: Lender’s Application necessary to the proper functions of the Literacy Study (PIRLS 2016) and for Insurance Claim Form and Request Department; (2) will this information be ePIRLS Online Reading 2016 for Collection Assistance Form processed and used in a timely manner; Assessment Field Test and (3) is the estimate of burden accurate; Recruitment for Main Study AGENCY: Department of Education (ED), (4) how might the Department enhance Federal Student Aid (FSA). the quality, utility, and clarity of the AGENCY: Institute of Education Sciences, ACTION: Notice. information to be collected; and (5) how National Center for Education Statistics might the Department minimize the (IES–NCES), Department of Education SUMMARY: In accordance with the burden of this collection on the (ED). Paperwork Reduction Act of 1995 (44 respondents, including through the use ACTION: Notice. U.S.C. chapter 3501 et seq.), ED is of information technology. Please note proposing; an extension of an existing SUMMARY: In accordance with the that written comments received in information collection. Paperwork Reduction Act of 1995 (44 response to this notice will be U.S.C. chapter 3501 et seq.), ED is DATES: Interested persons are invited to considered public records. submit comments on or before Title of Collection: Health Education proposing a reinstatement of a November 3, 2014. Assistance Loan (HEAL) Program: previously approved information ADDRESSES: Comments submitted in Lender’s Application for Insurance collection. response to this notice should be Claim Form and Request for Collection DATES: Interested persons are invited to submitted electronically through the Assistance Form. submit comments on or before Federal eRulemaking Portal at http:// OMB Control Number: 1845–0127. November 3, 2014. www.regulations.gov by selecting Type of Review: An extension of an ADDRESSES: Comments submitted in Docket ID number ED–2014–ICCD–0112 existing information collection. response to this notice should be or via postal mail, commercial delivery, Respondents /Affected Public: Private submitted electronically through the or hand delivery. If the regulations.gov sector. Federal eRulemaking Portal at http:// site is not available to the public for any Total Estimated Number of Annual www.regulations.gov by selecting reason, ED will temporarily accept Responses: 6,149. Docket ID number ED–2014–ICCD–0101 comments at [email protected]. Total Estimated Number of Annual or via postal mail, commercial delivery, Please note that comments submitted by Burden Hours: 1,165. or hand delivery. If the regulations.gov fax or email and those submitted after Abstract: The HEAL Lender’s site is not available to the public for any the comment period will not be application for Insurance Claim and the reason, ED will temporarily accept accepted; ED will only accept comments request for Collection Assistance forms comments at [email protected]. during the comment period in this are used in the administration of the Please note that comments submitted by mailbox when the regulations.gov site is Health Education Assistant Loan fax or email and those submitted after not available. Written requests for (HEAL) program. The HEAL program the comment period will not be information or comments submitted by provided federally insured loans to accepted; ED will ONLY accept postal mail or delivery should be students in certain health professions comments during the comment period addressed to the Director of the disciplines, and these forms are used in in this mailbox when the regulations.gov Information Collection Clearance the administration of the HEAL site is not available. Written requests for Division, U.S. Department of Education, program. The Lender’s Application for information or comments submitted by 400 Maryland Avenue SW., LBJ, Insurance Claim is used by the lending postal mail or delivery should be Mailstop L–OM–2–2E319, Room 2E103, institution to request payment of a claim addressed to the Director of the Washington, DC 20202. by the Federal Government. The Information Collection Clearance FOR FURTHER INFORMATION CONTACT: For Request for Collection Assistance form Division, U.S. Department of Education, specific questions related to collection is used by the lender to request 400 Maryland Avenue SW., LBJ, activities, please contact Beth proclaims assistance from the Mailstop L–OM–2–2E319, Room 2E105, Grebeldinger. Department. Section 525 of the Washington, DC 20202. SUPPLEMENTARY INFORMATION: The Consolidated Appropriations Act, 2014, FOR FURTHER INFORMATION CONTACT: For Department of Education (ED), in transferred the collection of the Health specific questions related to collection accordance with the Paperwork Education Assistance Loan (HEAL) activities, please contact Kashka Reduction Act of 1995 (PRA) (44 U.S.C. program loans from the U.S. Department Kubdzela, 202–502–7411. 3506(c)(2)(A)), provides the general of Health and Human Services (HHS) to SUPPLEMENTARY INFORMATION: The public and Federal agencies with an the U.S. Department of Education (ED). Department of Education (ED), in opportunity to comment on proposed, Dated: September 30, 2014. accordance with the Paperwork revised, and continuing collections of Kate Mullan, Reduction Act of 1995 (PRA) (44 U.S.C. information. This helps the Department Acting Director, Information Collection 3506(c)(2)(A)), provides the general assess the impact of its information Clearance Division, Privacy, Information and public and Federal agencies with an collection requirements and minimize Records Management Services, Office of opportunity to comment on proposed, the public’s reporting burden. It also Management. revised, and continuing collections of helps the public understand the [FR Doc. 2014–23611 Filed 10–2–14; 8:45 am] information. This helps the Department Department’s information collection BILLING CODE 4000–01–P assess the impact of its information

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collection requirements and minimize internationally benchmarking U.S. DATES: The NACIE public hearings will the public’s reporting burden. It also performance in fourth-grade reading. be held on: helps the public understand the PIRLS also collects background October 15, 2014–9:30 a.m. to 11:30 a.m. Department’s information collection information on students, parents, Alaska Time Zone (AKDT) requirements and provide the requested teachers, schools, curricula, and official October 15, 2014–1:30 p.m. to 3:30 p.m. data in the desired format. ED is education policies. Each successive Alaska Time Zone (AKDT) soliciting comments on the proposed round of participation in PIRLS October 16, 2014–9:00 a.m. to 11:00 a.m. information collection request (ICR) that provides trend information about U.S. Alaska Time Zone (AKDT) is described below. The Department of 4th-grade students’ knowledge and October 16, 2014–1:30 p.m. to 3:30 p.m. Education is especially interested in abilities in reading relative to other Alaska Time Zone (AKDT) public comment addressing the countries, and about the cultural The public hearing meeting location following issues: (1) Is this collection environments, teaching practices, in Anchorage, Alaska is: Hotel Captain necessary to the proper functions of the curriculum goals, and institutional Cook, Voyager Room, 939 W 5th Ave, Department; (2) will this information be arrangements that are associated with Anchorage, AK 99501, Phone: (907) processed and used in a timely manner; student achievement, and how these 276–6000 or (800)-843–1950, Fax: (907) (3) is the estimate of burden accurate; change over time in different countries. 343–2298. (4) how might the Department enhance This submission describes the ADDRESSES: U.S. Department of the quality, utility, and clarity of the overarching plan for all phases of the Education, Office of Elementary and information to be collected; and (5) how data collection, including the field test Secondary Education, 400 Maryland might the Department minimize the and the main study. The field test will Ave. SW., Room 3E205, Washington, DC burden of this collection on the take place in March–April, 2015, and 20202. respondents, including through the use the main study in the spring of 2016. FOR FURTHER INFORMATION CONTACT: of information technology. Please note The purpose of the PIRLS field test is to Jenelle Leonard, Designated Federal that written comments received in evaluate new assessment items and Official, Office of Elementary and response to this notice will be background questions to ensure that Secondary Education, U.S. Department considered public records. classroom and student sampling of Education, 400 Maryland Avenue Title of Collection: Progress in procedures proposed for the main study SW., Washington, DC 20202. Telephone: International Reading Literacy Study are successful. This submission requests 202–205–2161. Fax: 202–205–5870. (PIRLS 2016) and ePIRLS Online approval for recruiting for the 2015 field SUPPLEMENTARY INFORMATION: NACIE’s Reading 2016 Assessment Field Test test and 2016 main study; conducting Statutory Authority and Function: The and Recruitment for Main Study. the 2015 field test data collection; and National Advisory Council on Indian OMB Control Number: 1850–0645. a description of the overarching plan for Type of Review: A reinstatement of a Education is authorized by § 7141 of the all of the phases of the data collection, Elementary and Secondary Education previously approved information including the 2016 main study. collection. Act. The Council is established within Respondents/Affected Public: Dated: September 30, 2014. the Department of Education to advise Individuals or households. Stephanie Valentine, the Secretary of Education on the Total Estimated Number of Annual Acting Director, Information Collection funding and administration (including Responses: 3,745. Clearance Division, Privacy, Information and the development of regulations, and Total Estimated Number of Annual Records Management Services, Office of administrative policies and practices) of Burden Hours: 5,772. Management. any program over which the Secretary Abstract: We are announcing a second [FR Doc. 2014–23641 Filed 10–2–14; 8:45 am] has jurisdiction and includes Indian 30-day comment period for the Progress BILLING CODE 4000–01–P children or adults as participants or in International Reading Literacy Study programs that may benefit Indian (PIRLS) 2016 Field Test to include children or adults, including any ePIRLS as a new extension to PIRLS in DEPARTMENT OF EDUCATION program established under Title VII, 2016. The additional ePIRLS assessment Part A of the Elementary and Secondary makes it possible for countries to Announcement of an Open Public Education Act. The Council submits to understand how successful they are in Hearing the Congress, not later than June 30 of preparing fourth grade students to read, AGENCY: National Advisory Council on each year, a report on the activities of comprehend, and interpret online Indian Education (NACIE or Council), the Council that includes information as compared to students in Department of Education. recommendations the Council considers other participating countries. We ACTION: Announcement of an Open appropriate for the improvement of propose to utilize the 2015 field test to Public Hearing. Federal education programs that include determine feasibility of including Indian children or adults as participants ePIRLS during the PIRLS 2016 main SUMMARY: This notice sets forth the or that may benefit Indian children or study. schedule of an upcoming public hearing adults, and recommendations The Progress in International Reading conducted by a subcommittee concerning the funding of any such Literacy Study (PIRLS) 2016 is comprised of NACIE members. The program. coordinated by the International purpose of this public hearing is to One of the Council’s responsibilities Association for the Evaluation of receive public comments and/or is to develop and provide Educational Achievement (IEA) and in recommendations and/or suggestions to recommendations to the Secretary of the U.S. administered by the National the Council on the improvement of Education on the funding and Center for Education Statistics (NCES). Federal education programs that include administration (including the Since its inception in 2001, PIRLS has Indian children or adults as participants development of regulations, and continued to assess students every five or that may benefit Indian children or administrative policies and practices) of years (2001, 2006, 2011, 2016). It is adults, and recommendations any program over which the Secretary typically administered in more than 40 concerning the funding of any such has jurisdiction that can benefit Indian countries and provides data for program. children or adults participating in any

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program which could benefit Indian assistive listening device, or materials in (DOE) announces availability of a draft children. The purpose of the scheduled an alternate format), notify the contact of a potential future solicitation for listening sessions is for the designated person listed in this notice by or no later Federal Loan Guarantees for Advanced NACIE Subcommittee members to than October 8, 2014. Although we will Nuclear Energy Projects. LPO invites conduct a series of listening sessions in attempt to meet a request received after comments regarding the draft of the conjunction with the National Indian that date, we may not be able to make potential future solicitation. Education Association’s Annual available the requested auxiliary aid or Conference. The Conference service because of insufficient time to DATES: Comments regarding the draft of participants and the general public are arrange it. the potential future solicitation must be invited to provide public comments. Electronic Access to this Document: received on or before November 3, 2014. The public comments and input will The official version of this document is ADDRESSES: Written comments may be serve to inform the NACIE as they the document published in the Federal sent to Peter W. Davidson, Executive develop recommendations to the Register. Free Internet access to the Director, Loan Programs Office, U.S. Secretary of Education on the funding official edition of the Federal Register and administration (including the and the Code of Federal Regulations is Department of Energy, 1000 development of regulations, and available via the Federal Digital System Independence Avenue SW., administrative policies and practices) of at: www.gpo.gov/fdsys. At this site you Washington, DC 20585. The draft any program over which the Secretary can view this document, as well as all solicitation is available on LPO’s Web has jurisdiction and includes Indian other documents of this Department site at http:// children or adults as participants or published in the Federal Register, in www.lgprogram.energy.gov/. text or Adobe Portable Document programs that may benefit Indian FOR FURTHER INFORMATION CONTACT: Format (PDF). To use PDF, you must children or adults, including any Peter W. Davidson, program established under Title VII, have Adobe Acrobat Reader, which is LPO.NuclearSolicitation.Comments@ Part A of the Elementary and Secondary available free at the site. hq.doe.gov. Education Act, and conduct discussions You may also access documents of the on the development of the report to Department published in the Federal SUPPLEMENTARY INFORMATION: DOE is Congress that should be submitted no Register by using the article search considering a potential future feature at: www.federalregister.gov. later than June 30, of each year. solicitation for Federal Loan Guarantees To sign up to provide comments and Specifically, through the advanced for Advanced Nuclear Energy Projects. RSVP, access the NACIE Web site at search feature at this site, you can limit Should DOE choose to proceed with WWW.NACIE–ED.ORG beginning your search to documents published by October 8, 2014. the Department. such a solicitation, applicants would be Individuals who will need Authority: The National Advisory invited to apply for loan guarantees accommodations for a disability in order Council on Indian Education is from DOE to finance projects and to attend the meeting (e.g., interpreting authorized by Section 7141 of the facilities located in the United States services, assistive listening devices, or Elementary and Secondary Education that employ innovative advanced material in alternative format) should Act. The Council is established within nuclear energy (‘‘Advanced Nuclear notify Jenelle Leonard at (202) 205– the Department of Education to advise Energy Projects’’). DOE may make up to 2161, no later than Wednesday, October the Secretary of Education on the Twelve Billion Six Hundred Million 8, 2014. We will make every attempt to funding and administration (including Dollars ($12,600,000,000) in loan meet requests for accommodations after the development of regulations, and guarantee authority available under the this date, but cannot guarantee their administrative policies and practices) of proposed solicitation for Advanced availability. The meeting site is any program over which the Secretary Nuclear Energy Projects. Of that accessible to individuals with has jurisdiction and includes Indian amount, $2,000,000,000 is available disabilities. children or adults as participants or exclusively for advanced nuclear Speakers will be allowed to provide programs that may benefit Indian facilities for the ‘‘front-end’’ of the comments for no more than five (5) children or adults, including any nuclear fuel cycle. The remaining minutes. Comments should pertain to program established under Title VII, $10,600,000,000 is available for nuclear the work of NACIE and/or the Office of Part A of the Elementary and Secondary power facilities. Indian Education. Education Act. Access to Records of the Meeting: The LPO is announcing a draft of a Department will post the official report Deborah S. Delisle, potential future solicitation for Federal of the hearings on the NACIE Web site Assistant Secretary for Elementary and Loan Guarantees for Advanced Nuclear 21 days after the meeting. Pursuant to Secondary Education. Energy Projects. LPO invites comments the FACA, the public may also inspect [FR Doc. 2014–23612 Filed 10–2–14; 8:45 am] regarding the draft of the potential the materials at the Office of Indian BILLING CODE 4000–01–P future solicitation. Education, United States Department of Statutory Authority: Title XVII of the Education, 400 Maryland Avenue SW., Energy Policy Act of 2005 (42 U.S.C. 16511 Washington, DC 20202. Monday-Friday, DEPARTMENT OF ENERGY et seq.). 8:30 a.m. to 5:00 p.m. Eastern Standard Time or by emailing Agency Request for Comments on Issued in Washington, DC, on September [email protected] or by calling Draft Solicitation for Advanced Nuclear 29, 2014. (202) 205–2161 to schedule an Energy Projects April G. Stephenson, appointment. AGENCY: U.S. Department of Energy. Chief Operating Officer, Loan Programs Reasonable Accommodations: The ACTION: Notice of availability and Office. hearing site is accessible to individuals request for comments. [FR Doc. 2014–23608 Filed 10–2–14; 8:45 am] with disabilities. If you will need an BILLING CODE 6450–01–P auxiliary aid or service to participate in SUMMARY: The Loan Programs Office the meeting (e.g., interpreting service, (LPO) of the Department of Energy

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DEPARTMENT OF ENERGY a proposed process plan and schedule) f. Location: Eel River and East Fork with the Commission, pursuant to 18 Russian River in Lake and Mendocino Federal Energy Regulatory CFR 5.6 of the Commission’s Counties, California. Commission regulations. g. Filed Pursuant to: Federal Power [Project No. 2839–014] n. A copy of the PAD is available for Act, 16 U.S.C. 791(a)–825(r). electronic review at the Commission in h. Applicant Contact: Ms. Neva Village of Lyndonville Electrical the Public Reference Room or may be Geldard, License Coordinator, Pacific Department; Notice of Intent To File viewed on the Commission’s Web site Gas and Electric Company, Mail Code: License Application, Filing of Pre- (http://www.ferc.gov), using the N13E, P.O. Box 770000, San Francisco, Application Document, Approving Use ‘‘eLibrary’’ link. Enter the docket CA 94177. of the Traditional Licensing Process number, excluding the last three digits i. FERC Contact: Mr. John Aedo, (415) in the docket number field to access the 369–3335, or [email protected]. a. Type of Filing: Notice of Intent to document. For assistance, contact FERC j. Deadline for filing comments, File License Application and Request to Online Support at motions to intervene, protests, and Use the Traditional Licensing Process. [email protected], (866) recommendations is 30 days from the b. Project No.: 2839–014 208–3676 (toll free), or (202) 502–8659 issuance date of this notice by the c. Date Filed: May 27, 2014 Commission (October 29, 2014). The d. Submitted By: Village of (TTY). A copy is also available for inspection and reproduction at the Commission strongly encourages Lyndonville Electrical Department electronic filing. Please file motions to address in paragraph h. (Lyndonville) intervene, protests, comments, or o. The licensee states its unequivocal e. Name of Project: Great Falls recommendations using the intent to submit an application for a Hydroelectric Project Commission’s eFiling system at http:// new license for Project No. 2839. f. Location: On the Passumpsic River, www.ferc.gov/docs-filing/efiling.asp. Pursuant to 18 CFR 16.8, 16.9, and 16.10 in Caledonia County, Vermont. No Commenters can submit brief comments each application for a new license and federal lands are occupied by the project up to 6,000 characters, without prior any competing license applications works or located within the project registration, using the eComment system must be filed with the Commission at boundary. at http://www.ferc.gov/docs-filing/ least 24 months prior to the expiration g. Filed Pursuant to: 18 CFR 5.3 of the ecomment.asp. You must include your Commission’s regulations of the existing license. All applications name and contact information at the end h. Potential Applicant Contact: for license for this project must be filed of your comments. For assistance, Kenneth Mason, Village of Lyndonville by May 31, 2017. please contact FERC Online Support at Electrical Department, 119 Park Avenue, p. Register online at http:// [email protected], (866) P.O. Box 167, Lyndonville, VT 05851; www.ferc.gov/docs-filing/ 208–3676 (toll free), or (202) 502–8659 (802) 626–3366. esubscription.asp to be notified via i. FERC Contact: Bill Connelly at (202) (TTY). In lieu of electronic filing, please email of new filing and issuances send a paper copy to: Secretary, Federal 502–8587; or email at william.connelly@ related to this or other pending projects. ferc.gov. Energy Regulatory Commission, 888 For assistance, contact FERC Online First Street NE., Washington, DC 20426. j. Lyndonville filed its request to use Support. the Traditional Licensing Process on Please include the project number (P– May 27, 2014. Lyndonville provided Dated: September 29, 2014. 77–269) on any comments, motions to public notice of its request on June 10, Nathaniel J. Davis, Sr., intervene, protests, or recommendations 2014. In a letter dated September 23, Deputy Secretary. filed. k. Description of Request: The 2014, the Director of the Division of [FR Doc. 2014–23621 Filed 10–2–14; 8:45 am] licensee requests a temporary variance Hydropower Licensing approved BILLING CODE 6717–01–P Lyndonville’s request to use the of the minimum flow requirement in the Traditional Licensing Process. East Branch Russian River. The licensee k. With this notice, we are initiating DEPARTMENT OF ENERGY states that it is planning to conduct informal consultation with the U.S. Fish repairs to project works, including: and Wildlife Service and/or NOAA Federal Energy Regulatory Replacing the penstock shutoff valves, Fisheries under section 7 of the Commission replacing the standpipe connection, and installing penstock protection. In order Endangered Species Act and the joint [Project No. 77–269] agency regulations thereunder at 50 to complete the work, the licensee is CFR, Part 402. We are also initiating Pacific Gas and Electric Company; requesting a temporary variance of its consultation with the Vermont State Notice of Application Accepted for Dry year minimum flow requirement of Historic Preservation Officer, as Filing, Soliciting Comments, Motions 35 cubic feet per second (cfs) between required by section 106, National To Intervene, and Protests November 1, 2014 and March 15, 2015. Historic Preservation Act, and the During this time, the licensee proposes implementing regulations of the Take notice that the following to release flows through a conduit into Advisory Council on Historic hydroelectric application has been filed a seasonal creek that is a tributary to the Preservation at 36 CFR 800.2. with the Commission and is available East Branch Russian River immediately l. With this notice, we are designating for public inspection: downstream of the project powerhouse. Lyndonville as the Commission’s non- a. Type of Application: Application The licensee states that during the federal representative for carrying out for Temporary Variance of Minimum repair period, it would release a informal consultation pursuant to Flow Requirement. minimum flow of 20 cfs from the section 7 of the Endangered Species Act b. Project No.: 77–269. conduit into the East Branch Russian and consultation pursuant to section c. Date Filed: September 19, 2014. River, which would include the release 106 of the National Historic d. Applicant: Pacific Gas and Electric of up to 5 cfs for the Potter Valley Preservation Act. Company (licensee). Irrigation District. As the project is m. Lyndonville filed a Pre- e. Name of Project: Potter Valley currently operating according to the Dry Application Document (PAD; including Project. year criteria, the licensee states that if

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site conditions reach a Critically Dry comments, motions to intervene, or Accession Number: 20140926–5000. year status, it would instead, maintain protests should relate to project works Comments Due: 5 p.m. ET 10/6/14. the license-required minimum flow of 5 which are the subject of the license Docket Numbers: ER14–2141–002. cfs. Upon completion of construction, surrender. Agencies may obtain copies Applicants: Selmer Farm, LLC. the licensee states that it would notify of the application directly from the Description: Tariff Amendment per the resource agencies and return to the applicant. A copy of any protest or 35.17(b): Amdmt to Baseline—Selmer license-required flows. motion to intervene must be served Farm, LLC 092514 to be effective l. Locations of the Application: A upon each representative of the 9/29/2014. copy of the application is available for applicant specified in the particular Filed Date: 9/25/14. inspection and reproduction at the application. If an intervener files Accession Number: 20140925–5152. Commission’s Public Reference Room, comments or documents with the Comments Due: 5 p.m. ET 10/6/14. located at 888 First Street NE., Room Commission relating to the merits of an Docket Numbers: ER14–2187–000; 2A, Washington, DC 20426, or by calling issue that may affect the responsibilities ER14–2187–003. (202) 502–8371. This filing may also be of a particular resource agency, they Applicants: Grand Ridge Energy viewed on the Commission’s Web site at must also serve a copy of the document Storage LLC. http://www.ferc.gov/docs-filing/ on that resource agency. A copy of all Description: Fourth supplement to elibrary.asp. Enter the docket number other filings in reference to this June 16, 2014 Grand Ridge Energy excluding the last three digits in the application must be accompanied by Storage LLC submits tariff filing. docket number field to access the proof of service on all persons listed in Filed Date: 9/26/14. document. You may also register online the service list prepared by the Accession Number: 20140926–5119. at http://www.ferc.gov/docs-filing/ Commission in this proceeding, in Comments Due: 5 p.m. ET 10/17/14. esubscription.asp to be notified via accordance with 18 CFR 4.34(b) and Docket Numbers: ER14–2578–000. email of new filings and issuances 385.2010. related to this or other pending projects. Applicants: El Paso Electric Company. For assistance, call 1–866–208–3676 or Dated: September 29, 2014. Description: Tariff Cancellation per email [email protected], for Nathaniel J. Davis, Sr., 35.17(a): OATT Additional Changes to TTY, call (202) 502–8659. A copy is also Deputy Secretary. Order 792 to be effective N/A. available for inspection and [FR Doc. 2014–23620 Filed 10–2–14; 8:45 am] Filed Date: 9/25/14. reproduction at the address in item (h) BILLING CODE 6717–01–P Accession Number: 20140925–5145. above. Comments Due: 5 p.m. ET 10/16/14. m. Individuals desiring to be included Docket Numbers: ER14–2885–001. on the Commission’s mailing list should DEPARTMENT OF ENERGY Applicants: Seiling Wind so indicate by writing to the Secretary Interconnection Services, LLC. of the Commission. Federal Energy Regulatory Description: Tariff Amendment per n. Comments, Protests, or Motions to Commission 35.17(b): Amendment to Seiling Int, Intervene: Anyone may submit Seiling I and Seiling II Shared Facilities Combined Notice of Filings #1 comments, a protest, or a motion to Agreement to be effective 10/1/2014. intervene in accordance with the Take notice that the Commission Filed Date: 9/25/14. requirements of Rules of Practice and received the following exempt Accession Number: 20140925–5153. Procedure, 18 CFR 385.210, .211, .214. wholesale generator filings: Comments Due: 5 p.m. ET 10/16/14. In determining the appropriate action to Docket Numbers: EG14–108–000. Docket Numbers: ER14–2940–000. take, the Commission will consider all Applicants: Roundtop Energy, LLC. Applicants: PJM Interconnection, protests or other comments filed, but Description: Self-Certification of EWG L.L.C. only those who file a motion to Status of Roundtop Energy LLC. Description: § 205(d) rate filing per intervene in accordance with the Filed Date: 9/26/14. 35.13(a)(2)(iii): Revisions to OATT re: Commission’s Rules may become a Accession Number: 20140926–5078. VRR Curve Triennial Review to be party to the proceeding. Any comments, Comments Due: 5 p.m. ET 10/17/14. effective 12/1/2014. protests, or motions to intervene must Filed Date: 9/25/14. be received on or before the specified Take notice that the Commission Accession Number: 20140925–5150. comment date for the particular received the following electric rate Comments Due: 5 p.m. ET 10/16/14. application. filings: o. Filing and Service of Responsive Docket Numbers: ER14–1485–003. Docket Numbers: ER14–2941–000. Documents: Any filing must (1) bear in Applicants: PJM Interconnection, Applicants: Southern California all capital letters the title L.L.C. Edison Company. ‘‘COMMENTS’’, ‘‘PROTEST’’, or Description: Tariff Amendment per Description: § 205(d) rate filing per ‘‘MOTION TO INTERVENE’’ as 35.17(b): Errata to Motion to Hold 35.13(a)(2)(iii): Amended SGIAs and applicable; (2) set forth in the heading Captioned Docket in Abeyance under Distribution Service Agmts with Golden the name of the applicant and the Docket No. ER14–1485 to be effective Springs to be effective 9/27/2014. project number of the application to 12/31/9998. Filed Date: 9/26/14. which the filing responds; (3) furnish Filed Date: 9/26/14. Accession Number: 20140926–5002. the name, address, and telephone Accession Number: 20140926–5146. Comments Due: 5 p.m. ET 10/17/14. number of the person protesting or Comments Due: 5 p.m. ET 10/17/14. Docket Numbers: ER14–2942–000. intervening; and (4) otherwise comply Docket Numbers: ER14–2140–002. Applicants: Avista Corporation. with the requirements of 18 CFR Applicants: Mulberry Farm, LLC. Description: § 205(d) rate filing per 385.2001 through 385.2005. All Description: Tariff Amendment per 35.13(a)(2)(iii): FERC Rate Schedule No. comments, motions to intervene, or 35.17(b): Suppl No 2 to Baseline 184 revised 2014 to be effective protests must set forth their evidentiary Filing—MBR Tariff Mulberry Farm 10/1/2014. basis and otherwise comply with the 092514 to be effective 10/1/2014. Filed Date: 9/26/14. requirements of 18 CFR 4.34(b). All Filed Date: 9/26/14. Accession Number: 20140926–5003.

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Comments Due: 5 p.m. ET 10/17/14. Docket Numbers: ER14–2950–000. Filed Date: 9/23/14. Docket Numbers: ER14–2943–000. Applicants: Midcontinent Accession Number: 20140923–5183. Applicants: Avista Corporation. Independent System Operator, ALLETE, Comments Due: 5 p.m. ET 10/14/14. Description: Initial rate filing per Inc. 284.123(g) Protests Due: 35.12 Avista Corp Service Agreement Description: § 205(d) rate filing per Docket Numbers: RP14–1277–000. _ No. 544 to be effective 10/1/2014. 35.13(a)(2)(iii): 2014–09–26 SA 2700 Applicants: Transcontinental Gas Filed Date: 9/26/14. Great Northern Transmission Line Pipe Line Company. Accession Number: 20140926–5005. MPFCA to be effective 11/25/2014. Description: § 4(d) rate filing per Comments Due: 5 p.m. ET 10/17/14. Filed Date: 9/26/14. 154.403(d)(2): LNG Fuel Tracker Filing Accession Number: 20140926–5148. 2014 to be effective 11/1/2014. Docket Numbers: ER14–2944–000. Comments Due: 5 p.m. ET 10/17/14. Applicants: NorthWestern Filed Date: 9/25/14. Corporation. Docket Numbers: ER14–2951–000. Accession Number: 20140925–5109. Applicants: Wisconsin Electric Power Description: Initial rate filing per Comments Due: 5 p.m. ET 10/7/14. Company. 35.12 SA 724 Utilities Agreement with Docket Numbers: RP14–1278–000. Description: § 205(d) rate filing per Montana DOT re Kershaw Turn Lanes Applicants: Midcontinent Express 35.13(a)(2)(iii): FERC Electric Tariff Rate Project to be effective 11/25/2014. Pipeline LLC. Schedule No. 122 to be effective Filed Date: 9/26/14. Description: § 4(d) rate filing per 12/1/2014. Accession Number: 20140926–5117. 154.204: Continental Resources’ Filed Date: 9/26/14. Negotiated Rate to be effective 10/1/ Comments Due: 5 p.m. ET 10/17/14. Accession Number: 20140926–5150. Docket Numbers: ER14–2945–000. 2014. Comments Due: 5 p.m. ET 10/17/14. Filed Date: 9/25/14. Applicants: Roundtop Energy LLC. The filings are accessible in the Description: Initial rate filing per Accession Number: 20140925–5121. Commission’s eLibrary system by Comments Due: 5 p.m. ET 10/7/14. 35.12 Roundtop Energy LLC MBR Tariff clicking on the links or querying the Application to be effective 11/25/2014. Docket Numbers: RP14–1279–000. docket number. Applicants: Tennessee Gas Pipeline Filed Date: 9/26/14. Any person desiring to intervene or Accession Number: 20140926–5118. Company, L.L.C. protest in any of the above proceedings Description: § 4(d) rate filing per Comments Due: 5 p.m. ET 10/17/14. must file in accordance with Rules 211 Docket Numbers: ER14–2946–000. 154.204: Volume No. 2—Statoil Natural and 214 of the Commission’s Gas LLC SP102661 to be effective 11/1/ Applicants: PJM Interconnection, Regulations (18 CFR 385.211 and L.L.C. 2014. 385.214) on or before 5:00 p.m. Eastern Filed Date: 9/25/14. Description: § 205(d) rate filing per time on the specified comment date. Accession Number: 20140925–5151. 35.13(a)(2)(iii): Original Service Protests may be considered, but Comments Due: 5 p.m. ET 10/7/14. Agreement No. 3939; Queue Z2–019 to intervention is necessary to become a Any person desiring to intervene or be effective 8/28/2014. party to the proceeding. protest in any of the above proceedings Filed Date: 9/26/14. eFiling is encouraged. More detailed must file in accordance with Rules 211 Accession Number: 20140926–5122. information relating to filing and 214 of the Commission’s Comments Due: 5 p.m. ET 10/17/14. requirements, interventions, protests, Regulations (18 CFR 385.211 and Docket Numbers: ER14–2947–000. service, and qualifying facilities filings 385.214) on or before 5:00 p.m. Eastern Applicants: NorthWestern can be found at: http://www.ferc.gov/ time on the specified comment date. Corporation. docs-filing/efiling/filing-req.pdf. For Protests may be considered, but Description: § 205(d) rate filing per other information, call (866) 208–3676 intervention is necessary to become a 35.13(a)(2)(iii): SA 605 Second (toll free). For TTY, call (202) 502–8659. party to the proceeding. Revised—NITSA with Bonnevilla Power Dated: September 26, 2014. Administration to be effective Nathaniel J. Davis, Sr., Filings in Existing Proceedings 10/1/2014. Deputy Secretary. Docket Numbers: RP14–1196–001. Filed Date: 9/26/14. Applicants: Gas Transmission Accession Number: 20140926–5144. [FR Doc. 2014–23619 Filed 10–2–14; 8:45 am] BILLING CODE 6717–01–P Northwest LLC. Comments Due: 5 p.m. ET 10/17/14. Description: Compliance filing per Docket Numbers: ER14–2948–000. 154.203: Compliance to RP14–1196–000 Applicants: Tucson Electric Power DEPARTMENT OF ENERGY to be effective 9/22/2014. Company. Filed Date: 9/26/14. Description: § 205(d) rate filing per Federal Energy Regulatory Accession Number: 20140926–5018. 35.13(a)(2)(iii): Gila River Power Station Commission Comments Due: 5 p.m. ET 10/8/14. Ownership Agreement to be effective Any person desiring to protest in any 11/25/2014. Combined Notice of Filings of the above proceedings must file in Filed Date: 9/26/14. Take notice that the Commission has accordance with Rule 211 of the Accession Number: 20140926–5145. received the following Natural Gas Commission’s Regulations (18 CFR Comments Due: 5 p.m. ET 10/17/14. Pipeline Rate and Refund Report filings: § 385.211) on or before 5:00 p.m. Eastern Docket Numbers: ER14–2949–000. time on the specified comment date. Applicants: Puget Sound Energy, Inc. Filings Instituting Proceedings The filings are accessible in the Description: Initial rate filing per Docket Numbers: PR14–55–000. Commission’s eLibrary system by 35.12 Air Products TX Interconnection, Applicants: Arkansas Oklahoma Gas clicking on the links or querying the NITSA & NOA Agreements to be Corporation. docket number. effective 9/1/2014. Description: Request for Limited eFiling is encouraged. More detailed Filed Date: 9/26/14. Waiver of Requirement to Submit information relating to filing Accession Number: 20140926–5147. Informational Rate Filing and Continued requirements, interventions, protests, Comments Due: 5 p.m. ET 10/17/14. Limited Waiver of Form 549–D. service, and qualifying facilities filings

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can be found at: http://www.ferc.gov/ Conformity to a SIP means that review posting (see http://www.epa.gov/ docs-filing/efiling/filing-req.pdf. For transportation activities will not otaq/stateresources/transconf/ other information, call (866) 208–3676 produce new air quality violations, currsips.htm#steam-spr-co). EPA sent a (toll free). For TTY, call (202) 502–8659. worsen existing violations, or delay letter to the CDPHE on January 23, 2014, Dated: September 26, 2014. timely attainment of the National stating that the submitted Steamboat Ambient Air Quality Standard Nathaniel J. Davis, Sr., Springs PM10 second 10-year (NAAQS). maintenance plan and the 2024 PM Deputy Secretary. 10 The criteria by which we determine MVEB were adequate for transportation [FR Doc. 2014–23528 Filed 10–2–14; 8:45 am] whether a SIP revision’s motor vehicle conformity purposes. BILLING CODE 6717–01–P emissions budget (MVEB) is adequate For the Lamar PM10 maintenance area, for conformity purposes are outlined in the MVEB we found adequate is 764 40 CFR 93.118(e)(4), which was pounds of PM10 per day in 2025. ENVIRONMENTAL PROTECTION promulgated August 15, 1997 (62 FR Following the effective date listed in the AGENCY 43780). We described our process for DATES section of this notice, the [EPA–R08–OAR–2014–0236; FRL–9917–35– determining the adequacy of submitted Colorado Department of Transportation Region–8] SIP MVEBs in our July 1, 2004 and the U.S. Department of Transportation Conformity Rule Transportation are required to use this Adequacy Determination for Lamar Amendments (69 FR 40004). We used motor vehicle emissions budget for and Steamboat Springs PM10 these resources in making our adequacy future transportation conformity Maintenance Plans’ Motor Vehicle determinations announced in this determinations for projects in the Lamar Emissions Budgets for Transportation notice. PM10 maintenance area. For the This notice is simply an Conformity Purposes; State of Steamboat Springs PM10 maintenance Colorado announcement of findings that we have area, the MVEB we found adequate is already made and are as described 1,103 pounds of PM per day in 2024. AGENCY: Environmental Protection 10 below: Following the effective date listed in the Agency. Lamar (PM10): The State submitted the DATES section of this notice, the ‘‘Revised PM Maintenance Plan for the ACTION: Notice of adequacy. 10 Colorado Department of Transportation Lamar Attainment/Maintenance Area’’ 1 and the U.S. Department of SUMMARY: In this notice, the on May 13, 2013. The State prepared the Transportation are required to use this Environmental Protection Agency (EPA) submittal to meet the requirements of motor vehicle emissions budget for is notifying the public that the Agency section 175A(b) of the CAA for a second future transportation conformity has found the following adequate for 10-year maintenance plan. We posted determinations for projects in the transportation conformity purposes: The the ‘‘Revised PM10 Maintenance Plan for Steamboat Springs PM10 maintenance ‘‘Revised PM10 Maintenance Plan for the the Lamar Attainment/Maintenance area. Lamar Attainment/Maintenance Area’’ Area’’ for adequacy review on EPA’s Please note that our adequacy review and its motor vehicle emissions budget, transportation conformity Web site on described above is separate from our and the ‘‘Revised PM10 Maintenance November 15, 2013. The public rulemaking action on the two Plan for the Steamboat Springs comment period closed on December maintenance plans discussed above and Attainment/Maintenance Area’’ and its 16, 2013, and we did not receive any should not be used to prejudge our motor vehicle emissions budget. As comments in response to the adequacy ultimate approval or disapproval of each more fully explained in the review posting (see http://www.epa.gov/ of the SIP revisions. Even if we find a Supplementary Information section of otaq/stateresources/transconf/ maintenance plan and its MVEB this notice, this finding will affect future currsips.htm#lamar-co). EPA sent a adequate for transportation conformity transportation conformity letter to the Colorado Department of purposes now, we may later find it determinations. Public Health and Environment necessary to disapprove the SIP (CDPHE) on January 23, 2014, stating DATES: This finding is effective on revision. Should this situation arise, we that the submitted Lamar PM second October 20, 2014. 10 would then revisit our adequacy 10-year maintenance plan and the 2025 FOR FURTHER INFORMATION CONTACT: Tim finding. Russ, Air Program, Mailcode 8P–AR, PM10 MVEB were adequate for Authority: 42 U.S.C. 7401 et seq. Environmental Protection Agency, transportation conformity purposes. Region 8, 1595 Wynkoop Street, Denver, Steamboat Springs (PM10): The State Dated: September 4, 2014. Colorado 80202–1129, telephone submitted the ‘‘Revised PM10 Shaun L. McGrath, number (303) 312–6479, fax number Maintenance Plan for the Steamboat Regional Administrator, Region 8. Springs Attainment/Maintenance Area’’ (303) 312–6064, or email russ.tim@ [FR Doc. 2014–23636 Filed 10–2–14; 8:45 am] epa.gov. on May 11, 2012. The State prepared the submittal to meet the requirements of BILLING CODE 6560–50–P SUPPLEMENTARY INFORMATION: section 175A(b) of the CAA for a second Throughout this document, whenever 10-year maintenance plan. We posted ‘‘we,’’ ‘‘us,’’ or ‘‘our,’’ are used, we mean ENVIRONMENTAL PROTECTION the ‘‘Revised PM10 Maintenance Plan for AGENCY EPA. Whenever ‘‘State’’ is used, we the Steamboat Springs Attainment/ mean the State of Colorado. Maintenance Area’’ for adequacy review [ER–FRL–9017–3] Transportation conformity is required on EPA’s transportation conformity Web by section 176(c) of the Clean Air Act site on November 15, 2013. The public Environmental Impact Statements; (CAA). The conformity rule provisions comment period closed on December Notice of Availability at 40 CFR 93 require that transportation 16, 2013, and we did not receive any plans, programs, and projects conform comments in response to the adequacy Responsible Agency: Office of Federal to a State Implementation Plan (SIP) and Activities, General Information (202) 1 establish the criteria and procedures for PM10 refers to particulate matter less than or 564–7146 or http://www.epa.gov/ determining whether or not they do. equal to 10 microns in diameter. compliance/nepa/.

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Weekly receipt of Environmental Impact EIS No. 20140236, Final EIS, USACE, uncertainty factors in its computation of Statements WA, Lower Snake River Programmatic toxicity values (e.g., reference Filed 09/22/2014 Through 09/26/2014 Sediment Management Plan, Review concentrations [RfC] and reference Pursuant to 40 CFR 1506.9 Period Ends: 09/22/2014, Contact: doses [RfD]) to compensate for an Sandra Shelin 509–527–7265. Notice absence of data. Default uncertainty Revision to FR Notice Published 09/ factors have historically been based on Section 309(a) of the Clean Air Act 26/2014; Correction to the Review policy or regulatory positions rather requires that EPA make public its Period, which ended on 09/22/2014 than on empirical data applicable to the comments on EISs issued by other and not 09/29/2014. chemical of interest. Among the Federal agencies. EPA’s comment letters Dated: September 30, 2014. uncertainty factors used in EPA on EISs are available at: http:// Cliff Rader, assessments are those compensating for www.epa.gov/compliance/nepa/ a lack of information on how well eisdata.html. Director, NEPA Compliance Division, Office of Federal Activities. animal models used in toxicity studies EIS No. 20140282, Final EIS, NPS, TX, [FR Doc. 2014–23639 Filed 10–2–14; 8:45 am] mimic humans (interspecies) and Big Thicket National Preserve Final BILLING CODE 6560–50–P differences in response between the General Management Plan, Review majority of the population (central Period Ends: 11/03/2014, Contact: tendency) compared with the sensitive Doug Neighbor 409–951–6801. ENVIRONMENTAL PROTECTION individual (intraspecies). With the EIS No. 20140283, Final EIS, NPS, TX, AGENCY publication of An Examination of EPA Lake Meredith National Recreation Area and Alibates Flint Quarries [EPA–HQ–ORD–2014; FRL–9917–45–ORD] Risk Assessment Principles and Practices ‘‘Staff Paper’’ published in National Monument General Notice of Availability of Guidance for Management Plan, Review Period 2004, and EPA’s Guidelines for Applying Quantitative Data To Develop Carcinogen Risk Assessment, published Ends: 11/03/2014, Contact: Arlene Data-Derived Extrapolation Factors for Wimer 806–857–0309. in 2005, the Agency announced its Interspecies and Intraspecies policy of considering all relevant data EIS No. 20140284, Draft Supplement, Extrapolation FHWA, VA, U.S. Route 460 Corridor, before applying default values. Comment Period Ends: 11/17/2014, AGENCY: Environmental Protection In 2011 EPA published Contact: Edward S. Sundra, 804–775– Agency. Recommended Use of Body Weight3⁄4 as 3357. The U.S. Department of ACTION: Notice of availability. the Default Method in Derivation of the Transportation’s Federal Highway Oral Reference Dose. In that guidance Administration, the U.S. Army Corps SUMMARY: This notice announces the EPA listed the optimal approach as of Engineers, and the Virginia availability of Guidance for Applying using a physiologically-based Department of Transportation are Quantitative Data to Develop Data- pharmacokinetic or other biologically- joint lead agencies for the above Derived Extrapolation Factors for based model with the default approach project. Interspecies and Intraspecies using the ratio of body weights raised to EIS No. 20140285, Final EIS, USFS, CA, Extrapolation (DDEF Guidance). This the 3⁄4 power. California Pacific Electricity Company document lays out methods for 625 and 650 Electrical Line Upgrade calculation of factors compensating for The DDEF Guidance lays out a Project, Review Period Ends: 11/03/ the application of animal toxicity data computational process for using 2014, Contact: Robert Rodman 530– to humans (interspecies) and for chemical-specific data on toxicokinetics 543–2613. compensating for sensitive populations (adsorption, metabolism, distribution EIS No. 20140286, Draft EIS, USFS, CA, (intraspecies). The use of data to and excretion) and toxicodynamics Jess Project, Klamath National Forest, conduct these extrapolations rather than (response of the tissue to the active form Comment Period Ends: 11/17/2014, rely on default values advances EPA’s of the agent). Contact: Angie Bell 530–842–6131. policy of considering relevant data first It should be noted that the DDEF EIS No. 20140287, Draft EIS, USFS, WA, when conducting its chemical Guidance is the first EPA product to Mt. Baker-Snoqualmie Invasive Plant assessments. provide a method both for quantitative Management, Comment Period Ends: DATES: The document will be available determination of relative sensitivity of 11/17/2014, Contact: Phyllis Reed October 3, 2014. the pharmacodynamic response in an 360–436–2332. ADDRESSES: The Guidance for Applying assessment and for empirical EIS No. 20140288, Draft EIS, BPA, OR, Quantitative Data to Develop Data- determination of intraspecies WA, Walla Walla Basin Spring Derived Extrapolation Factors for Chinook Hatchery Program, Comment sensitivity. As such, this method Interspecies and Intraspecies Period Ends: 11/24/2014, Contact: provides a valuable tool for identifying Extrapolation is available at the EPA Donald L. Rose 503–230–3796. and quantifying sensitive populations Web site http://www.epa.gov/raf/DDEF/ and lifestages. Amended Notices index.htm. Dated: August 21, 2014. FOR FURTHER INFORMATION CONTACT: Dr. EIS No. 20140198, Draft EIS, NMFS, Robert Kavlock, WA, Two Joint State and Tribal Michael Broder, Office of the Science Interim EPA Science Advisor. Resource Management Plans for Puget Advisor, Mail Code 8105R, U.S. Sound Salmon and Steelhead Environmental Protection Agency, 1200 [FR Doc. 2014–23637 Filed 10–2–14; 8:45 am] Hatchery Programs, Comment Period Pennsylvania Ave. NW., Washington, BILLING CODE 6560–50–P Ends: 11/24/2014, Contact: Steve DC 20460; telephone number (202) 564– Leider 360–753–4650. Revision to the 3393; fax number (202) 564–2070; or FR Notice Published 07/25/2014; email: [email protected]. Extending the Comment Period from SUPPLEMENTARY INFORMATION: 10/23/2014 to 11/24/2014. Historically, EPA has employed default

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FEDERAL COMMUNICATIONS and Priority mail) must be sent to 9300 presentation was made, and (2) COMMISSION East Hampton Drive, Capitol Heights, summarize all data presented and MD 20743. U.S. Postal Service first arguments made during the [CG Docket No. 14–157; DA 14–1354] class, Express, and Priority mail must be presentation. If the presentation Termination of Dormant Proceedings addressed to 445 12th Street, SW., consisted in whole or in part of the Washington DC 20554. presentation of data or arguments AGENCY: Federal Communications FOR FURTHER INFORMATION CONTACT: already reflected in the presenter’s Commission. Gayle Radley Teicher, Consumer and written comments, memoranda or other ACTION: Notice. Governmental Affairs Bureau at (202) filings in the proceeding, the presenter 418–1515 or by email at gayle.teicher@ may provide citations to such data or SUMMARY: In this document, the fcc.gov. arguments in his or her prior comments, Commission, via the Consumer and memoranda, or other filings (specifying SUPPLEMENTARY INFORMATION: This is a Governmental Affairs Bureau (CGB), synopsis of the Commission’s Public the relevant page and/or paragraph seeks comment on whether certain numbers where such data or arguments Notice, Consumer and Governmental docketed Commission proceedings can be found) in lieu of summarizing Affairs Bureau Seeks Comment on should be terminated as dormant. The them in the memorandum. Documents Termination of Certain Proceedings as Commission’s procedural rules, which shown or given to Commission staff Dormant, document DA 14–1354, were revised to streamline and improve during ex parte meetings are deemed to released on September 18, 2014 in CG the agency’s docket management be written ex parte presentations and Docket No. 14–157. must be filed consistent with rule practices, delegate authority to the The full text of document DA 14–1354 1.1206(b). In proceedings governed by Chief, CGB to periodically review all and copies of any subsequently filed rule 1.49(f) or for which the open dockets and, in consultation with documents in this matter will be Commission has made available a the responsible Bureaus or Offices, to available for public inspection and method of electronic filing, written ex identify those dockets that appear to be copying via ECFS, and during regular parte presentations and memoranda candidates for termination. business hours at the FCC Reference summarizing oral ex parte DATES: Comments are due on or before Information Center, Portals II, 445 12th presentations, and all attachments November 3, 2014, and reply comments Street SW., Room CY–A257, are due on or before November 17, 2014. thereto, must be filed through the Washington, DC 20554. Copies may also electronic comment filing system ADDRESSES: Interested parties may be purchased from the Commission’s available for that proceeding, and must submit comments, identified by [CG duplicating contractor, Best Copy and be filed in their native format (e.g., .doc, Docket No. 14–157], by any of the Printing, Inc., Portals II, 445 12th Street, .xml, .ppt, searchable .pdf). Participants following methods: SW., Room CY–B402, Washington, DC in this proceeding should familiarize D Electronic Filers: Comments may be 20554, telephone (800) 378–3160, fax: themselves with the Commission’s ex filed electronically using the Internet by (202) 488–5563, or Internet: parte rules. accessing the Commission’s Electronic www.bcpiweb.com. Document DA 14– To request materials in accessible Comment Filing System (ECFS) at 1354 can also be downloaded in Word formats for people with disabilities http://fjallfoss.fcc.gov/ecfs2/. Filers or Portable Document Format (PDF) at: (Braille, large print, electronic files, should follow the instructions provided http://www.fcc.gov/document/cgb- audio format), send an email to fcc504@ on the Web site for submitting seeks-comment-termination-certain- fcc.gov or call the Consumer and comments. In completing the transmittal proceedings-dormant-1. The Governmental Affairs Bureau at (202) screen, ECFS filers should include their spreadsheet associated with document 418–0530 (voice) or (202) 418–0432 full name, U.S. Postal Service mailing DA 14–1354 listing the proceedings (TTY). address, and the applicable docket or proposed for termination for dormancy Synopsis: On February 4, 2011, the rulemaking number, which in this is available in Word or Portable Commission released document FCC instance is CG Docket No. 14–157. Document Format at http:// 11–16, Amendment of Certain of the D Paper Filers: Parties who choose to www.fcc.gov/article/da-14-1354a2. Commission’s Part 1 Rules of Practice file by paper must file an original and Pursuant to 47 CFR 1.415 and 1.419, and Procedure and Part 0 Rules of one copy of each filing. Filings can be interested parties may file comments Commission Organization, Report and sent by hand or messenger delivery, by and reply comments on or before the Order, 76 FR 24383, May 2, 2011, which commercial overnight courier, or by respective dates indicated in the DATES revised portions of its Part 1—Practice first-class or overnight U.S. Postal section of this document. and Procedure and Part 0— Service mail. All filings must be Pursuant to 47 CFR 1.1200 et seq., this Organizational rules. addressed to the Commission’s matter shall be treated as a ‘‘permit-but- The revised rules, in part, delegate Secretary, Office of the Secretary, disclose’’ proceeding in accordance authority to the Chief, CGB to Federal Communications Commission. with the Commission’s ex parte rules. periodically review all open dockets D All hand-delivered or messenger- Persons making ex parte presentations and, in consultation with the delivered paper filings for the must file a copy of any written responsible Bureaus or Offices, to Commission’s Secretary must be presentation or a memorandum identify those dockets that appear to be delivered to FCC Headquarters at 445 summarizing any oral presentation candidates for termination. These 12th Street, SW., Room TW–A325, within two business days after the candidates include dockets in which no Washington, DC 20554. The filing hours presentation (unless a different deadline further action is required or are 8 a.m. to 7 p.m. All hand deliveries applicable to the Sunshine period contemplated, as well as those in which must be held together with rubber bands applies). Persons making oral ex parte no pleadings or other documents have or fasteners. Any envelopes and boxes presentations are reminded that been filed for several years. However, must be disposed of before entering the memoranda summarizing the the Commission specified that building. presentation must (1) list all persons proceedings in which petitions D Commercial overnight mail (other attending or otherwise participating in addressing the merits are pending than U.S. Postal Service Express mail the meeting at which the ex parte should not be terminated absent the

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parties’ consent. The termination of a contractor, Best Copy and Printing, Inc., proceeding under the Commission’s ex dormant proceeding also includes 445 12th Street SW., Room CY–B402, parte rules. dismissal as moot of any pending Washington, DC 20554, telephone (800) Internet Openness and the Law petition, motion, or other request for 378–3160 or (202) 863–2893, facsimile relief that is procedural in nature or (202) 863–2898, or via the Internet at 9:00–9:15 a.m.—Welcome and Opening otherwise does not address the merits of http://www.bcpiweb.com. It is available Remarks the proceeding. on the Commission’s Web site at http:// 9:15–10:45 a.m.—Roundtable 1: Sources Prior to the termination of any www.fcc.gov. of Legal Authority particular proceeding, the Commission The roundtable will be free and open was directed to issue a Public Notice to the public, and the FCC also will This roundtable will discuss the identifying the dockets under stream them live at http://www.fcc.gov/ sources of authority on which the consideration for termination and live. The location of the roundtable will Commission could ground Open affording interested parties an be the Commission Meeting Room (TW– Internet rules, including a range of opportunity to comment. Thus, CGB has C305), 445 12th Street SW., Washington, approaches relying on section 706, Title identified the dockets for possible DC 20554. The FCC will make available II, and other possible sources of termination in document DA 14–1354, an overflow room for those in-person authority. available at http://www.fcc.gov/ attendees who cannot be accommodated Panelists: document/cgb-seeks-comment- in the Commission Meeting Room. We Mark Cooper, Director of Research, termination-certain-proceedings- advise persons planning to attend the Consumer Federation of America roundtables in person to leave sufficient dormant-1. Gus Hurwitz, Assistant Professor of time to enter through building security. Federal Communications Commission. The FCC encourages members of the Law, Nebraska College of Law Kris Monteith, public to submit suggested questions in Pantelis Michalopoulos, Partner, Acting Chief, Consumer and Governmental advance and during the roundtables by Steptoe & Johnson LLP Affairs Bureau. email to [email protected] or on Thomas Navin, Partner, Wiley Rein LLP [FR Doc. 2014–23643 Filed 10–2–14; 8:45 am] Twitter using the hashtag Nuala O’Connor, President and CEO, BILLING CODE 6712–01–P #FCCRoundtables. Please note that by Center for Democracy and Technology submitting a question, you will be Tim Wu, Professor of Law, Columbia making a filing in an official FCC Law School FEDERAL COMMUNICATIONS proceeding. All information submitted, COMMISSION including names, addresses, and other Moderators: [GN Docket No. 14–28; DA 14–1410] personal information contained in the Jonathan Sallet, General Counsel, FCC message, may be publicly available Stephanie Weiner, Special Advisor to Panelist Information for Open Internet online. the Chairman on Internet Law and Roundtables Reasonable accommodations for Policy & Associate General Counsel, people with disabilities are available AGENCY: Federal Communications FCC upon request. The request should 11:00 a.m.–12:30 p.m.—Roundtable 2: Commission. include a detailed description of the Construction of Legally Sustainable ACTION: Notice. accommodation needed and contact Rules SUMMARY: In this document, the information. We ask that requests for This roundtable will consider Commission released a public notice accommodations be made as soon as additional legal issues, including announcing panelist names and other possible in order to allow the agency to constitutional considerations, the nature information for a series of roundtables. satisfy such requests whenever possible. of common-carriage regulation, and The intended effect of this document is Send an email to [email protected] or call approaches to agency rulemaking and to make the public aware of the event the Consumer and Governmental Affairs adjudication using tools like and the agenda for the roundtables. Bureau at 202–418–0530 (voice), 202– 418–0432 (TTY). prescriptive rules, legal standards, DATES: Tuesday, October 7, 2014, 9:00 prohibitions, and presumptions to a.m.–12:30 p.m. Proposed Agenda protect and promote Internet openness. ADDRESSES: Federal Communications The Office of General Counsel of the Panelists: Commission, Commission Meeting Federal Communications Commission Marvin Ammori, Fellow, New America Room (TW–C305), 445 12th Street SW., (FCC) provides panelist names and Foundation Washington, DC 20554. other information about the final event FOR FURTHER INFORMATION CONTACT: in the Open Internet roundtable series: Anne Boyle, Commissioner, Nebraska Andrew Erber, Office of General ‘‘Internet Openness and the Law,’’ Public Service Commission Counsel at (202) 418–0678 or by email which will take place on October 7, Fred Campbell, Director, Center for at [email protected]. 2014. This roundtable was previously Boundless Innovation in Technology SUPPLEMENTARY INFORMATION: This is a announced in a Public Notice. At that Julia Johnson, Chair, Minority Media & summary of the Commission’s time, it was unclear whether the Telecommunications Council document in GN Docket No. 14–28, DA roundtable would be a ‘‘meeting’’ of the Tejas Narechania, Julius Silver Research 14–1410 released September 29, 2014. Commission. As such, that Notice was Fellow, Columbia Law School The complete text in this document is not published in the Federal Register. John Windhausen, Jr., President, available for public inspection and This Notice shall serve as notice that a Telepoly Consulting copying during normal business hours quorum of Commissioners may be in the FCC Reference Information present at the roundtable, in compliance Federal Communications Commission. Center, Portals II, 445 12th Street SW., with part 0, subpart F of the Stephanie Weiner, Room CY–A257, Washington, DC 20554. Commission’s rules. This Notice does Associate General Counsel. The document may also be purchased not, however, change the ‘‘permit-but- [FR Doc. 2014–23644 Filed 10–2–14; 8:45 am] from the Commission’s duplicating disclose’’ status of the Open Internet BILLING CODE 6712–01–P

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FEDERAL TRADE COMMISSION associated with the Franchise Rule. 79 to give your comment confidential FR 41284. No comments were received. treatment, you must file it in paper Agency Information Collection Pursuant to the OMB regulations, 5 CFR form, with a request for confidential Activities; Submission for OMB Part 1320, that implement the PRA, 44 treatment, and you have to follow the Review; Comment Request U.S.C. 3501 et seq., the FTC is providing procedure explained in FTC Rule 4.9(c), a second opportunity for the public to 16 CFR 4.9(c).2 Your comment will be AGENCY: Federal Trade Commission comment while seeking OMB approval kept confidential only if the FTC (‘‘FTC’’ or ‘‘Commission’’). to renew the pre-existing clearance for General Counsel grants your request in ACTION: Notice. the Rule. accordance with the law and the public Estimated Annual Burden: 16,750 interest. SUMMARY: The information collection Postal mail addressed to the requirements described below will be hours. Estimated Number of Respondents, Commission is subject to delay due to submitted to the Office of Management Estimated Average Burden per Year per heightened security screening. As a and Budget (‘‘OMB’’) for review, as Respondent: (250 new franchisors × 30 result, we encourage you to submit your required by the Paperwork Reduction hours of annual disclosure burden) + comments online, or to send them to the Act (‘‘PRA’’). The FTC is seeking public (2,250 established franchisors × 3 hours Commission by courier or overnight comments on its proposal to extend for of average annual disclosure burden) + service. To make sure that the an additional three years its OMB (2,500 franchisors × 1 hour of annual Commission considers your online clearance for the information collection recordkeeping burden).1 comment, you must file it at https:// requirements contained in its Trade Estimated Annual Labor Cost: ftcpublic.commentworks.com/ftc/ Regulation Rule on Disclosure $3,597,500. franchiserulePRA2 by following the Requirements and Prohibitions Estimated Capital or Other Non-Labor instructions on the web-based form. If Concerning Franchising (‘‘Franchise Cost: $8,000,000. this Notice appears at http://www. Rule’’ or ‘‘Rule’’). That clearance expires Request for Comment: You can file a regulations.gov/#!home, you also may on December 31, 2014. comment online or on paper. For the file a comment through that Web site. DATES: Comments must be submitted by FTC to consider your comment, we If you file your comment on paper, November 3, 2014. must receive it on or before November write ‘‘Franchise Rule, PRA Comment, ADDRESSES: Interested parties may file a 3, 2014. Write ‘‘Franchise Rule, PRA FTC File No. P094400’’ on your comment online or on paper, by Comment, FTC File No. P094400’’ on comment and on the envelope, and mail following the instructions in the your comment. Your comment— it to the following address: Federal Request for Comment part of the including your name and your state— Trade Commission, Office of the SUPPLEMENTARY INFORMATION section will be placed on the public record of Secretary, 600 Pennsylvania Avenue below. Write ‘‘Franchise Rule, PRA this proceeding, including, to the extent NW., Suite CC–5610 (Annex J), Comment, FTC File No. P094400’’ on practicable, on the public Commission Washington, DC 20580, or deliver your your comment. File your comment Web site, at http://www.ftc.gov/os/ comment to the following address: online at https://ftcpublic.comment publiccomments.shtm. As a matter of Federal Trade Commission, Office of the works.com/ftc/franchiserulePRA2 by discretion, the Commission tries to Secretary, Constitution Center, 400 7th following the instructions on the web- remove individuals’ home contact Street SW., 5th Floor, Suite 5610 based form. If you prefer to file your information from comments before (Annex J), Washington, DC 20024. If comment on paper, mail your comment placing them on the Commission Web possible, submit your paper comment to to the following address: Federal Trade site. the Commission by courier or overnight Commission, Office of the Secretary, Because your comment will be made service. Visit the Commission Web site at 600 Pennsylvania Avenue NW., Suite public, you are solely responsible for http://www.ftc.gov to read this Notice. CC–5610 (Annex J), Washington, DC making sure that your comment does The FTC Act and other laws that the 20580, or deliver your comment to the not include any sensitive personal Commission administers permit the following address: Federal Trade information, like anyone’s Social collection of public comments to Commission, Office of the Secretary, Security number, date of birth, driver’s consider and use in this proceeding as Constitution Center, 400 7th Street SW., license number or other state appropriate. The Commission will 5th Floor, Suite 5610 (Annex J), identification number or foreign country consider all timely and responsive Washington, DC 20024. equivalent, passport number, financial public comments that it receives on or account number, or credit or debit card FOR FURTHER INFORMATION CONTACT: before November 3, 2014. You can find number. You are also solely responsible Requests for additional information more information, including routine for making sure that your comment does should be addressed to Craig Tregillus, uses permitted by the Privacy Act, in not include any sensitive health Attorney, Division of Marketing the Commission’s privacy policy, at information, like medical records or Practices, Bureau of Consumer http://www.ftc.gov/ftc/privacy.htm. Protection, Federal Trade Commission, other individually identifiable health Comments on the information 600 Pennsylvania Avenue NW., information. In addition, do not include collection requirements subject to Mailstop CC–8528, Washington, DC any ‘‘[t]rade secret or any commercial or review under the PRA should 20580, (202) 326–2970. financial information which is obtained additionally be submitted to OMB. If SUPPLEMENTARY INFORMATION: from any person and which is privileged sent by U.S. mail, they should be Title: Franchise Rule, 16 CFR Part or confidential . . . , ’’ as provided in addressed to Office of Information and 436. Section 6(f) of the FTC Act, 15 U.S.C. Regulatory Affairs, Office of OMB Control Number: 3084–0107. 46(f), and FTC Rule 4.10(a)(2), 16 CFR Type of Review: Extension of 4.10(a)(2). If you want the Commission 2 In particular, the written request for confidential currently approved collection. treatment that accompanies the comment must 1 The details and assumptions underlying these include the factual and legal basis for the request, Abstract: On July 15, 2014, the estimates and for estimated annual labor and non- and must identify the specific portions of the Commission sought comment on the labor costs were set forth in the July 15, 2014 comment to be withheld from the public record. See information collection requirements Federal Register notice. FTC Rule 4.9(c), 16 CFR 4.9(c).

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Management and Budget, Attention: Assistant Secretary for Health on issues DEPARTMENT OF HEALTH AND Desk Officer for the Federal Trade and topics pertaining to or associated HUMAN SERVICES Commission, New Executive Office with the protection of human research Building, Docket Library, Room 10102, subjects. Centers for Medicare & Medicaid Services 725 17th Street NW., Washington, DC The meeting will open to the public 20503. Comments sent to OMB by U.S. at 8:30 a.m., Wednesday, October 29. [Document Identifier: CMS–10538] postal mail, however, are subject to Following opening remarks from Dr. delays due to heightened security Agency Information Collection Jerry Menikoff, Executive Secretary of precautions. Thus, comments instead Activities: Proposed Collection; SACHRP and OHRP Director, and Dr. should be sent by facsimile to (202) Comment Request 395–5806. Jeffrey Botkin, SACHRP Chair, new members will be introduced. The AGENCY: Centers for Medicare & David C. Shonka, Subpart A Subcommittee (SAS) will Medicaid Services. Principal Deputy General Counsel. then give their report on the new SAS ACTION: Notice. [FR Doc. 2014–23601 Filed 10–2–14; 8:45 am] initiative examining informed consent. SUMMARY: The Centers for Medicare & BILLING CODE 6750–01–P SAS is charged with developing recommendations for consideration by Medicaid Services (CMS) is announcing an opportunity for the public to SACHRP regarding the application of comment on CMS’ intention to collect subpart A of 45 CFR part 46 in the DEPARTMENT OF HEALTH AND information from the public. Under the HUMAN SERVICES current research environment. SAS was Paperwork Reduction Act of 1995 (the established by SACHRP in October Meeting of the Secretary’s Advisory PRA), federal agencies are required to 2006. Following this report, an OHRP publish notice in the Federal Register Committee on Human Research staff member will present and discuss Protections concerning each proposed collection of OHRP data addressing incidental information (including each proposed AGENCY: Office of the Assistant findings and corrective action plans. extension or reinstatement of an existing Secretary for Health, Office of the On October 30, the Subcommittee on collection of information) and to allow Secretary, Department of Health and Harmonization (SOH) will discuss their 60 days for public comment on the Human Services. work on the topic of the intersection of proposed action. Interested persons are ACTION: Notice. the HHS and FDA regulations and ‘‘big invited to send comments regarding our data’’; this will be followed by a burden estimates or any other aspect of SUMMARY: Pursuant to Section 10(a) of presentation of SOH work on the topic this collection of information, including the Federal Advisory Committee Act, of return of general results. SOH was any of the following subjects: (1) The U.S.C. Appendix 2, notice is hereby established by SACHRP at its July 2009 necessity and utility of the proposed given that the Secretary’s Advisory meeting. SOH is charged with information collection for the proper Committee on Human Research identifying and prioritizing areas in performance of the agency’s functions; (2) the accuracy of the estimated Protections (SACHRP) will hold a which regulations and/or guidelines for burden; (3) ways to enhance the quality, meeting that will be open to the public. human subjects research adopted by utility, and clarity of the information to Information about SACHRP and the full various agencies or offices within HHS meeting agenda will be posted on the be collected; and (4) the use of would benefit from harmonization, SACHRP Web site at: http:// automated collection techniques or consistency, clarity, simplification and/ www.dhhs.gov/ohrp/sachrp/mtgings/ other forms of information technology to or coordination. index.html. minimize the information collection Public attendance at the meeting is burden. DATES: The meeting will be held on limited to space available. Individuals Wednesday, October 29, 2014, from 8:30 DATES: Comments must be received by who plan to attend and need special a.m. until 5:00 p.m. and Thursday, December 2, 2014: assistance, such as sign language October 30, 2014, from 8:30 a.m. until ADDRESSES: When commenting, please 4:00 p.m. interpretation or other reasonable reference the document identifier or accommodations, should notify the ADDRESSES: Fishers Lane Conference OMB control number (OCN). To be SACHRP at the address/phone number assured consideration, comments and Center, Terrace Level, 5635 Fishers listed above at least one week prior to Lane, Rockville, Maryland 20852. recommendations must be submitted in the meeting. Pre-registration is required any one of the following ways: FOR FURTHER INFORMATION CONTACT: Jerry for participation in the on-site public 1. Electronically. You may send your Menikoff, M.D., J.D., Director, Office for comment session; individuals may pre- comments electronically to http:// Human Research Protections (OHRP), or register the day of the meeting. www.regulations.gov. Follow the Julia Gorey, J.D., Executive Director, Individuals who would like to submit instructions for ‘‘Comment or SACHRP; U.S. Department of Health written statements should email or fax Submission’’ or ‘‘More Search Options’’ and Human Services, 1101 Wootton their comments to SACHRP at to find the information collection Parkway, Suite 200, Rockville, [email protected] at least five business document(s) that are accepting Maryland 20852; 240–453–8141; fax: days prior to the meeting. comments. 240–453–6909; email address: 2. By regular mail. You may mail [email protected]. Dated: September 29, 2014. written comments to the following SUPPLEMENTARY INFORMATION: Under the Jerry Menikoff, address: CMS, Office of Strategic authority of 42 U.S.C. 217a, Section 222 Executive Secretary, Secretary’s Advisory Operations and Regulatory Affairs, of the Public Health Service Act, as Committee on Human Research Protections, Division of Regulations Development, amended, SACHRP was established to Director, Office for Human Research Attention: Document Identifier/OMB provide expert advice and Protections. Control Number lll, Room C4–26– recommendations to the Secretary of [FR Doc. 2014–23664 Filed 10–2–14; 8:45 am] 05, 7500 Security Boulevard, Baltimore, Health and Human Services and the BILLING CODE 4150–36–P Maryland 21244–1850.

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To obtain copies of a supporting under Medicare Part D. Per statute, enhance the quality, utility, and clarity statement and any related forms for the drugs that are necessary for the of the information to be collected; and proposed collection(s) summarized in palliation and management of the (4) the use of automated collection this notice, you may make your request terminal illness and related conditions techniques or other forms of information using one of following: are not eligible for payment under Part technology to minimize the information 1. Access CMS’ Web site address at D. The standard form provides a vehicle collection burden. http://www.cms.hhs.gov/Paperwork for the hospice provider, prescriber or DATES: Comments on the collection(s) of ReductionActof1995. sponsor to document that the drug information must be received by the 2. Email your request, including your prescribed is ‘‘unrelated’’ to the OMB desk officer by November 3, 2014. address, phone number, OMB number, terminal illness and related conditions. ADDRESSES: When commenting on the and CMS document identifier, to It also gives a hospice organization the proposed information collections, [email protected]. option to communicate a beneficiary’s please reference the document identifier 3. Call the Reports Clearance Office at change in hospice status and care plan or OMB control number. To be assured (410) 786–1326. to Part D sponsors. Form Number: CMS– consideration, comments and FOR FURTHER INFORMATION CONTACT: 10538 (OMB control number 0938-New; recommendations must be received by Reports Clearance Office at (410) 786– Frequency: Occasionally; Affected the OMB desk officer via one of the 1326. Public: Private sector (business or other following transmissions: OMB, Office of for-profits); Number of Respondents: SUPPLEMENTARY INFORMATION: Information and Regulatory Affairs, 424; Total Annual Responses: 376,487; Attention: CMS Desk Officer, Fax Contents Total Annual Hours: 31,374. (For policy Number: (202) 395–5806 or Email: questions regarding this collection _ This notice sets out a summary of the OIRA [email protected]. contact Shelly Winston at 410–786– To obtain copies of a supporting use and burden associated with the 3694). following information collections. More statement and any related forms for the detailed information can be found in Dated: September 30, 2014. proposed collection(s) summarized in each collection’s supporting statement Martique Jones, this notice, you may make your request and associated materials (see Director, Regulations Development Group, using one of following: 1. Access CMS’ Web site address at ADDRESSES). Office of Strategic Operations and Regulatory Affairs. http://www.cms.hhs.gov/ CMS–10538 Prior Authorization Form [FR Doc. 2014–23613 Filed 10–2–14; 8:45 am] PaperworkReductionActof1995. for Beneficiaries Enrolled in Hospice BILLING CODE 4120–01–P 2. Email your request, including your Under the PRA (44 U.S.C. 3501– address, phone number, OMB number, 3520), federal agencies must obtain and CMS document identifier, to approval from the Office of Management DEPARTMENT OF HEALTH AND [email protected]. 3. Call the Reports Clearance Office at and Budget (OMB) for each collection of HUMAN SERVICES (410) 786–1326. information they conduct or sponsor. Centers for Medicare & Medicaid FOR FURTHER INFORMATION CONTACT: The term ‘‘collection of information’’ is Services defined in 44 U.S.C. 3502(3) and 5 CFR Reports Clearance Office at (410) 786– 1320.3(c) and includes agency requests [Document Identifier: CMS–10237, CMS– 1326. or requirements that members of the 10357 and CMS–10499] SUPPLEMENTARY INFORMATION: Under the public submit reports, keep records, or Paperwork Reduction Act of 1995 (PRA) Agency Information Collection provide information to a third party. (44 U.S.C. 3501–3520), federal agencies Activities: Submission for OMB Section 3506(c)(2)(A) of the PRA must obtain approval from the Office of Review; Comment Request requires federal agencies to publish a Management and Budget (OMB) for each 60-day notice in the Federal Register ACTION: Notice. collection of information they conduct concerning each proposed collection of or sponsor. The term ‘‘collection of information, including each proposed SUMMARY: The Centers for Medicare & information’’ is defined in 44 U.S.C. extension or reinstatement of an existing Medicaid Services (CMS) is announcing 3502(3) and 5 CFR 1320.3(c) and collection of information, before an opportunity for the public to includes agency requests or submitting the collection to OMB for comment on CMS’ intention to collect requirements that members of the public approval. To comply with this information from the public. Under the submit reports, keep records, or provide requirement, CMS is publishing this Paperwork Reduction Act of 1995 information to a third party. Section notice. (PRA), federal agencies are required to 3506(c)(2)(A) of the PRA (44 U.S.C. publish notice in the Federal Register 3506(c)(2)(A)) requires federal agencies Information Collection concerning each proposed collection of to publish a 30-day notice in the 1. Type of Information Collection information, including each proposed Federal Register concerning each Request: New collection (Request for a extension or reinstatement of an existing proposed collection of information, new OMB control number); Title of collection of information, and to allow including each proposed extension or Information Collection: Prior a second opportunity for public reinstatement of an existing collection Authorization Form for Beneficiaries comment on the notice. Interested of information, before submitting the Enrolled in Hospice; Use: The form persons are invited to send comments collection to OMB for approval. To would be completed by the prescriber or regarding the burden estimate or any comply with this requirement, CMS is the beneficiary’s hospice, or if the other aspect of this collection of publishing this notice that summarizes prescriber or hospice provides the information, including any of the the following proposed collection(s) of information verbally to the Part D following subjects: (1) The necessity and information for public comment: sponsor, the form would be completed utility of the proposed information 1. Type of Information Collection by the sponsor. Information provided on collection for the proper performance of Request: Revision of a currently the form would be used by the Part D the agency’s functions; (2) the accuracy approved collection; Title of sponsor to establish coverage of the drug of the estimated burden; (3) ways to Information Collection: Part C—

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Medicare Advantage and 1876 Cost Plan or to suspend payment only in part. The could be nearly eliminated if we were Expansion Application; Use: The State Medicaid agency may suspend to maintain a database on the readiness information will be collected under the payments without first notifying the of public health agencies and registries. solicitation of Part C applications from provider of its intention to suspend In the final rule for Stage 2 of MA, EGWP Plan, and Cost Plan such payments. A provider may request, meaningful use (77 FR 53967), we applicants and will be used to ensure and must be granted, administrative agreed that the burden on eligible that applicants meet our requirements review where State law so requires. providers, public health agencies and and support the determination of • Collection of Social Security registries would be greatly reduced and contract awards. Participation in all Numbers (SSNs) and Dates of Birth established that we would create such a programs is voluntary in nature; only (DOBs) for Medicaid and CHIP database and it would serve as the organizations that are interested in Providers: The State Medicaid agency or definitive information source for participating in the program will CHIP agency must require that all determining public health agency and respond to the solicitation. The MA– persons with an ownership or control registry readiness to receive electronic PDs that voluntarily participate in the interest in a Medicaid or CHIP provider data associated with the public health Part C program must submit a Part D submit their SSNs and DOBs. meaningful use objectives. The application and successful bid. The • Site Visits for Medicaid-only or information will be made publicly package has been revised subsequent to CHIP-only providers: A State Medicaid available on the CMS Web site the publication of the 30-day Federal agency or CHIP agency must conduct (www.cms.gov/EHRincentiveprograms) Register notice (July 11, 2014; 79 FR on-site visits for providers it determines in order to provide a centralized 40105). Form Number: CMS–10237 to be ‘‘moderate’’ or ‘‘high’’ categorical repository of this information to eligible (OMB control number: 0938–0935); risk. providers and eliminate there multiple Frequency: Yearly; Affected Public: • Rescreening of Medicaid and CHIP individual inquiries to multiple public Private sector—Business or other for- Providers Every 5 Years: A State health agencies and registries. Form profits and Not-for-profit institutions; Medicaid agency or CHIP agency must Number: CMS–10499 (OMB control Number of Respondents: 566; Total screen all providers at least every 5 number: 0938—New); Frequency: Annual Responses: 566; Total Annual years. This is consistent with the Yearly; Affected Public: Private sector— Hours: 22,625. (For policy questions Medicare requirement in current 42 CFR Business or other for-profits and Not- regarding this collection contact Melissa 424.515 that providers and suppliers for-profit institutions; Number of Staud at 410–786–3669). revalidate their enrollment information Respondents: 250; Total Annual 2. Type of Information Collection at least every 5 years. Responses: 250; Total Annual Hours: Request: Reinstatement without change Form Number: CMS–10357 (OMB 83. (For policy questions regarding this of a previously approved collection: control number: 0938–1137); Frequency: collection contact Kathleen Connors de Title of Information Collection: Letter On occasion; Affected Public: Private Laguna at 410–786–2256). sector—Business or for-profit and Not- Requesting Waiver of Medicare/ Dated: September 30, 2014. Medicaid Enrollment Application Fee; for-profit institutions and State, Local, Martique Jones, Submission of Fingerprints; Submission or Tribal Governments; Number of of Medicaid Identifying Information; Respondents: 960,981; Total Annual Director, Regulations Development Group, Responses: 960,981; Total Annual Office of Strategic Operations and Regulatory Medicaid Site Visit and Rescreening; Affairs. Use: Section 6401 of the Affordable Care Hours: 1,248,082. (For policy questions [FR Doc. 2014–23614 Filed 10–2–14; 8:45 am] Act (ACA) establishes a number of regarding this collection contact Frank important payment safeguard Whelan at 410–786–1302). BILLING CODE 4120–01–P provisions. The provisions are designed 3. Type of Information Collection to improve the integrity of the Medicare, Request: New collection (Request for a new OMB control number); Title of DEPARTMENT OF HEALTH AND Medicaid, and Children’s Health HUMAN SERVICES Insurance Programs (CHIP) so as to Information Collection: Public Health reduce fraud, waste and abuse. The Agency/Registry Readiness to Support Administration for Children and provisions include the following: Meaningful Use; Use: The Medicare and Families • Medicare Enrollment Application Medicaid Electronic Health Record Fee Waiver Request: Certain providers (EHR) Incentive Programs provide Proposed Information Collection and suppliers enrolling in Medicare will incentives for the meaningful use of Activity; Comment Request be required to submit a fee with their Certified Electronic Health Record application. Under 42 CFR 424.514, if Technology (CEHRT). We defined Proposed Projects the applicant believes it has a hardship meaningful use as a set of objectives and Title: Reunification Procedures for that justifies a waiver of the application measures in either Stage 1 or Stage 2 Unaccompanied Alien Children. fee, it may submit a letter describing depending on how long an eligible OMB No.: 0970–0278. said hardship. provider has participated in the Description: Following the passage of • Fingerprints: Certain providers and program. Both Stage 1 (3 objectives) and the 2002 Homeland Security Act (Pub. suppliers enrolling in Medicare, Stage 2 (5 objectives) of meaningful use L. 107–296), the Administration for Medicaid, and CHIP will be required to contain objectives and measures that Children and Families (ACF), Office of submit fingerprints—either digitally or require eligible providers to determine Refugee Resettlement (ORR), is charged via the FD–258 standard fingerprint the readiness of public health agencies with the care and placement of card—of their owners. and registries to receive electronic data unaccompanied alien children in • Suspension of Medicaid Payments: from CEHRT. Public comments on the Federal custody, and implementing a A State Medicaid agency shall suspend notice of proposed rulemaking for Stage policy for the release of these children, all Medicaid payments to a provider 2 of meaningful use (77 FR 13697) when appropriate, upon the request of when there is a pending investigation of asserted that the burden for each suitable sponsors while awaiting a credible allegation of Medicaid fraud individual eligible provider to immigration proceedings. In order for against an individual or entity, unless it determine the readiness of multiple ORR to make determinations regarding has good cause not to suspend payments public health agencies and registries the release of these children, the

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potential sponsors must meet certain ORR for determining the suitability of a and the Authorization for Release of conditions pursuant to section 462 of sponsor/respondent for the release of a Information. the Homeland Security Act and the minor from ORR custody. The proposed Respondents: Sponsors requesting Flores v. Reno Settlement Agreement instruments are the Family release of unaccompanied alien children No. CV85–4544–RJK (C.D. Cal. 1997). Reunification Application, the Family to their custody. The proposed information collection Reunification Checklist for Sponsors, requests information to be utilized by

ANNUAL BURDEN ESTIMATES

Number of Average Instrument Number of responses per burden hours Total burden respondents respondent per response hours

Family Reunification Application ...... 55,200 1 .25 13,800 Family Reunification Checklist for Sponsors ...... 55,200 1 .75 41,400 Authorization for Release of Information ...... 55,200 1 .25 13,800

Estimated Total Annual Burden DEPARTMENT OF HEALTH AND Electronic Records; Electronic Hours: 69,000. HUMAN SERVICES Signatures—(OMB Control Number ORR has requested emergency 0910–0303)—Extension Food and Drug Administration processing for this information FDA regulations in part 11 (21 CFR collection for a period of 90 days from [Docket No. FDA–2011–N–0076] part 11) provide criteria for acceptance the October 31, 2014 expiration date of of electronic records, electronic these instruments. Agency Information Collection signatures, and handwritten signatures In compliance with the requirements Activities; Submission for Office of executed to electronic records as of Section 506(c)(2)(A) of the Paperwork Management and Budget Review; equivalent to paper records. Under these Reduction Act of 1995, the Comment Request; Electronic regulations, records and reports may be Administration for Children and Records; Electronic Signatures submitted to FDA electronically Families is soliciting public comment AGENCY: Food and Drug Administration, provided the Agency has stated its on the specific aspects of the HHS. ability to accept the records information collection described above. ACTION: Notice. electronically in an Agency-established Copies of the proposed collection of public docket and that the other information can be obtained and SUMMARY: The Food and Drug requirements of part 11 are met. comments may be forwarded by writing Administration (FDA) is announcing The recordkeeping provisions in part to the Administration for Children and that a proposed collection of 11 (§§ 11.10, 11.30, 11.50, and 11.300) Families, Office of Planning, Research information has been submitted to the require the following standard operating and Evaluation, 370 L’Enfant Office of Management and Budget procedures to assure appropriate use of, Promenade SW., Washington, DC 20447, (OMB) for review and clearance under and precautions for, systems using Attn: ACF Reports Clearance Officer. the Paperwork Reduction Act of 1995. electronic records and signatures: (1) Email address: infocollection@ DATES: Fax written comments on the § 11.10 specifies procedures and acf.hhs.gov. All requests should be collection of information by November controls for persons who use closed identified by the title of the information 3, 2014. systems to create, modify, maintain, or collection. ADDRESSES: To ensure that comments on transmit electronic records; (2) § 11.30 The Department specifically requests the information collection are received, specifies procedures and controls for comments on: (a) Whether the proposed OMB recommends that written persons who use open systems to create, collection of information is necessary comments be faxed to the Office of modify, maintain, or transmit electronic for the proper performance of the Information and Regulatory Affairs, records; (3) § 11.50 specifies procedures functions of the agency, including OMB, Attn: FDA Desk Officer, FAX: and controls for persons who use whether the information shall have 202–395–7285, or emailed to oira_ electronic signatures; and (4) § 11.300 practical utility; (b) the accuracy of the [email protected]. All specifies controls to ensure the security agency’s estimate of the burden of the comments should be identified with the and integrity of electronic signatures proposed collection of information; (c) OMB control number 0910–0303. Also based upon use of identification codes the quality, utility, and clarity of the include the FDA docket number found in combination with passwords. The information to be collected; and (d) in brackets in the heading of this reporting provision (§ 11.100) requires ways to minimize the burden of the document. persons to certify in writing to FDA that collection of information on they will regard electronic signatures FOR FURTHER INFORMATION CONTACT: FDA respondents, including through the use used in their systems as the legally PRA Staff, Office of Operations, Food of automated collection techniques or binding equivalent of traditional and Drug Administration, 8455 other forms of information technology. handwritten signatures. Colesville Rd., COLE–14526, Silver Consideration will be given to The burden created by the Spring, MD 20993–0002, PRAStaff@ comments and suggestions submitted information collection provision of this fda.hhs.gov. within 60 days of this publication. regulation is a one-time burden SUPPLEMENTARY INFORMATION: In associated with the creation of standard Robert Sargis, compliance with 44 U.S.C. 3507, FDA operating procedures, validation, and Reports Clearance Officer. has submitted the following proposed certification. The Agency anticipates the [FR Doc. 2014–23581 Filed 10–2–14; 8:45 am] collection of information to OMB for use of electronic media will BILLING CODE 4184–01–P review and clearance. substantially reduce the paperwork

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burden associated with maintaining governments, Federal Agencies, and comment on the proposed collection of FDA required records. The respondents nonprofit institutions. information. No comments were are businesses and other for-profit In the Federal Register of March 28, received. organizations, state or local 2014 (79 FR 17551), FDA published a FDA estimates the burden of this 60-day notice requesting public collection of information as follows:

TABLE 1—ESTIMATED ANNUAL REPORTING BURDEN 1

Number of Average 21 CFR section Number of responses per Total annual burden per Total hours respondents respondent responses response

11.100—General Requirements ...... 4,500 1 4,500 1 4,500 1 There are no capital costs or operating and maintenance costs associated with this collection of information.

TABLE 2—ESTIMATED ANNUAL RECORDKEEPING BURDEN 1

Number of Average 21 CFR section Number of records per Total annual burden per Total hours recordkeepers recordkeeper records recordkeeping

11.10—Controls for closed systems ...... 2,500 1 2,500 20 50,000 11.30—Controls for open systems ...... 2,500 1 2,500 20 50,000 11.50—Signature manifestations ...... 4,500 1 4,500 20 90,000 11.300—Controls for identification codes/passwords ...... 4,500 1 4,500 20 90,000

Total ...... 280,000 1 There are no capital costs or operating and maintenance costs associated with this collection of information.

Dated: September 29, 2014. by which FDA intends to phase in obtained by mail by calling CBER at 1– Peter Lurie, enforcement of FDA regulatory 800–835–4709 or 240–402–7800. Associate Commissioner for Policy and requirements for LDTs over time. This Submit electronic comments on the Planning. draft guidance is not final, nor is it in draft guidance to http:// [FR Doc. 2014–23551 Filed 10–2–14; 8:45 am] effect at this time. www.regulations.gov. Submit written comments to the Division of Dockets BILLING CODE 4164–01–P DATES: Although you can comment on any guidance at any time (see 21 CFR Management (HFA–305), Food and Drug 10.115(g)(5)), to ensure that the Agency Administration, 5630 Fishers Lane, Rm. DEPARTMENT OF HEALTH AND considers your comment on this draft 1061, Rockville, MD 20852. Identify comments with the docket number HUMAN SERVICES guidance before it begins work on the found in brackets in the heading of this final version of the guidance, submit Food and Drug Administration document. either electronic or written comments FOR FURTHER INFORMATION CONTACT: [Docket No. FDA–2011–D–0360] on the draft guidance by February 2, 2015. [email protected]; or Framework for Regulatory Oversight of Katherine Serrano, Center for Devices ADDRESSES: Laboratory Developed Tests; Draft An electronic copy of the and Radiological Health, Food and Drug Guidance for Industry, Food and Drug guidance document is available for Administration, Bldg. 66, Rm. 5646, Administration Staff, and Clinical download from the Internet. See the 10903 New Hampshire Ave., Silver Laboratories; Availability SUPPLEMENTARY INFORMATION section for Spring, MD 20993–0002, 240–402–4217; information on electronic access to the or Stephen Ripley, Center for Biologics AGENCY: Food and Drug Administration, guidance. Submit written requests for Evaluation and Research Food and Drug HHS. single hard copies of the draft guidance Administration, 10903 New Hampshire ACTION: Notice. document entitled ‘‘Framework for Ave., Bldg. 71, Rm. 7301, Silver Spring, Regulatory Oversight of Laboratory MD 20993–0002, 240–402–7911. SUMMARY: The Food and Drug Developed Tests (LDTs)’’ to the Office of SUPPLEMENTARY INFORMATION: Administration (FDA) is announcing the the Center Director, Guidance and availability of the draft guidance Policy Development, Center for Devices I. Background entitled ‘‘Framework for Regulatory and Radiological Health (CDRH), Food In 1976, Congress enacted the Medical Oversight of Laboratory Developed Tests and Drug Administration, 10903 New Device Amendments (MDA), which (LDTs).’’ This document describes a Hampshire Ave., Bldg. 66, Rm. 5431, amended the Federal Food, Drug, and risk-based framework for addressing the Silver Spring, MD 20993–0002, or the Cosmetic Act (the FD&C Act) to create regulatory oversight of a subset of in Office of Communication, Outreach, and a comprehensive system for the vitro diagnostic devices (IVDs) referred Development, Center for Biologics regulation of medical devices intended to as laboratory developed tests (LDTs), Evaluation and Research (CBER), Food for use in humans. At that time, the which are intended for clinical use and and Drug Administration, 10903 New definition of a device was amended to designed, manufactured and used Hampshire Ave., Bldg. 71, Rm. 3128, make explicit that it encompassed in within a single laboratory. This Silver Spring, MD 20993–0002. Send vitro diagnostic devices (IVDs): ‘‘The document describes FDA’s priorities for one self-addressed adhesive label to term ‘device’. . . means an instrument, enforcing pre- and post-market assist that office in processing your apparatus, implement, machine, requirements for LDTs, and the process request. The guidance may also be contrivance, implant, in vitro reagent, or

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other similar or related article . . .’’ now easily provide device results reporting, and phase in enforcement of (section 201(h) of the FD&C Act (21 nationally and internationally. Today, premarket and quality system U.S.C. 321(h)). The definition of device many new LDT manufacturers are large requirements in a risk-based manner. applies equally to IVDs manufactured corporations that nationally market a On July 31, 2014, as required by by conventional device manufacturers limited number of complex, high-risk Section 1143 of the Food and Drug and those manufactured by laboratories. devices, in contrast to 1976 when Administration Safety and Innovation An IVD, therefore, meets the device hospital or public health laboratories Act, FDA provided notification to definition irrespective of where and by used a wide range of devices that were Congress of its intent to issue this draft whom it is manufactured. generally either well characterized and guidance and the accompanying draft Since the implementation of the MDA similar to standard devices; used to guidance entitled ‘‘FDA Notification of 1976, FDA has exercised enforcement diagnose rare diseases; or designed and Medical Device Reporting for discretion so that the Agency has specifically to meet the needs of their Laboratory Developed Test (LDTs)’’ (the generally not enforced applicable local patients. Together, these changes availability of the accompanying draft provisions under the FD&C Act and have resulted in a significant shift in the guidance is announced elsewhere in FDA regulations with respect to types of LDTs developed, the business this issue of the Federal Register). The laboratory developed tests (LDTs), a model for developing them, and the anticipated details of these draft subset of in vitro diagnostic devices that potential risks they pose to patients. guidance documents were included in are intended for clinical use and Because of changes in the complexity the notification to Congress. designed, manufactured, and used and use of LDTs and the associated Although FDA was not accepting within a single laboratory. increased risks, as described earlier, formal comments on its notification to In 1976, LDTs were mostly FDA believes the policy of general Congress, the Agency has received manufactured in small volumes by local enforcement discretion towards LDTs is informal comments and questions laboratories. Many laboratories no longer appropriate. To initiate this regarding the anticipated details of this manufactured LDTs that were similar to step toward greater oversight, FDA held draft guidance provided in the well-characterized, standard diagnostic a two-day public meeting on July 19 and notification to Congress. To give devices, as well as other LDTs that were 20, 2010, to provide a forum for everyone an opportunity to provide intended for use in diagnosing rare stakeholders to discuss issues and formal comments on the anticipated diseases or for other uses to meet the concerns surrounding greater oversight details as part of the administrative needs of a local patient population. of LDTs. Comments submitted to the record, the details of the draft guidance LDTs at the time tended to rely on the public docket for the July public are identical to that which were manual techniques used by laboratory meeting have been addressed, as included in FDA’s July 31, 2014, personnel. LDTs were typically used appropriate, in the draft guidance notification to Congress with the and interpreted directly by physicians document. exception of the following technical and pathologists working within a Once finalized and implemented, this amendments: The definition of single institution that was responsible guidance document is intended to companion diagnostic has been updated for the patient. In addition, historically, provide a risk-based oversight for consistency with the final guidance LDTs were manufactured using framework that will assure that devices on ‘‘In Vitro Companion Diagnostic components that were legally marketed used in the provision of health care, Devices’’ issued on August 6, 2014, and for clinical use (i.e., general purpose whether developed by a laboratory or a the ‘‘Traditional LDT’’ factor regarding reagents, immunohistochemical stains, conventional IVD manufacturer, comply whether the LDT is comprised only of and other components marketed in with the appropriate levels of regulatory components and instruments that are compliance with FDA regulatory controls needed to assure that they are legally marketed has been clarified to requirements). safe and effective. Under the framework more accurately reflect FDA’s intent of Although some laboratories today still outlined in this guidance document, considering whether the LDT is manufacture LDTs in this ‘‘traditional’’ FDA intends to continue to exercise comprised of only components and manner, the landscape for laboratory enforcement discretion for all applicable instruments that are legally marketed for testing in general, and LDTs along with regulatory requirements for LDTs used clinical use. it, has changed dramatically since 1976. solely for forensic (law enforcement) To provide greater transparency on Today, LDTs are often used in purposes as well as certain LDTs for certain questions and issues that have laboratories that are independent of the transplantation when used in certified, been raised and to allow for broad healthcare delivery entity. Additionally, high-complexity histocompatibility public input, in addition to welcoming LDTs are frequently manufactured with laboratories. Additionally, FDA intends comments on all aspects of this draft components and instruments that are to exercise enforcement discretion for guidance, FDA seeks feedback on the not legally marketed for clinical use and applicable premarket review following specific issues: also rely more heavily on complex, requirements and quality systems • Traditional LDTs: In Section D.5.(a) high-tech instrumentation and software requirements, but enforce other of the draft guidance, FDA has proposed to generate results and clinical applicable regulatory requirements, continued enforcement discretion for interpretations. Moreover, technological including registration and listing (with premarket review and quality system advances have increased the use of the option to provide notification requirements for a category of LDTs diagnostic devices in guiding critical instead) and adverse event reporting, for called ‘‘Traditional LDTs’’ based on clinical management decisions for high- low risk LDTs (class I devices), LDTs for whether the device is: (1) an LDT risk diseases and conditions, rare diseases, Traditional LDTs and (designed, manufactured and used particularly in the context of LDTs for Unmet Needs, as described in within a single laboratory); (2) personalized medicine. the draft guidance document. For other manufactured and used by a health care Business models for laboratories have high and moderate risk LDTs, FDA facility laboratory (such as one located also changed since 1976. With the intends to enforce applicable regulatory in a hospital or clinic) for a patient that advent of overnight shipping and requirements, including registration and is being diagnosed and/or treated at that electronic delivery of information (e.g., listing (with the option to provide same health care facility or within the device results), a single laboratory can notification instead) and adverse event facility’s healthcare system; (3)

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comprised only of components and feedback on whether enforcement FDA intends to generally enforce instruments that are legally marketed for discretion should be limited to tests that premarket review requirements 12 clinical use; and (4) interpreted by are designed, manufactured and used months following publication of the qualified laboratory professionals within a single laboratory. final Framework guidance, should without the use of automated • Healthcare System: In Section D.5. remain under enforcement discretion for instrumentation or software for of the draft guidance, for the categories the design control requirements (21 CFR interpretation. FDA believes that these of tests called ‘‘Traditional LDTs’’ and 820.30(a-h) and (j)) of the QS regulation factors appropriately mitigate risks ‘‘LDTs for Unmet Needs,’’ FDA has for up to 24 months after publication of associated with Traditional LDTs being identified factors it intends to consider the final guidance. used on patients so that continued in continuing to exercise enforcement • Notification: FDA notes that some enforcement discretion with respect to discretion for premarket review and laboratory networks (i.e., more than one premarket review and quality system quality system requirements. One such laboratory under the control of the same requirements is appropriate. However, factor is whether the LDT is both parent entity) offer the same test in FDA is seeking public feedback as to manufactured and used by a healthcare multiple laboratories throughout their whether the following three factors may facility laboratory (such as one located network. Although devices in this be sufficient to appropriately mitigate in a hospital or clinic) for a patient that scenario do not meet FDA’s definition of risk for this category of tests and is being diagnosed and/or treated at that an LDT (i.e., they are not designed, whether they may also be sufficient to same healthcare facility or within that manufactured and used within a single support continued enforcement facility’s healthcare system. To further laboratory), FDA would like feedback on discretion in full (i.e., for all regulatory clarify this factor, the guidance whether a single notification from the requirements rather than just for document explains that ‘‘healthcare laboratory network for that test is premarket review and quality system system’’ refers to a collection of sufficient, provided that the laboratory requirements): (1) the test is an LDT hospitals that are owned and operated network indicates in the notification to (designed, manufactured and used by the same entity and that share access FDA that the test is offered at multiple within a single laboratory); (2) the test to patient care information for their sites. In addition, FDA seeks comment makes use of only components and patients, such as, but not limited to, on whether there are certain types of instruments that are legally marketed for drug order information, treatment and LDTs for which the Agency should clinical use, which have a number of diagnosis information, and patient neither enforce requirements for regulatory controls in place, including outcomes. While FDA invites feedback registration and listing nor request reporting of adverse events; and (3) the on all factors described in Section D.5. notification in lieu of registration and test is interpreted by laboratory of the draft guidance, FDA specifically listing. • FDA understands that members of professionals who are appropriately requests feedback on whether the public may want more clarity qualified and trained as required by the enforcement discretion should be around specific issues; such as how Clinical Laboratory Improvement limited, as proposed, to those LDTs that laboratory sponsors could interpret Amendments regulations (e.g., 42 CFR are both manufactured and used by a what elements make up a medical 493.1449), without the use of automated healthcare facility laboratory. FDA also device, what might constitute the label instrumentation or software for invites the public to provide feedback to or labeling for their device, whether or interpretation. the Agency on which types of facilities not unique device identifier • would or would not be considered LDTs Used for Rare Diseases: In within a healthcare system, or to offer requirements apply to LDTs, and how Section D.5.(a) of the draft guidance, an alternative description of healthcare laboratory-physician communication FDA has proposed continued system for Agency consideration. about a test and its result would be enforcement discretion for premarket • Quality System (QS) Phase-in: In viewed by FDA, among others. We review and quality system requirements Section D.6. of the draft guidance, FDA invite public comment on these issues for LDTs used for rare diseases, which has proposed to continue to exercise and any other issues or questions that are those tests that meet the definition enforcement discretion with respect to should be addressed in the guidance, of LDT in the guidance (designed, QS regulation requirements, codified in including how that issue or question manufactured and used within a single 21 CFR Part 820, until a manufacturer should be addressed. laboratory) and meet the definition of a of a given LDT submits a Premarket Additionally, FDA intends to hold a Humanitarian Use Device (HUD) under Approval (PMA) or FDA issues a 510(k) public webinar in late October, 2014 to 21 CFR 814.102(a)(5). With these clearance order for the LDT. Under this summarize the proposed oversight factors, FDA has attempted to balance enforcement policy, the clinical framework and answer clarification the need to mitigate the risks associated laboratory manufacturing and using the questions from stakeholders. The with these tests with their potential LDT will be responsible for having a webinar will not require registration and benefit for patients. FDA invites quality system in place that meets the will be announced at least one week in stakeholders to provide feedback on the minimum requirements codified in 21 advance on FDA’s Web site. It will be suitability of these factors for LDTs for CFR Part 820, either at the time of PMA recorded and made available on FDA’s rare diseases. Further, FDA is seeking submission (the facility that makes the Web site shortly thereafter. feedback on whether a factor other than device must pass an inspection as a the HUD definition should be condition of PMA approval as a matter II. Significance of Guidance considered, such as a factor based on of law (21 CFR 814.45(a)(3)), or prior to This draft guidance is being issued the number of tests for a rare disease or market launch for cleared devices, as consistent with FDA’s good guidance condition that would likely (based on applicable. FDA invites feedback on the practices regulation (21 CFR 10.115). the prevalence of the condition) be timeframe for phase-in enforcement of The draft guidance, when finalized, will conducted annually in the United QS regulation requirements. represent the Agency’s current thinking States, and if so what the annual Specifically, FDA is considering on oversight of laboratory developed number of tests should be for the whether those LDTs in the highest-risk tests. It does not create or confer any purpose of defining an LDT as an LDT category of devices (described in section rights for or on any person and does not for a rare disease. FDA also seeks D.5.(c) of the draft guidance), which operate to bind FDA or the public. An

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alternative approach may be used if CFR part 803 have been approved under laboratory. This draft guidance is not such approach satisfies the OMB control numbers 0910–0291 and final nor is it in effect at this time. requirements of the applicable statute 0910–0437. DATES: Although you can comment on and regulations. V. Comments any guidance at any time (see 21 CFR III. Electronic Access 10.115(g)(5)), to ensure that the Agency Interested persons may submit either considers your comment on this draft Persons interested in obtaining a copy electronic comments regarding this guidance before it begins work on the of the draft guidance may do so by document to http://www.regulations.gov final version of the guidance, submit downloading an electronic copy from or written comments to the Division of either electronic or written comments the Internet. A search capability for all Dockets Management (see ADDRESSES). It on the draft guidance by February 2, CDRH guidance documents is available is only necessary to send one set of 2015. at http://www.fda.gov/MedicalDevices/ comments. Identify comments with the ADDRESSES: An electronic copy of the DeviceRegulationandGuidance/ docket number found in brackets in the GuidanceDocuments/default.htm. guidance document is available for heading of this document. Received download from the Internet. See the Guidance documents are also available comments may be seen in the Division SUPPLEMENTARY INFORMATION section for at http://www.regulations.gov or the of Dockets Management between 9 a.m. CBER Internet at http://www.fda.gov/ information on electronic access to the and 4 p.m., Monday through Friday, and guidance. Submit written requests for BiologicsBloodVaccines/Guidance will be posted to the docket at http:// ComplianceRegulatoryInformation/ single hard copies of the draft guidance www.regulations.gov. document entitled ‘‘FDA Notification default.htm. Comments will also be accepted at a Persons unable to download an and Medical Device Reporting for public meeting, which will be held prior Laboratory Developed Tests (LDTs)’’ to electronic copy of ‘‘Framework for to finalizing this draft guidance. A 2-day Regulatory Oversight of Laboratory the Office of the Center Director, meeting is tentatively scheduled for Guidance and Policy Development, Developed Tests (LDTs)’’ may send an early January, 2015 and will be email request to CDRH- Center for Devices and Radiological announced separately in the Federal Health (CDRH), Food and Drug [email protected] to receive an Register. electronic copy of the document. Please Administration, 10903 New Hampshire use the document number 1739 to Dated: September 30, 2014. Ave., Bldg. 66, Rm. 5431, Silver Spring, identify the guidance you are Peter Lurie, MD 20993–0002; or to the Office of requesting. Associate Commissioner for Policy and Communication, Outreach and Planning. Development (HFM–40), Center for IV. Paperwork Reduction Act of 1995 [FR Doc. 2014–23596 Filed 9–30–14; 11:15 am] Biologics Evaluation and Research This draft guidance refers to BILLING CODE 4164–01–P (CBER), Food and Drug Administration, previously approved collections of 10903 New Hampshire Ave., Bldg. 71, information found in FDA regulations. Rm. 3128, Silver Spring, MD 20993– These collections of information are DEPARTMENT OF HEALTH AND 0002. Send one self-addressed adhesive subject to review by the Office of HUMAN SERVICES label to assist that office in processing Management and Budget (OMB) under your request. The guidance may also be the Paperwork Reduction Act of 1995 Food and Drug Administration obtained by mail by calling CBER at 1– (44 U.S.C. 3501–3520). The collections 800–835–4709 or 240–402–7800. of information in 21 CFR part 807 [Docket No. FDA–2011–D–0357] Submit electronic comments on the draft guidance to http:// Subpart E have been approved under Food and Drug Administration www.regulations.gov. Submit written OMB control number 0910–0120; the Notification and Medical Device comments to the Division of Dockets collections of information in 21 CFR Reporting for Laboratory Developed Management (HFA–305), Food and Drug part 807 Subpart B and C have been Tests; Draft Guidance for Industry, Administration, 5630 Fishers Lane, Rm. approved under OMB control number Food and Drug Administration Staff, 1061, Rockville, MD 20852. Identify 0910–0625; the collections of and Clinical Laboratories; Availability information in 21 CFR part 601 have comments with the docket number been approved under OMB control AGENCY: Food and Drug Administration, found in brackets in the heading of this number 0910–0338; the collections of HHS. document. information in 21 CFR part 814, ACTION: Notice. FOR FURTHER INFORMATION CONTACT: LDT subparts B and E, have been approved [email protected]; or Katherine under OMB control number 0910–0231; SUMMARY: The Food and Drug Serrano, Center for Devices and the collections of information in 21 CFR Administration (FDA) is announcing the Radiological Health, Food and Drug part 814, subpart H, have been approved availability of the draft guidance Administration, 10903 New Hampshire under OMB control number 0910–0332; entitled ‘‘FDA Notification and Medical Ave., Bldg. 66, Rm. 5646, Silver Spring, the collections of information in 21 CFR Device Reporting for Laboratory MD 20993–0002, 240–402–4217; or part 820 have been approved under Developed Tests (LDTs).’’ This draft Stephen Ripley, Center for Biologics OMB control number 0910–0073; the guidance document is intended to Evaluation and Research, Food and collections of information in 21 CFR describe the process for clinical Drug Administration, 10903 New part 812 have been approved under laboratories to notify FDA of the Hampshire Ave., Bldg. 71, Rm. 7301, OMB control number 0910–0078; the laboratory developed tests (LDTs) they Silver Spring, MD 20993–0002, 240– collections of information in 21 CFR manufacture as well as to describe the 402–7911. part 806 have been approved under Medical Device Reporting (MDR) SUPPLEMENTARY INFORMATION: OMB control number 0910–0359; the requirements for clinical laboratories collections of information in 21 CFR 801 manufacturing LDTs. LDTs are those in I. Background and 21 CFR 809.10 have been approved vitro diagnostic devices that are In 1976, Congress enacted the Medical under OMB control number 0910–0485; intended for clinical use and designed, Device Amendments (MDA) (Public and the collections of information in 21 manufactured, and used within a single Law 94–295), which amended the

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Federal Food, Drug, and Cosmetic Act FDA welcomes comments on all Laboratory Developed Tests (LDTs)’’ (the FD&C Act) to create a aspects of this guidance, as well as on may send an email request to CDRH- comprehensive system for the regulation the following specific issue: FDA notes [email protected] to receive an of medical devices intended for use in that some laboratory networks (i.e., electronic copy of the document. Please humans. At that time, the definition of more than one laboratory under the use the document number 1738 to a device was amended to make explicit control of the same parent entity) offer identify the guidance you are that it encompasses in vitro diagnostic the same test in multiple laboratories requesting. devices (IVDs): ‘‘The term ‘device’ . . . throughout their network. Although IV. Paperwork Reduction Act of 1995 means an instrument, apparatus, devices in this scenario do not meet implement, machine, contrivance, FDA’s definition of an LDT (i.e., they Under the Paperwork Reduction Act implant, in vitro reagent, or other are not designed, manufactured and of 1995 (the PRA) (44 U.S.C. 3501– similar or related article. . . .’’ (section used within a single laboratory), FDA 3520), Federal Agencies must obtain 201(h) of the FD&C Act (21 U.S.C. would like feedback on whether a single approval from the Office of Management 321(h)). The definition of device applies notification from the laboratory network and Budget (OMB) for each collection of equally to IVDs manufactured by for that test is sufficient, provided that information they conduct or sponsor. conventional device manufacturers and the laboratory network indicates in the ‘‘Collection of information’’ is defined those manufactured by laboratories. An notification to FDA that the test is in 44 U.S.C. 3502(3) and 5 CFR IVD, therefore, meets the device offered at multiple sites. Elsewhere in 1320.3(c) and includes Agency requests definition irrespective of where and by this issue of the Federal Register, FDA or requirements that members of the whom it is manufactured. is issuing a notice announcing the public submit reports, keep records, or However, since the implementation of availability of the draft guidance provide information to a third party. the MDA of 1976, FDA has generally entitled ‘‘Framework for Regulatory Section 3506(c)(2)(A) of the PRA (44 exercised enforcement discretion so that Oversight of Laboratory Developed Tests U.S.C. 3506(c)(2)(A)) requires Federal the Agency has generally not enforced (LDTs)’’ that also identifies specific Agencies to provide a 60-day notice in applicable provisions under the FD&C issues for comment. the Federal Register concerning each Act and FDA regulations with respect to Additionally, FDA intends to hold a proposed collection of information LDTs, a subset of IVDs that are intended public webinar in late October 2014 to before submitting the collection to OMB for clinical use and designed, summarize the proposed oversight for approval. To comply with this manufactured, and used within a single framework and answer clarification requirement, FDA is publishing notice laboratory. Given a changing landscape questions from stakeholders. The of the proposed collection of in terms of the volume, technology, and webinar will not require registration and information set forth in this document. business model of IVDs offered as LDTs will be announced at least 1 week in With respect to the following since 1976, in combination with the advance on FDA’s Web site. It will be collection of information, FDA invites increasingly important role of diagnostic recorded and made available on FDA’s comments on the following topics: (1) devices, including LDTs, in critical Web site shortly thereafter. Whether the proposed collection of clinical treatment decisions, the FDA information is necessary for the proper does not believe that generally II. Significance of Guidance performance of FDA’s functions, exercising enforcement discretion with This draft guidance is being issued including whether the information will respect to the regulatory requirements consistent with FDA’s good guidance have practical utility; (2) the accuracy of for these devices remains appropriate. practices regulation (21 CFR 10.115). FDA’s estimate of the burden of the Consistent with the draft guidance The draft guidance, when finalized, will proposed collection of information, entitled ‘‘Framework for Regulatory represent the Agency’s current thinking including the validity of the Oversight of Laboratory Developed Tests on FDA notification and medical device methodology and assumptions used; (3) (LDTs)’’ that is being distributed for reporting requirements for LDTs. It does ways to enhance the quality, utility, and comment contemporaneously with this not create or confer any rights for or on clarity of the information to be document, FDA intends to enforce any person and does not operate to bind collected; and (4) ways to minimize the certain medical device regulatory FDA or the public. An alternative burden of the collection of information requirements for LDTs and device- approach may be used if such approach on respondents, including through the manufacturer requirements for satisfies the requirements of the use of automated collection techniques, laboratories that manufacture, prepare, applicable statute and regulations. when appropriate, and other forms of propagate, compound, assemble, or information technology. process LDTs. FDA intends to collect III. Electronic Access Title: Notification for Laboratory information regarding LDTs currently Persons interested in obtaining a copy Developed Tests (LDTs). being used by laboratories through a of the draft guidance may do so by FDA intends to collect information notification process. In addition, FDA downloading an electronic copy from from laboratories regarding their current intends to enforce the requirements the Internet. A search capability for all LDTs and new LDTs through a under part 803 (21 CFR part 803) for CDRH guidance documents is available notification process. This information reporting safety issues related to LDTs, at http://www.fda.gov/MedicalDevices/ collection is needed to classify LDTs to provide a mechanism for collecting DeviceRegulationandGuidance/ and to prioritize enforcement of information on any known or suspected GuidanceDocuments/default.htm. premarket review requirements for adverse events related to the use of an Guidance documents are also available categories of LDTs based on risk using LDT. FDA believes that this is the at http://www.regulations.gov or on the a public process. Specifically, FDA appropriate regulatory oversight CBER Internet at http://www.fda.gov/ plans to use advisory panels to provide approach to adopt initially in achieving BiologicsBloodVaccines/Guidance recommendations to the Agency on LDT the desired public health goal of ComplianceRegulatoryInformation/ risks, classification and prioritization of assuring that these IVDs used in the default.htm. enforcement of applicable regulatory provision of health care, regardless of Persons unable to download an requirements on certain categories of the manufacturer, provide reasonable electronic copy of ‘‘FDA Notification LDTs, as appropriate. Additionally, the assurance of safety and effectiveness. and Medical Device Reporting for notification information will be made

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available in part to the laboratory their establishment. Laboratory owner/ Data Elements to be Reported 1 community and interested stakeholders operators with LDTs currently being • Laboratory Name to act as a resource for accessing used in their laboratories should begin • Laboratory Contact Email Address information on the LDTs currently being to report this information no later than • Test Name used by laboratories. If these data are 6 months after publication, in final • not collected, FDA and interested Monthly Test Volume form, of the ‘‘Framework for Regulatory • Intended Use stakeholders will not have reliable data Oversight of Laboratory Developed Tests • on the types of LDTs currently used. Clinical Use of Test (LDTs)’’ guidance document referred to • What is measured or detected (i.e. Further, because notification data will in section I. Background. Starting 6 be used to classify LDTs and prioritize analyte, measurand, etc.) months after publication of the final • Disease/Condition for which the enforcement of premarket review version of the ‘‘Framework for requirements based on risk, it will diagnostic device is indicated Regulatory Oversight of Laboratory • benefit laboratories to provide the most Patient Population Developed Tests (LDTs)’’ guidance, accurate information possible to ensure • Does the patient population include that appropriate classification is made. laboratories that intend to offer new pediatric patients? (<21 years old) To facilitate future FDA regulatory LDTs should provide notification prior • Sample Type activity for LDTs, clinical laboratories to offering the LDT for clinical use. It • Test Method should notify FDA of all of the LDTs should be noted that when laboratories • Is the test a modification of an FDA manufactured, prepared, propagated, make a significant change to the cleared/approved test? compounded, assembled, or processed marketed intended use of an LDT for • If the test is a modification of an by their laboratories. To appropriately which they have previously provided FDA cleared/approved test, what notify FDA of all LDTs manufactured at notification, the LDT will be considered modifications were made? an establishment, the owner/operator by the FDA to be a new LDT and, Respondents to this collection of should provide information on the data therefore, a new notification should be information are manufacturers of LDTs. elements identified in the following provided prior to offering that LDT for FDA estimates the burden of this paragraph for each LDT manufactured at clinical use. collection as follows.

TABLE 1—ESTIMATED ANNUAL REPORTING BURDEN FIRST YEAR1

Number of Average burden Activity Number of responses per Total annual per response Total hours respondents respondent responses (in hours)

LDT Notification—Initial notification ...... 650 1 650 1 650 LDT Notification—Subsequent first year notifications ...... 650 16 10,400 0.5 5,200

Total ...... 5,850 1 There are no capital costs or operating and maintenance costs associated with this collection of information.

TABLE 2—ESTIMATED ANNUAL REPORTING BURDEN SUBSEQUENT YEARS 1

Number of Average burden Activity Number of responses per Total annual per response Total hours respondents respondent responses (in hours)

LDT Notification—Subsequent years ...... 650 1 650 0.5 325 1 There are no capital costs or operating and maintenance costs associated with this collection of information.

Upon publication of a final guidance New York State, and therefore, have not are not FDA-approved or cleared, but based on this draft guidance, FDA undergone review. To take into account are currently offered. If we assume that expects approximately 650 the possibility that the number of LDTs genetic tests represent roughly 70 to 80 manufacturers to provide notification and number of labs in New York State percent of all LDTs, this supports our information regarding approximately 17 understate the totals for the United estimate of 11,050 LDTs (total annual LDTs each. The number of respondents States, FDA assumes that the responses in the first year). and total number of responses are based nationwide totals are 10 percent higher FDA estimates an average of 17 LDTs on information provided by New York and, therefore, estimates that there are offered per laboratory based upon the State. Specifically, in July 2014, New approximately 11,000 LDTs ratio of labs offering LDTs to the number York State indicated that it has manufactured in 650 labs. To of LDT submissions received by New reviewed 9,800 submissions from 565 corroborate our estimate of the total York State. We therefore estimate that labs. While these numbers represent the number of responses, i.e., the total there will be 650 respondents best estimates available for the number number of LDTs currently being offered, (manufacturers of LDTs) and 17 of LDTs currently on the market, FDA we looked at National Institutes of responses per respondent (LDT acknowledges that additional LDTs may Health Genetic Test Registry data. In notifications) in the first year. This be offered to patients in the United June 2014, the registry included results in 11,050 total annual responses States that are not currently offered in approximately 7,600 genetic tests that in the first year.

1 Please refer to Appendix A of the draft guidance document for a more detailed discussion of data elements.

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FDA acknowledges that according to heading of this document. Received [email protected], or FDA Advisory the CLIA (Clinical Laboratory comments may be seen in the Division Committee Information Line, 1–800– Improvement Amendments) program at of Dockets Management between 9 a.m. 741–8138 (301–443–0572 in the CMS (August 2014), there are and 4 p.m., Monday through Friday, and Washington, DC area). A notice in the approximately 11,000 CLIA-certified will be posted to the docket at http:// Federal Register about last minute high complexity labs that have the www.regulations.gov. modifications that impact a previously appropriate certifications to Comments will also be accepted at a announced advisory committee meeting manufacture LDTs. However, FDA is not public meeting, which will be held prior cannot always be published quickly aware of information describing the to finalizing this draft guidance. A 2-day enough to provide timely notice. exact number of certified high meeting is tentatively scheduled for Therefore, you should always check the complexity laboratories currently early January 2015 and will be Agency’s Web site at http://www.fda. offering LDTs. Therefore, FDA has announced separately in the Federal gov/AdvisoryCommittees/default.htm relied upon the information provided by Register. and scroll down to the appropriate New York State when creating these Dated: September 29, 2014. advisory committee meeting link, or call estimates. FDA acknowledges that, Peter Lurie, the advisory committee information line without firm data on the number of labs to learn about possible modifications offering LDTs or the number of tests Associate Commissioner for Policy and Planning. before coming to the meeting. offered per lab, the estimate of the [FR Doc. 2014–23586 Filed 9–30–14; 11:15 am] Agenda: The committee will discuss number of respondents is necessarily supplemental new drug application BILLING CODE 4164–01–P uncertain. (sNDA) 203188, ivacaftor oral tablets, After the initial notification, submitted by Vertex Pharmaceuticals respondents will only notify FDA of DEPARTMENT OF HEALTH AND Inc., for the treatment of cystic fibrosis new tests or modifications that affect HUMAN SERVICES in patients with an R117H mutation in performance or intended use. We the cystic fibrosis transmembrane estimate the number of tests in Food and Drug Administration conductance regulator gene. subsequent years to be approximately 5 FDA intends to make background percent of the estimated number of [Docket No. FDA–2014–N–0001] material available to the public no later initial notifications. FDA bases its estimate of the average Pulmonary-Allergy Drugs Advisory than 2 business days before the meeting. burden per response on Agency creation Committee; Notice of Meeting If FDA is unable to post the background material on its Web site prior to the of a mock notification. We would expect AGENCY: Food and Drug Administration, labs to take up to an hour for their first meeting, the background material will HHS. be made publicly available at the notification and only 30 minutes for ACTION: Notice. subsequent notifications, due to location of the advisory committee meeting, and the background material familiarity with the system. This notice announces a forthcoming will be posted on FDA’s Web site after Therefore, we estimate the total meeting of a public advisory committee the meeting. Background material is reporting burden to respondents to be of the Food and Drug Administration available at http://www.fda.gov/ 5,850 hours for the first year and 325 (FDA). The meeting will be open to the AdvisoryCommittees/Calendar/ hours for subsequent years. public. This draft guidance also refers to Name of Committee: Pulmonary- default.htm. Scroll down to the previously approved collections of Allergy Drugs Advisory Committee. appropriate advisory committee meeting information found in FDA regulations. General Function of the Committee: link. These collections of information are To provide advice and Procedure: Interested persons may subject to review by the Office of recommendations to the Agency on present data, information, or views, Management and Budget (OMB) under FDA’s regulatory issues. orally or in writing, on issues pending the Paperwork Reduction Act of 1995 Date and Time: The meeting will be before the committee. Written (44 U.S.C. 3501–3520). The collections held on October 21, 2014, from 8 a.m. submissions may be made to the contact of information in 21 CFR part 803 to 4 p.m. person on or before October 14, 2014. (medical device reporting) have been Location: FDA White Oak Campus, Oral presentations from the public will approved under OMB control numbers Building 31, the Great Room, White Oak be scheduled between approximately 1 0910–0291 and 0910–0437; the Conference Center (Rm. 1503), 10903 p.m. and 2 p.m. Those individuals collections of information in 21 CFR New Hampshire Ave., Silver Spring, MD interested in making formal oral part 806 (reports of corrections and 20993–0002. Information regarding presentations should notify the contact removals) have been approved under special accommodations due to a person and submit a brief statement of OMB control number 0910–0359; and disability, visitor parking, and the general nature of the evidence or the collections of information in 21 CFR transportation may be accessed at: arguments they wish to present, the part 807, subparts B and C (registration http://www.fda.gov/Advisory names and addresses of proposed and listing) have been approved under Committees/default.htm; under the participants, and an indication of the OMB control number 0910–0625. heading ‘‘Resources for You,’’ click on approximate time requested to make ‘‘Public Meetings at the FDA White Oak their presentation on or before October V. Comments Campus.’’ Please note that visitors to the 6, 2014. Time allotted for each Interested persons may submit either White Oak Campus must enter through presentation may be limited. If the electronic comments regarding this Building 1. number of registrants requesting to document to http://www.regulations.gov Contact Person: Cindy Hong, Center speak is greater than can be reasonably or written comments to the Division of for Drug Evaluation and Research, Food accommodated during the scheduled Dockets Management (see ADDRESSES). It and Drug Administration, 10903 New open public hearing session, FDA may is only necessary to send one set of Hampshire Ave., Bldg. 31, Rm. 2417, conduct a lottery to determine the comments. Identify comments with the Silver Spring, MD 20993–0002, 301– speakers for the scheduled open public docket number found in brackets in the 796–9001, FAX: 301–847–8533, email: hearing session. The contact person will

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notify interested persons regarding their accommodations due to a disability, Oral presentations from the public will request to speak by October 7, 2014. visitor parking, and transportation may be scheduled between approximately 2 Persons attending FDA’s advisory be accessed at: http://www.fda.gov/ p.m. and 3:30 p.m. on November 24, committee meetings are advised that the AdvisoryCommittees/default.htm; under 2014. Those individuals interested in Agency is not responsible for providing the heading ‘‘Resources for You,’’ click making formal oral presentations should access to electrical outlets. on ‘‘Public Meetings at the FDA White notify the contact person and submit a FDA welcomes the attendance of the Oak Campus.’’ Please note that visitors brief statement of the general nature of public at its advisory committee to the White Oak Campus must enter the evidence or arguments they wish to meetings and will make every effort to through Building 1. present, the names and addresses of accommodate persons with physical Contact Person: Stephanie L. proposed participants, and an disabilities or special needs. If you Begansky, Center for Drug Evaluation indication of the approximate time require special accommodations due to and Research, Food and Drug requested to make their presentation on a disability, please contact Cindy Hong Administration, 10903 New Hampshire or before October 30, 2014. Time at least 7 days in advance of the Ave., Bldg. 31, Rm. 2417, Silver Spring, allotted for each presentation may be meeting. MD 20993–0002, 301–796–9001, FAX: limited. If the number of registrants FDA is committed to the orderly 301–847–8533, email: AADPAC@ requesting to speak is greater than can conduct of its advisory committee fda.hhs.gov, or FDA Advisory be reasonably accommodated during the meetings. Please visit our Web site at Committee Information Line, 1–800– scheduled open public hearing session, http://www.fda.gov/Advisory 741–8138 (301–443–0572 in the FDA may conduct a lottery to determine Committees/AboutAdvisoryCommittees/ Washington, DC area). A notice in the the speakers for the scheduled open ucm111462.htm for procedures on Federal Register about last minute public hearing session. The contact public conduct during advisory modifications that impact a previously person will notify interested persons committee meetings. announced advisory committee meeting regarding their request to speak by Notice of this meeting is given under cannot always be published quickly October 31, 2014. the Federal Advisory Committee Act (5 enough to provide timely notice. Persons attending FDA’s advisory U.S.C. app. 2). Therefore, you should always check the committee meetings are advised that the Dated: September 26, 2014. Agency’s Web site at http://www.fda. Agency is not responsible for providing gov/AdvisoryCommittees/default.htm Jill Hartzler Warner, access to electrical outlets. and scroll down to the appropriate FDA welcomes the attendance of the Associate Commissioner for Special Medical advisory committee meeting link, or call Programs. public at its advisory committee the advisory committee information line meetings and will make every effort to [FR Doc. 2014–23548 Filed 10–2–14; 8:45 am] to learn about possible modifications BILLING CODE 4164–01–P accommodate persons with physical before coming to the meeting. disabilities or special needs. If you Agenda: The committee will discuss require special accommodations due to the risk of serious neurologic adverse a disability, please contact Stephanie L. DEPARTMENT OF HEALTH AND reactions associated with epidural Begansky at least 7 days in advance of HUMAN SERVICES steroid injections (ESI) administered to the meeting. reduce inflammation for pain Food and Drug Administration FDA is committed to the orderly management. The committee will also conduct of its advisory committee [Docket No. FDA 2014–N–0001] consider the efficacy of ESI and the meetings. Please visit our Web site at overall risk benefit balance of injecting http://www.fda.gov/Advisory Anesthetic and Analgesic Drug steroids in the epidural space to treat Products Advisory Committee; Notice pain. These considerations will assist Committees/AboutAdvisoryCommittees/ of Meeting the Agency in our discussions of ucm111462.htm for procedures on possible regulatory options, including public conduct during advisory AGENCY: Food and Drug Administration, committee meetings. HHS. but not limited to changes to the product labeling. Notice of this meeting is given under ACTION: Notice. FDA intends to make background the Federal Advisory Committee Act (5 U.S.C. app. 2). This notice announces a forthcoming material available to the public no later meeting of a public advisory committee than 2 business days before the meeting. Dated: September 26, 2014. of the Food and Drug Administration If FDA is unable to post the background Jill Hartzler Warner, (FDA). The meeting will be open to the material on its Web site prior to the Associate Commissioner for Special Medical public. meeting, the background material will Programs. Name of Committee: Anesthetic and be made publicly available at the [FR Doc. 2014–23549 Filed 10–2–14; 8:45 am] Analgesic Drug Products Advisory location of the advisory committee BILLING CODE 4164–01–P Committee. meeting, and the background material General Function of the Committee: will be posted on FDA’s Web site after To provide advice and the meeting. Background material is DEPARTMENT OF HOMELAND recommendations to the Agency on available at http://www.fda.gov/ SECURITY FDA’s regulatory issues. AdvisoryCommittees/Calendar/ Date and Time: The meeting will be default.htm. Scroll down to the Coast Guard held on November 24, 2014, from 8 a.m. appropriate advisory committee meeting to 5 p.m. and November 25, 2014, from link. [USCG–2014–0414] 8 a.m. to 12 noon. Procedure: Interested persons may Location: FDA White Oak Campus, present data, information, or views, Cook Inlet Regional Citizens’ Advisory 10903 New Hampshire Ave., Bldg. 31 orally or in writing, on issues pending Council (CIRCAC) Charter Renewal Conference Center, the Great Room (Rm. before the committee. Written AGENCY: Coast Guard, DHS. 1503), Silver Spring, MD 20993–0002. submissions may be made to the contact ACTION: Notice of recertification. Information regarding special person on or before November 7, 2014.

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SUMMARY: The purpose of this notice is years (triennially). For each of the two DEPARTMENT OF HOUSING AND to inform the public that the Coast years between the triennial application URBAN DEVELOPMENT Guard has recertified the Cook Inlet procedure, applicants submit a letter [Docket No. FR–5750–N–40] Regional Citizens’ Advisory Council requesting recertification that includes a (CIRCAC) as an alternative voluntary description of any substantive changes Federal Property Suitable as Facilities advisory group for Cook Inlet, Alaska. to the information provided at the To Assist the Homeless This certification allows the CIRCAC to previous triennial recertification. monitor the activities of terminal Further, public comment is not solicited AGENCY: Office of the Assistant facilities and crude oil tankers under the prior to recertification during Secretary for Community Planning and Cook Inlet Program established by streamlined years, only during the Development, HUD. statute. triennial comprehensive review. ACTION: Notice. DATES: This recertification is effective SUMMARY: This Notice identifies for the period from September 1st, 2014 Discussion of Comments unutilized, underutilized, excess, and through August 31, 2015. On May 23, 2014 the USCG published surplus Federal property reviewed by FOR FURTHER INFORMATION CONTACT: LT a Notice of Availability; request for HUD for suitability for use to assist the Thomas Pauser Seventeenth Coast comments for recertification of Cook homeless. Guard District (dpi); Telephone Inlet Regional Citizens’ Advisory FOR FURTHER INFORMATION CONTACT: (907)463–2812, email thomas.e.pauser@ Council in the Federal Register (76 FR uscg.mil. Juanita Perry, Department of Housing 1187). We received 54 comments from and Urban Development, 451 Seventh SUPPLEMENTARY INFORMATION: the public commenting on the proposed Street SW., Room 7266, Washington, DC Background and Purpose action. No public meeting was 20410; telephone (202) 402–3970; TTY As part of the Oil Pollution Act of requested, and none was held. All 54 number for the hearing- and speech- 1990, Congress passed the Oil Terminal comments were positive and in support impaired (202) 708–2565 (these and Oil Tanker Environmental of recertification. These letters in telephone numbers are not toll-free), or Oversight and Monitoring Act of 1990 support of the recertification call the toll-free Title V information line (the Act), 33 U.S.C. 2732, to foster a consistently cited CIRCAC’s broad at 800–927–7588. long-term partnership among industry, representation of the respective SUPPLEMENTARY INFORMATION: In government, and local communities in community’s interests, appropriate accordance with 24 CFR part 581 and overseeing compliance with actions to keep the public informed, section 501 of the Stewart B. McKinney environmental concerns in the improvements to both spill response Homeless Assistance Act (42 U.S.C. operation of crude oil terminals and oil preparation and spill prevention, and 11411), as amended, HUD is publishing tankers. oil spill industry monitoring efforts that this Notice to identify Federal buildings On October 18, 1991, the President combat complacency—as intended by and other real property that HUD has delegated his authority under 33 U.S.C the Act. The information provided with reviewed for suitability for use to assist 2732 (o) to the Secretary of the 2014 application package, follow up the homeless. The properties were Transportation in Executive Order consultation with CIRCAC and public reviewed using information provided to 12777, section 8(g) (see 56 FR 54757; support through positive comments HUD by Federal landholding agencies October 22, 1991) for purposes of displayed ample representation of the regarding unutilized and underutilized buildings and real property controlled certifying advisory councils, or groups, communities and interests of Cook Inlet by such agencies or by GSA regarding subject to the Act. On March 3, 1992, and promotion of environmentally safe its inventory of excess or surplus the Secretary redelegated that authority marine transportation and oil facility to the Commandant of the USCG (see 57 Federal property. This Notice is also operations. FR 8582; March 11, 1992). The published in order to comply with the Commandant redelegated that authority Recertification December 12, 1988 Court Order in to the Chief, Office of Marine Safety, National Coalition for the Homeless v. Security and Environmental Protection By letter dated August 27, 2014, the Veterans Administration, No. 88–2503– (G–M) on March 19, 1992 (letter #5402). Commander, Seventeenth Coast Guard OG (D.D.C.). On July 7, 1993, the USCG published certified that the CIRCAC qualifies as an Properties reviewed are listed in this a policy statement, 58 FR 36504, to alternative voluntary advisory group Notice according to the following clarify the factors that shall be under 33 U.S.C. 2732(o). This categories: Suitable/available, suitable/ considered in making the determination recertification terminates on August 31, unavailable, and suitable/to be excess, as to whether advisory councils, or 2015. and unsuitable. The properties listed in the three suitable categories have been groups, should be certified in Dated: August 27, 2014. accordance with the Act. reviewed by the landholding agencies, The Assistant Commandant for Daniel B. Abel, and each agency has transmitted to Marine Safety and Environmental Rear Admiral, U.S. Coast Guard Commander, HUD: (1) Its intention to make the Protection (CG–5), redelegated Seventeenth Coast Guard District. property available for use to assist the recertification authority for advisory [FR Doc. 2014–23658 Filed 10–2–14; 8:45 am] homeless, (2) its intention to declare the councils, or groups, to the Commander, BILLING CODE 9110–04–P property excess to the agency’s needs, or Seventeenth Coast Guard District on (3) a statement of the reasons that the February 26, 1999 (letter #16450). property cannot be declared excess or On September 16, 2002, the USCG made available for use as facilities to published a policy statement, 67 FR assist the homeless. 58440, that changed the recertification Properties listed as suitable/available procedures such that applicants are will be available exclusively for required to provide the USCG with homeless use for a period of 60 days comprehensive information every three from the date of this Notice. Where

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property is described as for ‘‘off-site use Turner, Army Corps of Engineers, Real Status: Unutilized only’’ recipients of the property will be Estate, HQUSACE/CEMP–CR, 441 G Comments: Off-site removal; removal may required to relocate the building to their Street NW., Washington, DC 20314; cause bldg. to collapse; 57+yrs. old; wood own site at their own expense. (202) 761–5222; Energy: Mr. David structure; holds human waste; contact Agriculture for more info. Homeless assistance providers Steinau, Department of Energy, Office of interested in any such property should Property Management, 1000 Cross Creek CG Storage - CRSCKCGTI/RIO Grande Nat’l Forest send a written expression of interest to Independence Ave. SW., Washington, 6.2 Miles SW on NFSR 20 from Intersection HHS, addressed to Theresa Ritta, Ms. DC 20585 (202) 287–1503; GSA: Mr. W/Hwy 160 Theresa M. Ritta, Chief Real Property Flavio Peres, General Services South Fork CO 81154 Branch, the Department of Health and Administration, Office of Real Property Landholding Agency: Agriculture Human Services, Room 5B–17, Utilization and Disposal, 1800 F Street Property Number: 15201430025 Parklawn Building, 5600 Fishers Lane, NW., Room 7040 Washington, DC Status: Unutilized Rockville, MD 20857, (301) 443–6672 20405, (202) 501–0084; Interior: Mr. Comments: Off-site removal; removal may (This is not a toll-free number.) HHS Michael Wright, Acquisition & Property cause bldg. to collapse; 54+yrs. old; wood will mail to the interested provider an structure; holds human waste; habitation Management, Department of the longer than 14 days prohibited; contact application packet, which will include Interior, 3960 N. 56th Ave. #104, Agriculture for more Info. instructions for completing the Hollywood, FL. 33021; (443) 223–4639; Lower Beaver CG Toilet 3 application. In order to maximize the Navy: Mr. Steve Matteo, Department of LBEAVCGT3/Rio Grande Nat’l Forest opportunity to utilize a suitable the Navy, Asset Management Division, 3 Miles SW on NFSR 20 from Intersection w/ property, providers should submit their Naval Facilities Engineering Command, Hwy 160 written expressions of interest as soon Washington Navy Yard, 1330 Patterson South Fork CO 81154 as possible. For complete details Ave. SW., Suite 1000, Washington, DC Landholding Agency: Agriculture concerning the processing of 20374; (202)685–9426 (These are not Property Number: 15201430026 applications, the reader is encouraged to toll-free numbers). Status: Unutilized refer to the interim rule governing this Comments: Off-site removal; 53+yrs. old; program, 24 CFR part 581. Dated: September 25, 2014. wood structure; human waste; habitation For properties listed as suitable/to be Brian P. Fitzmaurice, beyond 14 days prohibited; contact excess, that property may, if Director, Division of Community Assistance, Agriculture for more info. subsequently accepted as excess by Office of Special Needs Assistance Programs. Bristol View GS Pit Toilet # GSA, be made available for use by the 1103 Rio Grande Nat’l Forest TITLE V, FEDERAL SURPLUS PROPERTY 3.5 Miles Won NFSR 520 from intersection homeless in accordance with applicable PROGRAM Federal Register REPORT FOR w/Hwy 149 law, subject to screening for other 10/03/2014 Creede CO 81130 Federal use. At the appropriate time, Arkansas Landholding Agency: Agriculture HUD will publish the property in a Tract 12–113- Heibert Bernard House Property Number: 15201430027 Notice showing it as either suitable/ 102 Groinger Dr. Status: Unutilized available or suitable/unavailable. Hot Springs AR 71901 Comments: Off-site removal; 79+ years old; For properties listed as suitable/ Landholding Agency: Interior wood structure; site has restricted access; unavailable, the landholding agency has Property Number: 61201410004 contact Agriculture for more information. decided that the property cannot be Status: Excess Lower Beaver CG Toilet 2 declared excess or made available for Directions: CORRECTION: This property was #LBEAVCGT2 Rio Grande Nat’l Forest use to assist the homeless, and the published in the Sept. 5 FR as suitable and 3 Miles SW on NFSR 20 from intersection w/ property will not be available. available; however, HUD was notified that Hwy 160 Properties listed as unsuitable will this property met the initial 60 day holding South Fork CO 81154 not be made available for any other period and is now in the process of being Landholding Agency: Agriculture Property Number: 15201430028 purpose for 20 days from the date of this demolished. Comments: CORRECTION: This property is Status: Unutilized Notice. Homeless assistance providers no longer available. Comments: Off-site removal; 53+ years old; interested in a review by HUD of the wood structure; human waste; habitation determination of unsuitability should Suitable/Available Properties beyond 14 days prohibited; contact call the toll free information line at 1– Building Agriculture for more information. 800–927–7588 for detailed instructions Colorado Lobo Overlook Toilet or write a letter to Ann Marie Oliva at #LBOVLKT1/Rio Grande Nat’l Forest the address listed at the beginning of Tucker Ponds Picnic Area Toilet, TKPDPATI Lobo Overlook 3 Miles Northerly of NFSR TKPDPATI/Rio Grande Nat’l Park this Notice. Included in the request for 402 from intersection w/Hwy 160 2.3 miles S on NFSR 390 from Intersection South Fork CO 81154 review should be the property address w/Hwy 160 (including zip code), the date of Landholding Agency: Agriculture South Fork CO 81154 Property Number: 15201430029 publication in the Federal Register, the Landholding Agency: Agriculture Status: Unutilized landholding agency, and the property Property Number: 15201430023 Comments: Off-site removal; 50+ years old; number. Status: Unutilized wood structure; human waste; habitation For more information regarding Comments: Off-site removal; removal may beyond 14 days prohibited; contact particular properties identified in this cause bldg. to collapse; 52+ yrs. old; wood Agriculture for more information. Notice (i.e., acreage, floor plan, existing structure; human waste; habilitation longer Michigan sanitary facilities, exact street address), than 14 days prohibited; contact Agriculture for more info. providers should contact the Sleeping Bear Dunes National appropriate landholding agencies at the Rio Grande National Forest Rd Lakeshore-Carmichael House Canyon Picnic Area/Boat Ramp Toilet 5001 6234 S. Dune Highway following addresses: Agriculture: Ms. 5.2 Miles West on NFSR 520 from Empire MI 49630 Debra Kerr, Department of Agriculture, Intersection w/Hwy 160 Landholding Agency: GSA Reporters Building, 300 7th Street SW., Creede CO 81130 Property Number: 54201430013 Room 300, Washington, DC 20024, Landholding Agency: Agriculture Status: Excess (202)- 720–8873; COE: Ms. Brenda John- Property Number: 15201430024 GSA Number: 1–I–MI–0702–AB

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Comments: Off-site removal only; 2,253 sq.; Comments: Public access denied & no directed to use FMRs as calculated 100+yrs.-old; average condition; wood alternative w/out compromising Nat’l Sec. under Section 8 of the act. Currently the structure type; lead-based paint; contact Reasons: Secured Area programs operating under Section 8 of GSA for more information. Building 856 the act are the Housing Choice Voucher, Pennsylvania LLNL Site 300, 4 mils SW of Interstate 580 the Moderate Rehabilitation, and the on Corral Hollow Rd. Tract 01–116, Ranger Residence Tracy CA 95376 project-based voucher programs. 3440 National Pike (US Route 40) Landholding Agency: Energy Additionally, based on Section 210 of Farmington PA 15437 Property Number: 41201430012 Division L, Title II of the Consolidated Landholding Agency: Interior Status: Excess Appropriations Act, 2014, Public Property Number: 61201430002 Comments: Public access denied & no Housing Authorities administering Status: Excess alternative w/out compromising Nat’l Sec. Public Housing must use these FMRs in Comments: Off-site removal; 1,740 sq.; Reasons: Secured Area 62+yrs.old; extensive deterioration; animal calculating Flat Rents for public Building 443 infestation; structural warping; lead-based housing. Today’s notice provides final LLNL Site 200, On the SE quadrant off of paint; asbestos; accessible during bus. hrs.; FY 2015 FMRs for all areas that reflect South Inner Loop contact Interior for more info. the estimated 40th and 50th percentile Livermore CA 94550 rent levels trended to April 1, 2015. The Texas Landholding Agency: Energy FY 2015 FMRs are based on 5-year, Building Camper Service Property Number: 41201430013 Status: Excess 2008–2012 standard quality rents Restroom collected by the American Community 1901 Skyview Dr. Comments: Public access denied & no Wylie TX 75098 alternative w/out compromising Nat’l Sec. Survey (ACS). These 5-year rents are Landholding Agency: COE Reasons: Secured Area updated by one-year recent-mover 2012 Property Number: 31201430011 Building 60014; San Clemente Island ACS rents. HUD uses the Consumer Status: Excess Naval Base Coronado; P.O. Box 357040 Price Index (CPI) rent and utility Comments: Off-site removal; 38+years old; San Diego CA 92135–7040 indexes to further update the data from 576 sq.; located in a controlled area; Landholding Agency: Navy 2012 to the end of 2013. HUD continues removal may be difficult; contact COE for Property Number: 77201430016 to use ACS data in different ways more information. Status: Unutilized according to the statistical reliability of Comments: Property located within an Land Airport runway clear zone. rent estimates for areas of different population sizes and counts of rental California Reasons: Within airport runway clear zone units. San Lorenzo Lot Pennsylvania The final FY 2015 FMRs in this notice Between 15770 and 15794 Connolly Avenue Former Antenna Test Site have no methodology changes. HUD San Lorenzo CA 94580 Philadelphia Navy Yard Annex continues to use the Puerto Rico Landholding Agency: GSA Philadelphia PA Property Number: 54201430014 Community Survey (PRCS) data (the Landholding Agency: Navy PRCS is a part of the ACS program) and Status: Excess Property Number: 77201430015 GSA Number: 9–W–CA–1703–AA Status: Unutilized the Consumer Price Index data Directions: Land holding agency; FAA; Directions: Includes bldg. 1091 & approx. calculated specifically for Puerto Rico, Disposal; GSA. 0.595 acres parcel as it first did for the FY 2014 FMRs. Comments: Approximately 0.116 acres; Comments: Public access denied and no HUD also continues to adjust the FMRs contact GSA for more information. alters. W/out compromising nat’l sec. for Puerto Rico based on validated Reasons: Secured Area Unsuitable Properties information related to utility rates, [FR Doc. 2014–23275 Filed 10–2–14; 8:45 am] which have not shown up in the gross Building BILLING CODE 4210–67–P rent or CPI data. The trend factor, California applied to all FMR areas, is the average Building 326 annual change in national gross rents LLNL Site 200, On the SW quadrant off of DEPARTMENT OF HOUSING AND between 2007 and 2012. Second St. URBAN DEVELOPMENT The final FY 2015 FMR areas use the Livermore CA 94550 Office of Management and Budget Landholding Agency: Energy [Docket No. FR–5807–N–03] (OMB) metropolitan area definitions as Property Number: 41201430009 updated through December 1, 2009 and Final Fair Market Rents for the Housing Status: Excess include HUD modifications that were Comments: Public access denied & no Choice Voucher Program and first used in the determination of FY alternative w/out compromising Nat’l Sec. Moderate Rehabilitation Single Room 2006 FMR areas. The February 28, 2013 Reasons: Secured Area Occupancy Program Fiscal Year 2015 Building 444 update to the OMB metropolitan area LLNL Site 200, On the SE quadrant off of AGENCY: Office of the Assistant definitions are not been incorporated in South Inner Loop Secretary for Policy Development and the FY 2015 FMRs process due to the Livermore CA 94550 Research, HUD. timing of the release and the availability Landholding Agency: Energy ACTION: Notice of Final Fiscal Year (FY) of ACS data. HUD will work toward Property Number: 41201430010 2015 Fair Market Rents (FMRs). incorporating these new area definitions Status: Excess into the Proposed FY 2016 FMRs. The Comments: Public access denied & no SUMMARY: Section 8(c)(1) of the United Department hopes to provide more alternative w/out compromising Nat’l Sec. States Housing Act of 1937 (USHA) implementation details in an Reasons: Secured Area requires the Secretary to publish FMRs anticipated publication in January 2015. Building 292 periodically, but not less than annually, The January 2015 notice will also LLN Site 200, On the NW quadrant off of Avenue B adjusted to be effective on October 1 of discuss and solicit comments on several Livermore CA 94550 each year. This notice publishes the topics related to the calculation of Landholding Agency: Energy final FY 2015 FMRs for programs FMRs, including the implementation of Property Number: 41201430011 operating under Section 8 of the United the February 28, 2013 OMB Status: Excess States Housing Act of 1937 (The Act) or Metropolitan Area Definitions and

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possible measures the Department is impairments may access this number require it to establish 50th percentile considering that would reduce the through TTY by calling the toll-free FMRs for certain areas. concentration of Section 8 voucher Federal Relay Service at 800–877–8339. II. Procedures for the Development of tenants. For example, HUD is evaluating (Other than the HUD USER information FMRs alternatives to the current 50th line and TDD numbers, telephone percentile FMR program whose purpose numbers are not toll-free.) Section 8(c)(1) of the USHA requires was to mitigate excessive geographic the Secretary of HUD to publish FMRs Electronic Data Availability: This periodically, but not less frequently concentration of voucher tenants. HUD Federal Register notice is available will solicit comments to determine than annually. Section 8(c)(1) states, in electronically from the HUD User page part, as follows: interest in a program that is based on at http://www.huduser.org/datasets/ different measures for determining how fmr.html. Federal Register notices also Proposed fair market rentals for an area many and which areas would receive are available electronically from http:// shall be published in the Federal Register special FMRs to encourage with reasonable time for public comment and www.gpoaccess.gov/fr/index.html, the shall become effective upon the date of deconcentration, as well as on U.S. Government Printing Office Web alternative FMR-based tools for publication in final form in the Federal site. Complete documentation of the Register. Each fair market rental in effect promoting deconcentration such as methodology and data used to compute under this subsection shall be adjusted to be Small Area FMRs estimated at the ZIP each area’s final FY 2015 FMRs is effective on October 1 of each year to reflect code level. available at http://www.huduser.org/ changes, based on the most recent available The final FY 2015 notice updates the portal/datasets/fmr/fmrs/ data trended so the rentals will be current for FMRs for Bennington, Windham, and docsys.html&data=fmr15. Final FY 2015 the year to which they apply, of rents for existing or newly constructed rental dwelling Windsor counties in Vermont to FMRs are available in a variety of incorporate the results of surveys units, as the case may be, of various sizes and electronic formats at http:// types in the market area suitable for received after publication of the www.huduser.org/portal/datasets/ proposed FY 2015 FMRs. These surveys occupancy by persons assisted under this fmr.html. FMRs may be accessed in PDF section. result in increases for all three format as well as in Microsoft Excel. A HUD’s regulations at 24 CFR part 888 nonmetropolitan counties. new HUD User page has been developed DATES: Effective Date: The FMRs provide that HUD will develop for Small Area FMRs and those based on proposed FMRs, publish them for public published in this notice are effective on final FY 2015 Metropolitan Area Rents October 1, 2014. comment, provide a public comment and historical versions of this data will period of at least 30 days, analyze the FOR FURTHER INFORMATION CONTACT: For be on this site, with a link from the FMR comments, and publish final FMRs. (See technical information on the page of HUD User http:// 24 CFR 888.115.) For FY 2015 FMRs, methodology used to develop FMRs or www.huduser.org/portal/datasets/ HUD has considered all comments a listing of all FMRs, please call the fmr.html. Please note that these Small submitted in response to its August 15, HUD USER information line at 800– Area FMRs are for reference only, 2014 (78 FR 47339) proposed FY 2015 245–2691 or access the information on except where they are used by public FMRs but its responses are posted on its the HUD USER Web site http:// housing authorities (PHAs) participating Web site because of the time required to www.huduser.org/portal/datasets/ in the Small Area FMR demonstration. publish this notice. fmr.html. FMRs are shown at the 40th With approval from the Housing In addition, HUD’s regulations at 24 or 50th percentile in Schedule B. For Voucher Management Division of the CFR 888.113 set out procedures for HUD informational purposes, 40th percentile Office of Public and Indian Housing to assess whether areas are eligible for recent-mover rents for the areas with (PIH) these Small Area FMRs may be FMRs at the 50th percentile. Minimally 50th percentile FMRs will be provided used in the process of determining qualified areas 1 are reviewed each year in the HUD FY 2015 FMR exception payment standards. unless not eligible to be reviewed. Areas documentation system at http:// SUPPLEMENTARY INFORMATION: that currently have 50th percentile www.huduser.org/portal/datasets/fmr/ FMRs are evaluated for progress in fmrs/docsys.html&data=fmr15 and 50th I. Background voucher tenant concentration after three percentile rents for all FMR areas will years in the program. Continued be published at http:// Section 8 of the USHA (42 U.S.C. eligibility is determined using HUD www.huduser.org/portal/datasets/ 1437f) authorizes housing assistance to administrative data that show levels of 50per.html after publication of final FY aid lower-income families in renting voucher tenant concentration. The 2015 FMRs. safe and decent housing. Housing levels of voucher tenant concentration Questions related to use of FMRs or assistance payments are limited by must be above 25 percent and show a voucher payment standards should be FMRs established by HUD for different decrease in concentration since the last directed to the respective local HUD geographic areas. In the HCV program, evaluation. At least 85 percent of the program staff. For flat rent questions, the FMR is the basis for determining the voucher units in the area must be please contact Todd Thomas, Acting ‘‘payment standard amount’’ used to reported for a determination on the Director of the Public Housing calculate the maximum monthly Management and Occupancy Division of subsidy for an assisted family (see 24 1 As defined in 24 CFR 888.113(c), a minimally the Public Housing Office at 202–708– CFR 982.503). In general, the FMR for qualified area is an area with at least 100 Census 5849. Questions on how to conduct an area is the amount that would be tracts where 70 percent or fewer of the Census tracts FMR surveys or concerning further needed to pay the gross rent (shelter with at least 10 two-bedroom rental units are Census tracts in which at least 30 percent of the two methodological explanations may be rent plus utilities) of privately owned, bedroom rental units have gross rents at or below addressed to Marie L. Lihn or Peter B. decent, and safe rental housing of a the two bedroom FMR set at the 40th percentile Kahn, Economic and Market Analysis modest (non-luxury) nature with rent. This continues to be evaluated with 2000 Division, Office of Economic Affairs, suitable amenities. In addition, all rents Decennial Census information. Although the 5-year ACS tract level data is available, HUD plans to Office of Policy Development and subsidized under the HCV program implement new 50th percentile areas in Research, telephone 202–402–2409. must meet reasonable rent standards. conjunction with the implementation of new OMB Persons with hearing or speech HUD’s regulations at 24 CFR 888.113 area definitions.

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status of a 50th percentile area. Areas Only four of the 13 areas will continue will once again become 50th percentile are not qualified for review if they are as 50th percentile FMR areas; those nine FMR areas. within the three-year period as a 50th- areas that do not continue as 50th In summary, there will be 16 50th- percentile area or have lost 50th- percentile areas did not show percentile FMR areas in FY 2015. In percentile status for failure to de- measurable deconcentration and will Schedule B, where all FMRs are listed concentrate within the last three years. not be evaluated for an additional three- by state and area, an asterisk designates In FY 2014 there were 19 areas using year period, as required by the the 50th percentile FMR areas. The 50th-percentile FMRs. Of these 19 areas, regulation. An additional six areas that following table lists the FMR areas along 13 areas were eligible for evaluation. failed to deconcentrate as of FY 2012 with the year of their next evaluation.

FY 2015 50TH-PERCENTILE FMR AREAS AND YEAR OF NEXT REEVALUATION

Albuquerque, NM MSA ...... 2018 Baltimore-Towson, MD HUD Metro FMR Area ...... 2016 Chicago-Joliet-Naperville, IL HUD Metro FMR Area ...... 2018 Denver-Aurora-Broomfield, CO MSA ...... 2018 Fort Lauderdale, FL HUD Metro FMR Area ...... 2016 Hartford-West Hartford-East Hartford, CT HUD Metro 2018 FMR Area. Honolulu, HI MSA ...... 2018 Kansas City, MO–KS HUD Metro FMR Area ...... 2018 Milwaukee-Waukesha-West Allis, WI MSA ...... 2018 New Haven-Meriden, CT HUD Metro FMR Area ...... 2016 Philadelphia-Camden-Wilmington, PA–NJ–DE–MD MSA 2016 Richmond, VA HUD Metro FMR Area ...... 2016 Riverside-San Bernardino-Ontario, CA MSA ...... 2018 Tacoma, WA HUD Metro FMR Area ...... 2018 Virginia Beach-Norfolk-Newport News, VA–NC MSA ...... 2018 West Palm Beach-Boca Raton, FL HUD Metro FMR 2016 Area.

III. Proposed FY 2015 FMRs with the FY 2006 publication that B. Recent Mover Factor On August 15, 2014 (79 FR 48178), replaced those based on the 1990 Following the assignment of the HUD published proposed FY 2015 Census) with the FY 2016 proposed standard quality two-bedroom rent FMRs with a comment period that FMRs. described above, HUD applies a recent ended September 15, 2014. HUD has A. Base Year Rents mover factor to these rents. The considered all public comments calculation of the recent mover factor received and HUD provides responses to HUD used special tabulations of 5- for FY 2015 is similar to the these comments on the FMR Web site year ACS data collected between 2008 methodology used in FY 2014, with the http://www.huduser.org/portal/ through 2012. For FY 2015 FMRs, HUD only difference being the use of updated datasets/fmr.html. HUD does not updated the base rents set in FY 2014 ACS data. The following describes the specifically identify each commenter, using the 2007–2011 5-year data with process for determining the appropriate but all comments are available for the 2008–2012 5-year ACS data.2 recent mover factor. review on the Federal Government’s HUD historically based FMRs on gross In general, HUD uses the 1 year ACS- Web site for capturing comments on based two-bedroom recent mover gross rents for recent movers (those who have proposed regulations and related rent estimate from the smallest moved into their current residence in documents (Regulations.gov—http:// geographic area encompassing the FMR the last 24 months). However, due to the www.regulations.gov/ area for which the estimate is #!docketDetail;D=HUD-2014-0065). nature of the 5-year ACS data, HUD statistically reliable to calculate the developed a new methodology for IV. FMR Methodology recent mover factor.4 HUD calculates calculating recent-mover FMRs in FY some areas’ recent mover factors using This section provides a brief overview 2012. As in FY 2012, HUD assigns all data collected just for the FMR area. of the calculation steps for the FY 2015 areas a base rent which is the estimated However, HUD bases other areas’ recent FMRs. For complete information on two-bedroom standard quality 5-year mover factor on larger geographic areas how FMR areas are determined by each gross rent from the ACS.3 Because if this is necessary to obtain statistically specific FMR area, see the online HUD’s regulations mandate that FMRs reliable estimates. For metropolitan documentation http://www.huduser.org/ represent recent mover gross rents, HUD areas that are sub-areas of larger portal/datasets/fmr/fmrs/ continues to apply a recent mover factor metropolitan areas, the order is FMR docsys.html&data=fmr15. to the standard quality base rents area, metropolitan area, aggregated The FY 2015 FMRs use OMB assigned from the 5-year ACS data. metropolitan parts of the state, and metropolitan area definitions and state. Metropolitan areas that are not standards that were first used in the FY Calculation of the recent mover factor is divided into subparts follow a similar 2006 FMRs. OMB changes to the described below. path from FMR area, to aggregated metropolitan area definitions through 2 metropolitan parts of the state, to state. December 2009 are incorporated. HUD The only difference in survey data between the 2007–2011 5-year ACS data and the 2008–2012 5- In nonmetropolitan areas the recent has not incorporated the February 28, year ACS data is the replacement of 2007 survey mover factor is based on the FMR area, 2013 OMB metropolitan area definition responses with survey responses collected in 2012. aggregated nonmetropolitan parts of the changes because the Census Bureau did The 2008, 2009 2010 and 2011 survey responses state, or if that is not available, on the not incorporate these definitions into remain intact; however, the weighting placed on each survey response is updated by the Census basis of the whole state. HUD calculates the 2012 ACS tabulations; therefore, the Bureau during the process of aggregating the data the recent mover factor as the FY 2015 area definitions are the same as to be as of the final year of the 5-year period. percentage change between the 5-year those used in FY 2014. HUD anticipates 3 For areas with a two-bedroom standard quality that the new OMB area definitions gross rent from the ACS that have a margin of error greater than the estimate or no estimate due to 4 For the purpose of the recent mover factor (based on the 2010 decennial Census) inadequate sample in the 2012 5-year ACS, HUD calculation, a statistically reliable estimate occurs will replace those based on the 2000 uses the two-bedroom state non-metro rent for non- where the recent mover gross rent has a margin of Census (first incorporated into the FMRs metro areas. error that is less than the estimate itself.

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2008–2012 standard quality two- County, ND, Odessa, TX, Rochester, E. Trend From 2013 to 2015 bedroom gross rent and the 1-year 2012 MN, Ward County, ND, and Williams As in FY 2014, HUD continues to recent mover two-bedroom gross rent for County, ND. HUD has no funds to calculate the trend factor as the the recent mover factor area. HUD does conduct surveys of FMR areas, and so annualized change in median gross not allow recent mover factors to lower all future surveys must be paid for by rents as measured across the most recent the standard quality base rent; therefore, the PHAs. 5 years of available 1-year ACS data. if the 5-year standard quality rent is D. Updates From 2012 to 2013 The national median gross rent in 2007 larger than the comparable 1-year recent was $789 and $884 in 2012. The overall mover rent, the recent mover factor is HUD updates the ACS-based ‘‘as of’’ change between 2007 and 2012 is 12.04 set to 1. The process for calculating each 2012 rent through the end of 2013 using percent and the annualized change is area’s recent mover factor is detailed in the annual change in CPI from 2012 to 2.30 percent. Over a 15-month time the FY 2015 Final FMR documentation period, the effective trend factor is 2.883 system available at: http:// 2013. As in previous years, HUD uses Local CPI data coupled with Consumer percent. HUD applies this trend factor to www.huduser.org/portal/datasets/fmr/ the ‘‘as of’’ December 2013 rents to fmrs/docsys.html&data=fmr15. Expenditure Survey (CEX) data for FMR areas with at least 75 percent of their produce FMRs that correspond to the Applying the recent mover factor to the middle of the 2015 fiscal year. standard quality base rent produces an population within Class A metropolitan ‘‘as of’’ 2012 recent mover two-bedroom areas covered by local CPI data. HUD F. Puerto Rico Utility Adjustments base gross rent for the FMR area.5 uses Census region CPI data for FMR The gross rent data from the 2008 to areas in Class B and C size metropolitan C. Other Rent Survey Data 2012 Puerto Rico Community Survey areas and nonmetropolitan areas (PRCS) does not include the utility rate HUD does not use the ACS as the base without local CPI update factors. increases from Commonwealth-owned rent or recent mover factor for 16 areas Additionally, HUD is using CPI data utility companies from last year that where the FY 2015 FMR was adjusted collected locally in Puerto Rico as the were submitted as part of the comments based on survey data collected in late basis for CPI adjustments from 2012 to from Puerto Rico housing agencies. 2012, 2013, or 2014. PHAs conducted 2013 for all Puerto Rico FMR areas. HUD included additional utility values surveys for the following areas: Following the application of the in the final FY 2014 FMRs to account Bennington County, VT, Hood River appropriate CPI update factor, HUD for these changes in Puerto Rico and County, OR, Oakland, CA, Santa converts the ‘‘as of’’ 2013 CPI adjusted these utility adjustments are continued Barbara, CA, Stamford, CT, Windham rents to ‘‘as of’’ December 2013 rents by for all areas of Puerto Rico in the FY County, VT, and Windsor County, VT, multiplying each rent by the national 2015 FMRs. while HUD conducted surveys for December 2013 CPI divided by the The table below shows the fixed Burlington, VT, Cheyenne, WY, national annual 2013 CPI value. amounts that are added to the Puerto Danbury, CT, Flagstaff, AZ, Mountrail Rico FMRs by bedroom count.

0—Bedroom 1—Bedroom 2—Bedroom 3—Bedroom 4—Bedroom

Utility Adjustment ...... $20 $25 $35 $40 $50

G. Bedroom Rent Adjustments ratios. The bedroom ratios used in the adjusts bedroom rents for a given FMR calculation of FY 2015 FMRs remain the area if the differentials between unit HUD calculates the primary FMR 2006–2010 based ratios applied to the bedroom-count FMRs were inconsistent estimates for two-bedroom units. This is two-bedroom FMR computed from the with normally observed patterns (i.e., generally the most common sized rental 2012 ACS data. efficiency rents are not allowed to be unit and, therefore, the most reliable to HUD established bedroom interval higher than one-bedroom rents and four- survey and analyze. Formerly, after each bedroom rents are not allowed to be decennial Census, HUD calculated rent ranges based on an analysis of the range lower than three-bedroom rents). The relationships between two-bedroom of such intervals for all areas with large bedroom ratios for Puerto Rico follow units and other unit sizes and used enough samples to permit accurate these constraints. them to set FMRs for other units. HUD bedroom ratio determinations. These did this because it is much easier to ranges are: Efficiency (zero-bedroom) HUD further adjusts the rents for update two-bedroom estimates annually FMRs are constrained to fall between three-bedroom and larger units to reflect and to use pre-established cost 0.59 and 0.81 of the two-bedroom FMR; HUD’s policy to set higher rents for relationships with other unit bedroom one-bedroom FMRs must be between these units than would result from using counts than it is to develop independent 0.74 and 0.84 of the two-bedroom FMR; unadjusted market rents. This FMR estimates for each unit bedroom three-bedroom FMRs must be between adjustment is intended to increase the count. When calculating FY 2013 FMRs, 1.15 and 1.36 of the two-bedroom FMR; likelihood that the largest families, who HUD updated the bedroom ratio and four-bedroom FMRs must be have the most difficulty in leasing units, adjustment factors using 2006–2010 5- between 1.24 and 1.64 of the two- will be successful in finding eligible year ACS data using similar bedroom FMR. (The maximums for the program units. The adjustment adds 8.7 methodology to what was implemented three-bedroom and four-bedroom FMRs percent to the unadjusted three- when calculating bedroom ratios using are irrespective of the adjustments bedroom FMR estimates and adds 7.7 2000 Census data to establish rent discussed in the next paragraph.) HUD percent to the unadjusted four-bedroom

5 The Bureau of the Census does not collect the Census Bureau conducted a ‘‘long-form’’ sample rents, measured between 2011 and 2012 to update ACS data in the Pacific Islands (Guam, Northern surveys for these areas. These data were not last year’s FMRs for these areas. Marianas and American Samoa) or the US Virgin released in time to be included in FY 2015 FMRs. Islands. As part of the 2010 Decennial Census, the Therefore, HUD uses the national change in gross

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FMR estimates. The FMRs for unit sizes small area (a ZIP code) by the similar Division of Housing Management and larger than four bedrooms are calculated median gross rent for the metropolitan Occupancy of PIH. by adding 15 percent to the four- area of the ZIP code. This rent ratio is Decreases of any level in the FMR bedroom FMR for each extra bedroom. multiplied by the current two-bedroom were opposed especially for certain For example, the FMR for a five- rent for the entire metropolitan area HUD programs and other programs that bedroom unit is 1.15 times the four- containing the small area to generate the use FMRs but do not allow flexibility in bedroom FMR, and the FMR for a six- current year two-bedroom rent for the applying FMRs, such as the Continuum bedroom unit is 1.30 times the four- small area. In small areas where the of Care program and the Low-Income bedroom FMR. FMRs for single-room median gross rent is not statistically Housing Tax Credit program (LIHTC). occupancy units are 0.75 times the reliable, HUD substitutes the median Several comments requested that HUD efficiency FMR. gross rent for the county containing the hold the FY 2015 FMRs harmless, that For low-population, nonmetropolitan ZIP code in the numerator of the rent is they wanted the FMR to remain at the counties with small or statistically ratio calculation. For FY 2015 SAFMRs, FY 2014 level, or some earlier level if insignificant 2006–2010 5-year ACS HUD continues to use the rent ratios it would otherwise be lower. In addition recent-mover rents, HUD uses state non- developed in conjunction with the to, or instead of, implementing a hold metropolitan data to determine bedroom calculation of FY 2013 FMRs based on harmless policy, several comments ratios for each unit bedroom count. 2006–2010 5-year ACS data.6 asked HUD to limit annual increases HUD made this adjustment to protect and decreases of FMRs to five percent, against unrealistically high or low FMRs VII. Public Comments Overview of or at the very least impose a hard floor due to insufficient sample sizes. Comments of five percent on decreases. This inability to hold FMRs harmless at some V. Manufactured Home Space Surveys A. Overview previously higher level is especially The FMR used to establish payment A total of 64 comments were received and posted on the regulations.gov site difficult for LIHTC landlords and standard amounts for the rental of developers to understand because no manufactured home spaces (pad rentals (http://www.regulations.gov/ #!docketDetail;D=HUD-2014-0065), such legal prohibition exists for the including utilities) in the HCV program calculation of HUD’s income limits which is also linked on the HUD User is 40 percent of the FMR for a two- which are also used in the rent FMR page http://www.huduser.org/ bedroom unit. HUD will consider calculation for these units. HUD has portal/datasets/fmr.html. Most modification of the manufactured home been able to use such measures in comments contested FMR reductions space FMRs where public comments constraining income limit increases and compared with the FY 2014 FMRs and present statistically valid survey data decreases, but HUD is specifically some contested reductions in FMRs over showing the 40th-percentile precluded from incorporating these several years. None of these commenters manufactured home space rent changes into the FMR methodology by provided a statistically valid survey of (including the cost of utilities) for the the statutory language governing FMRs rents that could be used to adjust the FY entire FMR area. requiring the use of the most recent All approved exceptions to these rents 2015 FMR. While the timing between available data. As stated in previous based on survey data that were in effect proposed and final was short, only one FMR notices, HUD’s Housing Choice in FY 2014 were updated to FY 2015 commenter announced its intention to Voucher program counsel reviewed the using the same data used to estimate the conduct a rent survey, but did not file statutory language governing the HCV program FMRs. If the result of this a formal comment. Several commenters calculation of FMRs to determine if the computation was higher than 40 percent who did not experience a reduction in Department has the authority to of the new two-bedroom rent, the FY 2015 FMRs complained about the institute caps and floors on the amount exception remains and is listed in small increase in light of rental market the FMRs could change annually. Based Schedule D. The FMR area definitions conditions for their area. And some on this review, HUD’s program counsel used for the rental of manufactured nonmetropolitan areas were concerned issued a legal opinion that HUD home spaces are the same as the area with the large increases and decreases CANNOT impose floors or caps in definitions used for the other FMRs. No that the ACS data provides. changes in FMRs because this would additional exception requests were A significant proportion of the violate the portion of the statute that received in the comments to the FY comments opposed the use of FMRs in directs HUD to use the most current 2015 Proposed FMRs. the calculation of public housing flat data available. The legal opinion is that rents. While FMRs are used in other the statute needs to be changed in order VI. Small Area Fair Market Rents HUD programs, the methodology used for HUD to implement these types of Small Area Fair Market Rents in determining FMRs and the caps and floors. No statutory changes (SAFMRs) are used as part of a court publication of FMRs for comment is regarding the use of the most recent settlement by all public housing primarily in support of the Section 8 available data have since been enacted; authorities (PHAs) in the Dallas, TX Housing Choice Voucher program. consequently, HUD does not have the HMFA. They are also used as part of Other HUD programs must rely on the authority to use a hold harmless policy HUD’s demonstration program for five current FMR methodology. The or other policy which would permit PHAs the Housing Authority of the adjustment of flat rents by FMRs is an HUD to impose caps and floors on FMR County of Cook (IL), the City of Long issue for the program staff in the changes. HUD is required to use the Beach (CA) Housing Authority, the most recent available data and FMRs Chattanooga (TN) Housing Authority, 6 HUD has provided numerous detailed accounts must increase or decrease based on this of the calculation methodology used for Small Area the Town of Mamaroneck (NY) Housing Fair Market Rents. Please see our Federal Register data. Ignoring decreases or phasing Authority, and the Laredo (TX) Housing notice of April 20, 2011 (76 FR 22125) for more decreases or increases in over several Authority. These FMRs are listed in the information regarding the calculation methodology. years would not fully implement FMRs Schedule B addendum. HUD’s Final FY 2015 FMR documentation system based on the most recent available data. available at (http://www.huduser.org/portal/ SAFMRs are calculated using a rent datasets/fmr/fmrs/docsys.html&data=fmr15) Comments were received that oppose ratio determined by dividing the median contains detailed calculations for each ZIP code the current methodology used to define gross rent across all bedrooms for the area in participating jurisdictions. FMR areas. HUD has not incorporated

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the new metropolitan area definitions B. Issues Raised in Comments and HUD The 2008–2012 5-year ACS data should released by OMB on February 28, 2013 Responses be used as a means of verifying if a for the FY 2015 FMRs, but will begin to In accordance with 24 CFR 888.115, sample is representative of the FMR review how to incorporate these new HUD has reviewed the public comments area’s rental housing stock. area definitions. that have been submitted by the due Most surveys cover only one- and Several PHAs with lower proposed date and has determined that there are two-bedroom units, which has statistical FY 2015 FMRs relative to FY 2014 or no comments with ‘‘statistically valid advantages because these are generally earlier FMRs requested that HUD rental survey data that justify the the most abundant rental units in an conduct a survey of rents for their FMR requested changes.’’ HUD’s responses to area. However in nonmetropolitan areas areas. As stated in the proposed FY all known comments received by the and some metrolitan areas, three- 2015 FMR Notice, HUD anticipates it comment due date and a part of the will have no funds to conduct surveys bedroom units are also surveyed notice record http://www.regulations. because there are significant rental units in FY 2015. While one area provided gov/#!docketDetail;D=HUD-2014-0065 data, this data could not be accepted as at this size in the FMR area. If the are located at http://www.huduser.org/ survey is statistically acceptable, HUD the basis for changing FMRs because it portal/datasets/fmr.html. did not meet the threshold for will estimate FMRs for other bedroom representativeness and/or statistical VIII. Rental Housing Surveys sizes using ratios based on the 2006– reliability established for rental survey In 2011, HUD solicited bidders to 2010 5-year ACS data. A PHA or data to be used in FMR determinations. study the methodology used to conduct contractor that cannot obtain the HUD may not use data from newspaper local area surveys of gross rents to recommended number of sample ads because these do not represent determine if the Random Digit Dialing responses after reasonable efforts should actual contracted rents, or rent (RDD) methodology could be improved consult with HUD before abandoning its reasonableness studies as these typically upon. The Department undertook this survey; in such situations, HUD may do not sample units randomly. Other study due to the increasing costs and find it appropriate to relax normal data provided may be acceptable, but declining response rates associated with sample size requirements. the sources and method of collection telephone surveys. Furthermore, the HUD will consider increasing must be identified. Data must be advent of the 1-year ACS limits the need manufactured home space FMRs where collected randomly and cover the entire for surveys in large metropolitan areas. public comment demonstrates that 40 rental stock including single-family Based on this research, the Department percent of the two-bedroom FMR is not units, not just large apartment projects. decided that its survey methodology adequate. In order to be accepted as a Single family units and smaller should be changed with mail surveys basis for revising the manufactured apartment buildings are an important being the preferred method for home space FMRs, comments must part of the rental market and cannot be conducting surveys, because of the ignored. HUD did receive notification lower cost and greater likelihood of include a pad rental survey of the that one PHA in a nonmetropolitan area survey responses. These surveys, mobile home parks in the area, identify is conducting its own survey and has however, take almost twice as long to the utilities included in each park’s sought guidance from HUD on the conduct as prior survey methods took, rental fee, and provide a copy of the survey methodology. Any other PHAs and when response times are most applicable public housing authority’s interested in surveys to support changes critical, the Department may choose to utility schedule. in FMRs should review section VIII of conduct random digit dialing surveys as As stated earlier in this Notice, HUD this notice for further information well, as the budget permits. is required to use the most recent data regarding acceptable survey Unfortunately, the anticipated budget available when calculating FMRs. methodology. does not permit HUD to conduct any Therefore, in order to re-evaluate an For areas that are considering surveys in FY 2015. The methodology area’s FMR, HUD requires more current conducting their own surveys, HUD for both types of surveys along with the rental market data than the 2012 ACS. would caution them to explore all no- survey instruments is posted on the cost options as a means of alleviating HUD USER Web site, at the bottom of VIII. Environmental Impact problems they are having with low the FMR page in a section labeled Fair FMRs. HUD has experience conducting Market Rent Surveys at: http:// This Notice involves the surveys in areas with low or no vacancy www.huduser.org/portal/datasets/ establishment of fair market rent rates and this experience has shown that fmr.html schedules, which do not constitute a it is extremely difficult to capture Other survey methodologies are development decision affecting the accurate gross rent levels in tight acceptable in providing data to support physical condition of specific project markets. For that reason, HUD provides comments if the survey methodology areas or building sites. Accordingly, emergency exception payment can provide statistically reliable, under 24 CFR 50.19(c)(6), this Notice is standards up to 135 percent of the FMR unbiased estimates of the gross rent. categorically excluded from for the Section 8 voucher program in Survey samples should preferably be environmental review under the areas impacted by natural resource randomly drawn from a complete list of National Environmental Policy Act of exploration or in presidentially declared rental units for the FMR area. If this is 1969 (42 U.S.C. 4321). disaster areas. PHAs interested in not feasible, the selected sample must Accordingly, the Fair Market Rent applying for these emergency payment be drawn to be statistically Schedules, which will not be codified in standards should contact their local representative of the entire rental 24 CFR part 888, are proposed to be HUD field office. Other programs that housing stock of the FMR area. Surveys amended as shown in the Appendix to use FMRs will have to pursue similar must include units at all rent levels and this notice: strategies such as exception payment be representative of structure type standards or hold harmless provisions (including single-family, duplex, and within the statutory and regulatory other small rental properties), age of framework governing those programs. housing unit, and geographic location.

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Dated: September 29, 2014. geographic extent of the CBSAs, but The Schedule B addendum shows Small Katherine M. O’Regan, may become so in the future as the Area FMRs for all PHAs operating using Assistant Secretary for Policy Development social and economic integration of the Small Area FMRs. The FMRs for unit and Research. CBSA component areas increases. sizes larger than four bedrooms are Modifications to metropolitan CBSA calculated by adding 15 percent to the Fair Market Rents for the Housing definitions are made according to a Choice Voucher Program four-bedroom FMR for each extra formula as described below. bedroom. For example, the FMR for a Schedules B and D—General Metropolitan area CBSAs (referred to five-bedroom unit is 1.15 times the four- as MSAs) may be modified to allow for Explanatory Notes bedroom FMR, and the FMR for a six- subarea FMRs within MSAs based on bedroom unit is 1.30 times the four- 1. Geographic Coverage the boundaries of old FMR areas (OFAs) bedroom FMR. FMRs for single-room- a. Metropolitan Areas—Most FMRs within the boundaries of new MSAs. (OFAs are the FMR areas defined for the occupancy (SRO) units are 0.75 times are market-wide rent estimates that are the zero-bedroom FMR. intended to provide housing FY 2005 FMRs. Collectively they opportunities throughout the geographic include 1999-definition MSAs/Primary 3. Arrangement of FMR Areas and area in which rental-housing units are Metropolitan Statistical Areas (PMSAs), Identification of Constituent Parts in direct competition. HUD is using the metro counties deleted from 1999- metropolitan CBSAs, which are made definition MSAs/PMSAs by HUD for a. The FMR areas in Schedule B are up of one or more counties, as defined FMR purposes, and counties and county listed alphabetically by metropolitan by the Office of Management and parts outside of 1999-definition MSAs/ FMR area and by nonmetropolitan Budget (OMB), with some PMSAs referred to as nonmetropolitan county within each state. The exception modifications. HUD is generally counties.) Subareas of MSAs are FMRs for manufactured home spaces in assigning separate FMRs to the assigned their own FMRs when the Schedule D are listed alphabetically by component counties of CBSA subarea 2000 Census Base Rent differs state. Micropolitan Areas. by at least 5 percent from (i.e., is at most 95 percent or at least 105 percent of) the b. The constituent counties (and New b. Modifications to OMB Definitions— MSA 2000 Census Base Rent, or when England towns and cities) included in Following OMB guidance, the the 2000 Census Median Family Income each metropolitan FMR area are listed estimation procedure for the FY 2015 for the subarea differs by at least 5 immediately following the listings of the Final FMRs incorporates the OMB percent from the MSA 2000 Census FMR dollar amounts. All constituent definitions of metropolitan areas based Median Family Income. MSA subareas, parts of a metropolitan FMR area that on the CBSA standards as implemented and the remaining portions of MSAs are in more than one state can be with 2000 Census data updated through after subareas have been determined, are identified by consulting the listings for December 1, 2009, but makes referred to as HUD Metro FMR Areas each applicable state. adjustments to the definitions to (HMFAs) to distinguish these areas from c. Two nonmetropolitan counties are separate subparts of these areas where OMB’s official definition of MSAs. FMRs or median incomes would The specific counties and New listed alphabetically on each line of the otherwise change significantly if the England towns and cities within each non-metropolitan county listings. new area definitions were used without state in MSAs and HMFAs are listed in d. The New England towns and cities modification. In CBSAs where subareas Schedule B. included in a nonmetropolitan county are established, it is HUD’s view for 2. Bedroom Size Adjustments are listed immediately following the programmatic purposes that the county name. geographic extent of the housing Schedule B shows the FMRs for zero- BILLING CODE 4210–67–P markets are not yet the same as the bedroom through four-bedroom units.

VerDate Sep<11>2014 18:08 Oct 02, 2014 Jkt 235001 PO 00000 Frm 00054 Fmt 4703 Sfmt 4703 E:\FR\FM\03OCN1.SGM 03OCN1 mstockstill on DSK4VPTVN1PROD with NOTICES Federal Register / Vol. 79, No. 192 / Friday, October 3, 2014 / Notices 59793 BR 977 929 961 894 894 891 886 817 870 894 894 801 891 852 801 4 BR 834 870 895 883 836 866 883 866 825 874 828 894 888 816 819 766 746 746 746 796 756 746 770 3 BR 607 670 695 611 605 599 599 599 599 599 599 599 599 599 599 599 599 599 599 Shelby 1 2 BR 500 500 505 505 510 512 514 495 456 464 462 463 443 443 450 462 475 443 PAGE 1 Clair, STATE STATE Montgomery St. BR 382 510 492 453 481 461 459 460 490 484 440 481 475 447 478 459 489 487 472 440 0 within within ...... Lowndes, Star AREA AREA Jefferson, Tuscaloosa FMR FMR Madison North Morgan Lauderdale Elmore, of of Houston Hale, Blount, COUNTIES Fairbanks Lawrence, Limestone, Calhoun Counties Chilton Counties Colbert, Bibb, Henry Lee Russell Etowah Geneva, Greene, Autauga, Anchorage Mobile Walker Matanuska-Susitna .•...... •...... BR BR ...... 908 987 936 816 874 ...... •...... 4 4 2365 1142 1047 1033 2124 1374 1061 1319 1191 1288 1079 1021 ...... BR BR 950 908 978 872 802 847 813 883 840 775 3 Pike Franklin Perry 1767 2029 1119 1015 1026 1036 1084 1484 1784 Cherokee Cullman 3 Clarke Covington Sumter Barbour Butler Dallas Escambia Lamar Conecuh Tallapoosa Cleburne NONMETROPOLITAN Marengo Wilcox Marshall BR BR 675 655 635 609 622 608 599 599 813 745 711 788 757 773 773 2 2 1377 1007 1199 BR HOUSING 806 863 801 820 848 872 801 827 826 899 BR BR 652 628 652 663 936 513 601 552 572 502 576 477 475 493 478 465 4 1318 1061 1034 1056 1050 1121 1061 1061 1061 761 l 1 1018 BR 867 882 803 835 845 874 894 879 869 883 823 883 820 791 746 786 746 746 746 771 BR BR 370 624 628 658 597 545 536 515 809 819 491 423 457 461 474 435 450 491 1123 3 0 0 EXISTING BR 696 616 600 619 603 599 599 599 599 599 599 599 599 599 599 599 FOR 762 708 703 599 2 BR 643 505 514 523 505 543 505 505 505 505 505 480 443 443 443 446 470 RENTS 1 BR 511 520 494 481 445 448 477 481 440 400 418 481 481 440 481 481 491 440 486 443 489 481 481 ...... 0 MARKET ...... HMFA FAIR AK MSA ...... AL ...... Final HMFA ...... MSA HMFA...... AL MSA...... 2015 Borough, HMFA...... HMFA AREAS AL AREAS COUNTIES Shoals, AL AL MSA...... FY AL MSA...... MSA...... MSA...... HMFA...... AL MSA...... - FMR FMR AL AL AL MSA...... MSA...... B HMFA...... AK AK MSA...... GA-AL ...... AL AL ...... County, AL AL ...... County, ...... •...... County, ...... SCHEDULE Florence-Muscle Fayette Pickens Fairbanks, Columbus, Chambers Choctaw Coosa Clay Crenshaw Birmingham-Hoover, Decatur, Dothan, Henry Baldwin Bullock Dale DeKalb Randolph Huntsville, Jackson Tuscaloosa, Talladega Gadsden, Chilton Coffee NONMETROPOLITAN ALABAMA ALASKA Anniston-Oxford, Auburn-Opelika, Anchorage, METROPOLITAN Walker Macon Washington Winston METROPOLITAN Mobile, Montgomery, Marion Monroe Matanuska-Susitna

VerDate Sep<11>2014 18:08 Oct 02, 2014 Jkt 235001 PO 00000 Frm 00055 Fmt 4703 Sfmt 4725 E:\FR\FM\03OCN1.SGM 03OCN1 mstockstill on DSK4VPTVN1PROD with NOTICES EN03OC14.009 59794 Federal Register / Vol. 79, No. 192 / Friday, October 3, 2014 / Notices BR BR 4 4 2126 1462 1813 1724 1227 1167 1330 1525 1178 1445 1761 1685 1208 1550 1139 1351 BR BR 937 962 950 914 1833 1457 1315 1105 1465 1690 1571 1126 1487 1435 1223 1085 1124 1128 3 3 BR BR 994 904 882 830 763 763 752 763 734 751 2 2 2 1472 1083 1056 1357 1261 1194 1019 Saline BR BR 668 648 609 600 641 615 564 800 891 815 704 795 1 PAGE 1 1088 1003 1064 1007 STATE STATE Pulaski, BR BR 664 675 664 548 596 593 581 536 544 556 876 807 857 454 778 758 771 0 0 1019 Lincoln within within ...... Perry, Washington AREA AREA FMR FMR Jefferson, Pinal Lonoke, Sebastian ...... of of Madison, ...... COUNTIES COUNTIES ...... Pima Franklin Faulkner, Poinsett Crawford, Counties Cleveland, Crittenden Yavapai Benton, Coconino Counties Grant Garland Craighead Yuma Mohave Maricopa, Miller ...... Arctic West Wales-Hyder ...... ••...•...... Bay BR BR ...... •..... Island 958 936 982 883 of ...... 4 4 Peninsula 1563 1267 1671 1180 1240 1436 1441 1249 1034 1298 1155 1008 1021 Cruz Koyukuk ...... Paz BR BR 952 803 803 850 861 879 856 3 Prince 1173 1207 1137 1311 1019 1338 1258 1059 1058 1040 3 Cochise Skagway Santa Yukon- Hoonah-Angoon Kenai Kodiak Bristol Dillingham La Graham Northwest NONMETROPOLITAN Nome NONMETROPOLITAN Aleutians Valdez-Cordova Wrangell BR BR 908 638 623 626 641 584 584 822 854 832 752 796 719 795 744 764 2 1033 2 BR BR HOUSING 967 859 BR BR 630 647 619 622 611 589 559 588 506 825 4 4 487 460 493 482 446 1420 1036 1204 1723 1990 1353 1963 1754 1309 1759 1713 1672 1678 1255 1541 735 702 1 1 BR BR 993 805 801 BR BR 3 381 366 605 614 582 555 536 477 489 490 484 457 421 473 409 479 1039 1605 1983 1348 1652 1616 1366 1204 1613 1216 1082 1282 1210 1025 710 3 0 0 EXISTING ...... BR BR 915 967 976 643 643 834 869 870 838 FOR 739 727 2 2 1289 1262 1097 1097 1158 .... BR BR 953 933 925 623 679 622 537 843 856 RENTS 475 703 741 715 736 733 HMFA 1 1 1135 1346 ...... AR BR BR 967 389 657 653 694 623 624 625 599 531 597 534 832 807 458 475 769 734 HMFA 0 0 MARKET ....•...... AR ...... FAIR MSA MSA AZ MSA Rock-Conway, AR ...... Final AZ ...... HMFA HMFA ...... 2015 Little HMFA HMFA ...... HMFA AREAS AREAS AR AR ...... COUNTIES COUNTIES MSA FY MSA ...... HMFA AR MSA FMR FMR AR MSA ...... •...... City-Kingman, AR-OK AR ...... B - TX-Texarkana, AZ AR MSA ...... Fairbanks East Gateway AZ Peninsula County, County, TN-MS-AR MSA AZ ...... Rock-North continued ...... County, Slope AZ ...... and Smith, Hampton Havasu Bluff, Springs, SCHEDULE Lake Petersburg Flagstaff, Phoenix-Mesa-Glendale, Prescott, Fayetteville-Springdale-Rogers, Fort Franklin Pine Poinsett Little Southeast Sitka Yakutat Bethel Denali Haines Ketchikan Lake Hot Juneau Jonesboro, Tucson, Texarkana, Grant Greenlee...... Gila...... Navajo...... NONMETROPOLITAN North NONMETROPOLITAN ALASKA ARIZONA ARKANSAS Yuma, Aleutians Wade METROPOLITAN Apache...... METROPOLITAN Memphis,

VerDate Sep<11>2014 18:08 Oct 02, 2014 Jkt 235001 PO 00000 Frm 00056 Fmt 4703 Sfmt 4725 E:\FR\FM\03OCN1.SGM 03OCN1 mstockstill on DSK4VPTVN1PROD with NOTICES EN03OC14.010 Federal Register / Vol. 79, No. 192 / Friday, October 3, 2014 / Notices 59795 BR 944 949 945 921 929 800 825 884 802 855 884 884 884 819 884 884 884 794 780 4 1002 1034 1087 1034 1061 1005 1004 1014 BR 834 861 822 875 802 838 861 777 758 727 727 767 727 777 727 727 794 754 752 727 745 727 750 750 749 791 741 3 BR 624 636 601 614 584 597 584 584 584 584 584 584 584 584 584 584 584 584 584 584 584 584 584 584 584 584 584 2 3 BR 432 441 461 434 432 432 493 432 432 477 432 432 432 432 432 432 432 452 446 432 432 463 432 493 432 l PAGE STATE BR 429 438 458 431 429 429 489 429 429 455 429 445 429 448 418 429 429 429 450 443 456 429 459 429 455 429 455 429 390 0 within ...... Costa AREA FMR Contra of COUNTIES Angeles ...... Imperial Fresno Los Stanislaus Kern Kings Butte Orange Counties Napa Alameda, Madera Merced ...... BR ...... River ...... 4 2505 2145 2716 1474 1578 1404 1541 1325 1206 ...... Buren BR Izard Fulton Pike Pope 1242 1102 1147 2159 2166 2213 2250 1220 1199 1399 1280 1118 1344 1360 3 Chicot Cross Stone Scott Sevier Boone Desha Hempstead Howard Lawrence Randolph Johnson Little Calhoun Clay Columbia Ouachita NONMETROPOLITAN Nevada Ashley Van Monroe Woodruff Marion BR 923 832 870 853 807 881 748 759 2 1513 1585 1424 1926 1608 BR HOUSING 934 935 947 953 935 944 956 840 851 811 884 809 814 892 884 884 876 785 780 780 BR 636 660 676 651 577 579 4 1077 1025 1021 1034 1111 1034 1034 1034 720 596 1 1103 1283 1131 1260 91 BR 909 891 848 800 861 840 870 806 861 861 804 861 861 813 823 861 737 7 787 747 727 727 727 782 727 774 775 768 BR 913 902 3 647 631 649 527 504 583 476 498 0 EXISTING 1039 1117 BR 608 607 609 632 627 605 605 605 661 617 592 584 584 584 584 590 584 584 584 584 584 584 584 584 584 584 584 584 FOR 2 BR 510 510 RENTS 432 443 475 467 493 432 466 436 432 432 432 447 432 432 432 451 493 432 432 456 432 1 BR 393 435 449 438 411 456 455 440 458 472 464 455 429 472 433 429 429 472 429 429 429 448 455 472 429 493 429 485 453 489 429 347 378 0 MARKET ...... FAIR HMFA ....•...... •...... CA Final MSA ...... MSA MSA CA HMFA CA 2015 HMFA CA CA Beach, AREAS COUNTIES FY CA MSA...... - FMR MSA...... B CA MSA...... MSA...... MSA...... CA continued MSA...... CA CA CA County, CA Francis...... Spring...... Angeles-Long Centro, SCHEDULE Independence...... Fresno, Los El Phillips...... Polk...... Prairie...... Lafayette...... Chico, Carroll. Conway...... Cleburne...... Clark...... St. Union...... Searcy...... Sharp...... Yell...... Hot Bakersfield-Delano, Hanford-Corcoran, Baxter...... Bradley...... Drew...... Dallas...... Jackson...... Lee...... Logan...... CALIFORNIA Oakland-Fremont, Orange Greene...... Newton...... NONMETROPOLITAN Napa, ARKANSAS Arkansas...... METROPOLITAN Madera-Chowchilla, Merced, Modesto, White...... Mississippi...... Montgomery......

VerDate Sep<11>2014 18:08 Oct 02, 2014 Jkt 235001 PO 00000 Frm 00057 Fmt 4703 Sfmt 4725 E:\FR\FM\03OCN1.SGM 03OCN1 mstockstill on DSK4VPTVN1PROD with NOTICES EN03OC14.011 59796 Federal Register / Vol. 79, No. 192 / Friday, October 3, 2014 / Notices Douglas, BR 4 1592 1373 1376 1596 1297 1910 1842 1416 1303 1312 BR Denver, 1308 1142 1328 1292 1580 1072 1158 1092 1121 1421 3 BR 924 986 901 861 775 777 794 741 4 2 1147 1141 Creek, BR 962 683 636 622 573 574 554 869 729 758 1 PAGE Clear STATE STATE Park Mateo BR 646 587 569 570 512 522 551 811 842 728 0 San within within · . . Sacramento · · Broomfield, · Jefferson, AREA AREA · Bernardino · · · FMR FMR · Placer, Francisco, San · Obispo of of Yuba Gilpin, San Arapahoe, Clara Barbara Cruz COUNTIES Benito Diego Luis Joaquin Paso Dorado, Pueblo Larimer Elbert, Counties Counties Sonoma San San San San Solano Santa Santa Santa Shasta Sutter, Boulder Riverside, El El Tulare Teller Adams, Ventura Yolo Mesa Weld Monterey Marin, ...... ••..•••..••.•...... •...... •. BR BR ...... •...•••..••....•..••..•• ....•...... •....•.•••.•.• ...... ••...•...... •...... 4 4 1490 1987 1792 1675 1516 1967 1582 1319 1392 1132 1302 2486 2029 2265 2462 2892 2011 2259 2525 2367 2115 1321 2157 3386 .....•...... ••..•.....•...... •...... BR BR Inyo 1628 1899 1337 1629 1814 1885 1929 1394 1779 1136 1228 1454 Plumas 1815 1696 1316 1148 1153 1049 1298 2148 1491 2021 2801 2551 1951 2263 2019 1261 3 3 Colusa Siskiyou Lassen Glenn Trinity NONMETROPOLITAN Amador Mono Mendocino BR BR 907 946 850 856 893 899 779 786 733 771 2 1555 1153 1012 1244 1279 1390 1809 1309 1460 1756 1370 1207 1105 2 1232 1156 2062 HOUSING BR BR BR 908 987 945 964 996 664 659 611 585 560 806 818 893 1600 4 1320 1562 1343 1270 1356 1679 1269 1408 1131 2309 721 742 719 722 592 1 1 1158 1060 1635 1419 1014 1218 1298 1047 BR 948 BR BR 969 3 964 676 605 600 577 551 531 523 558 879 877 898 857 491 462 1019 1300 1230 1375 1257 1046 1997 1533 1107 1403 702 788 765 757 723 761 0 0 EXISTING 1256 1213 1060 1073 BR 933 952 643 818 882 835 853 840 FOR 785 1355 1040 2 ...... BR ..•...••. 605 699 617 692 630 621 542 580 RENTS 769 704 ...... • ,...... 1 1023 HMFA ....•...... MSA •...... CA MSA ...... BR ...... 642 613 630 626 611 595 580 468 467 757 CA HMFA 0 1016 CA MARKET MSA ...... MSA CA MSA . . . CA ...... CA MSA .•••..•.•...•.•.....• FAIR CA ....•..•...... CO MSA MSA .•...... •...... • ...... Clara, CA MSA MSA Final CO Marcos, .....•...... • •.•...... •.....• HMFA...... MSA , CA CA HMFA Robles, Maria-Goleta, CA CA MSA...... 2015 HMFA HMFA...... CO .... AREAS AREAS CO COUNTIES Oaks-Ventura, FY Bernardino-Ontario, CA CO MSA FMR FMR MSA...... MSA...... MSA...... MSA...... MSA...... CA continued County, B - MSA...... CA ...... •..•.....•.•..... •...... ••..•...••.... CA CO CO Springs, HMFA...... CA Obispo-Paso ...... •...... ••.•••..•...•••.•.•.•• CO County, .•.•••..•..••.•...•..•..•• .•...... •...... •••...... Rosa-Petaluma, CA Barbara-Santa Junction, Cruz-Watsonville, ...... •..... City, Collins-Loveland, ...•.•••...... •.•...•...•• Francisco, Jose-Sunnyvale-Santa Benito Diego-Carlsbad-San Luis Norte SCHEDULE *Riverside-San *Denver-Aurora-Broomfield, Redding, Fort Pueblo, COLORADO CALIFORNIA Colorado Calaveras San San San San San Sacramento--Arden-Arcade--Roseville, Santa Santa Santa Stockton, Salinas, Sierra Yuba Del Humboldt Boulder, Lake Tehama Tuolumne Grand Oxnard-Thousand Greeley, Teller Nevada NONMETROPOLITAN Vallejo-Fairfield, Visalia-Porterville, Yolo, Alpine METROPOLITAN Modoc METROPOLITAN Mariposa

VerDate Sep<11>2014 18:08 Oct 02, 2014 Jkt 235001 PO 00000 Frm 00058 Fmt 4703 Sfmt 4725 E:\FR\FM\03OCN1.SGM 03OCN1 mstockstill on DSK4VPTVN1PROD with NOTICES EN03OC14.012 Federal Register / Vol. 79, No. 192 / Friday, October 3, 2014 / Notices 59797 town, town, town, town, town town, town, town, Granby Redding Canton BR 913 918 town, town, 987 987 987 987 987 987 951 868 town, 4 1077 1127 1617 1963 1507 1577 1078 1211 1309 1134 1604 1139 1074 town, town, Lebanon Stratford Windsor town, town, town, BR Easton 948 town, 948 948 999 914 915 837 832 801 881 801 801 801 801 lOSS 1207 1472 1023 1502 1513 1169 1248 1946 3 Windsor Suffield Brookfield East town, town, town, BR Newington 643 643 643 643 643 643 921 643 643 643 643 999 643 643 695 694 807 862 853 734 Berlin 5 1097 1027 2 1469 Simsbury Newtown town, town, town, town, Glastonbury Burlington town, BR Manchester town, 622 637 657 542 542 578 504 542 542 S6S S13 890 475 475 47S 475 495 493 475 740 738 759 STATE Shelton town, town, 1 PAGE 1086 Colchester town town, town, Bridgeport Bethel town, BR Avon Windsor town, 618 633 653 69S 663 661 519 519 561 500 519 509 519 S62 874 472 472 472 472 472 492 490 733 Hartford Hill of 0 Britain of of within of Wethersfield ...... Fairfield East South New towns Sherman Rocky Bristol AREA towns towns Monroe towns Hartland town, town Farmington New FMR town, town, town, town, town, town, town, of County town town, County County town, town, Locks County Hartford Granby London COUNTIES Fairfield East Plainville Southington Danbury Ridgefield Bloomfield Hartford Enfield Trumbull West Windsor Marlborough Fairfield Fairfield Hartford Components New ..•....•...••....•••...... •...... ••.....•..•...... • ...•.....•...... •• ...... •..••....••..•...... •..• ....•..•..•.....••.••..• ...... BR .....•..•...... •..•...... •...... •...... •.•...• ...... 4 2497 ...... Carson Blanco Juan Plata BR Fremont 1679 1818 1416 1648 Lincoln Pitkin Cheyenne 3 Custer Costilla San Sedgwick Bent Dolores Hinsdale Kit La Rio Routt Jackson Grand Ouray NONMETROPOLITAN Archuleta Montezuma Morgan Washington Mineral BR 2 1283 1137 1583 1973 1144 1425 1655 BR HOUSING 987 982 966 978 874 859 859 859 87S 871 BR 918 840 4 1336 1139 1350 1970 1879 1478 1495 1099 1374 1139 1139 1001 2220 2106 1 1008 1170 BR 948 975 978 81S 80S 812 837 824 804 854 816 849 801 801 801 BR 3 803 1213 1146 1550 1326 1100 1095 1096 1866 1656 770 732 0 EXISTING 1027 BR 6S4 643 643 643 6S2 672 974 662 643 643 643 643 643 643 883 FOR 778 783 703 743 776 .... 2 1198 1061 1284 1261 BR HMFA 6S3 542 575 542 579 518 520 584 574 542 542 sso 885 475 482 489 475 482 475 475 784 720 RENTS 1 1049 1018 CT BR 66S 394 519 514 516 580 519 519 812 S28 S19 S71 S75 879 S76 472 479 496 479 472 472 779 7SO 383 0 MARKET ...... FAIR Hartford, .•..•..••.••.•...... ••. Final HMFA CT ...... 2015 AREAS .....•...... COUNTIES FY HMFA Hartford-East FMR CT HMFA B - ...... •...•...... continued CT ...... •.....•..•...... •..•..• ...... •...... •...... ••.•••...... •.•...... •.••..• ...... •.....••..•...... ••...•.•..••...... •...... •...... •.•...... •...•••..•..••.....•...... Grande Animas Miguel SCHEDULE *Hartford-West Logan Eagle Phillips Prowers COLORADO Chaffee Conejos Crowley Colchester-Lebanon, Summit Saguache San Yuma Kiowa Baca Delta Huerfano Lake Las Rio Bridgeport, Danbury, CONNECTICUT Gunnison Otero Garfield NONMETROPOLITAN Alamosa METROPOLITAN Moffat Montrose

VerDate Sep<11>2014 18:08 Oct 02, 2014 Jkt 235001 PO 00000 Frm 00059 Fmt 4703 Sfmt 4725 E:\FR\FM\03OCN1.SGM 03OCN1 mstockstill on DSK4VPTVN1PROD with NOTICES EN03OC14.013 59798 Federal Register / Vol. 79, No. 192 / Friday, October 3, 2014 / Notices town town town, town, town, town, town, town, town, town, town, town, town, town, town, town, town, town, town, town, town, town, Portland town Hamden Wolcott town, town town, Falls Hebron Weston town, Chaplin town, town, town, town, Lyme Plainfield London River Tolland Torrington Ledyard Goshen Morris town, Naugatuck town, town, town, Sterling Lyme town, town, Stonington New town, town, East Cromwell Seymour Deep Beacon Branford Orange town, town, town, town, town Greenwich town, town, town, Bolton Old town town, Hampton Norfolk town, Saybrook Woodbridge town, town, 6 town, town, town, town, town, town, town, Roxbury Bridgewater town, Haven Guilford town, town, Stamford Waterbury Middletown East Old town, Ellington Groton town, STATE Stafford Watertown PAGE counties Canterbury New Woodstock Killingly Thomaston Cornwall town, town, STATE Haven town, town Sprague Scotland Bozrah Litchfield Oxford town, town, town, town, town, town Bethany Darien Chester Clinton Ansonia Willington Middlebury town, town, Montville town, town, Haven of Norwich Andover town, town town, town, town, town, town, of of of of of of within Milford North town, town, town, town, Haven of within town, town, Plymouth Haddam New West towns town, Bethlehem Norwalk AREA towns towns towns towns towns towns Somers Waterford Woodbury town, Coventry Southbury Sharon East Kent Griswold AREA Wilton towns Salem Hampton Windham Meriden FMR Putnam Lyme Brooklyn East Middlefield town, town, town, Colebrook nonmetropolitan Killingworth Vernon Washington Milford town, town, FMR town, town, town town, County of town, town, town, town, town, town, town, County County County County County County town, town, town, town, of town, town, town, town, town, County town, town, town, town, town, Stonington Branford Canaan within Canaan London Haven Haven Haven Hartford Franklin Preston Prospect Columbia Union Durham Haddam Derby Lisbon Essex Cheshire North North New Voluntown Wallingford Westbrook Westport Mansfield Madison Pomfret Fairfield Components Salisbury Barkhamsted Harwinton Kent Eastford Towns Thompson Tolland Canaan Counties North New New New New New Warren Ashford Winchester Middlesex Middlesex BR BR BR 4 1762 4 4 1818 1548 1560 1329 3010 BR BR BR 3 3 3 1353 1187 1305 1581 1219 1325 1378 1738 2420 BR BR BR 979 953 984 2 1057 1943 1316 1639 2 1249 1214 1689 1695 2 1030 HOUSING BR BR BR 805 897 803 802 830 7ll 1 1 1 1011 1055 1564 BR BR BR 958 649 594 567 874 891 716 790 0 0 0 1291 EXISTING . FOR RENTS ...... MARKET ...... HMFA FAIR HMFA ...... CT ...... •.....•...... CT Final HMFA HMFA ...... HMFA CT CT CT County, ...... 2015 CT AREAS AREAS COUNTIES CT...... FY HMFA FMR FMR London, continued CT County, B - MSA...... Middlesex County, DE Haven-Meriden, SCHEDULE *New Litchfield CONNECTICUT Southern Stamford-Norwalk, DELAWARE Dover, Norwich-New NONMETROPOLITAN Windham METROPOLITAN Waterbury, METROPOLITAN Milford-Ansonia-Seymour,

VerDate Sep<11>2014 18:08 Oct 02, 2014 Jkt 235001 PO 00000 Frm 00060 Fmt 4703 Sfmt 4725 E:\FR\FM\03OCN1.SGM 03OCN1 mstockstill on DSK4VPTVN1PROD with NOTICES EN03OC14.014 Federal Register / Vol. 79, No. 192 / Friday, October 3, 2014 / Notices 59799 BR BR 942 905 940 4 4 1323 1143 1151 BR BR 939 998 801 801 1101 1054 3 3 BR BR 643 643 643 812 747 757 2 2 7 Pinellas BR BR 627 620 533 542 533 560 1 1 PAGE STATE STATE STATE BR BR Johns 623 519 519 519 556 480 Pasco, 0 0 Seminole St. within within within Leon . . . . . Rosa AREA AREA AREA Osceola, Nassau, FMR FMR FMR Columbia Lucie Santa Hillsborough, Jefferson, Sarasota of of of of Gilchrist St. River Duval, Orange, Beach COUNTIES COUNTIES Castle usia Indian Polk Palm Flagler Escambia, Counties Counties Counties Clay, Collier Charlotte Baker Broward Brevard Bay Hernando, Lee Lake, District Gadsden, Okaloosa New Vol Alachua, Miami-Dade Marion Wakulla Manatee, Martin, ...... ························ ...... BR BR BR ...... 4 4 4 2451 2237 1502 1863 1592 1522 1217 1533 1546 1058 1251 1559 1324 1534 1370 1511 1059 1608 1446 1336 1524 1448 1109 1578 1399 1945 ...... BR BR BR 972 3 1293 1217 1213 1440 1951 1216 1334 1229 1801 1180 1228 1126 1594 1286 1055 1330 1216 1206 1116 1291 1104 1160 1280 1065 1628 3 3 Columbia Calhoun Hendry Dixie Hamilton Glades NONMETROPOLITAN NONMETROPOLITAN BR BR BR 997 905 900 990 960 935 939 905 959 931 896 883 830 878 886 828 854 821 728 783 790 2 2 2 1263 1162 1458 1156 1206 BR BR HOUSING 951 901 BR BR BR 907 959 614 994 695 625 698 669 659 965 641 584 836 4 4 1270 1038 1568 1054 707 775 795 750 709 717 747 758 749 765 731 724 1 1 1 1230 BR BR 948 898 823 883 BR BR BR 637 613 676 628 691 675 640 684 610 569 504 542 508 532 580 814 491 1347 1020 1034 1051 3 3 703 719 764 745 707 703 705 752 0 0 0 EXISTING 1167 .. .. BR BR 987 643 658 661 FOR 770 713 702 .... 2 2 MSA MSA ...... FL BR HMFA BR 604 601 542 555 592 544 RENTS 730 1 1 ...... MSA MSA ...... FL FL BR BR MSA 600 519 532 576 567 534 713 Beach, ...... 0 0 MARKET MSA MSA ...... PA-NJ-DE-MD FL DC-VA-MD HMFA ...... FL FL MSA HMFA City MSA ...... •...... FAIR FL Beach, ...... FL ...... FL FL MSA MSA ...... MSA MSA FL FL Final FL Beach-Destin, Raton, FL HMFA HMFA...... MSA...... FL 2015 Haven-Panama HMFA...... HMFA...... AREAS AREAS AREAS FL FL Pass-Brent, COUNTIES Beach-Ormond Haven, HMFA...... COUNTIES Myers, MSA...... MSA...... FY Beach, Walton MSA...... FL FL Island, FMR FMR FMR FL FL FL FL COLUMBIA Beach-Kendall, B - Beach-Boca Petersburg-Clearwater, MSA...... continued Lucie, OF ...... County, FL City-Lynn ...... •...... Palm Port-Bradenton-Sarasota, County, Lauderdale, Gorda, Coast, Coral-Fort St. Bay-Melbourne-Titusville, ...... SCHEDULE *West *Philadelphia-Camden-Wilmington, *Fort FLORIDA Palm Palm Panama Pensacola-Ferry Port Punta Franklin Lakeland-Winter Cape Crestview-Fort Citrus Sussex Sebastian-Vero DELAWARE DISTRICT Baker Deltona-Daytona Bradford DeSoto Hardee Jacksonville, Tampa-St. Ocala, Orlando-Kissimmee-Sanford, Tallahassee, Gulf Gainesville, NONMETROPOLITAN Naples-Marco North NONMETROPOLITAN METROPOLITAN METROPOLITAN Washington-Arlington-Alexandria, METROPOLITAN Wakulla Miami-Miami

VerDate Sep<11>2014 18:08 Oct 02, 2014 Jkt 235001 PO 00000 Frm 00061 Fmt 4703 Sfmt 4725 E:\FR\FM\03OCN1.SGM 03OCN1 mstockstill on DSK4VPTVN1PROD with NOTICES EN03OC14.015 59800 Federal Register / Vol. 79, No. 192 / Friday, October 3, 2014 / Notices Gwinnett, Coweta, Pike, BR BR 905 927 905 951 905 918 887 887 861 860 814 884 783 4 4 1038 2185 Cobb, Fulton, BR BR 948 923 802 852 881 801 834 891 864 730 758 730 730 787 3 2132 3 Pickens, BR BR 643 643 643 644 643 643 643 687 609 586 586 586 586 586 8 2 1635 2 Clayton, Forsyth, 5 Worth BR BR Muscogee 542 533 533 522 541 47 475 475 433 433 433 433 433 Paulding, 1 1 PAGE 1208 STATE Richmond Fayette, Cherokee, BR BR Oglethorpe 383 519 519 519 519 472 472 470 455 430 458 430 430 430 349 Lowndes 0 0 1200 Twiggs Terrell, Marion, Newton, within Walton . . . . . · . . · Lee, · ··· Oconee, McDuffie, Mcintosh · Carroll, Douglas, Jones, Effingham Lanier, AREA · Harris, Walker · Jasper, · · FMR · Glynn, Spalding, Dade, of Bartow, DeKalb, Echols, Madison, Dougherty, Henry, Chatham, Columbia, Crawford, COUNTIES COUNTIES Rockdale, Long Floyd Counties Catoosa, Clarke, Baker, Barrow, Dawson, Heard, Burke, Brantley, Butts Hall Haralson Lamar Bibb, Bryan, Brooks, Houston Liberty Chattahoochee, Whitfield Monroe Meriwether Murray ...... •...... •...... ••...... • BR ...... •....•••••.•••...... •...•.•.•...• 982 928 814 ...... •...... ••• ...... 4 1135 1474 1226 1037 1094 1319 1045 1101 1039 1296 1005 1045 1049 1125 1081 1346 1459 1121 1275 ...... Hill BR 904 990 999 971 908 908 960 936 948 942 873 807 838 780 776 Putnam 1007 1213 1026 1069 1043 1230 1067 Lafayette Liberty 3 Calhoun Candler Chattooga Suwannee Union Ben Holmes Baldwin Blackley NONMETROPOLITAN NONMETROPOLITAN Atkinson Monroe Washington BR 916 922 653 653 646 616 695 609 635 616 590 824 832 743 728 776 714 745 739 735 701 761 2 HOUSING BR BR 999 925 967 887 856 783 BR 608 610 628 651 674 542 518 574 574 536 592 520 586 514 536 562 591 4 477 473 457 4 1073 1164 1066 1240 1024 1078 1025 1106 1241 773 778 1 BR BR 915 948 948 911 862 801 805 814 730 730 730 BR 647 633 553 655 541 515 570 536 569 559 588 478 476 495 474 476 454 488 471 446 454 1070 1158 1069 1081 3 708 3 0 EXISTING BR BR 643 657 643 692 643 629 586 586 586 586 586 807 FOR 726 786 778 2 2 BR BR 575 542 511 596 575 433 433 494 456 494 RENTS 1 1 ..•....•... BR BR 635 663 571 519 531 539 519 508 533 519 592 542 571 473 453 473 430 438 494 430 HMFA ...... 0 0 MARKET ...... GA ...... MSA FAIR ...... •...... HMFA GA GA-SC ...... Final ...... HMFA...... GAMSA HMFA...... GA MSA...... 2015 HMFA HMFA...... MSA...... County, HMFA...... GA HMFA...... AREAS COUNTIES COUNTIES Stewart, HMFA...... MSA..... MSA...... FY GA GA GA County, Springs-Marietta, GA GA MSA...... FMR TN-GA GA GA MSA...... MSA...... B - GA HMFA...... county, MSA...... GA GA GA-AL MSA...... ••...... •...... County, MSA...... continued GA GA ...... County, County, Robins, GA ...... County, GA County, County, ...... SCHEDULE FLORIDA Rome, Levy Long Jackson Columbus, Chattanooga, Camden...... Sumter Savannah, Highlands Brunswick, Butts Dalton, Haralson Lamar Hinesville-Fort Bacon...... Banks...... Berrien...... Bulloch...... GEORGIA Okeechobee Taylor Gainesville, Charlton...... NONMETROPOLITAN NONMETROPOLITAN Augusta-Richmond Albany, Athens-Clarke Atlanta-Sandy Valdosta, Walton METROPOLITAN Macon, Monroe Warner Appling...... Madison Meriwether Murray

VerDate Sep<11>2014 18:08 Oct 02, 2014 Jkt 235001 PO 00000 Frm 00062 Fmt 4703 Sfmt 4725 E:\FR\FM\03OCN1.SGM 03OCN1 mstockstill on DSK4VPTVN1PROD with NOTICES EN03OC14.016 Federal Register / Vol. 79, No. 192 / Friday, October 3, 2014 / Notices 59801 BR 907 918 922 912 947 923 942 903 969 985 909 999 887 801 814 864 887 822 807 887 824 836 783 783 783 783 4 1092 1038 1135 1181 1038 1169 1045 1038 1066 1038 BR 944 920 961 968 845 864 866 864 864 816 806 831 884 853 826 811 840 819 807 885 817 804 815 811 817 864 730 730 730 798 730 730 760 730 765 742 771 1041 3 BR 667 612 622 687 641 655 601 626 609 656 586 586 586 586 586 586 586 586 586 586 586 586 586 586 586 586 586 586 586 586 586 586 772 762 700 704 596 9 2 BR 632 510 505 517 521 567 571 510 520 433 446 494 444 433 474 452 433 433 494 456 494 433 494 444 460 433 494 494 494 433 433 433 494 464 444 PAGE 1 STATE BR 358 387 616 507 501 514 506 567 507 517 430 434 443 436 473 441 430 471 449 430 430 473 453 473 430 473 457 409 430 473 473 473 430 469 474 430 473 461 441 0 within ...... AREA FMR of COUNTIES Honolulu Counties ...... BR ...... 3061 4 ...... •...... Davis ...... •...... BR Irwin 3 Fannin Peach Polk Putnam Emanuel Lumpkin 2667 Crisp Colquitt Seminole Schley Stewart Dodge Hancock Rabun Early Jenkins Laurens Jeff Towns Troup Gordon Talbot Gilmer Greene Tattnall Telfair Tift Clinch NONMETROPOLITAN Union Ware Montgomery Washington Webster White Wilkes Miller BR 2 1810 BR HOUSING 930 918 973 959 992 995 887 879 814 863 887 887 887 845 887 896 817 887 783 783 783 783 783 783 BR 4 1030 1038 1059 1038 1038 1033 1038 1038 1038 1038 1006 1 1374 BR 853 864 866 864 864 804 881 826 851 864 805 890 864 864 808 842 816 845 893 864 864 866 845 774 733 783 765 758 738 730 741 730 730 730 730 779 761 730 730 730 730 BR 3 0 EXISTING 1260 BR 614 683 646 604 616 655 640 586 586 586 586 586 586 586 586 594 586 586 586 586 586 586 586 586 586 586 586 586 586 586 586 586 586 586 586 586 586 598 FOR 2 BR 504 505 509 509 509 RENTS 485 440 494 494 494 478 476 433 433 433 480 433 433 494 477 440 433 494 433 433 433 456 477 452 456 437 494 480 433 456 433 433 1 BR 349 501 506 482 437 473 473 473 473 473 430 430 436 439 483 430 473 430 430 473 474 488 437 430 473 430 430 430 498 474 449 453 434 473 473 430 453 430 430 0 MARKET ...... FAIR Final 2015 ...... AREAS COUNTIES FY MSA FMR B - HI ...... continued ...... •..•...... •...... SCHEDULE *Honolulu, Evans Franklin Pierce Pulaski Jefferson Lincoln Clay Coffee Sumter Screven Stephens Upson HAWAII Decatur Dooly Habersham Hart Randolph Jackson Johnson Elbert GEORGIA Thomas Toombs Cook Taylor Turner Glascock Grady Quitman Taliaferro Treutlen NONMETROPOLITAN Wayne Macon Warren Wheeler Wilcox Wilkinson METROPOLITAN Morgan Mitchell

VerDate Sep<11>2014 18:08 Oct 02, 2014 Jkt 235001 PO 00000 Frm 00063 Fmt 4703 Sfmt 4725 E:\FR\FM\03OCN1.SGM 03OCN1 mstockstill on DSK4VPTVN1PROD with NOTICES EN03OC14.017 59802 Federal Register / Vol. 79, No. 192 / Friday, October 3, 2014 / Notices BR BR 974 914 951 908 951 4 4 1304 1124 1187 1097 1132 1124 1748 1124 1124 1124 1124 1139 1169 BR BR 948 933 987 973 948 900 948 901 948 924 948 852 884 842 828 872 3 1742 1072 3 BR BR 643 643 643 643 643 643 643 643 643 643 643 643 676 670 660 664 736 10 2 2 1264 Will BR BR 979 621 514 537 507 507 500 523 526 514 542 523 511 475 492 475 491 475 1 PAGE 1 STATE STATE McHenry, BR BR 515 514 504 504 520 519 511 515 870 462 472 488 472 496 488 469 465 472 0 0 within within Island Lake, Owyhee ...... Piatt AREA AREA Rock Kane, FMR FMR Canyon, Jefferson Ford, Power of of Mercer, DuPage, Boise, Perce COUNTIES COUNTIES Franklin Champaign, Cook, Counties Counties Kootenai Bannock, Bond Henry, DeKalb Bonneville, Gem Nez Ada, Alexander Vermilion McLean Macon ...... •...... BR BR ...... •...... 990 ...... 4 4 1303 1323 1382 1047 1444 1205 1164 1194 1231 1140 1139 1006 1624 1008 ...... •. Falls Lake ...... BR BR 968 934 941 948 914 981 957 954 951 899 825 Idaho 3 3 Fremont Latah 1393 1085 1058 1095 1026 1240 Caribou Clark Custer Shoshone Kalawao Bingham Bonner Bear Butte Lewis Twin Oneida NONMETROPOLITAN NONMETROPOLITAN Maui Washington Madison BR BR 657 674 695 649 643 636 686 874 736 743 778 734 796 741 710 2 2 1093 BR BR HOUSING 957 BR BR 922 675 654 587 543 592 585 538 591 554 526 4 486 498 490 482 4 470 1969 1124 1139 1392 1124 1132 1139 1124 1211 1139 1124 1139 1012 1148 1389 1215 1 1 BR BR 948 948 978 904 937 948 948 954 863 801 895 886 873 BR BR 391 545 521 542 571 812 438 493 422 425 487 480 448 412 1663 1552 1943 1054 1321 1011 3 3 383 378 0 0 EXISTING BR BR 947 643 643 643 648 643 643 684 643 643 643 643 643 680 686 FOR 2 2 1222 1151 BR BR 945 903 661 784 542 511 542 506 501 542 542 542 503 579 475 475 477 494 719 RENTS 1 1 ...... BR BR MSA ...... 628 515 508 515 502 515 515 515 895 472 472 498 424 499 479 749 714 383 0 0 MARKET ...... · HMFA · IA-IL MSA · FAIR · IL · • ...... MO-IL Final MSA Island, HMFA MSA...... IL ID IL 2015 HMFA...... MSA...... AREAS AREAS COUNTIES COUNTIES HMFA...... MSA...... MSA...... ID IL FY HMFA...... MSA...... ID IL FMR FMR MSA...... MSA...... ID MSA...... ID B - ...... ID-WA IL IL ...... ························ ...... continued County, UT-ID ...... Falls, City-Nampa, d'Alene, ...... •...... • ...... County, Girardeau-Jackson, County, SCHEDULE IDAHO ILLINOIS Idaho *Chicago-Joliet-Naperville, Pocatello, Payette Lewiston, Lincoln Camas Coeur Champaign-Urbana, Cassia Clearwater HAWAII Benewah Bond Boise Logan, Blaine Boundary Lemhi Bloomington-Normal, Danville, Davenport-Moline-Rock DeKalb Decatur, Elmore Jerome Hawaii...... Kauai...... Gem Teton Cape Gooding NONMETROPOLITAN NONMETROPOLITAN Adams Valley METROPOLITAN METROPOLITAN Minidoka

VerDate Sep<11>2014 18:08 Oct 02, 2014 Jkt 235001 PO 00000 Frm 00064 Fmt 4703 Sfmt 4725 E:\FR\FM\03OCN1.SGM 03OCN1 mstockstill on DSK4VPTVN1PROD with NOTICES EN03OC14.018 Federal Register / Vol. 79, No. 192 / Friday, October 3, 2014 / Notices 59803 BR 908 933 927 927 927 933 922 933 904 933 935 927 843 843 843 843 878 4 1016 1007 1118 1085 1052 1006 1068 1118 1067 1031 1078 1066 Clair St. BR 930 953 957 916 919 930 930 930 905 930 901 930 826 868 872 838 890 812 885 834 856 786 796 786 786 786 786 786 786 793 786 786 791 3 1666 1965 BR 631 639 631 631 631 631 631 631 631 631 631 631 631 631 631 631 669 631 652 631 631 631 631 631 631 631 631 651 631 635 710 2 11 1338 Woodford Monroe, BR 989 532 532 532 532 532 532 532 503 525 550 532 532 532 532 532 472 470 466 466 470 466 466 488 496 PAGE 1 STATE Madison, BR Tazewell, 375 510 419 469 466 419 419 419 467 466 463 419 419 419 467 466 419 419 472 422 419 466 433 419 463 419 419 419 419 466 419 419 466 432 466 419 461 796 375 0 within ...... Stark, Jersey, AREA ······· FMR Peoria, of Clinton, Sangamon Winnebago COUNTIES Calhoun, Counties Kankakee Kendall Boone, Grundy Macoupin Marshall, Menard, ...... BR ...... • ...... 4 1377 1538 1805 1003 1108 1148 1006 1206 ...... •...... tgomery Daviess Witt BR 917 923 955 Iroquois 3 Pope Putnam 1373 1063 Effingham Franklin Perry 1275 1726 1011 Clay Crawford Carroll Christian Shelby Schuyler Union Brown Hamilton Knox De Edgar Hardin Lawrence Richland Jasper Jo Livingston Gallatin NONMETROPOLITAN Warren Wayne McDonough Mason Whiteside Men Moultrie BR 938 906 631 816 714 741 730 2 1171 HOUSING BR 932 957 927 955 903 967 972 900 927 981 981 981 901 843 843 843 843 890 881 864 BR 693 686 633 557 551 574 879 478 4 1067 1065 1118 1020 1097 1190 1103 1043 1046 1101 1141 1 BR 908 914 928 933 909 977 900 937 909 855 868 858 808 850 878 898 837 826 886 827 854 875 816 787 786 786 786 786 786 786 786 786 786 786 790 BR 3 697 533 558 540 413 425 481 464 0 EXISTING ...... BR 664 672 633 697 687 635 672 663 658 633 644 631 631 631 631 631 631 631 631 631 631 631 631 631 631 631 631 631 631 631 631 631 FOR 715 2 BR 504 532 515 507 515 532 506 508 532 528 508 532 532 532 521 501 480 480 RENTS 466 490 495 497 490 466 476 491 471 1 BR 394 400 463 419 465 466 468 419 463 419 478 487 419 419 422 481 419 425 492 419 419 466 446 457 463 419 420 463 419 419 419 466 466 419 417 474 473 395 375 0 MARKET ...... FAIR ...... Final ...... MSA HMFA ...... HMFA IL 2015 HMFA IL HMFA AREAS ...... IL COUNTIES MSA IL FY ...... - IL FMR MSA B MSA MO-IL ...... IL ...... continued County, ...... IL County, ...... County, ...... •...... Louis, ...... Salle SCHEDULE ILLINOIS Peoria, Rockford, Fayette Fulton La Lee Logan Pike Pulaski Randolph Cass Cumberland Clark Coles Stephenson Springfield, St. Saline Scott Kankakee-Bradley, Kendall Bureau Douglas Hancock Henderson Edwards Jackson Johnson Jefferson Grundy Greene Ogle NONMETROPOLITAN Adams METROPOLITAN Wabash Washington White Williamson Macoupin Marion Massac Morgan

VerDate Sep<11>2014 18:08 Oct 02, 2014 Jkt 235001 PO 00000 Frm 00065 Fmt 4703 Sfmt 4725 E:\FR\FM\03OCN1.SGM 03OCN1 mstockstill on DSK4VPTVN1PROD with NOTICES EN03OC14.019 59804 Federal Register / Vol. 79, No. 192 / Friday, October 3, 2014 / Notices Marion, BR 966 926 916 906 906 862 892 881 880 859 859 4 1137 1078 1021 1047 1103 1139 1069 1053 Johnson, BR 923 915 948 803 823 803 801 859 844 884 878 801 844 890 801 874 895 826 801 3 BR 643 673 643 643 659 645 647 663 643 643 643 678 643 643 643 643 643 643 643 12 2 Hendricks, BR 516 503 542 542 475 497 475 494 492 482 490 498 487 475 490 475 496 475 475 1 PAGE STATE BR 394 383 383 419 400 419 410 456 421 479 480 442 403 419 419 419 419 383 383 Hancock, 0 within Ohio Warrick ...... Vigo AREA Porter Hamilton, Harrison Whitley FMR Franklin, of Shelby Tipton Tippecanoe Floyd, Brown, Vanderburgh, Wells, Newton, Vermillion, COUNTIES Joseph Posey, Putnam Elkhart Counties Clay, Carroll Clark, St. Sullivan Dearborn, Bartholomew Boone, Howard, Benton, Delaware Lake, LaPorte Jasper Owen Gibson Greene Allen, Monroe Washington Madison Morgan, ...... • ...... •.••..•.•...... •...... •....• ...... BR ...... •.••...... •...... •..•••..••.•• ...... 950 922 967 970 949 991 908 864 ...... •..•.•....••.•• ...... 4 1014 1458 1173 1144 1162 1003 1002 1076 1232 1030 1263 1154 1165 1229 1088 1020 ....•...... •...•..•.•.• ...... •...... •...... •.•••.••.•..•.• ...... ••...... •...•.....•..•.•...... •.••••..•...••...• BR 930 918 919 988 943 961 948 956 946 905 884 861 801 886 864 889 844 1148 1065 1108 1008 1056 1005 1020 Fayette Fulton LaGrange Parke Pike Rush Jefferson 3 Clinton Spencer Knox Blackford Daviess DeKalb Henry Randolph Jackson Noble NONMETROPOLITAN Miami Marshall BR 697 643 687 643 643 658 694 643 644 678 643 823 843 805 769 763 792 704 768 737 763 721 711 726 2 HOUSING BR 938 913 943 931 943 955 977 938 865 BR 677 637 659 646 609 515 542 579 585 558 538 526 520 592 537 510 540 528 596 543 501 522 487 475 4 1046 1137 1007 1113 1091 1013 1 BR 928 948 958 918 948 960 999 913 929 974 914 852 892 894 801 801 830 861 869 876 835 815 859 BR 3 383 604 619 522 532 507 524 519 520 516 501 504 519 520 424 463 472 490 479 464 462 458 403 442 0 EXISTING . BR • 643 643 643 643 647 643 667 643 643 643 643 656 694 656 685 654 666 FOR 706 753 . 2 • BR 508 522 553 514 563 507 542 507 RENTS 486 499 478 483 . . . . . 1 . . • . BR ...... • 397 390 383 419 419 419 475 420 475 419 484 428 432 402 419 496 491 419 421 419 475 419 484 434 492 389 0 MARKET . . • ...... · HMFA · · ....••••...... ••.•••. FAIR · MSA...... HMFA ...... IN Final ...... •...... IN HMFA OH-KY-IN ...... HMFA...... IN HMFA...... MSA 2015 HMFA HMFA HMFA...... HMFA...... HMFA...... HMFA...... IN Porte, HMFA...... AREAS IN IN COUNTIES HMFA HMFA...... HMFA...... IN IN IN IN FY MSA...... IN HMFA...... IN IN IN FMR MSA...... MSA...... IN-KY IN KY-IN IN B - County, MSA...... MSA...... •....•.••...... •••••...•.•...... IN IN .•...... City-La County, HMFA...... •.••..•....•...... •...... •...... •.•.•..••••..••...... IN IN County, ...... •...... County, County, County, County, .••...... •..•...... • .•...... •...•...... IN Bend-Mishawaka, Haute, ...••.•.•..•.••.•...... County, Wayne, ...... SCHEDULE INDIANA Indianapolis, Fort Putnam Fountain Perry Pulaski Ripley Evansville, Lafayette, Columbus, Cass Crawford Carroll Cincinnati-Middleton, South Sullivan Scott Kokomo, Bloomington, Decatur Dubois Huntington Kosciusko Elkhart-Goshen, Jay Jennings Lawrence Jasper Louisville, Owen Terre Orange Gary, Gibson Greene Grant NONMETROPOLITAN Adams Anderson, METROPOLITAN Washington Michigan Muncie, Martin Montgomery

VerDate Sep<11>2014 18:08 Oct 02, 2014 Jkt 235001 PO 00000 Frm 00066 Fmt 4703 Sfmt 4725 E:\FR\FM\03OCN1.SGM 03OCN1 mstockstill on DSK4VPTVN1PROD with NOTICES EN03OC14.020 Federal Register / Vol. 79, No. 192 / Friday, October 3, 2014 / Notices 59805 BR BR 962 968 981 920 877 819 873 806 877 877 855 884 864 802 862 835 854 4 4 1044 1158 1014 1050 1018 BR BR 964 864 875 874 879 829 803 802 858 874 801 831 863 856 828 832 836 874 839 833 739 752 792 755 762 739 739 771 3 3 BR BR 643 643 632 694 654 600 656 656 619 609 600 656 593 593 593 593 593 593 593 593 593 593 593 593 593 13 2 2 Warren BR BR 514 552 542 542 524 502 438 467 472 454 485 485 438 450 499 438 438 483 438 482 467 1 1 PAGE STATE Polk, BR BR 396 453 427 419 419 402 435 438 406 402 402 402 406 419 479 496 413 486 435 438 402 402 406 402 402 376 390 369 390 0 0 within ...... Pottawattamie Madison, AREA FMR Grundy Mills, of Guthrie, Hawk, COUNTIES COUNTIES Counties Story Scott Benton Bremer Dubuque Black Linn Dallas, Johnson Harrison, Jones Woodbury Washington ...... •...... •...... BR ...... 998 971 827 ...... 4 1123 1167 1147 1202 1042 1220 1008 1420 1045 1194 Gordo Vista ...... BR 957 988 929 912 813 824 856 895 Iowa 1043 1182 1082 Fayette Franklin 1009 1095 Jasper 3 Chickasaw Calhoun Cerro Clay Clinton Steuben Union Boone Buena Hancock Henry Humboldt Davis Delaware Dickinson Greene Cass NONMETROPOLITAN NONMETROPOLITAN Adams Appanoose Warren White BR 626 603 619 674 621 802 807 737 745 710 787 737 708 2 BR BR HOUSING 907 979 962 905 902 959 911 904 859 856 847 819 877 792 792 792 792 BR 634 630 642 507 537 591 551 554 568 550 4 446 459 491 4 1027 1180 1050 1050 1052 1 BR BR 948 998 912 59 874 835 838 825 827 853 877 801 853 874 829 836 874 843 802 874 739 768 739 739 765 750 741 739 788 BR 3 369 505 528 526 456 414 443 448 480 421 411 463 3 0 EXISTING BR BR 656 643 643 691 612 639 666 677 644 593 593 593 593 593 593 593 593 593 593 593 593 593 593 593 593 FOR 2 2 BR BR 553 541 500 500 500 500 500 500 RENTS 452 478 446 472 445 492 465 470 458 481 438 450 457 1 1 ...... BR BR MSA 519 458 419 419 475 475 415 402 402 443 402 469 433 402 472 451 420 402 442 497 402 402 402 436 402 476 402 402 402 ...... 0 0 MARKET ...... MSA IA-IL ...... FAIR IA HMFA ...... HMFA Final IA Island, HMFA NE-IA MSA...... Moines, IA 2015 HMFA...... HMFA...... HMFA...... HMFA...... AREAS ...... 4 COUNTIES COUNTIES Des IA IA FY Falls, IA IA Bluffs, HMFA...... - FMR IA-NE-SD MSA...... IA County, B ...... IA MSA...... continued ...... •...•...... County, County, ...... •...... •...... IA County, City, Rapids, ...... City, Moines-West Moines ...... SCHEDULE IOWA Iowa INDIANA Ida Floyd Fremont Emmet Jones Jackson Cedar Cedar Cherokee Clayton Crawford Clarke Sioux Starke Switzerland Des Des Howard Benton Bremer Davenport-Moline-Rock Dubuque, Buchanan Butler Decatur Hamilton Hardin Omaha-Council Carroll NONMETROPOLITAN NONMETROPOLITAN Ames, Audubon Adair Allamakee Wabash Wayne METROPOLITAN Washington Waterloo-Cedar

VerDate Sep<11>2014 18:08 Oct 02, 2014 Jkt 235001 PO 00000 Frm 00067 Fmt 4703 Sfmt 4725 E:\FR\FM\03OCN1.SGM 03OCN1 mstockstill on DSK4VPTVN1PROD with NOTICES EN03OC14.021 59806 Federal Register / Vol. 79, No. 192 / Friday, October 3, 2014 / Notices BR BR 922 997 907 922 903 937 926 911 910 828 829 866 862 810 886 816 877 836 877 795 792 792 4 4 1123 1123 1123 1064 1020 1181 BR BR 934 900 934 995 825 826 827 863 859 807 882 858 813 874 833 874 874 833 816 860 825 825 875 779 770 792 768 751 3 3 BR BR 602 602 637 653 641 634 634 655 634 634 634 634 634 675 634 593 593 593 593 593 593 593 593 593 593 593 593 593 Wabaunsee 14 2 2 Wyandotte BR BR 521 506 523 500 500 500 523 535 523 450 445 438 467 438 438 482 463 444 468 438 471 476 469 484 473 469 484 484 1 PAGE 1 STATE Miami, Shawnee, BR BR 402 408 402 464 449 402 435 440 402 432 442 402 402 402 402 402 412 412 420 412 412 412 412 412 439 412 392 355 0 0 Linn, Riley within Osage, ...... Sedgwick AREA FMR Leavenworth, Jefferson, of Harvey, Pottawatomie, COUNTIES COUNTIES Franklin Jackson, Counties Sumner Douglas Doniphan Butler, Johnson, Geary, ...... •...... BR ...... 4 1132 1202 1360 1209 1311 1374 1069 1099 ...... Buren ...... BR 997 947 990 868 850 3 Page Plymouth Poweshiek Lucas 1193 1221 1118 Chase Cloud Comanche Cherokee Clark Sac Sioux Keokuk Bourbon Lee Barber Dickinson Taylor O'Brien Crawford NONMETROPOLITAN NONMETROPOLITAN Van Anderson Wayne Mahaska Monona Montgomery Winnebago Worth Marshall BR 677 639 891 815 760 776 701 723 2 BR BR HOUSING 910 983 993 900 900 968 922 960 998 830 877 819 842 890 879 876 872 847 860 860 792 BR 629 562 507 590 528 544 4 472 4 1015 1211 1092 1050 1050 1059 1091 719 1 BR BR 980 925 930 856 848 801 852 874 874 858 843 898 873 837 869 857 763 782 788 739 739 785 739 744 776 795 739 790 790 BR 3 559 586 453 498 469 469 417 439 1011 3 0 EXISTING BR BR 681 643 684 630 609 672 634 665 634 634 660 634 634 641 634 593 593 593 593 593 593 599 593 593 598 593 FOR 737 747 593 2 2 BR BR 508 500 545 514 512 535 534 557 552 438 481 494 438 498 460 481 462 450 480 442 498 469 469 469 489 471 442 467 RENTS 1 1 BR BR 553 563 512 548 461 402 436 402 402 402 499 427 402 402 402 406 413 402 434 477 439 402 412 412 429 412 412 417 412 396 0 0 MARKET ...... FAIR ...... Final HMFA HMFA...... 2015 HMFA...... MSA...... KS AREAS COUNTIES COUNTIES FY KS MO-KS MSA...... - FMR MSA...... HMFA...... MO-KS B KS MSA...... KS ...... County, KS ...... City, KS ...... County, ...... •...... continued Alto ...... Joseph, SCHEDULE IOWA *Kansas Palo Pocahontas Franklin Jefferson Louisa Cheyenne Cowley Chautauqua Clay Coffey Sumner Shelby St. KANSAS Brown Kossuth Lyon Ringgold Barton Decatur Lawrence, Tama Topeka, Osceola NONMETROPOLITAN NONMETROPOLITAN Union Allen Atchison Wapello Webster Winneshiek Wright METROPOLITAN Wichita, Marion Monroe Muscatine Manhattan, Mitchell

VerDate Sep<11>2014 18:08 Oct 02, 2014 Jkt 235001 PO 00000 Frm 00068 Fmt 4703 Sfmt 4725 E:\FR\FM\03OCN1.SGM 03OCN1 mstockstill on DSK4VPTVN1PROD with NOTICES EN03OC14.022 Federal Register / Vol. 79, No. 192 / Friday, October 3, 2014 / Notices 59807 BR 940 937 922 937 922 922 937 922 962 922 937 989 929 969 922 852 847 847 847 847 890 869 4 1030 1116 1044 1060 1048 1123 1047 1123 1041 1011 Pendleton BR 934 912 949 934 934 934 934 934 925 937 813 897 897 861 849 885 829 845 810 858 855 891 845 860 790 790 790 795 790 790 790 790 3 BR 634 634 676 634 634 634 634 634 634 634 634 634 666 634 634 634 634 634 634 634 650 675 634 634 694 634 634 636 634 634 707 720 Kenton, 2 15 BR 535 544 535 518 535 535 535 535 535 544 580 532 511 494 499 481 469 471 471 469 492 495 495 469 480 499 483 471 482 470 469 469 1 PAGE STATE Gallatin, BR 508 533 412 412 412 412 412 412 412 412 412 412 412 433 491 412 412 412 412 412 412 422 444 412 412 459 412 412 468 413 465 412 0 within ...... Campbell, AREA ······· FMR Trigg Webster Warren of Larue Bracken, COUNTIES Edmonson, Christian, Boone, Hardin, Henderson, Grant Counties ...... BR ...... 945 ...... 4 1012 1173 1122 1318 1003 ...... BR 918 837 881 3 Ford Pawnee Rice Pratt Ellsworth 1065 1035 1096 Seward Sherman Stevens Saline Stafford Harper Hodgeman Kearny Kiowa Reno Rush Elk Lane Logan Graham Greenwood Trego Gray Osborne NONMETROPOLITAN Nemaha Ness Washington Wilson McPherson Marshall Morris Mitchell BR 659 769 781 744 721 707 2 HOUSING BR 905 902 956 922 999 922 922 937 937 922 967 937 847 847 847 847 847 847 847 847 866 861 BR 579 599 564 558 523 499 4 1032 1123 1061 1181 1189 1090 1178 1064 1034 1 BR 907 BOO 948 980 924 902 934 934 909 934 912 922 857 884 881 805 865 821 881 854 841 856 828 884 790 790 790 790 790 790 790 790 790 790 790 BR 525 560 520 484 463 425 3 0 EXISTING . . . . . BR 634 634 697 634 634 634 634 642 634 659 634 634 634 634 634 634 634 665 634 634 634 634 691 634 634 634 634 634 634 665 634 FOR 710 761 2 BR 543 535 528 562 535 538 509 535 550 506 535 502 541 511 RENTS 469 469 471 471 469 469 469 469 490 469 493 469 469 471 469 471 471 469 529 1 BR ...... 506 412 451 453 412 412 412 461 495 412 417 412 428 412 412 412 412 412 432 412 412 412 412 449 412 412 412 412 412 412 432 412 377 0 MARKET ...... HMFA FAIR ...... •...•.. Final ...... OH-KY-IN ...... HMFA 2015 HMFA MSA MSA HMFA AREAS COUNTIES FY KY KY KY FMR TN-KY IN-KY B - ...... Green, .....•...... •...... continued ...... • ...... County, ...... SCHEDULE Finney Lyon Rooks Phillips Elizabethtown, Evansville, Ellis Cincinnati-Middleton, Clarksville, scott Smith Sheridan Stanton KANSAS KENTUCKY Hamilton Haskell Kingman Rawlins Republic Bowling Edwards Lincoln Russell Jewell Labette Thomas Gove Grant Ottawa Grant Greeley NONMETROPOLITAN Neosho Norton Wallace Wichita Woodson METROPOLITAN Marion Meade Montgomery Morton

VerDate Sep<11>2014 18:08 Oct 02, 2014 Jkt 235001 PO 00000 Frm 00069 Fmt 4703 Sfmt 4725 E:\FR\FM\03OCN1.SGM 03OCN1 mstockstill on DSK4VPTVN1PROD with NOTICES EN03OC14.023 59808 Federal Register / Vol. 79, No. 192 / Friday, October 3, 2014 / Notices BR 913 962 988 988 958 988 994 825 825 825 801 825 816 854 832 807 825 891 804 896 838 790 750 782 746 746 746 782 782 782 746 4 1033 1086 Trimble BR Woodford 990 699 695 695 695 695 695 695 801 822 822 852 822 822 822 813 824 804 822 856 822 801 780 736 746 765 787 798 785 759 723 720 768 760 756 3 BR 613 672 667 558 558 558 558 558 561 558 558 558 558 558 582 558 558 558 559 558 558 558 558 558 558 558 558 558 568 561 558 558 558 583 Scott, 16 2 Spencer, BR 549 471 412 453 471 471 471 442 471 491 412 443 412 412 412 412 471 412 471 412 420 416 442 413 431 473 427 470 430 PAGE 1 STATE Oldham, BR Jessamine, 419 410 419 450 469 419 454 419 422 419 419 419 419 419 414 437 419 428 451 410 471 441 410 410 419 410 410 419 410 419 410 457 417 493 422 413 439 410 428 0 within ...... McLean Fayette, Jefferson, AREA ······· FMR Clark, Henry, Hancock, of Greenup COUNTIES ...... Counties Shelby Boyd, Bourbon, Daviess, Bullitt, Nelson Meade ...... •...... •...... BR ...... 929 965 956 ...... •...... 4 1237 1117 1035 1154 ...... •...... •...... •...... •...... BR 926 948 951 843 869 Fleming Franklin Lewis 1105 1020 Leslie 3 Caldwell Clay Crittenden Carlisle Boyle Hopkins Knox Ballard Bath Breckinridge Harlan Hart Lawrence Lyon Johnson Livingston Elliott Owen Garrard Grayson Carter Nicholas NONMETROPOLITAN Allen Mason Monroe Morgan McCreary Magoffin Marshall Mercer BR 638 653 643 672 776 737 708 2 BR HOUSING 965 988 988 946 997 999 988 988 988 825 894 896 825 825 820 842 823 826 807 782 797 782 782 786 776 746 746 746 BR 593 592 523 519 509 483 497 4 1031 1004 1098 1027 1 BR 900 909 695 695 695 695 695 695 695 695 822 829 822 892 822 822 820 878 804 843 793 783 717 760 786 715 766 769 794 746 725 758 770 729 714 790 BR 380 508 507 520 449 442 3 0 EXISTING BR 666 625 611 618 620 558 566 558 558 558 558 558 558 558 558 558 558 558 558 558 564 558 558 558 585 558 558 576 580 558 558 FOR 711 567 558 2 BR 600 530 520 515 RENTS 412 447 471 471 412 442 473 471 421 471 412 442 412 471 412 420 486 476 432 471 471 426 430 1 BR 344 368 332 527 534 410 416 418 419 419 462 459 410 419 419 449 426 436 419 419 419 419 410 424 419 476 419 410 456 413 483 473 429 419 419 423 436 489 416 419 365 0 MARKET ...... FAIR MSA ...... Final MSA WV-KY-OH KY ...... 9 7 4 2015 HMFA...... HMFA...... HMFA...... HMFA...... AREAS COUNTIES FY KY KY KY MSA. FMR KY-IN KY B - ...... continued .....•...... County, County, ...... •...... County, ...... •...... SCHEDULE Floyd Fulton Lee Louisville, Jackson Letcher Estill Calloway Casey Clinton Shelby KENTUCKY Huntington-Ashland, Barren Bell Butler Harrison Hickman Knott Logan Lexington-Fayette, Breathitt Laurel Lincoln Owensboro, Cumberland Graves Green Ohio Carroll Nelson NONMETROPOLITAN Adair Anderson METROPOLITAN Meade McCracken Madison Marion Martin Menifee Metcalfe Montgomery Muhlenberg

VerDate Sep<11>2014 18:08 Oct 02, 2014 Jkt 235001 PO 00000 Frm 00070 Fmt 4703 Sfmt 4725 E:\FR\FM\03OCN1.SGM 03OCN1 mstockstill on DSK4VPTVN1PROD with NOTICES EN03OC14.024 Federal Register / Vol. 79, No. 192 / Friday, October 3, 2014 / Notices 59809 Feliciana Charles, BR BR 927 994 945 953 981 935 809 873 831 810 890 852 838 746 4 4 1016 1089 1010 1314 1025 1128 1020 1111 1231 St. Livingston, West BR BR 963 901 924 924 924 959 695 807 887 802 888 808 851 855 830 889 892 898 798 776 739 781 781 781 786 3 1029 1051 3 Rouge, BR BR Bernard, 623 627 627 627 627 627 627 627 627 627 627 627 648 628 651 660 644 558 558 558 578 832 713 742 593 2 2 17 Feliciana, St. Baton BR BR 603 528 530 525 529 524 527 529 549 514 557 471 460 448 469 463 463 463 469 463 476 463 412 702 1 1 PAGE East STATE West Tammany BR BR 523 599 512 506 547 519 419 410 457 410 445 419 472 424 427 493 425 493 493 460 460 493 466 421 473 460 0 0 St. Rouge, within Plaquemines, ...... Soto Helena, AREA De Baton St. Martin Baptist, FMR Cameron St. East Terrebonne Orleans, Union the Caddo, of Coupee, Rapides John COUNTIES COUNTIES ...... •.•...... •..•.••. Pointe Lafourche, Iberville Calcasieu, St. Bossier, Lafayette, Jefferson, Counties Grant, Ouachita, Ascension, ...•...... ••..•...... •...... •...... •...... •••.•...... •••••.• Davis .•..•...... •...•.• .....•...... •....•...... •...... •...... •.• ....•...... •.•...... BR ...... •...... •.•••.•.•• ...... •...... •...... •...... •.•..••.•• 990 902 .....••.•...... •..•..•...... 4 1058 1144 1223 1162 1443 1148 1311 ...... •.•.•.•...... •....•..•.•...... Carroll ...... Landry River BR 949 922 993 957 989 847 841 Iberia 3 Rowan Perry Powell Robertson 1192 1049 Evangeline Catahoula Simpson Sabine st. Red Bienville Lincoln Jefferson Todd Tangipahoa Concordia NONMETROPOLITAN NONMETROPOLITAN washington Allen Avoyelles Vermilion Washington Whitley West Morehouse 5 BR 627 67 950 680 842 797 740 754 712 2 HOUSING BR BR 938 933 958 945 921 960 894 835 846 838 838 884 838 838 846 782 782 798 782 BR 669 636 677 559 547 565 512 4 463 4 1050 1108 1019 1179 1001 1111 1111 1001 767 1 BR BR 904 924 924 924 924 906 924 695 833 843 837 802 897 822 842 815 864 854 731 793 795 739 744 770 781 781 BR SOB 648 604 549 548 536 475 431 477 1098 3 3 0 EXISTING BR BR 627 627 627 627 627 627 627 627 627 627 627 627 627 627 627 681 639 558 572 558 558 597 558 558 565 882 FOR 702 2 2 BR BR 652 519 529 520 529 529 500 574 529 507 529 RENTS 426 412 441 456 429 479 493 463 463 463 463 1 1 BR BR ...... 515 506 550 526 419 442 441 419 444 445 419 425 433 484 493 487 493 493 490 460 481 469 460 472 460 493 476 460 493 493 342 365 ...... •...... 0 0 MARKET MSA ...... •.....••••..•.••••. MSA • FAIR LA LA MSA ...... LA Final HMFA ....••....•...... •••.••...•. City, LA 2015 AREAS MSA COUNTIES COUNTIES HMFA...... FY MSA...... LA MSA...... FMR LA ...... •...... LA Cane-Thibodaux, B - LA MSA...... ••...... •.• •...... •. Parish, ...... •...... ••..••.••... continued ...••...... •.••.•••...• .•••.••.....•..•...... •• ...... LA ...... •...... •..•.•...... •..•...... •...... •...•.•...... •..•...•.••. •...... •....••.••. Rouge, Charles, Carroll ...... James Orleans-Metairie-Kenner, Mary Salle SCHEDULE Iberville LOUISIANA Franklin Richland Pike...... Pulaski...... Caldwell Claiborne Shreveport-Bossier st. St. Union...... KENTUCKY Baton Houma-Bayou Lake Beauregard La Lafayette, East Jackson Rockcastle...... Russell...... Tensas Taylor...... Owsley...... New Natchitoches NONMETROPOLITAN NONMETROPOLITAN Alexandria, Acadia Assumption vernon METROPOLITAN Webster Winn Wayne...... Monroe, Madison Wolfe......

VerDate Sep<11>2014 18:08 Oct 02, 2014 Jkt 235001 PO 00000 Frm 00071 Fmt 4703 Sfmt 4725 E:\FR\FM\03OCN1.SGM 03OCN1 mstockstill on DSK4VPTVN1PROD with NOTICES EN03OC14.025 59810 Federal Register / Vol. 79, No. 192 / Friday, October 3, 2014 / Notices UT, town, UT, town, town, town, town, town, town, UT, town, town, town town, town, city, town, Bath town, town, Lyman Twombly plantation, town, town, town, town, Perkins Town town, town, town, town, Island Falls Naples Medway town, Carmel Kittery West town, town, city, city, Hermon Arundel town town, town, Penobscot Shapleigh Old UT, town, town, Kennebunk Woodville town, Dexter Long town, town town, town, town, Seboeis Durham town, town, town, town, Bridgton Lisbon Bath Turner town, town town, Standish Lagrange Lincoln town, town, Brewer Mechanic Enfield Greenbush town, town, Chester UT, Veazie Argyle town, town, Raymond Central Newburgh city, Stetson UT, Ogunquit town, town, town town, 18 Passadumkeag Eliot city, Sebago Limerick town, city, Hollis town, town, town, Freeport city, Harrison Topsham Winn Alfred Maxfield town, town, Hampden East Elizabeth Gray Georgetown town, city, Sanford Dayton UT, Yarmouth Milford town, town, town, STATE Burlington town, town, town, UT, PAGE Prentiss Beach Corinth Auburn town, Kingman town, town, town, town, town, Falls Levant Cape Baldwin town, town, town, town of Sabattus Bangor Lewiston Alton Arrowsic town, town, town, Portland Chase city, Reservation, Garland town, Casco Edinburg of of town~ town, town town, of of of within town, Pownal Portland Berwick town, Penobscot Lebanon York Buxton Berwick Orchard Charleston Acton Whitney towns town, town, Saco plantation, town, Gorham South Stacyville Mount towns town, towns town, Island Falmouth Richmond of of of AREA towns towns towns Livermore Harpswell Lee Old Glenburn Cornish Windham Wells town, town, North Bradley town, town, Corinna Drew Bowdoinham Hudson North town, FMR Plymouth Kenduskeag Leeds Mattawamkeag town, town, town, town, Poland County Orrington town, towns town, towns towns Exeter town, town, town, town, town, town, Indian Island County city, city, of County town, town town, County County County town, town, town, town, town, plantation, plantation, town, town, town, town, town, town town, Yarmouth Berwick town, Island Millinocket County County County Gloucester Penobscot Patten Frye Phippsburg Parsonsfield Eddington East Chebeague Cumberland Carroll Clifton Scarborough South Springfield Bowdoin Holden Brunswick Bradford Dixmont Howland Biddeford Kennebunkport Livermore Etna Lakeville Lowell Limington Orono Greene Newport North Newfield New Wales Webster Westbrook Woolwich Waterboro Minot Millinocket Penobscot Penobscot Components Cumberland Cumberland Sagadahoc York Androscoggin York York BR 4 1033 1077 1492 1205 1588 1425 BR 973 932 1037 1333 1132 1421 1245 1289 3 BR 932 917 666 833 873 772 1132 1527 1533 2 1074 HOUSING BR 660 591 562 869 860 703 736 724 1 BR 693 627 571 559 499 448 730 786 0 EXISTING FOR RENTS •...... •.. MARKET ...... ••.••.••..•..••. HMFA FAIR HMFA ME HMFA .•...... •...•..•..•...•. Final HMFA...... (part) (part) HMFA...... MSA Berwick, ME 2015 ME ME AREAS ME (part) ...... •..••....•...... ••. FY - FMR HMFA...... ME County, B HMFA County, County, ME ME County, SCHEDULE Penobscot Portland, Cumberland Sagadahoc York-Kittery-South Bangor, Lewiston-Auburn, York MAINE METROPOLITAN

VerDate Sep<11>2014 18:08 Oct 02, 2014 Jkt 235001 PO 00000 Frm 00072 Fmt 4703 Sfmt 4725 E:\FR\FM\03OCN1.SGM 03OCN1 mstockstill on DSK4VPTVN1PROD with NOTICES EN03OC14.026 Federal Register / Vol. 79, No. 192 / Friday, October 3, 2014 / Notices 59811 UT, town, town, town, UT, town, town, town, town, town, town, town, town, town, UT, town, town, town, town, town, town, Hancock plantation, UT, town, town, town, Hill town, town Isle Lamoine Otis Wade town, town, Ludlow UT, Aroostook town, East Litchfield Cary Hersey Trenton plantation, Monticello town, Isles plantation, Blue Readfield town, Strong UT, Desert Canada plantation, plantation, plantation, town, town, town, town, town, Franklin Benton Grand town, town, Bancroft Harbor Madrid town, town, Farmingdale Sullivan Aroostook town, town, town, town, Farmington Cyr city, city, UT, John New plantation, town, town, Reed Vernon Dallas Frenchville Perham Franklin Carthage Mount Mapleton town, Buren Northwest North town, town, 19 Falls St. Osborn town, town, Easton Hancock Cranberry plantation, Winter town, town, UT, Bucksport Aroostook Central city, Van Westfield Mount town, town, town, Frenchboro Caribou Sorrento Harbor Tremont Winterville Merrill town, town, Franklin Littleton UT, Rangeley plantation, town, town, PAGE Eastbrook counties Hallowell Randolph Central town, town, town, Island Oxbow town, Isle South Haynesville Bar Belgrade plantation, Ashland town, town, town, town, Eustis Island Clinton Kent plantation, town, town, town, town, town, town, Crystal Kingfield town, town, South Reservation, Valley West town, town, Pond Lake city, Sweden Stonington town, town, UT, Hancock Orland town, town, town, town, Fort Francis city, Glenwood UT, Vineyard Madawaska town, Waltham town, Presque Coplin UT New town, Isle Island Caswell UT, Weston town, Island Eagle St. Great Nashville New Washburn Monmouth Marshall Franklin Sedgwick Stockholm Linneus Masardis town, Amity Rangeley Brooksville Jay Orient town, Pittston Connor China Central Smyrna Houlton Gardiner Aurora town, town, town, Franklin nonmetropolitan Hammond Bridgewater Deer Wyman Augusta Weld town, town, Swans plantation, UT, town, town, town, town, town, town, town, Carrabassett town, town, town, Indian city, Hancock Harbor town, town, town town, town, town, plantation, plantation, town, town, town, town, town, town, town, town, Lake town, town, town, town, town, town, Island Lake Hill town, River within town, Fairfield Central Brook Hill plantation, Limerick Sharon Agatha Industry Fort Penobscot Portage Penobscot Fayette Limestone East Phillips Chelsea Castle Chesterville Castine Sherman Sandy Square Southwest Surry St. Dedham Blaine Dyer Hamlin Hodgdon Brooklin Ellsworth Towns Temple Chapman Oakfield Gouldsboro Oakland Garfield Northwest New New Avon Amherst Allagash Verona Albion Macwahoc More Wallagrass Westmanland Woodland Wilton Mars Mariaville Manchester BR 942 4 1256 1133 1024 BR 961 883 860 1116 3 BR 679 848 709 766 2 HOUSING BR 666 598 599 1 8 BR 58 548 564 573 518 0 EXISTING FOR RENTS MARKET FAIR Final .•...... •...... 2015 ME ME...... ME...... COUNTIES ME FY B - County, County, County, County, continued SCHEDULE Franklin Hancock Kennebec NONMETROPOLITAN Aroostook MAINE

VerDate Sep<11>2014 18:08 Oct 02, 2014 Jkt 235001 PO 00000 Frm 00073 Fmt 4703 Sfmt 4725 E:\FR\FM\03OCN1.SGM 03OCN1 mstockstill on DSK4VPTVN1PROD with NOTICES EN03OC14.027 59812 Federal Register / Vol. 79, No. 192 / Friday, October 3, 2014 / Notices UT, town, town, UT, town, town UT, town, town, town, town, town, town, town, town, town, town, town, town, town, town, town, Milton town, town, town, town, Somerset UT, Bremen plantation, plantation, plantation, town, town, Gardiner UT, Edgecomb Monson town, Jackson town, Stoneham Blanchard Warren Moscow town, Shirley UT, Albans Monroe Buckfield Hanover town, town, town, town city, Harmony Willimantic town, Cushing Otisfield plantation, West town, town, town, Burnham UT, town, Island St. Lincoln town, town, town, Brighton Dixfield town, town, town, town, town, Northeast UT, Whitefield Thomaston town town, town, Island Pittsfield Southport Dennistown Nobleboro Upton town, town, Porter Piscataquis Haut Jackman Mexico Milo town, 20 Smithfield Harbor plantation, town, town, Ridge Cove Rockland Oxford Vassalboro town, town, au Dresden Dover-Foxcroft River Woodstock town, town, Kingsbury South Sebec town, town, town, town, town, Lauds town, town, Islesboro UT, Wayne town, PAGE Forks counties Caratunk Norway town, Isle Criehaven South Hiram Brooks Greenwood Vinalhaven Winthrop town, town, town, Ripley Fairfield Brownfield Beaver Moose Muscle town, town, town, Boothbay Northwest Wellington town, Island Peru UT, Denmark Bingham Lincolnville The town, city, Sweden Unity plantation, plantation, town, Palmyra Head Bristol town, town, town, town, town, town, town, town, UT, UT, Medford town, town, town, town, Paris Cornville Newcastle town, town, town, town, town, town, Skowhegan George Norridgewock UT, town, town, Owls Oxford South Hope Guilford UT, Freedom Brownville Canaan Westport West Union Camden St. plantation, plantation, UT, Hebron Highland Jefferson Gilead Sangerville Damariscotta Bethel Rumford Embden Belmont Winslow Mercer town, Paris nonmetropolitan Waterville Magalloway town, Canton Starks North Atkinson Athens town, town town, town, Liberty Sumner Sidney Boothbay plantation town, town town, town, town, town, town, Isle Piscataquis Piscataquis Lake Somerset plantation, town, town, town, town, town, plantation, Ridge gore, town, town, town, town, town, town, town, city, Somerset town, town, town, town, town, town, town, town, Haven within town, town, town, town, Forks View Portland Friendship Fryeburg Lake Parkman Pleasant Frankfort Cambridge Central Seboomook Stow Solon Somerville Southeast Rome Knox Rockport Hibberts Byron Hartford Roxbury Bowerbank Hartland Belfast Bristol Lovell Detroit Towns Thomaston Oxford Greenville North Newry Northeast Northwest New Alna Andover Abbot Anson Vienna Appleton Windsor Washington Monhegan Waldoboro Wiscasset Waterford West Matinicus Madison BR 900 4 1132 1204 1150 1019 BR 930 852 1182 1232 1055 1015 1081 3 BR 922 657 689 847 746 794 2 HOUSING BR 672 627 547 670 554 748 1 BR 504 515 599 559 491 743 0 EXISTING FOR RENTS MARKET FAIR Final ...... •••..•.•...... •. ME 2015 ME...... COUNTIES ME...... FY ME...... ME...... ME...... County, B - County, County, County, continued County, County, SCHEDULE Piscataquis Somerset Knox Lincoln Oxford NONMETROPOLITAN MAINE Waldo

VerDate Sep<11>2014 18:08 Oct 02, 2014 Jkt 235001 PO 00000 Frm 00074 Fmt 4703 Sfmt 4725 E:\FR\FM\03OCN1.SGM 03OCN1 mstockstill on DSK4VPTVN1PROD with NOTICES EN03OC14.028 Federal Register / Vol. 79, No. 192 / Friday, October 3, 2014 / Notices 59813 town, UT, city, town, town, town, town, town, town, town, UT, town, BR Bourne Calais George's 4 1117 1534 1792 town town, town, Palermo Falls washington Wesley Machias city, BR Howard, Eastham town, town, town, Pembroke town, town, Prince 1041 1139 1299 3 Danforth town, town, Thorndike Washington town, town, Town town, Columbia BR central 836 866 town, 2 1043 21 Winterport Meddybemps Cherryfield Harford, town, Talmadge North Lubec East Waite town, Searsport BR Beddington 680 640 801 STATE Harrington Reservation, Dennis Baileyville Northport town, town, 1 PAGE counties Reservation, Montgomery, town, Cutler city, STATE Robbinston town, town, town Barnstable town, town, town, town, town, BR Carroll, town, town, town, 649 636 796 city of 0 Point Swanville within Waldo town, town, Columbia Township within Eastport Steuben Beals towns Frederick, Charlotte plantation, AREA Marshfield town, town, Chatham Jonesport Northfield AREA Vanceboro Morrill Searsmont Indian FMR Pleasant Dennysville Baltimore, Baltimore Alexander Whitneyville town, town, Crawford nonmetropolitan town, town, FMR Princeton Stream Unity of County town, town, town, town, town, plantation, town, Charles, city Springs of town, town, town, town, plantation, town, Lake Bluffs Anne•s, within town, Arundel, Machias COUNTIES Brewster Prospect Passamaquoddy Passamaquoddy Perry East Jonesboro Components Codyville Cooper Counties Centerville Cecil Somerset Stockton Roque Baring Deblois Barnstable Towns Troy Grand Topsfield Queen Columbia Calvert, Anne Addison Allegany Whiting Washington Wicomico Montville Machiasport Milbridge ...... BR BR BR 965 997 ...... 2202 4 4 4 1053 1713 1203 1308 1546 2451 ....•.....•.•...... BR BR BR 868 875 878 3 1574 1186 1186 1951 1440 2008 3 3 Dorchester Kent Talbot NONMETROPOLITAN BR BR BR 643 922 681 698 857 2 2 1232 1567 1156 2 1234 1614 1695 1458 HOUSING BR 874 BR BR BR 920 985 662 959 572 542 681 589 4 1257 1337 2187 1 1 1 1230 1316 BR 832 BR BR BR 520 545 549 833 814 825 459 415 1120 1801 1097 3 0 0 0 1055 1167 EXISTING •. BR 654 841 881 FOR .... 2 1239 MSA HMFA BR 663 545 RENTS 1 1045 BR 617 622 508 834 sao 0 MARKET PA-NJ-DE-MD DC-VA-MD FAIR ••...••...••••...•••..•...... Final ...... HMFA ...... HMFA MSA •...... •.•...... •.•...• ME MD ...... 2015 HMFA MSA AREAS AREAS MD MA COUNTIES COUNTIES FY HMFA MD HMFA FMR FMR MD MD-WV county, B - Town, MD ...... •...... • .•....•.•...... County, city, ...... •..•...... continued Mary's SCHEDULE *Baltimore-Towson, *Philadelphia-Camden-Wilmington, Columbia Cumberland, Caroline Somerset Salisbury, St. Hagerstown, Barnstable Garrett NONMETROPOLITAN NONMETROPOLITAN washington MAINE MARYLAND METROPOLITAN Washington-Arlington-Alexandria, Worcester MASSACHUSETTS METROPOLITAN

VerDate Sep<11>2014 18:08 Oct 02, 2014 Jkt 235001 PO 00000 Frm 00075 Fmt 4703 Sfmt 4725 E:\FR\FM\03OCN1.SGM 03OCN1 mstockstill on DSK4VPTVN1PROD with NOTICES EN03OC14.029 59814 Federal Register / Vol. 79, No. 192 / Friday, October 3, 2014 / Notices town, town, town, town, town, town, town, town, town, city, town, city, town, town city, city, city, town, town, town, town, town, town, Peru town, town, town, Town town, city, Hudson town, town, town, town, Reading Plymouth Stoneham Tyringham Wenham Wellfleet Westwood Malden Melrose town, town, town, town, town, Peabody Sharon Everett Middleton city, Dedham Weston town, city, Hamilton Orleans Millis town, Mattapoisett city Beverly Norwood town, town, town, town, town, town, town, town, city, city, Salisbury Braintree Otis Williamstown Wakefield town, town, town, city, Kingston Bridgewater town, town, town Becket Halifax Town town, town, city, Bedford Duxbury Arlington Monterey town, Chelsea town, town, town, Rochester city, town, town, town, 22 city, city, Truro Woburn town, town, Hopkinton town, town, Florida Reading Medford town, town, town, town, town Pembroke Concord Burlington Littleton city, Sheffield Randolph Town Topsfield Wayland Medway Wellesley Wareham town town, Franklin Cohasset STATE Somerville Mashpee Marion town, town, town PAGE Hull Salem Adams Marblehead town, city Newburyport Norfolk Ashford town, town, Gloucester North Ayer town, town, town, Lynnfield Townsend Alford Acton town, town, town, town, town, town, Carver city, city, Abington town, town, town, town, town, Hancock Bellingham Boston New Avon Whitman town, town, town, Stockbridge Town of of North within town, town, of of Amesbury town, town, Plympton city, Bridgewater of of of Wrentham town, city, Sandwich of Savoy Maynard town, town, town, Holliston Egremont Quincy Norwell AREA West Winchester towns town, towns Lincoln Carlisle Canton Walpole towns towns Rowley Shirley Scituate Harwich Medfield East towns towns towns town, city, Lynn Boxborough Hingham Essex Watertown town, FMR Lakeville Swampscott Newbury Newton Needham Winthrop town, towns Foxborough city, Ashland town, town, town, town, town, town, Sudbury town, town, town, city, of town, town town, town, town, town, County city, Town County town town, town, town, town, County city, County town, town, town, town, town, County County County city, town, town, Barrington Washington town, Bridgewater County Marlborough Ipswich Framingham Falmouth Provincetown Revere Lexington Plainville Cambridge Clarksburg Saugus Stow Sherborn Stoughton Sandisfield Yarmouth Danvers Rockport Belmont Brookline Dover Holbrook Hanover Rockland Brockton Hanson Great Nahant Natick New Ashby Weymouth Mount Washington Windsor Waltham Wilmington West Manchester-by-the-Sea Marlborough Milton Marshfield Middleborough Plymouth Plymouth Components Suffolk Berkshire Essex Norfolk Norfolk Middlesex BR 4 1291 1531 2023 BR 1059 1861 1446 3 BR 836 1133 2 1494 HOUSING BR 867 705 1 1196 BR 675 862 0 1071 EXISTING FOR RENTS ..••.•...•..••. MARKET ...... HMFA FAIR HMFA MA-NH ...... Final (part) 2015 MA AREAS FY continued FMR HMFA...... B - County, MA SCHEDULE Berkshire Boston-Cambridge-Quincy, Brockton, MASSACHUSETTS METROPOLITAN

VerDate Sep<11>2014 18:08 Oct 02, 2014 Jkt 235001 PO 00000 Frm 00076 Fmt 4703 Sfmt 4725 E:\FR\FM\03OCN1.SGM 03OCN1 mstockstill on DSK4VPTVN1PROD with NOTICES EN03OC14.030 Federal Register / Vol. 79, No. 192 / Friday, October 3, 2014 / Notices 59815 town, town town, city, town, town, town town, city, town, town, town, city, town, town, town, town, town, Town city, town, city, town, town, town, town, Russell Wales Town town, city, Lee town, town, town, Conway town, town town, Ludlow town Stockbridge River Northfield Wilbraham town, city, city Southborough town, town, town, Fitchburg Lancaster city, Lowell town, town, Chelmsford Blandford town, Leyden Seekonk Shutesbury Greenfield town, Fall city, Bernardston Belchertown Hatfield town, town, town Petersham city, city, Hampden Blackstone Dartmouth town, Cheshire city Dighton Hardwick Town town, town, town town, Easthampton Raynham town, town city, Boxford Bedford Northampton town, town, town, town, 23 Tolland Winchendon town, town town, town, city, Haverhill Town town, town, town, town, Salem Tyngsborough Colrain town, town town, town, Lunenburg New town, town, Palmer Chicopee Southampton Town Westhampton Methuen town, town, Richmond STATE Taunton Groton Gill Westport town, PAGE Longmeadow Lanesborough city, New Whately town, Hopedale Millville town, town, Hadley town, Rehoboth Leverett city, Berlin Billerica Newbury Ashburnham Adams Amherst Athol town, town, town, town, town, Shelburne Sunderland Ashfield town, town, town, town, city, Berkley Easton Agawam Acushnet Attleboro town, town, town, city, Braintree of of of of of of Granville within town, town, Springfield of of Andover town, of of of of of West town, town, Cummington Ware Worthington town, of New Groveland AREA Middlefield towns towns towns towns town, towns towns Freetown Erving Chester Springfield Tewksbury Norton Westminster West towns towns Charlemont Swansea Merrimac towns town, towns towns towns towns Leominster Holyoke Wendell town, town, town, FMR Plainfield Rowe Harvard Heath Dunstable Hinsdale Granby Montgomery Milford Montague towns town, Pittsfield town, town, town, town, town, town, town, town, town, city, of town, town town, County County County County County County city, town, town, County County city, town, town, town, town, town, town, town, town, town, town, County County County County County town town, Hadley Andover Attleborough Longmeadow County Pepperell Fairhaven Lenox Pelham Chesterfield Somerset Southwick South Bolton Buckland Deerfield Hawley Lawrence Dracut Dalton Brimfield Holland Huntington Hubbardston East Templeton Orange Georgetown Goshen Gardner North North Upton Mendon Monroe Warwick Westford Monson Westfield Williamsburg Mansfield Franklin Franklin Essex Components Hampden Berkshire Hampshire Bristol Bristol Bristol Bristol Worcester Worcester Worcester Middlesex BR 4 1627 1407 1178 1445 1438 1839 1518 1461 1561 1128 BR 1833 1277 1340 1199 1455 1381 1051 1045 1176 1154 1314 1299 1394 1058 3 BR 927 944 924 844 839 816 1043 2 1076 1286 1025 1168 1109 HOUSING BR 910 688 802 828 864 795 732 712 708 773 739 1 1016 BR 922 610 678 673 686 616 550 531 700 798 750 760 0 EXISTING FOR RENTS MARKET .••.••.....•..•...... •...... ••...... ••.••.••..•..••...... •...... FAIR HMFA HMFA HMFA HMFA HMFA MA MA MA HMFA Final RI-MA MA (part) .•...... •...... •...... •.. HMFA...... 2015 County, County, AREAS MA HMFA HMFA River, HMFA...... MA FY HMFA...... continued FMR MA MA MA B - HMFA...... MA-NH County, MA Worcester Worcester Bedford, SCHEDULE Fitchburg-Leominster, Franklin Providence-Fall Easton-Raynham, Lowell, Pittsfield, Springfield, Eastern Lawrence, Taunton-Mansfield-Norton, New MASSACHUSETTS METROPOLITAN Western

VerDate Sep<11>2014 18:08 Oct 02, 2014 Jkt 235001 PO 00000 Frm 00077 Fmt 4703 Sfmt 4725 E:\FR\FM\03OCN1.SGM 03OCN1 mstockstill on DSK4VPTVN1PROD with NOTICES EN03OC14.031 59816 Federal Register / Vol. 79, No. 192 / Friday, October 3, 2014 / Notices town, town, town, town, town, city town, city, BR Clinton 4 1032 1122 1139 1043 1204 Sutton Gosnold town, town, town Millbury Brookfield Town BR Worcester 948 920 town town, town, 822 801 town, 1002 3 town, Princeton Barre town, North town, BR 643 643 643 680 660 Tisbury Wayne 24 2 Warren town, town, Charlton Brookfield town, Southbridge BR West 520 526 545 574 STATE Sturbridge Edgartown Westborough town, 1 PAGE counties Clair, STATE East Leicester town, Paxton town, Brookfield Auburn town, St. BR town, town, town, 549 533 448 411 475 485 0 of within town, town, town, within West Northbridge Royalston AREA towns Tisbury Ingham Brookfield Oakland, AREA Webster town, Shrewsbury Sterling Dudley Holden Buren Chilmark town, FMR Oxford town, nonmetropolitan FMR town, of Van town, town, town County town, town, town, town, town, Eaton, of town, Macomb, Boylston within COUNTIES Bluffs Rutland Phillipston Spencer Boylston Douglas Oakham Grafton Northborough Uxbridge West Ionia Lapeer, Livingston Components Counties Calhoun Clinton, Saginaw Bay Barry Kent Kalamazoo, Jackson Berrien Towns Oak Genesee Cass Ottawa Nantucket Newaygo Aquinnah washtenaw Worcester Monroe Muskegon ...... • BR BR BR 990 905 964 993 ....••..•.....•.•...•••...... 4 4 4 1411 1731 1707 1107 1233 1049 1157 1077 1005 1166 1251 1501 1100 1042 1143 1072 1216 2213 ...... •..... BR BR BR 958 990 929 916 961 982 931 936 849 869 845 1028 1682 1318 1128 1008 1001 1032 1250 1028 1290 2205 3 3 3 Benzie Charlevoix NONMETROPOLITAN Arenac Alger Alpena BR BR BR 964 648 689 689 680 644 699 863 846 702 712 737 730 728 728 776 798 705 730 2 1036 2 1295 2 HOUSING BR 964 886 BR BR BR 957 547 648 616 573 624 549 526 548 515 560 595 521 505 559 556 823 813 4 1139 1124 728 1 1 1 1161 1571 BR 927 893 856 801 895 898 BR BR BR 3 935 674 675 523 510 519 590 588 512 520 502 456 418 479 418 424 483 472 490 475 419 492 419 770 0 0 0 EXISTING BR 643 643 658 655 FOR 713 2 BR 515 475 497 RENTS 1 .....•...... BR 391 576 586 512 448 475 448 MSA 0 MARKET MI ...... •.....•....•. FAIR .....•...... •...... • ....•...... •.... HMFA MSA ...... •...••...•...... HMFA North, MSA MI MSA MI MSA ...... •.....•....•. Final HMFA MI MSA MI ...... •..•...... •...... MI MI •.....•.....•...••••.....•.•.• ...... •..••.....•.•..•. ••.....•....•...••••..••...... HMFA MI MI ...... 2015 MA ...... HMFA HMFA AREAS AREAS MSA ...•...... •...... •...... COUNTIES Shores, HMFA Township COUNTIES MI ...... FY ...... HMFA Haven, continued MA MSA MI MI MI ...... FMR FMR Harbor, Lansing, MSA MI MSA B - County, MA MI MSA County, MI MSA MI County, MI ..•...... •.....••..... Creek, MI ...... •...... County, County, County, Rapids-Wyoming, County, City, Arbor, SCHEDULE Ionia Flint, Jackson, Livingston Saginaw-Saginaw Newaygo Bay Dukes Barry Detroit-Warren-Livonia, Holland-Grand Kalamazoo-Portage, Baraga Branch Battle Lansing-East Grand Cass Nantucket Niles-Benton NONMETROPOLITAN NONMETROPOLITAN Ann Alcona Allegan Antrim MASSACHUSETTS METROPOLITAN Worcester, MICHIGAN METROPOLITAN Monroe, Muskegon-Norton

VerDate Sep<11>2014 18:08 Oct 02, 2014 Jkt 235001 PO 00000 Frm 00078 Fmt 4703 Sfmt 4725 E:\FR\FM\03OCN1.SGM 03OCN1 mstockstill on DSK4VPTVN1PROD with NOTICES EN03OC14.032 Federal Register / Vol. 79, No. 192 / Friday, October 3, 2014 / Notices 59817 Ramsey, BR BR 950 925 921 923 902 921 925 886 859 859 891 4 4 1032 1047 1163 1148 1139 1139 1109 1005 1135 1059 1301 1139 1139 1055 1245 BR BR 948 952 Isanti, 936 946 910 908 831 820 801 883 821 859 884 813 861 895 815 851 862 858 801 889 849 801 876 826 3 1105 1183 3 BR BR 667 648 643 643 643 643 643 685 643 643 691 643 643 643 643 692 643 648 643 643 643 643 662 825 803 764 703 2 25 2 Hennepin, BR BR 621 619 505 542 532 506 542 541 542 510 504 511 523 514 517 541 535 480 492 475 475 490 494 475 489 Wright 1 PAGE 1 STATE BR BR 384 617 624 615 591 501 500 465 452 448 479 448 448 466 478 448 448 476 468 480 486 482 448 458 448 428 428 441 393 Dakota, 0 0 within ...... Washington, AREA Chisago, Louis FMR Nicollet St. of Stearns Carver, Sherburne, Olmsted Earth, COUNTIES COUNTIES ...... Polk Clay Carlton, Scott, Houston Blue Dodge, Benton, Counties Anoka, Wabasha ...... •...... Isle BR ...... 4 1173 1232 1553 1007 1096 1246 1424 1656 1281 Traverse ...... Joseph Stone BR 984 973 955 948 Iron Presque 1012 1403 1054 1104 1175 3 Chippewa Cass Clearwater Schoolcraft St. Dickinson Huron Kalkaska Lake Lenawee Becker Big Hillsdale Oceana Oscoda Tuscola Crawford Gladwin Grand Ontonagon NONMETROPOLITAN NONMETROPOLITAN Mackinac Marquette Mecosta Midland Montcalm BR 996 643 804 877 755 715 719 728 723 2 HOUSING BR BR 938 960 951 917 994 911 969 951 859 859 879 867 893 859 BR 651 642 603 574 553 537 542 4 4 1035 1328 1013 1030 1139 1103 1255 1022 1194 1004 1018 1224 1056 796 1 BR BR 948 912 948 976 948 901 953 914 928 908 939 933 956 948 801 880 823 801 813 861 852 808 848 839 840 801 BR 3 641 600 562 584 512 516 478 456 441 433 1251 1018 1021 3 0 EXISTING BR BR 643 643 643 643 643 643 643 679 643 643 658 643 643 674 649 643 663 643 643 668 698 691 643 643 849 FOR 764 740 2 2 ...... BR BR 628 645 765 583 531 565 573 542 563 542 542 RENTS 475 486 475 475 475 475 486 489 498 499 475 490 494 475 494 539 1 1 MSA BR BR 397 553 519 542 592 528 504 448 448 482 442 448 465 424 448 448 497 459 448 448 450 452 448 462 448 448 415 478 428 428 0 0 MARKET MN-WI ...... FAIR MSA ...... Final MN HMFA MSA...... 2015 AREAS MSA...... Paul-Bloomington, COUNTIES COUNTIES MN FY HMFA...... Mankato, MSA...... MSA...... FMR ND-MN MSA...... B - WI-MN MN MN ...... continued ...... County, MN-WI ...... ND-MN ...... Forks, ...... ••...... Cloud, tmorency Crosse, SCHEDULE Iosco Isabella Fargo, La Cheboygan Clare Chippewa...... Shiawassee Sanilac St. Keweenaw Roscommon Emmet Delta Houghton Duluth, Rochester, Leelanau Luce Beltrami...... Brown...... Ogemaw Gogebic Osceola Otsego Grand Gratiot NONMETROPOLITAN NONMETROPOLITAN MICHIGAN Wexford MINNESOTA METROPOLITAN Wabasha Aitkin...... Men Manistee Mason Missaukee Mankato-North Minneapolis-St. Menominee

VerDate Sep<11>2014 18:08 Oct 02, 2014 Jkt 235001 PO 00000 Frm 00079 Fmt 4703 Sfmt 4725 E:\FR\FM\03OCN1.SGM 03OCN1 mstockstill on DSK4VPTVN1PROD with NOTICES EN03OC14.033 59818 Federal Register / Vol. 79, No. 192 / Friday, October 3, 2014 / Notices BR 951 958 944 991 936 951 938 976 950 936 859 4 1104 1312 1082 1067 1067 1002 1233 1088 1046 1121 1055 1165 1139 1300 1139 1139 1118 BR 917 948 947 923 937 948 909 924 948 918 948 946 894 814 801 813 801 807 886 865 801 801 865 1100 1041 1012 1227 1012 3 BR 643 657 643 643 643 643 643 643 643 643 643 643 643 643 643 643 643 651 651 648 686 846 733 772 754 730 711 734 26 2 BR 625 557 542 562 523 542 512 526 576 540 481 479 484 PAGE 1 STATE BR 386 519 519 514 599 503 428 438 475 486 489 418 475 428 480 499 428 461 475 433 482 428 487 475 434 457 428 473 428 475 428 437 475 428 428 475 475 428 428 475 428 485 484 Rankin 0 within ...... Stone Perry AREA Madison, ······· FMR Lamar, Harrison, of Hinds, Jackson COUNTIES .••....•.•.••...• Forrest, Simpson Hancock, DeSoto Tunica George, Tate Counties Copiah, Marshall ...... •...... •...... •...... ••...... ••...... •.•..••.•...... • .•.•....••...... •••. .••.....•.•...•....•••...... •....•...... BR ...... •••..••...•.••...... •...... •..•...... •. ...•...... •...... • ...... 829 Medicine .•..•..••••...•...•..•.•...... •...... •••••••.••..••••..•••••••• •...... •...... •...... 4 Lacs 1107 1067 1267 1233 1041 1148 1029 1136 Tail ...... •...... •...... • •...•...••..•....•.•.•••••• ...... ••••...•.•.•••....••.• ...... •••••.••...•...... •....•.....•.•.••••. Sueur BR 929 990 971 931 888 777 Fillmore Le Pine Pope Redwood 1137 1022 1039 Cottonwood 3 Swift Steele Yellow Hubbard Kandiyohi Roseau Douglas Koochiching Lake Lyon Rice Jackson Goodhue Traverse Otter Nobles NONMETROPOLITAN Mahnomen Mower Waseca Wilkin Martin Mille BR 648 620 808 832 739 780 744 713 746 2 BR HOUSING 951 951 997 994 985 948 962 951 951 990 859 859 892 879 859 861 BR 673 646 577 593 523 527 551 4 479 1100 1080 1050 1000 1139 1139 1042 1015 1139 1038 702 1 BR 922 948 948 929 984 901 935 948 946 918 936 948 948 801 801 811 801 889 897 828 859 801 801 801 801 801 847 892 BR 653 369 614 546 589 523 531 464 476 1096 1016 3 0 EXISTING • . BR • 643 643 643 643 643 651 643 679 643 643 643 643 643 643 643 643 643 643 643 643 643 675 FOR 721 744 746 741 720 703 . 2 • . . • BR . 538 550 506 542 551 548 542 542 517 595 542 542 538 506 513 520 540 519 513 RENTS 481 494 477 475 475 1 . . • • • BR • 507 514 503 444 428 428 428 475 444 493 428 428 433 475 428 428 491 428 428 428 428 499 428 472 428 468 428 428 448 479 383 509 . 0 MARKET ...... • . • FAIR • • ...... •...... • .•...•..••••••..•••••.•.••. • Final • . • HMFA MSA ...... •...... • HMFA...... 2015 HMFA...... HMFA...... •.....•...... • AREAS MS MS COUNTIES HMFA...... MS MSA FY MS MSA. •.•••.....•.•.•.••• FMR MS MS HMFA...... Woods MS B - ...... • continued ..•.•.•.••..•..••...••• .•.•.••....••..•.....•...... •...... •..... TN-MS-AR County, MS ..•...•...••...... •...... •...... •...•.• ...... •...... •....•...... •.....• ...... the Parle County, ..••••••...... •••.•...••...... • ...... •...... •. •.•..•....•...... •..... County, ..•...... •.•.....••.•..••. .•..•....•...•..•.•..••...... •...... •...... •...... •...... •...... •.... ••..•.....•.•....•.••..••• ...... •..••..•...... •.•.••• County, of Wing ....•••..•..•....•....••...• ...... •••.••••••....•••..•.••••••• qui Lake SCHEDULE Itasca Faribault Freeborn Lake Pennington Pipestone Pascagoula, Crow Simpson Stevens Sibley Norman Red Kanabec Kittson Lac Renville Rock Hattiesburg, Lincoln Jackson, Todd Cook Tate Tunica Grant Gulfport-Biloxi, NONMETROPOLITAN McLeod Wadena Watonwan Winona METROPOLITAN MINNESOTA Marshall Meeker Morrison Murray MISSISSIPPI Marshall Memphis,

VerDate Sep<11>2014 18:08 Oct 02, 2014 Jkt 235001 PO 00000 Frm 00080 Fmt 4703 Sfmt 4725 E:\FR\FM\03OCN1.SGM 03OCN1 mstockstill on DSK4VPTVN1PROD with NOTICES EN03OC14.034 Federal Register / Vol. 79, No. 192 / Friday, October 3, 2014 / Notices 59819 BR 955 917 917 937 917 917 947 929 906 974 920 921 829 890 845 829 841 882 841 829 829 829 4 1257 1120 1135 1000 1158 1056 1098 1098 1098 BR 914 903 947 997 914 914 934 914 914 915 951 914 841 887 838 879 816 870 838 812 824 858 772 787 782 772 772 772 775 772 1068 1049 3 BR 632 620 620 620 620 620 634 620 620 620 620 620 641 799 646 620 620 620 654 650 620 620 620 620 620 620 688 620 620 620 838 732 746 27 2 BR 613 629 659 523 523 510 535 533 518 523 541 545 510 523 523 523 523 540 523 458 458 458 488 483 480 458 458 458 458 PAGE 1 STATE BR 376 384 369 571 585 537 422 422 455 422 458 422 493 432 422 422 422 422 422 444 436 418 422 458 422 445 443 422 422 432 422 422 422 422 422 0 within ...... Girardeau AREA FMR Cape of Howard Osage COUNTIES Counties Cole, Boone, Bates Bollinger, Dallas Callaway ....•...... •....•...... BR ...... 843 807 869 ...... 4 1256 1006 River ...... •...... • ...... BR 840 826 825 899 841 752 Itawamba 3 Pontotoc Franklin Pearl Jefferson Lafayette Lincoln 1039 Coahoma Choctaw Carroll Sharkey Sunflower Union Humphreys Bolivar Lawrence Lee Jones Tippah Grenada Quitman Oktibbeha Clarke NONMETROPOLITAN Newton Alcorn Wayne Attala Yalobusha Montgomery Warren Wilkinson Marion BR 624 616 636 604 604 710 2 BR HOUSING 917 917 917 971 917 935 917 942 829 829 829 845 868 845 829 871 870 854 890 BR 551 4 461 455 470 499 446 1118 1021 1066 1079 1002 1272 1009 1098 1 BR 914 914 914 914 914 914 914 903 914 867 846 875 819 838 829 899 847 886 889 845 850 817 865 877 886 829 867 896 812 899 797 772 772 787 777 793 772 774 BR 378 359 537 452 407 1026 3 391 0 EXISTING BR 661 620 620 620 620 620 673 620 620 620 620 620 620 632 620 624 633 620 628 620 621 656 620 620 620 620 620 666 620 620 620 651 FOR 718 2 BR 606 558 523 523 523 510 523 510 523 523 534 519 523 524 523 548 523 510 516 466 458 497 484 467 458 485 484 458 466 495 481 RENTS 1 BR 384 504 501 501 450 422 422 422 458 422 422 422 422 422 422 430 472 489 422 416 422 428 422 423 447 422 487 422 422 454 491 422 443 369 369 0 MARKET ...... MSA FAIR . . • ...... MO-IL Final ...... HMFA HMFA...... 2015 HMFA HMFA...... AREAS MO COUNTIES MO FY MO MO FMR MSA...... continued B - City, Davis...... MO County, ...... County, ...... County, ...... •...... Girardeau-Jackson, SCHEDULE Issaquena...... Panola...... Pike...... Prentiss...... Leflore...... Cape Calloway Columbia, Chickasaw...... Covington...... Calhoun...... Claiborne...... Clay...... Smith...... Scott...... Lowndes. Bates Dallas Benton...... Holmes...... Jefferson Kemper...... Jefferson Lauderdale...... Jasper...... Leake...... Tallahatchie...... Tishomingo...... Greene...... Neshoba...... Noxubee...... NONMETROPOLITAN Adams. Yazoo Amite...... MISSOURI METROPOLITAN MISSISSIPPI Walthall...... Washington...... Webster...... Winston...... Monroe......

VerDate Sep<11>2014 18:08 Oct 02, 2014 Jkt 235001 PO 00000 Frm 00081 Fmt 4703 Sfmt 4725 E:\FR\FM\03OCN1.SGM 03OCN1 mstockstill on DSK4VPTVN1PROD with NOTICES EN03OC14.035 59820 Federal Register / Vol. 79, No. 192 / Friday, October 3, 2014 / Notices Lincoln, Platte, BR 921 933 987 947 966 933 942 933 893 807 807 823 872 893 839 807 807 874 853 818 860 896 807 4 1176 1070 1051 1070 1021 1383 1098 BR 924 918 946 911 942 890 890 820 869 890 851 834 836 804 889 Jefferson, 780 752 782 752 772 783 798 753 752 757 762 752 752 city 1024 1151 3 Lafayette, BR 604 623 657 604 664 604 604 618 604 614 604 620 628 604 604 695 604 604 604 654 604 638 604 608 608 604 654 639 604 781 Louis 28 2 Franklin, St. BR Jackson, 649 509 560 509 524 509 511 509 539 448 460 446 473 463 462 446 458 491 446 461 446 446 483 446 446 449 487 486 483 482 1 PAGE STATE BR 399 391 399 399 359 399 399 389 399 505 411 438 408 405 443 409 415 421 443 443 432 452 484 434 465 422 399 399 360 362 Warren, 0 Crawford, Clinton, within ...... of Webster DeKalb Louis, Clay, AREA part ··•···· St. FMR ········· Greene, Cass, city of Buchanan, Newton COUNTIES Charles, Ray Polk Jasper, Counties Caldwell, Christian, Sullivan St. Andrew, washington McDonald Moniteau ...... •...... •.....•...••...... ••••...... ••.....•...... BR .•...... •.....•....•••..• .••...... ••... .•...... •...... •...... • ...... • 915 967 857 881 ...•••...••.....•...... • .....•..•.....•.....•.•... ..•.....•.•...... •....• .....•...•.....••.....•...... •...... •...... •...... •...... •.....•...... •...... 4 1360 1070 1069 1206 ...... •...... •...... •...... •.•...... ••••...••...... •...... BR 963 843 893 854 890 861 868 772 3 1221 1063 Perry Phelps Pulaski Reynolds Laclede Camden Cooper Barry Benton Dade Dent Dunklin Harrison Hickory Howell Lewis Ralls Johnson Livingston Ozark Gentry Carter Chariton Nodaway NONMETROPOLITAN Atchison Monroe Morgan Madison Marion Miller BR 677 625 604 604 604 654 604 891 816 2 HOUSING BR 933 921 933 997 931 933 928 988 933 973 983 933 807 807 822 807 807 882 811 835 814 BR 633 507 509 469 450 446 446 485 4 1070 1106 1000 1036 1123 1070 1070 1103 1125 719 1 BR 978 909 914 832 807 890 890 890 805 890 858 811 826 890 831 891 879 788 760 788 770 789 790 785 786 791 752 752 777 752 BR 559 533 462 447 411 441 469 488 3 359 0 EXISTING . • BR 647 623 604 604 604 604 604 618 604 604 604 604 645 604 604 604 604 604 604 604 604 615 604 604 604 675 604 604 635 FOR 716 . . 2 • • . . BR 505 529 501 509 505 509 509 509 RENTS 462 457 470 478 467 453 467 483 446 458 461 446 446 446 455 460 486 474 499 446 446 474 . . 1 • • BR 359 380 359 399 399 389 399 399 378 473 467 427 496 426 458 443 443 411 483 496 377 399 399 395 399 399 399 399 399 399 0 MARKET ...... FAIR . . • ...... • ...... Final HMFA HMFA...... HMFA...... HMFA...... MO 2015 MSA.. HMFA...... AREAS MO MO COUNTIES HMFA... HMFA...... FY MO-KS FMR MO MO MO-KS ...... county, B - MO-IL MSA...... ••...•...... • .....•••...... •.•.... continued County, County, ...... •...... • ...... •...... •...•...... ••...• City, MO ...... •••...... •...... •••...... ••...... •••....•...... •.....• ...••...... •...... •...... ••...... •...... •...•....•.....• ....•...••.•..••.....•....• ...... •.....••...... County, ....•.•..•••...... •...... •.•...•.....•...... • ...... Joseph, Louis, Madrid SCHEDULE Iron *Kansas Polk Pemiscot Pike Putnam Randolph Pettis Joplin, Cedar Clark Crawford Carroll. Springfield, St. St. Knox Barton Butler Daviess Douglas Henry Holt Lawrence Linn Gasconade Grundy Oregon NONMETROPOLITAN New washington Adair Audrain MISSOURI METROPOLITAN McDonald Macon Montgomery Moniteau Maries Mercer Mississippi

VerDate Sep<11>2014 18:08 Oct 02, 2014 Jkt 235001 PO 00000 Frm 00082 Fmt 4703 Sfmt 4725 E:\FR\FM\03OCN1.SGM 03OCN1 mstockstill on DSK4VPTVN1PROD with NOTICES EN03OC14.036 Federal Register / Vol. 79, No. 192 / Friday, October 3, 2014 / Notices 59821 BR BR 933 975 930 915 961 921 807 831 822 859 4 4 1104 1222 1022 1183 1122 1144 1095 1250 1070 1158 1270 1019 1130 1019 1139 1019 1019 1139 1121 1019 1139 BR BR 948 948 912 902 903 998 948 948 948 929 948 889 890 819 867 815 867 877 878 870 801 893 801 801 818 867 752 760 774 3 1136 1366 1020 1014 1117 1040 3 BR BR 643 643 643 643 643 643 643 643 643 643 643 643 643 643 604 659 604 604 604 696 654 656 604 690 675 696 801 819 722 771 746 758 706 29 2 2 BR BR 615 605 514 527 542 592 542 542 542 551 569 542 542 563 514 542 560 495 487 446 446 446 446 479 485 PAGE 1 1 STATE BR BR 399 359 399 384 585 504 569 519 545 598 527 557 559 511 515 595 484 412 414 497 410 469 469 469 469 496 402 469 469 496 469 496 469 475 475 469 469 469 475 469 399 0 0 within ...... AREA FMR of Yellowstone COUNTIES COUNTIES ...... Carbon, Counties Cascade Missoula ...... •...... • BR ...... 955 Bow ...... •...... 4 1337 1010 Grass ...... Lodge ...... Francois Clair Horn BR 937 3 Fergus Petroleum Pondera Powell 1007 1083 Roosevelt Liberty Chouteau Sweet Stone Schuyler Shelby Sanders Scott St. St. Silver Big Broadwater Daniels Deer Lake Ravalli Jefferson Taney Toole Gallatin Glacier Granite NONMETROPOLITAN NONMETROPOLITAN Vernon Worth Meagher McCone Musselshell BR 648 728 755 2 BR BR HOUSING 933 941 917 972 927 933 951 976 815 892 859 BR 604 538 505 4 4 1258 1037 1010 1070 1062 1019 1019 1139 1019 1019 1019 1019 1139 1042 1395 1019 1403 1019 1139 1139 1139 1034 1 BR BR 903 943 948 909 903 937 923 948 903 948 917 905 971 981 903 948 907 904 890 885 820 812 890 831 801 889 824 801 752 762 769 BR 3 558 485 485 1219 1465 1060 1304 3 0 EXISTING BR BR 604 629 604 604 604 604 671 604 604 604 643 643 643 643 643 643 643 643 643 643 643 643 643 643 643 643 643 652 827 885 FOR 730 785 780 788 2 2 BR BR 668 658 682 509 540 529 539 529 542 542 582 542 534 582 506 542 542 542 508 RENTS 446 465 446 446 446 452 496 446 446 475 482 475 1 1 BR BR 399 399 359 399 359 399 399 646 533 571 578 519 569 462 493 472 469 454 469 469 469 469 496 469 484 469 469 469 469 469 469 469 469 475 433 476 399 0 0 MARKET FAIR Final ...... •..•...... 2015 AREAS ...... COUNTIES COUNTIES MSA FY ...... FMR MSA MT MSA B - Clark...... MT MT continued Basin...... River...... Valley...... Falls, and Genevieve...... SCHEDULE Powder Lewis Judith Fallon...... Flathead...... Park...... Phillips...... Prairie...... Richland...... Rosebud...... Lincoln...... Custer...... Carter...... Ste. Shannon...... Scotland...... Stoddard...... Sullivan...... Sheridan...... Stillwater...... Saline...... Billings, Ripley...... Beaverhead...... Blaine...... Dawson...... Hill...... Great Golden Texas...... Teton...... Garfield...... NONMETROPOLITAN NONMETROPOLITAN MISSOURI MONTANA METROPOLITAN Missoula, Wayne...... Wright...... Mineral...... Madison......

VerDate Sep<11>2014 18:08 Oct 02, 2014 Jkt 235001 PO 00000 Frm 00083 Fmt 4703 Sfmt 4725 E:\FR\FM\03OCN1.SGM 03OCN1 mstockstill on DSK4VPTVN1PROD with NOTICES EN03OC14.037 59822 Federal Register / Vol. 79, No. 192 / Friday, October 3, 2014 / Notices BR BR 991 811 830 811 897 858 882 860 811 818 811 833 830 885 811 854 830 847 830 830 830 897 822 897 894 885 858 4 4 1019 1150 1001 1075 1075 BR BR 903 900 890 894 801 879 894 870 800 827 844 894 894 894 788 765 756 756 756 785 756 799 756 756 756 778 756 756 756 756 756 771 3 3 BR BR 643 643 607 607 607 607 667 607 607 607 607 607 662 607 607 613 642 607 662 607 607 607 607 623 607 607 607 607 607 607 607 619 2 2 30 BR BR 542 512 512 512 522 512 502 512 525 512 512 512 459 481 460 455 449 449 474 449 449 449 455 449 455 455 455 455 455 449 PAGE 1 1 STATE BR BR 399 469 469 496 409 409 409 409 413 493 409 409 409 417 409 409 409 409 433 409 408 409 409 409 409 420 409 409 409 409 409 409 409 394 0 0 Washington within ...... AREA ····· Sarpy, FMR of Dixon Douglas, COUNTIES COUNTIES Lancaster Counties Cass, Seward Saunders Dakota, ······················ ······················· ...... •...... •...... •...... BR ...... 964 ...... 4 1202 1215 1075 1045 ...... Paha ...... BR 973 929 898 841 3 Fillmore 1082 Frontier Cheyenne Colfax Banner Boone Boyd Dawson Dodge Hooker Kearney Keya Knox Buffalo Butler Hall Harlan Hitchcock Logan Jefferson Gage Chase Grant Custer Garfield Nuckolls NONMETROPOLITAN NONMETROPOLITAN Nance Antelope Valley Wibaux McPherson Merrick BR 607 807 700 721 708 2 BR BR HOUSING 947 921 931 814 897 860 844 895 837 830 811 823 897 830 830 830 839 861 841 811 853 863 830 893 BR 642 533 530 550 4 473 4 1168 1168 1075 1075 1005 1005 1021 1075 1 BR BR 894 834 894 892 894 802 823 805 813 822 783 772 758 796 756 756 756 756 756 756 756 756 756 765 756 769 795 756 769 756 BR 361 416 480 429 421 1027 1035 3 3 0 EXISTING BR BR 609 607 629 607 607 607 607 607 607 607 607 607 607 607 607 607 614 607 607 644 607 607 638 607 646 653 607 637 607 607 FOR 737 737 2 2 BR BR 512 512 512 RENTS 450 471 449 482 472 477 483 477 481 455 466 449 449 449 449 449 449 449 455 449 455 455 449 449 455 449 1 1 BR BR 538 538 568 568 447 409 424 409 409 409 409 409 409 409 432 409 409 409 409 409 414 409 454 409 434 409 409 430 409 435 409 429 409 409 388 0 0 MARKET ...... FAIR HMFA ...... • Final ...... NE-IA MSA HMFA 2015 HMFA NE AREAS COUNTIES COUNTIES FY NE Bluffs, FMR IA-NE-SD HMFA...... B - ...... County, NE ...... continued ...... County, ...... City, ...... •...... •...... •.....•.... Butte SCHEDULE Franklin Furnas Lincoln, Johnson Cuming Cedar Cherry Clay Seward Saunders Sioux Box Brown Dawes Dundy Howard Blaine Burt Deuel Hamilton Hayes Holt Keith Kimball Loup Lincoln Omaha-Council Garden Gasper Greeley Treasure...... NONMETROPOLITAN NEBRASKA NONMETROPOLITAN Nemaha Adams Arthur MONTANA METROPOLITAN Madison Wheatland...... Morrill

VerDate Sep<11>2014 18:08 Oct 02, 2014 Jkt 235001 PO 00000 Frm 00084 Fmt 4703 Sfmt 4725 E:\FR\FM\03OCN1.SGM 03OCN1 mstockstill on DSK4VPTVN1PROD with NOTICES EN03OC14.038 Federal Register / Vol. 79, No. 192 / Friday, October 3, 2014 / Notices 59823 town, town town, town, town, town, town, Temple BR BR 957 953 926 960 978 830 830 830 875 811 811 Hampton town, 4 4 1032 1032 1032 1075 1075 1668 1181 town, town, Raymond BR BR Goffstown 756 756 756 756 772 756 756 756 756 903 948 Chester 810 894 894 836 801 South Bennington Hampstead 1052 1388 3 3 town, town, Sharon BR BR town, town, town, town, 607 607 607 607 607 607 607 607 607 607 607 942 643 643 643 643 650 736 town 31 2 2 Lyndeborough Greenfield town, BR BR 512 512 512 544 542 449 479 455 488 449 449 455 449 458 475 475 762 542 STATE 1 1 PAGE Plaistow Bedford Antrim town, Fremont STATE town, seabrook Atkinson Windham of of BR BR town 383 383 383 566 409 409 490 409 409 459 409 409 409 409 409 409 439 383 of of town, 0 0 within town, town, within towns towns . . towns towns Peterborough AREA Weare Newton AREA Derry Francestown Hillsborough FMR County County Sandown town, FMR city, county County of town, town, town, town, town of Washoe town, Boston COUNTIES COUNTIES Salem Deering Hancock Danville Kingston New Windsor Manchester ...... • Rockingham Clark Storey, Rockingham Hillsborough Hillsborough Components Counties Carson ...... •...... •..••..•...... •...... BR BR ...... •...... •...• ...... • ...... •...•...... Bluff ..•...•.••.••...•.•..••..• ..•..••....••...... •..•...•.•...... •...• ...... 4 1637 4 1322 1510 1695 1561 2023 ...... •...... •...•...... •...... •.•.•..••.•...• Willow BR BR 3 Pawnee 1362 1338 1515 Phelps 1240 1428 Pershing 1861 1154 Platte Esmeralda 3 Sherman Stanton Scotts Red Rock Douglas Humboldt Lincoln Thomas NONMETROPOLITAN NONMETROPOLITAN Valley York Webster Mineral BR BR 924 969 924 870 2 2 1494 1168 1455 1074 HOUSING BR BR 952 906 823 830 847 897 811 811 811 811 BR BR 910 684 699 846 4 4 1382 1303 1392 1043 1075 1071 1498 1130 1099 787 1 1 1196 BR BR 918 894 844 820 817 844 894 756 756 756 756 756 756 BR BR 630 639 545 551 1032 1054 1085 1011 1158 1095 3 3 724 767 798 0 0 1071 EXISTING . . BR BR 607 607 607 607 607 678 607 607 607 607 607 607 846 849 812 FOR 704 786 769 2 2 BR BR 663 639 758 656 628 600 512 503 501 512 512 594 568 RENTS 463 455 449 449 449 449 455 1 1 BR BR ...... 504 505 409 409 409 409 409 457 409 409 409 409 409 409 484 420 473 458 452 0 0 MARKET . . . HMFA HMFA FAIR ...... MA-NH (part) Final MSA NH ...... NV ...... •...... •...... 2015 AREAS AREAS COUNTIES COUNTIES HMFA MSA MSA FY HMFA - FMR FMR County, NV NV NH B ..•...... ••.•...•..• ...... MA-NH ...... continued ...... •.....•..••.....• ...... •....•.•..••....•••.....• City, ...... •...... • ...... ••...... •.••..• ..•.....•..•...•.....••... Pine ...... •...... •...•..• ...... •...... •...•..•...... ••..•..• HAMPSHIRE Vegas-Paradise, ...... •...•.....•...• SCHEDULE Perkins Pierce Polk Lawrence, Elko Eureka Carson Churchill Sioux Saline Sheridan Richardson Las Reno-Sparks, Lyon Boston-Cambridge-Quincy, Hillsborough Lander Thayer Otoe Thurston Nye NEBRASKA NONMETROPOLITAN NEVADA NONMETROPOLITAN NEW Wayne Wheeler METROPOLITAN White METROPOLITAN Manchester,

VerDate Sep<11>2014 18:08 Oct 02, 2014 Jkt 235001 PO 00000 Frm 00085 Fmt 4703 Sfmt 4725 E:\FR\FM\03OCN1.SGM 03OCN1 mstockstill on DSK4VPTVN1PROD with NOTICES EN03OC14.039 59824 Federal Register / Vol. 79, No. 192 / Friday, October 3, 2014 / Notices town, city, town, town, town, town, town, town, town, town town, grant, town, town, town, town, city, Harbor town, city, Vernon town town, town, township, Rochester Greenland town, town, grant, town, Chatham Wilton town, town, Litchfield Surry grant, Meredith town, town, township, Brookline Dover Burbanks Gorham Mont town town, Center town, town, town, township, Freedom Rindge purchase, Madbury Marlborough town, Candia purchase, town, town, township, and Westmoreland Jackson town, town, city, Stark Beans Dixville town, town, town, town, Portsmouth Pinkhams Strafford town, town, town, town, Low 32 city, Success Kensington Tilton Ossipee Northwood town, Exeter Clarksville Durham Newington town, town, location, Dublin town, Pelham Jefferson town, Lee crawfords city, Sargents Hudson Harrisville grant, grant, Laconia STATE Tuftonboro New Millsfield town, town, town, town, town, town, PAGE Keene Cambridge counties Sullivan Amherst Milford town, town, Belmont Brookfield town, township, Brentwood Auburn town, town Barrington Richmond Dixs of town, town, town, town, town, Effingham Ervings Walpole town, town, town, town, Location of of purchase, town, town, town, Falls city, Hampton of within Academy town, town, Shelburne purchase, Epping Odell towns town town, town, town, town, town, Lancaster Somersworth Stratford towns towns Ipswich Sanbornton Hollis Gilsum Newfields AREA Milan towns Londonderry Hart's North Milton Wolfeboro Berlin Randolph Columbia town, town, Hampton Jaffrey Tamworth grant, FMR Farmington Chandlers Chesterfield Stoddard Hadleys Troy Gilmanton New Moultonborough town, town, Eaton Errol County nonmetropolitan Dalton Bartlett Gilmanton Nelson Merrimack town, town, town town, town, Barnstead town, town, town, town County County Stratham of town, town, town, County town, town, town, township, and town, town, town, town, town, town, town, location, city, town, town, town, town, town, location, College grant, town, Kingston grant, purchase, within town, Castle Hampton Hampton Rye Durham Rollinsford Deerfield East Greenville Nashua Newmarket Nottingham New Mason Middleton Rockingham Fitzwilliam Pittsburg Components Conway Colebrook Carroll Cutts Swanzey Sandwich Second Stewartstown Strafford Dummer Hillsborough Rockingham Hinsdale Roxbury Beans Kilkenny Hale's Towns Greens Gilford Northumberland New Albany Alton Alstead Atkinson Wakefield Winchester Madison Marlow Martins BR BR 4 4 1707 1770 1521 1418 1134 BR BR 946 3 1413 3 BR BR 993 709 2 1159 1558 1809 1064 1458 1285 1764 2 1019 1418 1424 1048 1305 HOUSING BR BR 950 598 837 888 734 786 794 1 1 BR BR 937 662 573 782 718 729 707 0 0 EXISTING FOR RENTS ...... MARKET HMFA ..•...••••...... FAIR NH HMFA Final NH County, ...•.....•...... •...... •...... •..... 2015 NH...... AREAS COUNTIES NH NH ..•...... ••.••.....•..•..•...•..... FY continued FMR NH...... B - HMFA County, Rockingham County, County, NH County, HAMPSHIRE SCHEDULE Portsmouth-Rochester, Coos Cheshire Carroll Belknap Nashua, NEW NONMETROPOLITAN METROPOLITAN Western

VerDate Sep<11>2014 18:08 Oct 02, 2014 Jkt 235001 PO 00000 Frm 00086 Fmt 4703 Sfmt 4725 E:\FR\FM\03OCN1.SGM 03OCN1 mstockstill on DSK4VPTVN1PROD with NOTICES EN03OC14.040 Federal Register / Vol. 79, No. 192 / Friday, October 3, 2014 / Notices 59825 town, town, town town, town, town, town, town, town, town, town, town, town, town, town, town, town, Cornish Campton town, London Bow Thornton Washington Lyme Epsom Groton town, town, Ellsworth Holderness New town, location, Langdon city, Benton Lisbon Webster Hooksett town, town, town, Piermont town, town, town, town, town, town, town, Wentworth town, town, town, town, town, 33 Bristol Hill town, Unity Lyman Pittsfield Claremont Chichester Salem Valencia Wentworth town, Boscawen Bath Hebron Easton Hill Grafton PAGE Plainfield counties Newbury Warner town, STATE STATE Sugar Dunbarton Lincoln Grantham town, town, town, town, town, Orford town, town, town, town, town, town, Valley town, town, town, Union town, town, city, Somerset Torrance, purchase, town, within within town, Gloucester, Sunapee Pembroke Andover Ashland Loudon Sutton Bridgewater Livermore AREA AREA Rumney Canterbury Sussex, Newport Henniker Franconia Charlestown Haverhill Lebanon Danbury Gcshen nonmetropolitan Dorchester Orange Waterville Meserves town, FMR FMR Sandoval, Camden, town town, town, town, Middlesex, town, town, town town, town, Ocean town, town, town, and city, of of town, town, town, town, town, Passaic city, town, town, town, town Morris, within Ana May Juan Plymouth Franklin Enfield Essex, Canaan Croydon Cape Concord Counties San Salisbury Springfield Dona Bethlehem Hanover Bradford Hopkinton Bergen, Hudson Hunterdon, Burlington, Landaff Lempster Bernalillo, Towns Littleton Thompson Counties Cumberland Northfield Acworth Alexandria Allenstown Atlantic Whitefield Monroe Warren Woodstock Wilmot Monmouth, Warren Mercer BR BR BR 969 4 4 4 1375 1890 1847 1871 1671 1546 1919 1795 1638 1481 1008 1575 2014 2545 2239 BR BR BR 903 907 3 1320 1352 1626 1776 1673 1940 1903 1637 1588 1440 1659 1432 1469 1210 3 3 BR BR BR 998 634 836 725 2 1213 1523 1693 1001 2 1176 1371 1315 1495 1373 1269 1122 1156 1269 1115 1124 2 HOUSING BR BR BR 965 947 959 905 921 682 536 833 801 819 534 1 1 1 1156 1109 1214 1106 1063 1053 BR BR BR 943 952 936 932 687 639 668 543 817 814 499 445 718 784 0 0 0 1070 1009 1025 EXISTING ...... FOR MSA RENTS ...... •..... MARKET PA-NJ-DE-MD HMFA MSA ..•....••...•...... NJ NJ FAIR MSA NJ ....•...... •..•...... •...... •...... Final ...... •...... HMFA HMFA ...... 2015 HMFA NH...... MSA NH...... AREAS AREAS MSA...... COUNTIES HMFA NH...... NJ NJ ...... ••....••...... FY NJ NJ MSA MSA...... MSA...... continued NM FMR FMR NJ NM NJ NM B - HMFA County, City-Hammonton, County, County, NJ County, City, City, Cruces, HAMPSHIRE JERSEY MEXICO SCHEDULE *Philadelphia-Camden-Wilmington, *Albuquerque, Farmington, Sullivan Bergen-Passaic, Las Jersey Trenton-Ewing, Ocean Grafton Newark, NEW NONMETROPOLITAN NEW NEW Atlantic Vineland-Millville-Bridgeton, METROPOLITAN Warren METROPOLITAN Merrimack Middlesex-Somerset-Hunterdon, Monmouth-Ocean,

VerDate Sep<11>2014 18:08 Oct 02, 2014 Jkt 235001 PO 00000 Frm 00087 Fmt 4703 Sfmt 4725 E:\FR\FM\03OCN1.SGM 03OCN1 mstockstill on DSK4VPTVN1PROD with NOTICES EN03OC14.041 59826 Federal Register / Vol. 79, No. 192 / Friday, October 3, 2014 / Notices Rockland BR BR 947 947 962 947 986 862 843 873 4 4 1015 1704 1118 1118 1016 1223 1004 1287 1093 1326 1507 1101 1001 Schoharie BR BR 930 930 909 933 921 914 949 961 970 954 891 803 836 843 786 786 3 1315 1134 1039 1200 1335 3 Richmond, Wayne BR BR 631 645 631 631 631 631 631 638 631 631 677 845 834 897 715 749 715 722 751 2 1006 2 1050 34 Queens, BR BR 632 662 603 650 532 532 532 524 567 519 562 808 491 466 466 776 757 Schenectady, PAGE 1 1 Orleans, STATE STATE BR BR 603 380 669 525 528 577 517 516 589 594 553 558 425 474 466 473 477 473 473 444 463 466 Putnam, 702 389 375 0 0 within within Saratoga, Ontario, ...... Oswego York, AREA AREA New FMR FMR Monroe, Orange Oneida Onondaga, of of Suffolk Rensselaer, Tioga Washington Kings, Fe Niagara COUNTIES COUNTIES Erie, Chemung Counties Counties Santa Ulster Broome, Bronx, Dutchess, Herkimer, Livingston, Tompkins Nassau, Albany, Warren, Westchester Madison, ...... •.•.•....••...••...... •...... •.....•.•• ..•..•...... •.....•...... •...... ••• ...... •...... •...... • ...... BR BR .....•....••.....••...... •...... •...... •...... •...... ••.•.•.••..•••...... •...... •...... •.....•...... ••.• 4 4 1294 1199 1088 1324 1593 1686 1588 1168 1140 1062 1111 2572 2134 2363 .•••...... •..•.....••....•• ...... •....••.....•...... •....•.•..•....•...... Alamos Arriba Miguel ...... Baca BR BR 982 971 946 3 1278 1366 Los Rio 1206 1058 1159 1588 1455 1904 1488 1093 1039 Fulton 2234 2035 3 Chaves Colfax Chautauqua Cattaraugus Cortland San Socorro Union De Harding Lea Essex Jefferson Grant Otero Greene Clinton NONMETROPOLITAN NONMETROPOLITAN McKinley BR BR 953 968 863 867 742 768 758 792 714 2 2 1146 1110 1718 1188 1481 1591 HOUSING BR BR 975 947 973 947 947 913 947 947 960 971 843 BR BR 957 966 617 619 581 578 561 804 856 4 4 1118 1118 1096 1190 1082 1172 1535 1032 1156 1053 782 710 712 1 1 1395 1249 1292 BR BR 900 930 922 935 930 930 910 982 930 954 871 831 811 867 841 837 786 BR BR 3 3 690 689 549 581 555 585 555 551 837 481 1009 1196 1045 1021 739 780 0 0 EXISTING 1100 1196 1062 . . BR BR ... 923 631 631 631 631 631 631 631 631 672 631 663 656 675 820 810 FOR 728 749 718 727 744 . . 2 2 • . • Area . BR BR • 677 606 532 548 531 532 521 531 589 523 569 565 593 569 RENTS 482 469 491 491 466 743 ...... 1 1 • . MSA . . BR BR • 534 563 528 554 520 566 561 514 473 479 466 473 473 488 473 473 463 466 400 429 458 738 0 0 NY MARKET . . Exception • ...... •....•.•...••...... • .....••...... •...... • FAIR •• MSA • · MSA NY ••• ...... •...... Final Statutory NY • NY HMFA 2015 ...... AREAS AREAS ...... ••.••••..•••..••.•.••••... Falls, COUNTIES COUNTIES NY MSA...... FY MSA...... MSA...... MSA...... ·•··•·· FMR FMR HMFA NY MSA MSA...... MSA...... County, NY NY continued B - NY MSA. MSA...... NM NY NY NY ...... •...•...••...•.•....••...... •...... •...... •..•... NY NY .•..•.•....••..••••..•...... •....•...... •...... •...... •.•...... •...... •...... •...•.•..•....••..• ...... •....•.•..•... Fe, Falls, ...... •....••...... •.•..•. ..•..•.•.••..•••..••...... •.•...... •...... •.. ..•...... York, YORK MEXICO SCHEDULE Ithaca, Eddy Poughkeepsie-Newburgh-Middletown, Franklin Elmira, Cayuga Catron Curry Columbia Cibola Santa Syracuse, Sierra Utica-Rome, Hidalgo Luna Roosevelt Binghamton, Buffalo-Niagara Kingston, Rochester, Delaware Hamilton Lincoln Taos Quay Guadalupe Glens Chenango Genesee Nassau-Suffolk, New NEW NONMETROPOLITAN NEW NONMETROPOLITAN Albany-Schenectady-Troy, Allegany METROPOLITAN Mora METROPOLITAN Westchester

VerDate Sep<11>2014 18:08 Oct 02, 2014 Jkt 235001 PO 00000 Frm 00088 Fmt 4703 Sfmt 4725 E:\FR\FM\03OCN1.SGM 03OCN1 mstockstill on DSK4VPTVN1PROD with NOTICES EN03OC14.042 Federal Register / Vol. 79, No. 192 / Friday, October 3, 2014 / Notices 59827 BR BR 923 845 845 845 4 4 1077 1293 1073 1480 1129 1020 1516 1050 1119 1119 1138 1119 BR BR 950 931 931 996 931 835 841 787 787 787 787 787 3 1043 1016 1113 1171 1451 1239 3 BR BR 632 632 632 632 632 632 632 632 632 645 856 819 883 763 777 712 730 2 2 35 Union BR BR 612 653 605 601 690 691 561 533 516 502 534 533 482 492 467 467 467 1 PAGE 1 STATE Catawba BR BR 601 686 662 622 539 555 511 511 511 486 441 489 464 464 499 464 470 Yadkin 0 0 Madison within Wake ...... Caldwell, Mecklenburg, Orange Stokes, AREA ····· Hanover FMR Burke, Nash New Henderson, Randolph Johnston, Gaston, Durham, of Forsyth, COUNTIES COUNTIES ...... Pender Person Franklin, Pitt Cumberland Counties Cabarrus, Currituck Buncombe, Haywood Hoke Rockingham Brunswick, Edgecombe, Davie, Chatham, Greene Onslow Guilford, Anson Alamance Alexander, Wayne ...... BR ...... 929 950 948 845 845 ...... 4 1303 1477 1119 1426 1389 1320 1015 1080 1220 1436 1028 1090 1369 1120 1926 1274 1046 ...... •.•...... Lawrence BR 925 903 957 934 990 991 827 830 879 826 899 793 787 1127 1087 1117 1100 1120 1035 1125 1189 1530 3 Clay Carteret Seneca Sullivan St. Dare Beaufort Bladen Duplin Halifax Hertford Columbus Graham Cherokee NONMETROPOLITAN NONMETROPOLITAN Ashe Yates Montgomery BR 918 632 695 637 632 689 632 632 672 663 632 659 687 857 831 874 811 847 774 704 773 2 1107 BR BR HOUSING 996 927 917 925 908 979 845 BR 605 629 629 920 685 533 533 533 533 551 594 500 561 4 471 467 494 497 490 4 1216 1048 1094 1198 1158 1014 1119 1328 1111 1137 723 737 774 701 1 BR BR 987 978 900 905 905 904 927 837 838 877 880 840 848 BR 663 636 601 625 624 639 510 548 597 518 530 511 530 540 894 484 452 464 491 493 453 497 1043 1127 1045 1006 3 3 0 EXISTING BR BR ... 678 696 694 632 632 632 632 632 632 632 681 697 839 808 FOR 708 709 761 2 2 MSA BR BR 676 583 564 568 513 533 533 501 562 502 506 572 515 524 RENTS 467 467 ...... 1 1 VA-NC HMFA BR BR 624 643 647 539 516 511 520 511 503 550 512 481 456 464 464 498 453 474 0 0 MARKET ...... News, ...... NC-SC FAIR MSA ...... HMFA NC Hill, Final HMFA NC ...... HMFA ...... NC HMFA...... NC 2015 HMFA HMFA...... HMFA...... MSA...... HMFA HMFA...... AREAS MSA...... MSA...... Point, COUNTIES HMFA...... COUNTIES NC MSA...... FY HMFA...... HMFA...... NC NC NC NC MSA...... Hill, HMFA...... NC NC NC NC MSA...... - FMR NC NC NC NC NC County, B NC NC Beach-Norfolk-Newport ...... continued ...... County, ...... County, County, County, ...... •...... •....•..... CAROLINA County, Mount, ...... County, YORK SCHEDULE *Virginia Fayetteville, Pender Person Raleigh-Cary, Jacksonville, Camden Chowan Caswell Craven Charlotte-Gastonia-Rock Schuyler Steuben Haywood Hoke Burlington, Durham-Chapel Hickory-Lenoir-Morganton, Rockingham Rocky Davidson Harnett Lewis Bertie Otsego Goldsboro, Greene Greensboro-High Gates Greenville, Cleveland Granville NONMETROPOLITAN NONMETROPOLITAN NEW NORTH Anson Asheville, Alleghany Avery Wyoming METROPOLITAN Wilmington, Winston-Salem,

VerDate Sep<11>2014 18:08 Oct 02, 2014 Jkt 235001 PO 00000 Frm 00089 Fmt 4703 Sfmt 4725 E:\FR\FM\03OCN1.SGM 03OCN1 mstockstill on DSK4VPTVN1PROD with NOTICES EN03OC14.043 59828 Federal Register / Vol. 79, No. 192 / Friday, October 3, 2014 / Notices BR BR 954 973 934 949 958 995 966 881 845 872 845 850 830 887 887 887 887 802 4 4 1084 1233 1052 1063 1276 1034 1210 1119 1055 BR BR 907 937 962 931 950 828 802 845 829 843 802 896 848 886 868 818 836 836 839 884 883 836 884 839 884 884 836 839 789 787 787 795 792 762 787 747 3 3 1051 1181 1391 BR BR 632 632 632 632 632 632 632 663 632 652 657 632 632 612 653 644 636 645 600 600 600 600 600 600 600 600 600 600 600 824 722 782 728 2 2 36 BR BR 622 609 533 533 551 533 533 533 502 544 506 506 506 506 493 467 473 485 490 486 477 490 443 480 443 443 471 483 506 PAGE 1 1 STATE BR BR 383 618 655 659 583 511 511 547 511 511 521 464 496 470 499 482 487 495 498 474 474 499 487 440 477 485 466 440 469 485 440 468 479 485 485 485 391 0 0 within ...... AREA FMR Morton of Forks COUNTIES COUNTIES ...... Counties Burleigh, Grand Cass ...... •...... BR ...... •...... 4 1173 1269 1246 ...... •...... BR 973 Iredell 3 Pasquotank Polk Pembina Foster 1076 1054 Cavalier Scotland Surry Robeson Bowman Rutherford Barnes Billings Divide Eddy Hettinger LaMoure Jones Lenoir Transylvania Grant Northampton Nelson NONMETROPOLITAN NONMETROPOLITAN Vance Yancey McDowell Montgomery Washington Wilkes McHenry McKenzie Martin Mercer BR 759 715 719 2 BR BR HOUSING 956 939 968 951 981 974 951 864 845 887 887 802 802 814 887 870 803 861 BR 607 553 537 4 4 1041 1065 1393 1106 1196 1041 1103 1119 1001 1063 1907 1 BR BR 970 995 902 902 903 931 951 848 876 861 813 837 853 873 805 809 884 884 801 884 884 836 884 839 867 836 839 818 836 839 747 747 776 BR 535 456 441 1158 1183 1377 1361 3 3 0 EXISTING BR BR 654 632 632 632 675 632 678 632 632 646 632 632 600 600 600 600 600 600 600 600 600 600 600 600 600 600 844 FOR 779 703 724 790 715 2 2 1093 BR BR 922 623 657 656 511 593 533 535 533 524 509 533 528 506 506 506 506 506 RENTS 467 467 480 477 480 480 443 465 465 450 480 443 483 480 1 1 BR BR 376 376 392 620 638 508 568 511 532 545 511 569 521 511 502 883 464 464 474 457 477 485 440 462 485 462 485 485 485 447 477 440 480 477 0 0 MARKET FAIR Final ...... MSA 2015 AREAS ...... COUNTIES COUNTIES FY continued FMR ND-MN MSA MSA...... B - ND ...... ND-MN Valley...... Forks, CAROLINA DAKOTA SCHEDULE Fargo, Perquimans...... Pamlico...... Richmond...... Logan...... Jackson...... Lee...... Sampson...... Stanly...... Swain...... Bismarck, Emmons. Hyde...... Rowan...... Benson...... Bottineau...... Burke...... Dickey...... Dunn...... Kidder...... Lincoln...... Grand Golden Tyrrell...... Griggs...... Oliver...... NONMETROPOLITAN NONMETROPOLITAN NORTH NORTH METROPOLITAN Adams...... Warren...... Watauga...... Wilson...... Macon...... Mitchell...... Moore...... Mcintosh...... McLean...... Mountrail......

VerDate Sep<11>2014 18:08 Oct 02, 2014 Jkt 235001 PO 00000 Frm 00090 Fmt 4703 Sfmt 4725 E:\FR\FM\03OCN1.SGM 03OCN1 mstockstill on DSK4VPTVN1PROD with NOTICES EN03OC14.044 Federal Register / Vol. 79, No. 192 / Friday, October 3, 2014 / Notices 59829 BR BR Morrow, 966 981 908 951 981 945 935 944 996 905 826 887 839 856 814 898 847 4 4 1008 1079 BR BR 938 934 964 902 823 884 884 836 853 836 811 884 890 854 894 835 836 795 790 3 3 Madison, BR BR 600 600 600 600 612 600 600 600 600 663 634 645 634 634 634 660 634 634 707 37 2 2 Medina BR BR Licking, 506 506 506 521 596 519 500 510 515 527 471 443 494 490 485 443 469 491 482 1 1 PAGE STATE Warren BR BR 394 387 468 440 485 485 487 482 440 485 485 413 411 488 431 403 377 390 571 Lorain, 0 0 Wood Franklin, within ...... Hamilton, Lake, AREA Ottawa, Montgomery FMR Fairfield, Trumbull Geauga, of Summit Stark Lucas, Clermont, Miami, COUNTIES COUNTIES Portage, Pickaway Preble Fulton, Cuyahoga, Counties Brown Delaware, Richland Belmont Butler, Lawrence Erie Jefferson Greene, Clark Carroll, Union Allen Washington Mahoning, ..•••.....••.•...... •••.••....•.•...•..•...... •.•.•.....•...... •.•...... •...... BR .•••.•.....•.....•.....•. ..•...•...•...... •...... •..•.•.•...... 962 952 934 948 957 982 968 915 875 847 861 ....•.••.....•.••.•.....•. ...•...•....•.•....•...... ••...... •...... ••...... •••...... 4 1037 1173 1057 1007 1042 1209 1089 1035 ..•....•.•••.•.•..••..•...... •.••.•...... •••...•...... BR 999 900 972 931 933 916 971 887 843 862 896 879 814 866 871 791 3 Ramsey 1023 Renville Rolette 1065 1046 Champaign Columbiana Crawford Sheridan Slope Steele Defiance Hancock Harrison Highland Towner Gallia NONMETROPOLITAN NONMETROPOLITAN Ashland Athens Walsh Wells BR 635 675 638 635 634 642 654 680 656 679 634 657 811 776 769 764 726 716 780 2 HOUSING BR BR 963 949 945 887 830 803 847 879 895 884 BR 603 624 574 519 579 554 519 580 522 533 518 584 509 531 474 4 489 477 491 483 4 1032 1752 1032 1153 1004 1441 1066 1029 1044 1056 1 BR BR 959 916 945 884 879 865 827 803 874 865 874 876 891 881 762 765 BR 3 378 389 502 501 494 414 463 493 471 474 456 426 463 462 404 482 481 469 1683 1343 1028 3 380 0 EXISTING BR BR 600 651 600 600 600 612 600 634 646 649 662 634 634 634 634 792 651 FOR 707 741 2 1142 2 1078 BR BR 625 506 501 522 523 537 866 884 RENTS 485 444 443 480 465 443 496 480 489 496 496 495 1 1 ...... •. BR BR ..•.....•...... 393 599 519 812 811 485 482 441 440 477 462 440 431 426 448 431 464 415 442 377 MSA 0 0 MARKET ...... •...... HMFA HMFA FAIR WV-OH MSA OH MSA MSA OH Final OH-WV OH-KY-IN MSA...... WV-KY-OH 2015 OH HMFA...... HMFA...... HMFA...... AREAS COUNTIES COUNTIES MSA...... MSA...... FY OH OH OH MSA...... - FMR continued HMFA...... OH MSA...... B HMFA...... OH MSA...... OH OH WV-OH MSA...... •...... ••••..••••.•.• ...... •...•...... ••.. MSA...... •...•....••••...•..• ...... ••...... •...• ...... •...••...... •.•...... •..•...... OH OH .•.•.•...•.•...•••.•••.•. ...•.•...•.•.•...•••••.•...... •.•. County, OH ..•.•.•...•...•.....••..•...... •...... •••••.•..••.. County, County, DAKOTA OH ...•...... •...•.....••.• ...... •...... •.•...... •...... ••...... •.•...•.•.•...... •..••••. SCHEDULE Pierce Richland Parkersburg-Marietta-Vienna, Preble Fayette Lima, Columbus, Canton-Massillon, Cincinnati-Middleton, Clinton Sandusky, Sioux Stutsman Sargent Stark Steubenville-Weirton, Springfield, Youngstown-Warren-Boardman, Brown Ransom Dayton, Huntington-Ashland, Darke Hardin Henry OHIO Toledo, Coshocton Guernsey Traill Cleveland-Elyria-Mentor, NORTH NONMETROPOLITAN NONMETROPOLITAN Union Adams Akron, Ashtabula Auglaize Ward Williams Wheeling, METROPOLITAN Mansfield,

VerDate Sep<11>2014 18:08 Oct 02, 2014 Jkt 235001 PO 00000 Frm 00091 Fmt 4703 Sfmt 4725 E:\FR\FM\03OCN1.SGM 03OCN1 mstockstill on DSK4VPTVN1PROD with NOTICES EN03OC14.045 59830 Federal Register / Vol. 79, No. 192 / Friday, October 3, 2014 / Notices BR BR 937 962 932 963 999 905 901 984 921 939 921 941 847 847 847 833 871 833 863 833 4 4 1032 1102 1093 1103 1032 1103 1139 BR BR 909 934 915 918 918 905 837 894 847 824 810 887 843 828 870 874 836 840 860 798 790 790 780 776 776 787 776 776 776 798 776 3 3 BR BR Oklahoma 677 623 653 623 623 623 623 623 623 623 623 623 623 623 623 634 634 674 634 634 634 634 634 634 634 674 634 630 703 2 2 38 BR BR 530 535 517 502 535 520 535 500 530 535 500 517 525 515 531 525 478 489 477 477 460 460 460 460 460 1 1 PAGE Wagoner STATE McClain, BR BR 512 512 503 431 491 495 431 498 431 431 476 433 422 466 424 476 451 439 460 439 461 439 439 439 423 439 439 439 446 439 475 377 371 0 0 Tulsa, Logan, within . . . . . AREA Rogers, ······· FMR Cleveland, of Osage, COUNTIES COUNTIES Flore Pawnee Comanche Counties Canadian, Creek, Seguoyah Le Lincoln Grady Okmulgee •...... •...... •..•....•.••.•..•.••.• .••••...... •...••...• ...... •...•...... •...... •.••.•....•..•.....•••.. BR ..•...•••.•.••..•.•..•••. ....•...... •....•.....• ...... •...... 958 842 837 851 .•....•..•.•...••..•...... •...•.••...... •.•..•..•. .•.....•...... •.....•• .•....•...... ••.....•. ....•...... ••...... •...... •••••..•...••••...... • ••..•.••.••.•.....••...••• •...••.••..•....•••..••.•• 4 1183 1229 1174 1015 1030 .....•••••...••..•.••..•.•• .....••.•...... ••••...•• .....••.•...... ••...... •...... •...... •.....•••••....•.•....•.•.•. Wert BR 994 850 838 818 848 780 781 Pike Paulding 1062 1024 3 Cherokee Cimarron Custer Shelby Scioto NONMETROPOLITAN Holmes Ross Dewey Harmon Logan Beaver Blaine Haskell Jackson Jackson Johnston Caddo Cotton Grant Garfield NONMETROPOLITAN Van Wayne Wyandot Alfalfa Monroe Muskingum Meigs BR 638 623 623 623 626 623 718 748 783 2 HOUSING BR BR 950 937 930 998 926 959 939 977 939 887 891 859 833 833 872 868 833 833 865 BR 502 601 531 584 528 525 4 4 487 460 494 1004 1039 1123 1087 1071 1103 1 BR BR 938 926 929 934 918 914 939 842 890 847 884 873 831 806 837 883 802 899 898 883 827 878 892 807 800 801 783 790 776 780 776 776 776 BR 372 519 503 484 419 491 427 494 3 3 393 0 EXISTING BR BR 634 634 634 669 634 634 634 647 634 634 643 634 634 623 623 638 626 623 623 623 623 623 623 648 623 623 623 FOR 708 721 2 2 BR BR 506 552 516 521 535 533 500 525 525 533 525 RENTS 496 479 469 492 488 475 463 477 460 477 490 460 460 460 460 1 1 BR BR 377 383 390 393 502 529 431 486 454 494 470 493 431 497 439 431 488 431 472 439 439 497 439 439 468 439 474 439 456 439 439 439 0 0 MARKET . • . FAIR • . • . .•.•...... •...••....•..•.• ...... • .••••.•.•.••.•.....•••.•.•• Final . . . . HMFA HMFA • HMFA . 2015 HMFA...... HMFA...... HMFA...... • HMFA...... OK OK AREAS . COUNTIES COUNTIES OK • FY OK OK . OK • - FMR . AR-OK • B MSA...... • HMFA...... • County, County, City, OK County, . . OK County, • County, . continued Smith, SCHEDULE Pawnee Fort Lawton, Perry...... Putnam...... Choctaw...... Carter...... Coal...... Craig...... Sandusky...... Seneca...... Knox. Lincoln Hocking...... Huron...... OKLAHOMA LeFlore Beckham...... Bryan...... Delaware...... Harper...... Hughes...... OHIO Oklahoma Okmulgee Tulsa, Ellis...... Jefferson...... Grady Tuscarawas...... Garvin...... Greer...... Noble...... NONMETROPOLITAN NONMETROPOLITAN Vinton...... METROPOLITAN Adair...... Atoka...... Williams...... Marion...... Mercer...... Morgan......

VerDate Sep<11>2014 18:08 Oct 02, 2014 Jkt 235001 PO 00000 Frm 00092 Fmt 4703 Sfmt 4725 E:\FR\FM\03OCN1.SGM 03OCN1 mstockstill on DSK4VPTVN1PROD with NOTICES EN03OC14.046 Federal Register / Vol. 79, No. 192 / Friday, October 3, 2014 / Notices 59831 BR BR 905 903 974 909 996 865 833 833 4 4 1073 1044 1103 1103 1102 1103 1103 1377 1364 1209 1121 1139 1226 1139 1165 1261 Yamhill BR BR 918 933 923 900 918 948 802 848 857 805 843 817 828 872 809 801 821 788 1056 1174 1459 1040 1142 1373 1245 1122 1166 1279 1070 1136 3 3 BR BR 623 623 623 623 623 633 677 623 623 623 623 633 643 643 643 646 646 675 824 845 801 773 755 706 775 776 776 2 2 39 Washington, BR BR 610 618 614 575 518 515 525 534 572 588 500 589 542 592 477 460 477 477 499 460 460 460 713 PAGE 1 1 STATE BR BR 371 683 511 562 511 557 439 439 439 496 439 472 455 465 403 468 474 439 439 439 439 468 443 498 415 462 415 415 490 475 402 0 0 within Multnomah, ...... AREA FMR Columbia, of Polk COUNTIES COUNTIES ...... Clackamas, Counties Benton Deschutes Lane Jackson Marion, ...... BR ...... 4 1402 1672 1458 1401 1360 Mills ...... River ...... BR 3 Pottawatomie Pittsburg 1213 1193 1132 Lake Linn 1149 1375 1244 1391 Crook Clatsop Stephens Union Roger Hood Kingfisher Douglas Latimer Josephine Tillman Tillamook Ottawa Grant NONMETROPOLITAN Nowata NONMETROPOLITAN Woodward Wasco Mayes Muskogee Washita Morrow McCurtain Major BR 944 804 823 829 844 768 2 BR BR HOUSING 939 918 909 918 951 951 967 984 950 870 839 870 837 859 BR 646 628 617 624 4 4 1234 1268 1216 1214 1015 1103 1067 1109 1136 1102 1237 1312 1082 793 1 BR BR 916 952 945 948 906 966 974 823 886 867 869 842 867 836 820 867 801 869 801 782 776 780 776 BR 617 682 558 538 569 490 493 1015 1029 1184 1235 1005 1210 3 3 0 EXISTING BR BR 636 623 623 623 632 628 623 623 697 623 623 623 626 652 623 677 655 643 643 697 643 698 643 805 821 FOR 727 735 741 2 2 BR BR 657 620 525 525 522 535 525 528 539 532 557 511 565 555 559 470 461 460 467 464 494 498 494 460 460 RENTS 1 1 ...... BR BR MSA 388 615 515 519 595 467 458 439 421 445 442 439 439 434 439 439 412 441 439 489 422 415 475 401 430 443 474 441 450 415 475 0 0 MARKET OR-WA FAIR ...... Final MSA OR 2015 AREAS COUNTIES COUNTIES FY MSA...... FMR MSA...... B - OR MSA...... continued OR MSA...... •...... OR OR SCHEDULE Portland-Vancouver-Hillsboro, Pushmataha...... Payne...... Pontotoc...... Lincoln...... Love...... Corvallis, Coos...... Curry...... Salem, Seminole...... Sherman...... Bend, Eugene-Springfield, OKLAHOMA Kay...... Kiowa...... Baker...... Harney...... Klamath...... OREGON Jefferson...... Texas...... Okfuskee...... Gilliam...... Noble...... NONMETROPOLITAN NONMETROPOLITAN Umatilla...... METROPOLITAN Wheeler Marshall. Medford, Washington...... Woods...... Wallowa...... Mcintosh...... Murray...... Malheur......

VerDate Sep<11>2014 18:08 Oct 02, 2014 Jkt 235001 PO 00000 Frm 00093 Fmt 4703 Sfmt 4725 E:\FR\FM\03OCN1.SGM 03OCN1 mstockstill on DSK4VPTVN1PROD with NOTICES EN03OC14.047 59832 Federal Register / Vol. 79, No. 192 / Friday, October 3, 2014 / Notices town, city, BR 902 916 972 906 943 859 864 859 859 859 888 Westmoreland 4 1139 1150 1447 1451 1018 1094 BR 930 913 954 832 861 853 801 801 899 814 854 882 801 872 808 3 1153 1322 Bristol Newport Philadelphia BR 643 643 643 663 643 643 643 643 952 652 643 643 643 668 666 696 867 Washington, town, town, 40 2 BR 674 535 542 500 522 519 526 563 532 515 537 529 562 522 534 494 728 STATE PAGE 1 STATE Fayette, Montgomery, BR 383 614 519 519 580 540 527 538 506 519 467 454 467 467 417 464 450 Barrington Middletown 0 within Perry of of Wyoming within ...... Butler, AREA Delaware, Northampton AREA towns towns FMR town FMR Dauphin, Luzerne, Beaver, of of town County County Lehigh, Chester, COUNTIES ...... Portsmouth Warren Pike Lackawanna, Lycoming Lancaster Components Counties Carbon, Centre Bucks, Berks Blair Erie Lebanon Bristol Cumberland, Cambria Newport Armstrong Allegheny, York Mercer .....••.••••...... •...... ••••.••....•..•• ...... BR BR ...... ••.••.....•...•.....•...• 965 903 885 859 ..••...... •.•.•...... • ..•.•...... ••..•...... ••..•...... •.. •...... ••...... 4 4 2099 1379 1004 1157 1129 1152 1546 1817 1050 1160 1048 1208 1168 1141 1407 •....•...... •...... ••...... BR BR 987 933 812 853 853 865 841 Indiana 3 3 1216 1117 1089 1044 1440 1435 1081 1165 1141 1069 Franklin 1176 Cameron Columbia Somerset Susquehanna Schuylkill Union Bedford Elk Juniata Greene Clearfield Northumberland NONMETROPOLITAN warren McKean Monroe BR BR 972 944 657 643 673 643 676 866 845 812 868 889 862 827 786 735 2 2 1156 1141 1185 1746 BR HOUSING 932 920 978 877 866 859 884 859 875 891 859 BR BR 959 954 678 661 631 630 656 681 624 549 534 542 590 525 898 475 4 1150 1021 1146 1176 1000 1001 1036 769 723 1 1 BR 917 978 917 990 862 803 853 851 804 801 808 835 845 888 801 801 BR BR 948 3 383 670 608 660 603 686 773 515 580 549 529 814 892 438 463 483 496 487 492 1052 1033 0 0 EXISTING .. BR 643 643 643 643 643 643 643 643 643 643 643 664 656 655 FOR 792 706 748 701 . . . . 2 MSA . . • • BR 613 631 542 522 520 542 528 526 501 542 552 542 591 560 486 RENTS 480 1 ...... BR ...... •.•.•..... 385 390 384 609 518 536 515 536 544 529 515 518 480 467 467 467 498 467 477 432 0 MARKET ...... PA-NJ-DE-MD HMFA • • ...... HMFA ...... RI . . . FAIR HMFA • PA . MSA • ...... PA MSA...... RI-MA Final PA HMFA PA 2015 MSA...... AREAS AREAS MSA...... MSA...... River, HMFA...... COUNTIES FY PA HMFA...... PA PA MSA...... MSA...... - FMR PA FMR PA MSA...... MSA...... MSA...... PA PA B HMFA...... County, .....•..•.••...... •...• PA PA PA MSA...... •.••...•....••.••• ...... • ...... •...... PA ...... •...... •...... ••...... •...... ••.•...... •.. •.••.....•.••...... •••.• •.•.....•.••••••...... ••• ISLAND PA College, .•.••....•...•••...... •...... County, SCHEDULE *Philadelphia-Camden-Wilmington, PENNSYLVANIA Pike Pittsburgh, Reading, Forest Fulton Providence-Fall Johnstown, Lancaster, Lebanon, Potter Crawford Clinton Sharon, Snyder Scranton--Wilkes-Barre, Sullivan State RHODE Bradford Huntingdon Lawrence Harrisburg-Carlisle, Erie, Jefferson Tioga Clarion Newport-Middleton-Portsmouth, NONMETROPOLITAN Adams Allentown-Bethlehem-Easton, Altoona, Armstrong York-Hanover, venango Wayne Williamsport, METROPOLITAN METROPOLITAN Montour Mifflin

VerDate Sep<11>2014 18:08 Oct 02, 2014 Jkt 235001 PO 00000 Frm 00094 Fmt 4703 Sfmt 4725 E:\FR\FM\03OCN1.SGM 03OCN1 mstockstill on DSK4VPTVN1PROD with NOTICES EN03OC14.048 Federal Register / Vol. 79, No. 192 / Friday, October 3, 2014 / Notices 59833 town, town, town, town, town, city, town BR 902 950 860 897 813 896 820 813 town, town, 4 1086 1077 1001 1188 Compton Shoreham town, Exeter city BR New 943 857 822 802 837 803 859 899 763 765 757 757 Richmond 3 Saluda Greenwich Warwick town, Providence Little town, town, BR town, 613 608 608 608 671 608 608 610 608 608 608 Providence East 711 Cumberland Glocester West 41 2 town, city, Woonsocket BR Richland, town, town, town, 513 513 532 526 492 449 449 482 479 449 481 449 city, STATE North 1 PAGE STATE town, Charlestown Hopkinton Burrillville Kingstown BR town, 529 522 489 446 491 491 446 479 476 446 478 446 Pawtucket Jamestown of of of 0 Foster within Dorchester Coventry Cranston of within Lexington, Greenwich North ...... towns town, towns towns of AREA town city, Lincoln Smithfield AREA towns city, West town, FMR towns FMR Pickens County County of County town town, town, town Charleston, Falls Fairfield, city, of County Smithfield Kingstown Edgefield Providence County COUNTIES East Central South Scituate Johnston Tiverton North Narragansett Warwick Westerly ..•...... Providence Florence Counties Sumter Spartanburg York Kent Berkeley, Darlington Kershaw Horry Laurens Components Calhoun, Greenville, Newport Anderson Aiken, Washington Washington ••....•.....•...... •..•...•.....••..•.•...... ••...... ••..• ...... BR BR .•.....•••...•••...•.•... 913 917 834 ...... •.....•...... 4 4 1226 1615 1389 1301 1139 1063 1387 1171 1012 1007 ...... BR BR 990 962 998 900 883 837 812 757 777 3 1231 1541 1217 1120 1026 1244 Lancaster 3 Cherokee Chesterfield Colleton Barnwell. Hampton Georgetown oconee NONMETROPOLITAN Union Allendale McCormick Marlboro BR BR 940 979 966 652 645 608 624 626 674 831 801 728 778 725 2 2 HOUSING BR 932 930 993 871 895 BR BR 610 656 502 611 527 644 529 506 568 SOB 4 1077 1077 1440 1021 1077 1077 1060 724 791 701 760 1 1 BR 909 825 868 889 896 757 793 757 765 797 781 BR BR 3 636 605 640 582 521 541 575 505 484 497 485 487 426 1192 759 0 0 EXISTING ...... BR .. 940 627 608 608 608 608 608 674 680 608 608 619 FOR ... 2 MSA MSA BR 513 519 503 513 513 455 449 449 449 458 497 793 SC RENTS ...... 1 SC HMFA HMFA BR 653 380 515 452 446 491 446 446 436 491 491 454 .....•..•.••..•. 0 MARKET ...... RI . . . . . MSA NC-SC MSA FAIR SC ...... •..•• Beach-Conway, GA-SC Hill, ...... ••...... •...... ••..•. Final Shoreham, HMFA ············ ...... SC HMFA HMFA Myrtle .. 2015 · ...... County, Charleston-Summerville, AREAS AREAS ...... •....•.....•.•...•....•. COUNTIES SC SC MSA FY ...... •.....••.... FMR FMR continued SC HMFA HMFA MSA B - County, MSA ...... sc SC SC ...... •.....•.....•...•.....• ..•....•...... ••...... •.•...... •. County, County, SC ...... •...... Beach-North .•.•...... ••....•...... •..•....•...... ISLAND CAROLINA ...... SCHEDULE Florence, Laurens Columbia, Clarendon Charleston-North Charlotte-Gastonia-Rock Chester SOUTH Sumter, Spartanburg, RHODE Bamberg Darlington Kershaw Beaufort Dillon Lee Jasper Greenwood Greenville-Mauldin-Easley, Orangeburg Newberry NONMETROPOLITAN Augusta-Richmond Anderson, Abbeville METROPOLITAN METROPOLITAN Westerly-Hopkinton-New Myrtle Marion

VerDate Sep<11>2014 18:08 Oct 02, 2014 Jkt 235001 PO 00000 Frm 00095 Fmt 4703 Sfmt 4725 E:\FR\FM\03OCN1.SGM 03OCN1 mstockstill on DSK4VPTVN1PROD with NOTICES EN03OC14.049 59834 Federal Register / Vol. 79, No. 192 / Friday, October 3, 2014 / Notices BR BR 974 923 902 944 979 946 946 946 946 946 946 863 886 855 886 886 855 855 870 4 4 1067 1190 1030 1226 1185 1028 1031 BR BR 922 943 943 943 943 943 953 957 943 943 943 960 971 946 949 986 941 859 898 855 883 891 890 883 818 878 883 867 893 797 797 797 3 3 BR BR 672 642 657 640 640 640 640 691 640 640 659 640 640 669 640 640 640 669 640 640 640 640 640 640 640 640 640 771 740 42 2 2 BR BR 516 570 500 532 547 540 540 512 502 531 540 540 540 473 497 473 473 473 487 493 473 473 473 486 PAGE 1 1 STATE Turner BR BR 563 541 509 517 468 468 438 468 468 439 468 468 481 468 468 480 489 468 494 468 474 468 456 468 468 468 474 468 468 468 468 474 457 473 0 0 within ...... Minnehaha, AREA FMR of McCook, ············· COUNTIES COUNTIES Pennington Counties Lincoln, Union Meade ...... •.. BR ...... 965 ...... •...... 4 1177 1406 1045 ...... Homme ...... BR 929 961 Faulk 1072 Potter 1000 3 Campbell Clark Custer Sanborn Spink Sully Bon Brown Day Hamlin Hanson Hughes Hyde Dewey Beadle Buffalo Edmunds Kingsbury Lawrence Jerauld Tripp Codington Gregory NONMETROPOLITAN NONMETROPOLITAN Yankton Moody McPherson Mellette BR 682 794 708 711 2 BR BR HOUSING 946 905 936 946 946 946 963 946 960 848 886 886 886 855 880 855 855 BR 551 594 550 565 4 4 1266 1115 1028 1047 1254 1032 1099 1134 1134 1103 1062 1 BR BR 911 914 956 943 943 925 929 933 943 943 943 943 959 943 935 883 830 891 886 883 855 883 893 897 851 797 797 781 BR 503 432 421 481 1043 1054 1039 1029 1024 1054 3 3 0 EXISTING BR BR 608 640 640 640 640 640 677 640 640 695 640 640 640 640 640 640 640 651 640 640 640 640 640 640 640 834 FOR 700 708 715 750 715 2 2 BR BR 616 513 517 540 523 540 523 540 556 500 540 503 534 540 540 517 540 536 521 529 540 515 481 473 RENTS 1 1 BR BR 362 609 511 522 548 554 508 522 468 450 468 468 468 468 466 474 468 468 468 486 468 468 474 468 468 468 474 468 476 468 468 468 468 468 468 474 468 498 0 0 MARKET ...... FAIR Final MSA...... 2015 HMFA...... AREAS COUNTIES COUNTIES MSA...... FY continued HMFA...... SD FMR SD ...... IA-NE-SD SD ...... B - ...... •...... Mix ...... •...... •. Falls, CAROLINA County, City, City, DAKOTA ...... •...... River ...... •...... SCHEDULE Ziebach Rapid Fall Lake Perkins Jones Corson Charles SOUTH SOUTH Shannon Sioux Sioux Stanley Hand Bennett Brookings Brule Butte Davison Deuel Douglas Haakon Harding Hutchinson Roberts Lyman Jackson Todd Clay Grant NONMETROPOLITAN NONMETROPOLITAN Aurora Williamsburg METROPOLITAN Meade Walworth Marshall Miner

VerDate Sep<11>2014 18:08 Oct 02, 2014 Jkt 235001 PO 00000 Frm 00096 Fmt 4703 Sfmt 4725 E:\FR\FM\03OCN1.SGM 03OCN1 mstockstill on DSK4VPTVN1PROD with NOTICES EN03OC14.050 Federal Register / Vol. 79, No. 192 / Friday, October 3, 2014 / Notices 59835 BR 953 Rutherford, 776 940 969 917 934 843 811 839 859 817 894 859 821 821 859 4 1029 1029 1029 1054 1019 1029 1109 1029 BR 856 840 808 836 856 824 856 802 842 856 851 855 838 861 724 776 762 724 772 757 782 785 731 761 741 761 779 725 724 776 3 BR Robertson, 611 611 609 661 627 691 581 581 581 581 581 599 585 583 581 581 595 581 581 581 581 581 581 581 581 595 581 2 43 Union BR Wilson 515 515 502 507 517 429 466 485 477 490 443 432 492 447 490 490 429 429 490 489 444 444 429 490 456 463 429 1 PAGE STATE Dickson, BR 395 359 395 398 395 395 364 395 395 395 395 362 395 395 395 415 440 404 449 404 426 470 Loudon, 395 395 396 379 395 0 within ...... Jefferson Williamson, Sequatchie Knox, Davidson, Tipton AREA Washington FMR Blount, Hamblen, Marion, Polk Shelby, Sullivan of Madison Cheatham, Trousdale, Unicoi, COUNTIES ...... ~ Fayette, Cannon, Counties Chester, Carter, Sumner, Smith Stewart Hamilton, Bradley, Hickman Hawkins, Grainger, Anderson, Macon Montgomery •...••••••....••.••••...... •...... •...... •... BR ...... •...... •...... •...... •...•.•...•.••.•.. 987 974 929 810 835 776 ...... •..••.....••••••. .••...... ••..•...... •.•••. .••...... •...... 4 1094 1122 1132 1112 1250 1162 1267 1213 ..•...... •••.•.••..••..••.. ...•.....•..•••....•.•...... ••...... •...... ••.•••...... ••...... •... •....•...... ••.••...•.•..... BR 971 946 904 997 879 861 724 795 788 798 1035 1034 1137 1130 Franklin Perry Putnam Cocke 3 Campbell Claiborne Crockett Sevier Haywood Benton Decatur Dyer Hardeman Henry Humphreys Roane Johnson Lauderdale Lewis Grundy Obion Giles NONMETROPOLITAN Warren Moore McMinn Marshall Meigs BR 683 642 678 658 581 593 581 581 832 850 714 729 774 781 2 HOUSING BR BOO 928 935 977 83S 802 821 888 801 811 859 834 891 821 821 8Sl 798 783 782 BR sao 628 574 599 531 511 S05 475 429 451 432 447 4 1038 1029 1029 1151 1070 1029 702 710 1 BR 877 856 871 861 848 856 856 890 817 724 724 750 740 795 772 797 727 778 733 776 724 724 724 790 724 724 777 724 BR 3 614 616 525 476 470 465 403 489 461 492 421 408 412 1007 391 0 EXISTING . so BR FOR 7 63S 62S 622 604 581 581 581 599 581 581 581 581 581 581 581 581 581 581 581 581 590 581 581 581 581 581 MSA 2 TN BR 525 501 S65 RENTS 444 429 429 479 429 429 468 485 437 429 462 429 429 457 448 444 429 448 458 449 444 474 490 444 1 ...... BR 395 395 395 395 395 395 369 395 395 561 423 407 465 425 454 401 411 469 411 397 395 395 395 346 395 395 395 0 MARKET MSA ...... FAIR TN-VA ...•...... ••...... •....•. •...... •...... •...... Final ••••.•....•••.•.•...•..••••. HMFA HMFA HMFA...... MSA 2015 HMFA...... HMFA...... HMFA...... AREAS MSA...... TN TN COUNTIES ...... •...... •••.•••...••...••. FY MSA...... TN TN TN MSA MSA...... FMR TN-GA TN-KY TN MSA B - TN TN ...... •...... ••.•...... ••...... TN TN-MS-AR ...... County, County, City, ...... •...... ••.•••...... •.•.•.....•.•.•...... •...•••.•...... ••...... •....••...... •.••.••...... ••..•...... •...... •...... •...... ••..•...•.•.•.•...... •....•••••••...... County, County, ..•.....•.••...... •.....•.•••.....••.•••...... •.....••...... •.•..••...... •...... •.•.... Buren SCHEDULE Fentress Jackson, Pickett Chattanooga, Clay Cumberland Cleveland, Carroll Clarksville, scott Smith Stewart Hickman Knoxville, Bedford Bledsoe DeKalb Hancock Hardin Henderson Houston Lake Rhea Johnson Kingsport-Bristol-Bristol, Jackson Lawrence Lincoln TENNESSEE Coffee Gibson Greene Overton Nashville-Davidson--Murfreesboro--Franklin, NONMETROPOLITAN Van METROPOLITAN Macon Memphis, Morristown, McNairy Maury Monroe Morgan

VerDate Sep<11>2014 18:08 Oct 02, 2014 Jkt 235001 PO 00000 Frm 00097 Fmt 4703 Sfmt 4725 E:\FR\FM\03OCN1.SGM 03OCN1 mstockstill on DSK4VPTVN1PROD with NOTICES EN03OC14.051 59836 Federal Register / Vol. 79, No. 192 / Friday, October 3, 2014 / Notices Rockwall BR BR Montgomery, 933 815 4 4 1073 Kaufman, BR BR 975 811 801 3 3 1129 1133 Liberty, Hunt, BR BR 643 662 581 766 2 44 2 Wilson Williamson Harris, Ellis, BR BR 500 1 1 PAGE STATE Randall BR BR Travis, 542 593 535 548 434 459 455 0 0 Denton, Guadalupe, Galveston, within Potter, Hays, Orange Robertson Taylor Tarrant Delta, Comal, AREA Bend, Wichita Waller ········ FMR Patricio Carson, Green Fort Jones, Parker, Caldwell, Bexar, of Jefferson, Clay, San Burleson, Dallas, Lubbock Victoria Upshur Tom Coryell COUNTIES Jacinto, COUNTIES Paso Irion, Chambers, Counties Calhoun Callahan, Collin, San Smith Nueces, Bowie Bastrop, Hardin, Brazoria Brazos, Kendall Bell, Lampasas Hidalgo Rusk Bandera, El Johnson, Ector Cameron Gregg, Grayson Crosby, Goliad, Armstrong, Aransas Atascosa Austin Webb Archer, McLennan Wise Medina Midland BR ...•..•....••...... ••. ...•...... •....•...... 955 958 ...... •....•..•...... 4 1416 1064 1148 1067 1247 1723 1012 1420 1121 1392 1396 1484 1350 1426 1502 1658 1289 1067 1057 1109 1271 1005 1603 1367 1028 1221 1247 1417 1021 1107 1184 1122 1155 1120 ...... BR 938 992 955 952 924 892 863 823 859 885 850 3 1111 1017 1086 1089 1421 1151 1161 1187 1229 1125 1198 1215 1379 1136 1021 1103 1445 1302 1139 1137 1113 1099 1003 1009 1044 Bee Bailey NONMETROPOLITAN NONMETROPOLITAN Andrews Weakley BR 921 936 693 643 656 648 661 670 877 803 893 872 827 835 896 890 821 828 838 777 745 737 701 739 757 714 794 771 756 764 742 766 712 2 1050 1160 1023 HOUSING BR BR 933 799 BR 643 622 651 610 650 651 699 690 618 615 695 639 698 619 567 545 535 563 526 528 579 547 565 575 508 587 566 570 834 890 4 495 477 4 1029 1142 1019 728 721 789 795 1 BR BR 905 847 843 801 777 BR 646 647 607 690 686 567 681 583 573 527 525 588 590 599 591 564 560 551 510 595 550 480 457 417 497 487 446 474 494 448 444 473 479 482 424 499 3 3 0 EXISTING . . BR BR • 645 692 643 581 598 FOR 2 2 BR BR 544 RENTS 429 442 475 1 1 ...... BR BR ...... 395 523 572 406 457 455 ...... •...... 0 0 MARKET ...... ••....•• • MSA ...... • ...... HMFA HMFA TX ..••....•...... •.•...... •....•....•.....• ...... FAIR HMFA MSA TX MSA ...... TX • TX TX MSA MSA ...... HMFA AR MSA...... •...... Final TX TX Land, TX TX Marcos, ...... Hood, HMFA HMFA...... HMFA...... MSA...... HMFA HMFA.. HMFA HMFA...... 2015 HMFA...... HMFA...... MSA...... TX TX TX TX AREAS COUNTIES COUNTIES Braunfels, TX TX TX TX HMFA...... HMFA...... FY TX TX TX MSA...... Arthur, FMR HMFA... Rock-San HMFA...... TX TX MSA.... TX MSA..... MSA...... MSA...... MSA...... B - HMFA...... TX-Texarkana, MSA...... MSA...... continued TX TX TX MSA...... County, County, TX TX TX TX County, MSA...... •....••.....•...... Falls, County, County, County, Station-Bryan, TX TX TX County, TX County, Christi, ...... TX County, County, Worth-Arlington, Antonio-New Angelo, Paso, SCHEDULE Fort Lampasas Laredo, Calhoun College Corpus San San Sherman-Denison, Beaumont-Port Brazoria Brownsville-Harlingen, Dallas, Houston-Baytown-Sugar Kendall Killeen-Temple-Fort Longview, Lubbock, Rusk Baylor El TENNESSEE TEXAS Texarkana, Tyler, Odessa, NONMETROPOLITAN NONMETROPOLITAN Abilene, Amarillo, Aransas Atascosa Austin Austin-Round Victoria, Anderson Angelina METROPOLITAN Waco, Wichita Wise McAllen-Edinburg-Mission, Medina Midland, Wayne...... White......

VerDate Sep<11>2014 18:08 Oct 02, 2014 Jkt 235001 PO 00000 Frm 00098 Fmt 4703 Sfmt 4725 E:\FR\FM\03OCN1.SGM 03OCN1 mstockstill on DSK4VPTVN1PROD with NOTICES EN03OC14.052 Federal Register / Vol. 79, No. 192 / Friday, October 3, 2014 / Notices 59837 BR 951 933 954 958 944 944 942 933 962 937 927 992 922 933 933 951 951 951 999 956 951 978 4 1082 1252 1226 1130 1505 1139 1139 1138 1469 1131 1051 1085 1101 1279 BR 948 948 948 971 923 929 948 951 948 939 964 968 948 951 948 904 948 948 951 960 948 979 811 885 836 898 896 801 899 801 801 892 858 861 850 879 864 875 866 875 857 893 857 811 3 1262 1020 1059 1126 BR 643 692 643 643 643 643 643 643 643 643 643 643 643 643 643 643 643 643 643 643 643 682 643 643 651 649 689 646 671 694 668 690 651 850 732 722 717 797 707 746 718 45 2 1013 BR 630 628 506 551 542 511 504 535 523 542 500 500 509 516 500 542 587 500 548 514 504 543 567 542 500 506 523 550 475 475 480 475 494 749 PAGE 1 BR 397 602 626 548 543 547 542 501 508 519 461 455 490 455 455 455 455 475 421 475 455 455 455 475 455 455 475 455 472 475 455 475 455 410 455 475 472 457 429 455 461 455 491 488 430 455 455 461 717 386 0 ...... · . · · · · · · · · · · · · ············· · COUNTIES ...... Smith Davis ...... Wells Fannin Foard Freestone Fisher Jim Jackson Cherokee Coleman Concho Cass Cochran Colorado Cottle Crockett Borden Brooks Deaf Hopkins Howard Kenedy King Brewster Burnet Dallam Dickens Donley Hall Hansford Harrison Haskell Henderson Hockley Hutchinson Kerr Kleberg Eastland Erath Jeff Grimes Gaines Gonzales Gillespie NONMETROPOLITAN BR HOUSING 933 927 933 933 951 951 933 993 948 933 982 933 933 951 933 933 944 933 999 922 957 933 951 950 859 891 859 859 4 1048 1063 1155 1020 1108 1139 1139 1021 1067 1002 1037 1207 1396 1139 BR 944 948 939 948 948 925 978 920 948 948 948 948 999 909 919 981 948 857 836 831 801 801 801 801 801 801 801 876 801 887 812 811 806 875 890 801 892 816 801 801 1024 1141 3 EXISTING BR 643 643 652 643 643 643 643 664 643 643 643 643 643 643 643 643 643 643 643 643 643 651 643 643 678 655 643 692 643 643 643 643 643 643 643 852 FOR 743 784 703 715 788 716 2 BR 630 665 500 542 542 542 516 500 500 536 542 593 500 542 542 506 501 505 501 530 511 500 542 542 500 557 556 RENTS 482 475 475 475 475 492 542 1 BR 388 383 625 526 549 555 579 506 558 507 519 455 455 495 455 455 455 470 455 475 455 455 455 472 455 498 455 432 455 475 455 455 455 475 455 461 455 469 480 464 484 455 490 455 455 455 455 455 475 383 0 MARKET • ...... •. FAIR .. ... • ····· · • Final ·········· 2015 COUNTIES FY ...... B - ...... continued ...... Hogg SCHEDULE Floyd Falls Fayette Franklin Frio Jack Jasper Jim Coke Comanche Cooke Camp Crane Culberson Castro Childress Collingsworth Brown Dawson Hood Blanco Bosque Briscoe DeWitt Dimmit Duval Hale Hamilton Hardeman Hartley Hemphill Houston Hudspeth Karnes Kent Kimble Kinney Edwards Hill TEXAS Garza Glasscock Gray NONMETROPOLITAN

VerDate Sep<11>2014 18:08 Oct 02, 2014 Jkt 235001 PO 00000 Frm 00099 Fmt 4703 Sfmt 4725 E:\FR\FM\03OCN1.SGM 03OCN1 mstockstill on DSK4VPTVN1PROD with NOTICES EN03OC14.053 59838 Federal Register / Vol. 79, No. 192 / Friday, October 3, 2014 / Notices BR 944 933 933 973 973 944 933 943 933 933 933 933 955 951 951 951 951 951 925 951 941 951 949 909 859 859 859 4 1072 1087 1050 1114 1238 1139 1010 1088 1139 1139 1139 1036 BR 937 907 948 948 932 952 947 922 963 912 942 948 935 948 938 948 905 945 945 948 948 948 940 948 948 801 868 801 872 801 843 811 875 801 864 823 805 883 801 889 882 899 885 1063 1046 3 BR 643 643 643 643 643 643 643 643 643 643 643 643 643 643 643 643 643 643 643 643 643 643 643 643 643 643 673 643 646 651 699 671 645 651 649 654 755 728 719 710 714 705 46 2 BR 542 542 542 506 542 542 517 501 533 566 531 542 511 506 542 525 542 511 503 542 521 542 508 580 528 483 491 497 480 480 PAGE 1 BR 383 535 568 560 521 505 455 457 455 477 455 461 455 455 475 455 416 455 455 479 455 455 475 455 475 467 455 468 455 455 475 455 475 461 455 455 475 455 455 475 455 455 455 475 455 498 492 499 455 400 459 455 463 475 0 ...... COUNTIES ...... •...... •...... •...... Pinto Oak ...... Zandt Saba ...... Salle Palo Parmer Polk Lee Loving Roberts San Somervell Swisher Sabine Scurry Shelby Stephens Stonewall Lamar La Limestone Rains Real Reeves Live Terry Titus Tyler Ochiltree NONMETROPOLITAN Nacogdoches Newton Yoakum Uvalde Van Ward Menard Montague Wharton Wilbarger Winkler McCulloch Madison Martin Matagorda Mills Morris BR HOUSING 933 933 959 951 963 933 951 933 951 933 933 951 933 933 955 951 933 951 992 968 859 859 4 1035 1004 1004 1139 1139 1096 1139 1197 1139 1139 1139 1139 1111 1025 1139 1003 1139 1119 BR 950 923 933 948 959 948 914 948 924 904 948 996 948 920 948 948 964 975 948 948 948 944 801 859 836 801 801 823 801 821 850 802 842 801 801 888 801 823 877 872 853 882 1000 1001 3 EXISTING BR 643 643 643 643 643 679 643 651 643 643 643 643 643 661 643 643 676 643 643 643 643 643 643 643 643 643 643 643 643 672 643 658 643 643 643 654 661 643 656 FOR 721 742 2 BR 621 621 736 500 542 502 542 506 500 542 507 542 536 500 542 570 531 542 522 542 500 542 567 524 555 500 536 542 558 550 RENTS 475 483 485 475 1 BR 533 546 508 526 455 455 408 455 455 488 475 481 455 461 455 455 475 426 455 455 455 455 479 455 462 475 455 455 455 455 475 455 475 472 455 455 475 455 455 475 476 455 466 455 455 455 474 468 455 482 475 0 MARKET ...... · ...... · · FAIR · · · · · · Final · · · · · 2015 · · COUNTIES · FY · ...... ····················· ...... B - ...... •...... continued ...... •...... •••••••••••••••••••••••••••• ...... River Augustine Verde SCHEDULE Lamb Lavaca Lynn Panola Pecos Presidio Refugio Llano Sherman San Schleicher Shackelford Sutton Starr Sterling Upton Knox Red Leon Lipscomb Reagan Runnels TEXAS Throckmorton Oldham Terrell Trinity NONMETROPOLITAN Navarro Nolan Val Walker Washington Wheeler Willacy McMullen Marion Mason Maverick Milam Moore Motley Mitchell Wood

VerDate Sep<11>2014 18:08 Oct 02, 2014 Jkt 235001 PO 00000 Frm 00100 Fmt 4703 Sfmt 4725 E:\FR\FM\03OCN1.SGM 03OCN1 mstockstill on DSK4VPTVN1PROD with NOTICES EN03OC14.054 Federal Register / Vol. 79, No. 192 / Friday, October 3, 2014 / Notices 59839 town, town, town, town, town, town, Essex town, town BR BR 937 933 910 821 Milton Isle 4 4 1073 1023 1283 1241 1119 1240 Fletcher gore, town, Montgomery town, Hero town, BR BR Berkshire town, 755 783 990 989 893 801 818 1115 1020 1279 3 3 Grand town, Buels Westford town, South town, BR BR Albans 643 692 606 606 606 606 868 757 795 794 town, 47 2 2 town, town, Jericho Colchester Shelburne St. town, BR BR 671 638 670 511 511 584 511 511 475 Fairfield 732 STATE Highgate 1 1 PAGE town, town, STATE town, city, Bolton Hero Alburgh city BR BR Bakersfield town, town, 604 603 659 575 525 455 460 460 460 460 of of Underhill town 0 0 within of North within George Albans ...... towns towns Charlotte city, AREA Huntington Winooski towns Fairfax St. St. AREA Georgia town, Swanton Weber FMR FMR city, town, town, County County of town, town, town, town, town, County of Motte Burlington Morgan, Isle La Utah Lake COUNTIES COUNTIES Isle Richmond Franklin Enosburg South Sheldon Burlington Hinesburg Richford Williston Franklin Cache Counties Chittenden Summit Salt Davis, Juab, Tooele Components Grand Washington ..••....•....••••.•..•• ...... BR BR ....••...... •....•.... .•...... •....•...... •....••..•...... 4 1317 1513 4 1140 1351 1344 1411 1241 ...... • Elder Juan BR BR 977 934 3 Zapata 1097 1103 1047 1663 1953 1285 1406 Piute 3 Sevier San Box Kane Daggett Emery Grand NONMETROPOLITAN NONMETROPOLITAN Wasatch BR BR 901 649 778 763 763 757 2 1014 2 1328 HOUSING BR BR 951 946 971 877 890 841 861 851 BR BR 639 594 581 568 4 490 4 1302 1073 1050 1344 727 749 1 1 1017 BR BR 948 854 838 854 893 861 757 755 755 793 BR BR 606 682 936 500 505 538 487 485 1083 1160 3 3 0 0 EXISTING . • BR BR . 666 643 606 608 606 606 606 606 637 606 859 FOR 735 2 2 . . • . . BR BR • 620 635 542 511 511 511 511 511 RENTS 492 464 451 484 1 1 . . • • . BR BR ..•...... •..... • 396 631 558 455 460 461 448 410 460 460 481 460 • 0 0 MARKET . . MSA • ...... FAIR VT • • . • ...... • . Final MSA HMFA...... 2015 UT HMFA...... HMFA...... Burlington, AREAS AREAS COUNTIES COUNTIES UT FY UT UT MSA..... MSA...... FMR FMR MSA...... UT UT B - City, ...... • ...... County, County, UT-ID ...... •...••.••.•...... •...... •...• .•...... ••.••..•..••...... continued ...... Lake ...... •...... •...... •.....• George, SCHEDULE Iron Logan, Provo-Orem, Zavala...... Summit Sanpete St. Salt Uintah Beaver Duchesne Rich Burlington-South TEXAS Tooele Ogden-Clearfield, Carbon Garfield NONMETROPOLITAN NONMETROPOLITAN UTAH wayne VERMONT Young...... METROPOLITAN METROPOLITAN Millard

VerDate Sep<11>2014 18:08 Oct 02, 2014 Jkt 235001 PO 00000 Frm 00101 Fmt 4703 Sfmt 4725 E:\FR\FM\03OCN1.SGM 03OCN1 mstockstill on DSK4VPTVN1PROD with NOTICES EN03OC14.055 59840 Federal Register / Vol. 79, No. 192 / Friday, October 3, 2014 / Notices town, town, town, town, town, town, town, town, town, town, town town, town, town, town, town, town, town, town, town, town, town, town, town, town, Peru town, town, town, town, Calais Tabor town, Chelsea Haven town, town, Stowe Hancock Dover Monkton Wells Poultney Jay Topsham Whiting town, Lemington Brighton Hubbardton town, Charleston city, Norton Walden Waterbury Glover town, town, East Cornwall Elmore Chittenden Mount town, town, town, town, town, Ripton Sandgate Shrewsbury Orange town, town, town, town, town, town, town, town town, town, town, Groton Newark Newport town, town, town, gore town, town, town, town, town, town, town, town, town, town, Cabot town, town, town town, town, Fayston 48 town, town, town, city, Manchester Stamford Dorset Haven Montpelier town Eden Derby Johnsbury Plainfield town, Irasburg Granville Starksboro Sutton Brookfield Holly Brookline Thetford Woodford Washington Warren town town, Pittsford Weybridge Warren's Middlebury Morristown PAGE Panton counties Rupert Bristol Concord Guildhall Wallingford town, Fair St. Bloomfield Rutland Newbury Maidstone town, town, town, Lyndon Castleton Westmore Mendon town, town, town, Brownington Newport town, town, town, town, town town town, town, town, town, town, town town, Danville Mount town, town, town, town, Berlin town, town, town, town, town, town, grant, town, town, town, town, city, Rutland gore, town, town, town, town, town, town, town, town, Williamstown Montpelier town, Landgrove Goshen Holland Winhall Wolcott West Middlesex Canaan Cambridge Shoreham Shaftsbury Stannard Bennington Danby Lincoln Johnson Granby Orwell Vershire Waltham Wheelock Strafford Northfield worcester Kirby Braintree Craftsbury Ryegate Fairlee East Bridport Rutland Tinmouth Avery's Warner's Waitsfield town, Pittsfield nonmetropolitan Readsboro Burke Barton Brandon Brattleboro Morgan town, town, Barre Lunenburg town, town, town, town, town, Springs Westfield town, town, town, town, town, town, town, town, town, town, town, town, town, city, Killington town, town, town, town, town, town, town, town, town, town, town, town, town, town, town, town, town, town, town, town, town, town, town, city, within town, Park Fairlee Haven town, Haven Ira Pownal Ferrisburgh Peacham Ferdinand Randolph Pawlet Proctor Corinth Sunderland Sudbury Searsburg Salisbury Sheffield Hyde Barnet Hardwick Brunswick Lewis Belvidere Bradford Benson Barre Duxbury Roxbury Leicester Lowell Towns Troy Tunbridge Glastenbury Coventry Greensboro Clarendon Albany woodbury Addison Vergennes Arlington Averill Victory Athens New Waterford Waterville West West Middletown Marshfield Moretown BR 4 1550 1226 1144 1033 1373 1560 1493 1270 1700 BR 954 890 1283 1140 1003 1404 1113 1583 1126 1247 1185 3 BR 904 925 935 966 983 972 805 894 715 762 2 HOUSING BR 603 637 679 780 719 775 747 713 793 729 1 BR 642 647 641 616 648 557 547 532 717 788 0 EXISTING FOR RENTS MARKET FAIR Final ...... •.•...•...... •...... •...••.....•••...• VT VT...... •...... •...... 2015 VT VT...... COUNTIES VT VT...... VT...... VT...... FY VT...... VT...... County, County, B - County, County, continued County, County, County, County, County, County, SCHEDULE Rutland Lamoille Caledonia Bennington Essex Orange Orleans NONMETROPOLITAN VERMONT Addison Washington Windham

VerDate Sep<11>2014 18:08 Oct 02, 2014 Jkt 235001 PO 00000 Frm 00102 Fmt 4703 Sfmt 4725 E:\FR\FM\03OCN1.SGM 03OCN1 mstockstill on DSK4VPTVN1PROD with NOTICES EN03OC14.056 Federal Register / Vol. 79, No. 192 / Friday, October 3, 2014 / Notices 59841 town, town, town, city, town, city town, town, city, York, city, Sussex, Queen, city, city, city Newfane town, Suffolk Halifax town, and Stratton city, Bethel town Surry, Rochester Norwich town, town, Cumberland, Salem George, town, town, city, Bedford King Alexandria town, town, News town, Petersburg Loudoun, Weston town, town, Charlottesville 49 city, Wilmington Prince Chester city Mathews, Fredericksburg Woodstock town, city, Marlboro Henrico, Guilford Newport Somerset Stafford, Barnard Ludlow Campbell, town, PAGE Portsmouth counties city Reading Nelson, Wardsboro town, Fauquier, STATE Springfield town, Roanoke Chesterfield, city, city James, town, town, city, city town, town, town, Powhatan, Park town, town, city, city Hopewell town, city Hanover, Bedford, Greene, within Williamsburg city Church Wight, Fairfax, Bristol Windsor Roanoke, Charles, Kent, Cavendish Whitingham Weathersfield city, Hampton Grafton of Spotsylvania, AREA Vernon Pomfret city, Sharon Hartland Manassas Poquoson Falls Baltimore Danville Londonderry New town, nonmetropolitan Rockingham town, town, town, Isle FMR Radford Harrisonburg town, Fluvanna, Craig, Clarke, city, Winchester Goochland, town, city town, town, town, Heights Beach of city, city Appomattox, town, town town, Caroline, city, city, town, Washington, William, within Windsor William, Putney Plymouth Royalton Franklin Pulaski Prince Fairfax Frederick, Pittsylvania, Counties Chesapeake Stockbridge Scott, Dummerston Bridgewater Hartford Rockingham, Dinwiddie, King Richmond Botetourt, Jamaica Louisa Lynchburg Towns Townshend Giles Colonial Gloucester, Norfolk Andover Albemarle, Amherst, Amelia, Virginia Arlington, Westminster Windham West Warren Montgomery, Manassas BR BR 914 975 974 4 4 1298 1498 1064 1528 1054 1100 1015 1582 1087 1926 1296 1390 1326 2451 BR BR 911 937 955 959 821 861 820 3 1026 1321 1096 1051 1306 1530 1292 1114 1208 3 BR BR 993 910 643 643 643 658 643 863 819 733 713 746 732 2 2 1017 1038 1107 1458 1951 HOUSING BR BR 662 920 633 618 601 611 684 524 508 542 511 542 587 875 838 735 1 1 1230 9 BR BR 662 527 658 572 55 507 679 519 580 894 412 445 491 461 730 797 0 0 1167 EXISTING . . ••. FOR ...... • • MSA ...... • HMFA • RENTS . • . HMFA VA-NC . . ••.•.•.•...•.. • VA MARKET DC-VA-MD MSA News, FAIR TN-VA Final ...... HMFA...... MSA...... HMFA...... 2015 HMFA HMFA...... MSA HMFA...... AREAS VA VA MSA...... COUNTIES VA VT...... FY VA VA HMFA...... VA VA MSA. FMR MSA...... HMFA...... VA-WV B - VA VA Beach-Norfolk-Newport VA County, VA continued County, County, County, County, County, SCHEDULE *Richmond, *Virginia Franklin Pulaski Charlottesville, Blacksburg-Christiansburg-Radford, Danville, Harrisonburg, Kingsport-Bristol-Bristol, Roanoke, Louisa Lynchburg, Giles NONMETROPOLITAN VERMONT VIRGINIA Windsor METROPOLITAN Warren Washington-Arlington-Alexandria, Winchester,

VerDate Sep<11>2014 18:08 Oct 02, 2014 Jkt 235001 PO 00000 Frm 00103 Fmt 4703 Sfmt 4725 E:\FR\FM\03OCN1.SGM 03OCN1 mstockstill on DSK4VPTVN1PROD with NOTICES EN03OC14.057 59842 Federal Register / Vol. 79, No. 192 / Friday, October 3, 2014 / Notices BR 952 952 874 859 4 1082 1042 1033 1617 1033 1187 1493 1033 1182 1077 1142 1082 1402 1226 1139 1020 1440 1208 1696 1408 1208 1020 1091 BR 993 948 993 959 836 862 870 801 801 826 801 823 843 829 870 826 1017 1367 1435 1005 1183 1102 1550 1111 1004 1017 1057 3 BR 692 643 643 643 643 643 643 974 682 643 677 643 643 674 649 690 645 674 690 803 843 816 806 801 752 50 2 1036 1056 BR 623 620 678 610 634 548 547 511 542 502 582 540 529 575 542 571 594 548 582 542 540 822 891 475 475 491 766 1 PAGE STATE BR 616 619 606 544 524 508 519 557 551 519 590 544 557 519 513 853 499 472 472 449 498 493 487 449 761 787 519 0 within ...... AREA FMR of Franklin Douglas ••···••······ Skamania ...... Snohomish ...... COUNTIES com ...... •..•.•. city .•••...... •.... city ....•...... •.•..•.•• ...... • ...... Pierce Cowlitz Clark, Chelan, Spokane Skagit Benton, King, Kitsap Thurston Counties Asotin What ....•..•...•....•.•...... •..•...... • ...... • ...... •••...... •...•.•....•• .•.•.•..•••...... •.• .•.•....•...... ••.••.•• ...... • •...... •.•...... •..•.• city Forge city BR .•••..••....•....••.••.•• .••.•••••••...••.•.••...... •..• 4 1533 1392 1817 1672 2090 1746 1428 1231 1305 1254 1936 1350 city ...... •..•••.•.••..••.••.•• .....•....••....••..•••.••...... •..••...•...... •..•• George .....•.....•..•....•...... •...... •.••.. BR 959 899 Floyd Rappahannock Patrick 1372 1387 1465 1108 1086 1486 1391 1739 1105 1611 3 Charlotte Clifton Shenandoah Southampton Staunton Brunswick Buckingham Henry King Bath Dickenson Lee Rockbridge Emporia Orange Galax Greeneville Northumberland NONMETROPOLITAN Alleghany Wythe Westmoreland Madison Middlesex Martinsville BR 948 988 944 695 829 737 773 762 2 1093 1020 1026 1180 BR HOUSING 951 926 957 984 915 859 871 859 BR 648 959 563 538 599 571 838 839 4 1402 1184 1033 1091 1394 1139 1410 1308 1045 1036 1033 1017 1182 1082 1077 1182 1017 1402 778 735 793 721 1 BR 928 948 968 998 993 870 801 801 849 820 863 877 812 884 801 813 801 843 843 801 BR 3 613 607 682 661 689 566 811 425 460 453 1057 1435 1725 1093 1004 1057 1145 1246 1081 1041 769 0 EXISTING BR . . . 7 6 4 974 643 643 643 643 643 643 693 664 652 643 643 643 643 677 674 677 643 868 878 806 801 801 FOR 745 777 757 775 777 2 . . • . . BR • 628 634 638 634 610 542 542 542 542 501 542 512 540 586 542 542 542 542 571 571 542 560 574 574 RENTS 759 732 1 ...... BR MSA 602 633 645 649 612 606 513 519 519 579 519 519 509 536 570 527 582 570 519 519 519 519 544 548 519 513 498 498 498 519 0 MARKET ...... •...•...... ••..••.••...... OR-WA FAIR MSA MSA ...... •...... •....•... ·•·•• MSA . . WA WA • .•...... •.•...... MSA WA . . Final • WA • HMFA . . • 2015 WA • AREAS ...... •...••...• COUNTIES MSA...... •..•.•..... FY Wenatchee, MSA...... •.•.....••.••.• .....•.•...... FMR MSA...... city HMFA...... WA MSA. MSA...... •..•...... •...• ...•...... ••...... •...... city B - ID-WA city city WA •.•.•••.•..••...... •...... ••....••...••...... continued city WA WA WA .•••.••...•.....•.••••.• ..•....•....•...... •...... •...... •...... • ...... •...... •..•...••.••.••.•.• ....••.•••....•.....•.•.. ...•...... •..•.••.....•.• .•...... •...•...... •...... Edward city Vista Vernon-Anacortes, ..••.•..••.....•••...... •.••..••.••.•.•...... •...... •....•...... • ...•..•••...••.••••.•••..•.• ..•.•....•.•••..••...... • SCHEDULE *Tacoma, Page Prince Franklin Portland-Vancouver-Hillsboro, Essex Lexington Culpeper Carroll Smyth Spokane, Seattle-Bellevue, NONMETROPOLITAN Bland Buchanan Halifax Highland Richmond Russell Buena Bellingham, Bremerton-Silverdale, Kennewick-Pasco-Richland, Lancaster Lunenburg Lewiston, Longview, Tazewell Grayson Covington Olympia, Northampton Nottoway Norton VIRGINIA Accomack Augusta WASHINGTON Wise Waynesboro METROPOLITAN Wenatchee-East Mecklenburg Mount

VerDate Sep<11>2014 18:08 Oct 02, 2014 Jkt 235001 PO 00000 Frm 00104 Fmt 4703 Sfmt 4725 E:\FR\FM\03OCN1.SGM 03OCN1 mstockstill on DSK4VPTVN1PROD with NOTICES EN03OC14.058 Federal Register / Vol. 79, No. 192 / Friday, October 3, 2014 / Notices 59843 BR BR 903 938 915 959 955 865 886 4 4 1052 1302 1052 1297 1208 1111 1401 1449 1099 1190 1200 1170 1030 1126 BR BR 947 912 920 918 951 801 827 882 813 853 817 877 836 843 782 782 797 782 3 3 1203 1339 1205 1186 1027 1286 1085 BR BR 643 909 974 643 677 647 679 628 628 664 628 656 628 628 628 628 838 818 876 767 724 736 708 51 2 2 BR BR 647 619 696 605 619 542 513 543 562 597 530 527 530 500 524 475 464 464 492 485 764 1 PAGE 1 STATE STATE BR BR 399 507 574 548 522 520 507 515 518 466 481 459 456 419 465 461 496 489 482 475 478 491 497 Putnam 759 374 0 0 within within ...... Wood AREA AREA Lincoln, FMR FMR Preston Wirt, Ohio Morgan of of Hancock Wayne Kanawha, COUNTIES COUNTIES Pleasants, Counties Counties Clay, Cabell, Yakima Boone Brooke, Hampshire Berkeley, Jefferson Monongalia, Mineral Marshall, ...... •.. BR BR ...... ••.. 936 997 948 847 ...... •...... • 4 4 1007 1240 1064 1035 1169 1050 1025 1390 ...... Juan BR BR 940 843 862 875 879 814 782 Island Pocahontas 1027 Ferry Lewis Pacific 1126 1015 1014 1114 3 3 Clallam San Braxton Doddridge Harrison Lewis Randolph Kittitas Grant Gilmer Greenbrier Nicholas NONMETROPOLITAN NONMETROPOLITAN Wahkiakum Whitman Mason McDowell Mason Mingo BR BR 628 643 638 642 656 634 854 819 769 714 786 752 2 2 BR BR HOUSING 906 986 982 859 886 892 843 886 BR BR 634 633 597 542 631 592 533 599 519 509 4 491 4 466 1052 1072 1045 1005 1606 1050 1181 1121 1181 1295 1196 1014 1086 1 1 BR BR 901 940 972 932 966 925 915 929 898 801 851 801 848 826 841 841 871 871 804 889 782 782 BR BR 380 607 3 533 596 517 580 490 463 459 456 462 481 1130 1082 3 0 0 EXISTING BR BR 907 643 655 643 681 680 643 667 685 667 663 628 628 675 699 628 628 631 628 786 628 FOR 731 738 735 2 2 BR BR 670 603 542 542 527 574 535 506 540 522 519 530 530 530 558 RENTS 484 475 493 490 486 499 464 493 1 1 ...... BR BR 540 516 507 596 554 419 427 419 454 443 419 480 408 490 477 452 491 436 496 461 490 491 491 MSA 0 0 MARKET ...... FAIR WV-OH MSA MSA ...... Final OH-WV HMFA WV-KY-OH 2015 WV MSA...... MSA...... HMFA...... AREAS AREAS COUNTIES HMFA...... COUNTIES MSA...... FY HMFA...... MSA...... WV FMR FMR WV ...... VA-WV WV WV MD-WV ...... continued B - MSA...... County, WV-OH ...... WA ...... • ...... •...... County, Harbor Walla ...... •...... Oreille VIRGINIA SCHEDULE Pend Parkersburg-Marietta-Vienna, Fayette Pendleton Lincoln Jackson Columbia Cumberland, Calhoun Charleston, Stevens Steubenville-Weirton, Yakima, Boone Huntington-Ashland, Barbour Hardy Logan Raleigh Klickitat Jefferson Jefferson Okanogan Grays Grant Garfield NONMETROPOLITAN NONMETROPOLITAN Adams WASHINGTON WEST METROPOLITAN Walla METROPOLITAN Wheeling, Winchester, Martinsburg, Morgantown, Marion Mercer Monroe

VerDate Sep<11>2014 18:08 Oct 02, 2014 Jkt 235001 PO 00000 Frm 00105 Fmt 4703 Sfmt 4725 E:\FR\FM\03OCN1.SGM 03OCN1 mstockstill on DSK4VPTVN1PROD with NOTICES EN03OC14.059 59844 Federal Register / Vol. 79, No. 192 / Friday, October 3, 2014 / Notices BR BR 929 951 923 922 907 900 996 964 951 839 854 859 889 862 897 4 4 1112 1142 1139 1231 1090 BR BR 925 907 920 948 966 948 829 896 805 890 801 818 879 803 801 836 782 796 782 3 3 1024 BR BR 643 643 643 643 643 643 643 643 643 628 631 628 639 628 679 645 645 695 671 719 52 2 2 Waukesha BR BR 530 529 517 535 501 542 521 557 543 538 542 496 475 487 489 499 477 489 482 496 1 PAGE 1 STATE BR BR 384 399 500 404 450 491 491 408 408 472 404 408 441 408 443 472 429 428 408 383 0 0 within Washington, ...... AREA Claire FMR Croix Ozaukee, Eau Outagamie of Lac St. Kewaunee du COUNTIES COUNTIES Crosse Iowa Fond Rock Pierce, Columbia Chippewa, Counties Sheboygan Douglas Brown, Kenosha Dane La Racine Oconto Calumet, Winnebago Milwaukee, Marathon ...... •...... •...... BR ...... 922 932 ...... • ...... 4 1157 1232 1080 1121 1096 1141 1106 1008 1009 1368 1426 1236 1656 1178 1020 1039 Lake ...... BR 984 976 952 919 906 959 961 886 3 Roane Florence Pepin 1053 1077 1012 1143 1403 Langlade 1020 1101 1306 1280 1001 Crawford Door Bayfield Burnett Jackson Juneau Taylor Tyler Grant Green NONMETROPOLITAN NONMETROPOLITAN Ashland Wyoming Webster Manitowoc Monroe Marquette BR 928 996 692 643 665 690 679 899 896 746 755 748 753 754 754 755 728 763 2 BR BR HOUSING 968 998 933 940 891 839 888 859 859 BR 557 572 542 513 538 551 574 584 564 569 519 565 556 521 4 4 1045 1112 1005 1099 1139 1247 1055 1060 1254 766 713 796 701 1 BR BR 948 925 925 953 922 946 888 825 845 871 856 890 801 826 839 875 856 859 876 875 801 BR 3 640 641 502 520 587 579 561 501 412 499 478 452 468 449 433 468 474 8 6 4 1118 3 0 EXISTING BR BR 628 628 628 630 628 643 685 675 643 655 643 687 643 643 643 643 643 829 FOR 747 708 2 2 ...... BR BR 632 530 505 530 542 530 569 508 575 RENTS 487 498 475 484 475 493 475 475 475 1 1 MSA ...... BR BR 383 551 491 491 491 484 491 408 408 496 499 444 422 408 436 493 408 408 493 408 497 388 MSA 0 0 MARKET MN-WI WI • ...... • • FAIR • • • • Allis, • ...... • Final • • • HMFA • HMFA...... MSA...... • ...... 2015 HMFA...... • AREAS WI MSA...... • Paul-Bloomington, COUNTIES COUNTIES HMFA...... WI WI MSA...... • FY WI MSA...... MSA...... • continued HMFA...... MSA. MSA...... • FMR WI WI MSA...... • HMFA.. WI WI • B - WI WI-MN WI MSA...... MSA...... • WI • ...... County, WI • Lac, County, WI WI MN-WI • ...... County, ...... Bay, ...... County, r s du VIRGINIA ...... Claire, Crosse, SCHEDULE Ulllllle Iowa Iron *Milwaukee-Waukesha-West Fond Racine, Forest Lafayette Columbia Clark s Sheboygan, Upshur Dodge Dunn Duluth, Eau Kenosha La Barron Buffalo Ritchie Lincoln Janesville, Jefferson Tucker Green Oconto Oshkosh-Neenah, Green Oneida NONMETROPOLITAN NONMETROPOLITAN Adams WEST Appleton, WISCONSIN Wetzel METROPOLITAN Wausau, Madison, Minneapolis-St. Marinette Menominee

VerDate Sep<11>2014 18:08 Oct 02, 2014 Jkt 235001 PO 00000 Frm 00106 Fmt 4703 Sfmt 4725 E:\FR\FM\03OCN1.SGM 03OCN1 mstockstill on DSK4VPTVN1PROD with NOTICES EN03OC14.060 Federal Register / Vol. 79, No. 192 / Friday, October 3, 2014 / Notices 59845 Rincon, BR BR BR 922 968 922 981 865 888 4 4 4 1263 1065 1020 1020 1048 1090 1005 1060 1014 1181 1696 1096 BR BR BR Moca, 956 921 901 908 989 900 911 842 831 886 859 852 825 885 898 1177 1051 1639 3 3 3 Orocovis, BR BR BR 676 643 643 643 684 647 643 679 643 671 643 643 643 805 763 713 700 Lares, 2 53 2 1112 2 Lorenzo Maunabo, BR BR BR 921 601 679 503 523 582 506 520 502 549 542 542 542 475 475 478 475 478 San 1 1 1 PAGE STATE STATE Isabela, BR BR BR 615 525 502 545 513 472 405 461 472 416 444 475 498 475 492 492 492 774 Ciales, 0 0 0 Gurabo, within within ...... Afiasco, Hatillo AREA AREA Cidra, FMR FMR Barranquitas, Camuy, of of Cayey, Aguadilla, COUNTIES COUNTIES Sebastian COUNTIES Caguas, Counties Counties San Laramie Quebradillas Natrona Aguada, Arecibo, Aibonito, •..•.•...•.••....•...... •...•..•...•...... •..•.••.•..•...... •...... •...... •••.•...... •... BR BR .••.•...... •...... 901 660 570 725 .••.•.•.....•...•.....•... .•..•.••.....••...•.....•. ..••...•..•....•.••...... 4 4 1282 1325 ...... •....••.•...... •...•.•.•...••...... •. Horn BR BR 683 647 519 799 3 Portage Richland 1115 1094 Platte 3 Carbon Crook Shawano Sauk Sublette Big Johnson Trempealeau Goshen Teton Niobrara NONMETROPOLITAN NONMETROPOLITAN NONMETROPOLITAN Vilas Washburn Waushara Washakie BR BR 530 550 468 420 757 798 2 2 HOUSING BR BR BR 964 953 981 977 971 859 859 859 881 BR BR 390 350 572 590 4 4 4 443 423 1222 1603 1853 1141 1155 1221 1139 1099 1139 1454 1101 1019 1 1 BR BR BR 957 974 967 948 918 923 854 819 853 832 801 801 801 861 BR BR 370 314 500 519 420 415 1193 1023 1127 1550 1089 1151 1095 3 3 3 0 0 EXISTING BR BR BR 914 905 643 644 643 643 643 643 643 661 643 643 660 668 838 821 FOR 712 721 761 2 2 2 1064 •.....• BR BR BR 614 743 669 632 662 533 542 590 526 542 509 519 871 RENTS 475 476 475 475 481 496 489 496 729 1 1 1 ...... HMFA PR BR BR BR MSA 383 699 628 576 566 516 568 560 511 812 429 408 473 408 408 477 429 485 492 460 492 0 0 0 MARKET PR . . . FAIR Final Sebastian, 2015 AREAS AREAS ...... •..•..•..•.•..•...•...•.• COUNTIES COUNTIES COUNTIES ...... •...... •.•.•...•••••. FY FMR FMR MSA...... HMFA ...... • B - HMFA MSA...... •...• continued WY PR ..•...... •.....••...... •...•...... •...... •...... • •.....•.•..•...•..•••.•• Islands PR WY ...... ••.•...... ••• ...... •.•...... RICO ...... •.•...... • ...... •...•...•...... ••••.•..••• •.....•.•.....••.•...••.•...... •...... •.•...•.....•.•.•..•••••.• ....•...•.....•.•.••...•.•.• ...... •.....•....•••..•.•..• ...••...•...•.•..•...•....•• Springs SCHEDULE PUERTO Polk Rusk Fremont Park Price Lincoln Pacific Cheyenne, Campbell Caguas, Sawyer Sheridan Sweetwater NONMETROPOLITAN Uinta Hot Barranquitas-Aibonito-Quebradillas, GUAM Taylor Converse Casper, NONMETROPOLITAN NONMETROPOLITAN Vernon WYOMING Albany Aguadilla-Isabela-San Arecibo, METROPOLITAN WISCONSIN Walworth Waupaca METROPOLITAN Weston Wood

VerDate Sep<11>2014 18:08 Oct 02, 2014 Jkt 235001 PO 00000 Frm 00107 Fmt 4703 Sfmt 4725 E:\FR\FM\03OCN1.SGM 03OCN1 mstockstill on DSK4VPTVN1PROD with NOTICES EN03OC14.061 59846 Federal Register / Vol. 79, No. 192 / Friday, October 3, 2014 / Notices Humacao, BR BR 615 615 615 615 615 4 4 1362 Carolina, Baja, Naguabo, BR BR Toa Guaynabo, 527 527 527 527 527 1303 3 3 09/22/2014 Yabucoa BR BR German Alta, 405 405 405 405 405 Can6vanas, Morovis, 54 FMRs 2 2 1052 Florida, San Toa Yauco BR BR Baja, 327 327 327 817 327 327 area 1 1 PAGE bedroom. STATE Manati, Bayam6n, Juan, Dorado, Vega BR BR Grande, 319 319 684 small 319 319 319 0 0 extra San Penuelas, Loiza, within Alta, Villalba each Sabana using Patillas Corozal, Luquillo AREA Vega TX Grande, for Barceloneta, Mayaguez FMR Ponce, Piedras, Rio Lajas, FMR Alto, of Guayanilla, Las Guayama, Comerio, Fajardo, BR Dallas, Diaz, Buenas, 4 Rojo, COUNTIES COUNTIES the ...... •...... Counties Ceiba, Catano, Hormigueros, Juana Juncos, Cabo Trujillo Guanica, Naranjito, Aguas Arroyo, serving to .•••...... •...••.... BR ...... 975 884 850 773 798 718 730 ...... •.....•...... •... Isabel 15% 4 PHAs ...... John the name. BR 691 630 599 560 810 792 734 Coamo 3 Santa St. Jayuya NONMETROPOLITAN NONMETROPOLITAN Vieques Maricao adding and Area BR by 601 545 558 506 475 425 419 2 FMR HOUSING BR BR 615 615 615 615 615 Program BR the 396 354 349 502 455 412 422 4 4 1086 1362 1 calculated BR BR 949 527 527 527 527 527 BR 3 331 335 330 432 400 464 1303 3 375 0 EXISTING before are . . . . * BR BR FOR 405 405 405 405 405 760 Addendum. 2 2 1052 an BRs B Demonstration 4 by BR BR 327 327 627 817 327 RENTS 1 1 Area than Schedule BR BR 319 327 319 319 327 602 684 319 319 0 0 Small MARKET indicated on larger the FAIR are ...... •.....•...... found in ...... sizes MSA FMRs Final PR FMRs HMFA unit PR the 2015 for AREAS ...•.....•.•....•...... •....•...•• COUNTIES COUNTIES Rojo, ...... FY use ...... •...... FMR percentile participating MSA FMRs continued MSA MSA B - ...... • ...... •..•...... PR MSA MSA ••..••...... •....• PR PR will ...... PHAs 50th The .••...•...... ••...•...... ISLANDS PR PR RICO ...... Croix Juan-Guaynabo, Thomas German-Cabo Marias SCHEDULE PUERTO Fajardo, Ponce, san San Salinas St. St. Utuado Yauco, Las Guayama, Culebra Notel: Note2: Note3: NONMETROPOLITAN NONMETROPOLITAN VIRGIN Adjuntas METROPOLITAN Mayaguez,

VerDate Sep<11>2014 18:08 Oct 02, 2014 Jkt 235001 PO 00000 Frm 00108 Fmt 4703 Sfmt 4725 E:\FR\FM\03OCN1.SGM 03OCN1 mstockstill on DSK4VPTVN1PROD with NOTICES EN03OC14.062 Federal Register / Vol. 79, No. 192 / Friday, October 3, 2014 / Notices 59847 AREA BR BR 2350 2750 2150 2240 2050 2020 2290 2290 1710 1650 1290 1840 1650 1610 1590 1530 1520 1520 1350 1340 1310 1530 1920 1960 1550 1460 1900 2210 2070 1920 1530 1870 1620 1530 1530 1380 1410 4 4 FMR BR BR 2100 2450 3 3 1610 1710 1470 1420 1110 1920 1640 1420 1380 1920 1360 1760 1730 1310 1300 1310 1390 1900 1300 1310 1310 1160 1150 1120 1310 1190 1640 1680 1960 1330 1250 1210 1960 1630 1770 METRO BR BR HUD 900 930 980 950 870 880 910 1260 1250 1150 1110 1080 1070 1030 1540 1280 1390 2 2 1530 1400 1200 1790 1110 1510 1380 1360 1030 1020 1030 1090 1490 1020 1030 1030 1290 1320 1540 1040 TX BR BR 870 860 960 940 920 970 940 730 920 910 900 760 740 780 770 870 860 880 870 870 870 830 800 1170 1060 1070 1150 1 1370 1 1090 1300 1080 1110 1300 1170 1260 1270 1160 BR BR DALLAS, 780 750 790 760 760 770 760 760 760 760 760 730 710 960 940 980 650 670 650 690 680 880 820 810 850 820 800 960 950 1010 1030 1110 1120 1020 0 0 1120 1140 1140 THE ...... AND PARTICIPANTS County ...... Codes Codes DEMONSTRATION ZIP ZIP 60154 60162 60016 60026 60065 60068 60074 60090 60160 60164 60168 60173 60194 60005 60141. 60171. 90805 90807 90810 90815 90803 60201. 60007 60010 60022 60043 60056 60077 60093 60104 60120 60131 60192 60203 60302 60304 60402 Angeles FOR County Los RENTS in BR BR Cook 2030 2530 2150 2290 2290 2050 1580 1530 1290 1530 1620 1530 1350 1720 1650 1860 1720 1490 1590 1840 1530 1530 1830 1810 1930 1530 1740 1810 1440 1660 1430 1890 1950 1710 1890 1520 1780 1930 4 4 in Codes BR BR MARKET 2260 3 3 1350 1310 1110 1310 1390 1310 1160 1480 1420 1660 1540 1920 1960 1270 1360 1580 1310 1310 1630 1560 1660 1310 1620 1670 1960 1530 1660 1760 1810 1490 1560 1240 1430 1220 1470 1620 1300 ZIP Codes FAIR BR BR ZIP 870 970 910 960 2 2 1060 1030 1170 1030 1090 1030 1160 1120 1110 1150 1210 1650 1120 1400 1540 1000 1070 1240 1030 1030 1190 1320 1220 1220 1300 1020 1030 1270 1310 1270 1540 1200 1300 1380 -- AREA BR BR Beach 730 770 990 920 980 940 940 970 930 900 910 820 890 870 870 870 810 860 840 870 870 860 870 1270 1070 1300 1050 1010 1030 1030 1100 1070 1100 1070 1300 1010 1 1 1100 1160 Cook SMALL Long BR BR of 720 790 760 760 760 710 760 700 650 790 920 740 680 750 910 760 760 910 970 760 940 970 940 760 870 880 810 860 830 830 820 850 890 970 1030 1140 1140 0 0 of 1020 2015 ...... FY County City ...... ······· the the FINAL ...... - of of ...... Addendum Authority Authority B ...... •...... Housing Housing Codes Codes SCHEDULE ZIP ZIP The The 90804 90806 90808 90813 90822 90802 60011. 60133 60161. 60301. 60006 60008 60018 60025 60076 60089 60130 60153 60155 60163 60165 60169 60172 60176 60193 60195 60202 60303 60305 60107 60070 60004 60062 60103...... 60029...... 60053...... 60067...... 60091......

VerDate Sep<11>2014 18:08 Oct 02, 2014 Jkt 235001 PO 00000 Frm 00109 Fmt 4703 Sfmt 4725 E:\FR\FM\03OCN1.SGM 03OCN1 mstockstill on DSK4VPTVN1PROD with NOTICES EN03OC14.063 59848 Federal Register / Vol. 79, No. 192 / Friday, October 3, 2014 / Notices AREA BR 2290 2290 2020 2020 1960 1430 1530 1490 1410 1470 1380 1500 1580 1500 1680 1370 1320 1550 1320 1780 1830 1620 1460 1530 1280 1590 1470 1410 1800 1580 1370 2290 2290 1650 1440 1370 1370 1430 1590 1430 1620 4 FMR BR 3 1680 1220 1310 1420 1270 1240 1170 1210 1260 1170 1190 1290 1350 1960 1290 1440 1170 1130 1330 1130 1530 1220 1570 1390 1250 1310 1960 1960 1960 1100 1730 1360 1730 1260 1360 1210 1540 1350 1170 1220 1390 METRO BR HUD 970 920 950 990 960 980 990 950 920 960 890 890 860 960 920 930 920 1320 2 1110 1030 1000 1010 1060 1540 1010 1130 1040 1200 1230 1090 1030 1540 1540 1540 1360 1070 1360 1070 1210 1060 1090 TX BR 730 780 870 840 800 850 940 780 780 780 950 780 750 750 920 900 900 920 810 820 840 890 850 880 810 830 870 840 800 890 810 1110 1010 1040 1300 1020 1300 1300 1150 1150 1300 1 BR DALLAS, 710 760 740 720 710 740 750 790 750 770 710 730 760 790 740 790 710 790 710 980 910 900 680 680 690 680 660 660 640 680 820 840 890 810 810 1140 1010 1010 1140 1140 0 1140 THE ...... AND PARTICIPANTS ...... •...... •...... •...... •...... •...... •...... Codes continued DEMONSTRATION ZIP 60439 60626 60425 60428 60459 60462 60475 60487 60526 60558 60614 60629 60412 60430 60445 60521 60606 60608 60610 60620 60631. 60409 60419 60453 60477 60616 60618 60455 60457 60464 60466 60469 60472 60480 60501. 60534 60602 60604 60612 60622 60624 FOR County RENTS BR Cook 950 2290 2290 2290 2270 2290 2290 2290 2290 2130 2290 1460 1410 1310 1430 1340 1470 1350 1410 1310 1500 1530 1620 1620 1490 1690 1400 1520 1560 1520 1310 1550 1430 1490 1530 1520 1530 1780 1340 1950 1900 4 in BR MARKET 820 3 1250 1210 1120 1960 1220 1150 1260 1160 1210 1120 1960 1950 1960 1820 1290 1310 1390 1390 1270 1450 1200 1300 1340 1300 1670 1630 1960 1960 1960 1120 1330 1220 1270 1310 1300 1310 1960 1960 1530 1150 Codes FAIR BR 880 880 880 ZIP 980 950 960 960 940 900 990 900 910 950 640 2 1540 1540 1530 1540 1540 1430 1040 1000 1030 1010 1030 1020 1090 1030 1090 1540 1020 1050 1020 1310 1280 1540 1540 1000 1140 1540 1200 -- AREA BR 540 740 740 760 760 770 740 790 920 920 960 830 800 880 810 840 870 850 870 860 810 870 840 840 800 860 890 860 1300 1300 1290 1300 1300 1210 1100 1080 1300 1300 1300 1300 1010 1 Cook SMALL BR of 730 710 710 770 970 710 950 740 760 750 760 760 710 760 740 700 740 760 780 760 650 650 670 670 680 650 850 810 810 890 480 1140 1140 1140 1140 1140 1060 0 1140 1140 1140 1140 2015 ...... FY County ...... • ...... the . . FINAL • .. - of ...... • ...... Addendum Authority B ...... •...... •...... •...... Housing Codes SCHEDULE ZIP The 60411. 60422. 60438. 60443. 60452 60454 60463 60467. 60471. 60473. 60476 60601. 60603. 60605. 60607 60611. 60615 60621. 60630 60406 60415 60456 60458 60461 60478 60482 60499 60513 60525 60527 60546 60617 60619 60623 60625 60628 60613...... 60609...... 60426...... 60429...... 60465......

VerDate Sep<11>2014 18:08 Oct 02, 2014 Jkt 235001 PO 00000 Frm 00110 Fmt 4703 Sfmt 4725 E:\FR\FM\03OCN1.SGM 03OCN1 mstockstill on DSK4VPTVN1PROD with NOTICES EN03OC14.064 Federal Register / Vol. 79, No. 192 / Friday, October 3, 2014 / Notices 59849 AREA BR BR 2570 2970 2360 2680 2870 2640 2420 2360 2270 2280 2220 2310 2450 2290 3250 3330 3330 3330 1380 1500 1370 1770 1340 1620 1620 1550 1500 1310 1400 2360 2740 2870 1410 1490 1530 1430 1520 4 4 FMR BR BR 2190 2520 2760 2000 2000 2280 2430 2240 2330 2430 2060 2000 2820 2080 2820 2820 3 3 1220 1190 1290 1210 1170 1520 1270 1150 1390 1390 1330 1950 1310 1290 1120 1300 1940 1890 1960 1200 1960 METRO BR BR 960 930 940 880 HUD 950 920 900 1870 1870 1600 1540 2120 2170 2 2 2170 2170 1010 1190 1000 1090 1090 1040 1530 1030 1010 1020 1680 1940 1540 1490 1540 1750 1720 1790 1450 1580 1540 1510 TX BR BR 780 870 780 760 920 740 790 920 810 850 850 800 880 860 840 1640 1790 1480 1580 1450 1580 1220 1300 1270 1000 1830 1330 1 1 1260 1510 1350 1830 1300 1300 1300 1290 1830 1420 BR BR DALLAS, 760 710 750 750 710 700 770 760 740 690 680 670 650 880 810 810 1570 1710 1410 1510 1390 1510 1170 1240 1220 1750 1280 1750 1240 1240 1140 1140 1750 1360 0 0 1200 1450 1290 THE ...... AND PARTICIPANTS ...... Codes Codes continued DEMONSTRATION 60638 60642 60644 60646 60652 60654 60659 60707 60804 60827 10504 10506 10510 10514 10518 10520 10523 10527 10530 10533 10536 10538 10543 10547 10549 10551 10553 10562 10502 ZIP ZIP County 60633 60661. 60636 60640 60649 60656 60693 60714 FOR County RENTS BR BR Cook 2300 2160 2740 2640 2990 2610 2650 2070 2360 2360 2290 2360 2360 2360 2360 2360 2360 3250 3330 1610 1580 1550 1490 1430 1470 1500 1460 1350 1560 1220 1440 1870 1350 1530 1400 1810 1340 4 4 in Westchester in BR BR MARKET 2330 2760 2240 2820 2540 2210 2000 2000 2000 3 3 1380 1350 1330 1270 1220 1260 1290 1250 1240 1610 1160 1760 1150 1960 2250 2000 2000 2000 2000 2000 1160 1340 1050 1310 1200 1950 1530 1830 Codes FAIR BR BR Codes 820 ZIP 960 990 980 970 910 940 910 900 2120 2170 2 2 1080 1180 1050 1060 1040 1000 1010 1030 1260 1790 1720 1950 1700 1730 1350 1410 1540 1540 1540 1540 1540 1540 1540 1500 1540 1540 -- ZIP AREA BR BR -- 770 790 770 760 910 690 890 890 810 840 880 830 840 850 820 870 1000 1060 1510 1790 1450 1830 1640 1430 1460 1140 1190 1300 1300 1300 1300 1300 1 1 1300 1300 1270 1300 1300 Cook SMALL BR BR of 950 780 790 710 740 770 730 740 750 720 940 760 700 610 680 680 670 800 1450 1710 1390 1750 1580 1370 1400 1090 1140 1240 1240 1140 1240 1240 0 0 1240 1240 1210 1240 1240 Agency 2015 ...... FY County ...... Housing ...... the FINAL ... - of Public ··········· ············ Addendum Authority 8 Mamaroneck ...... of Housing Codes Codes SCHEDULE ZIP 10517 10560 10511 10550 10552 10501. 10503. 10505. 10519. 10526. 10532. 10540. 10535 10546 10507 10528 10522 ZIP The Town 60641. 60651. 60681. 60712. 60634 60637 60639 60643 60645 60647 60653 60655 60657 60660 60706 60632 60805 10537...... 10548...... 60803......

VerDate Sep<11>2014 18:08 Oct 02, 2014 Jkt 235001 PO 00000 Frm 00111 Fmt 4703 Sfmt 4725 E:\FR\FM\03OCN1.SGM 03OCN1 mstockstill on DSK4VPTVN1PROD with NOTICES EN03OC14.065 59850 Federal Register / Vol. 79, No. 192 / Friday, October 3, 2014 / Notices AREA BR BR 9S0 9ee 9ee 92e 20S0 21Se 2e4e 244e 241e 2300 2S7e 264e 268e 3140 313e 331e 162e 1120 112e 1e90 116e 109e 109e 18Se 297e 274e 273e 236e 236e 27ee 146e 112e 101e 1e9e 1e4e 4 4 FMR BR BR 99e 99e 99e 97e 97e 92e 97e 97e 9ee s4e see see S2e 219e 2S2e 224e 20ee 267e 26Se 2eee 233e 2e7e 2e4e 232e 281e 228e 229e 3 3 138e 1S7e 177e 182e 173e 19Se 129e 1e3e METRO BR BR s9e HUD 73e 73e 71e 71e 76e 71e 71e 73e 9Se 66e 6Se 620 6ee s9e 2ese 2 17S0 1See 194e 1760 2 216e 2e4e 172e 1S4e 121e 16Se 1S4e 179e 133e 1S9e 1S7e 1360 17Se 1e6e 14ee TX BR BR sse see S70 S9e S9e S90 S70 S7e S7e S3e 76e 610 890 47e 47e 4S0 182e 173e 127e 132e 1S1e 164e 14Se 172e 142e 1See 11S0 118e 112e 14Se 134e 14S0 1 13ee 1e2e 13ee 1 DALLAS, BR BR 39e 39e S1e 63e S6e 49e 49e 49e 47e 470 4Se 41e 400 47e 47e 44e 98e 14Se 16Se 1S7e 1420 12Se 1240 174e 139e 124e 166e 144e 110e 1e7e 141e 121e 127e e e 136e 113e THE ...... AND PARTICIPANTS continued ...... •...... Codes Codes DEMONSTRATION 373e8 ZIP ZIP 3731S 37341 373Se 373S3 37373 37379 374e2 374e4 374e6 374eS 37410 37412 3741S 37419 1eS73 1eS77 10SSe 10SSS 1eS9e 1eS94 1eS96 1eS9S 106e2 106e4 106e6 1eS67 1e701. 1e7e3 1e7e7 1e7e9 1e7es 1ese3 10Sel. 1eses County FOR RENTS BR BR 9ee 21Se 239e 236e 236e 236e 241e 236e 23ee 236e 23Se 273e 291e 2S4e 264e 262e 233e 2SSe 333e 317e 333e 104e 112e 101e 126e 112e 113e 104e 112e 121e 12ee 12ee 12ee 12ee 1e9e 11se 4 4 Westchester County in BR BR MARKET 92e 99e 99e 97e 92e 99e 9ee see 232e 247e 2eee 2eee 216e 224e 2eee 222e 2eee 20ee 2S2e 245e 3 3 106e 19Se 19Se 1e6e 1e6e 1e6e 1e7e 2e3e 2e4e 2e20 2690 2S2e 1S2e 112e 1e1e 1e2e FAIR BR BR Codes 73e 7S0 7se 71e 78e 79e s9e 82e 7Se 7Se 73e 74e 73e 68e 66e 6S0 2 2 207e 217e 217e 171e 1S6e 1S4e 1S4e 166e 172e 1S4e 1SS0 1S70 1S4e 1S0e 17Se 1S4e 1S2e 1400 1SSe 19ee Hamilton ZIP AREA in BR BR -- sse sse S9e S9e S3e S9e S7e S9e 63e 66e 63e 63e 6ee 63e 64e 47e 127e 132e 14Se 131e 144e 132e 17Se 12Se 1See 11S0 1S3e 1S9e 1S3e 1 16ee 13ee 13ee 14ee 13ee 13ee 13ee 1 SMALL Codes BR BR 39e sse S2e S2e S20 S2e S3e see 4Se 49e 44e 49e 490 47e 49e 4Se 1S3e 17Se 12Se 1S2e 124e 124e 134e 139e 124e 167e 124e 123e 121e 144e 113e 124e 13Se 1270 e e 126e 17Se Agency ZIP 2e1s ...... -- FY ...... Housing ...... FINAL .. ... - Authority Public ...... Addendum Housing B Mamaroneck ...... of Codes Codes SCHEDULE 373e2 37409 37311. 37336 37343 37363 37377 374e1 374e3 37411 37414 37416 37421. 373Sl. 374eS...... 374e7...... 10S7e 10S76 1eS7S 10SS3 10SS9 10S91 10S9S 1eS97 1e601 106e3 106e7 107e2 10Se2 1eSe4 10S66 1e7e4 1e7e6 107es 1e71e 1e6es ZIP ZIP Town Chattanooga

VerDate Sep<11>2014 18:08 Oct 02, 2014 Jkt 235001 PO 00000 Frm 00112 Fmt 4703 Sfmt 4725 E:\FR\FM\03OCN1.SGM 03OCN1 mstockstill on DSK4VPTVN1PROD with NOTICES EN03OC14.066 Federal Register / Vol. 79, No. 192 / Friday, October 3, 2014 / Notices 59851 AREA BR BR BR 2220 lSSe 1690 1820 1130 1770 1920 1480 1S60 1610 1760 1S90 1680 14S0 14S0 1470 14Se 1880 1390 1270 1710 2190 1330 1720 1690 1430 1340 1790 1S30 1S00 14S0 14S0 18S0 4 4 4 FMR BR BR BR 3 3 3 1400 1090 1290 1270 1470 1S90 1810 1230 1290 1330 14S0 1430 1840 1400 1190 1320 1110 1390 1240 1200 1200 1200 1210 1280 1200 1S60 11S0 1200 10S0 1410 1480 1S30 1Sl0 METRO BR BR BR 980 920 900 910 960 790 97e 93e 90e 9ee 83e 890 830 86e HUD gee 950 990 900 le40 2 2 2 1110 10S0 10S0 11S0 1100 1190 1360 1090 1070 1380 1130 1170 106e 1eee TX BR BR BR 720 710 780 700 780 940 710 710 930 730 770 790 760 710 910 7S0 740 710 660 660 680 620 870 860 890 840 880 sse 830 820 830 1080 1090 1 1 1 DALLAS, BR BR BR s9e sse S90 S90 S90 S70 S20 720 730 780 900 720 710 7S0 770 700 730 910 760 6S0 600 610 640 660 630 610 630 690 690 610 690 590 S90 0 0 0 THE ...... AND PARTICIPANTS ...... - ...... •...... •...... County County Codes Codes Codes DEMONSTRATION ZIP 75023 7S03S 7S069 7S07S 75093 7S287 7S017 7S030 7S041. 7S043 7S04S 7S048 7S0S3 7S061. 7S009 7Sl66 7Sl89 75006 7S081. ZIP ZIP 7804S 7S02S 7S071 7S080 7S098 7S407 7S424 7S4S2 7S491 7S01S 7S039 7S063 78041. 7S0Sl. FOR Dallas Collin County in in RENTS BR BR BR Webb 920 2220 2130 13Se 1390 1400 1680 1760 1720 1400 1030 1840 1880 1590 1420 1S80 1640 1710 14S0 1800 13Se 1370 1400 1900 1920 1870 1850 1850 1590 1850 14S0 1880 1480 1840 1010 Codes Codes 4 4 4 in BR ZIP BR ZIP BR MARKET 970 890 3 3 3 11S0 1160 1390 1430 1760 1160 1130 1160 1S90 1SS0 1530 1530 1320 1530 1200 1S60 1230 1S20 1120 100e 156e 132e 14le 14S0 1S70 152e 1840 1170 1310 136e 1490 1120 12ee Codes FAIR BR BR BR ZIP B4e 740 680 870 sse 870 870 B4e 760 990 990 980 900 920 900 ss0 860 2 2 2 1040 1020 1060 1120 1090 1070 1320 1380 1180 1190 1140 1170 1160 1150 1150 1150 1170 1140 HMFA HMFA -- AREA TX TX BR BR BR s4e S9e 930 940 900 930 780 920 910 910 780 910 700 770 710 930 730 900 710 660 680 660 690 600 690 670 690 sse 820 810 840 890 860 1040 1090 1 1 1 SMALL Laredo BR BR BR see sge sse sse sse S7e S6e S9e S7e S6e S7e Dallas, Dallas, 78e 78e 7Se 77e 76e 76e 76e 76e 77e 7Se 70e 74e 72e 7le 6Se 69e 6Se 6Se 67e 61e 9le 57e 87e sse of 0 0 0 201S ...... the the FY City the FINAL within within - of Addendum Authority Authorities Authorities 8 ...... Housing Housing Housing Codes Codes Codes SCHEDULE 7S074 7S2S2 7S060 7S080 ZIP ZIP ZIP The 78043 78046 7S013 7S024 7S034 7S048 7S070 7S078 7S082 7S094 7S173 7S370 7S409 7S442 7S4S4 7S49S 75007 75016 7S019 7S038 7S040 7S042 7S044 7S046 7S0S2 7S062 78040 7S002 75001. 7Sl64 7Sese All All

VerDate Sep<11>2014 18:08 Oct 02, 2014 Jkt 235001 PO 00000 Frm 00113 Fmt 4703 Sfmt 4725 E:\FR\FM\03OCN1.SGM 03OCN1 mstockstill on DSK4VPTVN1PROD with NOTICES EN03OC14.067 59852 Federal Register / Vol. 79, No. 192 / Friday, October 3, 2014 / Notices AREA BR 2220 214e 1S3e 1S1e 1S30 14S0 14Se 193e 14Se 124e 132e 127e 14Se 14Se 192e 1S30 1S3e 129e 1220 14Se 1S1e 1S0e 1SS0 1630 142e 14Se 14Se 113e 111e 14S0 119e 137e 19e0 129e 126e 177e 142e 129e 14Se 14Se 14Se 4 FMR BR 93e 92e 99e 3 127e 12S0 1270 120e 1840 1770 120e 1S90 1270 113e 1S7e 127e 107e 1e10 12e0 12Se 147e 124e 117e 12S0 107e 13Se 117e 12e0 1200 12e0 12ee 16ee 12ee 1e7e 1e4e 1e3e 1e9e 12ee 12ee 12ee 12ee 1ese METRO BR 7Se 9Se 940 9Se 900 900 740 70e 77e 79e 760 900 9e0 94e 93e 96e 9ee 9ee 90e 9ee 69e sse see see see sse 88e S2e HUD 90e 9Se 90e 9Se 900 9ee 2 1330 1190 1180 13S0 110e 12ee 1e1e TX BR 7S0 71e 71e 7ee 74e 60e se0 sse sse S90 710 7S0 7S0 71e 74e 7Se 670 710 62e 71e 71e 71e 71e 710 7ee 71e 76e 71e 740 630 630 6S0 620 63e 61e 93e 940 9Se 87e 109e 1 1ese DALLAS, BR s3e see S9e S6e S1e S4e S8e S2e S3e SS0 S90 S9e S9e S9e S9e S9e S9e S1e 910 7S0 73e 78e 79e 63e 61e 63e 630 63e 62e 63e 670 62e 590 59e 53e sse S9e S9e 46e 49e 460 e THE ...... AND PARTICIPANTS continued ...... •...... County Codes DEMONSTRATION 7S1e4 7S11S 7S137 7S146 7S1S9 7S18e 7S187 7S202 7S2e6 7S208 7S210 7S212 7S21S 7S217 7S219 7S222 7S226 7S23e 7S232 7S234 7S236 7S23S 7S241. 7S246 7S2Se 7S2S3 7S3SS 7S367 7S381 ZIP 7Se83 7S123 7Se88 7S1S0 7S182 7S2e4 7S224 7S228 7S243 7S248 7S313 7S378 FOR Dallas in RENTS BR 2e9e 222e 2220 222e 1SSe 164e 1300 134e 1390 1480 1390 1340 187e 1SS0 14S0 197e 14Se 1SSe 148e 19e0 1130 145e 1S6e 121e 14Se 132e 164e 124e 14e0 14S0 132e 14Se 14Se 14Se 14Se 122e 13Se 184e 182e 139e 118e Codes 4 ZIP BR MARKET 93e 970 3 1S3e 136e 111e 11Se 1730 1230 11S0 1110 1SSe 12Se 12e0 163e 120e 12ee 12ee 1e3e 12ee 1e9e 12ee 12ee 123e 1e10 1120 1S4e 184e 1S2e 184e 1S10 11S0 10Se 1S30 1S70 1290 136e 116e 1e0e 1e9e 12ee 12ee -- FAIR BR 77e 7Se 76e 730 S1e 83e S6e 82e S6e S2e S3e S7e S40 S60 90e 92e 97e 96e 90e 9e0 9ee 7ee 9ee 9ee 9ee 900 900 92e 2 1150 1e20 13e0 122e 11Se 118e 116e 13Se 138e 1140 138e 113e 1e2e HMFA AREA TX BR sse S90 SS0 910 710 73e 77e 760 71e 71e 71e 71e 71e 71e 71e 73e 640 96e 71e 91e 93e 9ee 61e 660 92e 6Se 6Se 6ee 68e 69e 68e 6Se 66e 66e 810 S10 89e 1e30 1e9e 1e9e 1e9e 1 SMALL BR S90 S00 S70 S40 S70 S90 S90 S70 S90 S70 S90 S40 SS0 S90 SS0 Dallas, 760 910 760 780 670 670 760 750 7S0 610 640 630 610 59e S30 S60 S10 SS0 S90 S00 S90 490 460 4S0 910 910 0 2e1s ...... the FY ...... FINAL within .. ... - ...... Addendum Authorities 8 ...... Housing Codes SCHEDULE 7S2e7 7S154 7S231. 7S235 7S3S6 7S379 7S106 7SeS9...... ZIP 7S0S2 7S116 7S134 7S141. 7S149 7S209 7S211. 7S214 7S216 7S218 7S220 7S223 7S22S 7S227 7S229 7S233 7S237 7S240 7S242 7S244 7S247 7S249 7S2S1 7S2S4 7S3S4 7S374 7S1SS 7S2el. 7S1S1...... 7S2e3...... 7S0SS...... 7S172...... 7S2e5...... All

VerDate Sep<11>2014 18:08 Oct 02, 2014 Jkt 235001 PO 00000 Frm 00114 Fmt 4703 Sfmt 4725 E:\FR\FM\03OCN1.SGM 03OCN1 mstockstill on DSK4VPTVN1PROD with NOTICES EN03OC14.068 Federal Register / Vol. 79, No. 192 / Friday, October 3, 2014 / Notices 59853 AREA BR BR BR BR 1S30 1S30 1900 1530 19S0 1420 1790 1S30 1710 1470 1500 1370 1370 1399 1420 1S30 1S30 1770 2220 1300 1840 1430 1370 1220 1480 1680 4 4 4 4 FMR BR BR BR BR 3 3 3 3 1010 1270 1270 1570 1520 1270 1610 1840 1170 1480 1270 1410 1210 1240 1230 1080 1130 1130 1159 1170 1130 1270 1270 1470 1390 1190 METRO BR BR BR BR 760 950 9S0 9S0 910 930 920 sse 810 850 850 860 889 8S0 890 HUD 9S0 950 9S0 1100 1040 2 2 2 2 1380 1180 1140 1210 1110 1060 TX BR BR BR BR 750 750 700 7S0 750 930 900 750 960 720 750 700 700 740 730 640 670 670 689 670 600 870 880 840 820 1090 1 1 1 1 BR BR BR BR DALLAS, see sse S30 S60 S90 S60 S89 700 750 730 739 780 690 630 600 630 630 630 610 630 630 610 579 560 800 910 0 0 0 9 THE ...... AND PARTICIPANTS continued ...... County County Codes Codes County Codes County Codes DEMONSTRATION ZIP ZIP 75432 7S448 7S067 75077 7S287 76202 76297 76299 76226 76247 762S8 76272 75152 75168 76064 76651 ZIP ZIP 7S469 7S022 75034 7S0S7 76084 76177 76262 75165 7S009 75119 FOR Ellis Delta Dallas Denton in in in in RENTS BR BR BR BR 2010 2220 2090 2220 1450 1370 1580 1870 1480 1190 1370 1640 1880 1660 1SSe 1800 1879 1S80 1370 1850 1480 1560 1790 1720 1180 1439 1370 1370 Codes Codes Codes Codes 4 4 4 4 ZIP BR ZIP BR ZIP BR ZIP BR MARKET 990 970 3 3 3 3 1130 1360 1S60 1840 1370 1280 1490 1730 1SS0 1310 1130 1S30 1230 1290 1480 1430 1840 1199 1130 1130 1550 1200 1130 1670 1310 1230 -- FAIR BR BR BR BR 740 sse sse 899 8S0 850 900 730 960 980 980 920 970 920 sse 2 2 2 2 1020 1170 1380 1030 1110 1070 1380 1120 1300 1160 1150 1160 12S0 HMFA HMFA HMFA HMFA AREA TX TX TX TX BR BR BR BR 590 580 770 730 770 770 730 769 710 799 930 990 929 920 670 670 670 670 670 910 810 810 sse 880 890 1090 1090 1030 1 1 1 1 SMALL BR BR BR BR S60 S90 S60 S60 Dallas, Dallas, Dallas, Dallas, 770 730 710 740 760 760 910 910 760 6S0 610 680 6S0 640 610 670 630 560 590 560 820 860 490 480 0 0 0 0 201S ...... the the the the FY FINAL within within within within - Addendum Authorities Authorities Authorities Authorities 8 ...... •...... Housing Housing Housing Housing Codes Codes Codes Codes SCHEDULE 75441. 7S065 76205 76227 76670...... ZIP ZIP ZIP ZIP 7S4S0 7S010 7S028 7S056 7S068 7S093 760S2 76201. 76208 76210 76249 762S9 7S12S 751S4 7S167 76041. 7606S 76623 7S382 75415 7S007 76266 7S101. All All All All

VerDate Sep<11>2014 18:08 Oct 02, 2014 Jkt 235001 PO 00000 Frm 00115 Fmt 4703 Sfmt 4725 E:\FR\FM\03OCN1.SGM 03OCN1 mstockstill on DSK4VPTVN1PROD with NOTICES EN03OC14.069 59854 Federal Register / Vol. 79, No. 192 / Friday, October 3, 2014 / Notices AREA BR BR BR 222e 222e 143e 127e 169e 127e 169e 103e 103e 103e 11ee 1S3e 14Se 129e 164e 188e 4 4 4 FMR BR BR BR 910 8Se 8Se 8Se 3 3 3 184e 127e 119e 136e 184e 10Se 1S6e 14ee 1e7e 12ee 14ee 1ese METRO BR BR BR HUD 9Se 79e 79e 64e 64e 64e 68e 89e 8ee 9ee 138e 10Se 10Se 2 2 2 1e2e 138e 117e TX BR BR BR S4e S10 S1e S1e 710 7ee 7Se 93e 62e 63e 62e 83e 81e 83e 1 1 1 109e 1e9e DALLAS, BR BR BR S9e S2e S3e 77e 91e 91e 69e 67e 63e 69e S2e S9e 42e 42e 42e 4Se e e e THE AND PARTICIPANTS County County ...... •...... •...... •...... •...... •...... •...... •...... •...... Codes Codes Codes County DEMONSTRATION 7S422 7S496 7S428 7S1S9 7S089 7S16e 7S449 7S4S3 7S143 7S161 ZIP ZIP ZIP 7Se87 7S189 7S126 7S189 7S4e2 7S1S7 FOR Kaufman Rockwall Hunt in in in RENTS BR BR BR 2e6e 214e 124e 122e 113e 184e 19Se 13Se 137e 134e 13Se 143e 122e 127e 13ee 13ee Codes Codes Codes 4 4 4 ZIP BR ZIP BR ZIP BR MARKET 93e 3 3 3 1S2e 171e 161e 112e 113e 111e 112e 101e 10Se 1770 119e 1e3e 1e1e 1e8e 1e8e ------FAIR BR BR BR 76e 7ee 79e 84e 810 8Se 83e 840 81e 89e 77e 76e 2 2 2 114e 128e 133e 121e HMFA HMFA HMFA AREA TX TX TX BR BR BR sse 9ee 7ee 96e 66e 61e 6ee 6ee 64e 67e 66e 66e 62e 64e 1 1 1 1e1e 1ese SMALL BR BR BR see see sse sse S10 S3e S6e S2e S3e Dallas, Dallas, Dallas, 7Se sse 84e 88e S9e 8ee 46e e e e 2e1s the the the FY FINAL within within within - Addendum Authorities Authorities Authorities B ...... •...... •.•••...... ••...... •...... •...... •...... •...... •...... Housing Housing Housing Codes Codes Codes SCHEDULE ZIP 7S423 7S142 ZIP ZIP 7S169 7S147 7S4e1. 7S4e3 7S132 7S442 7S4S2 7S16e 7S13S 7S474 7S114 7S1S8 7Se32 7S088 All All All

VerDate Sep<11>2014 18:08 Oct 02, 2014 Jkt 235001 PO 00000 Frm 00116 Fmt 4703 Sfmt 4725 E:\FR\FM\03OCN1.SGM 03OCN1 mstockstill on DSK4VPTVN1PROD with NOTICES EN03OC14.070 Federal Register / Vol. 79, No. 192 / Friday, October 3, 2014 / Notices 59855

SCHEDULE D—FY 2015 EXCEPTION FAIR MARKET RENTS FOR MANUFACTURED HOME SPACES IN THE SECTION 8 HOUSING CHOICE VOUCHER PROGRAM

State Area name Space rent

California ...... Los Angeles-Long Beach, CA HUD Metro FMR Area ...... $694 Orange County, CA HUD Metro FMR Area ...... 842 * Riverside-San Bernardino-Ontario, CA MSA ...... 549 San Diego-Carlsbad-San Marcos, CA MSA ...... 839 Santa Rosa-Petaluma, CA MSA ...... 773 Vallejo-Fairfield, CA MSA ...... 622 Colorado ...... Boulder, CO MSA ...... 512 Maryland ...... St. Mary’s County ...... 518 Oregon ...... Bend, OR MSA ...... 361 Salem, OR MSA ...... 523 Pennsylvania .... Adams County ...... 579 Washington ...... Olympia, WA MSA ...... 628 Seattle-Bellevue, WA HUD Metro FMR Area ...... 693 West Virginia .... Logan County ...... 469 McDowell County ...... 469 Mercer County ...... 469 Mingo County ...... 469 Wyoming County ...... 469 * 50th percentile FMR areas.

[FR Doc. 2014–23677 Filed 10–2–14; 8:45 am] Development and Research, Department DDAs in this notice are based on final BILLING CODE 4210–67–C of Housing and Urban Development, Fiscal Year (FY) 2014 Fair Market Rents 451 Seventh Street SW., Room 8234, (FMRs), FY2014 income limits, and Washington, DC 20410–6000; telephone 2010 Census population counts, as DEPARTMENT OF HOUSING AND number (202) 402–5878, or send an explained below. URBAN DEVELOPMENT email to [email protected]. For This notice also re-designates QCTs [Docket No. FR–5815–N–01] specific legal questions pertaining to based on new income and poverty data Section 42, contact Branch 5, Office of released in the American Community Statutorily Mandated Designation of the Associate Chief Counsel, Survey (ACS). HUD is establishing a Difficult Development Areas and Passthroughs and Special Industries, new method which incorporates several Qualified Census Tracts for 2015 Internal Revenue Service, 1111 years of ACS estimates to ensure that Constitution Avenue NW., Washington, anomalous estimates, due to sampling AGENCY: Office of the Assistant DC 20224; telephone number (202) 317– anomalies, do not affect the QCT Secretary for Policy Development and 4137, fax number (202) 317–6731. For eligibility of tracts. Research, HUD. questions about the ‘‘HUB Zone’’ 2010 Census and 2006–2010, 2007–2011 ACTION: Notice. program, contact Mariana Pardo, and 2008–2012 American Community Director, HUBZone Program, Office of Survey Data SUMMARY: This document designates Government Contracting and Business ‘‘Difficult Development Areas’’ (DDAs) Development, U.S. Small Business Data from the 2010 Census on total and ‘‘Qualified Census Tracts’’ (QCTs) Administration, 409 Third Street SW., population of metropolitan areas and for purposes of the Low-Income Suite 8800, Washington, DC 20416; nonmetropolitan areas are used in the Housing Tax Credit (LIHTC) under telephone number (202) 205–2985, fax designation of DDAs. The Office of Internal Revenue Code (IRC) Section 42 number (202) 481–6443, or send an Management and Budget (OMB) first (26 U.S.C. 42). The United States email to [email protected]. A text published new metropolitan area Department of Housing and Urban telephone is available for persons with definitions incorporating 2000 Census Development (HUD) makes new DDA hearing or speech impairments at 800– data in OMB Bulletin No. 03–04 on June designations annually and is making 877–8339. (These are not toll-free 6, 2003, and updated them periodically new designation of QCTs at this time to telephone numbers.) Additional copies through OMB Bulletin No. 10–02 on incorporate more recent income and of this notice are available through HUD December 1, 2009. FY2014 FMRs and poverty measures. As previously User at 800–245–2691 for a small fee to FY2014 income limits used to designate announced, the 2015 metropolitan DDA cover duplication and mailing costs. DDAs are based on these metropolitan designations will be the last designated Copies Available Electronically: This statistical area (MSA) definitions, with for entire metropolitan areas. Beginning notice and additional information about modifications to account for substantial with the 2016 DDA designations, DDAs and QCTs are available differences in rental housing markets metropolitan DDAs will use Small Area electronically on the Internet at http:// (and, in some cases, median income Fair Market Rents (FMRs), rather than www.huduser.org/datasets/qct.html. levels) within MSAs. metropolitan-area FMRs, for designating SUPPLEMENTARY INFORMATION: Data from the 2010 Census on total metropolitan DDAs. population of census tracts, FOR FURTHER INFORMATION CONTACT: For This Document metropolitan areas, and the questions on how areas are designated This notice designates DDAs for each nonmetropolitan parts of states are used and on geographic definitions, contact of the 50 states, the District of Columbia, in the designation of QCTs. The Michael K. Hollar, Senior Economist, Puerto Rico, American Samoa, Guam, FY2012, FY2013 and FY2014 income Economic Development and Public the Northern Mariana Islands, and the limits used to designate QCTs are based Finance Division, Office of Policy U.S. Virgin Islands. The designations of on these metropolitan statistical area

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(MSA) definitions with modifications to unallocated credits derived from the the credits against the alternative account for substantial differences in credit ceiling for one year; however, to minimum tax. Corporations, other than rental housing markets (and in some the extent such unallocated credits are S or personal service corporations, can cases median income levels) within not used by then, the credits go into a use the credits against ordinary income MSAs. This QCT designation uses the national pool to be redistributed to tax, and, for buildings placed in service OMB metropolitan area definitions states as additional credit. State and after December 31, 2007, against the published in OMB Bulletin No. 10–02 local housing agencies allocate the alternative minimum tax. These on December 1, 2009 without state’s credit ceiling among low-income corporations also can deduct losses from modification for purposes of evaluating housing buildings whose owners have the project. how many census tracts can be applied for the credit. Besides IRC designated under the population cap, Section 42 credits derived from the The qualified basis represents the but uses the HUD-modified definitions credit ceiling, states may also provide product of the building’s ‘‘applicable and their associated area median IRC Section 42 credits to owners of fraction’’ and its ‘‘eligible basis.’’ The incomes for determining QCT eligibility. buildings based on the percentage of applicable fraction is based on the Because the 2010 Decennial Census certain building costs financed by tax- number of low-income units in the did not include questions on respondent exempt bond proceeds. Credits provided building as a percentage of the total household income, HUD uses ACS data under the tax-exempt bond ‘‘volume number of units, or based on the floor to designate QCTs. The ACS tabulates cap’’ do not reduce the credits available space of low-income units as a data collected over 5 years to provide from the credit ceiling. percentage of the total floor space of estimates of socioeconomic variables for The credits allocated to a building are residential units in the building. The small areas containing fewer than based on the cost of units placed in eligible basis is the adjusted basis 20,000 persons, like Census Tracts. service as low-income units under attributable to acquisition, Although the previous QCT particular minimum occupancy and rehabilitation, or new construction costs designations relied on one set of maximum rent criteria. In general, a (depending on the type of LIHTC estimates, based on 2006–2010 ACS building must meet one of two involved). These costs include amounts tabulations, HUD noticed anomalies in thresholds to be eligible for the LIHTC; some estimates when compared to either: (1) 20 percent of the units must chargeable to a capital account that are 2007–2011 and 2008–2012 estimates. be rent-restricted and occupied by incurred prior to the end of the first For this reason, HUD is implementing a tenants with incomes no higher than 50 taxable year in which the qualified low- new QCT designation method which percent of the Area Median Gross income building is placed in service or, incorporates several years of ACS data Income (AMGI), or (2) 40 percent of the at the election of the taxpayer, the end to ensure that anomalous estimates do units must be rent-restricted and of the succeeding taxable year. In the not affect QCT eligibility. occupied by tenants with incomes no case of buildings located in designated higher than 60 percent of AMGI. A unit DDAs or designated QCTs, eligible basis Background is ‘‘rent-restricted’’ if the gross rent, can be increased up to 130 percent from The U.S. Department of the Treasury including an allowance for tenant-paid what it would otherwise be. This means (Treasury) and its Internal Revenue utilities, does not exceed 30 percent of that the available credits also can be Service (IRS) are authorized to interpret the imputed income limitation (i.e., 50 increased by up to 30 percent. For and enforce the provisions of the LIHTC percent or 60 percent of AMGI) example, if a 70 percent credit is found at IRC Section 42. The Secretary applicable to that unit. The rent and available, it effectively could be of HUD is required to designate DDAs occupancy thresholds remain in effect increased to as much as 91 percent. and QCTs by IRC Section 42(d)(5)(B). In for at least 15 years, and building order to assist in understanding HUD’s owners are required to enter into IRC Section 42 defines a DDA as an mandated designation of DDAs and agreements to maintain the low-income area designated by the Secretary of HUD QCTs for use in administering IRC character of the building for at least an that has high construction, land, and Section 42, a summary of the section is additional 15 years. utility costs relative to the AMGI. All provided. The following summary does The LIHTC reduces income tax designated DDAs in metropolitan areas not purport to bind Treasury or the IRS liability dollar-for-dollar. It is taken (taken together) may not contain more in any way, nor does it purport to bind annually for a term of 10 years and is than 20 percent of the aggregate HUD, since HUD has authority to intended to yield a present value of population of all metropolitan areas, interpret or administer the IRC only in either: (1) 70 percent of the ‘‘qualified and all designated areas not in instances where it receives explicit basis’’ for new construction or metropolitan areas may not contain statutory delegation. substantial rehabilitation expenditures more than 20 percent of the aggregate that are not federally subsidized (as population of all nonmetropolitan areas. Summary of the Low-Income Housing defined in IRC Section 42(i)(2)), or (2) IRC Section 42(d)(5)(B)(v) allows Tax Credit 30 percent of the qualified basis for the states to award an increase in basis up The LIHTC is a tax incentive intended cost of acquiring certain existing to increase the availability of low- buildings or projects that are federally to 30 percent to buildings located income housing. IRC Section 42 subsidized. The actual credit rates are outside of federally designated DDAs provides an income tax credit to owners adjusted monthly for projects placed in and QCTs if the increase is necessary to of newly constructed or substantially service after 1987 under procedures make the building financially feasible. rehabilitated low-income rental housing specified in IRC Section 42. Individuals This state discretion applies only to projects. The dollar amount of the can use the credits up to a deduction buildings allocated credits under the LIHTC available for allocation by each equivalent of $25,000 (the actual state housing credit ceiling and is not state (credit ceiling) is limited by maximum amount of credit that an permitted for buildings receiving credits population. Each state is allowed a individual can claim depends on the in connection with tax-exempt bonds. credit ceiling based on a statutory individual’s marginal tax rate). For Rules for such designations shall be set formula indicated at IRC Section buildings placed in service after forth in the LIHTC-allocating agencies’ 42(h)(3). States may carry forward December 31, 2007, individuals can use qualified allocation plans (QAPs).

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Explanation of HUD Designation 1. For each metropolitan HMFA and only a minor overrun of the cap. Thus, Method each nonmetropolitan county, HUD for both the designated metropolitan calculated a ratio. HUD used the final and nonmetropolitan DDAs, there may A. 2015 Difficult Development Areas FY2014 two-bedroom FMR and the be minimal overruns of the cap. HUD In developing the list of DDAs, HUD FY2014 four-person VLIL for this believes the designation of additional compared housing costs with incomes. calculation. areas in the above examples of minimal HUD used 2010 Census population for a. The numerator of the ratio, overruns is consistent with the intent of metropolitan and nonmetropolitan representing the development cost of the IRC. As long as the apparent excess areas, and the MSA definitions, as housing, was the area’s final FY2014 is small due to measurement errors, published in OMB Bulletin No. 10–02 FMR. In general, the FMR is based on some latitude is justifiable, because it is on December 1, 2009, with the 40th-percentile gross rent paid by impossible to determine whether the 20 modifications, as described below. In recent movers to live in a two-bedroom percent cap has been exceeded. Despite keeping with past practice of basing the apartment. In metropolitan areas the care and effort involved in a coming year’s DDA designations on data granted a FMR based on the 50th- Decennial Census, the Census Bureau from the preceding year, the basis for percentile rent for purposes of and all users of the data recognize that these comparisons is the FY2014 HUD improving the administration of HUD’s the population counts for a given area income limits for very low-income HCV program (see 78 FR 61668), HUD and for the entire country are not households (very low-income limits, or used the 40th-percentile rent to ensure precise. Therefore, the extent of the VLILs), which are based on 50 percent nationwide consistency of comparisons. measurement error is unknown. There of AMGI, and metropolitan FMRs based b. The denominator of the ratio, can be errors in both the numerator and on the Final FY2014 FMRs used for the representing the maximum income of denominator of the ratio of populations Housing Choice Voucher (HCV) eligible tenants, was the monthly LIHTC used in applying a 20 percent cap. In program. income-based rent limit, which was circumstances where a strict application In formulating the FY2014 FMRs and calculated as 1/12 of 30 percent of 120 of a 20 percent cap results in an VLILs, HUD modified the current OMB percent of the area’s VLIL (where the anomalous situation, recognition of the definitions of MSAs to account for VLIL was rounded to the nearest $50 unavoidable imprecision in the census substantial differences in rents among and not allowed to exceed 80 percent of data justifies accepting small variances areas within each current MSA that the AMGI in areas where the VLIL is above the 20 percent limit. were in different FMR areas under adjusted upward from its 50 percent-of- definitions used in prior years. HUD AMGI base). B. Qualified Census Tracts formed these ‘‘HUD Metro FMR Areas’’ 2. The ratios of the FMR to the LIHTC In developing this list of QCTs, HUD (HMFAs) in cases where one or more of income-based rent limit were arrayed in used 2010 Census 100-percent count the parts of newly defined MSAs that descending order, separately, for data on total population, total previously were in separate FMR areas HMFAs and for nonmetropolitan households, and population in had 2000 Census based 40th-percentile counties. households; the median household recent-mover rents that differed, by 5 3. The DDAs are those with the income and poverty rate as estimated in percent or more, from the same statistic highest ratios cumulative to 20 percent the 2006–2010, 2007–2011 and 2008– calculated at the MSA level. In addition, of the 2010 population of all 2012 ACS tabulations; the FY2012, a few HMFAs were formed on the basis metropolitan areas and all FY2013 and FY2014 Very Low-Income of very large differences in AMGIs nonmetropolitan areas. Limits (VLILs) computed at the HUD among the MSA parts. All HMFAs are Metropolitan FMR Area (HMFA) level 1 contained entirely within MSAs. All Application of Population Caps to DDA Determinations to determine tract eligibility; and the nonmetropolitan counties are outside of MSA definitions published in OMB MSAs and are not broken up by HUD for In identifying DDAs, HUD applied Bulletin No. 10–02 on December 1, purposes of setting FMRs and VLILs. caps, or limitations, as noted above. The 2009, for determining how many (Complete details on HUD’s process for cumulative population of metropolitan determining FY2014 FMR areas and DDAs cannot exceed 20 percent of the 1 FY2012 HUD income limits for very low-income FMRs are available at http:// cumulative population of all households (very low-income limits, or VLILs) are www.huduser.org/portal/datasets/fmr/ metropolitan areas, and the cumulative based on 50 percent of AMGI. In formulating the fmrs/docsys.html&data=fmr14. population of nonmetropolitan DDAs FY2012 Fair Market Rents (FMRs) and VLILs, HUD modified the current OMB definitions of MSAs to Complete details on HUD’s process for cannot exceed 20 percent of the account for substantial differences in rents among determining FY2014 income limits are cumulative population of all areas within each new MSA that were in different available at http://www.huduser.org/ nonmetropolitan areas. FMR areas under definitions used in prior years. portal/datasets/il/il14/index.html.) In applying these caps, HUD HUD formed these ‘‘HUD Metro FMR Areas’’ (HMFAs) in cases where one or more of the parts HUD’s unit of analysis for designating established procedures to deal with how of newly defined MSAs that previously were in metropolitan DDAs consists of: entire to treat small overruns of the caps. The separate FMR areas had 2000 Census based 40th- MSAs, in cases where these were not remainder of this section explains those percentile recent-mover rents that differed, by 5 broken up into HMFAs for purposes of procedures. In general, HUD stops percent or more, from the same statistic calculated at the MSA level. In addition, a few HMFAs were computing FMRs and VLILs; and selecting areas when it is impossible to formed on the basis of very large differences in HMFAs within the MSAs that were choose another area without exceeding AMGIs among the MSA parts. All HMFAs are broken up for such purposes. Hereafter the applicable cap. The only exceptions contained entirely within MSAs. All in this notice, the unit of analysis for to this policy are when the next eligible nonmetropolitan counties are outside of MSAs and are not broken up by HUD for purposes of setting designating metropolitan DDAs will be excluded area contains either a large FMRs and VLILs. (Complete details on HUD’s called the HMFA, and the unit of absolute population or a large process for determining FY2012 FMR areas and analysis for nonmetropolitan DDAs will percentage of the total population, or FMRs are available at http://www.huduser.org/ be the nonmetropolitan county or the next excluded area’s ranking ratio, portal/datasets/fmr/fmrs/docsys.html&data=fmr12. Complete details on HUD’s process for determining county equivalent area. The procedure as described above, was identical (to FY2012 income limits are available at http:// used in making the DDA calculations four decimal places) to the last area www.huduser.org/portal/datasets/il/il12/ follows: selected, and its inclusion resulted in index.html.)

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eligible tracts can be designated under adjusted income standard for the tract, averaged to yield a combined rank. The the statutory 20 percent population cap. then more than 50 percent of tracts are then sorted on the combined HUD uses the HMFA-level AMGIs to households have incomes below the rank, with the census tract with the determine QCT eligibility because the standard. highest combined rank being placed at statute, specifically IRC Section 3. For each census tract, the poverty the top of the sorted list. In the event of 42(d)(5)(B)(iv)(II), refers to the same rate was determined in each of the three a tie, more populous tracts are ranked section of the IRC that defines income years of ACS tabulations (2006–2010, above less populous ones. for purposes of tenant eligibility and 2007–2011 and 2008–2012) by dividing d. Tracts in the second group are unit maximum rent, specifically IRC the population with incomes below the ranked from highest to lowest by the Section 42(g)(4). By rule, the IRS sets poverty line by the population for average of the ratios of the tract average- these income limits according to HUD’s whom poverty status has been household-size-adjusted income limit to VLILs, which, starting in FY2006 and determined 3. the median household income. Then, thereafter, are established at the HMFA 4. QCTs are those census tracts in tracts in the second group are ranked level. Similarly, HUD uses the entire which 50 percent or more of the from highest to lowest by the average of MSA to determine how many eligible households meet the income criterion in the poverty rates. The two ranks are tracts can be designated under the 20 at least two of the three years evaluated, then averaged to yield a combined rank. percent population cap as required by or 25 percent or more of the population The tracts are then sorted on the the statute (IRC Section is in poverty in at least two of the three combined rank, with the census tract 42(d)(5)(B)(ii)(III)), which states that years evaluated, such that the with the highest combined rank being MSAs should be treated as singular population of all census tracts that placed at the top of the sorted list. In the areas. The QCTs were determined as satisfy either one or both of these event of a tie, more populous tracts are follows: criteria does not exceed 20 percent of ranked above less populous ones. 1. To be eligible to be designated a the total population of the respective e. The ranked first group is stacked on QCT, a census tract must have 50 area. top of the ranked second group to yield percent of its households with incomes 5. In areas where more than 20 a single, concatenated, ranked list of below 60 percent of the AMGI or have percent of the population resides in eligible census tracts. a poverty rate of 25 percent or more. eligible census tracts, census tracts are f. Working down the single, Due to potential statistical anomalies in designated as QCTs in accordance with concatenated, ranked list of eligible the ACS 5-year estimates, one of these the following procedure: tracts, census tracts are identified as conditions must be met in at least 2 of a. The income and poverty criteria are designated until the designation of an the 3 evaluation years for a tract to be each averaged over the three years of additional tract would cause the 20 considered eligible for QCT designation. data (2006–2010, 2007–2011 and 2008– percent limit to be exceeded. If a census HUD calculates 60 percent of AMGI by 2012) if the values exceed the tract is not designated because doing so multiplying by a factor of 1.2 the HMFA threshold 4. Values below the threshold would raise the percentage above 20 or nonmetropolitan county VLIL are excluded. percent, subsequent census tracts are adjusted for inflation to match the ACS b. Eligible tracts are placed in one of then considered to determine if one or estimates. For example, the FY2012 two groups based on the averaged more census tract(s) with smaller VLILs were adjusted for inflation to values of the income and poverty population(s) could be designated 2010 dollars. The FY2013 VLILs were criteria. The first group includes tracts without exceeding the 20 percent limit. adjusted for inflation to 2011 dollars. that satisfy both the income and poverty C. Exceptions to OMB Definitions of The FY2014 VLILs were adjusted for criteria for QCTs in the same year for at MSAs and Other Geographic Matters inflation to 2012 dollars. least two of the three evaluation years. 2. For each census tract, whether or The second group includes tracts that As stated in OMB Bulletin 10–02, not 50 percent of households have satisfy either the income criterion or the defining metropolitan areas: poverty criterion in at least two of three incomes below the 60 percent income ‘‘OMB establishes and maintains the standard (income criterion) was years, but not both. A tract must qualify definitions of Metropolitan . . . Statistical determined by: (a) Calculating the for at least one of the criteria in at least Areas, . . . solely for statistical purposes. average household size of the census two of the three evaluation years to be . . . OMB does not take into account or tract, (b) applying the income standard eligible, although it does not need to be attempt to anticipate any non-statistical uses after adjusting it to match the average the same criterion. that may be made of the definitions[.] In household size, and (c) comparing the c. Tracts in the first group are ranked cases where . . . an agency elects to use the from highest to lowest by the average of Metropolitan . . . Area definitions in average-household-size-adjusted income nonstatistical programs, it is the sponsoring standard to the median household the ratios of the tract average- household-size-adjusted income limit to agency’s responsibility to ensure that the income for the tract reported in each of definitions are appropriate for such use. An the three years of ACS tabulations 2 the median household income. Then, agency using the statistical definitions in a (2006–2010, 2007–2011 and 2008– tracts in the first group are ranked from nonstatistical program may modify the 2012). Since 50 percent of households highest to lowest by the average of the definitions, but only for the purposes of that in a tract have incomes above and below poverty rates. The two ranks are program. In such cases, any modifications the tract median household income, if should be clearly identified as deviations the tract median household income is 3 If the confidence interval around the estimates from the OMB statistical area definitions in of the population for whom poverty status has been order to avoid confusion with OMB’s official less than the average-household-size- determined or the number of persons below poverty definitions of Metropolitan . . . Statistical included zero persons as determined from the Areas.’’ 2 If the confidence interval around the median margins of error for the estimates as published by household income determined from the margin of Census in one or more of the ACS tabulations Following OMB guidance, the error for the estimate as published by Census evaluated, HUD determined the tract to be ineligible estimation procedure for the FY2014 included $0 in one or more of the ACS tabulations for evaluation as a QCT under the poverty rate FMRs and income limits incorporates evaluated, HUD determined the tract to be ineligible criterion due to lack of reliable poverty statistics in for evaluation as a QCT under the income criterion that ACS tabulation. the current OMB definitions of due to lack of a reliable income statistic in that ACS 4 If a tract exceeded the threshold in only 2 years, metropolitan areas based on the Core- tabulation. only the qualifying two years of data were averaged. Based Statistical Area (CBSA) standards,

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as implemented with 2000 Census data, Future Designations the applicant submits a complete but makes adjustments to the DDAs are designated annually as application to the bond-issuing agency, definitions, in order to separate subparts updated income and FMR data are made and (b) the submission is made before the of these areas in cases where FMRs (and public. As previously announced, effective date of the subsequent lists, in a few cases, VLILs) would otherwise beginning with the 2016 metropolitan provided that both the issuance of the change significantly if the new area area designations, HUD will use ‘‘Small bonds and the placement in service of definitions were used without Area FMRs’’ (SAFMRs) defined at the the building occur after the application modification. In CBSAs where subareas ZIP Code level within metropolitan are established, it is HUD’s view that the is submitted. areas as the measure of ‘‘construction, geographic extent of the housing An application is deemed to be land, and utility costs relative to area markets are not yet the same as the submitted on the date it is filed if the median gross income’’ rather than FMRs geographic extent of the CBSAs, but application is determined to be established for HUD Metropolitan FMR may approach becoming so as the social complete by the credit-allocating or Areas. In general, HUD estimates and economic integration of the CBSA bond-issuing agency. A ‘‘complete SAFMRs by multiplying the ratio of component areas increases. application’’ means that no more than The geographic baseline for the FMR ZIP–Code area to metropolitan-area de minimis clarification of the and income limit estimation procedure median gross rent by the metropolitan- application is required for the agency to is the CBSA Metropolitan Areas area FMRs (a complete description of make a decision about the allocation of (referred to as Metropolitan Statistical how SAFMRs are estimated is available tax credits or issuance of bonds at: http://www.huduser.org/portal/ requested in the application. Areas or MSAs) and CBSA Non- _ _ Metropolitan Counties (nonmetropolitan datasets/fmr/fmr2013f/FY13 SAFMR In the case of a ‘‘multiphase project,’’ counties include the county Notice.pdf. the DDA or QCT status of the site of the components of Micropolitan CBSAs QCTs are designated periodically as project that applies for all phases of the where the counties are generally new data become available, or as project is that which applied when the assigned separate FMRs). The HUD- metropolitan area definitions change. project received its first allocation of modified CBSA definitions allow for QCTs are being updated at this time to LIHTC. For purposes of IRC Section subarea FMRs within MSAs based on incorporate two additional releases of 42(h)(4), the DDA or QCT status of the the boundaries of ‘‘Old FMR Areas’’ data since the 2013 QCT designations, site of the project that applies for all (OFAs) within the boundaries of new which were based on 2006–2010 ACS phases of the project is that which MSAs. (OFAs are the FMR areas defined estimates, were announced. The two applied when the first of the following for the FY2005 FMRs. Collectively, they subsequent releases of the ACS, the occurred: (a) The building(s) in the first include the June 30, 1999, OMB 2007–2011 estimates released in phase were placed in service, or (b) the definitions of MSAs and Primary MSAs December of 2012, and the 2008–2012 bonds were issued. (old definition MSAs/PMSAs), estimates released in December 2013, For purposes of this notice, a metropolitan counties deleted from old indicate that the 2006–2010 poverty rate ‘‘multiphase project’’ is defined as a set definition MSAs/PMSAs by HUD for estimates for certain tracts were of buildings to be constructed or FMR-setting purposes, and counties and anomalous and not an accurate rehabilitated under the rules of the county parts outside of old definition reflection of the true poverty rate in the LIHTC and meeting the following MSAs/PMSAs referred to as tract. In order to avoid basing QCT criteria: nonmetropolitan counties). Subareas of designations on a single estimate which (1) The multiphase composition of the MSAs are assigned their own FMRs and may be an anomaly due to sampling project (i.e., total number of buildings Income Limits when the subarea 2000 error rather than an accurate reflection and phases in project, with a Census Base FMR differs significantly of local conditions, HUD is adopting the description of how many buildings are from the MSA 2000 Census Base FMR method described in this notice to be built in each phase and when each (or, in some cases, where the 2000 incorporating three years of estimates. phase is to be completed, and any other Census base AMGI differs significantly Effective Date information required by the agency) is from the MSA 2000 Census Base AMGI). made known by the applicant in the MSA subareas, and the remaining The 2015 lists of DDAs are effective: first application of credit for any portions of MSAs after subareas have (1) For allocations of credit after building in the project, and that been determined, are referred to as December 31, 2014; or applicant identifies the buildings in the ‘‘HUD Metro FMR Areas (HMFAs),’’ to (2) for purposes of IRC Section project for which credit is (or will be) distinguish such areas from OMB’s 42(h)(4), if the bonds are issued and the sought; official definition of MSAs. building is placed in service after (2) The aggregate amount of LIHTC In the New England states December 31, 2014. applied for on behalf of, or that would (Connecticut, Maine, Massachusetts, If an area is not on a subsequent list eventually be allocated to, the buildings New Hampshire, Rhode Island, and of DDAs, the 2015 lists are effective for on the site exceeds the one-year Vermont), HMFAs are defined according the area if: limitation on credits per applicant, as to county subdivisions or minor civil (1) The allocation of credit to an defined in the Qualified Allocation Plan divisions (MCDs), rather than county applicant is made no later than the end (QAP) of the LIHTC-allocating agency, boundaries. However, since no part of of the 365-day period after the applicant or the annual per-capita credit authority an HMFA is outside an OMB-defined, submits a complete application to the of the LIHTC allocating agency, and is county-based MSA, all New England LIHTC-allocating agency, and the the reason the applicant must request nonmetropolitan counties are kept submission is made before the effective multiple allocations over 2 or more intact for purposes of designating date of the subsequent lists; or years; and Nonmetropolitan DDAs. (2) for purposes of IRC Section (3) All applications for LIHTC for For the convenience of readers of this 42(h)(4), if: buildings on the site are made in notice, the geographical definitions of (a) The bonds are issued or the immediately consecutive years. designated Metropolitan DDAs are building is placed in service no later Members of the public are hereby included in the list of DDAs. than the end of the 365-day period after reminded that the Secretary of Housing

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and Urban Development, or the (Case C) Project C is located in a 2015 allocation of credits in 2015, pursuant to Secretary’s designee, has legal authority DDA that was not a DDA in 2014. an application filed March 15, 2015, to designate DDAs and QCTs, by Project C was placed in service on which does not describe the multiphase publishing lists of geographic entities as November 15, 2014. A complete composition of the project. An defined by, in the case of DDAs, the application for tax-exempt bond application for tax credits for the second Census Bureau, the several states and financing for Project C is filed with the phase of Project F is filed with the the governments of the insular areas of bond-issuing agency on January 15, allocating agency by the same entity on the United States and, in the case of 2015. The bonds that will support the March 15, 2017. Credits are allocated to QCTs, by the Census Bureau; and to permanent financing of Project C are the second phase of Project F on establish the effective dates of such lists. issued on September 30, 2015. Project C October 30, 2017. The aggregate amount The Secretary of the Treasury, through is NOT eligible for the increase in basis of credits allocated to the two phases of the IRS thereof, has sole legal authority otherwise accorded a project in a 2015 Project F exceeds the amount of credits to interpret, and to determine and DDA, because the project was placed in that may be allocated to an applicant in enforce compliance with the IRC and service BEFORE January 1, 2015. one year under the allocating agency’s (Case D) Project D is located in an area associated regulations, including QAP. The second phase of Project F is, that is a DDA in 2015, but is NOT a DDA Federal Register notices published by therefore, not eligible for the increase in HUD for purposes of designating DDAs in 2016. A complete application for tax- exempt bond financing for Project D is basis accorded a project in a 2015 DDA, and QCTs. Representations made by any since it does not meet all of the other entity as to the content of HUD filed with the bond-issuing agency on October 30, 2015. Bonds are issued for conditions for a multiphase project, as notices designating DDAs and QCTs that defined in this notice. The original do not precisely match the language Project D on April 30, 2016, but Project D is not placed in service until January application for credits for the first phase published by HUD should not be relied did not describe the multiphase upon by taxpayers in determining what 30, 2017. Project D is eligible for the increase in basis available to projects composition of the project. Also, the actions are necessary to comply with application for credits for the second HUD notices. located in 2015 DDAs because: (1) One of the two events necessary for phase of Project F was not made in the triggering the effective date for buildings year immediately following the first Interpretive Examples of Effective Date described in Section 42(h)(4)(B) of the phase application year. For the convenience of readers of this IRC (the two events being bonds issued Findings and Certifications notice, interpretive examples are and buildings placed in service) took provided below to illustrate the place on April 30, 2016, within the 365- Environmental Impact consequences of the effective date in day period after a complete application for tax-exempt bond financing was filed, This notice involves the areas that gain or lose DDA status. The (2) the application was filed during a establishment of fiscal requirements or examples covering DDAs are equally time when the location of Project D was procedures that are related to rate and applicable to QCT designations. in a DDA, and (3) both the issuance of cost determinations and do not (Case A) Project A is located in a 2015 the bonds and placement in service of constitute a development decision DDA that is NOT a designated DDA in Project D occurred after the application affecting the physical condition of 2016. A complete application for tax was submitted. specific project areas or building sites. credits for Project A is filed with the (Case E) Project E is a multiphase Accordingly, under 40 CFR 1508.4 of allocating agency on November 15, project located in a 2015 DDA that is not the regulations of the Council on 2015. Credits are allocated to Project A a designated DDA in 2016. The first Environmental Quality and 24 CFR on October 30, 2016. Project A is phase of Project E received an allocation 50.19(c)(6) of HUD’s regulations, this eligible for the increase in basis of credits in 2015, pursuant to an notice is categorically excluded from accorded a project in a 2015 DDA application filed March 15, 2015, which environmental review under the because the application was filed describes the multiphase composition of National Environmental Policy Act of BEFORE January 1, 2016 (the assumed the project. An application for tax 1969 (42 U.S.C. 4321). effective date for the 2016 DDA lists), credits for the second phase Project E is and because tax credits were allocated filed with the allocating agency by the Federalism Impact no later than the end of the 365-day same entity on March 15, 2016. The period after the filing of the complete second phase of Project E is located on Executive Order 13132 (entitled application for an allocation of tax a contiguous site. Credits are allocated ‘‘Federalism’’) prohibits an agency from credits. to the second phase of Project E on publishing any policy document that (Case B) Project B is located in a 2015 October 30, 2016. The aggregate amount has federalism implications if the DDA that is NOT a designated DDA in of credits allocated to the two phases of document either imposes substantial 2016 or 2017. A complete application Project E exceeds the amount of credits direct compliance costs on state and for tax credits for Project B is filed with that may be allocated to an applicant in local governments and is not required the allocating agency on December 1, one year under the allocating agency’s by statute, or the document preempts 2015. Credits are allocated to Project B QAP and is the reason that applications state law, unless the agency meets the on March 30, 2017. Project B is NOT were made in multiple phases. The consultation and funding requirements eligible for the increase in basis second phase of Project E is, therefore, of section 6 of the executive order. This accorded a project in a 2015 DDA eligible for the increase in basis notice merely designates DDAs as because, although the application for an accorded a project in a 2015 DDA, required under IRC Section 42, as allocation of tax credits was filed because it meets all of the conditions to amended, for the use by political BEFORE January 1, 2016 (the assumed be a part of a multiphase project. subdivisions of the states in allocating effective date of the 2016 DDA lists), the (Case F) Project F is a multiphase the LIHTC. This notice also details the tax credits were allocated later than the project located in a 2015 DDA that is technical method used in making such end of the 365-day period after the filing NOT a designated DDA in 2016. The designations. As a result, this notice is of the complete application. first phase of Project F received an not subject to review under the order.

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Dated: September 29, 2014. (including take or interstate commerce) The applicant requests a permit Kathy M. O’Regan, with respect to U.S. endangered or renewal to take (capture, collect, Assistant Secretary for Policy Development threatened species for scientific measure, mark, attach radio or sonic and Research. purposes or enhancement of transmitters, collect biological samples, [FR Doc. 2014–23684 Filed 10–2–14; 8:45 am] propagation or survival. Our regulations captive propagate, and release) the BILLING CODE 4210–67–P implementing section 10(a)(1)(A) of the Kootenai River population of the white Act for these permits are found at 50 sturgeon (Acipenser transmontanus) in CFR 17.22 for endangered wildlife conjunction with captive propagation DEPARTMENT OF THE INTERIOR species, 50 CFR 17.32 for threatened and scientific research in Idaho and wildlife species, 50 CFR 17.62 for Montana for the purpose of enhancing Fish and Wildlife Service endangered plant species, and 50 CFR the species’ survival. 17.72 for threatened plant species. [FWS–R1–ES–2014–N204; Public Availability of Comments FXES11130100000–145–FF01E00000] Application Available for Review and All comments and materials we Comment Endangered Species; Recovery Permit receive in response to this request will Applications We invite local, State, and Federal be available for public inspection, by agencies and the public to comment on appointment, during normal business AGENCY: Fish and Wildlife Service, the following applications. Please refer hours at the address listed in the Interior. to the permit number for the application ADDRESSES section. ACTION: Notice of availability; request when submitting comments. Before including your address, phone for comments. Documents and other information number, email address, or other submitted with these applications are personal identifying information in your SUMMARY: We, the U.S. Fish and available for review by request from the comment, you should be aware that Wildlife Service, invite the public to Program Manager for Restoration and your entire comment—including your comment on the following applications Endangered Species Classification at the personal identifying information—may for recovery permits to conduct address listed in the ADDRESSES section be made publicly available at any time. activities with the purpose of enhancing of this notice, subject to the While you can ask us in your comment the survival of endangered species. The requirements of the Privacy Act (5 to withhold your personal identifying Endangered Species Act of 1973, as U.S.C. 552a) and the Freedom of information from public review, we amended (Act), prohibits certain Information Act (5 U.S.C. 552). cannot guarantee that we will be able to activities with endangered species do so. unless a Federal permit allows such Permit Number: TE–45531B Authority: We provide this notice under activity. The Act also requires that we Applicant: State of Hawaii, Division of section 10 of the Act (16 U.S.C. 1531 et seq.). invite public comment before issuing Forestry and Wildlife, Honolulu, Dated: September 23, 2014. such permits. Hawaii. DATES: To ensure consideration, please Hugh Morrison, The applicant requests a new permit Acting Regional Director, Pacific Region, U.S. send your written comments by to take (collect eggs, captive propagate, November 3, 2014. Fish and Wildlife Service. and release) the Kauai akialoa [FR Doc. 2014–23384 Filed 10–2–14; 8:45 am] ADDRESSES: Program Manager for (Hemignathus procerus), Kauai ‘o‘o BILLING CODE 4310–55–P Restoration and Endangered Species (Moho braccatus), large Kauai thrush Classification, Ecological Services, U.S. (Myadestes myadestinus), Maui akepa Fish and Wildlife Service, Pacific (Loxops coccineus ochraceus), Molokai DEPARTMENT OF THE INTERIOR Regional Office, 911 NE. 11th Avenue, creeper (Paroreomyza flammea), Portland, OR 97232–4181. Please refer Molokai thrush (Myadestes lanaiensis Bureau of Land Management to the permit number for the application rutha), nukupu‘u (Hemignathus [LLAK930000.L13100000.EI0000.241A] when submitting comments. lucidus), ‘o‘u (Psittirostra psittacea), FOR FURTHER INFORMATION CONTACT: Oahu creeper (Paroreomyza maculata), Notice of National Petroleum Reserve- Colleen Henson, Fish and Wildlife palila (Loxioides bailleui), and small Alaska Oil and Gas Lease Sale 2014 Biologist, at the above address, or by Kauai thrush (Myadestes palmeri); to and the Availability of the Detailed telephone (503–231–6131) or fax (503– take (collect eggs, capture adults, Statement of Sale for Oil and Gas 231–6243). captive propagate, and release) the Lease Sale 2014 in the National SUPPLEMENTARY INFORMATION: Hawaiian crow or ‘alala (Corvus Petroleum Reserve-Alaska hawaiiensis), Maui parrotbill Background (Pseudonestor xanthophrys), and AGENCY: Bureau of Land Management, The Act (16 U.S.C. 1531 et seq.) po‘ouli (Melamprosops phaeosoma); Interior. prohibits certain activities with respect and to take (collect eggs, capture ACTION: Notice. to endangered and threatened species nestlings and adults, captive propagate, unless a Federal permit allows such and release) the akekee (Loxops SUMMARY: The Bureau of Land activity. Along with our implementing caeruleirostris) and akikiki (Oreomystis Management (BLM) Alaska State Office regulations in the Code of Federal bairdi) throughout their ranges in will hold an oil and gas lease sale bid Regulations (CFR) at 50 CFR part 17, the Hawaii, in conjunction with captive opening for tracts in the National Act provides for certain permits, and breeding and population management Petroleum Reserve-Alaska. The United requires that we invite public comment activities, for the purpose of enhancing States reserves the right to withdraw before issuing these permits for the species’ survival. any tract from this sale prior to issuance endangered species. of a written acceptance of a bid. Permit Number: TE–798744 A permit granted by us under section DATES: The oil and gas lease sale bid 10(a)(1)(A) of the Act authorizes the Applicant: Kootenai Tribe of Idaho, opening will be held at 1 p.m. on permittee to conduct activities Bonners Ferry, Idaho. Wednesday, November 19, 2014. Sealed

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bids must be received by 4 p.m., given that the October 7, 2014, meeting Issued: September 30, 2014. Monday, November 17, 2014. of the Big Cypress National Preserve William R. Bishop, ADDRESSES: The oil and gas lease sale Off-Road Vehicle Advisory Committee Supervisory Hearings and Information bids will be opened at the Anchorage previously announced in the Federal Officer. Federal Building, Denali Room (fourth Register, Vol. 79, March 12, 2014, p. [FR Doc. 2014–23721 Filed 10–1–14; 11:15 am] floor), 222 W. 7th Ave., Anchorage, AK. 14080, is cancelled. BILLING CODE 7020–02–P Sealed bids must be sent to Carol Taylor FOR FURTHER INFORMATION CONTACT: (AK932), BLM-Alaska State Office; 222 Pedro Ramos, Superintendent, Big West 7th Avenue, #13; Anchorage, AK Cypress National Preserve, 33100 INTERNATIONAL TRADE 99513–7504. Tamiami Trail East, Ochopee, Florida COMMISSION FOR FURTHER INFORMATION CONTACT: 34141–1000, (239) 695–1103. [USITC SE–14–033] Wayne Svejnoha, 907–271–4407. SUPPLEMENTARY INFORMATION: The Persons who use a Sunshine Act Meeting telecommunications device for the deaf Committee was established (Federal (TDD) may call the Federal Information Register, August 1, 2007, pp. 42108– AGENCY HOLDING THE MEETING: United Relay Service (FIRS) at 1–800–877–8339 42109) pursuant to the Preserve’s 2000 States International Trade Commission Recreational Off-Road Vehicle to contact the above individual during TIME AND DATE: October 10, 2014 at 11:00 normal business hours. The FIRS is Management Plan and the Federal Advisory Committee Act (5 U.S.C. a.m. available 24 hours a day, 7 days a week, PLACE: Room 101, 500 E Street SW., to leave a message or question with the Appendix 1–16) to examine issues and make recommendations regarding the Washington, DC 20436, Telephone: above individual. You will receive a (202) 205–2000. reply during normal business hours. management of off-road vehicles in the Preserve. STATUS: Open to the public SUPPLEMENTARY INFORMATION: All bids must be submitted by sealed bid in Dated: September 29, 2014. MATTERS TO BE CONSIDERED: accordance with the provisions Alma Ripps, 1. Agendas for future meetings: none identified in the Detailed Statement of Chief, Office of Policy. 2. Minutes 3. Ratification List Sale. The Detailed Statement of Sale for [FR Doc. 2014–23651 Filed 10–2–14; 8:45 am] 4. Vote in Inv. Nos. 701–TA–523 and the National Petroleum Reserve-Alaska BILLING CODE 4310–EE–P Oil and Gas Lease Sale 2014 will be 731–TA–1259 available to the public immediately after (Preliminary)(Boltless Steel publication of this Notice in the Federal Shelving Units Prepackaged for Sale Register. The Detailed Statement of Sale INTERNATIONAL TRADE from China). The Commission is may be obtained from the BLM-Alaska COMMISSION currently scheduled to complete Web site at www.blm.gov/ak, or by and file its determinations on October 10, 2014; views of the request from the Public Information [USITC SE–14–032] Center, BLM-Alaska State Office; 222 Commission are currently West 7th Ave., #13; Anchorage, AK Sunshine Act Meetings scheduled to be completed and 99513–7504; telephone 907–271–5960. filed on October 20, 2014. 5. Outstanding action jackets: none The Detailed Statement of Sale will AGENCY HOLDING THE MEETING: United include a description of the areas to be States International Trade Commission. In accordance with Commission offered for lease, lease terms, policy, subject matter listed above, not TIME AND DATE: October 9, 2014 at 11:00 conditions, special stipulations, disposed of at the scheduled meeting, a.m. required operating procedures, and how may be carried over to the agenda of the and where to submit bids. PLACE: Room 101, 500 E Street SW., following meeting. Washington, DC 20436, Telephone: Authority: 43 CFR 3131.4–1. Issued: September 30, 2014. (202) 205–2000. By order of the Commission. Ted A. Murphy, STATUS: Open to the public. William R. Bishop, Associate State Director. MATTERS TO BE CONSIDERED: Supervisory Hearings and Information [FR Doc. 2014–23607 Filed 10–2–14; 8:45 am] Officer. BILLING CODE 4310–JA–P 1. Agendas for future meetings: none 2. Minutes [FR Doc. 2014–23761 Filed 10–1–14; 4:15 pm] 3. Ratification List BILLING CODE 7020–02–P DEPARTMENT OF THE INTERIOR 4. Vote in Inv. Nos. 701–TA–501 and National Park Service 731–TA–1226 (Final)(Chlorinated JOINT BOARD FOR THE Isocyanurates from China and ENROLLMENT OF ACTUARIES [NPS–SER–BICY–16532; PPSEBICY00, Japan). The Commission is PPMPSPD1Z.YM0000] currently scheduled to complete Invitation for Membership on Advisory and file its determinations and Cancellation of October 7, 2014, Committee views of the Commission on Meeting of the Big Cypress National October 21, 2014. AGENCY: Joint Board for the Enrollment Preserve Off-Road Vehicle Advisory of Actuaries. Committee 5. Outstanding action jackets: none ACTION: In accordance with Commission Request for applications. AGENCY: National Park Service, Interior. policy, subject matter listed above, not SUMMARY: ACTION: Cancellation of Meeting. The Joint Board for the disposed of at the scheduled meeting, Enrollment of Actuaries (Joint Board), SUMMARY: In accordance with the may be carried over to the agenda of the established under the Employee Federal Advisory Committee Act (5 following meeting. Retirement Income Security Act of 1974 U.S.C. Appendix 1–16), notice is hereby By order of the Commission. (ERISA), is responsible for the

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enrollment of individuals who wish to enrollment. The Advisory Committee’s provide written confirmation that he/ perform actuarial services under ERISA. duties, which are strictly advisory, she does not have a financial interest in To assist in its examination duties include (1) recommending topics for a Joint Board examination preparation mandated by ERISA, the Joint Board has inclusion on the Joint Board course. In addition, each member will established the Advisory Committee on examinations, (2) reviewing and drafting be required to attend annual ethics Actuarial Examinations (Advisory examination questions, (3) training. Committee) in accordance with the recommending examinations, (4) 6. Application Requirements provisions of the Federal Advisory reviewing examination results and Committee Act (FACA), 5 U.S.C. App. 2. recommending passing scores, and (5) To receive consideration, an The current Advisory Committee providing other recommendations and individual interested in serving on the members’ terms expire on February 28, advice relative to the examinations, as Advisory Committee must submit (1) a 2015. This notice describes the requested by the Joint Board. signed, cover letter expressing interest in serving on the Advisory Committee Advisory Committee and invites 3. Member Terms and Responsibilities applications from those interested in and describing his/her professional serving on the Advisory Committee for Members are appointed for a 2-year qualifications, and (2) a resume and/or the March 1, 2015–February 28, 2017, term. The upcoming term will begin on curriculum vitae. Applications may be term. March 1, 2015, and end on February 28, submitted by regular mail, overnight 2017. Members may seek reappointment and express delivery services, and DATES: Applications for membership on for additional consecutive terms. email. In all cases, the cover letter must the Advisory Committee must be Members are expected to attend contain an original signature. received by the Executive Director of the approximately 4 meetings each calendar Applications must be received by Joint Board, by no later than December year and are reimbursed for travel December 5, 2014. 5, 2014. expenses in accordance with applicable Dated: September 26, 2014. ADDRESSES: Mail or deliver applications government regulations. In general, to: Patrick W. McDonough; Executive members are expected to devote 125 to Patrick W. McDonough, Director, Joint Board for the Enrollment 175 hours, including meeting time, to Executive Director, Joint Board for the of Actuaries; Return Preparer Office the work of the Advisory Committee Enrollment of Actuaries. SE:RPO; Internal Revenue Service; 1111 over the course of a year. [FR Doc. 2014–23565 Filed 10–2–14; 8:45 am] Constitution Avenue NW.; REFM, Park BILLING CODE 4830–01–P 4, Floor 4; Washington, DC 20224. Send 4. Member Selection applications electronically to: The Joint Board seeks to appoint an [email protected]. Advisory Committee that is fairly DEPARTMENT OF LABOR See SUPPLEMENTARY INFORMATION for balanced in terms of points of view application requirements. represented and functions to be Occupational Safety and Health FOR FURTHER INFORMATION CONTACT: performed. Every effort is made to Administration Patrick W. McDonough, Executive ensure that most points of view extant [Docket No. OSHA–2007–0043] Director, at (703) 414–2173. in the enrolled actuary profession are SUPPLEMENTARY INFORMATION: represented on the Advisory Committee. TU¨ V SU¨ D America, Inc.; Application for To that end, the Joint Board seeks to Expansion of Recognition 1. Background appoint several members from each of To qualify for enrollment to perform the main practice areas of the enrolled AGENCY: Occupational Safety and Health actuarial services under ERISA, an actuary profession, including small Administration, Labor. applicant must satisfy certain employer plans, large employer plans, ACTION: Notice. experience and knowledge and multiemployer plans. In addition, SUMMARY: In this notice, OSHA requirements, which are set forth in the to ensure diversity of points of view, the announces the application of TU¨ V SU¨ D Joint Board’s regulations. An applicant Joint Board limits the number of America, Inc. for expansion of its may satisfy the knowledge requirement members affiliated with any one recognition as a Nationally Recognized by successful completion of Joint Board actuarial organization or employed with Testing Laboratory (NRTL) and presents examinations in basic actuarial any one firm. the Agency’s preliminary finding to mathematics and methodology and in Membership normally will be limited grant the application. actuarial mathematics and methodology to actuaries currently enrolled by the relating to pension plans qualifying Joint Board. However, individuals DATES: Submit comments, information, under ERISA. having academic or other special and documents in response to this The Joint Board, the Society of qualifications of particular value for the notice, or requests for an extension of Actuaries, and the American Society of Advisory Committee’s work also will be time to make a submission, on or before Pension Professionals & Actuaries considered for membership. Federally- October 20, 2014. jointly offer examinations acceptable to registered lobbyists and individuals ADDRESSES: Submit comments by any of the Joint Board for enrollment purposes affiliated with Joint Board enrollment the following methods: and acceptable to the other two actuarial examination preparation courses are not 1. Electronically: Submit comments organizations as part of their respective eligible to serve on the Advisory and attachments electronically at examination programs Committee. http://www.regulations.gov, which is the Federal eRulemaking Portal. Follow 2. Scope of Advisory Committee Duties 5. Member Designation the instructions online for making The Advisory Committee plays an Advisory Committee members are electronic submissions. integral role in the examination program appointed as Special Government 2. Facsimile: If submissions, by assisting the Joint Board in offering Employees (SGEs). As such, members including attachments, are not longer examinations that enable examination are subject to certain ethical standards than 10 pages, commenters may fax candidates to demonstrate the applicable to SGEs. Upon appointment, them to the OSHA Docket Office at (202) knowledge necessary to qualify for each member will be required to 693–1648.

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3. Regular or express mail, hand Programs and Coordination Activities, within the NRTL’s scope. Recognition is delivery, or messenger (courier) service: Directorate of Technical Support and not a delegation or grant of government Submit comments, requests, and any Emergency Management, Occupational authority; however, recognition enables attachments to the OSHA Docket Office, Safety and Health Administration, U.S. employers to use products approved by Docket No. OSHA–2007–0043, Department of Labor, 200 Constitution the NRTL to meet OSHA standards that Technical Data Center, U.S. Department Avenue NW., Room N–3655, require product testing and certification. of Labor, 200 Constitution Avenue NW., Washington, DC 20210, or by fax to The Agency processes applications by (202) 693–1644. Room N–2625, Washington, DC 20210; an NRTL for initial recognition and for telephone: (202) 693–2350 (TTY FOR FURTHER INFORMATION CONTACT: an expansion or renewal of this number: (877) 889–5627). Note that Information regarding this notice is recognition, following requirements in security procedures may result in available from the following sources: Appendix A to 29 CFR 1910.7. This significant delays in receiving Press inquiries: Contact Mr. Frank appendix requires that the Agency comments and other written materials Meilinger, Director, OSHA Office of publish two notices in the Federal by regular mail. Contact the OSHA Communications, U.S. Department of Register in processing an application. In Docket Office for information about Labor, 200 Constitution Avenue NW., the first notice, OSHA announces the security procedures concerning delivery Room N–3647, Washington, DC 20210; of materials by express mail, hand telephone: (202) 693–1999; email: application and provides its preliminary delivery, or messenger service. The [email protected]. finding. In the second notice, the hours of operation for the OSHA Docket General and technical information: Agency provides its final decision on Office are 8:15 a.m.–4:45 p.m., e.t. Contact Mr. Kevin Robinson, Office of the application. These notices set forth 4. Instructions: All submissions must Technical Programs and Coordination the NRTL’s scope of recognition or include the Agency name and the OSHA Activities, Directorate of Technical modifications of that scope. OSHA docket number (OSHA–2007–0043). Support and Emergency Management, maintains an informational Web page OSHA places comments and other Occupational Safety and Health for each NRTL, including TUVAM, materials, including any personal Administration, U.S. Department of which details the NRTL’s scope of information, in the public docket Labor, 200 Constitution Avenue NW., recognition. These pages are available without revision, and these materials Room N–3655, Washington, DC 20210; from the OSHA Web site at http:// will be available online at http:// phone: (202) 693–2110 or email: www.osha.gov/dts/otpca/nrtl/ www.regulations.gov. Therefore, the [email protected]. index.html. Agency cautions commenters about SUPPLEMENTARY INFORMATION: TUVAM currently has three facilities submitting statements they do not want (sites) recognized by OSHA for product I. Notice of the Application for made available to the public, or testing and certification, with its Expansion submitting comments that contain headquarters located at: TU¨ V SU¨ D personal information (either about The Occupational Safety and Health America, Inc., 10 Centennial Drive, themselves or others) such as Social Administration is providing notice that Peabody, Massachusetts 01960. A Security numbers, birth dates, and TU¨ V SU¨ D America, Inc. (TUVAM), is complete list of TUVAM’s scope of medical data. applying for expansion of its current recognition is available at http:// 5. Docket: To read or download recognition as an NRTL. TUVAM www.osha.gov/dts/otpca/nrtl/ submissions or other material in the requests the addition of one test tuvam.html. docket, go to http://www.regulations.gov standard to its NRTL scope of or the OSHA Docket Office at the recognition. II. General Background on the address above. All documents in the OSHA recognition of an NRTL Application docket are listed in the http:// signifies that the organization meets the www.regulations.gov index; however, requirements specified in 29 CFR TUVAM submitted an application, some information (e.g., copyrighted 1910.7. Recognition is an dated June 9, 2014 (Exhibit 14–1— material) is not publicly available to acknowledgment that the organization TUVAM Request for Expansion), to read or download through the Web site. can perform independent safety testing expand its recognition to include one All submissions, including copyrighted and certification of the specific products additional test standard. OSHA staff material, are available for inspection covered within its scope of recognition. performed a comparability analysis and and copying at the OSHA Docket Office. Each NRTL’s scope of recognition reviewed other pertinent information. Contact the OSHA Docket Office for includes (1) the type of products the OSHA did not perform any on-site assistance in locating docket NRTL may test, with each type specified reviews in relation to this application. submissions. by its applicable test standard; and (2) Table 1 below lists the appropriate 6. Extension of comment period: the recognized site(s) that has/have the test standards found in TUVAM’s Submit requests for an extension of the technical capability to perform the application for expansion for testing and comment period on or before October product-testing and product- certification of products under the 20, 2014 to the Office of Technical certification activities for test standards NRTL Program.

TABLE 1—PROPOSED APPROPRIATE TEST STANDARD FOR INCLUSION IN TUVAM’S NRTL SCOPE OF RECOGNITION

Test standard Test standard title

AAMI ES60601–1 ...... Medical electrical equipment—Part 1: General requirements for basic safety and essential performance.

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III. Preliminary Findings on the 1–2012 (77 FR 3912, Jan. 25, 2012), and updates to better describe the Application 29 CFR 1910.7. management of the Committee’s records. TUVAM submitted an acceptable Signed at Washington, DC, on September Authority and Signature 29, 2014. application for expansion of its scope of David Michaels, Ph.D., MPH, David Michaels, recognition. OSHA’s review of the Assistant Secretary of Labor for application file, and the comparability Assistant Secretary of Labor for Occupational Occupational Safety and Health, analysis, indicate that TUVAM can meet Safety and Health. directed the preparation of this notice. the requirements prescribed by 29 CFR [FR Doc. 2014–23606 Filed 10–2–14; 8:45 am] The authority for this notice is granted 1910.7 for expanding its recognition to BILLING CODE 4510–26–P by section 7 of the Occupational Safety include the addition of this one test and Health Act of 1970 (29 U.S.C. 656), standard for NRTL testing and section 107 of the Contract Work Hours DEPARTMENT OF LABOR certification listed above. This and Safety Standards Act (Construction preliminary finding does not constitute Occupational Safety and Health Safety Act) (40 U.S.C. 3704), the Federal an interim or temporary approval of Administration Advisory Committee Act (5 U.S.C. App. TUVAM’s application. 2), 29 CFR part 1912, 41 CFR part 102– OSHA welcomes public comment as [Docket No. OSHA–2014–0007] 3, and Secretary of Labor’s Order No. to whether TUVAM meets the 1–2012 (77 FR 3912, Jan. 25, 2012). Advisory Committee on Construction requirements of 29 CFR 1910.7 for Safety and Health (ACCSH); Notice of Signed at Washington, DC, on September expansion of its recognition as an NRTL. Intent To Renew the Charter 29, 2014. Comments should consist of pertinent David Michaels, written documents and exhibits. AGENCY: Occupational Safety and Health Assistant Secretary of Labor for Occupational Commenters needing more time to Administration (OSHA), Labor. Safety and Health. comment must submit a request in ACTION: Notice of intent to renew the [FR Doc. 2014–23603 Filed 10–2–14; 8:45 am] writing, stating the reasons for the ACCSH Charter. BILLING CODE 4510–26–P request. Commenters must submit the written request for an extension by the SUMMARY: The Secretary of Labor due date for comments. OSHA will limit intends to renew the Charter of the NATIONAL AERONAUTICS AND any extension to 10 days unless the Advisory Committee on Construction SPACE ADMINISTRATION requester justifies a longer period. Safety and Health. The current ACCSH OSHA may deny a request for an Charter will expire on November 26, [Notice: 14–098] extension if the request is not 2014. adequately justified. To obtain or review Aerospace Safety Advisory Panel; FOR FURTHER INFORMATION CONTACT: Mr. Meeting copies of the exhibits identified in this Damon S. Bonneau, Office of notice, as well as comments submitted Construction Services, Directorate of AGENCY: National Aeronautics and to the docket, contact the Docket Office, Construction, Occupational Safety and Space Administration (NASA). Room N–2625, Occupational Safety and Health Administration, Room N–3468, ACTION: Notice of Meeting. Health Administration, U.S. Department U.S. Department of Labor, 200 of Labor, at the above address. These Constitution Avenue NW., Washington, SUMMARY: In accordance with the materials also are available online at DC 20210; telephone (202) 693–2020 Federal Advisory Committee Act, Public http://www.regulations.gov under (TTY (877) 889–5627); email Law 92–463, as amended, the National Docket No. OSHA–2007–0043. [email protected]. Aeronautics and Space Administration announces a forthcoming meeting of the OSHA staff will review all comments SUPPLEMENTARY INFORMATION: ACCSH is Aerospace Safety Advisory Panel. to the docket submitted in a timely a continuing advisory committee DATES: manner and, after addressing the issues established under Section 107 of the Wednesday, October 29, 2014, raised by these comments, will Contract Work Hours and Safety 1:00 p.m. to 2:30 p.m., Local Time. recommend to the Assistant Secretary Standards Act (Construction Safety Act ADDRESSES: NASA Marshall Space for Occupational Safety and Health (CSA)) (40 U.S.C. 3704(d)(4)), to advise Flight Center, Building 4220, Room whether to grant TUVAM’s application the Secretary and the Assistant 1103, Huntsville, Alabama 35812. for expansion of its scope of recognition. Secretary of Labor for Occupational FOR FURTHER INFORMATION CONTACT: Ms. The Assistant Secretary will make the Safety and Health in the formulation of Marian Norris, Aerospace Safety final decision on granting the construction safety and health standards Advisory Panel Administrative Officer, application. In making this decision, the as well as on policy matters arising National Aeronautics and Space Assistant Secretary may undertake other under the CSA and the Occupational Administration, Washington, DC 20546, proceedings prescribed in Appendix A Safety and Health Act of 1970 (OSH (202) 358–4452 or [email protected]. to 29 CFR 1910.7. OSHA will publish a Act) (29 U.S.C. 651 et seq.). SUPPLEMENTARY INFORMATION: The public notice of its final decision in the In accordance with the Federal Aerospace Safety Advisory Panel Federal Register. Advisory Committee Act (FACA), as (ASAP) will hold its Fourth Quarterly IV. Authority and Signature amended (5 U.S.C. App. 2 § 14(b)(2)), Meeting for 2014. This discussion is and its implementing regulations (41 pursuant to carrying out its statutory David Michaels, Ph.D., MPH, CFR part 102–3 et seq.), the ACCSH duties for which the Panel reviews, Assistant Secretary of Labor for Charter must be renewed every two identifies, evaluates, and advises on Occupational Safety and Health, 200 years. The current ACCSH Charter will those program activities, systems, Constitution Avenue NW., Washington, expire on November 26, 2014. The new procedures, and management activities DC 20210, authorized the preparation of Charter includes minor updates to that can contribute to program risk. this notice. Accordingly, the Agency is reflect increases in the full-time Priority is given to those programs that issuing this notice pursuant to 29 U.S.C. employees required to support the involve the safety of human flight. The 657(g)(2), Secretary of Labor’s Order No. Committee (1.5 to 1.8) and minor agenda will include:

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Updates on the Exploration Systems with the Panel at the time of the • Directions for SBE Science in the Development meeting. Verbal presentations and 21th Century: Beyond the Mosaic. Updates on the Commercial Crew written comments should be limited to • Meeting with NSF Leadership. Program the subject of safety in NASA. It is Friday, October 31, 2014; 9 a.m.–12:15 Updates on the International Space imperative that the meeting be held on p.m. Station Program this date to accommodate the Overview of the Asteroid Redirect scheduling priorities of the key • National Center for Science and Mission participants. Engineering Statistics. • Understanding the Brain. The meeting will be open to the Patricia D. Rausch, • Agenda and Dates for Future public up to the seating capacity of the Advisory Committee Management Officer, Meetings, Assignments and Concluding room. Seating will be on a first-come National Aeronautics and Space Remarks. basis. This meeting is also available Administration. Dated: September 30, 2014. telephonically. Any interested person [FR Doc. 2014–23622 Filed 10–2–14; 8:45 am] Suzanne Plimpton, may call the USA toll free conference BILLING CODE 7510–13–P call number (800) 857–7040; pass code Acting, Committee Management Officer. 6749544. Attendees will be required to [FR Doc. 2014–23590 Filed 10–2–14; 8:45 am] sign a visitor’s register. All U.S. citizens NATIONAL SCIENCE FOUNDATION BILLING CODE 7555–01–P desiring to attend the Aerospace Safety Advisory Panel meeting at the Marshall Notice of Meeting of the Advisory Space Flight Center must provide their Committee for Social, Behavioral and NATIONAL SCIENCE FOUNDATION full name, company affiliation (if Economic Sciences applicable), driver’s license number and Notice of Meeting of the Advisory state, citizenship, place of birth, and In accordance with the Federal Committee for Education and Human date of birth to the Marshall Space Advisory Committee Act (Pub. L. 92– Resources 463, as amended), the National Science Flight Center Protective Services Office In accordance with the Federal no later than close of business on Foundation announces the following meeting: Advisory Committee Act (Pub. L. 92– October 24, 2014. 463, as amended), the National Science All non-U.S. citizens must submit Name: Advisory Committee for Social, Behavioral and Economic Foundation announces the following their name; current address; driver’s meeting: license number and state (if applicable); Sciences (#1171). Date/Time: October 30, 2014; 8:30 Name: Advisory Committee for citizenship; company affiliation (if a.m. to 5 p.m., October 31, 2014; 9 a.m. Education and Human Resources applicable) to include address, to 12:15 p.m. (#1119). telephone number, and title; place of Place: National Science Foundation, Date/Time: November 5, 2014; 8:30 birth; date of birth; U.S. visa 4201 Wilson Boulevard, Stafford I, a.m.–5 p.m.; November 6, 2014; 8:30 information to include type, number, Room 1235, Arlington, VA 22230. a.m.–2:30p.m. and expiration date; U.S. Social Security Type of Meeting: Open. Place: NSF Headquarters, Room 375, number (if applicable); Permanent Contact Person: Dr. Deborah Olster, 4201 Wilson Boulevard, Arlington, VA Resident card (green card) number and Office of the Assistant Director, 22230. expiration date (if applicable); place and Directorate for Social, Behavioral and Operated assisted teleconference is date of entry into the U.S.; and passport Economic Sciences, National Science available for this meeting. Call 800– information to include country of issue, Foundation, 4201 Wilson Boulevard, 857–3133 with password EHR AC and number, and expiration date to the Room 905, Arlington, Virginia 22230; you will be connected to the audio Marshall Space Flight Center Security Telephone 703–292–8700. portion of the meeting. Office no later than close of business on Summary of Minutes: May be To attend the meeting in person, all October 22, 2014. If the above obtained from contact person listed visitors must contact the Directorate for information is not received by the noted above. Education and Human Resources (ehr_ dates, attendees should expect a Purpose of Meeting: To provide [email protected]) at least 24 hours prior to the minimum delay of two (2) hours. advice and recommendations to the teleconference to arrange for a visitor’s Please provide the appropriate data, National Science Foundation on major badge. All visitors must report to the via fax at (256) 544–2101, noting at the goals and policies pertaining to Social, NSF visitor desk located in the lobby at top of the page ‘‘Public Admission to Behavioral and Economic Sciences the 9th and N. Stuart Streets entrance on the ASAP Meeting at MSFC.’’ For Directorate (SBE) programs and the day of the teleconference to receive security questions, please call Becky activities. a visitor’s badge. Hopson at (256) 544–4541. All visitors Meeting materials and minutes will Agenda: to this meeting will be required to also be available on the EHR Advisory process in through the Redstone/ Thursday, October 30, 2014 8:30 a.m.– Committee Web site at http:// Marshall Space Flight Center Joint 5:00 p.m. www.nsf.gov/ehr/advisory.jsp. Visitor Control Center located on • Directorate Update: Dr. Fay Lomax Type of Meeting: Open, Rideout Road, north of Gate 9, prior to Cook. teleconference. entering Marshall Space Flight Center. • Joint Meeting of SBE Advisory Contact Person: Teresa Caravelli, At the beginning of the meeting, Committee (AC) and NSF Advisory National Science Foundation, 4201 members of the public may make a 5- Committee for Cyberinfrastructure. Wilson Boulevard, Arlington, VA 22230, minute verbal presentation to the Panel • Reproducibility and Data Sharing. (703) 292–8600; [email protected]. on the subject of safety in NASA. To do • Privacy and Confidentiality. Purpose of Meeting: To provide so, please contact Ms. Marian Norris at • Report from SBE AC Subcommittee advice with respect to the Foundation’s [email protected] at least 48 hours in on Replicability in Science. science, technology, engineering, and advance. Any member of the public is • Report from SBE AC Subcommittee mathematics (STEM) education and permitted to file a written statement on Advancing SBE Survey Research. human resources programming.

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Agenda 2. Current OMB approval number: www.regulations.gov and search for 3150–0047. Docket No. NRC–2013–0088; or mail Wednesday, November 5, 2014 8:30 3. How often the collection is comments to the NRC’s Clearance a.m.–5 p.m.: required: On Occasion. Officer, Tremaine Donnell (T–5 F42), • Introduction by Joan Ferrini- 4. Who is required or asked to report: U.S. Nuclear Regulatory Commission, Mundy, Assistant Director for Education NRC-regulated facilities and their Washington, DC 20555–0001. and Human Resources. contractors who require access to, and Questions about the information • Program discussions on possession of, NRC classified collection requirements may be directed implementing the report ‘‘Strategic Re- information. to the NRC’s Clearance Officer, Envisioning for the Education and 5. The number of annual respondents: Tremaine Donnell (T–5 F42), U.S. Human Resources Directorate’’. 110. Nuclear Regulatory Commission, • Panel and Discussion on New 6. The number of hours needed Washington, DC 20555–0001, telephone: Directions in Assessment Metrics. annually to complete the requirement or 301–415–6258, or by email to http:// • Business from NSF Advisory request: 984.7 (832.7 reporting hours + www.INFOCOLLECTS.Resource@ Committees and Directorates. 152 recordkeeping hours). NRC.GOV. 7. Abstract: NRC-regulated facilities Thursday, November 6, 2014 8:30 a.m.– and their contractors who are Dated at Rockville, Maryland, this 29th day of September 2014. 2:30 p.m.: authorized to possess classified matter For the Nuclear Regulatory Commission. • Panel and Discussion on Models are required to provide information and and Theories for Big Data Use in maintain records to ensure that an Tremaine Donnell, Educations Research. adequate level of protection is provided NRC Clearance Officer, Office of Information • Welcome from Dr. France Co´rdova, to NRC classified information and Services. NSF Director. material. This clearance is being revised [FR Doc. 2014–23598 Filed 10–2–14; 8:45 am] • Plenary Session Discussion on to add a voluntary form (NRC Form BILLING CODE 7590–01–P Replication and Reproducibility of 450F) for fulfilling reporting Science Findings in STEM Education. requirements under § 95.17 of Title 10 • Recognition, Closing Remarks, and of the Code of Federal Regulations. NUCLEAR REGULATORY Wrap Up. Submit, by December 2, 2014, COMMISSION Dated: September 30, 2014. comments that address the following [Docket No. 50–341; ASLBP No. 14–933– questions: 01–LR–BD01] Suzanne Plimpton, 1. Is the proposed collection of Acting, Committee Management Officer. information necessary for the NRC to DTE Electric Company (Fermi Nuclear [FR Doc. 2014–23591 Filed 10–2–14; 8:45 am] properly perform its functions? Does the Power Plant, Unit 2); Notice of Atomic BILLING CODE 7555–01–P information have practical utility? Safety and Licensing Board 2. Is the burden estimate accurate? Reconstitution 3. Is there a way to enhance the NUCLEAR REGULATORY quality, utility, and clarity of the Pursuant to 10 CFR 2.313(c) and COMMISSION information to be collected? 2.321(b), the Atomic Safety and 4. How can the burden of the Licensing Board (Board) in the above- [Docket No. NRC–2013–0088] information collection be minimized, captioned Fermi Nuclear Power Plant, Unit 2 license renewal proceeding is Agency Information Collection including the use of automated collection techniques or other forms of hereby reconstituted by appointing Activities: Proposed Collection; Administrative Judge Gary S. Arnold to Comment Request information technology? The public may examine, and have serve on the Board in place of AGENCY: Nuclear Regulatory copied for a fee, publicly-available Administrative Judge Paul B. Abramson. Commission. documents, including the draft All correspondence, documents, and other materials shall continue to be filed ACTION: Notice of pending NRC action to supporting statement, at the NRC’s in accordance with the NRC E-Filing submit an information collection Public Document Room, Room O–1F21, rule. See 10 CFR. 2.302 et seq. request to the Office of Management and One White Flint North, 11555 Rockville Budget (OMB) and solicitation of public Pike, Rockville, Maryland 20852. The Issued at Rockville, Maryland this 29th day comment. OMB clearance requests are available at of September 2014. the NRC’s Web site: http://www.nrc.gov/ E. Roy Hawkens, SUMMARY: The U.S. Nuclear Regulatory public-involve/doc-comment/omb/. The Chief Administrative Judge, Atomic Safety Commission (NRC) invites public document will be available on the and Licensing Board Panel. comment about our intention to request NRC’s home page site for 60 days after [FR Doc. 2014–23667 Filed 10–2–14; 8:45 am] the OMB’s approval for renewal of an the signature date of this notice. BILLING CODE 7590–01–P existing information collection that is Comments submitted in writing or in summarized below. We are required to electronic form will be made available publish this notice in the Federal for public inspection. Because your POSTAL REGULATORY COMMISSION Register under the provisions of the comments will not be edited to remove Paperwork Reduction Act of 1995 (44 any identifying or contact information, [Docket Nos. MT2013–1; Order No. 2198] U.S.C. Chapter 35). the NRC cautions you against including Information pertaining to the any information in your submission that New Postal Product requirement to be submitted: you do not want to be publicly AGENCY: Postal Regulatory Commission. 1. The title of the information disclosed. Comments submitted should ACTION: Notice. collection: 10 CFR Part 95, Facility reference Docket No. NRC–2013–0088. Security Clearance and Safeguarding of You may submit your comments by any SUMMARY: The Commission is noticing a National Security Information and of the following methods: Electronic recent Postal Service filing concerning a Restricted Data. comments: go to http:// request for extension and expansion of

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Metro Post market test. This notice the Postal Service’s Request. Interested Comments to the RRB or OIRA must informs the public of the filing, invites persons may submit comments on contain the OMB control number of the public comment, and takes other whether the Postal Service’s filing in the ICR. For proper consideration of your administrative steps. captioned docket is consistent with the comments, it is best if the RRB and DATES: Comments are due: October 9, policies of 39 U.S.C. 3641. Comments OIRA receive them within 30 days of 2014. are due no later than October 9, 2014. the publication date. The filing can be accessed via the ADDRESSES: Submit comments The RRB uses a Personal Commission’s Web site (http:// electronically via the Commission’s Identification Number (PIN)/Password www.prc.gov). Filing Online system at http:// system that allows RRB customers to The Commission appoints Elisabeth conduct business with the agency www.prc.gov. Those who cannot submit S. Shellan to represent the interests of comments electronically should contact electronically. As part of the system, the the general public (Public RRB collects information needed to the person identified in the FOR FURTHER Representative) in this docket. INFORMATION CONTACT section by establish a unique PIN/Password that telephone for advice on filing III. Ordering Paragraphs allows customer access to RRB Internet- alternatives. based services. The information It is ordered: collected is matched against records of 1. The Commission reopens Docket FOR FURTHER INFORMATION CONTACT: the railroad employee that are No. MT2013–1 to consider matters David A. Trissell, General Counsel, at maintained by the RRB. If the 202–789–6820. raised by the Postal Service’s Request. 2. Pursuant to 39 U.S.C. 505, the information is verified, the request is SUPPLEMENTARY INFORMATION: Commission appoints Elisabeth S. approved and the RRB mails a Password Table of Contents Shellan to serve as an officer of the Request Code (PRC) to the requestor. If the information provided cannot be I. Introduction Commission (Public Representative) to represent the interests of the general verified, the requestor is advised to II. Notice of Commission Action contact the nearest field office of the III. Ordering Paragraphs public in this proceeding. 3. Comments are due no later than RRB to resolve the discrepancy. Once a I. Introduction October 9, 2014. PRC is obtained from the RRB, the On September 19, 2014, the Postal 4. The Secretary shall arrange for requestor can apply for a PIN/Password Service filed a request, pursuant to 39 publication of this order in the Federal online. Once the PIN/Password has been U.S.C. 3641(d)(2) and Order No. 1539, to Register. established, the requestor has access to RRB Internet-based services. extend the duration of the Metro Post By the Commission. Completion is voluntary, however, the market test for an additional year and to Ruth Ann Abrams, expand the test to additional markets RRB will be unable to provide a PRC or Acting Secretary. allow a requestor to establish a PIN/ across the nation during this additional [FR Doc. 2014–23615 Filed 10–2–14; 8:45 am] year.1 The Metro Post market test is Password (thereby denying system BILLING CODE 7710–FW–P currently set to expire on December 16, access), if the requests are not 2014. Request at 1. Metro Post is completed. currently being tested in the San Previous Requests for Comments: The RAILROAD RETIREMENT BOARD Francisco and New York City RRB has already published the initial metropolitan areas. ld. Agency Forms Submitted for OMB 60-day notice (79 FR 41604 on July 16, The Postal Service intends to expand Review, Request for Comments 2014) required by 44 U.S.C. 3506(c)(2). the Metro Post market test to a number That request elicited no comments. Summary: In accordance with the of additional markets over the next year Information Collection Request (ICR) so that it can examine the market for Paperwork Reduction Act of 1995 (44 same-day delivery in a wider range of U.S.C. Chapter 35), the Railroad Title: Request for Internet Services. metropolitan areas. ld. The Postal Retirement Board (RRB) is forwarding OMB Control Number: 3220–0198. Service explains that it is necessary to an Information Collection Request (ICR) Form(s) submitted: N/A. test a variety of metropolitan areas to to the Office of Information and Type of request: Extension of a determine the operational feasibility Regulatory Affairs (OIRA), Office of currently approved collection. and desirability of making Metro Post a Management and Budget (OMB). Our ICR describes the information we seek Affected public: Individuals or permanent product. ld. at 1–2. Households. Accordingly, the Postal Service to collect from the public. Review and requests to extend the Metro Post approval by OIRA ensures that we Abstract: The Railroad Retirement market test for one additional year, until impose appropriate paperwork burdens. Board collects information needed to December 16, 2015, and to expand the The RRB invites comments on the provide customers with the ability to test into other metropolitan areas over proposed collection of information to request a Password Request Code and the coming year. ld. at 2. The Postal determine (1) the practical utility of the subsequently, to establish an individual Service asserts that all other aspects of collection; (2) the accuracy of the PIN/Password, the initial steps in the Metro Post market test remains estimated burden of the collection; (3) providing the option of conducting unchanged, and in compliance with 39 ways to enhance the quality, utility, and transactions with the RRB on a routine U.S.C. 3641 and Commission Order No. clarity of the information that is the basis through the Internet. 1539. ld. subject of collection; and (4) ways to Changes proposed: The RRB proposes minimize the burden of collections on no changes to the PRC and PIN/ II. Notice of Filing respondents, including the use of Password screens. The Commission reopens Docket No. automated collection techniques or The burden estimate for the ICR is as MT2013–1 to consider matters raised by other forms of information technology. follows:

1 Request of the United States Postal Service for Test, September 19, 2014 (Request). See also Order No. 1539, Order Approving Metro Post Market Test, Extension and Expansion of Metro Post Market November 14, 2012.

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Annual Time Burden Form number responses (minutes) (hours)

PRC ...... 12,500 5.0 1,042 Pin/Password ...... 20,000 1.5 500

Total ...... 32,500 ...... 1,542

Additional Information or Comments: rule to meet its statutory prospectus cost burden is approximately $15,900 Copies of the forms and supporting delivery obligations must make per portfolio, for a total annual cost documents can be obtained from Dana available, free of charge, the fund’s burden of approximately $144,403,800.4 Hickman at (312) 751–4981 or current Summary Prospectus, statutory Estimates of the average burden hours prospectus, statement of additional [email protected]. are made solely for the purposes of the Comments regarding the information information, and most recent annual Paperwork Reduction Act and are not collection should be addressed to and semi-annual reports to shareholders Charles Mierzwa, Railroad Retirement at the Web site address specified in the derived from a comprehensive or even Board, 844 North Rush Street, Chicago, required Summary Prospectus legend.1 a representative survey or study of the Illinois 60611–2092 or A Summary Prospectus that complies costs of Commission rules and forms. [email protected] and to the with rule 498 is deemed to be a Under rule 498, use of the Summary OMB Desk Officer for the RRB, Fax: prospectus that is authorized under Prospectus is voluntary, but the rule’s 202–395–6974, Email address: OIRA_ Section 10(b) of the Securities Act and requirements regarding provision of the [email protected]. Section 24(g) of the Investment statutory prospectus upon investor Company Act of 1940 (15 U.S.C. 80a–1 request are mandatory for funds that Charles Mierzwa, et seq.). elect to send or give a Summary Chief of Information Resources Management. The purpose of rule 498 is to enable Prospectus in reliance upon rule 498. [FR Doc. 2014–23589 Filed 10–2–14; 8:45 am] a fund to provide investors with a The information provided under rule BILLING CODE 7905–01–P Summary Prospectus containing key 498 will not be kept confidential. An information necessary to evaluate an agency may not conduct or sponsor, and investment in the fund. Unlike many a person is not required to respond to, SECURITIES AND EXCHANGE other federal information collections, a collection of information unless it COMMISSION which are primarily for the use and displays a currently valid OMB control benefit of the collecting agency, this number. Submission for OMB Review; information collection is primarily for Comment Request the use and benefit of investors. The The public may view the background information filed with the Commission documentation for this information Upon Written Request, Copies Available also permits the verification of collection at the following Web site: From: Securities and Exchange compliance with securities law www.reginfo.gov. Comments should be Commission, Office of Investor requirements and assures the public directed to: (i) Desk Officer for the Education and Advocacy, availability and dissemination of the Securities and Exchange Commission, Washington, DC 20549–0213. information. Office of Information and Regulatory Extension: Based on an analysis of fund filings, Affairs, Office of Management and Rule 498, SEC File No. 270–574, OMB the Commission estimates that Budget, Room 10102, New Executive Control No. 3235–0648. approximately 9,082 portfolios are using Office Building, Washington, DC 20503, Notice is hereby given that, pursuant a Summary Prospectus. The or by sending an email to: to the Paperwork Reduction Act of 1995 Commission estimates that the annual [email protected]; and (ii) hourly burden per portfolio associated (44 U.S.C. 3501 et seq.) (‘‘Paperwork Thomas Bayer, Chief Information with the compilation of the information Reduction Act’’), the Securities and Officer, Securities and Exchange required on the cover page or the Exchange Commission (‘‘the Commission, c/o Remi Pavlik-Simon, Commission’’) has submitted to the beginning of the Summary Prospectus is 100 F Street NE., Washington, DC 20549 Office of Management and Budget 0.5 hours, and estimates that the annual hourly burden per portfolio to comply or send an email to: (‘‘OMB’’) a request for extension of the _ previously approved collection of with the Web site posting requirement PRA [email protected]. Comments must information discussed below. is approximately 1 hour, requiring a be submitted to OMB within 30 days of Rule 498 (17 CFR 230.498) under the total of 1.5 hours per portfolio per year.2 this notice. Securities Act of 1933 (15 U.S.C. 77a et Thus the total annual hour burden Dated: September 29, 2014. seq.) (‘‘Securities Act’’) permits open- associated with these requirements of Kevin M. O’Neill, end management investment companies the rule is approximately 13,623.3 The Deputy Secretary. (‘‘funds’’) to satisfy their prospectus Commission estimates that the annual delivery obligations under the Securities [FR Doc. 2014–23574 Filed 10–2–14; 8:45 am] Act by sending or giving key 1 17 CFR 270.498(e)(1). BILLING CODE 8011–01–P information directly to investors in the 2 0.5 hours per portfolio + 1 hour per portfolio = 1.5 hours per portfolio. The Commission believes form of a summary prospectus that funds that have opted to use the Summary (‘‘Summary Prospectus’’) and providing Prospectus have already incurred the estimated the statutory prospectus on a Web site. one-time hour burden to initially comply with rule Upon an investor’s request, funds are 498, and therefore the estimated burden hours to initially comply with rule 498 and the associated also required to send the statutory costs are not included in these estimates. prospectus to the investor. In addition, 3 1.5 hours per portfolio × 9,082 portfolios = 4 $15,900 per portfolio × 9,082 portfolios = under rule 498, a fund that relies on the 13,623 hours. $144,403,800.

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SECURITIES AND EXCHANGE 1 is not kept confidential. An agency be maintained and preserved by a COMMISSION may not conduct or sponsor, and a member of a national securities person is not required to respond to, a exchange, broker, or dealer to be Submission for OMB Review; collection of information unless it maintained and preserved by a self- Comment Request displays a currently valid OMB control regulatory organization that is also the Upon Written Request, Copies Available number. designated examining authority for that From: Securities and Exchange The public may view the background member, broker or dealer; and permits Commission, Office of FOIA Services, documentation for this information the required records to be preserved on 100 F Street NE., Washington, DC collection at the following Web site, microfilm. The general purpose of Rule 20549–2736. www.reginfo.gov. Comments should be 17f–2 is to: (i) Identify security risk directed to: (i) Desk Officer for the personnel; (ii) provide criminal record Extension: Securities and Exchange Commission, information so that employers can make Rule 30b2–1; SEC File No. 270–213, OMB Office of Information and Regulatory fully informed employment decisions; Control No. 3235–0220. Affairs, Office of Management and and (iii) deter persons with criminal Notice is hereby given that, pursuant Budget, Room 10102, New Executive records from seeking employment or to the Paperwork Reduction Act of 1995 Office Building, Washington, DC 20503, association with covered entities. The (44 U.S.C. 3501 et seq.), the Securities or by sending an email to: Shagufta_ rule enables the Commission or other and Exchange Commission (the [email protected]; and (ii) Thomas examining authority to ascertain ‘‘Commission’’) has submitted to the Bayer, Chief Information Officer, whether all covered persons are being Office of Management and Budget Securities and Exchange Commission, c/ fingerprinted and whether proper (‘‘OMB’’) a request for extension of the o Remi Pavlik-Simon, 100 F Street NE., procedures regarding fingerprinting are previously approved collection of Washington, DC 20549 or send an email being followed. Retention of these information discussed below. to: [email protected]. Comments records for a period of not less than Rule 30b2–1 (17 CFR 270.30b2–1) must be submitted to OMB within 30 three years after termination of a under the Investment Company Act of days of this notice. covered person’s employment or 1940 (15 U.S.C. 80a–1 et seq.) (the relationship with a covered entity Dated: September 29, 2014. ‘‘Investment Company Act’’) requires a ensures that law enforcement officials registered management investment Kevin M. O’Neill. will have easy access to fingerprint company (‘‘fund’’) to (1) file a report Deputy Secretary. cards on a timely basis. This in turn acts with the Commission on Form N–CSR [FR Doc. 2014–23572 Filed 10–2–14; 8:45 am] as an effective deterrent to employee (17 CFR 249.331 and 274.128) not later BILLING CODE 8011–01–P misconduct. than 10 days after the transmission of Approximately 5,300 respondents are any report required to be transmitted to subject to the recordkeeping shareholders under rule 30e–1 under SECURITIES AND EXCHANGE requirements of the rule. Each the Investment Company Act, and (2) COMMISSION respondent maintains approximately 60 file with the Commission a copy of new records per year, each of which every periodic or interim report or Submission for OMB Review; takes approximately 2 minutes to similar communication containing Comment Request maintain, for an annual burden of financial statements that is transmitted Upon Written Request, Copies Available approximately 2 hours per respondent by or on behalf of such fund to any class From: Securities and Exchange (60 records times 2 minutes). The total of such fund’s security holders and that Commission, Office of FOIA Services, annual burden for all respondents is is not required to be filed with the 100 F Street NE., Washington, DC approximately 10,600 hours (5,300 Commission under (1), not later than 10 20549–2736. respondents times 2 hours). As noted days after the transmission to security above, all records maintained subject to holders. The purpose of the collection of Extension: the rule must be retained for a period of information required by rule 30b2–1 is Rule 17f–2(d); SEC File No. 270–36, OMB not less than three years after Control No. 3235–0028. to meet the disclosure requirements of termination of a covered person’s the Investment Company Act and Notice is hereby given that pursuant employment or relationship with a certification requirements of the to the Paperwork Reduction Act of 1995 covered entity. In addition, we estimate Sarbanes-Oxley Act of 2002 (Pub. L. (‘‘PRA’’) (44 U.S.C. 3501 et seq.), the the total cost to respondents is 107–204, 116 Stat. 745 (2002)) and to Securities and Exchange Commission approximately $119,000. provide investors with information (‘‘Commission’’) has submitted to the An agency may not conduct or necessary to evaluate an interest in the Office of Management and Budget sponsor, and a person is not required to fund. (‘‘OMB’’) a request for approval of respond to, a collection of information The Commission estimates that there extension of the previously approved under the PRA unless it displays a are 2,430 funds, with a total of collection of information provided for in currently valid OMB control number. approximately 11,080 portfolios, that Rule 17f–2(d) (17 CFR 240.17f–2(d)) The public may view background are governed by the rule. For purposes under the Securities Exchange Act of documentation for this information of this analysis, the burden associated 1934 (15 U.S.C. 78a et seq.) (‘‘Act’’). collection at the following Web site: with the requirements of rule 30b2–1 Rule 17f–2(d) requires that records www.reginfo.gov. Comments should be has been included in the collection of created pursuant to the fingerprinting directed to: (i) Desk Officer for the information requirements of rule 30e–1 requirements of Section 17(f)(2) of the Securities and Exchange Commission, and Form N–CSR, rather than the rule. Act be maintained and preserved by Office of Information and Regulatory The Commission has, however, every member of a national securities Affairs, Office of Management and requested a one hour burden for exchange, broker, dealer, registered Budget, Room 10102, New Executive administrative purposes. transfer agent and registered clearing Office Building, Washington, DC 20503, The collection of information under agency (‘‘covered entities’’ or or by sending an email to: Shagufta_ rule 30b2–1 is mandatory. The ‘‘respondents’’); permits, under certain [email protected]; and (ii) Thomas information provided under rule 30b2– circumstances, the records required to Bayer, Director/Chief Information

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Officer, Securities and Exchange Sections 55 through 65 of the Notice is hereby given that pursuant Commission, c/o Remi Pavlik-Simon, Investment Company Act, enabling the to the Paperwork Reduction Act of 1995 100 F Street NE., Washington, DC Commission to administer those (44 U.S.C. 3501 et seq.), the Securities 20549, or be sending an email to: PRA_ provisions of the Investment Company and Exchange Commission (the [email protected]. Comments must be Act to such companies. ‘‘Commission’’) has submitted to the submitted to OMB within 30 days of The Commission estimates that on Office of Management and Budget a this notice. average approximately 14 business request for extension of the previously Dated: September 29, 2014. development companies file these approved collection of information discussed below. Kevin M. O’Neill, notifications each year. Each of those business development companies need Rule 34b–1 under the Investment Deputy Secretary. only make a single filing of Form N– Company Act (17 CFR 270.34b–1) [FR Doc. 2014–23571 Filed 10–2–14; 8:45 am] 54A. The Commission further estimates governs sales material that accompanies BILLING CODE 8011–01–P that this information collection imposes or follows the delivery of a statutory a burden of 0.5 hours, resulting in a prospectus (‘‘sales literature’’). Rule total annual PRA burden of 7 hours. 34b–1 deems to be materially SECURITIES AND EXCHANGE misleading any investment company COMMISSION Based on the estimated wage rate, the total cost to the business development (‘‘fund’’) sales literature required to be filed with the Securities and Exchange Submission for OMB Review; company industry of the hour burden Commission (‘‘Commission’’) by Section Comment Request for complying with Form N–54A would be approximately $2,338. 24(b) of the Investment Company Act Upon Written Request, Copies Available The collection of information under (15 U.S.C. 80a–24(b)) that includes From: Securities and Exchange Form N–54A is mandatory. The performance data, unless the sales Commission, Office of FOIA Services, information provided by the form is not literature also includes the appropriate 100 F Street NE., Washington, DC kept confidential. An agency may not uniformly computed data and the 20549–2736. conduct or sponsor, and a person is not legend disclosure required in investment company advertisements by Extension: required to respond to, a collection of Form N–54A, SEC File No. 270–182, OMB information unless it displays a rule 482 under the Securities Act of Control No. 3235–0237. currently valid control number. 1933 (17 CFR 230.482). Requiring the inclusion of such standardized The public may view the background Notice is hereby given that, pursuant performance data in sales literature is documentation for this information to the Paperwork Reduction Act of 1995 designed to prevent misleading collection at the following Web site, (44 U.S.C. 3501 et seq.), the Securities performance claims by funds and to www.reginfo.gov. Comments should be and Exchange Commission enable investors to make meaningful directed to: (i) Desk Officer for the (‘‘Commission’’) has submitted to the comparisons among funds. Office of Management and Budget a Securities and Exchange Commission, The Commission estimates that on request for extension of the previously Office of Information and Regulatory average approximately 130 respondents approved collection of information Affairs, Office of Management and file 13,685 1 responses that include the discussed below. Budget, Room 10102, New Executive information required by rule 34b–1 each Under the Investment Company Act Office Building, Washington, DC 20503, _ year. The burden resulting from the of 1940 (15 U.S.C. 80a–1 et seq.) (the or by sending an email to: Shagufta collection of information requirements ‘‘Investment Company Act’’), certain [email protected]; and (ii) Thomas of rule 34b–1 is estimated to be 2 hours investment companies can elect to be Bayer, Chief Information Officer, per response. The total annual burden regulated as business development Securities and Exchange Commission, hours for rule 34b–1 is approximately companies, as defined in Section c/o Remi Pavlik-Simon, 100 F Street 27,370 hours per year in the aggregate.2 2(a)(48) of the Investment Company Act NE., Washington, DC 20549 or send an The collection of information under (15 U.S.C. 80a–2(a)(48)). Under Section email to: [email protected]. rule 34b–1 is mandatory. The 54(a) of the Investment Company Act Comments must be submitted to OMB information provided under rule 34b–1 (15 U.S.C. 80a–53(a)), any company within 30 days of this notice. is not kept confidential. An agency may defined in Section 2(a)(48)(A) and (B) Dated: September 29, 2014. not conduct or sponsor, and a person is may elect to be subject to the provisions Kevin M. O’Neill, not required to respond to, a collection of Sections 55 through 65 of the Deputy Secretary. of information unless it displays a Investment Company Act (15 U.S.C. currently valid control number. [FR Doc. 2014–23576 Filed 10–2–14; 8:45 am] 80a–54 to 80a–64) by filing with the The public may view the background Commission a notification of election, if BILLING CODE 8011–01–P documentation for this information such company has: (1) A class of equity collection at the following Web site, securities registered under Section 12 of SECURITIES AND EXCHANGE www.reginfo.gov. Comments should be directed to: (i) Desk Officer for the the Securities Exchange Act of 1934 (15 COMMISSION U.S.C. 78a et seq.) (‘‘Exchange Act’’); or Securities and Exchange Commission, (2) filed a registration statement Submission for OMB Review; Office of Information and Regulatory pursuant to Section 12 of the Exchange Comment Request Affairs, Office of Management and Act for a class of equity securities. The Budget, Room 10102, New Executive Commission has adopted Form N–54A Upon Written Request, Copy Available Office Building, Washington, DC 20503, (17 CFR 274.53) as the form for From: Securities and Exchange or by sending an email to: notification of election to be regulated Commission, Office of Investor as business development companies. Education and Advocacy, 1 The estimated number of responses to rule 34b– The purpose of Form N–54A is to Washington, DC 20549–0213. 1 is composed of 13,378 responses filed with FINRA and 307 responses filed with the notify the Commission that the Extension: Commission in 2013. investment company making the Rule 34b–1, SEC File No. 270–305, OMB 2 13,685 responses × 2 hours per response = notification elects to be subject to Control No. 3235–0346. 27,370.

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[email protected]; and (ii) under certain conditions, would not Notice is hereby given that, pursuant Thomas Bayer, Chief Information lose its exclusion if it notifies the to the Paperwork Reduction Act of 1995 Officer, Securities and Exchange Commission on Form N–6F of its intent (‘‘PRA’’) (44 U.S.C. 3501 et seq.), the Commission, to make an election to be regulated as Securities and Exchange Commission c/o Remi Pavlik-Simon, 100 F Street a business development company. The (‘‘Commission’’) has submitted to the NE., Washington, DC 20549 or send an company only has to file a Form N–6F Office of Management and Budget email to: [email protected]. once. (‘‘OMB’’) a request for approval of Comments must be submitted to OMB The Commission estimates that on extension of the previously approved within 30 days of this notice. average approximately 15 companies collection of information provided for in Dated: September 29, 2014. file these notifications each year. Each Rule 17a–19 (17 CFR 240.17a–19) and Kevin M. O’Neill, of those companies need only make a Form X–17A–19 under the Securities Deputy Secretary. single filing of Form N–6F. The Exchange Act of 1934 (15 U.S.C. 78a et Commission further estimates that this [FR Doc. 2014–23573 Filed 10–2–14; 8:45 am] seq.). information collection imposes burden BILLING CODE 8011–01–P Rule 17a–19 requires every national of 0.5 hours, resulting in a total annual securities exchange and registered PRA burden of 7.5 hours. Based on the national securities association to file a estimated wage rate, the total cost to the SECURITIES AND EXCHANGE Form X–17A–19 with the Commission COMMISSION industry of the hour burden for complying with Form N–6F would be and the Securities Investor Protection Corporation (‘‘SIPC’’) within 5 business Submission for OMB Review; approximately $2,505. days of the initiation, suspension, or Comment Request The collection of information under Form N–6F is mandatory. The termination of any member and, when Upon Written Request, Copies Available information provided under the form is terminating the membership interest of From: Securities and Exchange not kept confidential. An agency may any member, to notify that member of Commission, Office of FOIA Services, not conduct or sponsor, and a person is its obligation to file financial reports as 100 F Street NE., Washington, DC not required to respond to, a collection required by Exchange Act Rule 17a– 20549–2736. of information unless it displays a 5(b).1 Extension: currently valid OMB control number. Commission staff anticipates that the Form N–6F, SEC File No. 270–185, OMB The public may view the background national securities exchanges and Control No. 3235–0238. documentation for this information registered national securities Notice is hereby given that, pursuant collection at the following Web site, associations collectively will make 800 to the Paperwork Reduction Act of 1995 www.reginfo.gov. Comments should be total filings annually pursuant to Rule (44 U.S.C. 3501 et seq.), the Securities directed to: (i) Desk Officer for the 17a–19 and that each filing will take and Exchange Commission Securities and Exchange Commission, approximately 15 minutes. The total (‘‘Commission’’) has submitted to the Office of Information and Regulatory reporting burden is estimated to be Office of Management and Budget a Affairs, Office of Management and approximately 200 total annual hours. request for extension of the previously Budget, Room 10102, New Executive An agency may not conduct or approved collection of information Office Building, Washington, DC 20503, sponsor, and a person is not required to discussed below. or by sending an email to: Shagufta_ respond to, a collection of information The title for the collection of [email protected]; and (ii) Thomas under the PRA unless it displays a information is ‘‘Form N–6F (17 CFR Bayer, Chief Information Officer, currently valid OMB control number. 274.15), Notice of Intent to Elect to be Securities and Exchange Commission, Subject to Sections 55 through 65 of the c/o Remi Pavlik-Simon, 100 F Street The public may view background Investment Company Act of 1940.’’ The NE., Washington, DC 20549 or send an documentation for this information purpose of Form N–6F is to notify the email to: [email protected]. collection at the following Web site: Commission of a company’s intent to Comments must be submitted to OMB www.reginfo.gov. Comments should be file a notification of election to become within 30 days of this notice. directed to: (i) Desk Officer for the subject to Sections 55 through 65 of the Dated: September 29, 2014. Securities and Exchange Commission, Investment Company Act of 1940 (15 Office of Information and Regulatory Kevin M. O’Neill, U.S.C. 80a–1 et seq.) (‘‘1940 Act’’). Affairs, Office of Management and Certain companies may have to make a Deputy Secretary. Budget, Room 10102, New Executive filing with the Commission before they [FR Doc. 2014–23575 Filed 10–2–14; 8:45 am] Office Building, Washington, DC 20503, are ready to elect to be regulated as a BILLING CODE 8011–01–P or by sending an email to: Shagufta_ business development company.1 A [email protected]; and (ii) Thomas company that is excluded from the Bayer, Director/Chief Information SECURITIES AND EXCHANGE definition of ‘‘investment company’’ by Officer, Securities and Exchange COMMISSION Section 3(c)(1) because it has fewer than Commission, c/o Remi Pavlik-Simon, one hundred shareholders and is not Submission for OMB Review; 100 F Street NE., Washington, DC _ making a public offering of its securities Comment Request 20549, or by sending an email to: PRA may lose such an exclusion solely [email protected]. Comments must be because it proposes to make a public Upon Written Request, Copies Available submitted to OMB within 30 days of offering of securities as a business From: Securities and Exchange this notice. development company. Such company, Commission, Office of Investor Dated: September 29, 2014. Education and Advocacy, 1 A company might not be prepared to elect to be Washington, DC 20549–0213. Kevin M. O’Neill, subject to Sections 55 through 65 of the 1940 Act Deputy Secretary. because its capital structure or management Extension: Rule 17a–19 and Form X–17A–19, [FR Doc. 2014–23570 Filed 10–2–14; 8:45 am] compensation plan is not yet in compliance with SEC File No. 270–148, OMB Control No. the requirements of those sections. 3235–0133. BILLING CODE 8011–01–P

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SECURITIES AND EXCHANGE an investment company. Evergreen eUnits(TM) 2 Year U.S. Market COMMISSION Variable Annuity Trust transferred its Participation Trust: Upside to Cap/ Buffered Downside [File No. 811– [Release No. IC–31267] asset to corresponding series of Wells Fargo Variable Trust and on July 16, 22348] Notice of Applications for 2010, made distributions to its eUnits(TM) 2 Year U.S. Market Deregistration Under Section 8(f) of the shareholders based on net asset value. Participation Trust 2: Upside to Cap/ Investment Company Act of 1940 The remaining applicants transferred Buffered Downside [File No. 811– their assets to corresponding series of 22663] September 26, 2014. Wells Fargo Funds Trust, and by July The following is a notice of Summary: Each applicant, a closed- 16, 2010, made distributions to their end investment company, seeks an applications for deregistration under shareholders based on net asset value. section 8(f) of the Investment Company order declaring that it has ceased to be Total expenses of $21,699,000 incurred Act of 1940 for the month of September an investment company. On January 28, in connection with the reorganizations 2014. A copy of each application may be 2014, and May 23, 2014, respectively, were paid by Wells Fargo Funds obtained via the Commission’s Web site applicants made liquidating by searching for the file number, or for Management, LLC, investment adviser distributions to their shareholders, an applicant using the Company name to the acquiring funds, Evergreen based on net asset value. Each applicant box, at http://www.sec.gov/search/ Investment Management Company LLC, liquidated in accordance with its terms search.htm or by calling (202) 551– applicants’ investment adviser, or one of and incurred no expenses in connection 8090. An order granting each their affiliates. with the liquidations. application will be issued unless the Filing Dates: The applications were Filing Date: The applications were SEC orders a hearing. Interested persons filed on August 19, 2014, and amended filed on September 17, 2014. may request a hearing on any on September 5, 2014. Applicants’ Address: Two application by writing to the SEC’s International Place, Boston, MA 02110. Applicants’ Address: 200 Berkeley St., Secretary at the address below and Boston, MA 02116. Aspiration Institutional Funds [File No. serving the relevant applicant with a 811–22944] copy of the request, personally or by PHL Variable VA Account 1 [File No. Summary: Applicant seeks an order mail. Hearing requests should be 811–22326] received by the SEC by 5:30 p.m. on declaring that it has ceased to be an October 21, 2014, and should be Summary: Applicant, a unit investment company. Applicant has accompanied by proof of service on the investment trust, seeks an order never made a public offering of its applicant, in the form of an affidavit or, declaring that it has ceased to be an securities and does not propose to make for lawyers, a certificate of service. investment company. Applicant has a public offering or engage in business Hearing requests should state the nature never made a public offering of its of any kind. Filing Date: The application was filed of the writer’s interest, the reason for the securities and does not propose to make request, and the issues contested. on September 16, 2014. a public offering or engage in business Applicant’s Address: 188 West Persons who wish to be notified of a of any kind. Northern Lights Blvd., Suite 920, hearing may request notification by Filing Date: The application was filed Anchorage, AK 99503. writing to the Secretary, U.S. Securities on August 14, 2014. and Exchange Commission, 100 F Street First Defined Portfolio Fund, LLC [File NE., Washington, DC 20549–1090. Applicant’s Address: PHL Variable No. 811–9235] Insurance Company, One American FOR FURTHER INFORMATION CONTACT: Summary: Applicant seeks an order Row, PO Box 5056, Hartford, CT 06102– Diane L. Titus at (202) 551–6810, SEC, declaring that it has ceased to be an 5056. Division of Investment Management, investment company. On April 28, Chief Counsel’s Office, 100 F Street NE., City National Rochdale Alternative 2014, applicant made a liquidating Washington, DC 20549–8010. Total Return Fund LLC [File No. 811– distribution to its shareholders, based Evergreen Variable Annuity Trust— 22503] on net asset value. Expenses of $15,000 [File No. 811–8716] incurred in connection with the Summary: Applicant, a closed-end liquidation were paid by applicant or Evergreen Money Market Trust—[File investment company, seeks an order First Trust Advisors L.P., applicant’s No. 811–5300] declaring that it has ceased to be an investment adviser. Evergreen Select Equity Trust—[File investment company. Applicant Filing Dates: The application was No. 811–8363] transferred its assets to a series of City filed on July 30, 2014, and amended on Evergreen Select Fixed Income Trust— National Rochdale Funds, and on May September 25, 2014. [File No. 811–8365] 30, 2014, mad a final distribution to its Applicant’s Address: 120 East Liberty Evergreen Municipal Trust—[File No. distributed its assets to shareholders Dr., Suite 400, Wheaton, IL 60187. 811–8367] based on net asset value. Expenses of Morgan Stanley Focus Growth Fund Evergreen Select Money Market Trust— $435,740 incurred in connection with [File No. 811–2978] [File No. 811–8405] the reorganization will be paid by City Summary: Applicant seeks an order Evergreen Equity Trust—[File No. 811– National Rochdale, LLC, applicant’s declaring that it has ceased to be an 8413] investment adviser. investment company. Applicant Evergreen Fixed Income Trust—[File Filing Date: The application was filed transferred its assets to a series of No. 811–8415] on September 2, 2014. Morgan Stanley Institutional Fund, Inc., Evergreen International Trust—[File Applicant’s Address: 570 Lexington and on April 7, 2014, made a No. 811–8553] Ave., New York, NY 10022–6837. distribution to its shareholders based on Summary: Each applicant seeks an net asset value. Expenses of order declaring that it has ceased to be approximately $930,684 incurred in

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connection with the reorganization were II. Self-Regulatory Organization’s September 2013,5 until December 2013,6 paid by applicant and Morgan Stanley Statement of the Purpose of, and until March 2014,7 and again until Investment Management, applicant’s Statutory Basis for, the Proposed Rule September 1, 2014.8 The Exchange investment adviser. Change made a number of improvements Filing Date: The application was filed intended to improve the performance of In its filing with the Commission, the the new system. on September 12, 2014. Exchange included statements Implementation began on March 7, Applicant’s Address: c/o Morgan concerning the purpose of and basis for 2014. In its most recent filing delaying Stanley Investment Management Inc., the proposed rule change and discussed implementation,9 the Exchange stated 522 Fifth Ave., New York, NY 10036. any comments it received on the that the implementation period would For the Commission, by the Division of proposed rule change. The text of these be up to September 1, 2014, during Investment Management, pursuant to statements may be examined at the which the new FBMS enhancements delegated authority. places specified in Item IV below. The and related rules would operate along with the existing FBMS and rules.10 At Kevin M. O’Neill, Exchange has prepared summaries, set forth in sections A, B, and C below, of this time, the Exchange needs additional Deputy Secretary. time to complete the implementation [FR Doc. 2014–23566 Filed 10–2–14; 8:45 am] the most significant aspects of such statements. because of technology issues with the BILLING CODE 8011–01–P new system. The new FBMS is available A. Self-Regulatory Organization’s to all users (Floor Brokers) and in all Statement of the Purpose of, and options. Nevertheless, the Exchange SECURITIES AND EXCHANGE Statutory Basis for, the Proposed Rule believes that the Floor Brokers need COMMISSION Change additional time to familiarize themselves with the new features of [Release No. 34–73246; File No. SR–Phlx– 1. Purpose FBMS, based on that ongoing 2014–59] The purpose of the proposal is to experience, offer input regarding system performance, and provide the Exchange extend the rollout of the Exchange’s Self-Regulatory Organizations; with the opportunity to address enhancements to the Options Floor NASDAQ OMX PHLX LLC; Notice of performance improvements. Given some Broker Management System (‘‘FBMS’’). Filing and Immediate Effectiveness of technology issues that the Exchange has Today, FBMS enables Floor Brokers Proposed Rule Change To Delay the encountered during the implementation Implementation Period of the New and/or their employees to enter, route, period, the delay is needed to allow Options Floor Broker Management and report transactions stemming from Floor Brokers additional time to adapt System Until November 3, 2014 options orders received on the to the new system as the Exchange Exchange. FBMS also establishes an works to improve the performance of September 29, 2014. electronic audit trail for options orders the new system. As the performance Pursuant to Section 19(b)(1) of the represented by Floor Brokers on the issues are resolved, the delay will allow Securities Exchange Act of 1934 Exchange. Floor Brokers can use FBMS the Floor Brokers to migrate their (‘‘Act’’) 1, and Rule 19b–4 thereunder,2 to submit orders to Phlx XL, rather than business in a prudent manner. The notice is hereby given that on executing the orders in the trading delay is not as a result of major September 19, 2014, NASDAQ OMX crowd. technology changes from the original PHLX LLC (‘‘Phlx’’ or ‘‘Exchange’’) filed With the new FBMS, all options proposal and no rule changes are being with the Securities and Exchange transactions on the Exchange involving made; rather, the Exchange continues to Commission (‘‘SEC’’ or ‘‘Commission’’) at least one Floor Broker are required to work to, generally, make the system the proposed rule change as described be executed through FBMS. In more user-friendly and provide more useful interfaces for the ultimate user, in Items I and II below, which Items connection with order execution, the Exchange allows FBMS to execute two- the Floor Broker. have been prepared by the Exchange. Accordingly, the Exchange seeks an sided orders entered by Floor Brokers, The Commission is publishing this additional two month period (until notice to solicit comments on the including multi-leg orders up to 15 legs, November 3, 2014) to be able to proposed rule change from interested after the Floor Broker has represented continue the implementation rollout; persons. the orders in the trading crowd. FBMS the Exchange announced the specific also provides Floor Brokers with an I. Self-Regulatory Organization’s date on which the trial period will end enhanced functionality called the Statement of the Terms of the Substance and the old FBMS will no longer be complex calculator that calculates and of the Proposed Rule Change available in advance through an Options displays a suggested price of each The Exchange proposes to extend the individual component of a multi-leg 5 Securities Exchange Act Release No. 70141 implementation rollout of its new order, up to 15 legs, submitted on a net (August 8, 2013), 78 FR 49565 (August 14, 2013) Options Floor Broker Management debit or credit basis. (SR–Phlx–2013–83). 6 Securities Exchange Act Release No. 70629 System. The Exchange received approval to (October 8, 2013), 78 FR 62852 (October 22, 2013) The text of the proposed rule change implement the FBMS enhancements as (SR–Phlx–2013–100). 7 is available on the Exchange’s Web site of June 1, 2013,3 and delayed Securities Exchange Act Release No. 71212 4 (December 31, 2013), 79 FR 888 (January 7, 2014) at http://nasdaqomxphlx.cchwall implementation until July 2013, until (SR–Phlx–2013–129). street.com/, at the principal office of the 8 Securities Exchange Act Release No. 72135 (May Exchange, and at the Commission’s 3 Securities Exchange Act Release No. 69471 9, 2014), 79 FR 27966 (May 15, 2014) (SR–Phlx– Public Reference Room. (April 29, 2013), 78 FR 26096 (May 3, 2013) (SR– 2014–33). Phlx–2013–09). 9 Id. 4 Securities Exchange Act Release No. 69811 10 In the original filing, the Exchange stated its 1 15 U.S.C. 78s(b)(1). (June 20, 2013), 78 FR 38422 (June 26, 2013) (SR– intent to implement these enhancements with a 2 17 CFR 240.19b–4. Phlx–2013–67). trial period of two to four weeks. Id.

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Trader Alert. During the additional time the public outcry system is maintained. raise any novel regulatory issues. The period, the Exchange will continue to Consistent with what the Comment Commission notes that the encourage Floor Brokers to use the new Letter requests, the Exchange is filing implementation period was scheduled FBMS in order to help them become this delay of implementation to extend to expire on September 1, 2014, when more familiar with the new features of the implementation rollout of its new the existing FMBS would cease to FBMS. FBMS for an additional two month operate and the new FBMS would be period. The Exchange has provided fully implemented. However, Phlx has 2. Statutory Basis written notice on numerous occasions.14 indicated that it needs additional time The Exchange believes that its With respect to preserving the open to continue the implementation rollout proposal is consistent with Section 6(b) outcry system, the Exchange notes that of the new FMBS. Therefore, the of the Act 11 in general, and furthers the under the new FBMS orders will Commission designates the proposal objectives of Section 6(b)(5) of the Act 12 continue to be represented in the operative upon filing.19 in particular, in that it is designed to trading crowd; order exposure has not At any time within 60 days of the promote just and equitable principles of been eliminated. The Exchange is filing of the proposed rule change, the trade, to remove impediments to and merely modernizing how orders are Commission summarily may perfect the mechanism of a free and executed and reported to support the temporarily suspend such rule change if open market and a national market maintenance of an accurate audit trail. it appears to the Commission that such system, and, in general, to protect action is: (i) Necessary or appropriate in investors and the public interest, by III. Date of Effectiveness of the the public interest; (ii) for the protection enhancing FBMS to make the Proposed Rule Change and Timing for of investors; or (iii) otherwise in Exchange’s markets more efficient, to Commission Action furtherance of the purposes of the Act.20 the benefit of the investing public. Because the foregoing proposed rule If the Commission takes such action, the Although the Exchange needs additional change does not: (i) Significantly affect Commission shall institute proceedings time to finalize the implementation the protection of investors or the public to determine whether the proposed rule rollout, this time period is expected to interest; (ii) impose any significant change should be approved or be limited, depending on user input, burden on competition; and (iii) become disapproved.21 and will involve advance notice to the operative for 30 days from the date on Exchange membership. which it was filed, or such shorter time IV. Solicitation of Comments as the Commission may designate, it has Interested persons are invited to B. Self-Regulatory Organization’s become effective pursuant to Section submit written data, views, and Statement on Burden on Competition 19(b)(3)(A) of the Act 15 and arguments concerning the foregoing, The Exchange does not believe that subparagraph (f)(6) of Rule 19b–4 including whether the proposed rule the proposed rule change will impose thereunder.16 change is consistent with the Act. any burden on competition not A proposed rule change filed under Comments may be submitted by any of necessary or appropriate in furtherance Rule 19b–4(f)(6) normally does not the following methods: of the purposes of the Act. The become operative for 30 days after the Electronic Comments Exchange continues to believe, as it date of filing.17 However, Rule 19b– stated when proposing these 4(f)(6)(iii) permits the Commission to • Use the Commission’s Internet enhancements, that these enhancements designate a shorter time if such action comment form (http://www.sec.gov/ to FBMS should result in the Exchange’s is consistent with the protection of rules/sro.shtml); or • trading floor operating in a more investors and the public interest.18 The Send an email to rule-comments@ efficient way, which should help it Exchange has requested that the sec.gov. Please include File Number SR– compete with other floor-based Commission waive the 30-day operative Phlx–2014–59 on the subject line. exchanges and help the Exchange’s delay so that the Exchange can Paper Comments Floor Brokers compete with floor implement the enhancements once they • brokers on other options exchanges. are ready from a technology perspective. Send paper comments in triplicate The Commission believes that the to Secretary, Securities and Exchange C. Self-Regulatory Organization’s waiver of the 30-day operative delay is Commission, 100 F Street NE., Statement on Comments on the consistent with the protection of Washington, DC 20549–1090. Proposed Rule Change Received From investors and the public interest as it All submissions should refer to File Members, Participants, or Others will clarify when the delayed Number SR–Phlx–2014–59. This file A written comment was received in implementation of the FBMS will be number should be included on the support of the proposal.13 The Exchange effective and operative immediately. In subject line if email is used. To help the did not solicit comments. The Comment addition, because the proposal only Commission process and review your Letter requested the Commission and delays the implementation date of the comments more efficiently, please use Phlx postpone the implementation FBMS and does not make any additional only one method. The Commission will rollout of the new FBMS from changes to the FBMS itself, it does not post all comments on the Commission’s September 1, 2014 to a later date. The Internet Web site (http://www.sec.gov/ Comment Letter alleges that the Floor 14 See e.g. Options Trader Alerts 2014–26 and rules/sro.shtml). Copies of the Brokers did not have proper notice of 2014–5. submission, all subsequent the end of the implementation period. 15 15 U.S.C. 78s(b)(3)(A). amendments, all written statements Also, the Comment Letter requests that 16 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– with respect to the proposed rule 4(f)(6) requires a self-regulatory organization to give the new FBMS be postponed to ensure the Commission written notice of its intent to file change that are filed with the the proposed rule change at least five business days 11 15 U.S.C. 78f(b). prior to the date of filing of the proposed rule 19 For purposes only of waiving the 30-day 12 15 U.S.C. 78f(b)(5). change, or such shorter time as designated by the operative delay, the Commission has considered the 13 See letter from various Phlx Floor Brokers to Commission. The Exchange has satisfied this proposed rule’s impact on efficiency, competition, Mary Jo White, Chairwoman of the Securities and requirement. and capital formation. See 15 U.S.C. 78c(f). Exchange Commission, dated August 28, 2014 17 17 CFR 240.19b–4(f)(6)(iii). 20 15 U.S.C. 78s(b)(3)(C). (‘‘Comment Letter’’). 18 Id. 21 Id.

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Commission, and all written (together, ‘‘Codes’’) to increase certain surveys of organizations and individuals communications relating to the arbitration filing fees, member recruited to be FINRA arbitrators, as proposed rule change between the surcharges and process fees, and hearing well as reports from arbitrators at focus Commission and any person, other than session fees for the primary purpose of groups, and other arbitrator comments those that may be withheld from the increasing arbitrator honoraria. The indicate a ‘‘heightened sensitivity to the public in accordance with the proposed rule change was published for comparatively low honoraria paid by provisions of 5 U.S.C. 552, will be comment in the Federal Register on July FINRA.’’ 9 available for Web site viewing and 2, 2014.3 The Commission received Although FINRA acknowledged that printing in the Commission’s Public eight comment letters on the proposal.4 there are non-monetary benefits to Reference Room, 100 F Street NE., On August 5, 2014, FINRA granted the serving as an arbitrator, FINRA still Washington, DC 20549, on official Commission an extension of time, until believes that ‘‘the current honoraria business days between the hours of September 30, 2014, to act on the level is a barrier to recruiting.’’ 10 FINRA 10:00 a.m. and 3:00 p.m. Copies of such proposal.5 FINRA responded to the also reported that ‘‘arbitrators have filing also will be available for comment letters on September 18, regularly cited the honoraria level when inspection and copying at the principal 2014.6 This order approves the rule leaving the roster, particularly when offices of the Exchange. All comments change as proposed. they are asked to take a new training received will be posted without change; course or complete a survey or the Commission does not edit personal II. Description of the Proposed Rule disclosure statement.’’ 11 Accordingly, identifying information from Change FINRA believes that increasing submissions. You should submit only A. Background honoraria is needed to ‘‘retain a roster of high-quality arbitrators and attract information that you wish to make As stated in the Notice, FINRA is qualified individuals who possess the available publicly. All submissions proposing to amend the Codes to skills necessary to manage arbitration should refer to File Number SR–Phlx– increase certain arbitration filing fees, cases and consider thoroughly all 2014–59, and should be submitted on or member surcharges and process fees, arbitration issues presented, which are before October 24, 2014. and hearing session fees for the primary essential elements for FINRA to meet its For the Commission, by the Division of purpose of increasing arbitrator regulatory objective of protecting the Trading and Markets, pursuant to delegated honoraria.7 In support of the proposal, authority.22 investing public.’’ 12 FINRA stated that it has ‘‘received To fund these honoraria increases, Kevin M. O’Neill, numerous complaints in recent years Deputy Secretary. FINRA is proposing to increase certain from its arbitrators regarding the fees and surcharges assessed in the [FR Doc. 2014–23569 Filed 10–2–14; 8:45 am] honoraria paid to them for their arbitration forum. Specifically, FINRA’s 8 BILLING CODE 8011–01–P service.’’ FINRA further noted that proposal would amend Rules 12214 (Payment of Arbitrators), 12800 3 See Securities Exchange Act Release No. 72479 (Simplified Arbitration), 12900 (Fees SECURITIES AND EXCHANGE (Jun. 26, 2014), 79 FR 37786 (Jul. 2, 2014) COMMISSION (‘‘Notice’’). Due When a Claim is Filed), 12901 4 See Letters from Steven B. Caruso, Esq., Maddox (Member Surcharge), 12902 (Hearing [Release No. 34–73245; File No. SR–FINRA– Hargett & Caruso, P.C., dated July 1, 2014 (‘‘Caruso Session Fees, and Other Costs and 2014–026] Letter’’); Ryan K. Bakhtiari, Aidikoff, Uhl & Expenses), and 12903 (Process Fees Paid Bakhtiari, dated July 2, 2014 (‘‘Bakhtiari Letter’’); Philip M. Aidikoff, Esq., Aidikoff, Uhl & Bakhtiari, by Members) of the Customer Code. The Self-Regulatory Organizations; proposed rule change would also amend Financial Industry Regulatory dated July 2, 2014 (‘‘Aidikoff Letter’’); Jason Doss, President, Public Investors Arbitration Bar Rules 13214 (Payment of Arbitrators), Authority, Inc.; Order Approving Association (‘‘PIBA’’), dated July 22, 2014 (‘‘PIABA 13800 (Simplified Arbitration), 13900 Proposed Rule Change To Amend the Letter’’); Ellen Liang, Student Intern, Elissa (Fees Due When a Claim is Filed), 13901 Code of Arbitration Procedure for Germaine, Supervising Attorney, and Jill Gross, Director, Pace Investor Rights Clinic (‘‘PIRC’’), Pace (Member Surcharge), 13902 (Hearing Customer Disputes and the Code of University School of Law, dated July 23, 2014 Session Fees, and Other Costs and Arbitration Procedure for Industry (‘‘PIRC Letter’’); David T. Bellaire, Esq., Executive Expenses), and 13903 (Process Fees Paid Disputes To Increase Arbitrator Vice President and General Counsel, Financial by Members) of the Industry Code.13 Honoraria and Increase Certain Services Institute (‘‘FSI’’), dated July 23, 2014 (‘‘FSI Letter’’); Andrea Seidt, Ohio Securities In general, the proposal would Arbitration Fees and Surcharges Commissioner and President, North American increase the member surcharges and Securities Administrators Association (‘‘NASAA’’), September 29, 2014. dated July 23, 2014 (‘‘NASAA Letter’’); and Michael forums set their own rates and charge significantly I. Introduction J. Quarequio, Esq., Law Office of Michael J. more than FINRA pays). Quarequio, P.A., dated July 23, 2014 (‘‘Quarequio 9 Id. Letter’’). On June 13, 2014, the Financial 10 Id. (noting the non-monetary benefits to serving 5 Industry Regulatory Authority, Inc. See Letter from Mignon McLemore, Assistant as a FINRA arbitrator include ‘‘learning the skills (‘‘FINRA’’) filed with the Securities and Chief Counsel, FINRA Dispute Resolution, Inc., to necessary to be an effective commercial arbitrator, Lourdes Gonzalez, Assistant Chief Counsel, Sales Exchange Commission (‘‘Commission’’), serving the public, or giving back to one’s Practices, Division of Trading and Markets, community by applying professional knowledge pursuant to Section 19(b)(1) of the Securities and Exchange Commission, dated August gained as an arbitrator’’). Securities Exchange Act of 1934 5, 2014. 11 Id. (stating that ‘‘[t]hese extra requests are (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a 6 See Letter from Mignon McLemore, Assistant viewed as the ‘last straw’ that prevents good proposed rule change to amend FINRA’s Chief Counsel, FINRA Dispute Resolution, Inc., to arbitrators from remaining on the roster at the Brent J. Fields, Secretary, Securities and Exchange current honoraria rate’’). Code of Arbitration Procedure for Commission, dated September 18, 2014 (‘‘FINRA 12 Id. Customer Disputes (‘‘Customer Code’’) Response Letter’’). 13 See id. at 37786–87. The text of the proposed and the Code of Arbitration Procedure 7 See Notice, 79 FR at 37786. See also id. at 37787 rule change is available at the principal office of for Industry Disputes (‘‘Industry Code’’) n. 3 (noting FINRA’s last increase to arbitrator FINRA, on FINRA’s Web site at http:// honoraria and citing Securities Exchange Act Rel. www.finra.org, and at the Commission’s Public No. 41056 (Feb. 16, 1999), 64 FR 10041 (Mar. 1, Reference Room. For ease of reference, this Order 22 17 CFR 200.30–3(a)(12). 1999) (File No. SR–NASD–97–79)). generally refers only to rules in the Customer Code. 1 15 U.S.C. 78s(b)(1). 8 Notice, 79 FR at 377887 (stating that FINRA is However, the changes and discussion would also 2 17 CFR 240.19b–4. also aware that arbitrators in private arbitration apply to the same rules of the Industry Code.

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process fees for claims larger than the services they provide to FINRA’s contested subpoena requests decided by $250,000 14 as well as filing fees for dispute resolution forum.17 Currently, an arbitrator or panel during the case.24 investors, associated persons, or firms under Rule 12214(a), an arbitrator Finally, under Rule 12800, when a bringing claims of more than $500,000 receives $200 for each hearing session claimant 25 files a claim in which the and hearing session fees for claims of 18 in which the arbitrator participates. amount in dispute, excluding interest more than $500,000.15 FINRA FINRA noted that ‘‘[c]hairpersons are and expenses (‘‘claim amount’’) is recognizes that increasing honoraria to often the arbitrators on FINRA’s rosters $50,000 or less, one arbitrator decides market rates would impose a significant with the most experience who have the case based solely on the documents burden on forum users and, therefore, completed chairperson training.’’ 19 In believes that ‘‘the proposed rule change recognition of a chairperson’s increased provided by the parties (i.e., no hearings 26 is the best option to narrow the gap experience and extra responsibilities are held). FINRA refers to these types without unduly increasing costs to during a hearing,20 FINRA currently of cases as ‘‘simplified arbitration.’’ The forum users.’’ 16 pays chairpersons an additional $75 per arbitrator who decides a simplified The following sections outline each of hearing day.21 arbitration case currently receives $125 FINRA’s proposed rule change Arbitrators also receive honoraria per case.27 amendments. when they decide contested motions Under the proposed rule change, B. Proposed Arbitrator Honoraria requesting the issuance of a subpoena FINRA would amend Rules 12214 and Increases without a hearing (‘‘contested subpoena 12800 of the Customer Code to increase requests’’).22 FINRA assesses a $200 fee the arbitrator honoraria.28 Table 1 Proposed Amendments to FINRA Rules to the parties for each arbitrator who (below) illustrates the proposed 12214 and 13214 (Payment to participates in deciding the contested Arbitrators) and FINRA Rules 12800 and increases and the percentage changes subpoena request to cover the cost of the from the current rates. 13800 (Simplified Arbitration) honoraria.23 As FINRA explained, this Arbitrator honoraria are the payments amount of honoraria is paid on a per that FINRA makes to its arbitrators for case basis, regardless of the number of

PROPOSED ARBITRATOR HONORARIA INCREASES—TABLE 1

Percentage Arbitrator honoraria Current Proposed change

Per arbitrator, per hearing session ...... $200 $300 50 Chairpersons (per day of hearing) ...... 75 125 67 Contested Subpoena Requests ...... 200 250 25 Simplified Arbitration Cases (flat rate) ...... 125 350 180

Specifically, FINRA is proposing to Rule 12800(f) would be amended to increase certain filing fees, member amend Rule 12214(a) to increase the increase the honoraria for simplified surcharges and process fees, and the payment to each arbitrator for each arbitration cases, which is a flat per case hearing session fees assessed under the hearing session in which the arbitrator payment, from $125 to $350. FINRA Codes as illustrated in the tables participates from $200 to $300 per stated that ‘‘[a]lthough no hearings are below.30 FINRA stated that it ‘‘believes hearing session. The rule would also be conducted in simplified arbitrations, the proposed fee increases would amended to increase the additional these cases can be time-consuming, and, generate sufficient revenue to offset the amount that chairpersons receive from in FINRA’s view, the current honoraria proposed increases in the arbitrator $75 to $125 per day of hearings. Rule level does not reflect fairly the honoraria as described [above] without 12214(d) would be amended to increase arbitrator’s time and effort to render a placing an undue burden on the public 29 the honoraria that arbitrators receive decision.’’ customer.’’ 31 when they decide contested subpoena To fund these increases in arbitrator requests from $200 to $250. Finally, honoraria, FINRA is proposing to

14 See id. at 37787 n. 4 (noting, however, that the at least two arbitrations through award in which 25 See id. (explaining that FINRA Rules 12100(e) proposed rule change would also increase the hearings were held’’). and 13100(e) define the term ‘‘claimant’’ as a party member surcharge for the $10,000.01 to $25,000 20 See id. n. 12 (FINRA notes that, for example, that files the statement of claim that initiates an tier). during a typical arbitration, the chairperson decides arbitration). 15 See id. discovery motions and conducts the initial 26 FINRA noted that it recently raised the claim 16 Id. (explaining that, for example, ‘‘increasing prehearing conference(s)) (citing Rules 12500(c), amount limit for simplified arbitration from $25,000 honoraria to market rates could require a greater 12503(d)(3), 13500(c), and 13503(d)(3)). to $50,000. See id. at 37794 n. 57 (citing Securities increase in arbitration filing fees, which would 21 See id. at 37787–88. See also id. at 37788 Exchange Act Rel. No. 66913 (May 3, 2012), 77 FR increase the costs of customers, associated persons, (explaining that a ‘‘hearing’’ means the hearing on 27262 (May 9, 2012) (File No. SR–FINRA–2012– and firms’’). the merits and that the chairperson receives the 012)). FINRA also stated that ‘‘[t]ypically, as the 17 See id. additional honoraria for each day he or she serves claim amount increases, arbitrators encounter 18 See id. n. 10 (noting that the term ‘‘hearing as chair at a hearing, regardless of the number of issues that are more complicated to resolve, and, session’’ typically means ‘‘any meeting between the hearing sessions per day). thus, require more of their time.’’ Id. at 37794. 27 parties and arbitrator(s) of four hours or less, 22 See Notice, 79 FR at 37788 (citing Rules See Notice, 79 FR at 37788. including a hearing or a prehearing conference’’). 12214(d) and 13214(d)). 28 See id. at 37794. See also id. at 37787 (noting that a typical day has 23 See id. 29 Id. two hearing sessions). 24 See id. (explaining that ‘‘[i]f an arbitrator or the 30 See, e.g., id. at 37790 (noting that although 19 Notice, 79 FR at 37787 (noting that ‘‘to qualify panel decides a contested subpoena request, the FINRA refers to rules in the Customer Code, the as a chairperson, an arbitrator must have served on arbitrator or panel allocates the cost of the changes and discussion below also apply to the at least three arbitrations through award in which honoraria to the parties in the award’’) (citing Rules same rules of the Industry Code). hearings were held, or be a lawyer who served on 12214(d)(3) and 13214(d)(3)). 31 Id.

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C. Proposed Increases to Certain Fees filing fee to initiate an arbitration. The members, or members bringing claims of and Surcharges filing fee consists of two parts: (1) A more than $500,000.33 Tables 2 and 3 non-refundable fee, which FINRA keeps 1. Proposed Amendments to FINRA (below) show the current filing fee, when a claim is filed, and (2) a deposit, Rules 12900 and 13900 (Fees Due When proposed filing fee, dollar and which FINRA may return in whole or in A Claim is Filed) percentage changes, and the non- part to the party that filed the claim in refundable and partial refund Currently, Rules 12900(a) and certain circumstances.32 breakdown of each fee.34 13900(a) require a customer, associated Under the proposed rule change, person, other non-member, or member FINRA would amend Rules 12900 and (a) Filing Fees Paid by Customers, who files a claim, counterclaim, cross 13900 to increase the filing fees for Associated Persons, or Other Non- claim, or third party claim to pay a investors, associated persons, other non- Members

PROPOSED FILING FEES FOR CUSTOMERS, ASSOCIATED PERSONS OR OTHER NON-MEMBER CLAIMANTS—TABLE 2

Non-Refund- Amount of claim (exclusive of interest Current claim Proposed Change in Percent able filing fee Partial refund and expenses) filing fee claim filing fee filing fee change with proposed with proposed changes changes

$.01–$1000 ...... $50 $50 $0 0 $25 $25 1,000.01–2,500 ...... 75 75 0 0 25 50 2500.01–5,000 ...... 175 175 0 0 50 125 5,000.01–10,000 ...... 325 325 0 0 75 250 10,000.01–25,000 ...... 425 425 0 0 125 300 25,000.01–50,000 ...... 600 600 0 0 150 450 50,000.01–100,000 ...... 975 975 0 0 225 750 100,000.01–500,000 ...... 1,425 1,425 0 0 300 1,125 500,000.01–1,000,000 ...... 1,575 1,725 150 10 [375] 425 [1,200] 1,300 1,000,000.01–5,000,000 ...... 1,800 2,000 200 11 600 [1,200] 1,400 Over $5,000,000 ...... 1,800 2,250 450 25 [600] 750 [1,200] 1,500 Non-Monetary/Not Specified ...... 1,250 1,575 325 26 [250] 375 [1,000] 1,200

As reflected in Table 2, under the a filing fee of $2,000. The second new increases in arbitrator honoraria. proposed rule change, FINRA would tier would begin at over $5,000,000, Furthermore, FINRA believes potential increase the filing fees for claim with a filing fee of $2,250.36 impact of the proposed increased filing amounts beginning at the $500,000.01 to In addition, the proposed rule change fee would be mitigated by, among other $1,000,000 tier, so that the fee increases would increase the unspecified filing things, (1) FINRA allocating most of the impact only those claimants with larger fee by $325. FINRA believes the increases to the refundable portion of claims.35 unspecified claim fees should fall in the the filing fee; 38 and (2) the ability of The proposed rule change would also middle of the claim amount tiers for arbitrators to order a respondent to create two new tiers, at the upper level, each fee type, where a majority of the reimburse all or part of any filing fee 37 to spread the cost increases among specified claims are clustered. paid in the award.39 larger claims. The first new tier of As stated above, FINRA believes that $1,000,000.01 to $5,000,000 would have these increases would help fund the (b) Filing Fees Paid by Members

FILING FEES FOR MEMBER CLAIMANT—TABLE 3

Partial refund Amount of claim (exclusive of interest Current claim Proposed Change in Percent Non-refund- with proposed and expenses) filing fee claim filing fee filing fee change able filing fee changes

$.01–$1000 ...... $225 $225 $0 0 $200 $25 1,000.01–2,500 ...... 350 350 0 0 300 50 2500.01–5,000 ...... 525 525 0 0 400 125 5,000.01–10,000 ...... 750 750 0 0 500 250 10,000.01–25,000 ...... 1,050 1,050 0 0 750 300 25,000.01–50,000 ...... 1,450 1,450 0 0 1,000 450 50,000.01–100,000 ...... 1,750 1,750 0 0 1,000 750 100,000.01–500,000 ...... 2,125 2,125 0 0 1,000 1,125 500,000.01–1,000,000 ...... 2,450 2,550 100 4 1,250 [1,200] 1,300 1,000,000.01–5,000,000 ...... 3,200 3,400 200 6 2,000 [1,200] 1,400 Over $5,000,000 ...... 3,700 4,000 300 8 2,500 [1,200] 1,500 Non-Monetary/Not Specified ...... 1,500 1,700 200 13 500 [1,000] 1,200

32 See id. at 37788 (providing examples of when 34 See id. at 37791–92 (discussing ‘‘Filing Fee 37 See id. fees can be refunded and citing the FINRA rules Increases’’). 38 See id. See also id. n. 51. governing the return of those, including Rules 35 See id. 39 See Notice, 79 FR at 37792 (citing Rules 12902(b)–(d) and 13902(b)–(d)). 36 See id. at 37792. 12900(d) and 13900(d)). 33 See id. at 37791.

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As reflected in Table 3, the proposed be assessed against each member that: counterclaim, cross claim or third party rule change would also increase the (1) Files a claim, counterclaim, cross claim. FINRA noted that the member filing fee for members at the highest claim, or third party claim under the surcharge is the responsibility of the claim amount tiers, as well as at the Codes; (2) is named as a respondent in member party and cannot be allocated unspecified claim tier. For each of the a claim, counterclaim, cross claim, or to any other party (‘‘non-allocable’’).41 above increases, FINRA stated that it is third party claim filed and served under The proposal would amend Rules the Codes; or (3) employed, at the time proposing to add the increased amount 12901 and 13901 to increase the the dispute arose, an associated person to the refundable portion of the filing member surcharges primarily for claim fee, explaining that ‘‘this part of the who is named as a respondent in a amounts larger than $250,000. The filing fee, which is linked closely to claim, counterclaim, cross claim, or proposal would also make a technical FINRA’s costs to administer arbitration third party claim filed and served under change to the title of the tiers in the cases, particularly hearing sessions, the Codes. FINRA explained that ‘‘Member Surcharge’’ charts from could be avoided if the parties agree to member surcharges are intended to ‘‘Amount in Dispute’’ to ‘‘Amount of settle.’’ 40 allocate the costs of administering the arbitration case to the brokerage firms Claim,’’ so that the title describing the 2. Proposed Amendments to FINRA that are involved in those cases. Thus, claim amounts in all of the fee charts in 42 Rules 12901 and 13901 (Member each member is assessed a member the Codes would be consistent. Surcharge) surcharge, based on the aggregate claim Table 4 (below) illustrates the current Currently, FINRA Rules 12901(a) and amount, when it is brought into the member surcharges, the proposed 13901(a) provide that a surcharge will case, whether through a claim, surcharge, and percentage increases.

MEMBER SURCHARGE SCHEDULE—TABLE 4

Current Proposed Percentage Amount [in dispute] of claim (exclusive of interest and expenses) surcharge surcharge Change change

$.01–$2,500 ...... $150 $150 $0 0 2,500.01–5,000 ...... 200 150 (50 ) (25 ) 5,000.01–10,000 ...... 325 325 0 0 10,000.01–25,000 ...... 425 450 25 6 25,000.01–30,000 ...... 600 750 150 25 30,000.01–50,000 ...... 875 750 (125) (14 ) 50,000.01–100,000 ...... 1,100 1,100 0 0 100,000.01–250,000 ...... 1,700 1,700 0 0 250,000.01–500,000 ...... 1,700 1,900 200 12 500,000.01–1,000,000 ...... 2,250 2,475 225 10 1,000,000.01–5,000,000 ...... 2,800 3,025 225 8 5,000,000.01–10,000,000 ...... 3,350 3,600 250 8 Over $10,000,000 ...... 3,750 4,025 275 7 Non-Monetary/Not Specified ...... 1,500 1,900 400 27

As reflected in Table 4, the proposal schedules in the Codes.’’ 47 FINRA also 3. Proposed Amendments to FINRA would reduce the member surcharge for believes that this merger ‘‘is a more Rules 12902 and 13902 (Hearing Session some smaller claims 43 and increase the practical approach for case Fees, and Other Costs and Expenses) member surcharge for larger claims.44 administration purposes, and would The proposal would also increase the make the surcharge schedule easier to Currently, FINRA Rules 12902(a) and 13902(a) assess a hearing session fee for member surcharge assessed for understand for parties.’’ 48 In addition, 45 each hearing session held. A hearing unspecified claims by $400. FINRA the proposal would divide the current session is a meeting of the parties and believes that this change is consistent $100,000.01-to-$500,000 tier with its with comparable increases in the arbitrators, including any hearing, pre- surcharge of $1,700 into two new tiers. hearing, and injunctive hearing.50 unspecified filing fees for customer and The surcharge for the new $100,000.01- industry claimants. FINRA also noted According to FINRA, the hearing to-$250,000 tier would remain $1,700 session fee is ‘‘intended to offset that member surcharges would remain while the surcharge for the new non-allocable under the proposal, and, FINRA’s cost to conduct hearing $250,000.01-to-$500,000 tier would 51 thus, would not result in any additional sessions.’’ increase by $200 or about 12 percent. costs to customers.46 As FINRA explained, the hearing FINRA proposed this change because it The proposal would also combine the session fee is allocable to the parties and current $25,000.01-to-$30,000 and believes ‘‘a large percentage of claims based on the highest claim amount $30,000.01-to-$50,000 tiers. FINRA fall within the current tier and FINRA within the case. In addition, Rules stated that this change ‘‘was intended to decided that there should be a greater 12902(a)(1) and 13902(a)(1) provide 49 make the proposed tiers in the surcharge distinction between the claims.’’ arbitrators the authority to apportion the schedule more consistent with other fee fees in any manner, including assessing

40 Id. (citing Rules 12701(a) and 13701(a)). 44 See id. n. 49 (noting that the surcharge for the 49 Id. 41 See id. at 37788 (citing Rules 12901(a)(4) and $10,000.01-to-$25,000 tier would also increase by 50 See id. at 37788. $25 or 6 percent). 13901(d)). See also Rules 12701(b) and 13701(b). 51 Id. at 37789 (noting that ‘‘[t]he cost of 45 See id. at 37790–91. 42 See Notice, 79 FR at 37788. conducting a hearing session includes arbitrator 46 See id.at 37791. 43 compensation and travel expenses, hearing See id. at 37790. 47 Id. conference rooms, and staff work and expenses’’). 48 Id.

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the entire amount against one party.52 other fee schedules and to clarify that (a) Hearings With One Arbitrator FINRA also stated that it applies the hearing session fees are based on the refundable portion of the filing fee claim amount and do not include As reflected in Table 5 (below), under against any hearing session fees interest or expenses; 55 and (2) change the proposed rule change, the fees for a assessed against the party that paid the the title of the tier currently identified hearing session with one arbitrator filing fee.53 as ‘‘Unspecified’’ to ‘‘Non-Monetary/Not would not change.57 FINRA noted, FINRA is proposing to amend Rule Specified’’ so that the title is consistent however, that the proposal would create 12902 to increase the hearing session with those in the other fee schedules in two new tiers, beginning at $500,000.01, fees for claims of more than $500,000.54 the Codes.56 so that the tiers for the fees for a hearing The proposal would also make two Tables 5 and 6 (below) illustrate the session with one arbitrator match the technical changes to the ‘‘Hearing current fee for hearing sessions with claim amount tiers for filing fees. FINRA Session Fees’’ charts: (1) Add either one or three arbitrators, the would retain the $450 hearing session ‘‘(exclusive of interest and expenses)’’ to proposed fee, dollar and percentage fee for each new tier.58 the ‘‘Amount of Claim’’ title to make it changes, and the arbitrator payment at consistent with those in the Codes’ each tier.

TABLE 5—HEARING SESSION FEES FOR SESSION WITH ONE ARBITRATOR

Current fee for Proposed fee session/ for session/ Percent Amount of claim (exclusive of interest and expenses) decision w/ decision w/ Change change one arbitrator one arbitrator

$.01–$2,500 ...... $50 $50 $0 0 2,500.01–5,000 ...... 125 125 0 0 5,000.01–10,000 ...... 250 250 0 0 10,000.01–25,000 ...... 450 450 0 0 25,000.01–50,000 ...... 450 450 0 0 50,000.01–100,000 ...... 450 450 0 0 100,000.01–500,000 ...... 450 450 0 0 500,000.01–1,000,000 ...... 450 450 0 0 1,000,000.01–5,000,000 ...... 450 450 0 0 Over $5,000,000 ...... 450 450 0 0 [Unspecified Damages] Non-Monetary/Not Specified ...... 450 450 0 0

FINRA stated that ‘‘[i]n assessing the tiers.’’ 59 FINRA explained that it (b) Hearings With Three Arbitrators hearing session fees for cases heard by ‘‘would retain the current fees for these As reflected in Table 6 (below), the one arbitrator, FINRA determined to lower claim amounts, so that the forum proposal would create new tiers for retain the current fee structure . . . even remains accessible and affordable to claims amounts starting at $500,000.01 though the current fees would not cover claimants with smaller claims.’’ 60 for hearing sessions with three the proposed increased honoraria arbitrators and would increase the fees payments for claims in the $.01–$10,000 only for those tiers.61

TABLE 6—HEARING SESSION FEES FOR SESSION WITH THREE ARBITRATORS

Current fee for Proposed fee session for session Percent Amount of claim (exclusive of interest and expenses) w/ three w/ three Change change arbitrators arbitrators

Up–$2,500 ...... N/A N/A N/A N/A 2,500.01–5,000 ...... N/A N/A N/A N/A 5,000.01–10,000 ...... N/A N/A N/A N/A 10,000.01–25,000 ...... N/A N/A N/A N/A 25,000.01–50,000 ...... 600 600 0 0 50,000.01–100,000 ...... 750 750 0 0 100,000.01–500,000 ...... 1,125 1,125 0 0 500,000.01–1,000,000 ...... 1,200 1,300 100 8 1,000,000.01–5,000,000 ...... 1,200 1,400 200 17 Over $5,000,000 ...... 1,200 1,500 300 25 [Unspecified Damages] Non-Monetary/Not Specified ...... 1,000 1,125 125 13

52 See id. (noting that ‘‘[a]rbitrators may assess the all hearing session fees, the refundable portion of 56 See id. at 37793–94. hearing session fees in the award, or by arbitrator the filing fee will be refunded to the claimants, less 57 See id. at 37792. order if the parties held hearing sessions before any fees, costs, and expenses that may have been 58 See id. at 37793. agreeing to settle’’). See also id. n. 34 (explaining assessed against this party under the Code’’). that ‘‘[t]he parties may agree to a different allocation 59 Id. 54 in the settlement agreement’’). See Notice, 79 FR at 37792. 60 See id. 55 53 See Notice, 79 FR at 37789. See also id. at See id. at 37793 (noting that the exclusion of 61 See id. 37788 (explaining, for example, that ‘‘if a case goes interest or other expenses ‘‘would codify current to hearing, and the panel orders a respondent to pay practice’’).

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FINRA stated that it would retain the party to an arbitration in which the would result in an increase to the current fees for lower claim amounts claim amount is more than $25,000 to member process fee in many cases.68 despite the fact that ‘‘the hearing session pay process fees, which are assessed at However, FINRA believes this change is fees do not cover the forum’s actual specific milestones in each case.65 In ‘‘necessary to ensure that the forum has costs for smaller claims.’’ 62 FINRA particular, FINRA assesses each member the resources available at the initial stated that it intends this proposed a non-refundable prehearing process fee stages of a case to cover the proposed amendment to keep the forum of $750 at the time the parties are sent honoraria increases.’’ 69 Further, FINRA accessible and affordable for claimants arbitrator lists and a non-refundable states that this change would also with smaller claims.63 FINRA further hearing process fee, based on the claim ‘‘make the collection process more noted that the proposed increases on amount, when the parties are notified of efficient for FINRA and the members, as larger claim amounts ‘‘would provide the date and location of the hearing on it would reduce the number of invoices the forum with enough revenue to cover the merits. Like the member surcharges, sent and collection activities performed its honoraria payments for these cases as the process fee is non-allocable to other by FINRA’s Finance Department.’’ 70 well as offset the deficits created at the parties to the arbitration.66 The proposed rule change would also lower tier amounts.’’ 64 As reflected in Table 7 (below), the amend Rule 12903 to increase the 4. Proposed Amendments to FINRA proposal would combine the prehearing member process fees for claim amounts 71 Rules 12903 and 13903 (Process Fees process fee and hearing process fee, into larger than $250,000. Paid by Members) one fee, which would be due at the time Table 7 (below) shows the current Currently, FINRA Rules 12903(a) and the parties are sent the arbitrator lists.67 process fees, the proposed combined 13903(a) require each member that is a FINRA recognizes that this change fees, and the changes between the two.

MEMBER PROCESS FEE SCHEDULE—TABLE 7

Current Amount of claim (exclusive of interest Pre-hearing Hearing combined Proposed fees Change Percentage and expenses) process fee process fee process fees change

$.01–$5,000 ...... N/A N/A N/A N/A N/A N/A 2,500.01–5,000 ...... N/A N/A N/A N/A N/A N/A 5,000.01–10,000 ...... N/A N/A N/A N/A N/A N/A 10,000.01–25,000 ...... N/A N/A N/A N/A N/A N/A 25,000.01–30,000 ...... 750 1,000 1,750 N/A N/A N/A 30,000.01–50,000 ...... 750 1,000 1,750 N/A N/A N/A 50,000.01–100,000 ...... 750 1,700 2,450 2,250 (200) (8) 100,000.01–250,000 ...... 750 2,750 3,500 3,250 (250) (7) 250,000.01–500,000 ...... 750 2,750 3,500 3,750 250 7 500,000.01–1,000,000 ...... 750 4,000 4,750 5,075 325 7 1,000,000.01–5,000,000 ...... 750 5,000 5,750 6,175 425 7 5,000,000.01–10,000,000 ...... 750 5,500 6,250 6,800 550 9 Over 10,000,000...... 750 5,500 6,250 7,000 750 12 Non-Monetary/Not Specified ...... 750 2,200 2,950 3,750 800 27

The proposal would increase the fees discussed above—would remain non- partial opposition to the proposal.79 The for claim amounts beginning with the allocable under the proposal, and, thus, sections below outline the suggestions new $250,000.01-to-$500,000 tier. would not result in any additional costs or specific concerns raised by those five Similar to the member surcharge to customers.74 commenters as well as FINRA’s increase discussed above, FINRA is response. III. Summary of Comments and proposing to spread the process fee FINRA’s Response A. FINRA Members Should Pay All increases among larger claim amounts, Proposed Fee Increases while retaining or decreasing the fees As noted above, the Commission associated with the lower claim received eight comment letters on the While a majority of the commenters amounts.72 The proposal would also proposed rule change 75 and a response supported the proposed increase in increase the process fees assessed for letter from FINRA.76 As discussed in arbitrator honoraria, two commenters unspecified claims by $800. FINRA more detail below, all of the eight opposed the proposed increase in filing believes that this change is consistent commenters expressed support, in fees that customers would pay to help with comparable increases in the whole or in part, for FINRA’s fund the honoraria increases.80 unspecified filing fees for customer and proposal.77 Three of the eight One of these commenters expressed industry claimants.73 FINRA also commenters, however, also suggested concern ‘‘that requiring investors to pay explained that the member process fee— further modifications.78 In addition, two the increased honorarium by raising the like the member surcharge increase of the eight commenters also expressed filing fees may deny them access to the

62 Id. 69 Id. 76 See supra note 6. 63 Id. 70 Id. 77 See Caruso Letter; Bakhtiari Letter; Aidikoff 64 Id. 71 See id. at 37791. Letter; PIABA Letter; PIRC Letter; FSI Letter; 65 NASAA Letter; and Quarequio Letter. See id. at 37788. 72 See id. 66 See id. (citing Rules 12903(c) and 13903(c)). 78 See PIRC Letter; FSI Letter; and Quarequio 73 See id. See also Rules 12701(b) and 13701(b). Letter. 74 67 See Notice, 79 FR at 37791. See id. 79 See PIABA Letter and NASAA Letter. 68 See id. 75 See supra note 4. 80 See PIABA Letter at 1–2; NASAA Letter at 2.

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forum.’’ 81 Rather, this commenter stated suffered ‘‘catastrophic losses,’’ 89 FINRA liable for claimants’ losses, but was not that ‘‘FINRA members should be noted that ‘‘an inability to pay the filing assessed any fees.’’ 98 FINRA further responsible for paying 100% of the fees would not foreclose an investor’s stated that three of those four cases were proposed increased filing fees claims’’ ability to seek redress in the forum’’ as pursued by claimants in default given that ‘‘investors are forced into the FINRA may waive the filing fees ‘‘[i]f an proceedings,99 and in the fourth case, FINRA arbitration forum as a result of investor demonstrates financial only the claimant appeared at the mandatory arbitration.’’ 82 hardship.’’ 90 hearing.100 Furthermore, with respect to Similarly, a second commenter In its response, FINRA also noted that the fourth case, FINRA also stated that opposed ‘‘FINRA’s effort to pass along neither the use of PDAAs by FINRA it ‘‘waived the claimant’s filing fees in increased honoraria costs to investors members nor whether certain claims that matter and the arbitrators awarded that are forced into FINRA’s dispute should be litigated in court or arbitrated the claimant more than 160 percent of resolution forum as the result of is the subject of the proposal. the compensatory damages claimed plus industry mandatory pre-dispute Consequently, FINRA stated that both $15,000 in sanctions from the arbitration agreements.’’ 83 This issues are ‘‘outside the scope of the respondent firm.’’ 101 commenter contended that investors filing.’’ 91 Nevertheless, FINRA noted For these reasons, FINRA declined to with ‘‘’more complicated to resolve’ and that, while the proposed filing fees may modify its proposal in response to ‘time-consuming’ claims might prefer not be comparable to those in state comments. pursuing their claims in court rather courts, ‘‘investors experience substantial C. Request Additional Data than paying more for FINRA arbitrators savings in arbitration compared to One commenter claimed that FINRA’s to handle the disputes.’’ 84 litigation.’’ 92 Accordingly, FINRA stated that ‘‘the benefits and cost proposal does not provide sufficient In addition, both of these commenters information ‘‘to assess the savings of arbitration make filing an argued that because FINRA member reasonableness or anticipated arbitration claim a less costly option for firms use pre-dispute arbitration effectiveness of the increases that investors.’’ 93 agreements (‘‘PDAAs’’) to require their FINRA proposes’’ because the statistical Therefore, for these reasons, FINRA customers to arbitrate claims, investors models and underlying data were not declined to modify the proposed rule do not have a choice of forum. provided to the public.102 This change to assign all filing fee increases Consequently, these commenters commenter requested that FINRA to FINRA members.94 asserted that such investors should not produce, as part of the public comment be required to pay the proposed increase file, the statistical models FINRA used 85 B. Assessment of Forum Fees Against in filing fees. Respondents to ‘‘match anticipated revenue with In response, FINRA noted that ‘‘as expenses for purposes of setting One commenter that opposed the claimants and respondents utilize the increased rates.’’ 103 proposal, stating that FINRA members arbitration facilities to resolve disputes, In response to this comment, FINRA it would be inequitable for industry should be responsible for paying all of stated that the information provided in members to pay 100 percent of the filing the proposed increased filing fees, also the proposal is ‘‘sufficient to elicit fee increase.’’ 86 Furthermore, FINRA contended that ‘‘[t]his point is meaningful comment.’’ 104 Moreover, disagreed with the one commenter’s emphasized even more when you FINRA noted that its financial systems assertion that an increase in filing fees consider that arbitration panels rarely and the data generated by those systems for investors may serve to deny access assess forum fees against respondents ‘‘are used by only FINRA staff when to the forum for investors.87 Rather, even when they find the respondents conducting FINRA business and 95 FINRA stated that the proposal would liable for the claimants’ losses.’’ operations.’’ 105 Accordingly, FINRA help minimize the impact on claimants FINRA refuted this commenter’s claimed that ‘‘[b]ecause of the of the increased fees because ‘‘the filing assertion, calling it ‘‘inaccurate and proprietary nature of these systems and 96 fee increases begin for claims over misleading.’’ FINRA noted that their data, FINRA believes this $500,000 and a majority of the increases ‘‘arbitrators make allocation decisions information should remain non- are added to the refundable portion of on a case-by-case basis depending on public.’’ 106 the fee.’’ 88 what happened during the hearings.’’ 97 D. Enhance Recruitment To Expand the In response to the comment that FINRA also stated that it reviewed Arbitrator Roster investors may not be able to afford the customer claimant cases closed by proposed filing fees after having award from 2011 through 2013 and, One commenter claimed that it cannot ‘‘[i]n only four of these cases (less than assess whether there is a need for 81 PIABA Letter at 1–2. one percent), the respondent was found increased arbitrator honoraria because 82 Id. at 2. FINRA’s proposal does not provide 89 83 NASAA Letter at 2 (NASAA generally supports See supra note 84. ‘‘basic information regarding the and ‘‘does not question FINRA’s need to update 90 Response Letter at 3. existing size or quality of FINRA’s arbitrator honoraria’’ and ‘‘appreciates FINRA’s 91 Id. efforts to mitigate the impact to smaller public 92 Id. (explaining that, for example, ‘‘claims in 98 users,’’ however, ‘‘NASAA respectfully disagrees arbitration are typically resolved more quickly than Id. with FINRA that it is incumbent upon [investors] claims in litigation’’ and ‘‘investors in arbitration 99 See id. (noting that in these three cases, the to pay or contribute more to enhance FINRA’s avoid the expense of depositions and similar costs arbitrators assessed forum fees of $300, $300, and dispute resolution program.’’). associated with discovery in litigation’’). $1,425 respectively against the claimants). 84 Id. (claiming that state court filing fees in most 93 Id. at 4. 100 See id. (noting that in the fourth case, the jurisdictions are generally less than the filing fees 94 See id. arbitrators assessed the claimant a total of $4,500 for two hearing sessions and four prehearing contemplated in the proposal). See also id. (stating 95 PIABA Letter at 2. conference sessions). that ‘‘investors with catastrophic losses as might be 96 Response Letter at 5. found in half- to multi-million dollar claims are 101 Id. 97 Id. (explaining that arbitrator training materials often the least able to afford large fees’’). 102 Id. and the Award Information Sheet guide arbitrators 85 103 See PIABA Letter at 2; NASAA Letter at 2. on making allocation decisions and noting that NASAA Letter at 2. 86 Response Letter at 3. some of the factors arbitrators might consider when 104 Response Letter at 5. 87 See id. (citing PIABA Letter at 1–2). making allocation decisions include ‘‘a party’s 105 Id. 88 Id. (citing Notice, 79 FR at 37791–92). perceived ability to pay forum fees’’). 106 Id.

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existing arbitrator pool, including ‘‘[i]t also asks [applicants] to provide have on certain conflicts of interest.’’ 120 relevant recruiting and retention names of individuals whom they For example, ‘‘an arbitrator may be rates.’’ 107 This commenter also recommend for the roster.’’ 113 reluctant to grant a Motion to Dismiss suggested that the Commission FINRA stated that ‘‘the increased because it would eliminate the potential ‘‘consider expanding FINRA’s roster by honoraria would be helpful in its compensation they would receive from revising arbitrator qualifications and by recruiting efforts, as staff has received serving on the panel.’’ 121 Therefore, this utilizing different recruiting methods of feedback from prospective applicants commenter suggested that FINRA outreach.’’ 108 Finally, this commenter who have declined to apply when they consider paying a ‘‘set honorarium’’ 114 claimed that ‘‘FINRA may have greater learn of the current pay structure.’’ which, the commenter believes, ‘‘would flexibility in setting honoraria amounts FINRA further explained that increased reduce or eliminate any reluctance on honoraria would also support its by expanding its geographical the part of the arbitrator to grant the 109 ‘‘retention objective, as current presence.’’ motion that is motivated by a desire to In response, FINRA stated that it arbitrators express their concerns to FINRA staff regularly about the be adequately compensated for their ‘‘relies on a diverse roster of over 6,300 time.’’ 122 arbitrators to maintain its fair, impartial honoraria levels.’’ 115 and efficient system of dispute For these reasons, FINRA declined to In response, FINRA stated that it resolution’’ and that ‘‘[t]he exact modify its proposal. ‘‘does not believe that increasing the number of arbitrators, broken down by E. Apply Increased Honoraria honoraria would prevent arbitrators public and non-public classifications, is Retroactively from performing their duties and updated monthly and published on deciding disputes in a fair manner, as One commenter expressed concern [FINRA’s] Web site.’’ 110 FINRA also they must agree to do by executing the that applying the proposed increased responded to the commenter’s concerns arbitrator oath.’’ 123 Furthermore, FINRA honoraria prospectively would create a about the quality of FINRA’s arbitrators noted that, ‘‘if arbitrators deny a motion two-tier pay structure: One for by describing its: (i) Minimum to dismiss, it would be because they arbitrators assigned before the believe that the grounds for dismissing requirements for arbitrators; (ii) proposal’s effective date and another for application and screening processes; those assigned after the effective date.116 a claim prior to the conclusion of a (iii) background verification and re- This commenter suggested making the claimant’s case in chief have not been 124 verification processes; (iv) arbitrator honoraria increase partially retroactive met.’’ training programs; (v) mandatory to pending cases. FINRA also clarified that, although surveys to ensure classification as either In response, FINRA explained that, the commenter does not define ‘‘set a public or a non-public arbitrator; and although it understands the concern, it honorarium,’’ FINRA interpreted it to (vi) evaluation processes by FINRA staff, believes that if the suggestion was mean ‘‘a fixed amount, regardless of the the parties, and fellow arbitrators at the implemented it ‘‘would have a negative number of motions decided or hearings conclusion of each case.111 117 impact on the forum’s resources.’’ held during a case.’’ 125 FINRA believes With respect to the commenter’s FINRA noted that if it were to extend concerns about expanding FINRA’s that such a payment structure would the honoraria increases to pending present the following challenges to the geographical presence, FINRA cases, the honoraria payments would explained that it ‘‘already focuses on forum: (1) It would negate the benefit of not be properly funded, as the fees in providing the parties with some control areas of the country where there is a those cases would be based on the over the tasks and activities that lower number of available arbitrators’’ current, lower fee structure.118 FINRA arbitrators need to perform in a case; 126 and that ‘‘[i]n its effort to recruit stated that in order ‘‘[t]o simplify the arbitrators from a diverse group of technology programming and to ensure (2) it ‘‘would be unfair to parties whose professionals, FINRA continues to consistent application of the honoraria arbitration case requires a minimal conduct outreach activities in and fee changes, FINRA believes the number of hearing sessions as well as to underserved locations.’’ 112 FINRA increased honoraria should apply to those arbitrators who sit on cases with 127 further noted that it ‘‘tracks the success cases filed on or after the effective a large number of hearing sessions;’’ of its recruitment initiatives by asking in date.’’ 119 and (3) ‘‘more cases would go to its application how applicants learned For these reasons, FINRA declined to hearing, as there would be no incentive of the arbitrator opportunity’’ and that modify the proposal to make the to settle, which would result in an honoraria increase partially retroactive increase in forum expenses.’’ 128 107 NASAA Letter at 2. to pending cases. For these reasons, FINRA declined to 108 Id. at 3. amend the proposal to pay a ‘‘set 109 Id. (explaining that ‘‘[e]xtending its reach in F. The Proposal Could Create Conflicts this manner would reduce FINRA travel expense of Interest honorarium.’’ reimbursements for many participants’’). One commenter suggested that 110 Response Letter at 6 (citing FINRA, Arbitration 120 ‘‘FINRA should also consider the impact FSI Letter at 2. & Mediation, Dispute Resolution Statistics, 121 Id. available at http://www.finra.org/ increased arbitrator compensation could 122 Id. ArbitrationAndMediation/Arbitrators/ 123 Responsibilites/OathofArbitrator/index.htm). See Response Letter at 8 (citing Canon 1 of the 113 Id. also id. (noting that FINRA’s roster ‘‘consists of Code of Ethics for Arbitrators in Commercial 114 arbitrators from various backgrounds, including Id. Disputes which states that ‘‘an arbitrator should educators, accountants, medical professionals and 115 Id. uphold the integrity and fairness of the arbitration others, as well as lawyers and securities 116 See Quarequio Letter at 1 (stating that process’’ and requires that ‘‘arbitrators conduct professionals’’). ‘‘[a]lthough this imbalance would be temporary themselves in a way that is fair to all parties and should not be swayed by outside pressure, public 111 See Response Letter at 6–7. until existing cases work their way through the clamor, and fear of criticism or self-interest’’). 112 Id. at 7 (citing, for example, ‘‘attending system, it does not appear fair to have, at least for 124 Id. at 8–9. business and recruitment conferences, initiating some time, a ‘two-tier’ pay structure which 125 direct marketing and ad campaigns, publishing penalizes those who have been arbitrators longer’’). Id. at 9. articles in The Neutral Corner, and soliciting 117 Response Letter at 8. 126 See id. applicant referrals in a monthly email that is 118 See id. 127 Id. distributed to FINRA neutrals’’). 119 Id. 128 Id.

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G. Calculate Hearing Session Fees at an response to the comments.138 While the would further the purposes of the Act as Hourly Rate Commission appreciates the suggestions it is reasonably designed to protect 144 One commenter suggested changing raised by some commenters, the investors and the public interest. In FINRA’s current payment structure for Commission believes that FINRA addition to the observations above arbitrators ‘‘from sessions of ‘four hours responded appropriately to their regarding FINRA’s efforts to minimize or less’ to an hourly rate.’’ 129 concerns. Most notably, the Commission the exposure of its fee increases to Specifically, this commenter claimed agrees with FINRA’s observation that investors in order to keep the forum 145 that, in its experience, ‘‘most hearing ‘‘[a] majority of the commenters accessible to small investors, the sessions last significantly less than four acknowledge that, as it has been 15 Commission also agrees with FINRA’s hours and the length of each session can years since the last increase, the assessment that the proposal is designed vary considerably,’’ 130 and that proposed increase is long overdue and to ‘‘retain a roster of high-quality arbitrators are compensated the same critical to the forum in recruiting and arbitrators and attract qualified amount regardless of whether a hearing retaining a roster of high quality individuals who possess the skills 139 session lasts two hours or four hours.131 arbitrators.’’ necessary to manage arbitration cases In response, FINRA explained that the Specifically, the Commission believes and consider thoroughly all arbitration structure of hearing session payments is that the proposed rule change would issues presented, which are essential not the subject of this rule filing and further the purposes of the Act as it elements for FINRA to meet its therefore outside the scope of the provides for the equitable allocation of regulatory objective of protecting the proposal.132 Therefore, FINRA declined reasonable fees, surcharges and other investing public.’’ 146 to respond to that comment at this charges among FINRA members, For the reasons stated above, the time.133 customers, associated persons, or other Commission finds that the proposed non-members using FINRA’s arbitration rule change is consistent with the Act IV. Discussion and Commission forum.140 The Commission agrees with and the rules and regulations Findings the views of certain commenters that thereunder. FINRA: (1) ‘‘investigated several The Commission has carefully V. Conclusion considered the proposal, the comments alternative approaches for increasing received, and FINRA’s responses to the honoraria and has struck an effective It is therefore ordered, pursuant to 147 comments. Based on its review of the balance’’ and (2) took ‘‘a measured and Section 19(b)(2) of the Act, that the record, the Commission finds that the balanced approach to the economic proposed rule change (SR–FINRA– proposed rule change is consistent with considerations that are associated with 2014–026), be, and hereby is, approved. the requirements of the Act and the the arbitrator honoraria increases.’’ 141 For the Commission, by the Division of rules and regulations thereunder The Commission also notes, as certain Trading and Markets, pursuant to delegated applicable to a national securities commenters did, ‘‘FINRA’s effort to authority.148 association.134 In particular, the minimize the exposure of the fee Kevin M. O’Neill, Commission finds that the proposed increases to the investing public.’’ 142 Deputy Secretary. rule change is consistent with Section The Commission also agrees that [FR Doc. 2014–23568 Filed 10–2–14; 8:45 am] 135 15A(b)(5) of the Act, which requires FINRA’s proposal to allocate the BILLING CODE 8011–01–P that FINRA’s rules provide for the majority of the proposed fee increases equitable allocation of reasonable dues, among higher claim amounts will help fees, and other charges among its ‘‘[minimize] the impact of the increases SECURITIES AND EXCHANGE members and other persons using any on smaller claims and keeps the COMMISSION facility or system which FINRA operates arbitration forum accessible for the 143 [Release No. 34–73238; File No. SR–FINRA– or controls. The Commission also finds small investor.’’ 2014–038] that the proposed rule change is Moreover, the Commission also consistent with Section 15A(b)(6) of the believes that the proposed rule change Self-Regulatory Organizations; Act,136 which requires, among other Financial Industry Regulatory things, that FINRA’s rules be designed 138 See supra note 6. Authority, Inc.; Notice of Filing of a to prevent fraudulent and manipulative 139 Response Letter at 2. See also Aidikoff Letter at 1 (stating that ‘‘there has been no increase in the Proposed Rule Change To Adopt acts and practices, to promote just and arbitrator honoraria for fifteen years and in my view FINRA Rule 3110(e) (Responsibility of equitable principles of trade, and, in increasing these payments will help retain qualified Member To Investigate Applicants for general, to protect investors and the individuals in the pool as well as helping to recruit Registration) in the Consolidated new arbitrators’’). public interest. 140 FINRA Rulebook As outlined above, the Commission See 15 U.S.C. 78o–3(b)(5). 141 Caruso Letter at 1. See also Aidikoff Letter at September 26, 2014. received eight comment letters on the 1 (stating that ‘‘increasing these payments will help proposed rule change 137 and FINRA’s retain qualified individuals in the pool as well as Pursuant to Section 19(b)(1) of the helping to recruit new arbitrators.’’); Bakhtiari Securities Exchange Act of 1934 (‘‘Act’’ 1 2 129 PIRC Letter at 2 (suggesting that ‘‘[t]his more Letter at 1 (stating that ‘‘[t]he honoraria raise is fair or ‘‘SEA’’) and Rule 19b–4 thereunder, equitable compensation structure should help and will not materially affect aggrieved public notice is hereby given that on investors that file claims in the Finra forum’’). eliminate unnecessary expenses to FINRA—which September 18, 2014, Financial Industry are passed along to claimants and members’’). 142 PIRC Letter at 1–2 (noting that the fee 130 Id. allocation ‘‘is consistent with FINRA’s goal of Regulatory Authority, Inc. (‘‘FINRA’’) 131 See id. maintaining a just and equitable forum for parties to settle their disputes’’). See also NASAA Letter at 144 132 See Response Letter at 9. See 15 U.S.C. 78o–3(b)(6). 1–2 (stating that it ‘‘appreciates FINRA’s efforts to 133 145 See supra notes 142 and 143 and See id. mitigate the impact to smaller public users’’). 134 accompanying text. In approving the proposed rule change, the 143 Response Letter at 4. See also id. (explaining 146 See Notice, 79 FR at 377887. See also Commission has also considered the rule change’s that ‘‘to further mitigate the impact of the filing fee impact on efficiency, competition, and capital Response Letter at 2. increases, most of the increases would be added to 147 formation. See 15 U.S.C. 78c(f). the refundable portion of the filing fee’’ and noting 15 U.S.C. 78s(b)(2). 135 15 U.S.C. 78o–3(b)(5). that ‘‘the filing fee and hearing session fee increases 148 17 CFR 200.30–3(a)(12). 136 15 U.S.C. 78o–3(b)(6). for customers begin for claim amounts of more than 115 U.S.C. 78s(b)(1). 137 See supra note 4. $500,000’’). 2 17 CFR 240.19b–4.

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filed with the Securities and Exchange A. Self-Regulatory Organization’s statutory disqualification5 or whether Commission (‘‘SEC’’ or ‘‘Commission’’) Statement of the Purpose of, and the applicant may present a regulatory the proposed rule change as described Statutory Basis for, the Proposed Rule risk for the firm and customers. Further, in Items I, II and III below, which Items Change firms use the information reported to have been prepared by FINRA. The the CRD system to determine whether 1. Purpose Commission is publishing this notice to an applicant is subject to a statutory solicit comments on the proposed rule As part of the process of developing disqualification and to conduct change from interested persons. a new consolidated rulebook background checks on applicants when (‘‘Consolidated FINRA Rulebook’’),3 making registration decisions. In I. Self-Regulatory Organization’s FINRA is proposing to adopt NASD addition, the information that FINRA Statement of the Terms of Substance of Rule 3010(e) relating to background releases to the public through the Proposed Rule Change investigations as FINRA Rule 3110(e). BrokerCheck, which helps investors FINRA is proposing to adopt NASD The proposed rule change streamlines make informed choices about the Rule 3010(e) (Qualifications and clarifies the rule language. In individuals and firms with which they Investigated) relating to background addition, the proposed rule change adds conduct business, is derived from the investigations as FINRA Rule 3110(e) a provision to proposed FINRA Rule CRD system. NASD Rule 3010(e) provides that a (Responsibility of Member to Investigate 3110(e) to require members to adopt firm must ascertain by investigation the Applicants for Registration) in the written procedures that are reasonably good character, business reputation, consolidated FINRA rulebook. The designed to verify the accuracy and qualifications and experience of an proposed rule change streamlines and completeness of the information contained in an applicant’s Form U4 as applicant before the firm applies to clarifies the rule language and adds a 6 described below. Further, the proposed register that applicant with FINRA. provision to require members to adopt NASD Rule 3010(e) does not place any written procedures that are reasonably rule change adds Supplementary Material .15 to FINRA Rule 3110 to limits on the scope of such a designed to verify the accuracy and background investigation—a firm must completeness of the information establish a temporary program that will issue a refund to members of Late obtain all the necessary information to contained in an applicant’s Form U4 7 Disclosure Fees assessed for the late make an evaluation. In addition, if the (Uniform Application for Securities applicant previously has been registered Industry Registration or Transfer). In filing of responses to Form U4 Question 14M, subject to specified conditions. with FINRA, NASD Rule 3010(e) addition, the proposed rule change adds specifically requires that the firm review The proposed rule change would Supplementary Material .15 (Temporary a copy of the applicant’s most recent delete NASD Rule 3010(f) because it has Program to Address Underreported Form U5 (Uniform Termination Notice Form U4 Information) to FINRA Rule been rendered obsolete. The proposed for Securities Industry Registration) 3110 (Supervision) to establish a rule change would also delete 4 within 60 days of the filing date of an temporary program that will issue a Incorporated NYSE Rule 345.11 and application for registration or refund to members of Late Disclosure NYSE Rule Interpretation 345.11/01 and demonstrate that it has made reasonable Fees assessed for the late filing of /02 as they are substantially similar to efforts to do so.8 responses to Form U4 Question 14M, proposed FINRA Rule 3110(e), NYSE Rule 345.11, which is the subject to specified conditions. addressed by other rules or otherwise corresponding NYSE rule, requires firms The proposed rule change would rendered obsolete by the proposed to investigate thoroughly the previous delete NASD Rule 3010(f) (Applicant’s approach reflected in FINRA Rule record of: (1) Persons required to be Responsibility), Incorporated NYSE 3110(e). registered with the NYSE; (2) persons Rule 345.11 (Investigation and Records) I. Existing Requirements who regularly handle or process and Incorporated NYSE Rule securities or monies or maintain the Interpretation 345.11/01 (Application— A critical part of the registration books and records relating to securities Investigation) and /02 (Application— process in the securities industry is the Records). background investigation of applicants 5 See Sections 3(a)(39) and 15(b)(4) of the Act. for registration and the timely and 6 Firms must comply with MSRB Rule G–7 The text of the proposed rule change accurate reporting of information to the (Information Concerning Associated Persons) is available on FINRA’s Web site at Central Registration Depository (CRD®) regarding those applicants engaged solely in http://www.finra.org, at the principal municipal securities activities. system via the Form U4. For instance, 7 FINRA has stated that firms should consider all office of FINRA and at the FINRA reviews the information available information gathered in the pre- Commission’s Public Reference Room. disclosed on the Form U4 to determine registration process for this purpose, including, but whether an applicant is subject to a not limited to Forms U4 and U5 responses, II. Self-Regulatory Organization’s authorized searches of the CRD system, fingerprint Statement of the Purpose of, and results obtained under SEA Rule 17f–2 and Statutory Basis for, the Proposed Rule 3 The current FINRA rulebook consists of (1) communications with previous employers, and that Change FINRA Rules; (2) NASD Rules; and (3) rules firms also may wish to consider private background incorporated from NYSE (‘‘Incorporated NYSE checks, credit reports and reference letters. See Rules’’) (together, the NASD Rules and Incorporated Regulatory Notice 07–55 (November 2007). In In its filing with the Commission, NYSE Rules are referred to as the ‘‘Transitional addition, FINRA has stated that firms must ensure FINRA included statements concerning Rulebook’’). While the NASD Rules generally apply that such background investigations are conducted the purpose of and basis for the to all FINRA members, the Incorporated NYSE in accordance with all applicable laws, rules and proposed rule change and discussed any Rules apply only to those members of FINRA that regulations (including federal and state are also members of the NYSE (‘‘Dual Members’’). requirements) and that all necessary approvals, comments it received on the proposed The FINRA Rules apply to all FINRA members, consents and authorizations have been obtained. rule change. The text of these statements unless such rules have a more limited application See Regulatory Notice 07–55. may be examined at the places specified by their terms. For more information about the 8 If the applicant has been recently employed by in Item IV below. FINRA has prepared rulebook consolidation process, see Information a Futures Commission Merchant or an Introducing Notice March 12, 2008 (Rulebook Consolidation Broker that is notice-registered with the SEC summaries, set forth in sections A, B, Process). pursuant to Section 15(b)(11) of the Act, the and C below, of the most significant 4 For convenience, the proposed rule change registering firm also is required to review a copy of aspects of such statements. refers to Incorporated NYSE Rules as NYSE Rules. the individual’s most recent CFTC Form 8–T.

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or monies who are not otherwise of NASD Rule 3010(e) into that Proposed FINRA Rule 3110(e) would required to be registered; and (3) paragraph, subject to the following also require that a firm’s written persons having direct supervisory changes. procedures must, at a minimum, responsibility over persons engaged in FINRA is proposing to streamline and provide for a search of reasonably the above activities who are not clarify the rule language. For instance, available public records12 conducted by otherwise required to be registered.9 For NASD Rule 3010(e) currently provides the member or a third-party service persons required to be registered with that ‘‘[e]ach member shall have the provider to verify the accuracy and the NYSE, firms generally fulfill their responsibility and duty to ascertain by completeness of the information investigative obligation by verifying the investigation the good character, contained in an applicant’s Form U4.13 information contained in the Form U4 business repute, qualifications, and The requirement to conduct a public and by reviewing the applicant’s most experience of any person prior to records search must be satisfied no later recent Form U5, if the applicant making such a certification in the than 30 calendar days after the initial or previously has been registered. For application of such person for transfer Form U4 is filed with FINRA, persons subject to NYSE Rule 345.11 registration with this Association,’’ with the understanding that if a member who are not required to be registered, whereas proposed FINRA Rule 3110(e) becomes aware of any discrepancies as firms generally fulfill their investigative provides that ‘‘[e]ach member shall a result of a public records search obligation by verifying the information ascertain by investigation the good conducted after the filing of the Form contained in the employment character, business reputation, U4, the member would be required to questionnaire or application required qualifications and experience of an file an amended Form U4 with FINRA. under SEA Rule 17a–3(a)(12)(i).10 NYSE applicant before the member applies to As discussed in more detail below, Rule 345.11 also requires firms to make register that applicant with FINRA and FINRA does not believe that this further inquiry, where appropriate, in before making a representation to that requirement would be unduly light of the background information effect on the application for burdensome for members given the developed, the position for which the registration.’’ Further, proposed FINRA availability of online access to public person is being considered or other Rule 3110(e) clarifies that a firm is records databases and the relatively low circumstances. required to review a copy of an cost of hiring a third-party service The Form U4 requires that the person applicant’s most recent Form U5 if the provider to conduct such a search. signing the form on behalf of the firm applicant previously has been registered Therefore, this requirement would certify that he or she has taken with FINRA or another self-regulatory provide firms with a relatively low cost appropriate steps to verify the accuracy organization. With respect to a firm’s method to verify that all disclosure and completeness of the information obligation to review an applicant’s Form events evidenced in reasonably contained in and with that form.11 U5, the proposed rule continues to available public records have been provide that if the firm is unable to II. Proposed FINRA Rule 3110(e) reported on the Form U4. In addition, review the Form U5, it has to FINRA is aware that many firms already FINRA is proposing to amend FINRA demonstrate that it has made reasonable have a review process in place that Rule 3110 by adding a new paragraph efforts to do so. FINRA expects firms to entails searching public records, and (e) and incorporating the requirements use this provision in very limited therefore the proposed requirement will circumstances, such as where the not impose significant burdens on these 9 See also NYSE Rule Interpretation 345.11/01 previous firm fails to file a Form U5 or firms. and /02. goes out of business before filing a Form 10 SEA Rule 17a–3(a)(12)(i) requires that a broker- A member could comply with the dealer make and keep current a questionnaire or U5. FINRA also is proposing to re-label requirement to conduct a public records application for employment executed by each current FINRA Rule 3110(e) search in several ways. For example, a associated person, other than persons whose (Definitions) as FINRA Rule 3110(f) member may satisfy the requirement by: functions are solely clerical or ministerial. The (Definitions) and update the cross- (1)(a) reviewing a credit report from a questionnaire or application must be approved in references in FINRA Rule 3110 to reflect writing by an authorized representative and must, major national credit reporting agency among other information, contain the associated this change. that contains public record information person’s employment, disciplinary and criminal In addition, FINRA is proposing to (such as bankruptcies, judgments and history. If an associated person is a registered include in proposed FINRA Rule liens), or (b) searching a reputable person of the broker-dealer, then retention of a full, 3110(e) a requirement that firms adopt correct and complete copy of the associated national public records database; and (2) person’s originally executed Form U4 for written procedures that are reasonably reviewing the fingerprint results registration with FINRA or other regulatory agency designed to verify the accuracy and obtained as part of the registration is sufficient to satisfy this requirement. completeness of the information process. Alternatively, a member could 11 The Form U4 also provides that the person contained in an applicant’s Form U4 no comply with this requirement by using signing the form on behalf of the firm certify that later than 30 calendar days after the the firm has communicated with the applicant’s the services of a specialized provider, previous employers for the past three years and has form is filed with FINRA. FINRA such as Business Information Group, documentation on file with the names of the believes that such a requirement is Inc. (BIG),14 to provide the firm with a persons contacted and the date of contact. In consistent with the requirements of addition, members have an obligation to comply NYSE Rule 345.11 and the Form U4. with SEA Rule 17f-2. Pursuant to SEA Rule 17f–2, 12 Public records include, but are not limited to: specific persons employed in the securities industry The proposed requirement would only general information, such as name and address of are required to be fingerprinted for purposes of a apply to an initial or a transfer Form U4 individuals; criminal records; bankruptcy records; criminal background check. Firms are responsible for an applicant for registration, and not civil litigations and judgments; liens; and business for obtaining a prospective employee’s fingerprints to Form U4 amendments. FINRA further records. and required identifying information. Firms then 13 The requirement to conduct a public records submit the prospective employee’s fingerprints believes that imposing such a search would be limited to a national search; it together with the required identifying information requirement would not be unduly would not extend to public records searches in to FINRA. FINRA, in turn, submits these burdensome for firms; FINRA expects foreign jurisdictions. fingerprints to the FBI. FINRA also makes the that firms already have a review process 14 FINRA has contracted with BIG to provide fingerprint results available to the employing competitive pricing to members that are conducting member and regulators, consistent with applicable in place to verify the information background investigations of applicants, currently federal laws and FBI and FINRA requirements. See contained in the Form U4 for most at a cost of $10 to $13 per applicant (depending on Notice to Members 05–39 (May 2005). applicants for registration. volume). In general, FINRA does not endorse any

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consolidated report of a national public conduct of these reviews. The reviews accuracy and completeness of specific records search, which includes a search are performed against readily available, financial and criminal information of financial and criminal public records. online public records. reported on the Form U4. A member may find it necessary to In the course of these reviews, if IV. Eliminated Rules conduct a more in-depth search of an FINRA identifies instances where applicant’s background depending on required information has not been NASD Rule 3010(f) requires an the applicant’s job function, reported to the CRD system via the Form applicant for registration to provide, responsibilities or position at the firm. U4, FINRA contacts the firm and asks upon a member’s request, a copy of his FINRA encourages firms to conduct that the information be reported or that or her Form U5. There is a the required public records search prior the firm provide an explanation as to corresponding provision in NYSE Rule to filing the initial or transfer Form U4 why the information is not reportable. If 345.11. FINRA is proposing to eliminate to avoid the fees associated with filing the firm reports the information on the the requirement because members have a Form U4 amendment. In addition, Form U4, FINRA reviews the electronic access to an applicant’s Form FINRA recognizes that there will on information and assesses a Disclosure U5 through the CRD system. occasion be circumstances beyond a Processing Fee.16 If the information has FINRA also is proposing to delete firm’s control that prevent completion not been reported in a timely manner, NYSE Rule 345.11 and NYSE Rule of the verification process within 30 FINRA also assesses a Late Disclosure Interpretation 345.11/01 and/02 in their calendar days after the Form U4 is filed Fee.17 entirety as they are substantially similar with FINRA. For example, where a firm However, FINRA is proposing to add to proposed FINRA Rule 3110(e), is relying on fingerprint results for Supplementary Material .15 to FINRA addressed by other rules18 or otherwise purposes of a criminal public records Rule 3110 to establish a temporary rendered obsolete by the proposed search, and the FBI determines the program that will issue a refund to approach reflected in FINRA Rule fingerprints to be ‘‘illegible’’ and members of Late Disclosure Fees 3110(e). requires resubmission of the assessed for the late filing of responses fingerprints. In such circumstances, the to Form U4 Question 14M (unsatisfied 2. Statutory Basis firm’s procedures should provide that judgments or liens) if the following FINRA believes that the proposed rule the verification should be completed as conditions are met: (1) The Form U4 change is consistent with the provisions soon as is practical. amendment is filed between April 24, 19 FINRA is proposing to implement of Section 15A(b)(6) of the Act, which 2014 and March 31, 2015; (2) the requires, among other things, that proposed FINRA Rule 3110(e) on judgment or lien is under $5,000 and December 1, 2014, which coincides with FINRA rules must be designed to more than five years old (from the date prevent fraudulent and manipulative the implementation date for the the judgment or lien is filed with a court consolidated FINRA supervision rules. acts and practices, to promote just and as reported on Form U4 Judgment/Lien FINRA will announce the effective date equitable principles of trade, and, in DRP, Question 4); and (3) the registered of proposed FINRA Rule 3110(e) in a general, to protect investors and the person was not employed by, or Regulatory Notice to be published no public interest. FINRA believes that the otherwise associated with, the firm later than 90 days following proposed rule change will streamline filing the amended Form U4 on the date Commission approval. and clarify members’ obligations the judgment or lien was filed with the relating to background investigations, III. Proposed FINRA Rule 3110.15 court. FINRA believes that such a which will, in turn, improve members’ As announced by FINRA on April 24, refund would provide members with an compliance efforts. Further, the 2014, to verify against public records additional incentive to report proposed rule change’s requirement to whether material financial information information relating to unsatisfied adopt written procedures to verify the has been timely and accurately reported judgments or liens that are older and of accuracy and completeness of the to the CRD system via the Form U4, a less significant amount, and it would information contained in an applicant’s FINRA is performing a one-time search save FINRA the time and resources Form U4, including the requirement to of specific financial public records, expended in contacting firms and conduct a public records search, will including bankruptcies, judgments and requesting that such information be enhance the accuracy of the information liens, on all registered persons.15 In reported. Firms would still be charged in the CRD system and ultimately in addition, as part of this effort and to a Disclosure Processing Fee ($110.00) BrokerCheck, which is critical from both verify against public records whether for filing amended Form U4 disclosure a regulatory and an investor protection material criminal information has been information. standpoint. In addition, FINRA believes accurately reported to the CRD system As noted above, proposed FINRA that the proposed rule change to via the Form U4, FINRA is performing Rule 3110.15 has a retroactive effective establish a temporary program under an ongoing search of specific criminal date of April 24, 2014, and it will FINRA Rule 3110.15 that will issue a public records on a risk-based basis and automatically sunset on March 31, 2015. refund to members of Late Disclosure on any registered person who has not Members will not be able to use the Fees would incentivize members to been fingerprinted within the past five program after March 31, 2015. FINRA report information relating to years. FINRA is using one or more believes that it is appropriate for unsatisfied judgments or liens that are national information providers in the proposed FINRA Rule 3110.15 to have older and of a less significant amount a retroactive effective date of April 24, and would save FINRA the time and particular third-party service and a firm’s use of 2014 because that is the date that FINRA regulatory resources expended in BIG’s services, or the services of any other specific announced its plan to perform a search provider, would not be deemed to be a safe harbor by FINRA. of specified public records to verify the 18 FINRA is not proposing to incorporate the 15 See FINRA Board Approves Amendment to requirement of NYSE Rule 345.11 to verify the Supervision Rule Requiring Firms to Conduct 16 The Disclosure Processing Fee is $110 for filing information contained in the employment Background Checks on Registration Applicants, amended Form U4 disclosure information. questionnaire or application of persons who are not FINRA News Release, April 24, 2014, http:// 17 The Late Disclosure Fee is $100 for the first day required to be registered because this requirement www.finra.org/Newsroom/NewsReleases/2014/ a form filing is late and $25 for each subsequent is redundant of SEA Rule 17a–3(a)(12)(i). P493588. day, up to a maximum of $1,575. 19 15 U.S.C. 78o–3(b)(6).

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contacting firms and requesting that provider to conduct such a search. not the same as the public records such information be reported. However, some members would likely search discussed in the proposed rule incur new costs to comply with the change. However, to the extent that the B. Self-Regulatory Organization’s proposed requirement. number of voluntary pre-hire checks is Statement on Burden on Competition FINRA is aware that many informative of the anticipated number of FINRA does not believe that the information providers, including the public record searches, FINRA estimates proposed rule change will result in any major national credit reporting agencies, that the average annual cost of burden on competition that is not provide such public records search complying with the requirement would necessary or appropriate in furtherance services. For instance, as noted above, be in the range of: (1) $10,837 to $14,088 of the purposes of the Act. FINRA has contracted with BIG to per firm for large firms; (2) $800 to FINRA notes that the proposed rule provide competitive pricing to members $1,040 per firm for mid-size firms; and change transfers requirements from currently at a cost of $10 to $13 per (3) $88 to $115 per firm for small firms. NASD Rule 3010(e), NYSE Rule 345.11 applicant (depending on volume) for a FINRA understands that these costs and NYSE Rule Interpretation 345.11/01 public records search. FINRA is will vary significantly depending on the and/02 unchanged into the providing two sample cost estimates for size of a firm and its registration activity Consolidated Rulebook and, as such, large, mid-size and small firms21 using in any given year. In addition, FINRA those transferred requirements do not the services of providers such as BIG; notes that, in some instances, a public impose any new burdens for members one based on the annual average records search may uncover matters that that are already subject to the current number of applicants for registration, might require further investigation for rules. and the other based on the annual which the member may incur additional The proposed rule change would average number of pre-hire requests. costs. require members to adopt written FINRA estimates that there are With respect to the temporary procedures that are reasonably designed approximately 126,800 applicants for program under proposed FINRA Rule to verify the accuracy and completeness registration each year (based upon the 3110.15, FINRA notes that members of the information contained in an average from the last four years). FINRA currently are required to verify the applicant’s Form U4 no later than 30 estimates that 75 percent of these accuracy and completeness of the calendar days after the form is filed with applicants (approximately 95,100) are information contained in the Form U4 FINRA, including, at a minimum, from 172 large firms and that 10 percent and to amend the form as necessary. procedures to conduct (either directly or of these applicants (approximately The temporary program would through a third-party service provider) a 12,700) are from 205 mid-size firms. encourage members to comply with search of reasonably available public FINRA is aware that many of these large their existing obligations and allow records to verify the accuracy and and mid-size firms already have a them to receive a refund of Late completeness of the information. FINRA expects that firms already review process in place that requires a Disclosure Fees if the conditions have a review process in place to verify public records search, and as a result specified in proposed FINRA Rule the information contained in the Form the proposed rule change would not 3110.15 are satisfied. As such, FINRA U4 for applicants for registration impose significant burdens on these does not believe that the temporary because currently the person signing the firms. FINRA estimates that the program will result in any burden on form on behalf of the firm must certify remaining 15 percent of applicants members. that he or she has taken appropriate (approximately 19,000) are from 2,900 C. Self-Regulatory Organization’s steps to verify the accuracy and small firms. Based on the per firm Statement on Comments on the completeness of the information average of applicants for registration Proposed Rule Change Received From contained in and with that form. with large, medium and small firms, Members, Participants, or Others Therefore, the requirement to adopt FINRA estimates that the average cost of Written comments were neither written procedures that are reasonably complying with the requirement would solicited nor received. designed to verify the accuracy and be in the range of: (1) $5,529 to $7,188 completeness of the information per year for large firms; (2) $620 to $805 III. Date of Effectiveness of the contained in an applicant’s Form U4 per year for mid-size firms; and (3) $66 Proposed Rule Change and Timing for should not create an unreasonable to $85 per year for small firms. Commission Action FINRA estimates that there are burden for members. Within 45 days of the date of With respect to the requirement to approximately 219,000 pre-hire search publication of this notice in the Federal conduct a public records search, FINRA requests on the CRD system each year Register or within such longer period (i) is aware that many of the large and mid- (based upon the average from the last as the Commission may designate up to size firms already have a review process four years). FINRA estimates that 85 90 days of such date if it finds such in place that requires a search of public percent of the pre-hire checks longer period to be appropriate and records,20 and as a result the proposed (approximately 186,400) are from 172 publishes its reasons for so finding or rule change would not impose large firms and that 7.5 percent of the (ii) as to which the self-regulatory significant burdens on these firms. pre-hire checks (approximately 16,400) organization consents, the Commission Further, FINRA does not believe that are from 205 mid-size firms. The remaining 7.5 percent (approximately will: this requirement would be unduly (A) by order approve or disapprove burdensome for members given the 16,400) are from 1,855 small firms. FINRA notes that these pre-hire check such proposed rule change, or availability of online access to public (B) institute proceedings to determine estimates are based on the voluntary records databases and the relatively low whether the proposed rule change checks firms conduct on the CRD cost of hiring a third-party service should be disapproved. system, which are free of charge, and are 20 As defined in the FINRA By-Laws, a ‘‘large IV. Solicitation of Comments firm’’ is a member that has 500 or more registered 21 As defined in the FINRA By-Laws, a ‘‘small persons and a ‘‘mid-size firm’’ is a member that has firm’’ is a member that has at least 1 and no more Interested persons are invited to at least 151 and no more than 499 registered than 150 registered persons. See FINRA By-Laws, submit written data, views, and persons. See FINRA By-Laws, Article I(y) and (cc). Article I(ww). arguments concerning the foregoing,

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including whether the proposed rule SECURITIES AND EXCHANGE abroad for temporary exhibition within change is consistent with the Act. COMMISSION the United States, are of cultural Comments may be submitted by any of significance. The objects are imported [File No. 500–1] the following methods: pursuant to loan agreements with the foreign owners or custodians. I also Electronic Comments In the Matter of Nudg Media Inc.; Order of Suspension of Trading determine that the exhibition or display • Use the Commission’s Internet of the exhibit objects at the Museum of comment form (http://www.sec.gov/ October 1, 2014. Modern Art, New York, New York, from rules/sro.shtml); or It appears to the Securities and on or about December 14, 2014, until on • Exchange Commission that there is a or about April 5, 2015, and at possible Send an email to rule-comments@ lack of current and accurate information additional exhibitions or venues yet to sec.gov. Please include File Number SR– concerning the securities of Nudg Media be determined, is in the national FINRA–2014–038 on the subject line. Inc. (‘‘Nudg’’) because of questions interest. I have ordered that Public Paper Comments regarding the accuracy of assertions by Notice of these Determinations be Nudg and by others, in press releases to published in the Federal Register. • Send paper comments in triplicate investors concerning, among other FOR FURTHER INFORMATION CONTACT: For to Brent J. Fields, Secretary, Securities things: the company’s assets and further information, including a list of and Exchange Commission, 100 F Street business plan. Nudg Media Inc. is a the imported objects, contact Paul W. NE., Washington, DC 20549–1090. Nevada corporation with its principal Manning, Attorney-Adviser, Office of All submissions should refer to File place of business located in Carson City, the Legal Adviser, U.S. Department of Number SR–FINRA–2014–038. This file Nevada. Its stock is quoted on OTC State (telephone: 202–632–6469). The number should be included on the Link, operated by OTC Markets Group mailing address is U.S. Department of subject line if email is used. To help the Inc., under the ticker: NDDG. State, SA–5, L/PD, Fifth Floor (Suite The Commission is of the opinion that Commission process and review your 5H03), Washington, DC 20522–0505. the public interest and the protection of comments more efficiently, please use investors require a suspension of trading Dated: September 23, 2014. only one method. The Commission will in the securities of the above-listed Kelly Keiderling, post all comments on the Commission’s company. Principal Deputy Assistant Secretary, Bureau Internet Web site (http://www.sec.gov/ Therefore, it is ordered, pursuant to of Educational and Cultural Affairs, rules/sro.shtml). Copies of the Section 12(k) of the Securities Exchange Department of State. submission, all subsequent Act of 1934, that trading in the [FR Doc. 2014–23628 Filed 10–2–14; 8:45 am] amendments, all written statements securities of the above-listed company is BILLING CODE 4710–05–P with respect to the proposed rule suspended for the period from 9:30 a.m. change that are filed with the EDT, on October 1, 2014 through 11:59 Commission, and all written p.m. EDT, on October 14, 2014. DEPARTMENT OF STATE communications relating to the [Public Notice: 8894] proposed rule change between the By the Commission. Kevin M. O’Neill, Commission and any person, other than Culturally Significant Objects Imported those that may be withheld from the Deputy Secretary. for Exhibition Determinations: ‘‘V.S. public in accordance with the [FR Doc. 2014–23747 Filed 10–1–14; 4:15 pm] Gaitonde: Painting as Process, provisions of 5 U.S.C. 552, will be BILLING CODE 8011–01–P Painting as Life’’ Exhibition available for Web site viewing and printing in the Commission’s Public SUMMARY: Notice is hereby given of the Reference Room, 100 F Street NE., DEPARTMENT OF STATE following determinations: Pursuant to Washington, DC 20549, on official the authority vested in me by the Act of business days between the hours of [Public Notice 8896] October 19, 1965 (79 Stat. 985; 22 U.S.C. 2459), Executive Order 12047 of March 10:00 a.m. and 3:00 p.m. Copies of such Culturally Significant Objects Imported 27, 1978, the Foreign Affairs Reform and filing also will be available for for Exhibition inspection and copying at the principal Restructuring Act of 1998 (112 Stat. office of FINRA. All comments received Determinations: ‘‘The Forever Now: 2681, et seq.; 22 U.S.C. 6501 note, et will be posted without change; the Contemporary Painting in an Atemporal seq.), Delegation of Authority No. 234 of Commission does not edit personal World’’ October 1, 1999, Delegation of Authority identifying information from SUMMARY: Notice is hereby given of the No. 236–3 of August 28, 2000 (and, as submissions. You should submit only following determinations: Pursuant to appropriate, Delegation of Authority No. information that you wish to make the authority vested in me by the Act of 257 of April 15, 2003), I hereby available publicly. All submissions October 19, 1965 (79 Stat. 985; 22 U.S.C. determine that the objects to be should refer to File Number SR–FINRA– 2459), Executive Order 12047 of March included in the exhibition ‘‘V.S. 2014–038 and should be submitted on 27, 1978, the Foreign Affairs Reform and Gaitonde: Painting as Process, Painting or before October 24, 2014. Restructuring Act of 1998 (112 Stat. as Life,’’ imported from abroad for 2681, et seq.; 22 U.S.C. 6501 note, et temporary exhibition within the United For the Commission, by the Division of seq.), Delegation of Authority No. 234 of States, are of cultural significance. The Trading and Markets, pursuant to delegated authority.22 October 1, 1999, and Delegation of objects are imported pursuant to loan Authority No. 236–3 of August 28, 2000 agreements with the foreign owners or Kevin M. O’Neill, (and, as appropriate, Delegation of custodians. I also determine that the Deputy Secretary. Authority No. 257 of April 15, 2003), I exhibition or display of the exhibit [FR Doc. 2014–23567 Filed 10–2–14; 8:45 am] hereby determine that the objects to be objects at the Solomon R. Guggenheim BILLING CODE 8011–01–P included in the exhibition ‘‘The Forever Museum, New York, NY, from on or Now: Contemporary Painting in an about October 24, 2014, until on or 22 17 CFR 200.30–3(a)(12). Atemporal World,’’ imported from about February 11, 2015, and at possible

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additional exhibitions or venues yet to State, SA–5, L/PD, Fifth Floor (Suite participation in the extension of credit be determined, is in the national 5H03), Washington, DC 20522–0505. in connection with the export of any interest. I have ordered that Public Dated: September 24, 2014. goods or services to Dettin SpA. 3. Banking transactions. Any transfers Notice of these Determinations be Kelly Keiderling, published in the Federal Register. of credit or payments between financial Principal Deputy Assistant Secretary, Bureau institutions or by, through, or to any FOR FURTHER INFORMATION CONTACT: For of Educational and Cultural Affairs, further information, including a list of Department of State. financial institution, to the extent that such transfers or payments are subject to the exhibit objects, contact Julie [FR Doc. 2014–23627 Filed 10–2–14; 8:45 am] the jurisdiction of the United States and Simpson, Attorney-Adviser, Office of BILLING CODE 4710–05–P the Legal Adviser, U.S. Department of involve any interest of Dettin SpA, shall State (telephone: 202–632–6467). The be prohibited. mailing address is U.S. Department of DEPARTMENT OF STATE 4. Property transactions. It shall be State, SA–5, L/PD, Fifth Floor (Suite prohibited to: 5H03), Washington, DC 20522–0505. [Public Notice: 8897] a. Acquire, hold, withhold, use, transfer, withdraw, transport, import, or Dated: September 29, 2014. Persons on Whom Sanctions Have export any property that is subject to the Kelly Keiderling, Been Imposed Under the Iran jurisdiction of the United States and Principal Deputy Assistant Secretary, Bureau Sanctions Act of 1996 and the Iran with respect to which Dettin SpA has of Educational and Cultural Affairs, Freedom and Counter-Proliferation Act any interest; Department of State. of 2012 b. Deal in or exercise any right, [FR Doc. 2014–23629 Filed 10–2–14; 8:45 am] AGENCY: Department of State. power, or privilege with respect to such BILLING CODE 4710–05–P property; or ACTION: Notice. c. Conduct any transactions involving such property. DEPARTMENT OF STATE SUMMARY: The Secretary of State has determined, pursuant to authority 5. Foreign Exchange. Any transactions [Public Notice 8895] delegated by Presidential Memorandum in foreign exchange that are subject to of October 9, 2012 (the ‘‘ISA Delegation the jurisdiction of the United States and Culturally Significant Object Imported Memorandum’’), that the following in which Dettin SpA has any interest, for Exhibition Determinations: persons have engaged in sanctionable shall be prohibited. ‘‘Charles Ray: Sculpture, 1997–2014’’ activity described in section 5(a)(6) of If the Secretary determines that a person has engaged in sanctionable SUMMARY: Notice is hereby given of the the Iran Sanctions Act of 1996 (Pub. L. 104–172) (50 U.S.C. 1701 note) (‘‘ISA’’), activity under Section 1244(d) of IFCA, following determinations: Pursuant to the Secretary is required to impose 5 of the authority vested in me by the Act of as amended, and that certain sanctions are imposed as a result: Dettin SpA. the 12 sanctions provided for in Section October 19, 1965 (79 Stat. 985; 22 U.S.C. 6 of ISA. Pursuant to section 1244(d) of 2459), Executive Order 12047 of March The Secretary of State has also determined, pursuant to authority IFCA and the IFCA Delegation 27, 1978, the Foreign Affairs Reform and Memorandum, the Secretary determined Restructuring Act of 1998 (112 Stat. delegated by Presidential Memorandum of June 3, 2013 (the ‘‘IFCA Delegation that the following sanctions as 2681, et seq.; 22 U.S.C. 6501 note, et described in section 6 of ISA are to be seq.), Delegation of Authority No. 234 of Memorandum’’), that the following persons have engaged in sanctionable imposed on Goldentex FZE: October 1, 1999, Delegation of Authority 1. Ban on Investment in Equity or No. 236–3 of August 28, 2000 (and, as activity described in section 1244 of the Iran Freedom and Counter-Proliferation Debt of Sanctioned Person. Investment appropriate, Delegation of Authority No. by U.S. persons in the debt or equity of 257 of April 15, 2003), I hereby Act of 2012 (Pub. L. 112–239) (‘‘IFCA’’), and that certain sanctions are imposed Goldentex FZE shall be prohibited. determine that the object to be included 2. Loans from United States Financial as a result: Goldentex FZE. in the exhibition ‘‘Charles Ray: Institutions. U.S. financial institutions Sculpture, 1997–2014,’’ imported from DATES: Effective Date: These sanctions shall be prohibited from making loans abroad for temporary exhibition within actions are effective on August 28, 2014. or providing credits to Goldentex FZE the United States, is of cultural FOR FURTHER INFORMATION CONTACT: On totaling more than $10,000,000 in any significance. The object is imported general issues: Paul Pavwoski, Office of 12-month period unless Goldentex FZE pursuant to a loan agreement with the Economic Sanctions Policy and is engaged in activities to relieve human foreign owner or custodian. I also Implementation, Department of State, suffering and the loans or credits are determine that the exhibition or display Telephone: (202) 647–8836. provided for such activities. of the exhibit object at The Art Institute SUPPLEMENTARY INFORMATION: Pursuant 3. Banking Transactions. Any of Chicago, Chicago, IL, from on or to section 5(a)(6) of ISA and the ISA transfers of credit or payments between about May 17, 2015, until on or about Delegation Memorandum, the Secretary financial institutions or by, through, or October 4, 2015, and at possible determined that the following sanctions, to any financial institution, to the extent additional exhibitions or venues yet to as described in section 6 of ISA, are to that such transfers or payments are be determined, is in the national be imposed on Dettin SpA: subject to the jurisdiction of the United interest. I have ordered that Public 1. Procurement sanction. The United States and involve any interest of Notice of these Determinations be States Government shall not procure, or Goldentex FZE, shall be prohibited. published in the Federal Register. enter into any contract for the 4. Property Transactions. It shall be FOR FURTHER INFORMATION CONTACT: For procurement of, and goods or services prohibited to: further information, including a list of from Dettin SpA. a. Acquire, hold, withhold, use, the exhibit object, contact Julie 2. Export-Import Bank assistance for transfer, withdraw, transport, import, or Simpson, Attorney-Adviser, Office of exports. The Export-Import Bank of the export any property that is subject to the the Legal Adviser, U.S. Department of United States shall not give approval to jurisdiction of the United States and State (telephone: 202–632–6467). The the issuance of any guarantee, with respect to which Goldentex FZE mailing address is U.S. Department of insurance, extension of credit, or has any interest;

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b. Deal in or exercise any right, Public Notice 7585, 76 FR 56866, SUPPLEMENTARY INFORMATION: The power, or privilege with respect to such September 14, 2011). Paperwork Reduction Act of 1995 property; or • Petro´leos de Venezuela S.A. (a.k.a. (PRA), Public Law 104–13, sec. 2, 109 c. Conduct any transactions involving PDVSA) (see Public Notice 7585, 76 FR Stat. 163 (1995) (codified as revised at such property. 56866, September 14, 2011). 44 U.S.C. 3501–3520), and its 5. Foreign Exchange Transactions. • Royal Oyster Group (see Public implementing regulations, 5 CFR part Transactions in foreign exchange that Notice 7585, 76 FR 56866, September 1320, require Federal agencies to issue are subject to the jurisdiction of the 14, 2011). two notices seeking public comment on United States in which Goldentex FZE • Speedy Ship (a.k.a. SPD) (see Public information collection activities before has any interest are prohibited. Notice 7585, 76 FR 56866, September OMB may approve paperwork packages. The sanctions described above with 14, 2011). 44 U.S.C. 3506, 3507; 5 CFR 1320.5, • respect to Dettin SpA and Goldentex Sytrol (see Public Notice 8040, 77 1320.8(d)(1), 1320.12. On June 30, 2014, FZE shall remain in effect until FR 59034, September 25, 2012). FRA published a 60-day notice in the • otherwise directed pursuant to the Zhuhai Zhenrong Company (see Federal Register soliciting comments on provisions of ISA, IFCA, or other Public Notice 7776, 77 FR 4389, Jan. 27, the ICR for which the agency is seeking applicable authority. Pursuant to the 2012). OMB approval. See 79 FR 36860. The authority delegated to the Secretary of Charles H. Rivkin, ICR relates to the Emergency Order (EO) State in the ISA and IFCA Delegation Assistant Secretary for Economic and issued on May 7, 2014, by the Secretary Memoranda, relevant agencies and Business Affairs. of Transportation (Docket No. DOT– instrumentalities of the United States [FR Doc. 2014–23626 Filed 10–2–14; 8:45 am] OST–2014–0067). The EO requires Government shall take all appropriate BILLING CODE 4710–07–P affected railroad carriers to provide measures within their authority to carry certain information to the State out the provisions of this notice. The Emergency Response Commissions Secretary of the Treasury is taking (SERCs) for each State in which they DEPARTMENT OF TRANSPORTATION appropriate action to implement the operate individual trains carrying 1 sanctions for which authority has been Federal Railroad Administration million gallons or more of petroleum delegated to the Secretary of the crude oil sourced from the Bakken shale Treasury pursuant to the Delegation [Docket No. FRA–2014–0011–N–18] formation in the Williston Basin Memorandum and Executive Order (Bakken crude oil). FRA received one Proposed Agency Information 13574 of May 23, 2011. comment in response to its 60-day Collection Activities; Comment The following constitutes a current notice. Request list, as of this date, of persons on whom On August 29, 2014, FRA received a ISA sanctions have been imposed. The AGENCY: Federal Railroad joint comment from the Association of particular sanctions imposed on an Administration (FRA), Department of American Railroads (AAR) and the individual person are identified in the Transportation (DOT). American Short Line and Regional relevant Federal Register Notice. ACTION: Notice and request for Railroad Association (ASLRRA) • Belarusneft (see Public Notice 7408, comments. (Commenters). The Commenters raised 76 FR 18821, April 5, 2011). three main points. First, the • BimehMarkazi-Central Insurance of SUMMARY: In compliance with the Commenters assert that the crude oil Iran (see Public Notice 8268, 76 FR Paperwork Reduction Act of 1995, this routing information the EO requires 21183, April 9, 2013). notice announces that the Information railroads to provide to SERCs is • Cambis, Dimitris (see Public Notice Collection Request (ICR) abstracted sensitive information from a security 8268, 76 FR 21183, April 9, 2013). below requesting regular review is being • Dettin SpA. perspective and should only be • forwarded to the Office of Management available to persons with a need-to- FAL Oil Company Limited (see and Budget (OMB) for review and Public Notice 7776, 77 FR 4389, Jan. 27, know the information (e.g., emergency comment. The ICR describes the nature responders and emergency response 2012). of the information collection and its • Ferland Company Limited (see planners). Second, the Commenters expected burden. The Federal Register assert that the same information is Public Notice 8352, 78 FR 35351, June notice with a 60-day comment period 12, 2013). commercially-sensitive information that • soliciting comments on the following should remain confidential and not be Goldentex FZE. collection of information was published • Impire Shipping (see Public Notice publically available. Finally, the on June 30, 2014 (79 FR 36860). 8268, 76 FR 21183, April 9, 2013). Commenters assert that the EO is not • Jam Petrochemical Company (see DATES: Comments must be submitted on serving a useful purpose as the Public Notice 8352, 78 FR 35351, June or before November 3, 2014. information required by the EO to be 12, 2013). FOR FURTHER INFORMATION CONTACT: Mr. provided to the SERCs is already • Kish Protection and Indemnity Robert Brogan, Office of Planning and provided to emergency responders (a.k.a. Kish P&I) (see Public Notice 8268, Evaluation Division, RRS–21, Federal through AAR Circular OT–55–N. See 76 FR 21183, April 9, 2013). Railroad Administration, 1200 New AAR, ‘‘Circular OT–55–N: • Kuo Oil (S) Pte. Ltd. (see Public Jersey Ave. SE., Mail Stop 25, Recommended Railroad Operating Notice 7776, 77 FR 4389, Jan. 27, 2012). Washington, DC 20590 (Telephone: Practices For Transportation of • NaftiranIntertrade Company (a.k.a. (202) 493–6292), or Ms. Kimberly Hazardous Materials,’’ (Aug. 5, 2013) NICO) (see Public Notice 7197, 75 FR Toone, Office of Information (OT–55). The Commenters specifically 62916, Oct. 13, 2010). Technology, RAD–20, Federal Railroad suggest that the EO ‘‘be withdrawn • Niksima Food and Beverage JLT Administration, 1200 New Jersey Ave. because it has resulted in information (see Public Notice 8352, 78 FR 35351, SE., Mail Stop 35, Washington, DC confidential from security, safety, and June 12, 2013). 20590 (Telephone: (202) 493–6132). business perspectives being made • Petrochemical Commercial (These telephone numbers are not toll- public and because the objective of the Company International (a.k.a. PCCI) (see free.) emergency order, informing government

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officials of the transportation of Bakken Although DOT and FRA in particular, ‘‘the top 25 hazardous commodities crude oil through their jurisdictions, recognize the Commenters concerns transported through the community in was already being met, and would relating to the potential confidentiality rank order.’’ Large quantities of Bakken continue to be met, if the EO is of the information required to be crude oil in single trains may or may not withdrawn.’’ AAR and ASLRRA provided under the EO, DOT notes that be part of this top-25 commodity continued: the information does not fall into any of ranking in any given community. In The EO requires that railroads make crude the fifteen categories of Sensitive contrast, by mandating in the EO that oil routing information available to [SERCs]. Security Information (SSI) defined by railroads provide the identified Specifically, the EO requires that a railroad either DOT or Transportation Security information on the transportation of provide to the SERC in each state in which Administration (TSA) regulations. See large quantities of Bakken crude oil to it operates trains transporting 1,000,000 49 CFR parts 15 and 1520. Further, at States, the EO helps ensure that local gallons or more of Bakken crude oil this time, DOT finds no basis to emergency responders have access to information on the number of such trains conclude that the public disclosure of that information. Further, the traveling per week through each county and the information is detrimental to information that the EO mandates the routes over which the trains operate. transportation safety. DOT has While AAR and ASLRRA do not believe it railroads to provide to States is very was DOT’s intention, the EO resulted in the consulted with the Department of specific, limited to one commodity information required to be disclosed by the Homeland Security and TSA in making (Bakken crude oil), more detailed than EO to be made publicly available. Such a this decision. Accordingly, the Secretary the information voluntarily shared result is hardly a necessary consequence of of Transportation has not designated the pursuant to OT–55, and specifically informing government officials of the information as SSI. designed to ensure that local emergency transportation of Bakken crude oil through The Commenters are correct in that responders are provided sufficient their jurisdictions. Railroads were already DOT’s intent in issuing the EO was not informing government officials of the information to confirm that they have an to cause the widespread public understanding of the volume, route, and hazardous materials transported through disclosure of the information, but rather their communities pursuant to AAR’s frequency with which Bakken crude oil circular governing operating practices for the to ensure that emergency responders is transported through their transportation of hazardous materials, OT– have an understanding of the volume jurisdictions so that they can prepare 55.1 and frequency with which Bakken crude emergency response plans and resources In their comment, AAR and ASLRRA oil is transported through their accordingly. For these reasons, FRA further remarked: communities so that they can prepare strongly disagrees with the Commenters’ their response plans and resources Unfortunately, in so far as confidentiality assertion that the EO is not serving a is concerned, the result of the EO has proven accordingly. DOT notes that the useful purpose. Commenters do not document any inconsistent with DOT’s intent. Since SERCs Finally, DOT notes that a pending actual harm that has occurred by the in many states have contended they have no Pipeline and Hazardous Materials Safety public release of the information choice but to make the routing information Administration Notice of Proposed public because of the laws governing SERCs, required to be provided to the States Rulemaking (NPRM) proposes to codify the SERCs have refused to keep crude oil under the EO. That being said, DOT into Federal regulations the terms of the routing information confidential. understands that railroads may have an EO. See 79 FR 45016 (Aug. 1, 2014). The The EO is not needed to provide appropriate claim that the information emergency responders with notice that crude public comment period on this NPRM is required to be provided to the SERCs oil shipments are being transported through constitutes confidential business scheduled to close on September 30, their communities because railroads have 2014. It would be premature to change been providing that information for many information, but the merit of such claims may differ by State depending on the terms of the EO now and prohibit years. OT–55 provides that railroads will give the disclosure of the specified emergency response agencies and planning each State’s open records and sunshine groups information on the hazardous laws. For these reasons, FRA concludes information to SERCs before those terms materials transported through their that the information required to be undergo full public scrutiny and communities. Class I railroads and short lines provided to the SERCs under the EO is comment through the rulemaking have notified communities as provided by neither security-sensitive nor process. OT–55. Before OMB decides whether to For emergency response planning commercially-sensitive information that is protected by Federal law. approve these proposed collections of purposes, there is no need to disclose the information, it must provide 30 days for actual route taken by a crude oil train. With regard to the Commenters’ Notifying an emergency responder of the assertion that the EO is not serving a public comment. 44 U.S.C. 3507(b); 5 hazardous materials transported through the useful purpose as the information CFR 1320.12(d). Federal law requires community, including crude oil, is sufficient. required by the EO to be provided to the OMB to approve or disapprove Railroading is a highly competitive States is already available to emergency paperwork packages between 30 and 60 business. A railroad’s traffic is susceptible to responders through OT–55, FRA notes days after the 30-day notice is competing railroads and competing modes. that there are important distinctions published. 44 U.S.C. 3507(b)–(c); 5 CFR As is the case with any company engaged in between the information required to be 1320.12(d); see also 60 FR 44978, 44983, a competitive business, railroads keep their provided by railroads under the EO and Aug. 29, 1995. OMB believes that the customers confidential to the extent possible. 30-day notice informs the regulated Forced disclosure of routing information the nature and content of the provides a means for competitors to ascertain information provided pursuant to OT– community to file relevant comments a railroad’s customers and constitutes the 55. First, the railroad’s sharing of and affords the agency adequate time to disclosure of confidential commercial information contemplated by OT–55 is digest public comments before it information. only voluntary. Second, the railroad’s renders a decision. 60 FR 44983, Aug. voluntary sharing of information under 29, 1995. Therefore, respondents should 1 OT–55 provides that AAR members will provide OT–55 is only upon written request of submit their respective comments to emergency response agencies or emergency emergency response or emergency OMB within 30 days of publication to response planning groups with ‘‘commodity flow information covering at a minimum the top 25 planning groups. Third, the information best ensure having their full effect. 5 hazardous commodities transported through the voluntarily shared pursuant to OT–55 is CFR 1320.12(c); see also 60 FR 44983, community in rank order.’’ ‘‘commodity flow information’’ covering Aug. 29, 1995.

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The summary below describes the and are prepared to respond to description of the proposed service, is nature of the ICR and the expected accidents involving such trains should listed below. burden. The revised request is being they occur. DATES: Submit comments on or before submitted for clearance by OMB as Affected Public: Businesses November 3, 2014. required by the PRA. (Railroads). Title: Secretary of Transportation Form(s): N/A. ADDRESSES: Comments should refer to Emergency Order Docket No. OST– Annual Estimated Burden: 3,778 docket number MARAD–2014–0125. 2014–0067. hours. Written comments may be submitted by OMB Control Number: 2130–0604. Addressee: Send comments regarding hand or by mail to the Docket Clerk, Abstract: On May 7, 2014, the this information collection to the Office U.S. Department of Transportation, Secretary of Transportation issued of Information and Regulatory Affairs, Docket Operations, M–30, West Emergency Order Docket No. DOT– Office of Management and Budget, 725 Building Ground Floor, Room W12–140, OST–2014–0067 (EO), requiring affected Seventeenth Street NW., Washington, 1200 New Jersey Avenue SE., railroad carriers to provide certain DC 20503, Attention: FRA Desk Officer. Washington, DC 20590. You may also information to the State Emergency Comments may also be sent via email to send comments electronically via the Response Commissions (SERCs) for each OMB at the following address: oira_ Internet at http://www.regulations.gov. State in which their trains carrying 1 [email protected]. All comments will become part of this million gallons or more of Bakken crude Comments are invited on the docket and will be available for oil travel. This EO is available through following: Whether the proposed inspection and copying at the above the Department’s public docket system collections of information are necessary address between 10 a.m. and 5 p.m., at www.regulations.gov, under Docket for the proper performance of the E.T., Monday through Friday, except No. DOT–OST–2014–0067. The EO took functions of the Department, including federal holidays. An electronic version effect immediately upon issuance, whether the information will have of this document and all documents although affected railroads were practical utility; the accuracy of the entered into this docket is available on permitted 30 days to provide the Department’s estimates of the burden of the World Wide Web at http:// required information to the SERCs. The the proposed information collections; www.regulations.gov. EO is the DOT’s direct and proactive ways to enhance the quality, utility, and response to a recent series of train FOR FURTHER INFORMATION CONTACT: clarity of the information to be Linda Williams, U.S. Department of accidents involving the transportation of collected; and ways to minimize the petroleum crude oil, a hazardous Transportation, Maritime burden of the collections of information Administration, 1200 New Jersey material the transportation of which is on respondents, including the use of regulated by the DOT. The most recent Avenue SE, Room W23–453, automated collection techniques or accident occurred on April 30, 2014, Washington, DC 20590. Telephone 202– other forms of information technology. when a train transporting petroleum 366–0903, Email Linda.Williams@ A comment to OMB is best assured of crude oil derailed in Lynchburg, dot.gov. having its full effect if OMB receives it Virginia and released approximately within 30 days of publication of this SUPPLEMENTARY INFORMATION: As 30,000 gallons of its contents into the notice in the Federal Register. described by the applicant the intended James River. Further, the EO explains service of the vessel CIAO is: that, with the rising demand for rail Authority: 44 U.S.C. 3501–3520. Intended Commercial Use of Vessel: transportation of petroleum crude oil Issued in Washington, DC on September ‘‘yacht charters’’ throughout the United States, the risk of 29, 2014. Geographic Region: Maine, New rail incidents has increased Erin McCartney, commensurate with the increase in the Hampshire, Massachusetts, Rhode Acting Chief Financial Officer. Island, Connecticut, New York, New volume of the material shipped and that [FR Doc. 2014–23511 Filed 10–2–14; 8:45 am] there have been several significant Jersey, Delaware, Maryland, Virginia, BILLING CODE 4910–06–P derailments in both the U.S. and Canada North Carolina, South Carolina, Georgia, over the last several months causing Florida, Alabama, Louisiana, Texas deaths and property and environmental DEPARTMENT OF TRANSPORTATION The complete application is given in damage that involved petroleum crude DOT docket MARAD–2014–0125 at oil. DOT emergency orders are rare and Maritime Administration http://www.regulations.gov. Interested the EO itself describes the most recent parties may comment on the effect this accidents and circumstances leading the [Docket No. MARAD–2014 0125] action may have on U.S. vessel builders or businesses in the U.S. that use U.S.- agency to issue the EO. The collection Requested Administrative Waiver of flag vessels. If MARAD determines, in of information included under this EO the Coastwise Trade Laws: Vessel accordance with 46 U.S.C. 12121 and is aimed at ensuring that railroads that CIAO; Invitation for Public Comments transport in a single train a large MARAD’s regulations at 46 CFR Part quantity of petroleum crude oil (1 AGENCY: Maritime Administration, 388, that the issuance of the waiver will million gallons or more), particularly Department of Transportation. have an unduly adverse effect on a U.S.- crude oil from the Bakken shale ACTION: Notice. vessel builder or a business that uses formation in the Williston Basin, U.S.-flag vessels in that business, a provide certain information to the SUMMARY: As authorized by 46 U.S.C. waiver will not be granted. Comments relevant SERCs in each State in which 12121, the Secretary of Transportation, should refer to the docket number of the railroad operates such trains. as represented by the Maritime this notice and the vessel name in order Ensuring that railroads provide this Administration (MARAD), is authorized for MARAD to properly consider the information to SERCs is critical to to grant waivers of the U.S.-build comments. Comments should also state ensuring that local and State emergency requirement of the coastwise laws under the commenter’s interest in the waiver responders are aware of the large certain circumstances. A request for application, and address the waiver quantities of crude oil that are being such a waiver has been received by criteria given in § 388.4 of MARAD’s transported through their jurisdictions MARAD. The vessel, and a brief regulations at 46 CFR Part 388.

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Privacy Act 592.502. The regulations set forth SUPPLEMENTARY INFORMATION: Under the Anyone is able to search the reporting requirements for persons who PRA of 1995 (Pub. L. 104–13; 44 U.S.C. electronic form of all comments import rough diamonds into the United 3501–3521), Federal agencies must received into any of our dockets by the States or export rough diamonds from obtain approval from the Office of name of the individual submitting the the U.S. Management and Budget (OMB) for each Affected Public: Businesses or other comment (or signing the comment, if collection of information they conduct for-profits. or sponsor. This request for comment is submitted on behalf of an association, Estimated Annual Burden Hours: being made pursuant to Section business, labor union, etc.). You may 1,750. review DOT’s complete Privacy Act 3506(c)(2)(A) of the PRA. Statement in the Federal Register Brenda Simms, With respect to the following published on April 11, 2000 (Volume Treasury PRA Clearance Officer. collection of information, VBA invites 65, Number 70; Pages 19477–78). [FR Doc. 2014–23583 Filed 10–2–14; 8:45 am] comments on: (1) whether the proposed Dated: September 18, 2014. BILLING CODE 4810–25–P collection of information is necessary By Order of the Maritime Administrator. for the proper performance of VBA’s Julie P. Agarwal, functions, including whether the DEPARTMENT OF VETERANS Secretary, Maritime Administration. information will have practical utility; AFFAIRS [FR Doc. 2014–23527 Filed 10–2–14; 8:45 am] (2) the accuracy of VBA’s estimate of the BILLING CODE 4910–81–P [OMB Control No. 2900–0677] burden of the proposed collection of information; (3) ways to enhance the Proposed Information Collection quality, utility, and clarity of the (Contract for Training and DEPARTMENT OF THE TREASURY information to be collected; and (4) Employment) Activity: Comment ways to minimize the burden of the Submission for OMB Review; Request collection of information on Comment Request AGENCY: Veterans Benefits respondents, including through the use of automated collection techniques or September 30, 2014. Administration, Department of Veterans Affairs. the use of other forms of information The Department of the Treasury will technology. submit the following information ACTION: Notice. collection request to the Office of SUMMARY: The Veterans Benefits Title: Contract for Training and Management and Budget (OMB) for Administration (VBA), Department of Employment (Chapter 31, Title 38 U.S. review and clearance in accordance Veterans Affairs (VA), is announcing an Code), VA Form 28–1903. with the Paperwork Reduction Act of opportunity for public comment on the OMB Control Number: 2900–0677. 1995, Public Law 104–13, on or after the proposed collection of certain date of publication of this notice. Type of Review: Extension of a information by the agency. Under the currently approved collection. DATES: Comments should be received on Paperwork Reduction Act (PRA) of or before November 3, 2014 to be 1995, Federal agencies are required to Abstract: VA Form 28–1903 is used to assured of consideration. publish notice in the Federal Register standardize contracts agreements ADDRESSES: Send comments regarding concerning each proposed collection of between VA and training facilities/ the burden estimate, or any other aspect information, including each proposed vendors providing vocational of the information collection, including extension of currently approved rehabilitation training and employment suggestions for reducing the burden, to collection, and allow 60 days for public to veterans. VA uses the data collected (1) Office of Information and Regulatory comment in response to the notice. This to ensure that Veterans are receiving Affairs, Office of Management and notice solicits comments for information training and employment as agreed in Budget, Attention: Desk Officer for needed to ensure contracts between VA the contract. and training facilities/vendors are Treasury, New Executive Office Affected Public: Business or other for- consistent with the Federal Procurement Building, Room 10235, Washington, DC profit. 20503, or email at OIRA_Submission@ Regulations. OMB.EOP.gov and (2) Treasury PRA DATES: Written comments and Estimated Annual Burden: 1,200 Clearance Officer, 1750 Pennsylvania recommendations on the proposed hours. Ave. NW., Suite 8141, Washington, DC collection of information should be Estimated Average Burden Per 20220, or email at [email protected]. received on or before December 2, 2014. Respondent: 60 minutes. FOR FURTHER INFORMATION CONTACT: ADDRESSES: Submit written comments Frequency of Response: One-time. on the collection of information through Copies of the submission(s) may be Estimated Number of Respondents: obtained by emailing [email protected], Federal Docket Management System 1,200. calling (202) 622–1295, or viewing the (FDMS) at www.Regulations.gov or to entire information collection request at Nancy J. Kessinger, Veterans Benefits Dated: September 29, 2014. www.reginfo.gov. Administration (20M35), Department of By direction of the Secretary. Veterans Affairs, 810 Vermont Avenue Crystal Rennie, Office of Foreign Assets Control NW., Washington, DC 20420 or email Department Clearance Officer, Department of OMB Number: 1505–0198. [email protected]. Please refer to Veterans Affairs. Type of Review: Extension of a ‘‘OMB Control No. 2900–0677’’ in any currently approved collection. correspondence. During the comment [FR Doc. 2014–23514 Filed 10–2–14; 8:45 am] Title: Requirement to Report period, comments may be viewed online BILLING CODE 8320–01–P Information About the Shipment of through FDMS. Rough Diamonds. FOR FURTHER INFORMATION CONTACT: Abstract: This information collection Nancy J. Kessinger at (202) 632–8924 or is contained in 31 CFR 592.301 and FAX (202) 632–8925.

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DEPARTMENT OF VETERANS ADDRESSES: Submit written comments information to be collected; and (4) AFFAIRS on the collection of information through ways to minimize the burden of the Federal Docket Management System collection of information on [OMB Control No. 2900–0636] (FDMS) at www.Regulations.gov or to respondents, including through the use Nancy J. Kessinger, Veterans Benefits of automated collection techniques or Proposed Information Collection Administration (20M35), Department of the use of other forms of information (Accelerated Payment Verification of Veterans Affairs, 810 Vermont Avenue technology. Completion Letter) Activity: Comment NW., Washington, DC 20420 or email to Title: Accelerated Payment Request [email protected]. Please refer to Verification of Completion Letter, VA ‘‘OMB Control No. 2900–0636’’ in any Form 22–0840. AGENCY: Veterans Benefits correspondence. During the comment OMB Control Number: 2900–0636. Administration, Department of Veterans period, comments may be viewed online Type of Review: Revision of a Affairs. through FDMS. currently approved collection. ACTION: Notice. FOR FURTHER INFORMATION CONTACT: Abstract: Claimants electing to receive Nancy J. Kessinger at (202) 632–8924 or an accelerate payment for educational SUMMARY: The Veterans Benefits FAX (202) 632–8925. assistance allowance must certify they Administration (VBA), Department of SUPPLEMENTARY INFORMATION: Under the received such payment and how the Veterans Affairs (VA), is announcing an PRA of 1995 (Pub. L. 104–13; 44 U.S.C. payment was used. The data collected is opportunity for public comment on the 3501–3521), Federal agencies must used to determine the claimant’s proposed collection of certain obtain approval from the Office of entitlement to accelerated payment. information by the agency. Under the Management and Budget (OMB) for each Affected Public: Individuals or Paperwork Reduction Act (PRA) of collection of information they conduct households. 1995, Federal agencies are required to or sponsor. This request for comment is Estimated Annual Burden: 9 hours. publish notice in the Federal Register being made pursuant to Section Estimated Average Burden Per concerning each proposed collection of 3506(c)(2)(A) of the PRA. Respondent: 5 minutes. information, including each proposed With respect to the following Frequency of Response: On occasion. revision of currently approved collection of information, VBA invites Estimated Number of Respondents: collection, and allow 60 days for public comments on: (1) Whether the proposed 108. comment in response to the notice. This collection of information is necessary notice solicits comments on information for the proper performance of VBA’s Dated: September 29, 2014. needed to determine whether a claimant functions, including whether the By direction of the Secretary. received his or her accelerated payment. information will have practical utility; Crystal Rennie, DATES: Written comments and (2) the accuracy of VBA’s estimate of the Department Clearance Officer, Department of recommendations on the proposed burden of the proposed collection of Veterans Affairs. collection of information should be information; (3) ways to enhance the [FR Doc. 2014–23512 Filed 10–2–14; 8:45 am] received on or before December 2, 2014. quality, utility, and clarity of the BILLING CODE 8320–01–P

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Part II

Commodity Futures Trading Commission

17 CFR Parts 23 and 140 Margin Requirements for Uncleared Swaps for Swap Dealers and Major Swap Participants; Proposed Rule

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COMMODITY FUTURES TRADING English translation. Comments will be requirements on standardized derivative COMMISSION posted as received to http:// products; (3) creating recordkeeping and www.cftc.gov. You should submit only real-time reporting regimes; and (4) 17 CFR Parts 23 and 140 information that you wish to make enhancing the Commission’s RIN 3038–AC97 available publicly. If you wish the rulemaking and enforcement authorities Commission to consider information with respect to all registered entities Margin Requirements for Uncleared that may be exempt from disclosure and intermediaries subject to the Swaps for Swap Dealers and Major under the Freedom of Information Act, Commission’s oversight. Swap Participants a petition for confidential treatment of Section 731 of the Dodd-Frank Act the exempt information may be added a new section 4s to the CEA AGENCY: Commodity Futures Trading submitted according to the established setting forth various requirements for Commission. procedures in § 145.9 of the SDs and MSPs. Section 4s(e) mandates ACTION: Proposed rule; advance notice of Commission’s regulations, 17 CFR the adoption of rules establishing proposed rulemaking. 145.9. margin requirements for SDs and The Commission reserves the right, MSPs.3 Each SD and MSP for which SUMMARY: The Commodity Futures there is a Prudential Regulator, as Trading Commission (‘‘Commission’’ or but shall have no obligation, to review, pre-screen, filter, redact, refuse or defined below, must meet margin ‘‘CFTC’’) is proposing regulations to requirements established by the implement section 4s(e) of the remove any or all of your submission from www.cftc.gov that it may deem to applicable Prudential Regulator, and Commodity Exchange Act (‘‘CEA’’), as each SD and MSP for which there is no added by section 731 of the Dodd-Frank be inappropriate for publication, such as obscene language. All submissions that Prudential Regulator must comply with Wall Street Reform and Consumer the Commission’s regulations governing Protection Act (‘‘Dodd-Frank Act’’). This have been redacted, or removed that contain comments on the merits of the margin. provision requires the Commission to The term Prudential Regulator is adopt initial and variation margin rulemaking will be retained in the public comment file and will be defined in section 1a(39) of the CEA, as requirements for certain swap dealers amended by Section 721 of the Dodd- (‘‘SDs’’) and major swap participants considered as required under the Administrative Procedure Act and other Frank Act. This definition includes the (‘‘MSPs’’). The proposed rules would Federal Reserve Board (‘‘FRB’’); the establish initial and variation margin applicable laws, and may be accessible under the Freedom of Information Act. Office of the Comptroller of the requirements for SDs and MSPs but Currency (‘‘OCC’’); the Federal Deposit would not require SDs and MSPs to FOR FURTHER INFORMATION CONTACT: John Insurance Corporation (‘‘FDIC’’); the collect margin from non-financial end C. Lawton, Deputy Director, Division of Farm Credit Administration; and the users. In this release, the Commission is Clearing and Risk, 202–418–5480, Federal Housing Finance Agency. also issuing an Advance Notice of [email protected]; Thomas J. Smith, The definition specifies the entities Proposed Rulemaking requesting public Deputy Director, Division of Swap for which these agencies act as comment on the cross-border Dealer and Intermediary Oversight, 202– Prudential Regulators. These consist application of such margin 418–5495, [email protected]; Rafael generally of federally insured deposit requirements. The Commission is not Martinez, Financial Risk Analyst, institutions, farm credit banks, federal proposing rules on this topic at this Division of Swap Dealer and home loan banks, the Federal Home time. It is seeking public comment on Intermediary Oversight, 202–418–5462, Loan Mortgage Corporation, and the several potential alternative approaches. [email protected]; Francis Kuo, Federal National Mortgage Association. DATES: Comments must be received on Attorney, Division of Swap Dealer and The FRB is the Prudential Regulator or before December 2, 2014. Intermediary Oversight, 202–418–5695, under section 4s not only for certain [email protected]; or Stephen A. Kane, ADDRESSES: You may submit comments, banks, but also for bank holding Research Economist, Office of Chief identified by RIN 3038–AC97 and companies, certain foreign banks treated Economist, 202–418–5911, skane@ Margin Requirements for Uncleared as bank holding companies, and certain cftc.gov; Commodity Futures Trading Swaps for Swap Dealers and Major subsidiaries of these bank holding Commission, 1155 21st Street NW., Swap Participants, by any of the companies and foreign banks. The FRB Washington DC 20581. following methods: is not, however, the Prudential • Agency Web site, via its Comments SUPPLEMENTARY INFORMATION: Regulator for nonbank subsidiaries of Online process at http:// I. Background bank holding companies, some of which comments.cftc.gov. Follow the are required to be registered with the instructions for submitting comments A. Statutory Authority Commission as SDs or MSPs. In general, through the Web site. On July 21, 2010, President Obama therefore, the Commission is required to • Mail: Send to Christopher signed the Dodd-Frank Act.1 Title VII of establish margin requirements for all Kirkpatrick, Secretary of the the Dodd-Frank Act amended the CEA 2 registered SDs and MSPs that are not Commission, Commodity Futures to establish a comprehensive regulatory subject to a Prudential Regulator. These Trading Commission, Three Lafayette framework designed to reduce risk, to include, among others, nonbank Centre, 1155 21st Street NW., increase transparency, and to promote subsidiaries of bank holding companies, Washington, DC 20581. as well as certain foreign SDs and MSPs. • market integrity within the financial Hand Delivery/Courier: Same as system by, among other things: (1) Specifically, section 4s(e)(1)(B) of the Mail, above. Providing for the registration and CEA provides that each registered SD • Federal eRulemaking Portal: http:// regulation of SDs and MSPs; (2) www.regulations.gov. Follow the 3 Section 4s(e) also directs the Commission to imposing clearing and trade execution instructions for submitting comments. adopt capital requirements for SDs and MSPs. The Please submit your comments using Commission proposed capital rules in 2011. Capital 1 See Dodd-Frank Wall Street Reform and Requirements for Swap Dealers and Major Swap only one of these methods. Consumer Protection Act, Public Law 111–203, 124 Participants, 76 FR 27802 (May 12, 2011). The All comments must be submitted in Stat. 1376 (2010). Commission will address capital requirements in a English, or if not, accompanied by an 2 7 U.S.C. 1 et seq. separate release.

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and MSP for which there is not a number. The commenters included comment.7 In addition, the group Prudential Regulator shall meet such financial services industry associations, conducted a Quantitative Impact Study minimum capital requirements and agricultural industry associations, (‘‘QIS’’) to assess the potential liquidity minimum initial margin and variation energy industry associations, insurance and other quantitative impacts margin requirements as the Commission industry associations, banks, brokerage associated with margin requirements.8 shall by rule or regulation prescribe. firms, investment managers, insurance After consideration of the comments Section 4s(e)(2)(B) provides that the companies, pension funds, commercial on the proposal and the results of the Commission shall adopt rules for SDs end users, law firms, public interest QIS, the group published a near-final and MSPs, with respect to their organizations, and other members of the proposal in February 2013 and activities as an SD or an MSP, for which public. The commenters addressed requested comment on several specific 9 there is not a Prudential Regulator numerous topics including applicability issues. The group considered the imposing (i) capital requirements and of the rules to certain products, additional comments in finalizing the (ii) both initial and variation margin applicability to certain market recommendations set out in the report. The final report was issued in requirements on all swaps that are not participants, margin calculation September 2013.10 This report (the cleared by a registered derivatives methodologies, two-way vs. one-way clearing organization (‘‘DCO’’). ‘‘2013 international framework’’) margin, margin thresholds, permissible Section 4s(e)(3)(A) provides that to articulates eight key principles for non- offset the greater risk to the SD or MSP collateral, use of independent cleared derivatives margin rules, which and the financial system arising from custodians, rehypothecation of are described below. These principles the use of swaps that are not cleared, the collateral, and harmonization with other represent the minimum standards requirements imposed under section regulators. approved by BCBS and IOSCO and 4s(e)(2) shall (i) help ensure the safety The Commission has taken the recommended to the regulatory and soundness of the SD or MSP and (ii) comments it received into consideration authorities in member jurisdictions of be appropriate for the risk associated in developing the further proposal these organizations. with the non-cleared swaps. contained herein. This proposal differs 1. Appropriate Margining Practices Section 4s(e)(3)(C) provides, in in a number of material ways from the Should be in Place With Respect to all pertinent part, that in prescribing 6 previous proposal and the Commission Non-Cleared Derivative Transactions margin requirements the Prudential has determined that it is appropriate to Regulator and the Commission shall issue a new request for comment. The The 2013 international framework permit the use of noncash collateral the Prudential Regulators have also decided recommends that appropriate margining Prudential Regulator or the Commission to issue a new request for comment. The practices be in place with respect to all determines to be consistent with (i) public is invited to comment on any derivative transactions that are not preserving the financial integrity of aspect of the current proposal. cleared by central counterparties markets trading swaps and (ii) (‘‘CCPs’’). The 2013 international preserving the stability of the United C. International Standards framework does not include a margin States financial system. requirement for physically settled Section 4s(e)(3)(D)(i) provides that the While the comments on the 2011 foreign exchange (‘‘FX’’) forwards and Prudential Regulators, the Commission, proposal were being reviewed, swaps. The framework also would not and the Securities and Exchange regulatory authorities around the world apply initial margin requirements to the Commission (‘‘SEC’’) shall periodically determined that global harmonization of fixed physically-settled FX component (but not less frequently than annually) margin standards was an important goal. of cross-currency swaps. consult on minimum capital The CFTC and the Prudential Regulators 2. Financial Firms and Systemically requirements and minimum initial and decided to hold their rulemakings in Important Nonfinancial Entities variation margin requirements. abeyance pending completion of the Section 4s(e)(3)(D)(ii) provides that international efforts. (Covered Entities) Must Exchange Initial and Variation Margin the Prudential Regulators, Commission In October 2011, the Basel Committee and SEC shall, to the maximum extent on Banking Supervision (‘‘BCBS’’) and The 2013 international framework practicable, establish and maintain the International Organization of recommends bilateral exchange of comparable minimum capital and Securities Commissions (‘‘IOSCO’’), in initial and variation margin for non- minimum initial and variation margin consultation with the Committee on cleared derivatives between covered requirements, including the use of Payment and Settlement Systems entities. The precise definition of noncash collateral, for SDs and MSPs. (‘‘CPSS’’) and the Committee on Global ‘‘covered entities’’ is to be determined by each national regulator, but in B. Previous Proposal Financial Systems (‘‘CGFS’’), formed a working group to develop international general should include financial firms Following extensive consultation and standards for margin requirements for and systemically important non- coordination with the Prudential uncleared swaps. Representatives of financial entities. Sovereigns, central Regulators, the Commission published more than 20 regulatory authorities banks, certain multilateral development proposed rules for public comment in participated. From the United States, banks, the Bank for International 2011.4 The Prudential Regulators the CFTC, the FDIC, the FRB, the OCC, published substantially similar rules 7 the Federal Reserve Bank of New York, BCBS/IOSCO, Consultative Document, Margin two weeks later.5 requirements for non-centrally cleared derivatives The Commission received 102 and the SEC were represented. (July 2012). comment letters. The Prudential In July 2012, the working group 8 BCBS/IOSCO, Quantitative Impact Study, Margin requirements for non-centrally cleared Regulators received a comparable published a proposal for public derivatives (November 2012). 9 BCBS/IOSCO, Consultative Document, Margin 4 Margin Requirements for Uncleared Swaps for 6 These include, among others, the definition of requirements for non-centrally cleared derivatives Swap Dealers and Major Swap Participants, 76 FR financial end user, the definition of material swaps (February 2013). 23732 (April 28, 2011). exposure, the requirement for two-way margin 10 BCBS/IOSCO, Margin requirements for non- 5 Margin and Capital Requirements for Covered between SDs and financial end users, and the list centrally cleared derivatives (September 2013) Swap Entities, 76 FR 27564 (May 11, 2011). of eligible collateral for initial margin. (‘‘BCBS/IOSCO Report’’).

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Settlements (BIS), and non-systemic, 4. To Ensure That Assets Collected as 2013 international framework, including non-financial firms are not included as Collateral Can Be Liquidated in a a prohibition on any further covered entities. Reasonable Amount of Time To rehypothecation of the customer’s Under the 2013 international Generate Proceeds That Could collateral by the third party. Sufficiently Protect Covered Entities framework, all covered entities that 6. Requirements for Transactions From Losses in the Event of a engage in non-cleared derivatives Between Affiliates Are Left to the Counterparty Default, These Assets should exchange, on a bilateral basis, National Supervisors the full amount of variation margin with Should Be Highly Liquid and Should, a zero threshold on a regular basis (e.g., After Accounting for an Appropriate The 2013 international framework daily). All covered entities are also Haircut, be Able To Hold Their Value in recommends that national supervisors expected to exchange, on a bilateral a Time of Financial Stress establish margin requirements for basis, initial margin with a threshold The 2013 international framework transactions between affiliates as not to exceed Ö50 million. The recommends that national supervisors appropriate in a manner consistent with threshold applies on a consolidated develop a definitive list of eligible each jurisdiction’s legal and regulatory group, rather than legal entity, basis. In collateral assets. The 2013 international framework. addition, and in light of the permitted framework includes examples of 7. Requirements for Margining Non- initial margin threshold, the 2013 permissible collateral types, provides a Cleared Derivatives Should Be international framework recommends schedule of standardized haircuts, and Consistent and Non-Duplicative Across that entities with a level of non-cleared indicates that model-based haircuts may Jurisdictions derivative activity of Ö8 billion notional be appropriate. In the event that a Under the 2013 international or more would be subject to initial dispute arises over the value of eligible framework, home-country supervisors margin requirements. collateral, the 2013 international framework provides that both parties may allow a covered entity to comply 3. The Methodologies for Calculating should make all necessary and with a host-country’s margin regime if Initial and Variation Margin Should (i) appropriate efforts, including timely the host-country margin regime is Be Consistent Across Covered Entities, initiation of dispute resolution consistent with the 2013 international and (ii) Ensure That All Counterparty protocols, to resolve the dispute and framework. A branch may be subject to Risk Exposures Are Covered With a exchange any required margin in a the margin requirements of either the High Degree of Confidence timely fashion. headquarters’ jurisdiction or the host country. The 2013 international framework 5. Initial Margin Should be Exchanged states that the potential future exposure on a Gross Basis and Held in Such a 8. Margin Requirements Should Be of a non-cleared derivative should Way as to Ensure That (i) the Margin Phased in Over an Appropriate Period reflect an estimate of an increase in the Collected Is Immediately Available to of Time value of the instrument that is the Collecting Party in the Event of the The 2013 international framework consistent with a one-tailed 99% Counterparty’s Default, and (ii) the phases in margin requirements between confidence level over a 10-day horizon Collected Margin Is Subject to December 2015 and December 2019. (or longer, if variation margin is not Arrangements That Fully Protect the Covered entities should begin collected on a daily basis), based on Posting Party exchanging variation margin by historical data that incorporates a period The 2013 international framework December 1, 2015. The date on which a of significant financial stress. provides that collateral collected as covered entity should begin to exchange The 2013 international framework initial margin from a ‘‘customer’’ initial margin with a counterparty permits the amount of initial margin to (defined as a ‘‘buy-side financial firm’’) depends on the notional amount of non- be calculated by reference to internal should be segregated from the initial cleared derivatives (including models approved by the relevant margin collector’s proprietary assets. physically settled FX forwards and national regulator or a standardized The initial margin collector also should swaps) entered into both by its margin schedule, but covered entities give the customer the option to consolidated corporate group and by the should not ‘‘cherry pick’’ between the individually segregate its initial margin counterparty’s consolidated corporate two calculation methods. Models may from other customers’ margin. In very group. allow for conceptually sound and specific circumstances, the initial Currency denomination. The 2013 empirically demonstrable portfolio risk margin collector may use margin international framework recommends offsets where there is an enforceable provided by the customer to hedge the specific quantitative levels for several netting agreement in effect. However, risks associated with the customer’s requirements such as the level of portfolio risk offsets may only be positions with a third party. To the notional derivative exposure that results recognized within, and not across, extent that the customer consents to in an entity being subject to the margin certain well-defined asset classes: rehypothecation, it should be permitted requirements (Ö8 billion), permitted credit, equity, interest rates and foreign only where applicable insolvency law initial margin thresholds (Ö50 million), exchange, and commodities. A covered gives the customer protection from risk and minimum transfer amounts entity using the standardized margin of loss of initial margin in instances (Ö500,000). In the 2013 international schedule may adjust the gross initial where either or both of the initial framework, all such amounts are margin amount (notional exposure margin collector and the third party denominated in Euros. In this proposal multiplied by the relevant percentage in become insolvent. Where a customer all such amounts are denominated in the table) by a ‘‘net-to-gross ratio,’’ has consented to rehypothecation and U.S. dollars. The Commission is aware which is also used in the bank adequate legal safeguards are in place, that, over time, amounts that are counterparty credit risk capital rules to the margin collector and the third party denominated in different currencies in reflect a degree of netting of derivative to which customer collateral is different jurisdictions may fluctuate positions that are subject to an rehypothecated should comply with relative to one another due to changes enforceable netting agreement. additional restrictions detailed in the in exchange rates.

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The Commission seeks comment on parties to reflect any change in value implementation schedule; and (x) whether and how fluctuations resulting since the previous time the positions advance notice of proposed rulemaking from exchange rate movements should were marked. This process prevents on the cross-border application of the be addressed. In particular, should these losses from accumulating over time and rules. amounts be expressed in terms of a thereby reduces both the chance of In developing the proposed rules, the single currency in all jurisdictions to default and the size of any default Commission staff worked closely with prevent such fluctuations? Should the should one occur. the staff of the Prudential Regulators.14 amounts be adjusted over time if and Initial margin serves as a performance In most respects, the proposed rules when exchange rate movements bond against potential future losses. If a would establish a similar framework for necessitate realignment? Are there other party fails to meet its obligation to pay margin requirements as the Prudential approaches to deal with fluctuations variation margin, resulting in a default, Regulators’ proposal. Key differences resulting from significant exchange rate the other party may use initial margin are noted in the discussion below. movements? Are there other issues that to cover some or all of any loss. Because The proposed rules are consistent should be considered in connection to the payment of variation margin with the 2013 international framework. the effects of fluctuating exchange rates? prevents losses from compounding over In some instances, as contemplated in an extended period of time, initial II. Proposed Margin Regulations the framework, the proposed rules margin only needs to cover any provide more detail than the framework. A. Introduction additional losses that might accrue In a few other instances, the proposed During the financial crisis of 2008– between the previous time that variation rules are stricter than the framework. 2009, DCOs met all their obligations margin was paid and the time that the Any such variations from the framework without any financial support from the position is liquidated. are noted in the discussion below. Well-designed margin systems protect government. By contrast, significant both parties to a trade as well as the B. Products sums were expended by governmental overall financial system. They serve entities as the result of losses incurred As noted above, section 4s(e)(2)(B)(ii) both as a check on risk-taking that might in connection with uncleared swaps. of the CEA directs the Commission to exceed a party’s financial capacity and For example, a unit of American establish both initial and variation as a resource that can limit losses when International Group (‘‘AIG’’) entered margin requirements for SDs and MSPs there is a failure by a party to meet its into many credit default swaps and did ‘‘on all swaps that are not cleared.’’ The obligations. scope provision of the proposed rules 15 not post initial margin or regularly pay The statutory provisions cited above variation margin on these positions.11 states that the proposal would cover reflect Congressional recognition that (i) swaps that are uncleared swaps 16 and AIG was unable to meet its obligations margin is an essential risk-management and the Federal Reserve and the that are executed after the applicable tool and (ii) uncleared swaps pose 17 Department of the Treasury expended compliance date. greater risks than cleared swaps. As The term ‘‘cleared swap’’ is defined in large sums of money to meet these discussed further below, many 12 section 1a(7) of the CEA to include any obligations. commenters expressed concern that the A key reason for this difference in the swap that is cleared by a DCO registered imposition of margin requirements on with the Commission. The Commission performance of cleared and uncleared uncleared swaps will be very costly for swaps is that DCOs use variation margin notes, however, that SDs and MSPs also SDs and MSPs.13 However, margin has clear swaps through foreign clearing and initial margin as the centerpiece of been, and will continue to be, required their risk management programs while organizations that are not registered for all cleared products. Given the with the Commission. The Commission these tools often were not universally Congressional reference to the ‘‘greater used in connection with uncleared believes that a clearing organization that risk’’ of uncleared swaps and the is not a registered DCO must meet swaps. Consequently, in designing the requirement that margin for such swaps proposed margin rules for uncleared certain basic standards in order to avoid ‘‘be appropriate for the risk,’’ the creating a mechanism for evasion of the swaps, the Commission has built upon Commission believes that establishing the sound practices for risk management uncleared margin requirements. margin requirements for uncleared Accordingly, the Commission is employed by central counterparties for swaps that are at least as stringent as decades. proposing to include in the definition of those for cleared swaps is necessary to cleared swaps certain swaps that have Variation margin serves as a fulfill the statutory mandate. Within mechanism for periodically recognizing been accepted for clearing by an entity these statutory bounds the Commission that has received a no-action letter from changes in the value of open positions has endeavored to limit costs and reducing unrealized losses to zero. the Commission staff or exemptive relief appropriately, as detailed further below. from the Commission permitting it to Open positions are marked to their The discussion below addresses: (i) clear such swaps for U.S. persons current market value each day and The products covered by the proposed without being registered as a DCO.18 funds are transferred between the rules; (ii) the market participants covered by the proposed rules; (iii); the 14 As required by section 4s of the CEA, the 11 See The Financial Crisis Inquiry Commission, nature and timing of the margin The Financial Crisis Inquiry Report: Final Report of Commission staff also has consulted with the SEC the National Commission on the Causes of the obligations; (iv) the methods of staff. Financial and Economic Crisis in the United States calculating initial margin; (v) the 15 Proposed Regulation § 23.150. (Official Government Edition) at 265–268 (2011), methods of calculating variation margin; 16 The term uncleared swap is defined in available at http://fcic-static.law.stanford.edu/cdn_ (vi) permissible forms of margin; (vii) proposed Regulation § 23.151. _ _ _ 17 media/fcic-reports/fcic final report full.pdf. custodial arrangements; (viii) A schedule of compliance dates is set forth in 12 Id. at 344–352, 350. See also United States proposed Regulation § 23.160. Department of the Treasury, Office of Financial documentation requirements; (ix) the 18 See CFTC Ltr. No. 14–107 (August 18, 2014) Stability, Troubled Asset Relief Program, Four Year (granting no-action relief to Clearing Corporation of Retrospective: An Update on the Wind Down of 13 For purposes of this proposal, the term ‘‘SD’’ India Ltd.); CFTC Ltr. No. 14–87 (June 26, 2014) TARP, pp. 3, 18–19. Treasury and the Federal means any swap dealer registered with the (granting no-action relief to Korea Exchange, Inc.); Reserve committed $182 billion to stabilize AIG. Commission. Similarly, the term ‘‘MSP’’ means any CFTC Ltr. No. 14–68 (May 7, 2014) (granting no- Ultimately all of this was recovered plus a return major swap participant registered with the action relief to OTC Clearing Hong Kong Limited of $22.7 billion. Commission. Continued

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The Commission requests comment foreign exchange transactions associated The definition lists numerous entities on whether it is appropriate to exclude with the fixed exchange of principal in whose business is financial in nature. swaps that are cleared by an entity that a cross-currency swap are closely The proposed rule also would permit is not a registered DCO. If so, the related to the exchange of principal that the Commission to designate additional Commission further requests comment occurs in the context of a foreign entities as financial end users if it on whether the proposed rule captures exchange forward or swap. Accordingly, identified additional entities whose the proper clearing organizations. For the Commission is proposing to treat activities and risk profile would warrant example, should the Commission that portion of a cross-currency swap inclusion. As contemplated by the 2013 require that the clearing organizations that is a fixed exchange of principal in international framework, the CFTC be qualifying central counterparties a manner that is consistent with the proposal, which is the same as the (‘‘QCCPs’’) 19 or be subject to regulation treatment of foreign exchange forwards Prudential Regulator’s proposal, and supervision that is consistent with and swaps. This treatment of cross- contains greater detail in defining the CPSS–IOSCO Principles for currency swaps is limited to cross- financial end users than the Financial Market Infrastructures currency swaps and does not extend to international standards.25 (‘‘PFMIs’’)? any other swaps such as non-deliverable In developing the definition, the Because the pricing of swaps reflects currency forwards. Commission and the Prudential the credit arrangements under which The Commission requests comment Regulators sought to provide clarity they were executed, it could be unfair on the proposed treatment of products. about whether particular counterparties to the parties and disruptive to the In particular, commenters are invited to would be subject to the margin markets to require that the rules apply discuss the costs and benefits of the requirements of the proposed rule. The to positions executed before the proposed approach. Commenters are definition is an attempt to strike a applicable compliance dates. The rules, urged to quantify the costs and benefits, balance between the need to capture all however, would permit SDs and MSPs if practicable. Commenters also may financial counterparties that pose voluntarily to include swaps executed suggest alternatives to the proposed significant risk to the financial system before the applicable compliance date in approach where the commenters believe and the danger of being overly portfolios margined pursuant to the that the alternatives would be inclusive. proposed rules.20 Many market appropriate under the CEA. The Commission believes that participants might do so to take financial firms generally present a advantage of netting effects across C. Market Participants higher level of risk than other types of transactions. 1. SDs and MSPs counterparties because the profitability As a result of the determination by the and viability of financial firms is more As noted above, section 4s(e)(2)(B) of Secretary of the Treasury to exempt tightly linked to the health of the the CEA directs the Commission to foreign exchange swaps and foreign financial system than other types of impose margin requirements on SDs and exchange forwards from the definition counterparties. Because financial MSPs for which there is no Prudential of swap,21 the following transactions counterparties are more likely to default Regulator (‘‘covered swap entities’’ or would not be subject to the during a period of financial stress, they ‘‘CSEs’’).22 This provision further states requirements: (i) Foreign exchange pose greater systemic risk and risk to the that the requirement shall apply to ‘‘all swaps; (ii) foreign exchange forwards; safety and soundness of the CSE. swaps that are not cleared.’’ Section and (iii) the fixed, physically settled The list of financial entities is based 4s(e)(3)(A)(2) states that the foreign exchange transactions associated to a significant extent on Federal requirements must be ‘‘appropriate to with the exchange of principal in cross- statutes that impose registration or the risks associated with’’ the swaps. currency swaps. chartering requirements on entities that Because different types of In a cross-currency swap, the parties engage in specified financial activities. counterparties can pose different levels exchange principal and interest rate Such activities include deposit taking of risk, the Commission’s proposed payments in one currency for principal and lending, securities and swaps requirements would differ depending on and interest rate payments in another dealing, investment advisory activities, the category of counterparty. The currency. The exchange of principal and asset management. proposed rules would establish three occurs upon the inception of the swap, Because Federal law largely looks to categories of counterparty: (i) SDs and with a reversal of the exchange of the States for the regulation of the MSPs, (ii) financial end users,23 and (iii) principal at a later date that is agreed business of insurance, the proposed non-financial end users.24 As discussed upon at the inception of the swap. The definition broadly includes entities below, the nature of an SD/MSP’s organized as insurance companies or obligations under the rules would differ and certain of its clearing members); CFTC Ltr. No. supervised as such by a State insurance depending on whether the counterparty 14–27 (Mar. 20, 2014) (extending previous grant of regulator. This element of the proposed no-action relief to Eurex Clearing AG and certain of was a covered counterparty or a non- definition would extend to reinsurance its clearing members); CFTC Ltr. No. 14–07 (Feb. 6, financial end user. 2014) (granting no-action relief to ASX Clear and monoline insurance firms, as well (Futures) Pty Limited); and CFTC Ltr. No. 13–73 2. Financial End Users as insurance firms supervised by a (Dec. 19, 2013) (extending previous grant of no- foreign insurance regulator. action relief to Japan Securities Clearing a. Definition The proposal also would cover a Corporation and certain of its clearing members). Financial end users would include 19 broad variety and number of nonbank A QCCP is a clearing organization that meets any entity that (i) is specified in the the standards to be designated as such set forth by lending and retail payment firms that definition, and (ii) is not an SD or MSP. the Basel Committee for Banking Supervision in the operate in the market. To this end, the report ‘‘Capital requirements for bank exposures to central counterparties’’ (April 2014). 22 This term is defined in proposed Regulation proposal would include State-licensed 20 See proposed Regulation § 23.154(b)(2) for § 23.151. or registered credit or lending entities initial margin and proposed Regulation § 23.153(c) 23 This term is defined in proposed Regulation for variation margin. § 23.151. 25 ‘‘The precise definition of financial firms, non- 21 Determination of Foreign Exchange Swaps and 24 This term is defined in proposed Regulation financial firms, and systemically important non- Foreign Exchange Forwards Under the Commodity § 23.151 to include entities that are not SDs, MSPs, financial firms will be determined by appropriate Exchange Act, 77 FR 69694 (Nov. 20, 2012). or financial entities. national regulation.’’ See BCBS/IOSCO Report at 9.

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and money services businesses, under into non-cleared swaps with covered impose upon covered swap entities the proposed regulatory language swap entities that are subject to the difficulties associated with analyzing a incorporating an inclusive list of the proposed rule. foreign counterparty’s business types of firms subject to State law.26 The Commission remains concerned, activities in light of a broad array of U.S. However, the Commission recognizes however, that one or more types of regulatory requirements. The that the licensing of nonbank lenders in financial entities might escape alternative, however, would require some states extends to commercial firms classification under the specific Federal covered swap entities to gather a foreign that provide credit to the firm’s or State regulatory regimes included in counterparty’s financial reporting data customers in the ordinary course of the proposed definition of a financial and determine the relative amount of business. Accordingly, the Commission end user. Accordingly, the definition enumerated financial activities in which is proposing to exclude an entity includes two additional prongs. First, the counterparty is engaged over a registered or licensed solely because it the definition would cover an entity that rolling period.29 The Commission finances the entity’s direct sales of is, or holds itself out as being, an entity requests comment on whether some goods or services to customers. The or arrangement that raises money from other method or approach would Commission requests comment on investors primarily for the purpose of adequately assure that the rule’s whether this aspect of the proposed rule investing in loans, securities, swaps, objectives with respect to dealer safety adequately maintains a distinction funds or other assets for resale or other and soundness and reductions of between financial end users and disposition or otherwise trading in systemic risk can be achieved, in a commercial end users. loans, securities, swaps, funds or other fashion that can be more readily In addition, real estate investment assets. The Commission requests operationalized by covered swap companies would be financial end comment on the extent to which there entities. For example, would it be users, as they are entities that would be are (or may be in the future) pooled appropriate to have foreign investment companies under section 3 investment vehicles that are not counterparties certify to CSEs whether of the Investment Company Act but for captured by the other prongs of the they are financial end users or not? This section 3(c)(5)(C). Furthermore, other definition (such as the provisions could be operationally simpler for the securitization vehicles would be covering private funds under the CSEs and would avoid the circumstance financial end users in cases where those Investment Advisers Act or commodity where one CSE, in good faith, deemed vehicles are entities that are deemed not pools under the CEA). The Commission a foreign counterparty to be a financial to be investment companies under also requests comment on whether this end user and another CSE, in good faith, section 3 of the Investment Company aspect of the definition of financial end did not. Act pursuant to Rule 3a–7. The user provides sufficiently clear guidance The definition of financial entities 30 Commission also notes that the category to covered swap entities and market would exclude the government of any of investment companies registered with participants as to its intended scope, country, central banks, multilateral the SEC under the Investment Company and whether it adequately maintains a development banks, the Bank for Act would include registered distinction between financial end users International Settlements, captive investment companies as well as and commercial end users. finance companies,31 and agent Second, the proposal would allow the business development companies. affiliates.32 The exclusion for sovereign Commission to require a swap dealer Under the proposed rule, those entities, multilateral development banks and major swap participant (‘‘covered cooperatives that are financial and the Bank for International swap entity’’) to treat an entity as a institutions, such as credit unions, Farm Settlements is consistent with the 2013 financial end user for margin purposes, Credit System banks and associations, international framework and the even if the person is not specifically and the National Rural Utilities proposal of the Prudential Regulators. Cooperative Finance Corporation would listed within the definition of ‘‘financial be financial end users because their sole end user’’ or if the entity is excluded 29 See e.g., Definitions of ‘‘Predominantly business is lending and providing other from the definition of financial end user Engaged In Financial Activities’’ and ‘‘Significant financial services to their members, as described below. This provision was Nonbank Financial Company and Bank Holding included out of an abundance of caution Company’’, 68 FR 20756 (April 5, 2013). including engaging in swaps in 30 Proposed Regulation § 23.151. 27 to act as a safety mechanism in the connection with such loans. 31 A captive finance company is an entity that is Cooperatives that are financial end users event that an entity didn’t fall squarely excluded from the definition of financial entity may qualify for an exemption from within one of the listed categories but under section 2(h)(7)(c)(iii) of the CEA for purposes clearing,28 and therefore, they may enter was effectively acting as a financial end of the requirement to submit certain swaps for user. clearing. That section describes it as ‘‘an entity To address the classification of whose primary business is providing financing, and 26 The Commission expects that financial uses derivatives for the purpose of hedging cooperatives that provide financial services to their foreign entities as financial end users, underlying commercial risks related to interest rate members, such as lending to their members and the proposal would require the covered and foreign currency exposures, 90 percent or more entering into swaps in connection with those loans, swap entity to determine whether a of which arise from financing that facilitates the would be treated as financial end users, pursuant foreign counterparty would fall within purchase or lease of products, 90 percent or more to this aspect of the proposed rule’s coverage of of which are manufactured by the parent company credit or lending entities. another prong of the financial end user or another subsidiary of the parent company.’’ 27 Under the proposed rule, the financing definition if the foreign entity was 32 An agent affiliate is an entity that is an affiliate subsidiaries or affiliates of producer or consumer organized under the laws of the United of a person that qualifies for an exception from the cooperatives would be non-financial end users. States or any State. The Commission requirement to submit certain trades for clearing. 28 Section 2(h)(7)(c)(ii) of the CEA and section Under section 2(h)(7)(D) of the CEA, ‘‘an affiliate of 3C(g)(4) of the Securities Exchange Act of 1934 recognizes that this approach would a person that qualifies for an exception under authorize the CFTC and the SEC, respectively, to subparagraph (A) (including affiliate entities exempt small depository institutions, small Farm cooperative financial entities, including those with predominantly engaged in providing financing for Credit System institutions, and small credit unions total assets in excess of $10 billion, to elect an the purchase of the merchandise or manufactured with total assets of $10 billion or less from the exemption from mandatory clearing of swaps that: goods of the person) may qualify for the exception mandatory clearing requirements for swaps and (1) They enter into in connection with originating only if the affiliate, acting on behalf of the person security-based swaps. Additionally, the CFTC, loans for their members; or (2) hedge or mitigate and as an agent, uses the swap to hedge or mitigate pursuant to its authority under section 2(h)(1)(A) of commercial risk related to loans or swaps with their the commercial risk of the person or other affiliate the CEA, enacted 17 CFR 50.51, which allows members. of the person that is not a financial entity.’’

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Captive finance companies and agent discussed below, had material swaps margin requirements to swaps between affiliates were excluded by the Dodd- exposure. Staff of the Prudential CSEs and their affiliates. Frank Act from the definition of Regulators have indicated that they The Commission requests comment financial entity subject to mandatory expect that the proposed rule likely will on all aspects of the proposed treatment clearing. have minimal impact on small banks. of transactions with affiliates. In The Commission notes that States Staff of the Prudential Regulators particular, the Commission requests would not be excluded from the believe that the vast majority of small comment on the interaction of this definition of financial end user, as the banks do not engage in swaps at or near proposal with clearing exemptions that term ‘‘sovereign entity’’ includes only that level of activity that would meet the have been granted. central governments. The categorization material swaps exposure threshold. If, d. Multilateral Development Banks of a State or particular part of a State as however, a small bank did exceed the The proposed definition of the term a financial end user depends on threshold level, the Prudential whether that part of the State is ‘‘multilateral development bank,’’ Regulators believe it would be includes a provision encompassing otherwise captured by the definition of appropriate for the protection of both financial end user. For example, a State ‘‘[a]ny other entity that provides the CSE and the small bank for two-way financing for national or regional entity that is a ‘‘governmental plan’’ initial margin to be posted. The under ERISA would meet the definition development in which the U.S. Commission notes that, as discussed in of financial end user. government is a shareholder or more detail below, initial margin would For a foreign entity that was not a contributing member or which the central government, a foreign regulator only need to be posted to the extent it Commission determines poses could request a determination whether exceeded $65 million. comparable credit risk.’’ The the entity was a financial end user. Such The proposed rule would require a Commission seeks comment regarding a determination could extend to other CSE to exchange daily variation margin this definition. In particular, is the similarly situated entities in that with a small bank, regardless of whether criterion of comparability of credit risk jurisdiction. the institution had material swap appropriate for this definition? Should The Commission seeks comment on exposure. However, the covered swap the Commission look to other all aspects of the financial end user entity would only be required to collect characteristics of the entity in definition, including whether the variation margin from a small bank determining whether it should be definition has succeeded in capturing when the amount of both initial margin within the definition of ‘‘multilateral all entities that should be included. The and variation margin required to be development bank’’? Commission requests comment on collected exceeded $650,000. The e. Material Swaps Exposure whether there are additional entities Prudential Regulators have indicated that should be included as financial end that they expect that the vast majority of A CSE would not be required to users and, if so, how those entities small banks will have a daily margin exchange initial margin with a financial should be defined. Further, the requirement that is below this amount. end user if the financial end user did 35 Commission also requests comment on The Commission requests comment not have ‘‘material swaps exposure.’’ whether there are additional entities on all aspects of the proposed treatment Material swaps exposure would be computed using the average daily that should be excluded from the of small banks. In particular, the aggregate notional amount of uncleared definition of financial end user and why Commission requests comment on the swaps, security-based swaps, foreign those particular entities should be interaction of this proposal with exchange forwards, and foreign excluded. The Commission also clearing exemptions that have been exchange swaps36 with all requests comment on whether another granted.33 approach to defining financial end user counterparties for June, July, and (e.g., basing the financial end user c. Affiliates of CSEs August of the previous calendar year. definition on the financial entity Essentially, a financial end user would The proposal generally would cover have material swaps exposure if it held definition as in the 2011 proposal) swaps between CSEs and their affiliates would provide more appropriate an aggregate gross notional amount of that are financial end users. The 37 coverage and clarity, and whether these products of more than $3 billion. Commission notes that other applicable This provision recognizes that a covered swap entities could laws require transactions between banks operationalize such an approach as part financial end user that has relatively and their affiliates to be on an arm’s smaller positions does not pose the of their regular procedures for taking on length basis. For example, section 23B same risks as a financial end user with new counterparties. of the Federal Reserve Act provides that The Commission requests comment many transactions between a bank and 35 Proposed Regulation § 23.152 applies to on the costs and benefits of the its affiliates must be on terms and under ‘‘covered counterparties.’’ Proposed Regulation proposed definition of financial end circumstances, including credit § 23.151 defines that term to include financial user. Commenters are urged to quantify standards, that are substantially the entities with material swaps exposure. 36 The 2013 international framework states that the costs and benefits, if practicable. same or at least as favorable to the bank Commenters also may suggest all uncleared derivatives, ‘‘including physically as those prevailing at the time for settled FX forwards and swaps’’ should be included alternatives to the proposed approach comparable transactions with or in determining whether a covered entity should be where the commenters believe that the involving nonaffiliated companies.34 subject to margin requirements. BCBS/IOSCO alternatives would be appropriate under Report Paragraph 8.8. Although these products Consistent with that treatment, the would not themselves be subject to margin the CEA. Prudential Regulators and the requirements, they are uncleared derivatives that b. Small Banks Commission are proposing to apply the pose risks. It was the judgment of BCBS/IOSCO that they should be included in identifying significant As noted above, banks would be market participants in the uncleared space. financial end users under the proposal. 33 See Commission Regulations §§ 50.50(d)(small Consistent with international standards and with banks), 50.51 (cooperatives), 50.52 (inter-affiliate the Prudential Regulators’ proposal, the They would be subject to initial margin trades), and CFTC Ltr. No. 13–22 (June 4, 2013) Commission is proposing to include them for requirements if they entered into (treasury affiliates). purposes of this calculation. uncleared swaps with CSEs and, as 34 12 U.S.C. 371c–1(a). 37 Proposed Regulation § 23.151.

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larger positions. By reducing the the Commission and the Prudential international framework is that the number of market participants subject to Regulators is that defining material initial margin threshold provide smaller certain margin requirements, it also swaps exposure as a gross notional counterparties with relief from the addresses the concerns that have been exposure of $3 billion, rather than $11 operational burden of measuring and expressed about the availability of billion, is appropriate because it reduces tracking initial margin collection sufficient collateral to meet these systemic risk without imposing undue amounts that are expected to be below requirements. burdens on covered swap entities, and $65 million. Setting the material swaps While adoption of a material swaps therefore, is consistent with the exposure threshold at $11 billion exposure threshold is consistent with objectives of the Dodd-Frank Act. This appears to be inconsistent with this 38 the 2013 international framework, the view is based on data and analyses that intent, based on the recent analyses. Commission and the Prudential have been conducted since the Regulators, are proposing to set the publication of the 2013 international The table below summarizes actual materiality standard lower than the framework. initial margin requirements for 4,686 international standard. However, the Specifically, the Commission and the counterparties engaged in cleared lower standard was chosen in order to Prudential Regulators have reviewed interest rate swaps. Each counterparty be consistent with the intent of the actual initial margin requirements for a represents a particular portfolio of international standards, which was to sample of cleared swaps. These analyses cleared interest rate swaps. Each require collection of margin only when indicate that there are a significant counterparty had a swap portfolio with the amount exceeds $65 million, as number of cases in which a financial a total gross notional amount less than explained below. end user would have a material swaps $11 billion and each is a customer of a The 2013 international framework exposure level below $11 billion but CCP’s clearing member. Column (1) defines smaller financial end users as would have a swap portfolio with an displays the initial margin amount as a those counterparties that have a gross initial margin collection amount that percentage of the gross notional amount. aggregate amount of covered swaps significantly exceeds the proposed Column (2) reports the initial margin, in below Ö8 billion, which, at current permitted initial margin threshold millions of dollars that would be exchange rates, is approximately equal amount of $65 million. The intent of required on a portfolio with a gross to $11 billion. The preliminary view of both the Commission and the 2013 notional amount of $11 billion.

INITIAL MARGIN AMOUNTS ON 4,686 CLEARED INTEREST RATE SWAP PORTFOLIOS

Column (1) initial margin Column (2) initial margin amount as percentage amount on an $11 of gross notional amount billion gross notional (%) portfolio ($MM)

Average ...... 2.1 231 25th Percentile ...... 0.6 66 50th Percentile ...... 1.4 154 75th Percentile ...... 2.7 297

As shown in the table above, the exhibit an initial margin rate in excess (‘‘CME’’), for example, provides average initial margin rate across all of 0.6 percent, which equates to an information on the initial margin 4,686 counterparties, reported in initial margin amount on a cleared requirements for cleared interest rate Column (1), is 2.1 percent, which would interest rate swap portfolio of $66 swaps and credit default swaps that it equate to an initial margin collection million (approximately equal to the clears. This information does not amount, reported in Column (2), of $231 proposed permitted threshold amount). represent actual margin requirements on million on an interest rate swap The data above represent actual actual swap portfolios that are cleared portfolio with a gross notional amount margin requirements on a sample of by the CME but does represent the of $11 billion. This average initial interest rate swap portfolios that are initial margin that would be required on margin collection amount significantly cleared by a single CCP. Some CCPs also specific swaps if they were cleared at exceeds the proposed permitted provide information on the initial the CME. The table below presents the threshold amount of $65 million. margin requirements on specific and initial margin requirements for two Seventy-five percent of the 4,686 representative swaps that they clear. cleared interest rate swap portfolios The Chicago Mercantile Exchange swaps that are cleared by the CME.

INITIAL MARGIN AMOUNTS ON CME CLEARED INTEREST RATE AND CREDIT DEFAULT SWAPS

Column (1) initial margin Column (2) initial margin amount as percentage amount on an $11 of gross notional amount billion gross notional (%) portfolio ($MM)

5 year, receive fixed and pay floating rate interest rate swap ...... 2.0 216 5 year, sold CDS protection on the CDX IG Series 20 Version 22 Index ...... 1.9 213

38 BCBS/IOSCO Report at 9.

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According to the CME, the initial likely to be some cases in which the end users should be required to post margin requirement on the interest rate initial margin collection amount of a margin for uncleared swaps.40 In swap and the credit default swap are portfolio that is below the material addition, the Dodd-Frank Act generally both roughly two percent of the gross swaps exposure amount will exceed the exempted non-financial end users from notional amount. This initial margin proposed permitted initial margin the requirement that they submit trades rate translates to an initial margin threshold amount of $65 million. The to clearing.41 If the Commission amount of roughly $216 million on a Commission’s preliminary view is that required them to post margin for swap portfolio with a gross notional such instances should be relatively rare uncleared trades, the clearing amount of $11 billion. Accordingly, this and that the operational benefits of exemption could be weakened because data also indicates that the initial using a simple and transparent gross the costs of clearing are likely to be less margin collection amount on a swap notional measure to define the material than the costs of margining an uncleared portfolio with a gross notional size of swaps exposure amount are substantial. position. This approach is also $11 billion could be significantly larger The Commission notes that under the consistent with international than the proposed permitted initial implementation schedule set out below, standards.42 margin threshold of $65 million. this requirement would not take effect The Commission’s proposal is In addition to the information until January 1, 2019.39 Parties with generally consistent with the proposal provided in the tables above, the gross notional exposures around this of the Prudential Regulators but differs Commission’s preliminary view is that amount would have several years notice in some particulars. The Prudential additional considerations suggest that before the requirements took effect. Regulators’ proposal contains the the initial margin collection amounts The Commission requests comment following provision: associated with uncleared swaps could on all aspects of the material swaps be even greater than those reported in exposure provision. In particular, the A covered swap entity is not required to the tables above. The tables above Commission requests comment on the collect initial margin with respect to any proposal to establish a level that is non-cleared swap or non-cleared security- represent initial margin requirements on based swap with a counterparty that is cleared interest rate and credit default lower than the level set forth in the 2013 neither a financial end user with material index swaps. Uncleared swaps in other international framework. Are there swaps exposure nor a swap entity but shall asset classes, such as single name equity alternative measurement methodologies collect initial margin at such times and in or single name credit default swaps, are that do not rely on gross notional such forms (if any) that the covered swap likely to be riskier and hence would amounts that should be used? Does the entity determines appropriately address the require even more initial margin. In proposed rule’s use and definition of the credit risk posed by the counterparty and the addition, uncleared swaps often contain material swaps exposure raise any risks of such non-cleared swaps and non- cleared security-based swaps. complex features, such as competitive equity issues that should be nonlinearities, that make them even considered? Are there any other aspects The Commission’s proposal does not riskier and would hence require more of the material swaps exposure that contain this provision. initial margin. Finally, uncleared swaps should be considered by the The Commission’s proposal contains are generally expected to be less liquid Commission? other provisions designed to address the than cleared swaps and must be The Commission requests comment mandate under section 4s(e)(3)(A)(i) that margined, under the proposed rule, on the costs and benefits of the Commission rules ‘‘help ensure the according to a ten-day close-out period proposed definition of material swaps safety and soundness’’ of SDs and rather than the five-day period required exposure. Commenters are urged to MSPs. First, as discussed further below, for cleared swaps. The data presented quantify the costs and benefits, if the rules would require CSEs to enter above pertains to cleared swaps that are practicable. Commenters also may into certain documentation with all margined according to a five-day and suggest alternatives to the proposed counterparties, including non-financial not a ten-day close-out period. The approach where the commenters believe entities, to provide clarity about the requirement to use a ten-day close-out that the alternatives would be parties’ respective rights and 43 period would further increase the initial appropriate under the CEA. obligations. CSEs and non-financial margin requirements of uncleared 3. Non-Financial End Users 40 versus cleared swaps. Letter from Chairman Debbie Stabenow, Non-financial end users would Committee on Agriculture, Nutrition and Forestry, In light of the data and considerations U.S. Senate, Chairman Frank D. Lucas, Committee noted above, the Commission’s include any entity that was not an SD, on Agriculture, United States House of preliminary view is that it is appropriate an MSP, or a financial end user. The Representatives, Chairman Tim Johnson, Committee and consistent with the intent of the proposal would not require CSEs to on Banking, Housing, and Urban Affairs, U.S. Senate, and Chairman Spencer Bachus, Committee 2013 international framework to exchange margin with non-financial end on Financial Services, United States House of identify a material swaps exposure with users. The Commission believes that Representatives to Secretary Timothy Geithner, a gross notional amount of $3 billion such entities, which generally are using Department of Treasury, Chairman Gary Gensler, rather than $11 billion (Ö8 billion) as is swaps to hedge commercial risk, pose U.S. Commodity Futures Trading Commission, Chairman Ben Bernanke, Federal Reserve Board, suggested by the 2013 international less risk to CSEs than financial entities. and Chairman Mary Shapiro, U.S. Securities and framework. Identifying a material swaps Therefore, under section 4s(e)(3)(A)(ii) Exchange Commission (April 6, 2011); Letter from exposure with a gross notional amount of the CEA, applying a different Chairman Christopher Dodd, Committee on of $3 billion is more likely to result in standard to trades by CSEs with non- Banking, Housing, and Urban Affairs, U.S. Senate, an outcome in which entities with a and Chairman Blanche Lincoln, Committee on financial entities than to trades by CSEs Agriculture, Nutrition, and Forestry, U.S. Senate, to gross notional exposure below the with covered counterparties would be Chairman Barney Frank, Financial Services material swaps exposure amount would ‘‘appropriate to the risk.’’ Committee, United States House of Representatives, be likely to have an initial margin This approach is consistent with and Chairman Collin Peterson, Committee on collection amount below the proposed Congressional intent. Senior Agriculture, United States House of Representatives (June 30, 2010); see also 156 Cong. Rec. S5904 permitted initial margin threshold of Congressional leaders have stated that (daily ed. July 15, 2010) (statement of Sen. Lincoln). $65 million. The Commission does they do not believe that non-financial 41 See section 2(h)(7) of the CEA. recognize, however, that even at the 42 BCBS/IOSCO Report at pp. 7–8. lower amount of $3 billion, there are 39 Proposed Regulation § 23.160. 43 Proposed Regulation § 23.158.

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entities would be free to set initial users with material swaps exposure In particular, the Commission requests margin and variation margin potentially pose greater risk to CSEs and comment on two-way initial margin. requirements, if any, in their discretion to the financial system than non- The Commission requests comment and any thresholds agreed upon by the financial end users or financial end on the costs and benefits of the parties would be permitted. users with smaller aggregate exposures. proposed approach. Commenters are Second, the proposal would require Accordingly, under the mandate of urged to quantify the costs and benefits, each CSE to calculate hypothetical section 4s(e)(3)(A) to help ensure the if practicable. Commenters also may initial and variation margin amounts safety and soundness of SDs and MSPs, suggest alternatives to the proposed each day for positions held by non- the Commission is proposing to require approach where the commenters believe financial entities that have material SDs and MSPs to collect initial margin swaps exposure to the covered that the alternatives would be from, and to post initial margin with, appropriate under the CEA. counterparty.44 That is, the CSE must financial end users. calculate what the margin amounts Notably, the proposal would require 2. Variation Margin would be if the counterparty were both collecting and posting of initial another SD or MSP and compare them margin by CSEs (‘‘two-way margin’’). Subject to a minimum transfer to any actual margin requirements for Two-way margin helps to ensure the amount discussed below, the proposal the positions.45 These calculations safety and soundness of CSEs. Daily would require each CSE to collect would serve as risk management tools to collection of initial margin increases the variation margin from, and to pay assist the CSE in measuring its exposure safety and soundness of the CSE by variation margin to, each counterparty and to assist the Commission in providing collateral to cover potential that is a swap entity or a financial end conducting oversight of the CSE. future exposure from each counterparty. user, on or before the end of the That is, if a counterparty fails to meet business day after execution for each D. Nature and Timing of Margin 51 Requirements an obligation, the CSE can liquidate the swap with that counterparty. The initial margin that it holds to cover proposed rule would require the CSEs to 1. Initial Margin some or all of the loss. But daily posting continue to pay or collect variation Subject to thresholds discussed of initial margin also helps to ensure the margin each business day until the swap below, the proposal would require each safety and soundness of a CSE by is terminated or expires.52 CSE to collect initial margin from, and making it more difficult for the CSE to Two-way variation margin would to post initial margin with, each covered build up exposures that it cannot fulfill. protect the safety and soundness of counterparty on or before the business That is, the requirement that a CSE post CSEs for the same reasons discussed day after execution 46 for every swap initial margin acts as a discipline on its above in connection with initial margin. with that counterparty.47 The proposal risk taking. The requirement also would Two-way variation margin has been a would require the CSEs to continue to make it more difficult for a rogue trader keystone of the ability of DCOs to post and to collect initial margin until to hide his positions. manage risk. Each day, starting on the the swap is terminated or expires.48 In the wake of clearing mandates, day after execution, current exposure is Recognizing that SDs and MSPs pose uncleared swaps are likely to be more removed from the market through the greater risk to the markets and the customized and consequently trade in a payment and collection of variation financial system than other swap market less liquid market than cleared swaps. margin. participants, Congress established a As a result, uncleared swaps potentially comprehensive regulatory scheme for If two-way variation margin were not might take a longer time and require a required for uncleared swaps between them including registration, greater price premium to be liquidated recordkeeping, reporting, margin, CSEs and counterparties that are swap than cleared swaps, particularly in entities or financial end users, current capital, and business conduct distressed market conditions. Initial requirements. Accordingly, under the exposures might accumulate beyond the margin is designed to address these financial capacity of a counterparty. In mandate of section 4s(e)(3)(C) to risks. preserve the financial integrity of contrast to initial margin, which is The proposal contains a provision designed to cover potential future markets trading swaps and to preserve stating that a CSE would not be deemed the stability of the United States exposures, variation margin addresses to have violated its obligation to collect actual current exposures, that is, losses financial system, the Commission is 49 initial margin if it took certain steps. that have already occurred. Unchecked proposing to require SDs and MSPs to Specifically, if a counterparty failed to collect initial margin from, and to post accumulation of such exposures was pay the required initial margin to the one of the characteristics of the financial initial margin with, one another. CSE, the CSE would be required to make Similarly, as discussed above, the crisis which, in turn, led to the the necessary efforts to attempt to 53 Commission believes that financial end enactment of the Dodd-Frank Act. As collect the initial margin, including the with initial margin, the Commission timely initiation and continued pursuit 44 believes that requiring covered swap Proposed Regulations §§ 23.154(a)(6) and of formal dispute resolution 23.155(a)(3). entities both to collect and pay margin 50 45 This is consistent with the requirement set mechanisms, or otherwise with these counterparties effectively forth in section 4s(h)(3)(B)(iii)(II) of the CEA that demonstrate upon request to the reduces systemic risk by protecting both SDs and MSPs must disclose to counterparties who satisfaction of the Commission that it the covered swap entity and its are not SDs or MSPs a daily mark for uncleared has made appropriate efforts to collect swaps. the required initial margin or 46 Commission Regulation § 23.200(e) defines 51 Proposed Regulation § 23.153(a). execution to mean, ‘‘an agreement by the commenced termination of the swap. 52 Proposed Regulation § 23.153(b). counterparties (whether orally, in writing, The Commission requests comment 53 See The Financial Crisis Inquiry Commission, electronically, or otherwise) to the terms of the on all aspects of the proposal relating to The Financial Crisis Inquiry Report: Final Report of swap transaction that legally binds the the nature and timing of initial margin. the National Commission on the Causes of the counterparties to such terms under applicable law.’’ Financial and Economic Crisis in the United States 17 CFR 23.200(e). (Official Government Edition) at 265–268 (2011), 47 Proposed Regulation § 23.152(a). 49 Proposed Regulation § 23.152(c). available at http://fcic-static.law.stanford.edu/cdn_ 48 Proposed Regulation § 23.152(b). 50 See Commission Regulation § 23.504(b)(4). media/fcic-reports/fcic_final_report_full.pdf.

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counterparty from the effects of a E. Calculation of Initial Margin Concern has been expressed by some default. in the industry about the potential 1. Overview In contrast to the initial margin expense of two-way margin. The $65 requirement, which would only apply to Under the proposed rules, a CSE million threshold is designed to mitigate financial end users with material swaps could calculate initial margin using that expense while continuing to protect exposure, the proposed variation margin either a model-based method or a the financial integrity of CSEs and the requirement would apply to all financial standardized table-based method.59 The financial system. Smaller exposures end users regardless of whether the required amount of initial margin would would be permitted to go entity had material swaps exposure. be the amount computed pursuant to uncollateralized, but a significant This is consistent with international the model or the table minus a threshold percentage of all large exposures would standards.54 It reflects the Commission’s amount of $65 million.60 This amount be supported by collateral. view that variation margin is an could not be less than zero.61 The initial For example, if the initial margin important risk mitigant that (i) reduces margin specified under the rule would the build-up of risk that may ultimately be a minimum requirement, and the calculated for a particular trade were pose systemic risk and (ii) imposes a parties would be free to require more $55 million, the CSE would not be lesser liquidity burden than does initial initial margin. required to post or to collect initial margin. Moreover, this approach is When a CSE entered into a swap with margin because the amount would be consistent with current market practice. a counterparty that was either another below the $65 million threshold. If the The proposal would permit netting of CSE or an SD/MSP subject to a margin amount were $75 million, the variation margin across swaps.55 Any Prudential Regulator, each party would CSE would only be required to post and netting would have to be done pursuant bear the responsibility for calculating to collect $10 million, the amount the to an eligible master netting the amount that it would collect.62 margin calculation exceeded the $65 agreement.56 The agreement would Thus, for such trades, the amount a million threshold. create a single legal obligation for all party posted could differ from the In order to reduce transaction costs, individual transactions covered by the amount it collected either because of the proposal would establish a agreement upon an event of default. It differences in their respective ‘‘minimum transfer amount’’ of would specify the rights and obligations methodologies or because the product $650,000.66 Initial and variation margin of the parties under various has asymmetric risk. As a practical payments would not be required to be circumstances.57 matter, the Commission understands made if the payment were below that As is the case for initial margin, the that the industry is working to develop amount. This amount is consistent with proposal contains a provision stating common standards that would minimize international standards.67 It represents that a CSE would not be deemed to have this for methodologies. an amount sufficiently small that the violated its obligation to collect When, however, a CSE entered into a level of risk reduction might not be variation margin if it took certain swap with a financial entity, the CSE worth the transaction costs of 58 steps. Specifically, if a counterparty would have responsibility for transferring the money. It would affect failed to pay the required variation calculating both the amount it collected only the timing of collection; it would margin to the CSE, the CSE would be and the amount it posted.63 This is not change the amount of margin that required to make the necessary efforts to because the statute does not directly must be collected once the $650,000 attempt to collect the variation margin, impose margin requirements on level was exceeded. including the timely initiation and financial entities. They only come continued pursuit of formal dispute within the scope of section 4s when For example, if a party posted $80 resolution mechanisms, including they trade with SDs or MSPs. million as initial margin on Monday and pursuant to Commission Regulation As noted, the rules would permit the requirement increased to 23.504(b)(4), if applicable, or otherwise CSEs and their covered counterparties $80,400,000 on Tuesday, the party demonstrate upon request to the to establish margin thresholds of up to would not be required to post additional satisfaction of the Commission that it $65 million. This means that the parties funds on Tuesday because the $400,000 has made appropriate efforts to collect could agree not to post and/or to collect increase would be less than the the required variation margin or any margin amount falling below this minimum transfer amount. If, however, commenced termination of the swap. threshold level. For covered entities that on Wednesday, the requirement The Commission requests comment were part of a consolidated group, a increased by another $400,000 to on all aspects of the proposal relating to single threshold would be applied $80,800,000, the party would be the nature and timing of variation across the consolidated group, not required to post the entire $800,000 margin. individually to each entity.64 This additional amount. The Commission requests comment threshold is consistent with the 50 The Commission requests comment on the costs and benefits of the million Euro threshold set forth in the on the $65 million threshold and the proposed approach. Commenters are international standards as is the $650,000 minimum transfer amount. urged to quantify the costs and benefits, consolidated group requirement.65 The The Commission requests comment on if practicable. Commenters also may Prudential Regulators proposed the the costs and benefits of the proposed suggest alternatives to the proposed same treatment in this regard. approach. Commenters are urged to approach where the commenters believe quantify the costs and benefits, if that the alternatives would be 59 Proposed Regulation § 23.154. practicable. Commenters also may appropriate under the CEA. 60 Proposed Regulation § 23.151, definition of suggest alternatives to the proposed ‘‘initial margin threshold amount.’’ approach where the commenters believe 54 61 BCBS/IOSCO Report at 9. Proposed Regulation § 23.154(a)(4). that the alternatives would be 55 Proposed Regulation § 23.153(c). 62 Proposed Regulation § 23.152(a). 56 Proposed Regulation § 23.151, definition of 63 Proposed Regulation § 23.154(b). appropriate under the CEA. ‘‘eligible master netting agreement.’’ 64 Proposed Regulation § 23.151, definition of 57 Id. ‘‘initial margin threshold amount.’’ 66 Proposed Regulation § 23.154(a)(3). 58 Proposed Regulation § 23.153(d). 65 BCBS/IOSCO Report at 9. 67 BCBS/IOSCO Report at 9.

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2. Models models that were not reviewed by a the contract and to liquidate collateral a. Commission Approval Prudential Regulator, the SEC, or a and certain standards with respect to foreign regulator, the Commission legal review of the agreement to ensure Consistent with international would coordinate, if possible, with the that it meets the criteria in the standards, the proposal would require National Futures Association (‘‘NFA’’) definition. CSEs to obtain the written approval of as each CSE would be required to be a The Commission requests comment the Commission before using a model to member of the NFA. on all aspects of the proposed definition calculate initial margin.68 Further, the The Commission requests comment of EMNA. In particular, the Commission CSE would have to demonstrate that the on all aspects of the proposed margin requests comment on whether the model satisfied all of the requirements approval process. Specifically, the proposal provides sufficient clarity 69 of this section on an ongoing basis. In Commission requests comment on the regarding the laws of foreign addition, a CSE would have to notify the appropriateness and feasibility of jurisdictions that provide for limited Commission in writing before extending coordinating with the Prudential stays to facilitate the orderly resolution the use of a model that has been Regulators, the SEC, foreign regulators, of financial institutions. The approved to an additional product type, and the NFA in this regard. Commission also seeks comment making any change to any initial margin The Commission is also considering regarding whether the provision for a model that has been approved that whether it would be appropriate to contractual agreement subject by its would result in a material change in the provide for provisional approval upon terms to limited stays under resolution CSE’s assessment of initial margin the filing of an application pending regimes adequately encompasses requirements; or making any material review. The Commission requests potential contractual agreements of this change to assumptions used in the comment on the appropriateness of such nature or whether this provision needs 70 model. The Commission could rescind an approach. to be broadened, limited, clarified, or its approval of a model if the In order to expedite the review of modified in some manner. Commission determined that the model models further, the Commission is 71 c. Elements of a Model no longer complied with this section. proposing to delegate authority to staff Given the central place of modeling in to perform the functions described The proposal specifies a number of most margin systems and the above. As is the case with existing conditions that a model would have to complexity of the process, the 75 delegations to staff, the Commission meet to receive Commission approval. Commission believes that these would continue to reserve the right to They include, among others, the oversight provisions are necessary. The perform these functions itself at any following. resources that would be needed, time. however, to initially review and to (i) Ten-Day Close-Out Period The Commission requests comment periodically assess margin models The model must calculate potential on whether additional procedural detail present a significant challenge to the future exposure using a one-tailed 99 is appropriate. For example, should Commission. To address this issue, the percent confidence interval for an time frames be specified for completion Commission would seek to coordinate increase in the value of the uncleared of any of the functions? with both domestic and foreign swap or netting set of uncleared swaps authorities in the review of models. b. Applicability to Multiple Swaps due to an instantaneous price shock that In many instances, CSEs whose To the extent that more than one is equivalent to a movement in all margin models would be subject to uncleared swap is executed pursuant to material underlying risk factors, Commission review would be affiliates an eligible master netting agreement including prices, rates, and spreads, of entities whose margin models would (‘‘EMNA’’) 72 between a CSE and a over a holding period equal to the be subject to review by one of the covered counterparty, the CSE would be shorter of ten business days or the Prudential Regulators. In such permitted to calculate initial margin on maturity of the swap. situations, the Commission would an aggregate basis with respect to all The required 10-day close-out period coordinate with the Prudential uncleared swaps governed by such assumption is consistent with Regulators in order to avoid duplicative agreement.73 As explained below, counterparty credit risk capital efforts and to provide expedited however, only exposures in certain asset requirements for banks. The calculation approval of models that a Prudential classes could be offset. If the agreement must be performed directly over a 10- Regulator had already approved. For covered uncleared swaps entered into day period. In the context of bank example, if a Prudential Regulator had before the applicable compliance date, regulatory capital rules, a long horizon approved the model of a depository those swaps would have to be included calculation (such as 10 days), under institution registered as an SD, in the calculation.74 certain circumstances, may be indirectly Commission review of a comparable The proposal defines EMNA as any computed by making a calculation over model used by a non-bank affiliate of written, legally enforceable netting a shorter horizon (such as 1 day) and that SD would be greatly facilitated. agreement that creates a single legal then scaling the result of the shorter Similarly, the Commission would obligation for all individual transactions horizon calculation to be consistent coordinate with the SEC for CSEs that covered by the agreement upon an event with the longer horizon. The proposed are dually registered and would of default (including receivership, rule does not provide this option to coordinate with foreign regulators that insolvency, liquidation, or similar covered swap entities using an had approved margin models for foreign proceeding) provided that certain approved initial margin model. The CSEs. For CSEs that that wished to use conditions are met. These conditions Commission’s understanding is that the include requirements with respect to the rationale for allowing such indirect 68 Proposed Regulation § 23.154(b)(1). See BCBS/ covered swap entity’s right to terminate calculations that rely on scaling shorter IOSCO Report at 12: ‘‘any quantitative model that horizon calculations has largely been is used for initial margin purposes must be approved by the relevant supervisory authority.’’ 72 This term is defined in Proposed Regulation based on computational and cost 69 Id. § 23.151. considerations that were material in the 70 Id. 73 Proposed Regulation § 23.154(b)(2). 71 Id. 74 Id. 75 Proposed Regulation § 23.154(b)(3).

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past but are much less so in light of margin purposes and whether fewer or during short-term bouts of heightened advances in computational speeds and more distinctions should be made. volatility. reduced computing costs. The The Commission is aware that some The model must use risk factors Commission seeks comment on whether swaps may be difficult to classify into sufficient to measure all material price the option to make use of such indirect one and only one asset class because risks inherent in the transactions for calculations has a material effect on the some swaps may have characteristics which initial margin is being calculated. burden of complying with the proposed that relate to more than one asset class. The risk categories must include, but rule, and whether such indirect Under the proposal, the Commission should not be limited to, foreign methods are appropriate in light of expects that the CSE would make a exchange or interest rate risk, credit current computing methods and costs. determination as to which asset class risk, equity risk, agricultural commodity best represents the swap based on a risk, energy commodity risk, metal (ii) Portfolio Offsets holistic view of the underlying swap. As commodity risk, and other commodity The model may reflect offsetting a specific example, many swaps may risk, as appropriate. For material exposures, diversification, and other have some sensitivity to interest rates exposures in significant currencies and hedging benefits for uncleared swaps even though most of the swap’s markets, modeling techniques must that are governed by the same EMNA by sensitivity relates to another asset class capture spread and basis risk and incorporating empirical correlations such as equity or credit. The incorporate a sufficient number of within the broad risk categories, Commission seeks comment on whether segments of the yield curve to capture provided the covered swap entity or not this approach is reasonable and differences in volatility and imperfect validates and demonstrates the whether or not instances in which the correlation of rates along the yield reasonableness of its process for classification of a swap into one of the curve. modeling and measuring hedging broad asset classes described above is The initial margin model must benefits. The categories are agriculture, problematic and material. If such include all material risks arising from credit, energy, equity, foreign exchange/ instances are material, the Commission the nonlinear price characteristics of interest rate, metals, and other. seeks comment on alternative option positions or positions with Empirical correlations under an eligible approaches to dealing with such swaps. embedded optionality and the master netting agreement may be (iii) Stress Calibration sensitivity of the market value of the recognized by the model within each positions to changes in the volatility of broad risk category, but not across broad The proposed rule requires the initial the underlying rates, prices, or other risk categories. The sum of the initial margin model to be calibrated to a material risk factors. margins calculated for each broad risk period of financial stress. In particular, category must be used to determine the the initial margin model must employ a (iv) Frequency of Margin Calculation aggregate initial margin due from the stress period calibration for each broad The proposed rule requires daily counterparty. asset class (agricultural commodity, calculation of initial margin. The use of For example, if a CSE entered into energy commodity, metal commodity, an approved initial margin model may two credit swaps and two energy swaps other commodity, credit, equity, and result in changes to the initial margin with a single counterparty, the CSE interest rate and foreign exchange). The amount on a daily basis for a number of could use an approved initial margin stress period calibration employed for reasons. model to perform two separate each broad asset class must be First, the characteristics of the swaps calculations: the initial margin appropriate to the specific asset class in that have a material effect on their risk calculation for the credit swaps and the question. While a common stress period may change over time. As an example, initial margin calculation for the energy calibration may be appropriate for some the credit quality of a corporate commodity swaps. Each calculation asset classes, a common stress period reference entity upon which a credit could recognize offsetting and calibration for all asset classes would default swap contract is written may diversification within the credit swaps only be considered appropriate if it is undergo a measurable decline. and within the energy commodity appropriate for each specific underlying Second, any change to the swaps. The result of the two separate asset class. Also, the time period used composition of the swap portfolio that calculations would then be summed to inform the stress period calibration results in the addition or deletion of together to arrive at the total initial must include at least one year, but no swaps from the portfolio would result in margin amount for the four swaps (two more than five years, of equally- a change in the initial margin amount. credit swaps and two energy commodity weighted historical data. Third, the underlying parameters and swaps). This proposed requirement is data that are used in the model may The Commission believes that the intended to balance the tradeoff change over time as underlying correlations of exposures across between shorter and longer data spans. conditions change. For example, a new unrelated asset categories, such as credit Shorter data spans are sensitive to period of financial stress may be and energy commodities, are not stable evolving market conditions but may also encountered in one or more asset enough over time, and, in particular, overreact to short-term and classes. While the stress period during periods of financial stress, to be idiosyncratic spikes in volatility. Longer calibration is intended to reduce the recognized in a regulatory margin model data spans are less sensitive to short- extent to which small or moderate requirement. The Commission further term market developments but may also changes in the risk environment believes that a single commodity asset place too little emphasis on periods of influence the initial margin model’s risk class is too broad and that the financial stress, resulting in assessment, a significant change in the relationship between disparate requirements that are too low. The risk environment that affects the commodity types, such as aluminum requirement that the data be equally required stress period calibration could and corn, are not stable enough to weighted is intended to establish a influence the margin model’s overall warrant hedging benefits within the degree of consistency in model assessment of the risk of a swap. initial margin model. The Commission calibration while also ensuring that Fourth, quantitative initial margin seeks comment on this specific particular weighting schemes do not models are expected to be maintained treatment of asset classes for initial result in excessive margin requirements and refined on a continuous basis to

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reflect the most accurate risk assessment assesses the effectiveness of the controls CSEs that rely on the table for possible with available best practices supporting the model. The internal computing their respective initial and methods. As best practice risk audit function must report its findings margin requirements. management models and methods to the CSE’s governing body, senior To address these potential inequities, change, so too may the risk assessments management, and chief compliance the Commission is proposing an of initial margin models. officer at least annually. adjustment to the table-based initial Given the complexity of margin (v) Benchmarking margin requirement. Specifically, the models and the incentives to calculate Commission would allow a CSE to The proposed rule requires that a lower margin amounts, the Commission calculate a net-to-gross ratio model used for calculating initial believes that rigorous internal oversight adjustment.81 margin requirements be benchmarked is necessary to ensure proper The net-to-gross ratio compares the periodically against observable margin functioning. standards to ensure that the initial The Commission seeks comment on net current replacement cost of the margin required is not less than what a all aspects of the proposed standards for uncleared portfolio (in the numerator) CCP would require for similar models and the proposed levels of with the gross current replacement cost transactions.76 This benchmarking regulatory review. of the uncleared portfolio (in the requirement is intended to ensure that The Commission requests comment denominator). The net current any initial margin amount produced by on the costs and benefits of the replacement cost is the cost of replacing a model is subject to a readily proposed approach. Commenters are the entire portfolio of swaps that is observable minimum. It will also have urged to quantify the costs and benefits, covered under an eligible master netting the effect of limiting the extent to which if practicable. Commenters also may agreement. The gross current the use of models might disadvantage suggest alternatives to the proposed replacement cost is the cost of replacing the movement of certain types of swaps approach where the commenters believe those swaps that have a strictly positive to DCOs by setting lower initial margin that the alternatives would be replacement cost. amounts for uncleared transactions than appropriate under the CEA. For example, consider a portfolio that for similar cleared transactions. consists of two uncleared swaps in 3. Table-Based Method which the mark-to-market value of the d. Control Mechanisms a. Method of Calculation first swap is $10 (i.e., the CSE is owed The proposal would require CSEs to Some CSEs might not have the $10 from its counterparty) and the mark- implement certain control internal technical resources to develop to-market value of the second swap is mechanisms.77 They include, among initial margin models or have simple –$5 (i.e., the CSE owes $5 to its others, the following. portfolios for which they want to avoid counterparty). The net current The CSE must maintain a risk the complexity of modeling. The table- replacement cost is $5 ($10–$5), the management unit in accordance with based method would allow a CSE to gross current replacement cost is $10, existing Commission Regulation calculate its initial margin requirements and the net-to-gross ratio would be 5/10 23.600(c)(4)(i) that reports directly to using a standardized table.79 The table or 0.5.82 senior management and is independent specifies the minimum initial margin The net-to-gross ratio and gross from the business trading units.78 The amount that must be collected as a standardized initial margin amounts unit must validate its model before percentage of a swap’s notional amount. provided in the table are used in implementation and on an ongoing This percentage varies depending on the conjunction with the notional amount of basis. The validation process must asset class of the swap. Except as the transactions in the underlying swap include an evaluation of the conceptual described below, a CSE would be portfolio to arrive at the total initial soundness of the model, an ongoing required to calculate a minimum initial margin requirement as follows: monitoring process to ensure that the margin amount for each swap and sum Standardized Initial Margin = 0.4 × initial margin is not less than what a up all the minimum initial margin Gross Initial Margin + 0.6 × NGR × Gross DCO would require for similar cleared amounts calculated under this section to Initial Margin products, and back testing. arrive at the total amount of initial where: If the validation process revealed any margin. The table is consistent with Gross Initial Margin = the sum of the material problems with the model, the international standards.80 CSE would be required to notify the notional value multiplied by the Commission of the problems, describe b. Net-to-Gross Ratio Adjustment applicable initial margin requirement to the Commission any remedial actions The Commission recognizes that percentage from the table A for each being taken, and adjust the model to using a notional amount measure of uncleared swap in the portfolio insure an appropriate amount of initial initial margin without any adjustment and margin is being calculated. for offsetting exposures, diversification, The CSE must have an internal audit and other hedging benefits might not 81 This calculation is set forth in proposed function independent of the business accurately reflect the size or risks of a Regulation § 23.154(c)(2). trading unit that at least annually CSE’s swap-based positions in many 82 Note that in this example, whether or not the counterparties have agreed to exchange variation situations. Moreover, not adequately margin has no effect on the net-to-gross ratio 76 Proposed Regulation § 23.154(b)(5). recognizing the benefits of offsets, calculation, i.e., the calculation is performed 77 Proposed Regulation § 23.154(b)(5). diversification, and hedging might lead without considering any variation margin 78 Commission Regulation § 23.600 requires each to large disparities between model- payments. This is intended to ensure that the net- registered SD/MSP to establish a risk management to-gross ratio calculation reflects the extent to program that identifies the risks implicated by the based and table-based initial margin which the uncleared swaps generally offset each SD/MSP’s activities along with the risk tolerance requirements. These disparities might other and not whether the counterparties have limits set by the SD/MSP. The SD/MSP should take give rise to inequities between CSEs that agreed to exchange variation margin. As an into account a variety of risks, including market, elect to use an approved model and example, if a swap dealer engaged in a single sold credit, liquidity, foreign currency, legal, credit derivative with a counterparty, then the net- operational, settlement, and other applicable risks. to-gross calculation would be 1.0 whether or not the The risks would also include risks posed by 79 Proposed Regulation § 23.154(c). dealer received variation margin from its affiliates. See 17 CFR 23.600. 80 BCBS/IOSCO Report at Appendix A. counterparty.

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NGR = Net-to-Gross Ratio inputs that to the maximum extent monitored and, thereby, forestall The Commission notes that the practicable and in accordance with potential problems that could calculation of the net-to-gross ratio for existing Regulation 23.504(b)(4) rely on exacerbate a crisis. These measures are margin purposes must be applied only recently-executed transactions, designed to be prudent safeguards to be to swaps subject to the same EMNA and valuations provided by independent used to address weaknesses that may that the calculation is performed across third parties, or other objective only become apparent over time. 85 transactions in disparate asset classes criteria. In addition, each CSE would The Commission seeks comment on within a single netting agreement. have to have in place alternative all aspects of the proposed requirements (Thus, all non-cleared swaps subject to methods for determining the value of an for calculating variation margin. The Commission requests comment the same EMNA can be netted against uncleared swap in the event of the on the costs and benefits of the each other in the calculation of the net- unavailability or other failure of any 86 proposed approach. Commenters are to-gross ratio. By contrast, under a input required to value a swap. urged to quantify the costs and benefits, model, netting is only permitted within 2. Control Mechanisms if practicable. Commenters also may each asset class). This approach is The proposal would also set forth suggest alternatives to the proposed consistent with the standardized several control mechanisms.87 Each CSE approach where the commenters believe counterparty credit risk capital would be required to create and that the alternatives would be requirements. The Commission also notes that if a maintain documentation setting forth appropriate under the CEA. the variation margin methodology with counterparty maintains multiple swap G. Forms of Margin portfolios under multiple EMNAs, the sufficient specificity to allow the 1. Initial Margin standardized initial margin amounts counterparty, the Commission, and any would be calculated separately for each applicable Prudential Regulator to In general, the Commission believes portfolio with each calculation using the calculate a reasonable approximation of that margin assets should share the gross initial margin and net-to-gross the margin requirement independently. following fundamental characteristics. ratio that is relevant to each portfolio. Each CSE would be required to evaluate The assets should be liquid and, with The total standardized initial margin the reliability of its data sources at least haircuts, hold their value in times of would be the sum of the standardized annually, and make adjustments, as financial stress. The value of the assets initial margin amounts for each appropriate. The proposal would permit should not exhibit a significant portfolio. the Commission to require a CSE to correlation with the creditworthiness of The proposed net-to-gross ratio provide further data or analysis the counterparty or the value of the adjustment is consistent with concerning the methodology or a data swap portfolio.90 international standards.83 The proposed source. Guided by these principles, the These provisions are consistent with Commission is proposing that CSEs may table and adjustment are the same as the 88 Prudential Regulators’ proposal. international standards and the only post or accept certain assets to The Commission seeks comment on Prudential Regulators’ proposed rules. meet initial margin requirements to or all aspects of the proposed table-based The Commission’s proposal, however, from covered counterparties.91 These approach. The Commission notes that sets forth more detailed requirements. include: U.S. dollars; cash in a currency the BCBS has recently adopted a new These requirements are consistent with in which payment obligations under the method for the purpose of capitalizing an approach currently under swap are required to be settled; U.S. counterparty credit risk.84 The consideration by an IOSCO working Treasury securities; certain securities Commission seeks comment on whether group. guaranteed by the U.S.; certain the BCBS’s recently adopted The Commission believes that the securities issued or guaranteed by the standardized approach would represent accurate valuation of positions and the European Central bank, a sovereign a material improvement relative to the daily payment of variation margin to entity, or the BIS; certain corporate debt proposed method that employs the net- remove accrued risk is a critical element securities; certain equity securities to-gross ratio. in assuring the safety and soundness of contained in major indices; major The Commission requests comment CSEs and in preserving the financial currencies,92 and gold. on the costs and benefits of the integrity of the markets. The These are assets for which there are proposed approach. Commenters are Commission believes that its experience deep and liquid markets and, therefore, 89 urged to quantify the costs and benefits, with cleared markets coupled with assets that can be readily valued and if practicable. Commenters also may the problems in the uncleared markets easily liquidated. This list includes a suggest alternatives to the proposed noted in section II.A. demonstrates this. number of assets that were not included approach where the commenters believe The Commission believes that the in the 2011 proposal. This is responsive that the alternatives would be proposed provisions avoid potential to a number of commenters who appropriate under the CEA. miscalculations and would allow the expressed concern about the narrowness variation margin calculations to be of that list and the potential that there F. Calculation of Variation Margin would be insufficient available 85 1. Means of Calculation Proposed Regulation § 23.155(a)(1) and collateral. Commission Regulation § 23.504(b)(4). The Commission notes that any debt Under the proposal, each CSE would 86 Proposed Regulation § 23.155(a)(2). security issued by a U.S. Government- be required to calculate variation margin 87 Proposed Regulation § 23.155(b). 88 sponsored enterprise that is not for itself and for each covered BCBS/IOSCO Report at 14–15. 89 operating with capital support or counterparty using a methodology and For example, in May 2000, a clearing member defaulted to the New York Clearing Corporation. A another form of direct financial significant contributing factor was the lack of a assistance from the U.S. government 83 BCBS/IOSCO Report at 13. rigorous settlement price procedure which allowed 84 See the Basel Committee on Banking prices in an illiquid market to be mismarked and Supervision, ‘‘The standardized approach for unrealized losses to accumulate. See Report on 90 See BCBS/IOSCO Report at 16. measuring counterparty credit risk exposures,’’ Lessons Learned from the Failure of Klein & Co, 91 Proposed Regulation § 23.156(a)(1). (March 31, 2014), available at http://www.bis.org/ Division of Trading and Markets, Commodity 92 Major currencies are defined in Proposed publ/bcbs279.pdf. Futures Trading Commission (July 2001). Regulation § 23.151.

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would be eligible collateral only if the bilaterally negotiated above required such as the Euro, then that currency security met the requirements for amounts. For example, if, (Euro) may be considered the currency corporate debt securities. notwithstanding the $65 million in which payment obligations are The Commission also notes that threshold, a CSE decided to collect required to be settled. eligible collateral would include other initial margin to protect itself against The proposal is narrower than the publicly-traded debt that has been the credit risk of a particular 2011 proposal which also permitted deemed acceptable as initial margin by counterparty, the CSE could accept any U.S. Treasury securities.97 This change a Prudential Regulator.93 The Prudential form of collateral. is designed to reinforce the concept that Regulators have indicated that this Except for U.S. dollars and the variation margin is paid and to reduce would include securities that meet the currency in which the payment the potential for disputes to arise over terms of 12 CFR 1.2(d). That provision obligations of the swap is required, the value of assets being used to meet states that the issuer of a security must assets posted as required initial margin this margin requirement. This proposed have adequate capacity to meet financial would be subject to haircuts in order to change is consistent with regulatory and commitments under the security for the address the possibility that the value of industry initiatives to improve projected life of the asset or exposure. the collateral could decline during the standardization and efficiency in the It further states an issuer has adequate period that it took to liquidate a swap OTC derivatives market. For example, in capacity to meet financial commitments position in default. The proposed June of 2013, ISDA published the 2013 if the risk of default by the obligor is low collateral haircuts have been calibrated Standard Credit Support Annex and the full and timely payment of to be broadly consistent with valuation (‘‘SCSA’’). The SCSA provides for the principal and interest is expected. For changes observed during periods of sole use of cash as eligible collateral for example, municipal bonds that meet financial stress. variation margin. The Commission this standard, as determined by a Because the value of noncash supports this and other ongoing Prudential Regulator, would be eligible collateral and foreign currency may regulatory and industry efforts at collateral. change over time, the proposal would standardization that improve Under the proposal, certain assets require a CSE to monitor the value of operational efficiency and reduce the would be prohibited from use as initial such collateral previously collected to 94 differences between the bilateral and margin. These include any asset that satisfy initial margin requirements and, cleared OTC derivatives markets. is an obligation of the party providing to the extent the value of such collateral In this regard, the Commission notes such asset or an affiliate of that party. has decreased, to collect additional that central counterparties generally These also include instruments issued collateral with a sufficient value to require that variation margin be paid in by bank holding companies, depository ensure that all applicable initial margin cash. U.S. law applicable to cleared institutions and market intermediaries. 95 requirements remain satisfied. swaps is consistent with this practice. The use of such assets as initial margin The Commission seeks comment on Section 5b(c)(2)(E) of the CEA requires could compound risk. These restrictions all aspects of the proposed requirements derivatives clearing organizations to reflect the Commission’s view that the for eligible collateral for initial margin. ‘‘complete money settlements on a price and liquidity of securities issued In particular, the Commission requests timely basis (but not less frequently by the foregoing entities are very likely comments on whether the list should be than once each business day).’’ CFTC to come under significant pressure expanded or contracted in any way. If Regulation 39.14(a)(1) defines during a period of financial stress when so, subject to what terms and ‘‘settlement’’ as, among other things, a CSE may be resolving a counterparty’s conditions? ‘‘payment and receipt of variation defaulted swap position and present an The Commission requests comment margin for futures, options, and swaps.’’ additional source of risk. on the costs and benefits of the CFTC Regulation 39.14(b) requires that The Commission requests comment proposed approach. Commenters are ‘‘except as otherwise provided by on the securities subject to this urged to quantify the costs and benefits, Commission order, derivatives clearing restriction, and, in particular, on if practicable. Commenters also may organizations shall effect a settlement whether securities issued by other suggest alternatives to the proposed with each clearing member at least once entities, such as non-bank systemically approach where the commenters believe each business day.’’ important financial institutions that the alternatives would be The Commission believes that this designated by the Financial Stability appropriate under the CEA. Oversight Council, also should be change from the 2011 proposal is 2. Variation Margin excluded from the list of eligible appropriate because it better reflects collateral. The proposal would require that that counterparties to swap transactions Counterparties that wished to rely on variation margin be paid in U.S. dollars, generally view variation margin assets that do not qualify as eligible or a currency in which payment payments as the daily settlement of their collateral under the proposed rule still obligations under the swap are required exposure(s) to one another. would be able to pledge those assets to be settled.96 When determining the Additionally, limiting variation margin with a lender in a separate arrangement, currency in which payment obligations to cash should sharply reduce the such as collateral transformation under the swap are required to be potential for disputes over the value of arrangements, using the cash or other settled, a covered swap entity must variation margin. eligible collateral received from that consider the entirety of the contractual Under this proposed rule, the value of separate arrangement to meet the obligation. As an example, in cases cash paid to satisfy variation margin minimum margin requirements. where a number of swaps, each requirements is not subject to a haircut. Moreover, the Commission notes that potentially denominated in a different Variation margin payments reflect gains the proposal would not restrict the types currency, are subject to a single master and losses on a swap transaction, and of collateral that could be collected or agreement that requires all swap cash payment or receipt of variation margin posted to satisfy margin terms that are flows to be settled in a single currency, generally represents a transfer of ownership. Therefore, haircuts are not a 93 Proposed Regulation § 23.156(a)(1)(ix). 95 Proposed Regulation § 23.156(a)(4). 94 Proposed Regulation § 23.156(a)(2). 96 Proposed Regulation § 23.156(b). 97 76 FR 23732 at 23747.

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necessary component of the regulatory collateral at an independent custodian The Commission previously adopted requirements for cash variation margin. subject to specified terms protects both rules implementing section 4s(l).103 The The proposal is stricter than parties to a transaction by preventing Commission is now proposing to amend international standards which do not assets from being lost or misused. In those rules to reflect the approach require that variation margin be in particular, a prohibition on described above where segregation of cash.98 It is the same as the Prudential rehypothecation enhances safety by initial margin would be mandatory Regulators’ proposal. avoiding the possibility that a margin under certain circumstances. The The Commission seeks comment on asset will be lost because of the failure Commission is proposing three changes. all aspects of the proposed requirements of a third party who was not a party to First, the proposal would amend for forms of variation margin. the original transaction. § 23.701(a)(1) to read as follows: Notify The Commission requests comment Second, section 4s(e)(3)(C) mandates each counterparty to such transaction on the costs and benefits of the that margin rules preserve ‘‘the financial that the counterparty has the right to proposed approach. Commenters are integrity of the markets trading swaps’’ require that any Initial Margin the urged to quantify the costs and benefits, and ‘‘the stability of the United States counterparty provides in connection if practicable. Commenters also may financial system.’’ Maintaining margin with such transaction be segregated in suggest alternatives to the proposed collateral at an independent custodian accordance with §§ 23.702 and 23.703 approach where the commenters believe preserves financial integrity and except in those circumstances where that the alternatives would be financial stability by preventing the segregation is mandatory pursuant to appropriate under the CEA. same asset from supporting multiple § 23.157. (New language in italics.) H. Custodial Arrangements positions. If an SD could take collateral Second, the proposal would amend posted by a counterparty for one swap § 23.701(d) to read as follows: Prior to The proposal sets forth requirements confirming the terms of any such swap, for the custodial arrangements for initial and reuse it to margin a second swap with another SD, and that SD could, in the swap dealer or major swap margin posted for transactions between participant shall obtain from the CSEs and covered counterparties.99 turn, do the same, this would increase leverage in the system and create the counterparty confirmation of receipt by Each CSE that posts initial margin with the person specified in paragraph (c) of respect to an uncleared swap would be possibility of a cascade of defaults if one of these firms failed. this section of the notification specified mandated to require that all funds or in paragraph (a) of this section, and an Third, section 4s(e)(3)(A) refers to the other property that it provided as initial election, if applicable, to require such ‘‘greater risk’’ to SDs, MSPs, and the margin be held by one or more segregation or not. The swap dealer or financial system ‘‘arising from the use of custodians that were not affiliates of the major swap participant shall maintain swaps that are not cleared.’’ It mandates CSE or the counterparty. Each CSE that such confirmation and such election as rules ‘‘appropriate for the risk’’ collects initial margin with respect to an business records pursuant to § 1.31 of associated with uncleared swaps. uncleared swap would be mandated to this chapter. (New language in italics.) require that such initial margin be held Margin posted by customers to futures Third, the proposal would amend at one or more custodians that were not commission merchants (‘‘FCMs’’) and § 23.701(f) to read as follows: A affiliates of the CSE or the counterparty. by FCMs to DCOs for cleared swaps is counterparty’s election, if applicable, to 102 Each CSE would be required to enter subject to segregation requirements. It require segregation of Initial Margin or into custodial agreements containing would be inappropriate to address the not to require such segregation, may be specified terms. These would include a greater risk of uncleared swaps with a changed at the discretion of the prohibition on rehypothecating the lesser standard. counterparty upon written notice margin assets and standards for the The proposed rules can be delivered to the swap dealer or major substitution of assets. harmonized with section 4s(l) of the swap participant, which changed The proposed rules are consistent CEA which authorizes counterparties of election shall be applicable to all swaps with international standards except that an SD or an MSP to request that margin entered into between the parties after international standards would allow be segregated. As discussed above, such delivery. (New language in italics.) rehypothecation under certain covered counterparties pose risk to the The Commission seeks comment on circumstances.100 The proposal is the financial system. The primary purpose all aspects of the proposed requirements same as the Prudential Regulators’ of the proposed custodial arrangements regarding custodial arrangements. proposal. The Commission also notes is preservation of the financial integrity The Commission requests comment that the European Supervisory of the markets and the U.S. financial on the costs and benefits of the Authorities have proposed to prohibit system although the arrangements will proposed approach. Commenters are rehypothecation.101 also have the effect of protecting urged to quantify the costs and benefits, The proposed approach is grounded individual market participants. Section if practicable. Commenters also may in several provisions of section 4s(e) of 4s(l) is not made superfluous by the suggest alternatives to the proposed the CEA. First, section 4s(e)(3)(A)(i) proposed rules because it would still be approach where the commenters believe mandates that margin rules ‘‘help available for financial end users with that the alternatives would be ensure the safety and soundness of less than material swaps exposure, for appropriate under the CEA. [SDs] and [MSPs].’’ Maintaining margin financial end users that post initial I. Documentation margin in excess of the required 98 BCBS/IOSCO Report at 14–15. The amount, and for non-financial end users The proposal sets forth international standards do not distinguish between that post initial margin. Such entities documentation requirements for initial margin and variation margin in discussing 104 eligible assets. would be posting margin, by agreement, CSEs. For uncleared swaps between a 99 Proposed Regulation § 23.157. with SDs or MSPs. Section 4s(l) would CSE and a covered counterparty, the 100 BCBS/IOSCO Report at 19–20. provide them with an opportunity to 101 See ‘‘Draft Regulatory Technical Standards on obtain additional protection if they 103 Protection of Collateral of Counterparties to Risk-mitigation Techniques for OTC-derivative desired. Uncleared Swaps; Treatment of Securities in a Contracts Not Cleared by a CCP under Article Portfolio Margining Account in a Commodity 11(15) of Regulation (EU) No. 648/2012,’’ pp. 11, Broker Bankruptcy, 78 FR 66621 (Nov. 6, 2013). 42–43 (April 14, 2014). 102 Section 4d(f) of the CEA. 104 Proposed Regulation § 23.158.

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documentation would be required to margin for any uncleared swaps where disruptive. Second, the elimination of provide the CSE with the contractual both (i) the CSE combined with all its current exposures through the daily use right and obligation to exchange initial affiliates and (ii) its counterparty of variation margin would be an margin and variation margin in such combined with all its affiliates, have an effective first step in enhancing the amounts, in such form, and under such average daily aggregate notional amount safety and soundness of market circumstances as are required by of uncleared swaps, uncleared security- participants and the financial integrity § 23.150 through § 23.160 of this part. based swaps, foreign exchange forwards, of the markets. For uncleared swaps between a CSE and and foreign exchange swaps in June, The proposal is consistent with a non-financial entity, the July, and August 2015 that exceeds $4 international standards except for the 8 documentation would be required to trillion, where such amounts are billion euro threshold, discussed above, specify whether initial and/or variation calculated only for business days; that would apply starting Dec. 1, 2019 margin will be exchanged and, if so, to December 1, 2016 for the under the international standards.107 include the information set forth in the requirements in § 23.152 for initial The proposal is the same as the proposal rule. That information would include margin for any uncleared swaps where of the Prudential Regulators. the methodology and data sources to be both (i) the CSE combined with all its The Commission requests comment used to value positions and to calculate affiliates and (ii) its counterparty on the costs and benefits of the initial margin and variation margin, combined with all its affiliates, have an proposed approach. Commenters are dispute resolution procedures, and any average daily aggregate notional amount urged to quantify the costs and benefits, margin thresholds. of uncleared swaps, uncleared security- if practicable. Commenters also may The international standards do not based swaps, foreign exchange forwards, suggest alternatives to the proposed contain a specific requirement for and foreign exchange swaps in June, approach where the commenters believe documentation. The requirements in the July and August 2016 that exceeds $3 that the alternatives would be Prudential Regulators’ proposal are trillion, where such amounts are appropriate under the CEA. consistent with the Commission calculated only for business days; K. Request for Comment proposal but the Commission proposal December 1, 2017 for the The Commission requests comment contains additional elements. requirements in § 23.152 for initial The Commission proposal contains a margin for any uncleared swaps where on all aspects of the proposed rules. In cross-reference to an existing both (i) the CSE combined with all its particular, as noted above, the Commission rule which already affiliates and (ii) its counterparty Commission invites comments on the imposes documentation requirements combined with all its affiliates have an potential costs and benefits of each provision. Commenters are urged to on SDs and MSPs.105 Consistent with average daily aggregate notional amount quantify the costs and benefits, if that rule, the proposal would apply of uncleared swaps, uncleared security- practicable. Commenters also may documentation requirements not only to based swaps, foreign exchange forwards, suggest alternatives to the proposed covered counterparties but also to non- and foreign exchange swaps in June, approach where the commenters believe financial end users. Having July and August 2017 that exceeds $2 that the alternatives would be comprehensive documentation in trillion, where such amounts are appropriate under the CEA. advance concerning these matters calculated only for business days; would allow each party to a swap to December 1, 2018 for the III. Advance Notice of Proposed manage its risks more effectively requirements in § 23.152 for initial Rulemaking on the Cross-Border throughout the life of the swap and to margin for any uncleared swaps where Application of the Proposed Margin avoid disputes regarding issues such as both (i) the CSE combined with all its Rules affiliates and (ii) its counterparty valuation during times of financial A. Alternative Options turmoil. This would benefit not only the combined with all its affiliates have an CSE but the non-financial end user as average daily aggregate notional amount Section 2(i) of the CEA 108 provides well. of uncleared swaps, uncleared security- that the provisions of the CEA relating The Commission seeks comment on based swaps, foreign exchange forwards, to swaps that were enacted by the Wall all aspects of the proposed requirements and foreign exchange swaps in June, Street Transparency and Accountability for documentation. July and August 2018 that exceeds $1 Act of 2010 (including any rule The Commission requests comment trillion, where such amounts are prescribed or regulation promulgated on the costs and benefits of the calculated only for business days; under that Act, shall not apply to proposed approach. Commenters are December 1, 2019 for the activities outside the United States urged to quantify the costs and benefits, requirements in § 23.152 for initial unless those activities (1) have a direct if practicable. Commenters also may margin for any other CSE with respect and significant connection with suggest alternatives to the proposed to uncleared swaps entered into with activities in, or effect on, commerce of approach where the commenters believe any other counterparty. the United States or (2) contravene such that the alternatives would be This extended schedule is designed to rules or regulations as the Commission appropriate under the CEA. give market participants ample time to may prescribe or promulgate as are develop the systems and procedures necessary or appropriate to prevent the J. Implementation Schedule necessary to exchange margin and to evasion of any provision of this chapter The proposed rules establish the make arrangements to have sufficient that was enacted by the Wall Street following implementation schedule: 106 assets available for margin purposes. Transparency and Accountability Act of December 1, 2015 for the The requirements would be phased-in 2010. requirements in § 23.153 for variation in steps from the largest covered parties Section 2(i) provides the Commission margin; to the smallest. with express authority over activities December 1, 2015 for the Variation margin would be outside the United States relating to requirements in § 23.152 for initial implemented on the first date for two swaps when certain conditions are met. reasons. First, a significant part of the 105 Commission Regulation § 23.504. market currently pays variation margin 107 BCBS/IOSCO Report at 23–24. 106 Proposed Regulation § 23.160. so full implementation would be less 108 7 U.S.C. 2(i).

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As discussed in part I.A. above, the welcomes any suggestions on other substituted compliance (i.e., the non- primary purpose of the margin possible approaches. The Commission U.S. SD/MSP would be permitted to provision in section 4s(e) is to address may propose and ultimately adopt one comply with the margin requirements of risk to SDs, MSPs, and the financial of the three approaches with its home country’s regulator if the system arising from uncleared swaps. modifications. Commission determines that such Given the risk-mitigation function of the 1. The Cross-Border Guidance Approach requirements are comparable to the margin rules for uncleared swaps, the Commission’s margin requirements). Commission believes that the rules Under the first option, the For trades between a non-U.S. SD/ Commission would apply the margin should apply on a cross-border basis in MSP (whether or not it is a guaranteed requirements consistent with the Cross- a manner that effectively addresses risks affiliate or an affiliate conduit) and a Border Guidance. The Commission to the registered SD or MSP. At the same non-U.S. counterparty that is not a stated in the Guidance that it would time, it may be appropriate, consistent guaranteed affiliate or affiliate conduit, generally treat the margin requirements with principles of international comity the Commission would not apply the (for uncleared swaps) as a transaction- and statutory objectives underlying the margin requirements to such swaps. margin requirements, to allow SDs and level requirement. Consistent with the MSPs to satisfy the margin requirements rationale stated in the Guidance, under In the case of a foreign branch of a by complying with a comparable regime this approach, the proposed margin U.S. bank that is a SD/MSP, the in the relevant foreign jurisdiction, or to requirements would apply to a U.S. SD/ proposed margin requirements would not apply the margin requirements MSP (other than a foreign branch of a apply with respect to all of its uncleared under certain circumstances. U.S. bank that is a SD/MSP) for all of swaps, regardless of the counterparty. In this Advance Notice of Proposed their uncleared swaps (as applicable), However, where the counterparty to the Rulemaking, the Commission is irrespective of whether the counterparty trade is another foreign branch of a U.S. considering three approaches to is a U.S. person 110 or not, without bank that is a SD/MSP or is a non-U.S. applying the margin requirements to substituted compliance. person counterparty (whether or not it Commission-registered SDs and MSPs, On the other hand, under this is a guaranteed affiliate or an affiliate consistent with section 2(i): (1) A approach, the proposed margin conduit), the Commission would allow transaction-level approach that is requirements would apply to a non-U.S. substituted compliance (i.e., the foreign consistent with the Commission’s cross- SD/MSP (whether or not it is a branch of a U.S. bank that is a SD/MSP border guidance (‘‘Guidance ‘‘guaranteed affiliate’’ 111 or an ‘‘affiliate would be permitted to comply with the Approach’’); 109 (2) the Prudential conduit’’ 112) only with respect to its margin requirements of the regulator in Regulators’ approach; and (3) an entity- uncleared swaps with a U.S. person the foreign jurisdiction where the level approach (‘‘Entity-Level counterparty (including a foreign branch foreign branch is located if the Approach’’). The general framework for of U.S. bank that is a SD/MSP) and a Commission determines that such each of these approaches is described non-U.S. counterparty that is guaranteed requirements are comparable to the below. The Commission is not by a U.S. person or is an affiliate Commission’s margin requirements).113 endorsing at this time any particular conduit. Where the counterparty is a Below is a summary of how the approach and invites comments on all guaranteed affiliate or is an affiliate margin requirements would apply under aspects of the three approaches and conduit, the Commission would allow the Cross-Border Guidance Approach.

U.S. person (other Non-U.S. person Non-U.S. person not than Foreign Branch Foreign Branch of guaranteed by, or guaranteed by, and of U.S. Bank that is a U.S. Bank that is a affiliate conduit of, a not an affiliate conduit Swap Dealer or MSP) Swap Dealer or MSP U.S. person of, a U.S. person

U.S. Swap Dealer or MSP (including an affil- Apply ...... Apply ...... Apply ...... Apply iate of a non-U.S. person). Foreign Branch of U.S. Bank that is a Swap Apply ...... Substituted Compli- Substituted Compli- Substituted Compli- Dealer or MSP. ance. ance. ance Non-U.S. Swap Dealer or MSP (including an Apply ...... Substituted Compli- Substituted Compli- Do Not Apply affiliate of a U.S. person). ance. ance.

109 Interpretative Guidance and Policy Statement ‘‘guarantee’’ under the Cross-Border Guidance included in the consolidated financial statements of Regarding Compliance with Certain Swap Approach and the Entity-Level Approach would be the U.S. person. Other facts and circumstances also Regulations, 78 FR 45292 (July 26, 2013) the same as under note 267 of the Guidance and may be relevant. (‘‘Guidance’’). The Commission addressed, among accompanying text. 113 Under a limited exception, where a swap other things, how the swap provisions in the Dodd- 112 Under the Guidance, id. at 45359, the factors between the foreign branch of a U.S. SD/MSP and Frank Act (including the margin requirement for that are relevant to the consideration of whether a a non-U.S. person (that is not a guaranteed or uncleared swaps) would apply on a cross-border person is an ‘‘affiliate conduit’’ include whether: (i) conduit affiliate) takes place in a foreign basis. In this regard, the Commission stated that as The non-U.S. person is majority-owned, directly or jurisdiction other than Australia, Canada, the a general policy matter it would apply the margin indirectly, by a U.S. person; (ii) the non-U.S. person European Union, Hong Kong, Japan, or Switzerland, requirement as a transaction-level requirement. controls, is controlled by, or is under common the counterparties generally may comply only with 110 The scope of the term ‘‘U.S. person’’ as used control with the U.S. person; (iii) the non-U.S. the transaction-level requirements in the foreign in the Cross-Border Guidance Approach and the person, in the regular course of business, engages jurisdiction where the foreign branch is located if Entity-Level Approach would be the same as under in swaps with non-U.S. third party(ies) for the the aggregate notional value of all the swaps of the the Guidance. See Guidance at 45316–45317 for a purpose of hedging or mitigating risks faced by, or U.S. SD’s foreign branches in such countries does summary of the Commission’s interpretation of the to take positions on behalf of, its U.S. affiliate(s), not exceed 5% of the aggregate notional value of all term ‘‘U.S. person.’’ and enters into offsetting swaps or other of the swaps of the U.S. SD, and the U.S. person 111 Under the Guidance, id. at 45318, the term arrangements with such U.S. affiliate(s) in order to maintains records with supporting information for ‘‘guaranteed affiliate’’ refers to a non-U.S. person transfer the risks and benefits of such swaps with the 5% limit and can identify, define, and address that is an affiliate of a U.S. person and that is third-party(ies) to its U.S. affiliates; and (iv) the any significant risk that may arise from the non- guaranteed by a U.S. person. The scope of the term financial results of the non-U.S. person are application of the Transaction-Level Requirements.

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2. Prudential Regulators’ Approach requirements with respect to a trade firm-wide level, irrespective of whether between a non-U.S. SD/MSP and a non- the counterparty is a U.S. person.116 At Under the second option, the U.S. person that is not guaranteed by a the same time, in recognition of Commission would adopt the Prudential U.S. person. But under the definition of Regulators’ approach to cross-border international comity, the Commission is ‘‘foreign covered swap entity’’ in the considering, where appropriate, to allow application of the margin Prudential Regulators’ approach, a non- requirements.114 Under the Prudential SDs/MSPs to satisfy the margin U.S. SD/MSP controlled by a U.S. requirements by complying with a Regulators’ proposal, the Prudential person would not be a foreign covered Regulators would not assert authority comparable regime in the relevant swap entity, and thus, would not qualify foreign jurisdiction, as described in the over trades between a non-U.S. SD/ for the exclusion from the margin 115 table below. This approach would be MSP that is not guaranteed by a U.S. requirement. In addition, the Prudential person and either a (i) non-U.S. SD/MSP intended to address the concern that the Regulators’ proposal incorporates a source of the risk to a firm—given that that is not guaranteed by a U.S. person ‘‘control’’ test for purposes of the non-U.S. SD/MSP has sufficient or (ii) a non-U.S. person that is not determining whether a registered SD/ contact with the United States to require guaranteed by a U.S. person. The MSP (or in the Prudential Regulators’ Prudential Regulators’ approach is proposal, a ‘‘covered swap entity’’) is registration as an SD/MSP—is not generally consistent with the Entity- not a ‘‘foreign’’ entity. confined to its uncleared swaps with Level Approach described below, with U.S. counterparties or to its uncleared the exception of the application of the 3. Entity-Level Approach swaps executed within the United margin requirements to certain non-U.S. Under the third option, the States. A firm’s losses in uncleared SD/MSPs. Commission would treat the margin swaps with non-U.S. counterparties, for However, the Prudential Regulators’ requirements as an entity-level example, could have a direct and proposal in this regard would be requirement. Under this Entity-Level significant impact on the firm’s consistent with the Commission’s Cross- Approach, the Commission would apply financial integrity and on the U.S. Border Guidance Approach to margin its cross-border rules on margin on a financial system.

Counterparty A Counterparty B Applicable requirements

1. U.S. SD/MSP ...... U.S. person ...... U.S. (All). 2. U.S. SD/MSP ...... Non U.S. person guaranteed by a U.S. person ... U.S. (All). 3. Non-U.S. SD/MSP guaranteed by a U.S. person not registered as an SD/MSP ...... U.S. (All). U.S. person. 4. Non-U.S. SD/MSP guaranteed by a Non-U.S. person guaranteed by a U.S. person ... U.S. (All). U.S. person. 5. U.S. SD/MSP ...... Non-U.S. person not guaranteed by a U.S. per- U.S. (Initial Margin collected by U.S. SD/MSP). son. Substituted Compliance (Initial Margin collected by non-U.S. person not guaranteed by a U.S. person). U.S. (Variation Margin). 6. Non-U.S. SD/MSP guaranteed by a Non-U.S. person not guaranteed by a U.S. per- U.S. (Initial Margin collected by non-U.S. SD/ U.S. person. son. MSP guaranteed by a U.S. person). Substituted Compliance (Initial Margin collected by non-U.S. person not guaranteed by a U.S. person). U.S. (Variation Margin). 7. Non-U.S. SD/MSP not guaranteed by U.S. person not registered as an SD/MSP ...... Substituted Compliance (All). a U.S. person. 8 Non-U.S. SD/MSP not guaranteed by a Non-U.S. person guaranteed by a U.S. person ... Substituted Compliance (All). U.S. person. 9. Non-U.S. SD/MSP not guaranteed by Non-U.S. SD/MSP not guaranteed by a U.S. per- Substituted Compliance (All). a U.S. person. son. 10. Non-U.S. SD/MSP not guaranteed by Non-U.S. person not registered as an SD/MSP Substituted Compliance (All). a U.S. person. and not guaranteed by a U.S. person.

B. Questions proposed rules relating to the cross- this exclusion is over- or under- border application of the margin rules. inclusive, and if so, please explain why. In this Advance Notice of Proposed Commenters are encouraged to address, 2. Each of the options provides for Rulemaking, the Commission requests among other things, the following substituted compliance under certain comment on all aspects of these options questions: situations. In light of the equal or greater to the cross-border application of the 1. Under the Guidance Approach and supervisory interest of the foreign margin requirements. In particular, the Prudential Regulators Approach, certain regulator in certain circumstances, the Commission is interested in comments trades involving a non-U.S. SD/MSP Commission is seeking comment on relating to the costs and benefits of the would be excluded from the whether the scope of substituted various approaches so that it can take Commission’s margin rules. The compliance under each option is that into consideration when developing Commission seeks comment on whether appropriate.

114 See Section 9 of Margin and Capital 115 Under the Prudential Regulators’ approach, if 116 However, substituted compliance may be Requirements for Covered Swap Entities, 12 CFR an SD/MSP is under the control of a U.S. person, available under certain circumstances, as described Part 237 (Sept. 3, 2014), available at http://www. it would not be considered a non-U.S. SD/MSP. in the Guidance for entity-level requirements. federalreserve.gov/newsevents/press/bcreg/bcreg 20140903c1.pdf.

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3. The Commission is seeking Specifically, the Commission seeks The Commission previously has comments on whether, in defining a quantitative estimates of costs of determined that SDs and MSPs are not non-U.S. covered swap entity, it should transacting uncleared swaps with each small entities for purposes of the use the concept of ‘‘control,’’ in category of counterparties, and/or access RFA.119 The Commission also determining whether a covered swap specific geographical markets, under previously has determined that ECPs are entity is (or should be treated as) a non- each of the different alternatives. not small entities for RFA purposes.120 U.S. covered swap entity. If the Commission seeks quantitative Because ECPs are not small entities, and Commission uses a concept of control, estimates of such impact on the ability persons not meeting the definition of should it be the same as that used by the of the affected market participants (who ECP may not conduct transactions in Prudential Regulators, or should it be might be unable to access specific uncleared swaps, the Commission need different? markets or counterparties) to hedge their not conduct a regulatory flexibility 4. In the Commission’s view, it is the risks using uncleared swaps. As the analysis respecting the effect of these substance, rather than the form, of an proposed margins on uncleared swaps proposed rules on ECPs. agreement, arrangement or structure that are designed to strengthen market Accordingly, this proposed rule will should determine whether it should be integrity, the Commission seeks not have a significant economic effect considered a ‘‘guarantee.’’ The comments on potential impact of each on any small entity. Therefore, the Commission invites comment on how of these alternatives on market Chairman, on behalf of the Commission, the term ‘‘guarantee’’ should be participants’ business models and hereby certifies pursuant to 5 U.S.C. construed or defined in the context of trading strategies that could potentially 605(b) that the proposed regulations these margin rules. For example, should compromise this policy goal. will not have a significant economic the definition cover the multitude of Commenters are encouraged to quantify impact on a substantial number of small different agreements, arrangements and and provide institutional details. entities. structures that transfer risk directly back 9. The Commission is seeking B. Paperwork Reduction Act to the United States with respect to comments on how the different financial obligations arising out of a alternatives impact price discovery? The Paperwork Reduction Act of 1995 swap? Should the definition cover such Commenters are encouraged to quantify, (‘‘PRA’’) 121 imposes certain agreements, arrangements and if practical. For instance, will different requirements on Federal agencies, structures even if they do not cross-border alternatives impact the including the Commission, in specifically reference the relevant swap ability of different categories of market connection with their conducting or or affirmatively state that it does not participants, as contemplated in these sponsoring any collection of apply to such swap? Should the alternatives, to transact uncleared swaps information, as defined by the PRA. definition cover agreements, with each other? The Commission seeks This proposed rulemaking would result arrangements and structures even if the quantitative estimates of such impact on in the collection of information other party to the swap terminates, transacted volumes and the pricing of requirements within the meaning of the waives, or revokes the benefit of such uncleared swaps. PRA, as discussed below. The proposed agreements, arrangements or structures? 10. The Commission is seeking rulemaking contains collections of 5. The Commission seeks comments comments on the relative costs and information for which the Commission on the costs and benefits of difficulty of compliance associated with has previously received control harmonization with the Prudential each of the three approaches. Is one of numbers from OMB. The titles for these Regulators’ proposal. collections of information are 6. The Commission invites the approaches preferable to the others in this regard? ‘‘Regulations and Forms Pertaining to commenters to comment in particular Financial Integrity of the Market Place, on the benefits of each of the 11. The Commission is seeking comments on the impact of each of the OMB control number 3038–0024’’ and approaches with respect to the statutory ‘‘Swap Trading Relationship goal of protecting the financial system three approaches on a SD/MSP’s risk management practices. Documentation Requirements for Swap against the risks associated with Dealers and Major Swap Participants, uncleared swaps. IV. Related Matters OMB control number 3038–0088.’’ 7. Given that some foreign A. Regulatory Flexibility Act The collections of information that are jurisdictions may not adopt comparable proposed by this rulemaking are margin requirements, the Commission The Regulatory Flexibility Act necessary to implement section 4s(e) of seeks comment on the costs and benefits (‘‘RFA’’) requires that agencies consider the CEA, which expressly requires the of not requiring substituted compliance whether the regulations they propose Commission to adopt rules governing in emerging markets with respect to will have a significant economic impact margin requirements for SDs and MSPs. certain transactions and what might be on a substantial number of small If adopted, responses to this collection an appropriate threshold percentage of a entities.117 The Commission previously of information would be mandatory. An swap portfolio of participants or other has established certain definitions of agency may not conduct or sponsor, and standard for a de minimis level. In ‘‘small entities’’ to be used in evaluating a person is not required to respond to, particular, the Commission is seeking the impact of its regulations on small a collection of information unless it comment on potential competitive entities in accordance with the RFA.118 displays a currently valid control impacts. Commenters are encouraged to The proposed regulations would affect number. quantify, if practical. SDs and MSPs and their counterparties 8. The Commission seeks comment, to uncleared swaps. As the only 1. Clarification of Collection 3038–0088 including quantitative estimates in counterparties of SDs and MSPs to This proposed rulemaking clarifies terms of notional volumes of swap uncleared swaps can be other SDs, the existing collection of information activity, about how the different cross- MSPs or ECPs, the following RFA will found in OMB Control Number 3038– border alternatives may impact the only discuss these entities. competitive landscape between U.S. 119 See 77 FR 30596, 30701 (May 23, 2012). entities and non-U.S. entities 117 5 U.S.C. 601 et seq. 120 See 66 FR 20740, 20743 (April 25, 2001). participating in swap markets. 118 47 FR 18618 (Apr. 30, 1982). 121 44 U.S.C. 3501 et seq.

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0088.122 Regulation 23.151 defines change is consistent with the million if not resolved in specified terms used in the proposed rule, requirements of this section, and timeframes. Accordingly, this proposed including the definition of ‘‘eligible independent review of such rulemaking, specifically the master netting agreement,’’ which demonstrable analysis and approval requirements found in proposed provides that a CSE that relies on the (§ 23.154(b)(7)). Regulation § 23.154(b)(4) through (7), agreement for purpose of calculating the Proposed Regulation § 23.155(b) proposed Regulations §§ 23.155(b) and required margin must (1) conduct requires a covered swap entity to create 23.158, would not impact the burden sufficient legal review of the agreement and maintain documentation setting estimates currently provided for in OMB to conclude with a well-founded basis forth the variation margin methodology, Control No. 3038–0088. that the agreement meets specified evaluate the reliability of its data 2. Revisions to Collection 3038–0024 criteria and (2) establish and maintain sources at least annually, and make written procedures for monitoring adjustments, as appropriate, and Collection 3038–0024 is currently in relevant changes in the law and to provides that the Commission at any force with its control number having ensure that the agreement continues to time may require a covered swap entity been provided by OMB. The proposal satisfy the requirements of this section. to provide further data or analysis would revise collection 3038–0024 as The term ‘‘eligible master netting concerning the methodology or a data discussed below. agreement’’ is used elsewhere in the source. Proposed Regulation § 23.154(b)(1) proposed rule to specify instances in Proposed Regulation § 23.158 requires requires CSEs that wish to use initial which a CSE may (1) calculate variation a covered swap entity to execute trading margin models to obtain the margin on an aggregate basis across documentation with each counterparty Commission’s approval, and to multiple non-cleared swaps and (2) that is either a swap entity or financial demonstrate to the Commission that the calculate initial margin requirements end user regarding credit support models satisfy standards established in under an initial margin model for one or arrangements that (1) provides the § 23.154.124 These standards include (1) more swaps. contractual right to collect and post a requirement that a CSE receive Proposed Regulations §§ 23.152(c) initial margin and variation margin in approval from the Commission based on and 23.153(d) specify that a CSE shall such amounts, in such form, and under a demonstration that the initial margin not be deemed to have violated its such circumstances as are required; and model meets specific requirements obligation to collect or post initial and (2) specifies the methods, procedures, (§ 23.154(b)(1)); (2) a requirement that a variation margin, respectively, from or rules, and inputs for determining the CSE notify the Commission in writing to a counterparty if the CSE has made value of each non-cleared swap or non- 60 days before extending the use of the the necessary efforts to collect or post cleared security-based swap for model to additional product types, the required margin, including the purposes of calculating variation margin making certain changes to the initial timely initiation and continued pursuit requirements, and the procedures for margin model, or making material of formal dispute resolution resolving any disputes concerning changes to modeling assumptions mechanisms, or has otherwise valuation. The reporting and (§ 23.154(b)(1)); and (3) a variety of demonstrated upon request to the recordkeeping requirements of proposed quantitative requirements, including satisfaction of the Commission that it Regulation § 23.158, proposed requirements that the CSE validate and has made appropriate efforts to collect Regulations § 23.154(b)(4) through (7), demonstrate the reasonableness of its or post the required margin. and proposed Regulation § 23.155(b) are process for modeling and measuring Proposed Regulation § 23.154 contained in the provisions of hedging benefits, demonstrate to the establishes standards for initial margin Commission Regulations 23.500 through satisfaction of the Commission that the models. These standards include (1) a 23.506, which were adopted on omission of any risk factor from the requirement that a CSE review its initial September 11, 2012, and part of OMB calculation of its initial margin is margin model annually (§ 23.154(b)(4)); Control No. 3038–0088.123 Thus, the appropriate, demonstrate to the (2) a requirement that the covered swap requirements in this proposal that are satisfaction of the Commission that entity validate its initial margin model subject to collection 3038–0088 were incorporation of any proxy or initially and on an ongoing basis, previously addressed by the approximation used to capture the risks describe to the Commission any Commission in adopting the swap of the covered swap entity’s non-cleared remedial actions being taken, and report documentation trading requirements swaps or non-cleared security-based internal audit findings regarding the and simply further clarified in this swaps is appropriate, periodically effectiveness of the initial margin model proposal. review and, as necessary, revise the data to the CSE’s board of directors or a To be sure, Commission Regulation used to calibrate the initial margin committee thereof (§§ 23.154(b)(5)(ii) § 23.504(b) requires an SD or MSP to model to ensure that the data through 23.154(b)(5)(iv)); (3) a maintain written swap trading incorporate an appropriate period of requirement that the CSE adequately relationship documentation that must significant financial stress documents all material aspects of its include all terms governing the trading (§ 23.154(b)(3)). initial margin model (§ 23.154(b)(6)); relationship between the SD or MSP and The requirement of proposed and (4) a requirement that the CSE its counterparty, and Commission Regulation § 23.154(b)(1) that a CSE adequately documents internal Regulation § 23.504(d) requires that authorization procedures, including each SD and MSP maintain all 124 The Commission previously proposed to adopt escalation procedures that require documents required to be created regulations governing standards and other pursuant to Commission Regulation requirements for initial margin models that would review and approval of any change to be used by SDs and MSPs to margin uncleared swap the initial margin calculation under the 23.504. Also, Commission Regulation transactions. See Capital Requirements of Swap initial margin model, demonstrable § 23.502(c) requires each SD and MSP to Dealers and Major Swap Participants, 76 FR 27,802 analysis that any basis for any such notify the Commission and any (May 12, 2011). As part of the proposal, the applicable Prudential Regulator of any Commission submitted proposed revisions to collection 3038–0024 for the estimated burdens 122 See OMB Control No. 3038–0088, available at swap valuation dispute in excess of $20 associated with the margin model to OMB. The http://www.reginfo.gov/public/do/PRAOMBHistory Commission is resubmitting new estimated burden ?ombControlNumber=3038-0088. 123 77 FR 55904 (Sept. 12, 2012). as part of this re-proposal of the regulations.

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must obtain the Commission’s approval Comments may be submitted directly returns for market participants posting to use an initial margin model by to the Office of Information and collateral might also be offset to some submitting documentation Regulatory Affairs, by fax at (202) 395– degree by improvements in pricing as a demonstrating that the initial margin 6566 or by email at OIRAsubmissions@ result of the reduction in risk of the model meets the standards set forth in omb.eop.gov. Please provide the swap. The reduction in counterparty § 23.154, and the requirement that a CSE Commission with a copy of submitted credit risk from the posting of collateral must provide the Commission with comments so that all comments can be may result in tighter spreads quoted by written notice 60 days prior to summarized and addressed in the final liquidity providers.126 From a regulatory extending the use of the initial margin rule preamble. Refer to the ADDRESSES perspective, minimum collateral model to additional product types or section of this notice of proposed standards introduce a trade-off between making material changes to the model rulemaking for comment submission potentially lowering anticipated returns would result in revisions to the instructions to the Commission. A copy for market participants and lowering collection. of the supporting statements for the systemic risk from counterparty Currently, there are approximately collections of information discussed defaults. A substantial loss from a 100 SDs and MSPs provisionally above may be obtained by visiting default might induce a cascade of registered with the Commission. The RegInfo.gov. OMB is required to make a defaults in a financial network, and Commission further estimates that decision concerning the collection of perhaps, induce a liquidity crisis and approximately 60 of the SDs and MSPs information between 30 and 60 days the seizing up of parts of the financial will be subject to the Commission’s after publication of this document in the system. In developing this proposal, the margin rules as they are not subject to Federal Register. Therefore, a comment Commission has sought to reduce the a Prudential Regulator. The Commission is best assured of having its full effect potential lowering of investment returns further estimates that all SDs and MSPs if OMB receives it within 30 days of of market participants by allowing them will seek to obtain Commission publication. to use approved models to set margin approval to use models for computing collateral for certain swap transactions C. Cost-Benefit Considerations initial margin requirements. The while still guarding against the dangers Commission estimates that the initial 1. Introduction of systemic risk from counterparty margin model requirements will impose Section 15(a) of the CEA requires the defaults, along with other parts of the an average of 240 burden hours per Commission to consider the costs and rule. registrant. benefits of its actions before 2. Rule Summary Based upon the above, the estimated promulgating a regulation under the This proposed rulemaking is a re- additional hour burden for collection CEA or issuing certain orders.125 3038–0024 was calculated as follows: proposal of prior CFTC proposed Section 15(a) further specifies that the 127 Number of registrants: 60. rulemaking. It is the result of a costs and benefits shall be evaluated in working group consultation paper Frequency of collection: Initial light of five broad areas of market and submission and periodic updates. issued by BCBS–IOSCO on margin for public concern: (1) Protection of market OTC-derivative contracts not cleared by Estimated annual responses per participants and the public; (2) 128 registrant: 1. a CCP (uncleared derivatives). This efficiency, competitiveness, and proposed rulemaking would implement Estimated aggregate number of financial integrity of futures markets; (3) the new statutory framework of section annual responses: 60. price discovery; (4) sound risk 4s(e) of the CEA, added by section 731 Estimated annual hour burden per management practices; and (5) other of the Dodd-Frank Act, which requires registrant: 240 hours. public interest considerations. The the Commission to adopt capital and Estimated aggregate annual hour Commission considers the costs and initial and variation margin burden: 14,400 hours [60 registrants × benefits resulting from its discretionary requirements for certain SDs and MSPs. 240 hours per registrant]. determinations with respect to the Generally, the proposed rule would 3. Information Collection Comments section 15(a) factors. require the exchange (collection, The Commission recognizes that there posting, and payment) of margin by SDs The Commission invites the public is an inherent trade-off involved in and MSPs for trades with other SDs, and other Federal agencies to comment setting minimum collateral standards. MSPs and financial end-users. Initial on any aspect of the reporting burdens Such standards could increase margin margin is required to be held at third- discussed above. Pursuant to 44 U.S.C. requirements, which in turn would party custodians with no 3506(c)(2)(B), the Commission solicits require market participants to post rehypothecation. These CSEs would not comments in order to: (1) Evaluate additional collateral. Posting additional be required to collect margin from or whether the proposed collection of collateral may result in opportunity post margin to commercial end-users. information is necessary for the proper costs in terms of lost returns from Generally, the CFTC’s margin rules performance of the functions of the investing the funds in collateral, or in will apply to a SD or MSP whenever Commission, including the information interest expenses incurred to raise will have practical utility; (2) evaluate additional funds. Such costs may reduce 126 Posting collateral for swap transactions may the accuracy of the Commission’s the investment returns for market result in other changes in the relationship between estimate of the burden of the proposed participants posting collateral. On the the CSE and counterparty instead of just pricing collection of information; (3) determine other hand, minimum collateral terms of swap contracts. For instance, bank CSEs might lower the required minimum balance on whether there are ways to enhance the standards help to mitigate counterparty checking accounts that counterparty maintain with quality, utility, and clarity of the credit risk. This is achieved by requiring the bank, instead. information to be collected; and (4) market participants to post collateral 127 See 76 FR 23732 (April 28, 2011). minimize the burden of the collection of that is sufficient to cover potential 128 Margin requirements for non-centrally cleared information on those who are to losses from default most of the time. derivatives at http://www.bis.org/publ/bcbs261.pdf, September 2013. The proposed rule establishes respond, including through the use of The potential reduction in investment minimum standards for margin requirements for automated collection techniques or non-centrally cleared derivatives as agreed by BIS other forms of information technology. 125 7 U.S.C. 19(a). and IOSCO.

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there is no Prudential Regulator for that or a financial end user, the covered enforceable in the event of bankruptcy, covered swap entity.129 The CFTC’s swap entity must collect variation insolvency, or similar proceedings. margin rules will apply to swaps that margin from or pay variation margin to Generally, a CSE entering into a swap are not cleared and that are executed the counterparty; (2) a CSE is not with a swap entity or a financial end- subsequent to applicable compliance required to collect or pay variation from user with a material swap exposure that dates set out below, based on an entity’s commercial end-users; and (3) a CSE is collects initial margin from the level of uncleared swaps activity during not required to collect, post, or pay counterparty must require the same a particular period. margin unless and until the total conditions listed above for initial Generally, a CSE must collect IM from amount of margin transfer to be margin posted. a counterparty that is (i) a swap entity, collected or posted for an individual Generally, CSEs must comply with or (ii) a financial end-user with material counterparty exceeds the minimum the minimum margin requirements for swaps exposure ($3 billion notional transfer amount. uncleared swaps on or before the during June, July and August of the The eligible collateral for variation following dates. For variation margin, previous year) in an amount that is no margin is cash funds denominated in (a) covered swap entities must comply by less than the greater of: (i) Zero (0) or USD, or (b) a currency in which December 1, 2015. Initial margin is (ii) the IM collection amount for such payment under the swap contracts is subject to a phased-in period. The swap less the IM threshold amount ($65 required. The eligible collateral for compliance date is December 1, 2015 million—not including any portion of initial margin includes (subject to when both (i) the CSE and its affiliates the IM threshold amount already haircuts on value) financial instruments and (ii) its counterparty and its applied by the covered swap entity or in various categories, including cash, affiliates, have an average daily its affiliates to other swaps with the Treasury securities, and various aggregate notional amount of uncleared counterparty or its affiliates). publicly traded debt and equity swaps, uncleared security-based swaps, Generally, a CSE must post IM for any instruments. A CSE may not collect or foreign exchange forwards and foreign swap with a counterparty that is a post as initial margin any asset that is exchange swaps for each business day in June, July and August 2015 that financial end-user with material swaps a security issued by (i) the party exceeds $4 trillion. The compliance date exposure (see above). A CSE is not providing such asset or an affiliate of is December 1, 2016 when both (i) the required to collect IM from or post IM that party; (ii) various banking entities CSE and its affiliates and (ii) its to commercial end-users. as listed in the proposed rule; or (iii) There are two general methods for counterparty and its affiliates, have an certain government-sponsored calculating initial margin, the average daily aggregate notional amount enterprises unless an exception applies. standardized approach and the model- of uncleared swaps, uncleared security- As defined in the rule, a financial based approach. Under the standardized based swaps, foreign exchange forwards end-user is any counterparty that is not approach, the CSE must calculate IM and foreign exchange swaps for each a covered swap entity and includes, collection amounts using a table/grid business day in June, July and August among others: (i) A commodity pool, that is set out in the proposed rule. 2016 that exceeds $3 trillion. The The model-based approach calculates commodity trading advisor and compliance date is December 1, 2017 an amount of IM that is equal to the commodity pool operator (all defined in when both (i) the CSE and its affiliates potential future exposure (‘‘PFE’’) of a the CEA); (ii) a private fund (defined in and (ii) its counterparty and its swap or a netting set of swaps. PFE is Investment Advisers Act); (iii) an affiliates, have an average daily an estimate of the one-tailed 99% employee benefit plan, as defined in aggregate notional amount of uncleared confidence interval for an increase in ERISA section 3; (iv) a person swaps, uncleared security-based swaps, the value of the swap over a 10 day predominantly engaged in activities that foreign exchange forwards and foreign period (i.e., VaR model for a 10 day are in the business of banking, or in exchange swaps for each business day period). The model-based approach activities that are financial in nature in June, July and August 2017 that must meet the following requirements: (defined in section 4(k) of the BHCA); exceeds $2 trillion. The compliance date (1) The model must have prior written (v) a person defined in (a)–(d), if that is December 1, 2018 when both (i) the approval by the Commission; (2) a CSE person organized under the laws of the CSE and its affiliates and (ii) its must demonstrate that the initial margin U.S.; and (vi) any other entity that in the counterparty and its affiliates, have an model continuously satisfies the rule’s Commission’s discretion is a financial average daily aggregate notional amount requirements; (3) a covered swap entity end-user. A non-financial end-user is of uncleared swaps, uncleared security- must notify the Commission in writing any entity that is not a financial end- based swaps, foreign exchange forwards prior to making material changes to the user or an SD/MSP. and foreign exchange swaps for each model, such as: (a) Extending the use of Generally, a CSE entering into a swap business day in June, July and August the model to an additional product type; with a swap entity or a financial end- 2018 that exceeds $1 trillion. The (b) making any change that results in user with material swap exposure who compliance date is December 1, 2019 for material changes to the amount of IM; posts initial margin to the counterparty any other covered swap entity with or (c) making any material changes to must comply with the following respect to uncleared swaps and the assumptions of the model. The conditions: (1) All funds posted as uncleared security-based swaps entered Commission may rescind its approval in initial margin must be held by a third- into with any other counterparty. party custodian (unaffiliated with either whole or in part of an entity’s margin 3. Status Quo Baseline model at any time. party in the swap); (2) the third-party The rules for variation margin are as custodian is prohibited from re- The baseline against which this follows: (1) On or before the business hypothecating (or otherwise proposed rule will be compared is the day after execution of an uncleared transferring) the initial margin; (3) the status quo. This requires the swap between a covered swap entity third-party custodian is prohibited from Commission to assess what is the and a counterparty that is a swap entity reinvesting the initial margin in any current practice within the swaps asset that would not qualify as eligible industry. At present, swap market 129 For this rulemaking, a swap entity is either a collateral; and (4) the custodial participants are not legally required to swap dealer or a major swap participant. agreement is legal, valid, binding and post either initial or variation margin

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when engaging in uncleared swaps. ISDA Survey estimates that roughly respondents have roughly Ö319 trillion Nevertheless, for risk management 90% of all global uncleared OTC (approximately $415 trillion) in total purposes, many market participants derivatives trades have collateral outstanding notional derivative currently undertake this practice. agreements. 97% and 86% of global positions, are collecting a total of In determining the current market bilateral transactions involving credit roughly Ö95 billion (approximately $124 practices, the Commission utilized and fixed income, respectively, are billion) in initial margin and are posting several sources of swaps market data. subject to collateral agreements or credit roughly Ö6 billion (approximately $7.8 These sources include (i) the ISDA support annexes. The survey reports billion) in initial margin. Hence, average Margin Survey 2014 (‘‘ISDA Survey’’), that the use of cash and government margin represents about 0.03% of the (ii) BIS’s Quantitative impact study on securities accounts for roughly 90% of gross notional exposure.’’ 132 The large margin requirements for non-centrally- uncleared global OTC derivative difference between collected and posted cleared OTC derivatives (‘‘BCBS/IOSCO collateral, as has been the case in prior margin reflects the fact that the BCBS/ Quantitative Impact Study’’), and (iii) years. The total global collateral related IOSCO Quantitative Impact Study Swap Data Repository data (‘‘SDR to uncleared derivatives has decreased respondents tend to be large derivative Data’’). Although the data the 14% from $3.7 trillion at the end of dealers with large swap portfolios with Commission is considering might not be 2012 to $3.2 trillion at the end of 2013. transactions that on aggregate mostly complete, the Commission requests The survey asserts that this decrease can offset, have substantial capital, and who comments regarding whether there is be largely attributed to mandatory have high credit ratings, this generally additional data that it should consider clearing requirements. leads to lower margins. In light of the definition of potential when developing its baseline. b. BCBS/IOSCO’s Quantitative Impact future exposure in this proposal, it is Study a. ISDA Margin Survey useful to examine current practice. The A resource containing current market Another source containing current table below, reproduced from the BCBS/ practice for uncleared swaps is the ISDA market practices for uncleared swaps is IOSCO Quantitative Impact Study Survey.130 The use of collateral the BCBS/IOSCO Quantitative Impact provides some statistics on potential agreements (those with exposure and/or Study.131 According to the Study, future exposure, and related industry collateral balances) is substantial. The BCBS/IOSCO Quantitative Impact Study practices.

TABLE 4b—CURRENT MARGIN PRACTICES FOR UNCLEARED SWAPS

Number of Average Median respondents

Margin period of risk (or risk horizon) in days ...... 8.1 10.0 15 Confidence level (%) used ...... 96.2% 96.3% 14 Length of the look-back period (in years) used in calibration of model ...... 2.9 2.0 13 Level of initial margin as a percentage of potential future exposure ...... 97.5% 100.0% 10 Margin frequency (in days) Variation margin ...... 2.3 1.0 31 Initial margin ...... 1.0 1.0 21 Respondents have provided information on initial margin frequency. Eight (8) of these respondents collect initial margin at deal inception. One (1) of them collects initial margin on an event-driven basis. The remaining 12 respondents collect initial margin daily.

The Commission seeks comment on c. Estimates Using SDR Data regulated CSEs (59 entities) are the representativeness of the BCBS/ presented below. The table also IOSCO’s Quantitative Impact Study. Finally, the Commission reports includes total notional amount of swaps How do the calculations in the BCBS/ aggregated data derived from data transacted by these entities in credit and IOSCO’s Quantitative Impact Study submitted to swap data repositories in a interest rates during the period January 133 compare to the experience of financial weekly swaps market report. Open to June 2014: institutions? Commenters are swap positions in credit and interest encouraged to quantify when possible. rates as of June 27, 2014 for CFTC

OPEN SWAPS AS OF JUNE 27, 2014 [Notional amount in US$ billions (double count)]

Uncleared Cleared

Interest Rates ...... 253,434 223,744 Credit ...... 10,039 879

130 See http://www2.isda.org/functional-areas/ 132 Bank for International Settlements, February research/surveys/margin-surveys. 2013, page 31. See http://www.bis.org/publ/ 131 Bank for International Settlements, February bcbs242.pdf. 2013, page 31, see http://www.bis.org/publ/ 133 See http://www.cftc.gov/MarketReports/ bcbs242.pdf. SwapsReports/index.htm.

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AGGREGATE NOTIONAL SWAPS TRANSACTION (JANUARY TO JUNE 2014) [Notional amount in US$ billions (double count)]

Uncleared Cleared

Interest Rates ...... 12,630 39,816 Credit ...... 1,362 5,717

The Commission notes that OCC’s collateral for swap transactions between This minimum payment does not lower Economic Impact Analysis for Swaps differently regulated CSEs. The the amount owed, but permits deferral Margin Proposed Rule 134 has estimated Commission seeks comment on how it of margin exchanges until it is that in year one, OCC-supervised should consider or allocate the common operationally efficient. In providing this institutions will have to post total initial costs and benefits of the margin relief the Commission believes that it margin of approximately $331 billion collateral that is required by more than will lower the overall burden on the with approximately $283 billion in one CSE regulator. Further, the financial system, but as a result of this interest rate and credit swaps. Using Commission seeks comments on all amount being relatively small the annualized notional swaps activity for aspects of its initial margin estimates Commission believes this deferral just interest rate and credit, and and methods. Commenters are would not noticeably increase the adopting a similar methodology to the encouraged to quantify, if practical. overall risk to the financial system and OCC’s Economic Impact Analysis, the the general public. 4. Section 15(a) Factors Commission estimates that the 59 CFTC The proposed rule also provides that regulated CSEs will have to post initial a. Protection of Market Participants and initial margin must be held at a third- margin in year one of approximately the Public party custodian. The margin amount $340 billion or possibly less as noted Margin helps to protect market held there cannot be rehypothecated below. The OCC’s estimate and the participants from counterparty credit with both parties having access to the Commission’s estimate are not based on risk. It also helps to protect the public collateral. This access is designed to the same data. The OCC’s estimates are by lowering the probability of a prevent a liquidity event, inducing a based on transactions activity implied financial crisis, because margin helps to cascading event. With rehypothecation, by the open swaps positions from Call impede or contain the risk of a cascade the collateral of some parties may be Report schedule RC–L. The of defaults occurring. A cascade occurs linked or used as collateral posted for Commission’s estimates are based on when one participant defaulting causes other positions—the same collateral is transaction data reported to SDRs. To subsequent defaults by its posted for many positions for many the extent SDR data includes financial counterparties, and so on, resulting in a different entities, resulting in a end users without material swaps domino effect and a potential financial rehypothecation chain. When a default exposure, nonfinancial end users, crisis. or liquidity event occurs at one link sovereigns, and multilateral The derivatives positions of swap along the rehypothecation chain, it development banks who do not have to market participants are limited by their might induce further defaults or post collateral, the amount of required ability to post margin. If the ability to liquidity events for other links in the initial margin would be less than the post margin is binding, then required rehypothecation chain, because access Commission’s estimate of approximately margin may reduce swap market to the collateral for other positions may $340 billion. Further, the amount of exposures for some participants. In be obstructed by a default along the required initial margin will be lower as many cases, reduced swap market chain, which may result in a liquidity a result of the $65 million threshold, exposure for a participant may lower event along the entire chain. too. While the OCC has made certain their probability of default, all else The cost of providing initial margin assumptions regarding coverage of the equal. Further, when a swap participant collateral reflects the cost of obtaining swaps activity by its regulated entities defaults, the margin can be used to the assets used as collateral, which is during the different compliance dates, absorb the losses to the counterparty. either the cost of raising external funds, the Commission does not have access to This facilitates the non-defaulting party or the foregone income that could been relevant data to make similar estimates. earned had the firm invested in a The Commission’s initial margin reestablishing a similar position with a different asset (opportunity cost). The estimates assume that uncleared swaps new counterparty. In requiring daily variation margin effective cost is the difference between activities by CFTC regulated CSEs in payments, the proposed rule would the relevant cost of obtaining eligible these two asset classes will remain the require counterparties to mark-to-market assets and the return on the assets that same. These differences in approaches all open swap positions. The process of can be pledged as collateral. The and the data sources means that the marking swap contracts to market or effective cost will likely differ between Commission’s estimates will likely have overstated the actual margins that will model, forces participants to recognize entities and even desks in the same be posted in year one after enactment. losses promptly and to adjust collateral entity as well as over time as conditions The Commission points out that accordingly. This helps to prevent the change. At one extreme, it may be that prudentially regulated CSEs, CFTC accumulation of large unrecognized some entities providing initial margin, regulated CSEs, and SEC regulated CSEs losses and exposures. Consequently, such as pension funds and asset will trade with each other. Thus, one this frequent settling up may reduce the managers, will provide assets as initial cannot simply add the margin estimates probability of default of the party who margin that they already own and by various regulators as this will double has been experiencing losses on the would have owned even if no count the amount of initial margin contract. The proposed rule however, requirements were in place. In such requires a minimum payment amount of cases the economic cost of providing 134 See http://www.regulations.gov/ $650,000, which provides initial margin collateral is anticipated to #!documentDetail;D=OCC-2011-0008-0131. counterparties with operational relief. be low. In other cases, entities engaging

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in uncleared swaps will have to raise exchange variation margin when the of swap contracts due to the cost of additional funds to secure assets that change in valuation is small enough, posting margin. Indeed, this may be the can be pledged as initial margin. The $650,000, achieves additional cost case even if the cost of posting eligible greater the costs of their funding, savings. The proposed rule will create collateral does not increase in price. relative to the rates of return on the additional demand for eligible collateral Finally, the proposed margin rules will initial margin collateral, the greater the to post as margin. Some advocates have be phased in gradually. This gives cost of providing collateral assets. It is expressed concern regarding the future regulators the ability to make difficult, however, to estimate these availability of eligible assets for market adjustments, if necessary. costs due to differences in funding costs participants to post as margin; 135 across different types of entities as well however, in developing this proposal, b. The Efficiency, Competitiveness, and as differences in funding costs over the Commission has added additional Integrity of Markets time, and differences in the rate of types of financial instruments to the list The proposed margin requirements return on different collateral assets that of eligible collateral in an attempt to make cleared swaps relatively more may be used to satisfy the initial margin mitigate this concern. That being said, it attractive. The Commission is requiring requirements. In addition, as a result of is too early to tell the extent to which ten day initial margins for uncleared the fact that posting margin reduces the eligible collateral will become more swaps and only five day margin for risk of default, the posting party could expensive to obtain. Even if higher cleared swaps. In addition, the receive a benefit in the form of demand for collateral does increase the Commission is only allowing limited improved pricing of the swap or other price of certain existing assets, the netting for uncleared swaps. All else beneficial changes to the relationship Commission surmises that markets for equal, due to multilateral netting, less between the CSE and the counterparty. various forms of collateral will clear. collateral may be required in a cleared To the extent any such benefit is Higher prices may create incentives for environment relative to an uncleared realized, it would offset a portion of the creators of high quality assets to supply environment.137 cost incurred in posting collateral. more in the future. For instance, The Commission is allowing only The Commission seeks comment on sovereigns and credit worthy limited netting for uncleared swaps. the appropriate cost or a proxy for the corporations may find it advantageous Limited netting may encourage costs to posting collateral for CFTC to issue more debt; as demand increases participants to use a small number of regulated entities, recognizing that for their debt, prices will rise with counterparties for multiple swap CFTC entities may have different costs corresponding borrowing rates transactions, because participants can for pledging collateral. The Commission decreasing. In addition, mutual funds only net swaps from those made with also seeks comments on the quantitative and hedge funds may be willing for a fee the same counterparty. This may impact of these proposed rules on the to lend out assets that they hold in their encourage the concentration of risk pricing of swaps or other changes in the portfolios to be pledged as initial among a few counterparties. However, relationships between CSEs and margin. Some financial intermediaries these concerns may be mitigated counterparties. may set up services to transform other somewhat by performing frequent The proposal also requires that financial instruments into eligible variation margin be exchanged between collateral, too. portfolio compression exercises that covered swap entities and other swap According to the Committee on the facilitate multilateral netting. entities and financial end-users. The Global Financial System, there seems to Another cost of the rules may be a Commission preliminarily believes that be sufficient eligible collateral at present reduction in the efficacy of hedging. the impact of such requirements are low and in the near term, as they noted that Rules that make standardized swaps in the aggregate because: (i) regular ‘‘Current estimates suggest that the relatively less expensive may induce exchange of variation margin is already combined impact of liquidity regulation some entities to forego some customized a well-established market practice and OTC derivatives reforms could swaps that may better match their among a large number of market generate additional collateral demand to exposures. However, before an entity participants, and (ii) exchange of the tune of $4 trillion. At the same time, decides to use a standardized swap over variation margin simply redistributes the supply of collateral assets is known a customized uncleared swap, it must resources from one entity to another in to have risen significantly since end- weigh the potentially lower margin a manner that imposes no aggregate 2007. Outstanding amounts of AAA- costs from using standardized swaps liquidity costs. An entity that suffers a and AA-rated government securities against potentially losses from imperfect reduction in liquidity from posting alone—based on the market hedges. Consequently, market variation margin is offset by an increase capitalization of widely used participants will still use customized in the liquidity enjoyed by the entity benchmark indices—increased by $10.8 swaps when they believe such swaps receiving the variation margin because trillion between 2007 and 2012. Other are superior for their hedging needs. variation margin is posted with cash. measures suggest even greater increases All the market protection benefits The Commission notes that if the in supply.’’ 136 As discussed above, discussed above may help to improve margin payments are not instantaneous, there may be a reduction in the number the integrity of markets, because they however, there may be a slight loss in make it more likely that swap market liquidity while payments are being 135 See, for instances, Singh (2010), ‘‘Under- participants will be able to perform on posted. collateralisation and rehypothecation in the OTC their contractual obligations. This Posting margin may discourage some derivatives markets,’’ Banque de France Financial comes with potential losses to parties from hedging certain risks Stability Review (14); Sidanius and Zikes (2012), ‘‘OTC derivatives reform and collateral demand participants who have to place their because it is no longer cost effective for impact,’’ Financial Stability Paper (18); and Duffie, capital into margin and, hence them to do so. Consequently, this may Scheicher, and Vuillemey (2014), ‘‘Central Clearing potentially receive lower anticipated reduce liquidity for some swap and Collateral Demand,’’ working paper, Stanford returns on their capital. contracts. This concern is mitigated University. 136 Committee on the Global Financial System, somewhat by exempting non-financial ‘‘Asset encumbrance and the demand for collateral 137 Anderson and Joeveer (2014), ‘‘The Economics end users from having to post margin. assets’’, CGFS Papers, no. 49, May 2013, http:// of Collateral,’’ working paper, London School of Furthermore, not requiring parties to www.bis.org/publ/cgfs49.pdf. Economics.

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The Commission has endeavored to banks that have a material swaps frequency of trading interruptions in harmonize this rulemaking with the exposure generally will have to post segments of the swap market due to domestic prudential regulators, as well margin collateral when engaging in credit risk concerns. This rulemaking as with foreign regulators. Two of the uncleared swaps with CFTC regulated might improve price discovery in these goals of harmonization are to satisfy the CSEs. Thus, small banks may have to instances, because the presence of statute as well as to create a more level fund additional collateral to post as collateral mitigates credit risk concerns, playing field thereby promoting fairer margin for uncleared swaps or engage in and thereby allows these swap contract competition between entities regulated more cleared swaps that require markets to remain functioning. In turn, in different jurisdictions or by different relatively less collateral to post. The this permits market participants to regulators. Otherwise, regulatory Commission is seeking comment on the continue to observe the prices of these arbitrage opportunities might be costs and benefits of requiring small swaps. substantial. Price arbitrage occurs when banks with material swaps exposures to The Commission requests comment an identical asset simultaneously has post collateral with CFTC regulated on potential effects of the rule on price two different prices, so that an arbitrager CSEs. Commenters may choose to discovery as well as on the relative use may buy that asset where it is cheaper recognize that under the prudential of cleared and uncleared swaps, and on and sell it where it is more expensive to regulators’ proposal, small banks that whether particular types of market garner a risk free profit. Similarly, a have a material swaps exposure and that participants, including intermediaries regulatory arbitrager takes advantage of engage in swaps with prudentially such as regulated trading platforms, will regulatory discrepancies by adapting regulated CSEs would have to post be impacted differently by the rule. activities so as to locate them in margin collateral for uncleared swaps, Commenters are urged to quantify the jurisdictions to increase the arbitrager’s too. Further, commenters may also costs and benefits, if practicable. regulatory profits (i.e., regulatory choose to recognize that the d. Sound Risk Management Practices benefits minus regulatory burdens). Commission is required to harmonize The Commission is in discussion with this rulemaking, to the maximum extent Margin helps to mitigate the credit domestic and foreign regulators on the practicable, with the prudential risk exposure resulting from swap material swap exposure threshold for regulators. Comments are encouraged to contracts. Further, it is a sound practice financial end users to be required to quantify, if practical. to regularly mark to market or model to post margin collateral. The Commission prevent the accumulation of notes that some foreign regimes have c. Price Discovery unrecognized losses and exposures proposed a higher threshold than $3 The Commission is requiring ten day (through the exchange of variation billion. In addition, the Commission initial margins for uncleared swaps and margin). At the same time, requiring realizes that setting a threshold lower only five day margin for cleared swaps. margin may help deter traders from than another jurisdiction may result in In addition, the Commission is only taking advantage of the inherent some market participants conducting allowing limited netting for uncleared leverage in certain swap transactions. some swaps in the jurisdiction with a swaps. Consequently, these rules The Commission is requiring ten day lower threshold. The Commission is promote the use of more standardized initial margins for uncleared swaps and required, to the maximum extent cleared swaps at the expense of more only five day initial margin for cleared practicable, to harmonize with customized and opaque swaps. swaps. Thus, the rule may result in the prudential regulators, and domestic To the extent traders increase the use use of more standardized cleared swaps regulators are endeavoring to harmonize of standardized cleared swaps in at the expense of more customized with foreign regulators, as well. response to these rules, it may lead to swaps which may be harder to evaluate Therefore, the Commission expects to greater transparency, overall, in the and risk manage; however, this may consider the relative benefits that might swaps markets. Compared to uncleared result in market participants using non- come from having consistent standards swaps, standardized swaps’ prices tend optimal hedging techniques, as noted against those that might come from to be more transparent and the price above, which may increase overall risk having different thresholds. The discovery process for such swaps may at a firm. Commission is seeking comment on the improve with higher volumes. Prohibiting rehypothecation at third- costs and benefits of setting the Conversely, lower volumes for party custodians when both parties have threshold for material swap exposure for uncleared swaps may negatively impact access to the collateral will be helpful financial end users to be required to the price discovery process for such in the time of default. Otherwise, a post margin collateral at various levels. swaps. However, the Commission liquidity event might occur that induces In particular, commenters are believes that the potential reduction in a cascading event, in which the encouraged to discuss competitive the efficacy of the price discovery positions will be linked to other impacts and to quantify, if practical. In process for uncleared swaps is less of a positions and counterparties. The policy addition, the Commission is seeking concern, because the price-setting of not allowing rehypothecation, comments on the costs and benefits of process for uncleared swaps is not however, requires that more collateral not fully harmonizing its rules with conducted on a regulated platform or be available to post as margin. As those of the prudential regulators. pursuant to rules requiring transparency discussed above, this does not seem to Commenters are encouraged to discuss and is therefore relatively opaque in the be a serious problem at present, but it the operational difficulties and to current environment, anyway. might become one in the future. In quantify, if practical. The Commission recognizes that addition, to protect parties against the Inasmuch as larger banks tend to have another way the rules may affect price circumstance when pledged collateral a lower cost of capital than smaller discovery is by promoting confidence in might be appropriated by the banks, the posting of margin for the market. As such, the margin counterparty, margins must be held at uncleared swaps may result in a collateral rules may protect, third parties. Facilitating the use of competitive advantage for larger banks prophylactically, the price discovery more customized models might induce when engaging in swaps, all else equal. process of some swap contracts in some market participants to more thoroughly Even though they are exempted from circumstances. The rules might protect analyze the risks of their swap clearing as financial end users, small price discovery by reducing the transactions, and may lead to better risk

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management practices overall. The §§ 23.100–23.149 [Reserved] Eligible master netting agreement Commission is allowing various means a written, legally enforceable § 23.150 Scope. methods to model the amount of agreement provided that: collateral required as initial margin for The margin requirements set forth in (1) The agreement creates a single uncleared swap transactions, including § 23.150 through § 23.159 shall apply to legal obligation for all individual Commission-approved standard models uncleared swaps, as defined in § 23.151, transactions covered by the agreement or more customized ones. that are executed after the applicable upon an event of default, including compliance dates set forth in § 23.159. In this proposal, the Commission has upon an event of receivership, added flexibility to what constitutes § 23.151 Definitions applicable to margin insolvency, liquidation, or similar eligible collateral, allowing participants requirements. proceeding, of the counterparty; in uncleared swap transactions to For the purposes of §§ 23.150 through (2) The agreement provides the ‘optimize’ their collateral inasmuch as 23.159: covered swap entity the right to they may reduce their opportunity cost Affiliate means any company that accelerate, terminate, and close out on losses from pledging assets with lower controls, is controlled by, or is under a net basis all transactions under the anticipated returns. This may result in common control with another company. agreement and to liquidate or set off market participants focusing on Bank holding company has the collateral promptly upon an event of improving their margin and risk meaning specified in section 2 of the default, including upon an event of management practices. Bank Holding Company Act of 1956 (12 receivership, insolvency, liquidation, or U.S.C. 1841). similar proceeding, of the counterparty, e. Other Public Interest Considerations Broker dealer means an entity provided that, in any such case, any The Commission has not identified registered with the Securities and exercise of rights under the agreement any other public interest considerations. Exchange Commission under section 15 will not be stayed or avoided under of the Securities Exchange Act of 1934 applicable law in the relevant List of Subjects (15 U.S.C. 78o). jurisdictions, other than in receivership, 17 CFR Part 23 Control of another company means: conservatorship, resolution under the (1) Ownership, control, or power to Federal Deposit Insurance Act (12 Swaps, Swap dealers, Major swap vote 25 percent or more of a class of U.S.C. 1811 et seq.), Title II of the Dodd- participants, Capital and margin voting securities of the company, Frank Act (12 U.S.C. 4617) or under any requirements. directly or indirectly or acting through similar insolvency law applicable to 17 CFR Part 140 one or more other persons; U.S. Government-sponsored enterprises (2) Ownership or control of 25 percent (12 U.S.C. 2183 and 2279cc); Authority delegations (Government or more of the total equity of the (3) The agreement does not contain a agencies), Organization and functions company, directly or indirectly or acting walkaway clause (that is, a provision (Government agencies). through one or more other persons; or that permits a non-defaulting For the reasons discussed in the (3) Control in any manner of the counterparty to make a lower payment preamble, the Commodity Futures election of a majority of the directors or than it otherwise would make under the Trading Commission proposes to amend trustees of the company. agreement, or no payment at all, to a Counterparty means the other party to 17 CFR chapter I as set forth below: defaulter or the estate of a defaulter, a swap to which a covered swap entity even if the defaulter or the estate of the is a party. PART 23—SWAP DEALERS AND defaulter is a net creditor under the Covered counterparty means a MAJOR SWAP PARTICIPANTS agreement); and financial end user with material swaps (4) A covered swap entity that relies ■ exposure, a swap dealer, or a major 1. The authority citation for part 23 on the agreement for purposes of swap participant that enters into a swap continues to read as follows: calculating the margin required by this with a covered swap entity. Authority: 7 U.S.C. 1a, 2, 6, 6a, 6b, 6b–1, Covered swap entity means a swap part: 6c, 6p, 6r, 6s, 6t, 9, 9a, 12, 12a, 13b, 13c, 16a, (i) Conducts sufficient legal review 18, 19, 21. dealer or major swap participant for which there is no prudential regulator. (and maintains sufficient written ■ 2. Add subpart E to part 23 to read as Cross-currency swap means a swap in documentation of that legal review) to follows: which one party exchanges with another conclude with a well-founded basis party principal and interest rate that: Subpart E—Capital and Margin payments in one currency for principal (A) The agreement meets the Requirements for Swap Dealers and and interest rate payments in another requirements of paragraphs (1) through Major Swap Participants currency, and the exchange of principal (3) of this definition; and occurs upon the inception of the swap, (B) In the event of a legal challenge Sec. (including one resulting from default or 23.100–23.149 [Reserved] with reversal of the exchange of 23.150 Scope. principal at a later date that is agreed from receivership, insolvency, 23.151 Definitions applicable to margin upon at the inception of the swap. liquidation, or similar proceeding) the requirements. Data source means an entity and/or relevant court and administrative 23.152 Collection and posting of initial method from which or by which a authorities would find the agreement to margin. covered swap entity obtains prices for be legal, valid, binding, and enforceable 23.153 Collection and payment of variation swaps or values for other inputs used in under the law of the relevant margin. a margin calculation. jurisdictions; and 23.154 Calculation of initial margin. Depository institution has the (ii) Establishes and maintains written 23.155 Calculation of variation margin. procedures to monitor possible changes 23.156 Forms of margin. meaning specified in section 3(c) of the 23.157 Custodial arrangements. Federal Deposit Insurance Act (12 in relevant law and to ensure that the 23.158 Margin documentation. U.S.C. 1813(c)). agreement continues to satisfy the 23.159 Compliance dates. Eligible collateral means collateral requirements of this definition. 23.160–23.199 [Reserved] described in § 23.157. Financial end user means

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(1) A counterparty that is not a swap investment company under section 3 of future exposure under one or more entity and that is: the Investment Company Act of 1940 uncleared swaps. (i) A bank holding company or an (15 U.S.C. 80a–3) but for section Initial margin threshold amount affiliate thereof; a savings and loan 3(c)(5)(C); or an entity that is deemed means an aggregate credit exposure of holding company; or a nonbank not to be an investment company under $65 million resulting from all uncleared financial institution supervised by the section 3 of the Investment Company swaps and uncleared security-based Board of Governors of the Federal Act of 1940 pursuant to Investment swaps between a covered swap entity Reserve System under Title I of the Company Act Rule 3a–7 of the and its affiliates, and a covered Dodd-Frank Act (12 U.S.C. 5323); Securities and Exchange Commission counterparty and its affiliates. (ii) A depository institution; a foreign (17 CFR 270.3a–7); Major currencies means bank; a Federal credit union or State (viii) A commodity pool, a commodity (1) United States Dollar (USD); credit union as defined in section 2 of pool operator, a commodity trading (2) Canadian Dollar (CAD); the Federal Credit Union Act (12 U.S.C. advisor, or a futures commission (3) Euro (EUR); 1752(1) and (6)); an institution that merchant; (4) United Kingdom Pound (GBP); functions solely in a trust or fiduciary (ix) An employee benefit plan as (5) Japanese Yen (JPY); capacity as described in section defined in paragraphs (3) and (32) of (6) Swiss Franc (CHF); 2(c)(2)(D) of the Bank Holding Company section 3 of the Employee Retirement (7) New Zealand Dollar (NZD); Act (12 U.S.C. 1841(c)(2)(D)); an Income and Security Act of 1974 (29 (8) Australian Dollar (AUD); industrial loan company, an industrial U.S.C. 1002); (9) Swedish Kronor (SEK); bank, or other similar institution (x) An entity that is organized as an (10) Danish Kroner (DKK); (11) Norwegian Krone (NOK); and described in section 2(c)(2)(H) of the insurance company, primarily engaged (12) Any other currency designated by Bank Holding Company Act (12 U.S.C. in writing insurance or reinsuring risks the Commission. 1841(c)(2)(H)); underwritten by insurance companies, (iii) An entity that is state-licensed or Market intermediary means or is subject to supervision as such by (1) A securities holding company; registered as: a State insurance regulator or foreign (2) A broker or dealer; (A) A credit or lending entity, insurance regulator; (3) A futures commission merchant; including a finance company; money (xi) An entity that is, or holds itself (4) A swap dealer; or lender; installment lender; consumer out as being, an entity or arrangement (5) A security-based swap dealer. lender or lending company; mortgage that raises money from investors Material swaps exposure for an entity lender, broker, or bank; motor vehicle primarily for the purpose of investing in means that the entity and its affiliates title pledge lender; payday or deferred loans, securities, swaps, funds or other have an average daily aggregate notional deposit lender; premium finance assets for resale or other disposition or amount of uncleared swaps, uncleared company; commercial finance or otherwise trading in loans, securities, security-based swaps, foreign exchange lending company; or commercial swaps, funds or other assets; forwards, and foreign exchange swaps mortgage company; except entities (xii) A person that would be a with all counterparties for June, July registered or licensed solely on account financial entity described in paragraphs and August of the previous calendar of financing the entity’s direct sales of (1)(i)–(xi) of this definition if it were year that exceeds $3 billion, where such goods or services to customers; organized under the laws of the United amount is calculated only for business (B) A money services business, States or any State thereof; or days. including a check casher; money (xiii) Notwithstanding paragraph (2) Minimum transfer amount means an transmitter; currency dealer or of this definition, any other entity that initial margin or variation margin exchange; or money order or traveler’s the Commission determines should be amount under which no actual transfer check issuer; treated as a financial end user. of funds is required. The minimum (iv) A regulated entity as defined in (2) The term ‘‘financial end user’’ transfer amount shall be $650,000 or section 1303(20) of the Federal Housing does not include any counterparty that such other amount as the Commission Enterprises Financial Safety and is: may establish by order. Soundness Act of 1992 (12 U.S.C. (i) A sovereign entity; Multilateral development bank means 4502(20)) and any entity for which the (ii) A multilateral development bank; (1) The International Bank for Federal Housing Finance Agency or its (iii) The Bank for International Reconstruction and Development; successor is the primary federal Settlements; (2) The Multilateral Investment regulator; (iv) An entity that is exempt from the Guarantee Agency; (v) Any institution chartered and definition of financial entity pursuant to (3) The International Finance regulated by the Farm Credit section 2(h)(7)(C)(iii) of the Act and Corporation; Administration in accordance with the implementing regulations; or (4) The Inter-American Development Farm Credit Act of 1971, as amended, (v) An affiliate that qualifies for the Bank; 12 U.S.C. 2001 et seq.; exemption from clearing pursuant to (5) The Asian Development Bank; (vi) A securities holding company; a section 2(h)(7)(D) of the Act. (6) The African Development Bank; broker or dealer; an investment adviser Foreign bank has the meaning (7) The European Bank for as defined in section 202(a) of the specified in section 1 of the Reconstruction and Development; Investment Advisers Act of 1940 (15 International Banking Act of 1978 (12 (8) The European Investment Bank; U.S.C. 80b–2(a)); an investment U.S.C. 3101). (9) The European Investment Fund; company registered with the Securities Foreign exchange forward and foreign (10) The Nordic Investment Bank; and Exchange Commission under the exchange swap mean any foreign (11) The Caribbean Development Investment Company Act of 1940 (15 exchange forward, as that term is Bank; U.S.C. 80a–1 et seq.). defined in section 1a(24) of the Act, and (12) The Islamic Development Bank; (vii) A private fund as defined in foreign exchange swap, as that term is (13) The Council of Europe section 202(a) of the Investment defined in section 1a(25) of the Act. Development Bank; and Advisers Act of 1940 (15 U.S.C. 80–b– Initial margin means collateral (14) Any other entity that provides 2(a)); an entity that would be an collected or posted to secure potential financing for national or regional

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development in which the U.S. § 23.152 Collection and posting of initial (ii) Commenced termination of the government is a shareholder or margin. uncleared swap with the covered contributing member or which the (a) Collection—(1) Initial obligation. counterparty promptly following the Commission determines poses On or before the business day after applicable cure period and notification comparable credit risk. execution of an uncleared swap between requirements. Non-financial end user means a a covered swap entity and a covered counterparty, the covered swap entity § 23.153 Collection and payment of counterparty that is not a swap dealer, variation margin. a major swap participant, or a financial shall collect initial margin from the (a) Initial obligation. On or before the end user. covered counterparty in an amount equal to or greater than an amount business day after execution of an Prudential regulator has the meaning uncleared swap between a covered swap specified in section 1a(39) of the Act. calculated pursuant to § 23.154, in a form that complies with § 23.156, and entity and a counterparty that is a swap Savings and loan holding company pursuant to custodial arrangements that entity or a financial end user, the has the meaning specified in section comply with § 23.157. covered swap entity shall collect 10(n) of the Home Owners’ Loan Act (12 (2) Continuing obligation. The variation margin from, or pay variation U.S.C. 1467a(n)). covered swap entity shall continue to margin to, the counterparty as Securities holding company has the hold initial margin from the covered calculated pursuant to § 23.155 and in a meaning specified in section 618 of the counterparty in an amount equal to or form that complies with § 23.156. Dodd-Frank Act (12 U.S.C. 1850a). greater than an amount calculated each (b) Continuing obligation. The Security-based swap has the meaning business day pursuant to § 23.154, in a covered swap entity shall continue to specified in section 3(a)(68) of the form that complies with § 23.156, and collect variation margin from, or to pay Securities Exchange Act of 1934 (15 pursuant to custodial arrangements that variation margin to, the counterparty as U.S.C. 78c(a)(68)). comply with § 23.157, until such calculated each business day pursuant Sovereign entity means a central uncleared swap is terminated or expires. to § 23.155 and in a form that complies government (including the U.S. (b) Posting—(1) Initial obligation. On with § 23.156 each business day until government) or an agency, department, or before the business day after such uncleared swap is terminated or ministry, or central bank of a central execution of an uncleared swap between expires. government. a covered swap entity and a covered (c) Netting. To the extent that more State means any State, counterparty that is a financial end user, than one uncleared swap is executed commonwealth, territory, or possession the covered swap entity shall post pursuant to an eligible master netting of the United States, the District of initial margin with the covered agreement between a covered swap Columbia, the Commonwealth of Puerto counterparty in an amount equal to or entity and a counterparty, a covered Rico, the Commonwealth of the greater than an amount calculated swap entity may calculate and comply Northern Mariana Islands, American pursuant to § 23.154, in a form that with the variation margin requirements Samoa, Guam, or the United States complies with § 23.156, and pursuant to of this section on an aggregate basis Virgin Islands. custodial arrangements that comply with respect to all uncleared swaps Subsidiary means a company that is with § 23.157. governed by such agreement. If the controlled by another company. (2) Continuing obligation. The agreement covers uncleared swaps Swap entity means a swap dealer or covered swap entity shall continue to entered into before the applicable major swap participant. post initial margin with the covered compliance date set forth in § 23.159, Uncleared security-based swap means counterparty in an amount equal to or those swaps must be included in the a security-based swap that is not cleared greater than an amount calculated each aggregate for the purposes of calculation by a clearing agency registered with the business day pursuant to § 23.154, in a and complying with the variation Securities and Exchange Commission. form that complies with § 23.156, and margin requirements of this section. pursuant to custodial arrangements that (d) Satisfaction of collection and Uncleared swap means a swap that is comply with § 23.157, until such payment requirements. A covered swap not cleared by a registered derivatives uncleared swap is terminated or expires. entity shall not be deemed to have clearing organization, or by a clearing (c) Satisfaction of collection and violated its obligation to collect or to organization that has received a no- posting requirements. A covered swap pay variation margin from a action letter or other exemptive relief entity shall not be deemed to have counterparty if: from the Commission permitting it to violated its obligation to collect or to (1) The counterparty has refused or clear certain swaps for U.S. persons post initial margin from a covered otherwise failed to provide or to accept without being registered as a derivatives counterparty if: the required variation margin to or from clearing organization. (1) The covered counterparty has the covered swap entity; and U.S. Government-sponsored refused or otherwise failed to provide, (2) The covered swap entity has: enterprise means an entity established or to accept, the required initial margin (i) Made the necessary efforts to or chartered by the U.S. government to to, or from, the covered swap entity; and collect or to pay the required variation serve public purposes specified by (2) The covered swap entity has: margin, including the timely initiation federal statute but whose debt (i) Made the necessary efforts to and continued pursuit of formal dispute obligations are not explicitly guaranteed collect or to post the required initial resolution mechanisms, or has by the full faith and credit of the U.S. margin, including the timely initiation otherwise demonstrated upon request to government. and continued pursuit of formal dispute the satisfaction of the Commission that Variation margin means a payment by resolution mechanisms, including it has made appropriate efforts to collect a party to its counterparty to meet an pursuant to § 23.504(b)(4), if applicable, or to pay the required variation margin; obligation under one or more swaps or has otherwise demonstrated upon or between the parties as a result of a request to the satisfaction of the (ii) Commenced termination of the change in value of such obligations Commission that it has made uncleared swap with the counterparty since the trade was executed or the appropriate efforts to collect or to post promptly following the applicable cure previous time such payment was made. the required initial margin; or period and notification requirements.

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§ 23.154 Calculation of initial margin. in the covered swap entity’s assessment risk, as appropriate. For material (a) Means of calculation. (1) Each of initial margin requirements; or exposures in significant currencies and business day each covered swap entity (C) Making any material change to markets, modeling techniques shall shall calculate an initial margin amount modeling assumptions used by the capture spread and basis risk and shall to be collected from each covered initial margin model. incorporate a sufficient number of counterparty using: (iv) The Commission may rescind its segments of the yield curve to capture (i) A risk-based model that meets the approval of the use of any initial margin differences in volatility and imperfect requirements of paragraph (b) of this model, in whole or in part, or may correlation of rates along the yield section; or impose additional conditions or curve. (ii) The table-based method set forth requirements if the Commission (iv) In the case of an uncleared cross- in paragraph (c) of this section. determines, in its sole discretion, that currency swap, the model need not (2) Each business day each covered the model no longer complies with this recognize any risks or risk factors swap entity shall calculate an initial section. associated with the fixed, physically- margin amount to be posted with each (2) Applicability to multiple swaps. settled foreign exchange transactions covered counterparty that is a financial To the extent that more than one associated with the exchange of end user using: uncleared swap is executed pursuant to principal embedded in the cross- (i) A risk-based model that meets the an eligible master netting agreement currency swap. The model shall requirements of paragraph (b) of this between a covered swap entity and a recognize all material risks and risk section; or covered counterparty, a covered swap factors associated with all other (ii) The table-based method set forth entity may use its initial margin model payments and cash flows that occur in paragraph (c) of this section. to calculate and comply with the initial during the life of the uncleared cross- (3) Each covered swap entity may margin requirements on an aggregate currency swap. reduce the amounts calculated pursuant basis with respect to all uncleared (v) The model may calculate initial to paragraphs (a)(1) and (2) of this swaps governed by such agreement. If margin for an uncleared swap or netting section by the initial margin threshold the agreement covers uncleared swaps set of uncleared swaps covered by an amount provided that the reduction entered into before the applicable eligible master netting agreement. It may does not include any portion of the compliance date, those swaps must be reflect offsetting exposures, initial margin threshold amount already included in the aggregate in the initial diversification, and other hedging applied by the covered swap entity or margin model for the purposes of benefits for uncleared swaps that are its affiliates in connection with other calculating and complying with the governed by the same eligible master uncleared swaps or uncleared security- initial margin requirements. netting agreement by incorporating based swaps with the counterparty or its (3) Elements of the model. (i) The empirical correlations within the affiliates. model shall calculate an amount of following broad risk categories, (4) The amounts calculated pursuant initial margin that is equal to the provided the covered swap entity to paragraph (a)(3) of this section shall potential future exposure of the validates and demonstrates the not be less than zero. uncleared swap or netting set of reasonableness of its process for (5) A covered swap entity shall not be uncleared swaps covered by an eligible modeling and measuring hedging required to collect or to post an amount master netting agreement. Potential benefits: agriculture, credit, energy, below the minimum transfer amount. future exposure is an estimate of the equity, foreign exchange/interest rate, (6) For risk management purposes, one-tailed 99 percent confidence metals, and other. Empirical each business day each covered swap interval for an increase in the value of correlations under an eligible master entity shall calculate a hypothetical the uncleared swap or netting set of netting agreement may be recognized by initial margin requirement for each uncleared swaps due to an the model within each broad risk swap for which the counterparty is a instantaneous price shock that is category, but not across broad risk non-financial end user that has material equivalent to a movement in all material categories. swaps exposure to the covered swap underlying risk factors, including (vi) If the model does not explicitly entity as if the counterparty were a prices, rates, and spreads, over a reflect offsetting exposures, covered counterparty and compare that holding period equal to the shorter of diversification, and hedging benefits amount to any initial margin required ten business days or the maturity of the between subsets of uncleared swaps pursuant to the margin documentation. swap. within a broad risk category, the (b) Risk-based Models—(1) (ii) All data used to calibrate the covered swap entity shall calculate an Commission approval. (i) A covered model shall be based on an equally amount of initial margin separately for swap entity shall obtain the written weighted historical observation period each subset of uncleared swaps for approval of the Commission to use a of at least one year and not more than which offsetting exposures, model to calculate the initial margin five years and must incorporate a period diversification, and other hedging required in this part. of significant financial stress for each benefits are explicitly recognized by the (ii) A covered swap entity shall broad asset class that is appropriate to model. The sum of the initial margin demonstrate that the model satisfies all the uncleared swaps to which the initial amounts calculated for each subset of of the requirements of this section on an margin model is applied. uncleared swaps within a broad risk ongoing basis. (iii) The model shall use risk factors category shall be used to determine the (iii) A covered swap entity shall sufficient to measure all material price aggregate initial margin due from the notify the Commission in writing 60 risks inherent in the transactions for counterparty for the portfolio of days prior to: which initial margin is being calculated. uncleared swaps within the broad risk (A) Extending the use of an initial The risk categories shall include, but category. margin model that has been approved to should not be limited to, foreign (vii) The sum of the initial margins an additional product type; exchange or interest rate risk, credit calculated for each broad risk category (B) Making any change to any initial risk, equity risk, agricultural commodity shall be used to determine the aggregate margin model that has been approved risk, energy commodity risk, metal initial margin due from the that would result in a material change commodity risk, and other commodity counterparty.

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(viii) The model shall not permit the technologies, and enhance the model as management and valuation of uncleared calculation of any initial margin amount appropriate to ensure that it continues swaps to which it applies, the control, to be offset by, or otherwise take into to meet the requirements for approval in oversight, and validation of the model, account, any initial margin that may be this section. any review processes and the results of owed or otherwise payable by the (5) Control, oversight, and validation such processes. covered swap entity to the counterparty. mechanisms. (i) The covered swap (7) Escalation procedures. The (ix) The model shall include all entity shall maintain a risk management covered swap entity must adequately material risks arising from the nonlinear unit in accordance with § 23.600(c)(4)(i) document authorization procedures, price characteristics of option positions that is independent from the business including escalation procedures that or positions with embedded optionality trading unit (as defined in § 23.600). require review and approval of any and the sensitivity of the market value (ii) The covered swap entity’s risk change to the initial margin calculation of the positions to changes in the control unit shall validate its model under the model, demonstrable analysis volatility of the underlying rates, prices, prior to implementation and on an that any basis for any such change is or other material risk factors. ongoing basis. The covered swap consistent with the requirements of this (x) The covered swap entity shall not entity’s validation process shall be section, and independent review of such omit any risk factor from the calculation independent of the development, demonstrable analysis and approval. of its initial margin that the covered implementation, and operation of the (c) Table-based method. If a model swap entity uses in its model unless it model, or the validation process shall be meeting the standards set forth in has first demonstrated to the satisfaction subject to an independent review of its paragraph (b) of this section is not used, of the Commission that such omission is adequacy and effectiveness. The initial margin shall be calculated in appropriate. validation process shall include: accordance with this paragraph. (xi) The covered swap entity shall not (A) An evaluation of the conceptual (1) Standardized initial margin incorporate any proxy or approximation soundness of (including developmental schedule. used to capture the risks of the covered evidence supporting) the model; swap entity’s actual swaps unless it has (B) An ongoing monitoring process Initial margin first demonstrated to the satisfaction of that includes verification of processes requirement Asset class (% of notional the Commission that such proxy or and benchmarking by comparing the exposure) approximation is appropriate. covered swap entity’s model outputs (xii) The covered swap entity shall (estimation of initial margin) with Credit: 0–2 year duration ...... 2 have a rigorous and well-defined relevant alternative internal and Credit: 2–5 year duration ...... 5 process for re-estimating, re-evaluating, external data sources or estimation Credit: 5+ year duration ...... 10 and updating its internal models to techniques including benchmarking Commodity ...... 15 ensure continued applicability and against observable margin standards to Equity ...... 15 Foreign Exchange/Currency 6 relevance. ensure that the initial margin is not less Cross Currency Swaps: 0–2 (xiii) The covered swap entity shall than what a derivatives clearing year duration ...... 1 review and, as necessary, revise the data organization would require for similar Cross Currency Swaps: 2–5 used to calibrate the model at least cleared transactions; and year duration ...... 2 monthly, and more frequently as market (C) An outcomes analysis process that Cross currency Swaps: 5+ conditions warrant, ensuring that the includes back testing the model. year duration ...... 4 data incorporate a period of significant (iii) If the validation process reveals Interest Rate: 0–2 year dura- financial stress appropriate to the any material problems with the model, tion ...... 1 uncleared swaps to which the model is the covered swap entity shall notify the Interest Rate: 2–5 year dura- Commission of the problems, describe tion ...... 2 applied. Interest Rate: 5+ year dura- (xiv) The level of sophistication of the to the Commission any remedial actions tion ...... 4 initial margin model shall be being taken, and adjust the model to Other ...... 15 commensurate with the complexity of insure an appropriately conservative the swaps to which it is applied. In amount of required initial margin is (2) Net to gross ratio adjustment. (i) calculating an initial margin amount, being calculated. For multiple uncleared swaps subject to the model may make use of any of the (iv) In accordance with § 23.600(e)(2), an eligible master netting agreement, the generally accepted approaches for the covered swap entity shall have an initial margin amount under the modeling the risk of a single instrument internal audit function independent of standardized table shall be computed or portfolio of instruments. the business trading unit and the risk according to this paragraph. (xv) The Commission may in its sole management unit that at least annually (ii) Initial Margin = 0.4 × Gross Initial discretion require a covered swap entity assesses the effectiveness of the controls Margin + 0.6 × Net-to-Gross Ratio × using a model to collect a greater supporting the model measurement Gross Initial Margin, where amount of initial margin than that systems, including the activities of the (A) Gross Initial Margin = the sum of determined by the covered swap entity’s business trading units and risk control the product of each uncleared swap’s model if the Commission determines unit, compliance with policies and effective notional amount and the gross that the additional collateral is procedures, and calculation of the initial margin requirement for all appropriate due to the nature, structure, covered swap entity’s initial margin uncleared swaps subject to the eligible or characteristics of the covered swap requirements under this part. At least master netting agreement; entity’s transactions or is commensurate annually, the internal audit function (B) Net-to-Gross Ratio = the ratio of with the risks associated with the shall report its findings to the covered the net current replacement cost to the transaction. swap entity’s governing body, senior gross current replacement cost; (4) Periodic review. A covered swap management, and chief compliance (C) Gross Current Replacement cost = entity shall periodically, but no less officer. the sum of the replacement cost for each frequently than annually, review its (6) Documentation. The covered swap uncleared swap subject to the eligible model in light of developments in entity shall adequately document all master netting agreement for which the financial markets and modeling material aspects of its model, including cost is positive; and

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(D) Net Current Replacement Cost = (i) U.S. dollars; market intermediary, a company that the total replacement cost for all (ii) A major currency; would be any of the foregoing if it were uncleared swaps subject to the eligible (iii) A currency in which payment organized under the laws of the United master netting agreement. obligations under the swap are required States or any State, or an affiliate of any to be settled; of the foregoing institutions, or § 23.155 Calculation of variation margin. (iv) A security that is issued by, or (iii) A U.S. government-sponsored (a) Means of calculation. (1) Each unconditionally guaranteed as to the enterprise after the termination of business day each covered swap entity timely payment of principal and interest capital support or another form of direct shall calculate variation margin for itself by, the U.S. Department of Treasury; financial assistance received from the and for each counterparty that is a swap (v) A security that is issued by, or U.S. government that enables the entity or a financial end user using a unconditionally guaranteed as to the repayments of the government- methodology and inputs that to the timely payment of principal and interest sponsored enterprise’s eligible securities maximum extent practicable rely on by, a U.S. government agency (other unless: recently-executed transactions, than the U.S. Department of Treasury) (A) The security meets the valuations provided by independent whose obligations are fully guaranteed requirements of paragraph (a)(1)(iv) of third parties, or other objective criteria. by the full faith and credit of the U.S. this section; (2) Each covered swap entity shall government; (B) The security meets the have in place alternative methods for (vi) A publicly traded debt security requirements of paragraph (a)(1)(vii) of determining the value of an uncleared issued by, or an asset-backed security this section; or swap in the event of the unavailability fully guaranteed as to the timely (C) The security meets the or other failure of any input required to payment of principal and interest by, a requirements of paragraph (a)(1)(viii) of value a swap. U.S. government-sponsored enterprise this section. (3) For risk management purposes, that is operating with capital support or (3) Haircuts. (i) Each covered swap each business day each covered swap another form of direct financial entity shall apply haircuts to any asset entity shall calculate a hypothetical assistance received from the U.S. posted or received as initial margin variation margin requirement for each government that enables the repayments under this section that reflect the credit swap for which the counterparty is a of the government-sponsored and liquidity characteristics of the asset. non-financial end user that has material enterprise’s eligible securities; or (ii) At a minimum, each covered swap swaps exposure to the covered (vii) A security that is issued by, or entity shall apply haircuts to any asset counterparty as if the counterparty were fully guaranteed as to the payment of posted or received as initial margin a covered swap entity and compare that principal and interest by, the European under this section in accordance with amount to any variation margin required Central Bank or a sovereign entity that the following table: pursuant to the margin documentation. is assigned no higher than a 20 percent (b) Control mechanisms. (1) Each risk weight under the capital rules STANDARDIZED HAIRCUT SCHEDULE covered swap entity shall create and applicable to swap dealers subject to maintain documentation setting forth regulation by a prudential regulator; Cash in same currency as swap ob- the variation methodology with (viii) A security that is issued by, or ligation ...... 0.0 sufficient specificity to allow the fully guaranteed as to the payment of Eligible government and related debt counterparty, the Commission, and any principal and interest by, the Bank for (e.g., central bank, multilateral de- applicable prudential regulator to International Settlements, the velopment bank, GSE securities calculate a reasonable approximation of International Monetary Fund, or a identified in paragraph (a)(1)(iv) of multilateral development bank; this section): Residual maturity the margin requirement independently. less than one-year ...... 0.5 (2) Each covered swap entity shall (ix) Other publicly-traded debt that Eligible government and related debt evaluate the reliability of its data has been deemed acceptable as initial (e.g., central bank, multilateral de- sources at least annually, and make margin by a prudential regulator; or velopment bank, GSE securities adjustments, as appropriate. (x) A publicly traded common equity identified in paragraph (a)(1)(iv) of (3) The Commission at any time may security that is included in: this section): Residual maturity require a covered swap entity to provide (A) The Standard & Poor’s Composite between one and five years ...... 2.0 further data or analysis concerning the 1500 Index or any other similar index of Eligible government and related debt methodology or a data source, liquid and readily marketable equity (e.g., central bank, multilateral de- including: securities as determined by the velopment bank, GSE securities identified in paragraph (a)(1)(iv) of (i) An explanation of the manner in Commission; or (B) An index that a covered swap this section): Residual maturity which the methodology meets the greater than five years ...... 4.0 requirements of this section; entity’s supervisor in a foreign Eligible corporate debt (including eli- (ii) A description of the mechanics of jurisdiction recognizes for purposes of gible GSE debt securities not the methodology; including publicly traded common identified in paragraph (a)(1)(iv) of (iii) The theoretical basis of the equity as initial margin under this section): Residual maturity methodology; applicable regulatory policy, if held in less than one-year ...... 1.0 (iv) The empirical support for the that foreign jurisdiction; or Eligible corporate debt (including eli- methodology; and (xi) Gold. gible GSE debt securities not (v) The empirical support for the (2) Prohibition of certain assets. A identified in paragraph (a)(1)(iv) of this section): Residual maturity assessment of the data sources. covered swap entity may not collect or post as initial margin any asset that is between one and five years ...... 4.0 § 23.156 Forms of margin. Eligible corporate debt (including eli- a security issued by: gible GSE debt securities not (a) Initial margin—(1) Eligible (i) The party providing such asset or identified in paragraph (a)(1)(iv) of collateral. A covered swap entity shall an affiliate of that party, this section): Residual maturity collect and post as initial margin for (ii) A bank holding company, a greater than five years ...... 8.0 trades with a covered counterparty only savings and loan holding company, a Equities included in S&P 500 or re- the following assets: foreign bank, a depository institution, a lated index ...... 15.0

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STANDARDIZED HAIRCUT SCHEDULE— has made appropriate efforts to collect provide the covered swap entity with Continued the variation margin; or the contractual right and obligation to (B) Has commenced termination of exchange initial margin and variation Equities included in S&P 1500 Com- the swap or security-based swap with margin in such amounts, in such form, posite or related index but not the counterparty. and under such circumstances as are S&P 500 or related index ...... 25.0 required by §§ 23.150 through 23.159. Gold ...... 15.0 § 23.157 Custodial arrangements. For uncleared swaps between a covered Additional (additive) haircut on asset (a) Initial margin posted by covered in which the currency of the swap swap entity and a non-financial entity, obligation differs from that of the swap entities. Each covered swap entity the documentation shall specify collateral asset ...... 8.0 that posts initial margin with respect to whether initial and/or variation margin an uncleared swap shall require that all will be exchanged and, if so, the (iii) The value of initial margin funds or other property that the covered documentation shall comply with collateral that is calculated according to swap entity provides as initial margin paragraph (b) of this section. the schedule in paragraph (a)(3)(ii) of be held by one or more custodians that (b) Contents of the documentation. this section will be computed as are not affiliates of the covered swap The margin documentation shall specify follows: The value of initial margin entity or the counterparty. the following: collateral for any collateral asset class (b) Initial margin collected by covered (1) The methodology and data sources will be computed as the product of the swap entities. Each covered swap entity to be used to value uncleared swaps and total value of collateral in any asset that collects initial margin required by collateral and to calculate initial margin class and one minus the applicable § 23.152 with respect to an uncleared for uncleared swaps entered into haircut expressed in percentage terms. swap shall require that such initial between the covered swap entity and The total value of all initial margin margin be held at one or more the counterparty; collateral is calculated as the sum of the custodians that are not affiliates of the (2) The methodology and data sources value of each type of collateral asset. covered swap entity or the counterparty. to be used to value positions and to (4) Monitoring Obligation. A covered (c) Custodial agreement. Each covered calculate variation margin for uncleared swap entity shall monitor the market swap entity shall enter into an swaps entered into between the covered value and eligibility of all collateral agreement with each custodian that swap entity participant and the collected and held to satisfy initial holds funds pursuant to paragraphs (a) counterparty; margin required by this part. To the or (b) of this section that: (3) The procedures by which any extent that the market value of such (1) Prohibits the custodian from disputes concerning the valuation of collateral has declined, the covered rehypothecating, repledging, reusing, or uncleared swaps, or the valuation of swap entity shall promptly collect such otherwise transferring (through assets posted as initial margin or paid as additional eligible collateral as is securities lending, repurchase variation margin may be resolved; necessary to bring itself into compliance agreement, reverse repurchase (4) Any thresholds below which with the margin requirements of this agreement or other means) the funds or initial margin need not be posted by the part. To the extent that the collateral is other property held by the custodian; covered swap entity and/or the no longer eligible, the covered swap (2) Notwithstanding paragraph (c)(1) counterparty; and entity shall promptly obtain sufficient of this section, with respect to collateral (5) Any thresholds below which eligible replacement collateral to posted or collected pursuant to § 23.152, variation margin need not be paid by the comply with this part. requires the posting party, when it covered swap entity and/or the (5) Excess initial margin. A covered substitutes or directs the reinvestment counterparty. swap entity may collect initial margin of posted collateral held by the § 23.159 Compliance dates. that is not required pursuant to this part custodian: in any form of collateral. (i) To substitute only funds or other (a) Covered swap entities must (b) Variation margin—(1) Eligible property that are in a form that meets comply with the minimum margin assets. A covered swap entity shall pay the requirements of § 23.156 and in an requirements for uncleared swaps on or and collect as variation margin to or amount that meets the requirements of before the following dates for uncleared from a covered counterparty only cash § 23.152, subject to applicable haircuts; swaps entered into on or after the in the form of: and following dates: (i) U.S. dollars; or (ii) To reinvest funds only in assets (1) December 1, 2015 for the (ii) A currency in which payment that are in a form that meets the requirements in § 23.153 for variation obligations under the swap are required requirements of § 23.156 and in an margin. to be settled. amount that meets the requirements of (2) December 1, 2015 for the (2) Collection obligation. A covered § 23.152, subject to applicable haircuts; requirements in § 23.152 for initial swap entity shall not be deemed to have (3) Is legal, valid, binding, and margin for any uncleared swaps where violated its obligation under this enforceable under the laws of all both the covered swap entity combined paragraph to collect variation margin if: relevant jurisdictions including in the with all its affiliates and its (i) The counterparty has refused or event of bankruptcy, insolvency, or a counterparty combined with all its otherwise failed to provide the variation similar proceeding. affiliates, have an average daily margin to the covered swap entity; and aggregate notional amount of uncleared (ii) The covered swap entity: § 23.158 Margin documentation. swaps, uncleared security-based swaps, (A) Has made the necessary efforts to (a) General requirement. Each covered foreign exchange forwards, and foreign collect the variation margin, including swap entity shall execute exchange swaps in June, July, and the timely initiation and continued documentation with each counterparty August 2015 that exceeds $4 trillion, pursuit of formal dispute resolution that complies with the requirements of where such amounts are calculated only mechanisms, including § 23.504(b), if § 23.504 and that complies with this for business days. applicable, or has otherwise section. For uncleared swaps between a (3) December 1, 2016 for the demonstrated upon request to the covered swap entity and a covered requirements in § 23.152 for initial satisfaction of the Commission that it counterparty, the documentation shall margin for any uncleared swaps where

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both the covered swap entity combined segregation is mandatory pursuant to Appendix 2—Statement of Chairman with all its affiliates and its § 23.157; Timothy G. Massad counterparty combined with all its * * * * * I support this proposed rule on affiliates, have an average daily (d) Prior to confirming the terms of margin requirements for uncleared aggregate notional amount of uncleared any such swap, the swap dealer or major swaps. swaps, uncleared security-based swaps, swap participant shall obtain from the A key mandate of the Dodd-Frank Act foreign exchange forwards, and foreign counterparty confirmation of receipt by was central clearing of swaps. This is a exchange swaps in June, July and the person specified in paragraph (c) of significant tool to monitor and mitigate August 2016 that exceeds $3 trillion, this section of the notification specified risk, and we have already succeeded in where such amounts are calculated only in paragraph (a) of this section, and an increasing the overall percentage of the for business days. election, if applicable, to require such market that is cleared from an estimated (4) December 1, 2017 for the segregation or not. The swap dealer or 17% in 2007 to 60% last month, when requirements in § 23.152 for initial major swap participant shall maintain measured by notional amount. margin for any uncleared swaps where such confirmation and such election as But cleared swaps are only part of the both the covered swap entity combined business records pursuant to § 1.31 of market. Uncleared, bilateral swap with all its affiliates and its this chapter. transactions will continue to be an counterparty combined with all its * * * * * important part of the derivatives market. affiliates have an average daily aggregate This is so for a variety of reasons. notional amount of uncleared swaps, (f) A counterparty’s election, if applicable, to require segregation of Sometimes, commercial risks cannot be uncleared security-based swaps, foreign hedged sufficiently through clearable exchange forwards, and foreign Initial Margin or not to require such segregation, may be changed at the swap contracts. Therefore market exchange swaps in June, July and participants must craft more tailored August 2017 that exceeds $2 trillion, discretion of the counterparty upon written notice delivered to the swap contracts that cannot be cleared. In where such amounts are calculated only addition, certain products may lack for business days. dealer or major swap participant, which changed election shall be applicable to sufficient liquidity to be centrally risk- (5) December 1, 2018 for the all swaps entered into between the managed and cleared. This may be true requirements in § 23.152 for initial parties after such delivery. even for products that have been in margin for any uncleared swaps where existence for some time. And there both the covered swap entity combined PART 140—ORGANIZATION, will—and always should be— with all its affiliates and its FUNCTIONS, AND PROCEDURES OF innovation in the market, which will counterparty combined with all its THE COMMISSION lead to new products. affiliates have an average daily aggregate That is why margin for uncleared notional amount of uncleared swaps, ■ 4. The authority citation for part 140 swaps is important. It is a means to uncleared security-based swaps, foreign continues to read as follows: mitigate the risk of default and therefore exchange forwards, and foreign Authority: 7 U.S.C. 2(a)(12), 12a, 13(c), the potential risk to the financial system exchange swaps in June, July and 13(d), 13(e), and 16(b). as a whole. To appreciate the August 2018 that exceeds $1 trillion, importance of the rule being proposed, where such amounts are calculated only ■ 5. In § 140.93, add paragraph (a)(6) to we need only recall how Treasury and for business days. read as follows: the Federal Reserve had to commit $182 (6) December 1, 2019 for the § 140.93 Delegation of authority to the billion to AIG, because its uncleared requirements in § 23.152 for initial Director of the Division of Swap Dealer and swap activities threatened to bring margin for any other covered swap Intermediary Oversight. down our financial system. entity with respect to uncleared swaps (a) * * * The proposed rule requires swap entered into with any other dealers and major swap participants to (6) All functions reserved to the counterparty. post and collect margin in their swaps Commission in §§ 23.150 through with one another. They must also do so (b) Once a covered swap entity and its 23.159 of this chapter. counterparty must comply with the in their swaps with financial entities, if margin requirements for uncleared * * * * * the level of activity is above certain swaps based on the compliance dates in Issued in Washington, DC, on September thresholds. The proposal does not paragraph (a) of this section, the covered 23, 2014, by the Commission. require commercial end-users to post or swap entity and its counterparty shall Christopher J. Kirkpatrick, collect margin, nor does it require any remain subject to the requirements of Secretary of the Commission. swap dealer or major swap participant this subpart. to collect margin from or post margin to Note: The following appendices will not commercial end-users. This is an §§ 23.160–23.199 [Reserved] appear in the Code of Federal Regulations. important point. ■ Today’s proposal on margin also 3. In § 23.701 revise paragraphs (a)(1), Appendices to Margin Requirements for reflects the benefit of substantial (d), and (f) to read as follows: Uncleared Swaps for Swap Dealers and collaboration between our staff and our Major Swap Participants—Commission § 23.701 Notification of right to colleagues at the Federal Reserve, the Voting Summary, Chairman’s segregation. Office of the Comptroller of the Statement, and Commissioner’s (a) * * * Currency, and the Federal Deposit Statement (1) Notify each counterparty to such Insurance Corporation, as well as transaction that the counterparty has the Appendix 1—Commission Voting significant public comment. The Dodd- right to require that any Initial Margin Summary Frank Act directs each of the prudential the counterparty provides in connection On this matter, Chairman Massad and regulators to propose rules on margin with such transaction be segregated in Commissioners Wetjen, Bowen, and for the entities for which it is the accordance with §§ 23.702 and 23.703 Giancarlo voted in the affirmative. No primary regulator, whereas the CFTC is except in those circumstances where Commissioner voted in the negative. directed to propose a rule for other

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entities engaging in uncleared swap requirements for swap dealers and major border issues. In particular, I join transactions. The Dodd-Frank Act also swap participants, which are closely linked Commissioner Wetjen in welcoming directed us to harmonize our rules as to the uncleared margin rules. thoughtful comment and analysis on the much as possible. Today’s proposed Uncleared over-the-counter swaps (OTC) potential competitive impacts associated and derivatives are vital to the U.S. economy. with each of the different approaches rule is very similar to the proposal of Used properly, they enable American identified in the advance notice of proposed the prudential regulators that was companies and the banks they borrow from rulemaking. I encourage commentators to published recently. I want to again to manage changing commodity and energy quantify, if practical, and be specific about thank our staff, as well as the staffs of prices, fluctuating currency and interest particular provisions or concerns. the prudential regulators, for working rates, and credit default exposure. They Furthermore, I think this rulemaking together so well to accomplish that task. allow our state and local governments to should be a template for things to come. I We have also sought to harmonize our manage their obligations and our pension urge the Commission to follow the Securities proposal with rules being developed in funds to support healthy retirements. and Exchange Commission’s (SEC) lead and Europe and Asia. Our proposed rule is Uncleared swaps serve a key role in replace its non-binding guidance with a largely consistent with the standards American business planning and risk comprehensive set of rules, supported by a management that cannot be filled by cleared rigorous cost-benefit analysis, delineating proposed by Basel Committee on derivatives. They do so by allowing when activities outside the United States will Banking Supervision and the businesses to avoid basis risk and obtain have a direct and significant connection with International Organization of Securities hedge accounting treatment for more activities in, or effect on, commerce in the Commissions, and we have been in complex, non-standardized exposures. While United States. Good regulation requires touch with overseas regulators as we much of the swaps and OTC derivatives nothing less. developed our proposal. markets will eventually be cleared—a Notwithstanding my support for the The importance of international transition I have long supported—uncleared issuance of these proposed rules and the harmonization cannot be understated. It swaps will remain an important tool for advance notice of proposed rulemaking on is particularly important to reach customized risk management by businesses, cross-border issues in order to solicit comment, I have a number of substantive harmonization in the area of margin for governments, asset managers and other institutions whose operations are essential to concerns which I will now address. uncleared swaps, because this is a new American economic growth. requirement and we do not want to Ten-Day Margin Requirement create the potential for regulatory Advance Notice of Proposed Rulemaking: Today’s proposal requires collateral arbitrage in the market by creating Cross-Border coverage on uncleared swaps equal to a ten- unnecessary differences. Margin for I support the Commission’s decision to day liquidation period. This ten-day uncleared swaps goes hand in hand issue an advance notice of proposed calculation comports with rules adopted with the global mandates to clear swaps. rulemaking to determine how the uncleared recently by the U.S. prudential bank margin rule should apply extraterritorially. I regulators. Yet, it still must be asked: Is ten Imposing margin on uncleared swaps days the right calculation? Why not nine will level the playing field between have long advocated that the Commission take a holistic, global approach to the cross- days; why not eleven? Should it be the same cleared and uncleared swaps and border application of its rules. This approach ten days for uncleared credit default swaps remove any incentive not to clear swaps should prioritize the critical need for as it is for uncleared interest rate swaps and that can be cleared. international harmony and certainty for for all other swaps products? Surely, all non- Proposing this rule is an important American businesses and other market cleared swap products do not have the same step in our effort to finish the job of participants. It is undeniable that the lack of liquidity characteristics or risk profiles. I implementing the Dodd-Frank Act and such certainty in the Commission’s cross- encourage commenters to provide their input will help us achieve the full benefit of border framework is causing fragmentation of on these questions. the new regulatory framework, while at what were once global markets, increasing SEC Chair Mary Jo White recently stated: systemic risk rather than diminishing it. I ‘‘Our regulatory changes must be informed by the same time protecting the interests clear-eyed, unbiased, and fact-based of—and minimizing the burdens on— therefore applaud the Commission’s decision to seek public comment on the most optimal assessments of the likely impacts—positive commercial end-users who depend on cross-border framework with respect to and negative—on market quality for investors the derivatives markets to hedge normal uncleared margin. and issuers.’’ 2 Chair White’s standard of business risks. In light of the recent decision from the U.S. assessment must surely apply to the We recognize that more stringent District Court for the District of Columbia proposed margin rule on uncleared swaps. margin requirements impose costs on holding that the Commission’s cross-border Where is the clear-eyed assessment of the market participants, and therefore the guidance is non-binding and that the ten-day margin requirement? Where is the proposal includes a detailed cost-benefit Commission will have to justify the cross- cost benefit analysis? What are the intended analysis. I believe the proposed rule border application of its rules each time it consequences? What will be the unintended brings an enforcement action,1 it is important ones? Will American swaps end users wind balances the inherent trade-off between up paying for the added margin costs even mitigating systemic risk and minimizing that the Commission provide swaps market participants with certainty on how the though they are meant to be exempt? I would costs on individual participants. I look uncleared margin rule will apply be interested to hear from commentators on forward to having public feedback on extraterritorially. this issue. that analysis, as well as on the proposal I believe that the advance notice of I am troubled by recent press reports of as a whole. proposed rulemaking for the cross-border remarks by unnamed Fed officials that the application of the uncleared margin rules coverage period may be intentionally Appendix 3—Statement of demonstrates a pragmatism and flexibility ‘‘punitive’’ in order to move the majority of Commissioner J. Christopher Giancarlo that belies the oft repeated notion that CFTC trades into a cleared environment.3 I would I support the issuance of the proposed rulemaking widely and woodenly rules for uncleared margin. I look forward to overreaches in its assertion of extraterritorial 2 Phillip Stafford, Sense of Urgency Underpins reviewing well-considered, responsive and jurisdiction. I commend it to our fellow Fresh Scrutiny of Markets, Financial Times, Sept. 16, 2014, available at http://www.ft.com/intl/cms/s/ informative comments from the public. regulators abroad as a portent of greater accord in global regulatory reform. 0/a373646a-344b-11e4-b81c-00144 Seeking further public comment on this feabdc0.html?siteedition=intl#axzz3DPM3AEzi. I look forward to reading and addressing proposal is necessary given the passage of 3 Mike Kentz, Derivatives: Fed backs off corporate time and the further deliberations with our well-considered comments on the cross- margin requirements, IFRAsia, Sept. 11, 2014, fellow regulators since the publishing of our available at http://www.ifrasia.com/derivatives-fed- 2011 proposal. For the same reasons, I urge 1 SIFMA v. CFTC, No. 13–cv–1916 slip op. at 72 backs-off-corporate-margin-requirements/ the Commission to re-propose capital (D.D.C. Sept. 16, 2014). 21162697.fullarticle.

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be interested to review any considered Threshold for Swaps Exposure to be a needlessly costly and burdensome analysis of the likely impact of the ten-day I am also pleased that our collaboration imposition on American commerce. Global liquidation period and whether or not it may with the BCBS/IOSCO 7 international regulators have already agreed on have a punitive effect on markets for working group has resulted in proposed rules international standards in the PFMIs to uncleared swaps products. that are largely harmonious with the 2013 determine how CCPs should be regulated and Any punitive or arbitrary squeeze on non- international framework. There is a particular supervised. It makes sense to leverage these cleared swaps will surely have and significant difference that troubles me, standards where we can. I encourage consequences—likely unintended—for however. The CFTC and the prudential comment on this issue. American businesses and their ability to regulators have set the threshold for material I would also be interested in commenters’ manage risk. With tens of millions of swaps exposure by financial end users at $3 views on how the Commission should Americans falling back on part-time work, it billion, while the 2013 international conduct its comparability analysis under this rulemaking. In the advance notice of is not in our national interest to deter U.S. framework sets the threshold at Ö8 billion proposed rulemaking, the Commission employers from safely hedging commercial (approximately $11 billion). This means that proposes to permit market participants to risk to free capital for new ventures that a whole middle-tier of American financial end users could be subject to margin comply with foreign rules, if such rules are create full-time jobs. It is time we move away comparable to the Commission’s margin from punishing U.S. capital markets toward requirements that will not be borne by similar firms overseas. It may well limit the requirements. Yet, a better approach may be rules designed to revive American prosperity. to compare a foreign regime to the I look forward to reviewing well-considered number of counterparties willing to enter into swaps with these important lenders to international standards put forward by the comments as to the appropriateness of a ten- American business. I am concerned that this BCBS/IOSCO international working group day liquidation period, as well as its could potentially reduce the utility of risk that included participation from over 20 estimated costs and benefits, particularly the reducing strategies for a class of middle-tier, regulatory authorities. Doing so would give impact on American economic growth. U.S. financial institutions that have already the Commission some comfort that foreign End Users been hit hard by new capital constraints, rules meet a necessary baseline, but could among other rules. avoid unnecessary and potentially As noted in the preamble, the Dodd-Frank In this time of dismal economic growth, it destabilizing disputes over comparability in Act requires the CFTC, the SEC, and the is hard to justify placing higher burdens on the future. I hope the insights of interested prudential regulators to establish comparable America’s medium-sized financial firms than parties will guide not only the Commission, initial and variation margin requirements for those their overseas competitors face. We but also the prudential regulators. I further 4 uncleared swaps. In 2011, however, the have not, in my opinion, sufficiently hope all concerned parties can use this Commission and the prudential regulators addressed in our cost benefit analysis the rulemaking as an opportunity to promote issued proposals that varied significantly in impact of this threshold difference on international comity at a time when it is several respects. In particular, the rules American firms and their customers. Where sorely needed. proposed by the prudential regulators in is the clear-eyed analysis of the impact of this Treatment of Small Financial Entities 2011 would have required non-financial end rule on the American economy? I hope that users to pay initial and variation margin to the Commission will not perpetuate this Another aspect of the proposed rules that banks, while the Commission’s rules divergence in the final rules without concerns me is the treatment of financial exempted these entities in accordance with carefully weighing the costs and benefits. I entities that qualify for the small bank Congressional intent.5 encourage commenters to address this point exemption from clearing and financial I am pleased that the prudential regulators and to supply any data and analysis that may cooperatives. Section 2(h)(7)(C)(ii) of the CEA have moved in the CFTC’s direction and will be illuminating. It is time our rules were directed the Commission to consider whether not require that non-financial end users pay designed less to punish and more to promote to exempt from the definition of ‘‘financial margin unless necessary to address the credit U.S. capital markets. Punishment as a entity’’ small banks, savings associations, risk posed by the counterparty and the risks singular regulatory policy is getting old and farm credit system institutions and credit of the swap.6 It is widely recognized that counterproductive. It is time our rules unions with total assets of $10 billion or less. non-financial end users, that generally use focused on returning America to work and In response, the Commission exempted these swaps to hedge their commercial risk, pose prosperity. small financial institutions from the less risk as counterparties than financial definition of financial entity for purposes of Increase Reliance on International clearing. It recognized that these institutions entities. It is my hope that upon finalization Collaboration serve a crucial function in the markets for of these rules, swap dealers and major swap hedging the commercial risk of non-financial participants will treat non-financial end Similarly, I want to echo Commissioner end users. Moreover, the Commission users consistently when it comes to margin, Wetjen’s call for comments on two areas acknowledged that the costs associated with no matter which set of rules apply. where the Commission can harness international collaboration. First, I welcome clearing, including margin and other fees and comments on whether the Commission expenses, may be prohibitive relative to the 4 CEA section 4s(e)(3)(D)(ii). should exclude from the scope of this small number of swaps these firms execute 5 Margin Requirements for Uncleared Swaps for rulemaking any derivative cleared by a over a given period of time.9 In addition, Swap Dealers and Major Swap Participants, 76 FR central counterparty (CCP) that is subject to using its Section 4(c) exemptive authority, 23732, 23736–37 (Apr. 28, 2011). regulation and supervision consistent with the Commission permits cooperative 6 The prudential regulator’s proposal contains the the CPSS–IOSCO Principles for Financial financial entities, including those with total following provision: ‘‘A covered swap entity is not assets exceeding $10 billion, to elect an required to collect initial margin with respect to any Market Infrastructures (PFMIs), an alternative non-cleared swap or non-cleared security-based on which the Commission seeks comment in exemption from mandatory clearing for swap with a counterparty that is neither a financial the preamble. It is reported that at least one swaps executed in connection with end user with material swaps exposure nor a swap U.S. financial firm is a member at 70 originating loans for their members, or that entity but shall collect initial margin at such times different CCPs around the globe. The present hedge or mitigate commercial risk related to and in such forms (if any) that the covered swap proposal, if finalized, could result in trades loans or swaps with their members.10 entity determines appropriately address the credit cleared on many of these CCPs being treated Despite the CFTC’s otherwise appropriate risk posed by the counterparty and the risks of such as if they are uncleared.8 This would seem treatment of these small banks and financial non-cleared swaps and non-cleared security-based cooperatives, the proposed margin rules treat swaps.’’ Margin and Capital Requirements for them as financial institutions required to post Covered Swap Entities, slip copy at 167, available 7 Basel Committee on Banking Supervision/ at http://www.federalreserve.gov/newsevents/press/ International Organization of Securities bcreg/bcreg20140903c1.pdf. This is somewhat Commissions. 9 End-User Exception to the Clearing Requirement different, but not inconsistent with the 8 Sam Fleming and Phillip Stafford, JPMorgan for Swaps, 77 FR 42560, 42578 (Jul. 19, 2012); 17 Commission’s proposal, which will allow the Tells Clearers to Build Bigger Buffers, Financial CFR 50.50(d). parties to exchange margin by agreement, or to Times, Sept. 11, 2014 available at http:// 10 Clearing Exemption for Certain Swaps Entered arrange other types of collateral agreements www.ft.com/intl/cms/s/0/48aa6b02-38f9-11e4-9526- into by Cooperatives, 78 FR 52286 (Aug. 22, 2013); consistent with their needs. 00144feabdc0.html#axzz3DPM3AEzi. 17 CFR 50.51.

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margin when their swaps exposure exceeds benefits within a corporate group.12 I as mentioned in the preamble and discussed the $3 billion threshold. This means that welcome comments addressing the impact at the open meeting, this may be an area in small banks and cooperative financial the proposed rules may have on the ability which the National Futures Association can institutions entitled to a clearing exemption of affiliated entities to efficiently manage provide assistance, and I am interested in will have to pay margin for their uncleared their risk.13 hearing its views on the issue. I also join activity with swap dealers or major swap Commissioner Wetjen’s call for discussion on Use of Approved Models to Calculate Capital participants when they have material swaps the circumstances in which the Commission exposure. It makes no sense to provide these Finally, I believe it is important to allow may permit market participants to continue entities with an exemption from clearing on the use of models when calculating initial using models while Commission staff is the one hand, only to turn around and margin. The proposed rules require the reviewing them. Given the CFTC’s limited require them to bear the potentially even Commission’s prior written approval before a resources, I believe we should make every greater costs associated with uncleared model can be used, even though the effort to leverage the expertise of other swaps. They deserve the full benefit of their Commission lacks adequate staff and qualified regulators before asking for more clearing exemption, which they may not get expertise for evaluating models. We tax dollars from Americans working two jobs if they have to post margin. I encourage recognize in the preamble that many covered just to stay afloat. comment on this issue, which I will weigh swap entities are affiliates of entities whose margin models are reviewed by one of the Conclusion carefully in the process of considering a final prudential regulators, the SEC, or a foreign rule. In spite of my stated concerns, I support regulator, and to avoid duplicative efforts we the issuance of these proposed rules in order Inter-Affiliate Exemption plan to coordinate with other regulators in an to solicit comment. They raise a number of The proposed rules may also diminish the effort to expedite our review. Rather than go important issues, particularly in their impact utility of the critically important, inter- through a special approval process, however, on the U.S. economy and job creation and the affiliate clearing exemption the Commission I believe we should accept models approved extent of their application across the globe. by our fellow regulators, so long as they adopted last year for certain eligible affiliate It is vital that we hear from interested parties contain the required elements. Alternatively, counterparties.11 The exemption was on how to get them right. I commend the premised on recognition that transactions Chairman and my fellow Commissioners for between affiliates do not present the same 12 Id. at 21751–54. their thoughtfulness and open-mindedness in risks as market-facing swaps, and generally 13 Separately, I also welcome comments on the arriving at the final proposals. I look forward to receiving and reviewing comments on the provide risk-mitigating, hedging, and netting sufficiency of the no-action relief issued by the Division of Clearing and Risk for swaps entered into issues discussed above and all aspects of the by treasury affiliates, and whether it may serve as rules. 11 Clearing Exemption for Swaps Between Certain a model for future rulemaking to provide greater Affiliated Entities, 78 FR 21750 (Apr. 11, 2013); 17 certainty in this area. See CFTC Letter No. 13–22 [FR Doc. 2014–22962 Filed 10–2–14; 8:45 am] CFR 50.52. (Jun. 4, 2013). BILLING CODE 6351–01–P

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Part III

Department of Defense

Office of the Secretary Manual for Courts-Martial; Proposed Amendments; Notice

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DEPARTMENT OF DEFENSE • Mail: Federal Docket Management the prisoner. The prisoner and the System Office, 4800 Mark Center Drive, prisoner’s counsel, if any, shall be Office of the Secretary East Tower, Suite 02G09, Alexandria, allowed to appear before the 7-day [Docket ID: DoD–2014–OS–0140] VA 22350–3100. reviewing officer and make a statement, Instructions: All submissions received if practicable. A representative of the Manual for Courts-Martial; Proposed must include the agency name and command may also appear before the Amendments docket number for this Federal Register reviewing officer to make a statement.’’ document. The general policy for (e) R.C.M. 305(i)(2)(A)(iv) is inserted AGENCY: Joint Service Committee on comments and other submissions from to read as follows: Military Justice (JSC), DoD. members of the public is to make these ‘‘(iv) Victim’s right to be reasonably ACTION: Notice of Proposed submissions available for public heard. A victim of an alleged offense Amendments to the Manual for Courts- viewing on the Internet at http:// committed by the prisoner has the right Martial, United States (2012 ed.) and www.regulations.gov as they are to reasonable, accurate, and timely Notice of Public Meeting. received without change, including any notice of the 7-day review; the right to personal identifiers or contact consult with the representative of the SUMMARY: The Department of Defense is proposing changes to the Manual for information. command and counsel for the Courts-Martial, United States (2012 ed.) FOR FURTHER INFORMATION CONTACT: Capt government, if any, present during the (MCM). The proposed changes concern Allison A. DeVito, Executive Secretary, review; and the right to be reasonably the rules of procedure and evidence and Joint Service Committee on Military heard during the review. The right to be the punitive articles applicable in trials Justice, 1500 West Perimeter Road, Suite heard under this rule includes the right by courts-martial. These proposed 1130, Joint Base Andrews, Maryland to be heard through counsel. Inability to changes have not been coordinated 20762, 240–612–4820, email- reasonably afford a victim these rights within the Department of Defense under [email protected]. shall not delay the proceedings.’’ (f) R.C.M. 305(i)(2)(C) is amended to DoD Directive 5500.01, ‘‘Preparing, SUPPLEMENTARY INFORMATION: The read as follows: Processing and Coordinating proposed amendments to the MCM are ‘‘(C) Action by 7-day reviewing officer. Legislation, Executive Orders, as follows: Upon completion of review, the Proclamations, Views Letters, and Annex reviewing officer shall approve Testimony,’’ June 15, 2007, and do not continued confinement or order constitute the official position of the Section 1. Part II of the Manual for immediate release. If the reviewing Department of Defense, the Military Courts-Martial, United States, is officer orders immediate release, a Departments, or any other Government amended as follows: victim of an alleged offense committed agency. (a) R.C.M. 201(f)(1) is amended to This notice also sets forth the date, insert the following: by the prisoner has the right to time and location for a public meeting reasonable, accurate, and timely notice [Note: R.C.M. 201(f)(1) and (f)(2) apply of the release, unless such notice may of the JSC to discuss the proposed to offenses committed on or after 24 changes. endanger the safety of any person.’’ June 2014. The previous version of (g) R.C.M. 305(n) is inserted to read as This notice is provided in accordance R.C.M. 201(f)(1) and (f)(2) is located in with DoD Directive 5500.17, ‘‘Role and follows: Appendix 29.] ‘‘(n) Notice to victim of escaped Responsibilities of the Joint Service (b) R.C.M. 201(f)(1)(D) is inserted to Committee (JSC) on Military Justice,’’ prisoner. A victim of an alleged offense read as follows: committed by the prisoner for which the May 3, 2003. ‘‘(D) Jurisdiction for Certain Sexual This notice is intended only to prisoner has been placed in pretrial Offenses. Only a general court-martial confinement has the right to reasonable, improve the internal management of the has jurisdiction to try offenses under Federal Government. It is not intended accurate, and timely notice of the escape Articles 120(a), 120(b), 120b(a), and of the prisoner, unless such notice may to create any right or benefit, 120b(b), UCMJ, forcible sodomy under substantive or procedural, enforceable at endanger the safety of any person.’’ Article 125, UCMJ, and attempts thereof (h) R.C.M. 404(e) is amended to read law by any party against the United under Article 80, UCMJ.’’ States, its agencies, its officers, or any as follows: (c) R.C.M. 201(f)(2)(D) is inserted to ‘‘(e) Unless otherwise prescribed by person. read as follows: The JSC also invites members of the the Secretary concerned, direct a ‘‘(D) Certain Offenses under Articles preliminary hearing under R.C.M. 405, public to suggest changes to the Manual 120, 120b, and 125. Notwithstanding for Courts-Martial and address specific and, if appropriate, forward the report of subsection (f)(2)(A), special courts- preliminary hearing with the charges to recommended changes with supporting martial do not have jurisdiction over rationale. a superior commander for disposition.’’ offenses under Articles 120(a), 120(b), (i) A new rule, R.C.M. 404A, is DATES: Comments on the proposed 120b(a), and 120b(b), forcible sodomy inserted to read as follows: changes must be received no later than under Article 125, UCMJ, and attempts ‘‘Rule 404A. Disclosure of matters December 2, 2014. A public meeting for thereof under Article 80, UCMJ. Such following direction of preliminary comments will be held on October 29, offenses shall not be referred to a special hearing 2014, at 10:00 a.m. in the United States court-martial.’’ Court of Appeals for the Armed Forces, (d) R.C.M. 305(i)(2)(A)(i) is amended (a) When a convening authority 450 E Street NW., Washington, DC to read as follows: directs a preliminary hearing under 20442–0001. ‘‘(i) Matters considered. The review R.C.M. 405, counsel for ADDRESSES: You may submit comments, under this subsection shall include a the government shall, subject to identified by docket number and title, review of the memorandum submitted R.C.M. 404A(b)-(d) below, within 5 days by any of the following methods: by the prisoner’s commander under of issuance of the Article 32 appointing • Federal eRulemaking Portal: http:// subsection (h)(2)(C) of this rule. order, provide to the defense the www.regulations.gov. Follow the Additional written matters may be following information or matters: instructions for submitting comments. considered, including any submitted by (1) Charge sheet;

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(2) Article 32 appointing order; probable cause to conclude that an The Secretary concerned may prescribe (3) Documents accompanying the offense or offenses have been committed additional limitations on the charge sheet on which the preferral and whether the accused committed it; appointment of preliminary hearing decision was based; to determine whether a court-martial officers. (4) Documents provided to the would have jurisdiction over the The preliminary hearing officer shall convening authority when deciding to offense(s) and the accused; to consider not depart from an impartial role and direct the preliminary hearing; the form of the charge(s); and to become an advocate for either side. The (5) Documents the counsel for the recommend the disposition that should preliminary hearing officer is government intends to present at the be made of the charge(s). Failure to disqualified to act later in the same case preliminary hearing; and comply with this rule shall have no in any other capacity. (6) Access to tangible objects counsel effect on the disposition of the charge(s) (2) Counsel to represent the United for the government intends to present at if the charge(s) is not referred to a States. A judge advocate, not the the preliminary hearing. general court-martial. accuser, shall serve as counsel to (b) Contraband. If items covered by (b) Earlier preliminary hearing. If a represent the United States, and shall subsection 404A(a) above are preliminary hearing of the subject present evidence on behalf of the contraband, the disclosure required matter of an offense has been conducted government relevant to the limited under this rule is a reasonable before the accused is charged with an scope and purpose of the preliminary opportunity to inspect said contraband offense, and the accused was present at hearing as set forth in subsection (a) of prior to the hearing. the preliminary hearing and afforded this rule. (c) Privilege. If items covered by the rights to counsel, cross-examination, (3) Defense counsel. subsection 404A(a) above are privileged, and presentation of evidence required (A) Detailed counsel. Except as classified or otherwise protected under by this rule, no further preliminary provided in subsection (d)(3)(B) of this Section V of Part III, no disclosure of hearing is required. rule, military counsel certified in those items is required under this rule. (c) Who may direct a preliminary accordance with Article 27(b) shall be However, counsel for the government hearing. Unless prohibited by detailed to represent the accused. may disclose privileged, classified or regulations of the Secretary concerned, (B) Individual military counsel. The otherwise protected information a preliminary hearing may be directed accused may request to be represented covered by subsection 404A(a) above if under this rule by any court-martial by individual military counsel. Such authorized by the holder of the convening authority. That authority may requests shall be acted on in accordance privilege, or in the case of Mil. R. Evid. also give procedural instructions not with R.C.M. 506(b). 505 or 506, if authorized by a competent inconsistent with these rules. (C) Civilian counsel. The accused may authority. (d) Personnel. be represented by civilian counsel at no (d) Protective order if privileged (1) Preliminary hearing officer. expense to the United States. Upon information is disclosed. If the Whenever practicable, the convening request, the accused is entitled to a government agrees to disclose to the authority directing a preliminary reasonable time to obtain civilian accused information to which the hearing under this rule shall detail an counsel and to have such counsel protections afforded by Section V of Part impartial judge advocate certified under present for the preliminary hearing. III may apply, the convening authority, Article 27(b), not the accuser, as a However, the preliminary hearing shall or other person designated by regulation preliminary hearing officer, who shall not be unduly delayed for this purpose. of the Secretary concerned, may enter conduct the preliminary hearing and Representation by civilian counsel shall an appropriate protective order, in make a report that addresses whether not limit the rights to military counsel writing, to guard against the there is probable cause to believe that an under subsections (d)(3)(A) and (B) of compromise of information disclosed to offense or offenses have been committed this rule. the accused. The terms of any such and that the accused committed the (4) Others. The convening authority protective order may include offense(s); whether a court-martial who directed the preliminary hearing prohibiting the disclosure of the would have jurisdiction over the may also, as a matter of discretion, information except as authorized by the offense(s) and the accused; the form of detail or request an appropriate authority issuing the protective order, as the charges(s); and a recommendation as authority to detail: well as those terms specified by Mil. R. to the disposition of the charge(s). (A) A reporter; and Evid. 505(g)(2)–(6) or 506(g)(2)(5).’’ When the appointment of a judge (B) An interpreter. (j) R.C.M. 405 is amended in its advocate as the preliminary hearing (e) Scope of preliminary hearing. entirety to read as follows: officer is not practicable, or in (1) The preliminary hearing officer exceptional circumstances in which the ‘‘Rule 405. Preliminary hearing shall limit the inquiry to the interest of justice warrants, the examination of evidence, including [Note: This rule applies to offenses convening authority directing the witnesses, necessary to: committed on or after 26 December preliminary hearing may detail an (A) Determine whether there is 2014. The previous version of R.C.M. impartial commissioned officer, who is probable cause to believe an offense or 405 is located in Appendix 30] not the accuser, as the preliminary offenses have been committed and (a) In general. Except as provided in hearing officer. If the preliminary whether the accused committed it; subsection (k) of this rule, no charge or hearing officer is not a judge advocate, (B) Determine whether a court-martial specification may be referred to a an impartial judge advocate certified would have jurisdiction over the general court-martial for trial until under Article 27(b) shall be available to offense(s) and the accused; completion of a preliminary hearing in provide legal advice to the preliminary (C) Consider whether the form of the substantial compliance with this rule. A hearing officer. charge(s) is proper; and preliminary hearing conducted under When practicable, the preliminary (D) Make a recommendation as to the this rule is not intended to serve as a hearing officer shall be equal or senior disposition of the charge(s). means of discovery and will be limited in grade to the military counsel detailed (2) If evidence adduced during the to an examination of those issues to represent the accused and the preliminary hearing indicates that the necessary to determine whether there is government at the preliminary hearing. accused committed any uncharged

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offense(s), the preliminary hearing (D) Except in the circumstances necessity or mission requirements is officer may examine evidence and hear described in R.C.M. 804(c)(2), be present final. The military witness’s witnesses relating to the subject matter throughout the taking of evidence; commanding officer determines the of such offense(s) and make the findings (E) Cross-examine witnesses on availability of the witness and, if there and recommendations enumerated in matters relevant to the limited scope is a dispute among the parties, subsection (e)(1) of this rule regarding and purpose of the preliminary hearing; determines whether the witness testifies such offense(s) without the accused first (F) Present matters in defense and in person, by videoteleconference, by having been charged with the offense. mitigation relevant to the limited scope telephone, or similar means of remote The accused’s rights under subsection and purpose of the preliminary hearing; testimony. (f)(2) of this rule, and, where it would and (2) Civilian Witnesses. not cause undue delay to the (G) Make a statement relevant to the (A) Defense counsel shall provide to proceedings, subsection (g) of this rule, limited scope and purpose of the counsel for the government the names of are the same with regard to both charged preliminary hearing. proposed civilian witnesses whom the and uncharged offenses. When (g) Production of Witnesses and Other accused requests that the government considering uncharged offenses Evidence. produce to testify at the preliminary (1) Military Witnesses. hearing, and the requested form of the identified during the preliminary (A) Prior to the preliminary hearing, hearing, the preliminary hearing officer testimony, in accordance with the defense counsel shall provide to counsel timeline established by the preliminary shall inform the accused of the general for the government the names of nature of each uncharged offense hearing officer. Counsel for the proposed military witnesses whom the government shall respond that either (1) considered, and otherwise afford the accused requests that the government accused the same opportunity for the government agrees that the witness produce to testify at the preliminary testimony is relevant, not cumulative, representation, cross examination, and hearing, and the requested form of the presentation afforded during the and necessary for the limited scope and testimony, in accordance with the purpose of the preliminary hearing and preliminary hearing of any charged timeline established by the preliminary offense. will seek to secure the witness’s hearing officer. Counsel for the testimony for the hearing; or (2) the (f) Rights of the accused. government shall respond that either (1) (1) Prior to any preliminary hearing government objects to the proposed the government agrees that the witness under this rule the accused shall have defense witness on the grounds that the testimony is relevant, not cumulative, the right to: testimony would be irrelevant, (A) Notice of any witnesses that the and necessary for the limited scope and cumulative, or unnecessary based on the government intends to call at the purpose of the preliminary hearing and limited scope and purpose of the preliminary hearing and copies of or will seek to secure the witness’s preliminary hearing. access to any written or recorded testimony for the hearing; or (2) the (B) If the government objects to the statements made by those witnesses that government objects to the proposed proposed defense witness, defense relate to the subject matter of any defense witness on the grounds that the counsel may request that the charged offense; testimony would be irrelevant, preliminary hearing officer determine (i) For purposes of this rule, a cumulative, or unnecessary based on the whether the witness is relevant, not ‘‘written statement’’ is one that is signed limited scope and purpose of the cumulative, and necessary based on the or otherwise adopted or approved by the preliminary hearing. limited scope and purpose of the witness that is within the possession or (B) If the government objects to the preliminary hearing. control of counsel for the government; proposed defense witness, defense (C) If the government does not object and counsel may request that the to the proposed civilian witness or the (ii) For purposes of this rule, a preliminary hearing officer determine preliminary hearing officer determines ‘‘recorded statement’’ is an oral whether the witness is relevant, not that the civilian witness testimony is statement made by the witness that is cumulative, and necessary based on the relevant, not cumulative, and necessary, recorded contemporaneously with the limited scope and purpose of the counsel for the government shall invite making of the oral statement and preliminary hearing. the civilian witness to provide contained in a digital or other recording (C) If the government does not object testimony and, if the individual agrees, or a transcription thereof that is within to the proposed defense military witness shall make arrangements for that the possession or control of counsel for or the preliminary hearing officer witness’s testimony. If expense to the the government. determines that the military witness is government is to be incurred, the (B) Notice of, and reasonable access relevant, not cumulative, and necessary, convening authority who directed the to, any other evidence that the counsel for the government shall request preliminary hearing, or the convening government intends to offer at the that the commanding officer of the authority’s delegate, shall determine preliminary hearing; and proposed military witness make that whether the witness testifies in person, (C) Notice of, and reasonable access person available to provide testimony. by videoteleconference, by telephone, or to, evidence that is within the The commanding officer shall similar means of remote testimony. possession or control of counsel for the determine whether the individual is (3) Other evidence. government that negates or reduces the available based on operational necessity (A) Evidence under the control of the degree of guilt of the accused for an or mission requirements, except that a government. offense charged. victim, as defined in this rule, who (i) Prior to the preliminary hearing, (2) At any preliminary hearing under declines to testify shall be deemed to be defense counsel shall provide to counsel this rule the accused shall have the right not available. If the commanding officer for the government a list of evidence to: determines that the military witness is under the control of the government the (A) Be represented by counsel; available, counsel for the government accused requests the government (B) Be informed of the purpose of the shall make arrangements for that produce to the defense for introduction preliminary hearing; individual’s testimony. The at the preliminary hearing. The (C) Be informed of the right against commanding officer’s determination of preliminary hearing officer may set a self-incrimination under Article 31; unavailability due to operational deadline by which defense requests

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must be received. Counsel for the preliminary hearing, the preliminary limited scope and purpose of the government shall respond that either (1) hearing officer shall direct counsel for preliminary hearing. The preliminary the government agrees that the evidence the government to issue subpoenas hearing officer shall not consider is relevant, not cumulative, and duces tecum for the defense-requested evidence not presented at the necessary for the limited scope and evidence. Failure on the part of counsel preliminary hearing. The preliminary purpose of the preliminary hearing and for the government to issue subpoenas hearing officer shall not call witnesses shall make reasonable efforts to obtain duces tecum directed by the preliminary sua sponte. the evidence; or (2) the government hearing officer shall be noted by the (2) Notice to and presence of the objects to production of the evidence on preliminary hearing officer in the report victim(s). the grounds that the evidence would be of preliminary hearing. (A) The victim(s) of an offense under irrelevant, cumulative, or unnecessary (h) Military Rules of Evidence. The the UCMJ has the right to reasonable, based on the limited scope and purpose Military Rules of Evidence do not apply accurate, and timely notice of a of the preliminary hearing. in preliminary hearings under this rule preliminary hearing relating to the (ii) If the government objects to except as follows: alleged offense. For the purposes of this production of the evidence, defense (1) Mil. R. Evid. 301–303 and 305 rule, a ‘‘victim’’ is a person who is counsel may request that the shall apply in their entirety. alleged to have suffered a direct preliminary hearing officer determine (2) Mil. R. Evid. 412 shall apply in physical, emotional, or pecuniary harm whether the evidence should be any case that includes a charge defined as a result of the matters set forth in a produced. The preliminary hearing as a sexual offense in Mil. R. Evid. charge or specification under officer shall determine whether the 412(d), except that Mil. R. Evid. consideration and is named in one of evidence is relevant, not cumulative, 412(b)(1)(C) shall not apply. the specifications under consideration. and necessary based on the limited (3) Mil. R. Evid., Section V, Privileges, (B) A victim of an offense under scope and purpose of the hearing. If the shall apply, except that Mil. R. Evid. consideration at the preliminary hearing preliminary hearing officer determines 505(f)–(h) and (j); 506(f)–(h), (j), (k), and is not required to testify at the that the evidence shall be produced, (m); 513(d)(8); and 514(d)(6) shall not preliminary hearing. counsel for the government shall make apply. (C) A victim has the right not to be reasonable efforts to obtain the (4) In applying these rules to a excluded from any portion of a evidence. preliminary hearing, the term ‘‘military preliminary hearing related to the (B) Evidence not under the control of judge,’’ as used in these rules shall alleged offense, unless the preliminary the government. mean the preliminary hearing officer, hearing officer, after receiving clear and (i) Evidence not under the control of who shall assume the military judge’s convincing evidence, determines the the government may be obtained authority to exclude evidence from the testimony by the victim would be through noncompulsory means or by preliminary hearing, and who shall, in materially altered if the victim heard subpoenas duces tecum issued by discharging this duty, follow the other testimony at the proceeding. counsel for the government in procedures set forth in the rules cited in (D) A victim shall be excluded if a accordance with the process established subsections (h)(1)–(3) of this rule. privilege set forth in Mil. R. Evid. 505 by R.C.M. 703. (5) Failure to meet the procedural or 506 is invoked or if evidence is (ii) Prior to the preliminary hearing, requirements of the applicable rules of offered under Mil. R. Evid. 412, 513, or defense counsel shall provide to counsel evidence shall result in exclusion of that 514, for charges other than those in for the government a list of evidence not evidence from the preliminary hearing, which the victim is named. under the control of the government that unless good cause is shown. (3) Presentation of evidence. the accused requests the government (i) Procedure. (A) Testimony. Witness testimony obtain. The preliminary hearing officer (1) Generally. The preliminary may be provided in person, by may set a deadline by which defense hearing shall begin with the preliminary videoteleconference, by telephone, or requests must be received. Counsel for hearing officer informing the accused of similar means of remote testimony. All the government shall respond that either the accused’s rights under subsection (f) testimony shall be taken under oath, (1) the government agrees that the of this rule. Counsel for the government except that the accused may make an evidence is relevant, not cumulative, will then present evidence. Upon the unsworn statement. The preliminary and necessary for the limited scope and conclusion of counsel for the hearing officer shall only consider purpose of the preliminary hearing and government’s presentation of evidence, testimony that is relevant to the limited shall issue subpoenas duces tecum for defense counsel may present matters in scope and purpose of the preliminary the evidence; or (2) the government defense and mitigation consistent with hearing. objects to production of the evidence on subsection (f) of this rule. For the (B) Other evidence. If relevant to the the grounds that the evidence would be purposes of this rule, ‘‘matters in limited scope and purpose of the irrelevant, cumulative, or unnecessary mitigation’’ are defined as matters that preliminary hearing, and not based on the limited scope and purpose may serve to explain the circumstances cumulative, a preliminary hearing of the preliminary hearing. surrounding a charged offense. Both officer may consider other evidence, in (iii) If the government objects to counsel for the government and defense addition to or in lieu of witness production of the evidence, defense shall be afforded an opportunity to testimony, including statements, counsel may request that the cross-examine adverse witnesses. The tangible evidence, or reproductions preliminary hearing officer determine preliminary hearing officer may also thereof, offered by either side, that the whether the evidence should be question witnesses called by the parties. preliminary hearing officer determines produced. If the preliminary hearing If the preliminary hearing officer is reliable. This other evidence need not officer determines that the evidence is determines that additional evidence is be sworn. relevant, not cumulative, and necessary necessary to satisfy the requirements of (4) Access by spectators. Access by based on the limited scope and purpose subsection (e) above, the preliminary spectators to all or part of the of the preliminary hearing and that the hearing officer may provide the parties proceedings may be restricted or issuance of subpoenas duces tecum an opportunity to present additional foreclosed in the discretion of the would not cause undue delay to the testimony or evidence relevant to the convening authority who directed the

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preliminary hearing or the preliminary classified information or closed sessions preliminary hearing officer in hearing officer. Preliminary hearings are in which the victim did not have the accordance with R.C.M. 1103A, counsel public proceedings and should remain right to attend under subsections for the government shall cause such open to the public whenever possible. (i)(2)(C) or (i)(2)(D) of this rule. materials to be sealed so as to prevent When an overriding interest exists that (7) Objections. Any objection alleging unauthorized viewing or disclosure. outweighs the value of an open failure to comply with this rule shall be (4) Distribution of the report. The preliminary hearing, the preliminary made to the convening authority via the preliminary hearing officer shall cause hearing may be closed to spectators. preliminary hearing officer. the report to be delivered to the Any closure must be narrowly tailored (8) Sealed exhibits and proceedings. convening authority who directed the to achieve the overriding interest that The preliminary hearing officer has the preliminary hearing. That convening justified the closure. Convening authority to order exhibits, proceedings, authority shall promptly cause a copy of authorities or preliminary hearing or other matters sealed as described in the report to be delivered to each officers must conclude that no lesser R.C.M. 1103A. accused. methods short of closing the (j) Report of preliminary hearing. (5) Objections. Any objection to the preliminary hearing can be used to (1) In general. The preliminary report shall be made to the convening protect the overriding interest in the hearing officer shall make a timely authority who directed the preliminary case. Convening authorities or written report of the preliminary hearing, via the preliminary hearing preliminary hearing officers must hearing to the convening authority who officer, within 5 days of its receipt by conduct a case-by-case, witness-by- directed the preliminary hearing. the accused. This subsection does not witness, circumstance-by-circumstance (2) Contents. The report of prohibit a convening authority from analysis of whether closure is necessary. preliminary hearing shall include: referring the charge(s) or taking other If a convening authority or preliminary (A) A statement of names and action within the 5-day period. hearing officer believes closing the organizations or addresses of defense (k) Waiver. The accused may waive a preliminary hearing is necessary, the counsel and whether defense counsel preliminary hearing under this rule. In convening authority or preliminary was present throughout the taking of addition, failure to make a timely hearing officer must make specific evidence, or if not present the reason objection under this rule, including an findings of fact in writing that support why; objection to the report, shall constitute the closure. The written findings of fact (B) The substance of the testimony waiver of the objection. Relief from the must be included in the report of taken on both sides; waiver may be granted by the convening preliminary hearing. Examples of (C) Any other statements, documents, authority who directed the preliminary overriding interests may include: or matters considered by the hearing, a superior convening authority, preventing psychological harm or preliminary hearing officer, or recitals of or the military judge, as appropriate, for trauma to a child witness or an alleged the substance or nature of such good cause shown.’’ victim of a sexual crime, protecting the evidence; (k) R.C.M. 601(g) is inserted to read as safety or privacy of a witness or alleged (D) A statement that an essential follows: victim, protecting classified material, witness may not be available for trial; ‘‘(g) Parallel convening authorities. If and receiving evidence where a witness (E) An explanation of any delays in it is impracticable for the original is incapable of testifying in an open the preliminary hearing; convening authority to continue setting. (F) A notation if counsel for the exercising authority over the charges, (5) Presence of accused. The further government failed to issue a subpoena the convening authority may cause the progress of the taking of evidence shall duces tecum that was directed by the charges, even if referred, to be not be prevented and the accused shall preliminary hearing officer; transmitted to a parallel convening be considered to have waived the right (G) The preliminary hearing officer’s authority. This transmittal must be in to be present whenever the accused: determination as to whether there is writing and in accordance with such (A) After being notified of the time probable cause to believe the offense(s) regulations as the Secretary concerned and place of the proceeding is listed on the charge sheet or otherwise may prescribe. Subsequent actions taken voluntarily absent; or considered at the preliminary hearing by the parallel convening authority are (B) After being warned by the occurred; within the sole discretion of that preliminary hearing officer that (H) The preliminary hearing officer’s convening authority.’’ disruptive conduct will cause removal determination as to whether there is (l) R.C.M. 703(e)(2)(B) is amended to from the proceeding, persists in conduct probable cause to believe the accused read as follows: which is such as to justify exclusion committed the offense(s) listed on the ‘‘(B) Contents. A subpoena shall state from the proceeding. charge sheet or otherwise considered at the command by which the proceeding (6) Recording of the preliminary the preliminary hearing; is directed, and the title, if any, of the hearing. Counsel for the government (I) The preliminary hearing officer’s proceeding. A subpoena shall command shall ensure that the preliminary determination as to whether a court- each person to whom it is directed to hearing is recorded by a suitable martial has jurisdiction over the attend and give testimony at the time recording device. A victim, as defined offense(s) and the accused; and place specified therein. A subpoena by subsection (i)(2)(A) of this rule, may (J) The preliminary hearing officer’s may also command the person to whom request access to, or a copy of, the determination as to whether the it is directed to produce books, papers, recording of the proceedings. Upon charge(s) and specification(s) are in documents, data, or other objects or request, counsel for the government proper form; and electronically stored information shall provide the requested access to, or (K) The recommendations of the designated therein at the proceeding or a copy of, the recording to the victim preliminary hearing officer regarding at an earlier time for inspection by the not later than a reasonable time disposition of the charge(s). parties. A subpoena issued for a following dismissal of the charges, (3) Sealed exhibits and proceedings. If preliminary hearing pursuant to Article unless charges are dismissed for the the report of preliminary hearing 32 shall not command any person to purpose of re-referral, or court-martial contains exhibits, proceedings, or other attend or give testimony at an Article 32 adjournment. A victim is not entitled to matters ordered sealed by the preliminary hearing.’’

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(m) R.C.M. 703(e)(2)(C) is amended to whether a designation is required or ‘‘(C) Presentation by the defense of read as follows: making such an appointment under this evidence in extenuation or mitigation or ‘‘(C) Who may issue. rule. both. (1) A subpoena to secure evidence (v) If the military judge determines a (D) Rebuttal. may be issued by: hearing pursuant to Article 39(a), UCMJ, (E) Argument by trial counsel on (a) The summary court-martial; is necessary, the following shall be sentence. (b) Detailed counsel for the notified of the hearing and afforded the (F) Argument by defense counsel on government at an Article 32 preliminary right to be present at the hearing: trial sentence. hearing; counsel, accused, and the victim(s). (G) Rebuttal arguments in the (c) After referral to a court-martial, discretion of the military judge.’’ detailed trial counsel; (vi) The individual designated shall (v) A new rule, R.C.M.1001A is (d) The president of a court of inquiry; not be the accused. inserted to read as follows: or (C) At any time after appointment, a ‘‘A victim of an offense of which the (e) An officer detailed to take a designee shall be excused upon request accused has been found guilty has the deposition.’’ by the designee or a finding of good right to be reasonably heard at a (n) R.C.M. 703(f)(4)(B) is amended to cause by the military judge. sentencing hearing relating to that read as follows: (D) If the individual appointed to offense. For the purposes of this rule, (B) Evidence not under the control of assume the victim’s rights is excused, the right to be reasonably heard means the government. Evidence not under the the military judge shall appoint a the right to testify under oath. Trial control of the government may be successor consistent with this rule.’’ counsel shall ensure the victim has the obtained by a subpoena issued in (p) R.C.M. 806(b)(2) is insert following opportunity to exercise that right. As accordance with subsection (e)(2) of this R.C.M. 806(b)(1) and before the used in this rule a ‘‘victim’’ is a person rule. A subpoena duces tecum to Discussion section to read as follows: who has suffered direct physical, produce books, papers, documents, ‘‘(2) Right of victim to attend. A emotional, or pecuniary harm as a result data, or other objects or electronically victim of an alleged offense committed of the commission of an offense. If the stored information for a preliminary by the accused may not be excluded victim exercises the right to be hearing pursuant to Article 32 may be from a court-martial relating to the reasonably heard, the victim shall be issued, following the convening offense, unless the military judge, after called by the court.’’ authority’s order directing such receiving clear and convincing (w) R.C.M. 1103A(a) is amended to preliminary hearing, by counsel for the evidence, determines that testimony by read as follows: government. A person in receipt of a the victim would be materially altered ‘‘(a) In general. If the report of subpoena duces tecum for an Article 32 if the victim heard other testimony at preliminary hearing or record of trial hearing need not personally appear in that hearing or proceeding.’’ contains exhibits, proceedings, or other order to comply with the subpoena.’’ matter ordered sealed by the military (o) R.C.M. 801(a)(g) is inserted to read (q) R.C.M. 806(b)(2) is renumbered as R.C.M. 806(b)(3). judge, counsel for the government or as follows: trial counsel shall cause such materials ‘‘(6) In the case of a victim of an (r) R.C.M. 906(b)(8) is amended to to be sealed so as to prevent offense under the UCMJ who is under read as follows: unauthorized viewing or disclosure. 18 years of age and not a member of the ‘‘(8) Relief from pretrial confinement. Counsel for the government or trial armed forces, or who is incompetent, Upon a motion for release from pretrial counsel shall ensure that such materials incapacitated, or deceased, designate in confinement, a victim of an alleged are properly marked, including an writing, a family member, a offense committed by the accused has annotation that the material was sealed representative of the estate of the victim, the right to reasonable, accurate, and by order of the military judge, and or another suitable individual to assume timely notice of the motion and any the victim’s rights under the UCMJ. hearing, the right to consult with trial inserted at the appropriate place in the (A) For the purposes of this rule, the counsel, and the right to be reasonably original record of trial. Copies of the individual is designated for the sole heard. Inability to reasonably afford a report of preliminary hearing or record purpose of assuming the legal rights of victim these rights shall not delay the of trial shall contain appropriate the victim as they pertain to the victim’s proceedings. The right to be heard annotations that matters were sealed by status as a victim of any offense(s) under this rule includes the right to be order of the preliminary hearing officer properly before the court. heard through counsel.’’ or military judge and have been inserted in the report of preliminary hearing or (B) Procedure to determine (s) R.C.M. 912(i)(3) is amended to read original record of trial.’’ appointment of designee. as follows: (i) As soon as practicable, trial (x) R.C.M. 1103A(b)(1) is amended to ‘‘(3) Preliminary hearing officer. For counsel shall notify the military judge, read as follows: purposes of this rule, ‘‘preliminary counsel for the accused and the ‘‘(1) Prior to referral. The following hearing officer’’ includes any person victim(s) of any offense(s) properly individuals may examine sealed who has examined charges under before the court when there is an materials only if necessary for proper R.C.M. 405 and any person who was apparent requirement to appoint a fulfillment of their responsibilities counsel for a member of a court of designee under this rule. under the UCMJ, the MCM, governing (ii) The military judge will determine inquiry, or otherwise personally has directives, instructions, regulations, if the appointment of a designee is conducted an investigation of the applicable rules for practice and required under this rule. general matter involving the offenses procedure, or rules of professional (iii) At the discretion of the military charged.’’ responsibility: the judge advocate judge, victim(s), trial counsel, and the (t) R.C.M. 1001(a)(1)(B) is amended to advising the convening authority who accused may be given the opportunity to read as follows: directed the Article 32 preliminary recommend to the military judge ‘‘(B) Victim’s right to be reasonably hearing; the convening authority who individual(s) for appointment. heard. See R.C.M. 1001A.’’ directed the Article 32 preliminary (iv) The military judge is not required (u) R.C.M. 1001(a)(C)–(G) are re- hearing; the staff judge advocate to the to hold a hearing before determining lettered to read as follows: general court-martial convening

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authority; and the general court-martial convening authority may take action (D) The convening authority shall not convening authority.’’ subject to the following limitations: disapprove, commute, or suspend any (y) R.C.M. 1103A(b)(5) is inserted to (1) For offenses charged under mandatory minimum sentence except in read as follows: subsection (a) or (b) of Article 120; accordance with subsection (E) below. ‘‘(5) Examination of sealed matters. offenses charged under Article 120b; (E) Exceptions. For the purpose of this rule, and offenses charged under Article 125. (i) Trial counsel recommendation. ‘‘examination’’ includes reading, (A) The convening authority is Upon the recommendation of the trial viewing, photocopying, photographing, prohibited from: counsel, in recognition of the disclosing, or manipulating the sealed (i) Setting aside any finding of guilt or substantial assistance by the accused in matters in any way.’’ dismissing a specification; or the investigation or prosecution of (z) R.C.M. 1105 is amended to read as (ii) Changing a finding of guilty to a another person who has committed an follows: charge or specification to a finding of offense, the convening authority or [Note: R.C.M. 1105(b)(1) and (b)(2) guilty to an offense that is a lesser another person authorized to act under apply to offenses committed on or after included offense of the offense stated in this section shall have the authority to 24 June 2014. The previous version of the charge or specification. disapprove, commute, or suspend the R.C.M. 1105(b)(1) and (b)(2) is located in (B) The convening authority may adjudged sentence, in whole or in part, Appendix 29.] direct a rehearing in accordance with even with respect to an offense for (aa) R.C.M. 1105(b)(1) is amended to subsection (e) of this rule. which a mandatory minimum sentence read as follows: (2) For offenses other than those listed exists. ‘‘(1) The accused may submit to the in subsection (c)(1), for which the (ii) Pretrial agreement. If a pretrial convening authority any matters that maximum sentence of confinement that agreement has been entered into by the may reasonably tend to affect the may be adjudged does not exceed two convening authority and the accused as convening authority’s decision whether years without regard to the authorized by R.C.M. 705, the to disapprove any findings of guilty or jurisdictional limits of the court; and the convening authority shall have the to approve the sentence, except as may sentence adjudged does not include authority to approve, disapprove, be limited by R.C.M. 1107(b)(3)(C). The dismissal, a dishonorable discharge, commute, or suspend a sentence, in convening authority is only required to bad-conduct discharge, or confinement whole or in part, pursuant to the terms consider written submissions.’’ for more than six months: of the pretrial agreement. The convening (bb) R.C.M. 1105(b)(2)(C) is amended (A) The convening authority may authority may commute a mandatory to read as follows: change a finding of guilty to a charge or sentence of a dishonorable discharge to ‘‘(C) Matters in mitigation which were specification to a finding of guilty to an a bad-conduct discharge pursuant to the not available for consideration at the offense that is a lesser included offense terms of the pretrial agreement. court-martial, except as may be limited of the offense stated in the charge or (F) If the convening authority acts to by R.C.M. 1107(b)(3)(B); and’’ specification; or disapprove, commute, or suspend, in (cc) R.C.M. 1107 is amended to read (B) Set aside any finding of guilty and: whole or in part, the sentence of the as follows: (i) Dismiss the specification and, if court-martial for an offense, the [Note: R.C.M. 1107(b)–(d) and (f) apply appropriate, the charge; or convening authority shall provide, at to offenses committed on or after 24 (ii) Direct a rehearing in accordance the same time, a written explanation of June 2014. The previous version of with subsection (e) of this rule. the reasons for such action. The written R.C.M. 1107(b) is located in Appendix (3) If the convening authority acts to explanation shall be made a part of the 29.] dismiss or change any charge or record of trial and action thereon.’’ specification for an offense, the (jj) R.C.M. 1107(d)(2) is amended to (dd) R.C.M. 1107(b)(1) is amended to convening authority shall provide, at read as follows: read as follows: ‘‘(2) Determining what sentence ‘‘(1) Discretion of convening authority. the same time, a written explanation of should be approved. The convening Any action to be taken on the findings the reasons for such action. The written authority shall, subject to the limitations and sentence is within the sole explanation shall be made a part of the in subsection (d)(1) above, approve that discretion of the convening authority. record of trial and action thereon.’’ sentence which is warranted by the The convening authority is not required (ii) R.C.M. 1107(d)(1) is amended to circumstances of the offense and to review the case for legal errors or read as follows: ‘‘(1) In general. appropriate for the accused.’’ factual sufficiency.’’ (A) The convening authority may not (kk) R.C.M. 1107(f)(2) is amended to (ee) R.C.M. 1107(b)(3)(A)(iii) is disapprove, commute, or suspend, in read as follows: amended to read as follows: ‘‘(2) Modification of initial action. ‘‘(iii) Any matters submitted by the whole or in part, any portion of an Subject to the limitations in subsections accused under R.C.M. 1105 or, if adjudged sentence of confinement for (c) and (d) above, the convening applicable, R.C.M. 1106(f); more than six months. (ff) R.C.M. 1107(b)(3)(A)(iv) is (B) The convening authority may not authority may recall and modify any inserted to read as follows: disapprove, commute, or suspend that action taken by that convening authority ‘‘(iv) Any statement submitted by a portion of an adjudged sentence that at any time before it has been published crime victim pursuant to R.C.M. 1105A includes a dismissal, dishonorable or before the accused has been officially and subsection (C) below.’’ discharge, or bad-conduct discharge. notified. The convening authority may (gg) R.C.M. 1107(b)(3)(B)(i) is (C) The convening authority may also recall and modify any action at any amended to read as follows: disapprove, commute, or suspend, in time prior to forwarding the record for ‘‘(i) The record of trial, subject to the whole or in part, any portion of an review, as long as the modification does provisions of R.C.M. 1103A and adjudged sentence not explicitly not result in action less favorable to the subsection (C) below;’’ prohibited by this rule, to include accused than the earlier action. In (hh) R.C.M. 1107(c) is amended to reduction in pay grade, forfeitures of addition, in any special court-martial, read as follows: pay and allowances, fines, reprimands, the convening authority may recall and ‘‘(c) Action on findings. Action on the restrictions, and hard labor without correct an illegal, erroneous, findings is not required. However, the confinement. incomplete, or ambiguous action at any

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time before completion of review under suspend or remit the unexecuted part of conduct a hearing, which shall be R.C.M. 1112, as long as the correction a sentence of confinement for life closed. At this hearing, the parties may does not result in action less favorable without eligibility for parole only after call witnesses, including the alleged to the accused than the earlier action. the service of a period of confinement victim, and offer relevant evidence. The When so directed by a higher reviewing of not less than 20 years. The alleged victim must be afforded a authority or the Judge Advocate commander of the accused who has the reasonable opportunity to attend and be General, the convening authority shall authority to convene a court-martial of heard. The right to be heard under this modify any incomplete, ambiguous, the kind that adjudged the sentence may rule includes the right to be heard void, or inaccurate action noted in suspend or remit any part of the through counsel. In a case before a review of the record of trial under unexecuted part of any sentence by court-martial comprised of a military Articles 64, 66, 67, or examination of summary court-martial or of any judge and members, the military judge the record of trial under Article 69. The sentence by special court-martial that shall conduct the hearing outside the convening authority shall personally does not include a bad-conduct presence of the members pursuant to sign any supplementary or corrective discharge regardless of whether the Article 39(a). The motion, related action. A written explanation is person acting has previously approved papers, and the record of the hearing required for any modification of initial the sentence. The ‘‘unexecuted part of must be sealed in accordance with action which: 1) sets aside any finding any sentence’’ is that part that has been R.C.M. 1103A and remain under seal of guilt or dismisses or changes any approved and ordered executed but that unless the military judge or an appellate charge or specification for an offense; or has not actually been carried out.’’ court orders otherwise.’’ 2) disapproves, commutes, or suspends, (oo) R.C.M. 1301(c) is amended to (b) Mil. R. Evid. 513(e)(2) is amended in whole or in part, the sentence. The read as follows: to read as follows: written explanation shall be made a part [Note: R.C.M. 1301(c) applies to offenses ‘‘(2) Before ordering the production or of the record of trial and action committed on or after 24 June 2014. The admission of evidence of a patient’s thereon.’’ previous version of R.C.M. 1301(c) is records or communication, the military (ll) R.C.M. 1107(g) is amended to read located in Appendix 29.] judge shall conduct a hearing. Upon the as follows: (pp) R.C.M. 1301(c) is amended to motion of counsel for either party and ‘‘(g) Incomplete, ambiguous, or number the current paragraph as (1) and upon good cause shown, the military erroneous action. When the action of insert a new second paragraph after the judge may order the hearing closed. At the convening authority or of a higher current Discussion as follows: the hearing, the parties may call authority is incomplete, ambiguous, or ‘‘(2) Notwithstanding subsection (c)(1) witnesses, including the patient, and contains error, the authority who took above, summary courts-martial do not offer other relevant evidence. The the incomplete, ambiguous, or have jurisdiction over offenses under patient shall be afforded a reasonable erroneous action may be instructed by Articles 120(a), 120(b), 120b(a), 120b(b), opportunity to attend the hearing and be an authority acting under Articles 64, forcible sodomy under Article 125, and heard at the patient’s own expense 66, 67, or 69 to withdraw the original attempts thereof under Article 80, unless the patient has been otherwise action and substitute a corrected UCMJ. Such offenses shall not be subpoenaed or ordered to appear at the action.’’ referred to a summary court-martial.’’ hearing. The right to be heard under this (mm) R.C.M. 1108 is amended to read (qq) R.C.M. 406(b)(2) and R.C.M. 1103 rule includes the right to be heard as follows: are amended by changing ‘‘report of through counsel. However, the [Note: R.C.M. 1108(b) applies to offenses investigation’’ to ‘‘report of preliminary proceedings shall not be unduly delayed committed on or after 24 June 2014. The hearing’’ for offenses committed on or for this purpose. In a case before a court- previous version of R.C.M. 1108(b) is after 26 December 2014. martial comprised of a military judge (rr) R.C.M. 603(b) and R.C.M. located in Appendix 29.] and members, the military judge shall 912(f)(1)(F) are amended by changing conduct the hearing outside the (nn) R.C.M. 1108(b) is amended to ‘‘an investigating officer’’ to ‘‘a presence of the members.’’ read as follows: preliminary hearing officer’’ for offenses (c) The title of Mil. R. Evid. 514 is ‘‘(b) Who may suspend and remit. The committed on or after 26 December amended to read as follows: convening authority may, after 2014. approving the sentence, suspend the (ss) R.C.M. 705(c)(2)(E), R.C.M. ‘‘Victim advocate-victim and DoD execution of all or any part of the 905(b)(1), and R.C.M. 906(b)(3) are Safe Helpline staff-victim privilege.’’ sentence of a court-martial, except for a amended by changing ‘‘Article 32 (d) Mil. R. Evid. 514(a) is amended to sentence of death or as prohibited under investigation’’ to ‘‘Article 32 read as follows: R.C.M. 1107. The general court-martial preliminary hearing’’ for offenses ‘‘(a) General Rule. A victim has a convening authority over the accused at committed on or after 26 December privilege to refuse to disclose and to the time of the court-martial may, when 2014. prevent any other person from taking action under R.C.M. 1112(f), (tt) R.C.M. 706(a), R.C.M. 706(c)(3)(A), disclosing a confidential suspend or remit any part of the R.C.M. 902(b)(2), R.C.M. 912(a)(1)(K), communication made between the sentence. The Secretary concerned and, R.C.M. 1106(b), and R.C.M. 1112(c) are alleged victim and a victim advocate or when designated by the Secretary amended by changing ‘‘investigating between the alleged victim and DoD concerned, any Under Secretary, officer’’ to ‘‘preliminary hearing officer’’ Safe Helpline staff, in a case arising Assistant Secretary, Judge Advocate for offenses committed on or after 26 under the Uniform Code of Military General, or commanding officer may December 2014. Justice, if such communication was suspend or remit any part or amount of Sec. 2. Part III of the Manual for made for the purpose of facilitating the unexecuted part of any sentence Courts-Martial, United States, is advice or assistance to the alleged other than a sentence approved by the amended as follows: victim.’’ President or a sentence of confinement (a) Mil. R. Evid. 412(c)(2) is amended (e) Mil. R. Evid. 514(b)(3)–(5) is for life without eligibility for parole that to read as follows: amended to read as follows has been ordered executed. The ‘‘(2) Before admitting evidence under ‘‘(3) ‘‘DoD Safe Helpline staff’’ is a Secretary concerned may, however, this rule, the military judge must person who is designated by competent

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authority in writing as DoD Safe the hearing, the parties may call (2) Conspiracy when offense is an Helpline staff. witnesses, including the victim, and offense under the law of war resulting in (4) A communication is offer other relevant evidence. The the death of one or more victims. ‘‘confidential’’ if made in the course of victim must be afforded a reasonable (a) That the accused entered into an the victim advocate-victim relationship opportunity to attend the hearing and be agreement with one or more persons to or DoD Safe Helpline staff-victim heard at the victim’s own expense commit an offense under the law of war; relationship and not intended to be unless the victim has been otherwise (b) That, while the agreement disclosed to third persons other than subpoenaed or ordered to appear at the continued to exist, and while the those to whom disclosure is made in hearing. The right to be heard under this accused remained a party to the furtherance of the rendition of advice or rule includes the right to be heard agreement, the accused knowingly assistance to the alleged victim or those through counsel. However, the performed an overt act for the purpose reasonably necessary for such proceedings may not be unduly delayed of bringing about the object of the transmission of the communication. for this purpose. In a case before a court- conspiracy; and (5) ‘‘Evidence of a victim’s records or martial composed of a military judge (c) That death resulted to one or more communications’’ means testimony of a and members, the military judge must victims.’’ victim advocate or DoD Safe Helpline conduct the hearing outside the (c) Paragraph 5, Article 81— staff, or records that pertain to presence of the members.’’ Conspiracy, paragraph e. is amended by communications by a victim to a victim (k) Mil. R. Evid. 615(e) is amended to adding ‘‘However, if the offense is also advocate or DoD Safe Helpline staff, for read as follows: an offense under the law of war, the the purposes of advising or providing ‘‘(e) A victim of an offense from the person knowingly performed an overt assistance to the victim.’’ trial of an accused for that offense, act for the purpose of bringing about the (g) Mil. R. Evid. 514(c) is amended to unless the military judge, after receiving object of the conspiracy, and death read as follows: clear and convincing evidence, results to one or more victims, the death ‘‘(c) Who May Claim the Privilege. The determines that testimony by the victim penalty shall be an available privilege may be claimed by the victim would be materially altered if the victim punishment.’’ to the end of the or the guardian or conservator of the heard other testimony at that hearing or paragraph. victim. A person who may claim the proceeding.’’ (d) Paragraph 5, Article 81— privilege may authorize trial counsel or Sec. 3. Part IV of the Manual for Conspiracy, paragraph f. is amended to a counsel representing the victim to Courts-Martial, United States, is read as follows: claim the privilege on his or her behalf. amended as follows: ‘‘f. Sample specifications. The victim advocate or DoD Safe (a) Paragraph 5, Article 81— (1) Conspiracy. Helpline staff who received the Conspiracy, subsection a. is amended to In that lllll (personal communication may claim the privilege read as follows: jurisdiction data), did, (at/on board— on behalf of the victim. The authority of ‘‘a. Text of statute. location) (subject-matter jurisdiction such a victim advocate, DoD Safe (a) Any person subject to this chapter data, if required), on or about llll Helpline staff, guardian, conservator, or who conspires with any other person to 20 l lll, conspired with l lll a counsel representing the victim to so commit an offense under this chapter (and l llll) to commit an offense assert the privilege is presumed in the shall, if one or more of the conspirators under the Uniform Code of Military absence of evidence to the contrary.’’ does an act to effect the object of the Justice, to wit: (larceny of l llll, (h) Mil. R. Evid. 514(d)(2)–(4) is conspiracy, be punished as a court- of a value of (about) $ l llll, the amended to read as follows: martial may direct. property of l llll), and in order to ‘‘(2) When federal law, state law, (b) Any person subject to this chapter effect the object of the conspiracy the Department of Defense regulation, or who conspires with any other person to said l llll (and l llll) did service regulation imposes a duty to commit an offense under the law of war, l llll. report information contained in a and who knowingly does an overt act to (2) Conspiracy when offense is an communication; effect the object of the conspiracy, shall offense under the law of war resulting in (3) When a victim advocate or DoD be punished, if death results to one or the death of one or more victims. Safe Helpline staff believes that a more of the victims, by death or such In that l llll lll (personal victim’s mental or emotional condition other punishment as a court-martial or jurisdiction data), did, (at/on board— makes the victim a danger to any military commission may direct, and, if location) (subject-matter jurisdiction person, including the victim; death does not result to any of the data, if required), on or about l lll (4) If the communication clearly victims, by such punishment, other than 20 l lll, conspired with l lll contemplated the future commission of death, as a court-martial or military (and l llll) to commit an offense a fraud or crime, or if the services of the commission may direct.’’ victim advocate or DoD Safe Helpline (b) Paragraph 5, Article 81— under the law of war, to wit: (murder of l llll staff are sought or obtained to enable or Conspiracy, subsection b. is amended to ), and in order to effect the aid anyone to commit or plan to commit read as follows: object of the conspiracy the what the victim knew or reasonably ‘‘b. Elements. said l llll knowingly did l should have known to be a crime or (1) Conspiracy. llll resulting in the death of l fraud;’’ (a) That the accused entered into an llll lll.’’ (j) Mil. R. Evid. 514(e)(2) is amended agreement with one or more persons to (e) Paragraph 16, Article 92—Failure to read as follows: commit an offense under the UCMJ; and to obey order or regulation, is amended ‘‘(2) Before ordering the production or (b) That, while the agreement by inserting the following text after admission of evidence of a victim’s continued to exist, and while the subparagraph b(3)(c) and adding a new records or communication, the military accused remained a party to the subparagraph b(3)(d): judge must conduct a hearing. Upon the agreement, the accused or at least one of ‘‘(Note: In cases where the dereliction of motion of counsel for either party and the co-conspirators performed an overt duty resulted in death or grievous upon good cause shown, the military act for the purpose of bringing about the bodily harm, add the following as judge may order the hearing closed. At object of the conspiracy. applicable)

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(d) That such dereliction of duty of all pay and allowances, and (i) Paragraph 17, Article 93—Cruelty resulted in death or grievous bodily confinement for 2 years.’’ and maltreatment, paragraph e. is harm to a person other than the (h) Paragraph 16, Article 92—Failure amended to read as follows: accused.’’ to obey order or regulation, is amended ‘‘ e. Maximum punishment. (f) Paragraph 16, Article 92—Failure by inserting new subparagraph f(4) as Dishonorable discharge, forfeiture of all to obey order or regulation, is amended follows: pay and allowances, and confinement by inserting new subparagraphs c(3)(e) for 2 years.’’ and (f) as follows: ‘‘(4) Dereliction in the performance of (j) Paragraph 57, Article 131—Perjury, ‘‘(e) Grievous bodily harm. ‘‘Grievous duties. paragraphs c. is amended by changing bodily harm’’ means serious bodily In that, l llll ll_ (personal ‘‘an investigation conducted under injury. It does not include minor jurisdiction data), who (knew) (should Article 32’’ to ‘‘a preliminary hearing injuries, such as a black eye or a bloody have known) of his/her duties (at/on conducted under Article 32’’ and by nose, but does include fractured or board—location) (subject-matter changing ‘‘an Article 32 investigation’’ dislocated bones, deep cuts, torn jurisdiction data, if required), (on or to ‘‘an Article 32 preliminary hearing’’ members of the body, serious damage to about l 20 l) (from about l lll 20 for offenses occurring on or after 26 internal organs, and other serious bodily l l to about l lll20ll), was December 2014. injuries. derelict in the performance of those (k) Paragraph 96, Article 134— (f) Where the dereliction of duty duties in that he/she (negligently) Obstructing justice, paragraph f. is resulted in death or grievous bodily (willfully) (by culpable inefficiency) amended by changing ‘‘an investigating harm, an intent to cause death or failed l llll, as it was his/her duty officer’’ to ‘‘a preliminary hearing grievous bodily harm is not required.’’ to do (, and that such dereliction of duty officer’’ and by changing ‘‘before such (g) Paragraph 16, Article 92—Failure resulted in (grievous bodily harm, to investigating officer’’ to ‘‘before such to obey order or regulation, is amended wit: (broken leg) (deep cut) (fractured preliminary hearing officer’’ for offenses by inserting new subparagraph e(3)(B), skull) to) (the death of) l llll occurring on or after 26 December 2014. re-lettering the existing subparagraph lll.) (l) Paragraph 96a, Article 134— e(3)(B) as subparagraph e(3)(C) and Wrongful interference with an adverse inserting a new subparagraph e(3)(D) as (Note: For (1) and (2) above, the administrative proceeding, paragraph f. follows: punishment set forth does not apply in is amended by changing ‘‘an ‘‘(B) Through neglect or culpable the following cases: if, in the absence of investigating officer’’ to ‘‘a preliminary inefficiency resulting in death or the order or regulation which was hearing officer’’ and by changing grievous bodily harm. Bad-conduct violated or not obeyed, the accused ‘‘before such investigating officer’’ to discharge, forfeiture of all pay and would on the same facts be subject to ‘‘before such preliminary hearing allowances, and confinement for 18 conviction for another specific offense officer’’ for offenses occurring on or months. for which a lesser punishment is after 26 December 2014. (C) Willful. Bad-conduct discharge, prescribed; or, if the violation or failure Sec. 4. Appendix 12, Maximum forfeiture of all pay and allowances, and to obey is a breach of restraint imposed Punishment Chart is amended and reads confinement for 6 months. as a result of an order. In these as follows: (D) Willful dereliction of duty instances, the maximum punishment is (a) Article 92, Failure to obey order, resulting in death or grievous bodily that specifically prescribed elsewhere regulation, Dereliction in performance harm. Dishonorable discharge, forfeiture for that particular offense.)’’ of duties is amended to read as follows:

‘‘Through neglect or culpable inefficiency ...... None ...... 3 mos...... 2/3 3 mos. Through neglect or culpable inefficiency resulting in death or grievous bodily BCD ...... 18 mos...... Total harm. Willful ...... BCD ...... 6 mos...... Total Willful dereliction of duty resulting in death or grievous bodily harm ...... DD, BCD ...... 3 yrs...... Total’’

(b) Article 93, Cruelty & maltreatment of subordinates is amended to read as follows:

‘‘Cruelty & maltreatment of subordinates ...... DD, BCD ...... 2 yrs...... Total’’

(c) Article 118, Murder is amended to ‘‘Confinement’’ for ‘‘article 118(1) or property: knowingly receiving, buying, delete the superscript ‘‘4’’ attached to (4)’’. concealing’’ before the entry for Article ‘‘Life’’ under the heading (d) Article 134 is amended by 134 ‘‘Straggling’’ as follows: inserting a new section ‘‘Stolen

‘‘Stolen property: knowingly receiving, buying, concealing Of a value of $500.00 or less ...... BCD ...... 6 mos...... Total Of a value of more than $500.00 ...... DD ...... 3 yrs...... Total’’

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Sec. 5. Appendix 21, Analysis of 2014, and this rule should be used for 1701 of the National Defense Rules for Courts-Martial is amended as offenses occurring on or after 26 Authorization Act for Fiscal Year 2014, follows: December 2014.’’ The analysis related to P.L. 113–66, 26 December 2013. (a) Rule 201 is amended to insert the the prior version of R.C.M. 405 is (n) Rule 1103A is amended to insert following at the end: located in Appendix 30. the following: ‘‘2014 Amendment. The discussion (g) Rule 601(f) is amended by ‘‘This rule shall be implemented in a was amended in light of Solorio v. removing the word ‘‘new’’ before manner consistent with Executive Order United States, 483 U.S. 435 (1987). ‘‘provision’’ 12958, as amended, concerning O’Callahan v. Parker, 395 U.S. 258 (h) Rule 601 is amended by inserting classified national security (1969), held that an offense under the the following at the end: information.’’ Code could not be tried by court-martial ‘‘(g) Parallel convening authorities. (o) Rule 1105(b) is amended to insert unless the offense was ‘‘service The intent of this new provision is to the following at the end: connected.’’ Solorio overruled allow a successor convening authority ‘‘2014 Amendment: R.C.M. 1105(b) O’Callahan. The struck language was to exercise full authority over charges, was revised to implement Section 1706 inadvertently left in prior revisions of without having to effectuate re-referral of the National Defense Authorization the Manual.’’ or potentially a new trial. The Act for Fiscal Year 2014, P.L. 113–66, 26 (b) Rule 201(f) is amended to insert subsection incorporates a December 2013, and applies to offenses the following at the end: recommendation of the May 2013 report occurring on or after 24 June 2014.’’ ‘‘2014 Amendment: R.C.M. of the Defense Legal Policy Board (p) Rule 1107(b) is amended to insert 201(f)(2)(D) was created to implement (DLPB), Report of the Subcommittee on the following at the end: Section 1705 of the National Defense Military Justice in Combat Zones. The ‘‘2014 Amendment: This subsection Authorization Act for Fiscal Year 2014, DLPB is a Federal Advisory Committee was revised to implement Article 60(c), P.L. 113–66, 26 December 2013, and established to provide independent UCMJ, as amended by Section 1702 of applies to offenses occurring on or after advice to the Secretary of Defense. The the National Defense Authorization Act 24 June 2014. Sec. 1705(c), P.L. 113– DLPB found that an inhibition to for Fiscal Year 2014, P.L. 113–66, 26 66.’’ retaining cases in an area of operations December 2013, as well as Section 1706 (c) Rule 305(i) is amended to insert is the inability of a convening authority of the National Defense Authorization the following at the end: to transmit a case to another convening Act for Fiscal Year 2014, P.L. 113–66, 26 ‘‘2014 Amendment: R.C.M. 305(i)(2) authority after referral of charges December 2013, and applies to offenses was revised to implement Articles without having to withdraw the occurring on or after 24 June 2014. For 6b(a)(2)(E) and 6b(a)(4)(A), UCMJ, as charges.’’ offenses occurring prior to 24 June 2014, created by Section 1701 of the National (i) Rule 801(a) is amended to insert refer to prior versions of R.C.M. Defense Authorization Act for Fiscal the following at the end: 1107(b).’’ Year 2014, P.L. 113–66, 26 December ‘‘2014 Amendment: R.C.M. 801(a)(6) (q) The existing analysis to Rule 2013.’’ was created to implement Section 1701 1107(c) is removed and new analysis is (d) Rule 305 is amended to insert the of the National Defense Authorization inserted as follows: following at the end: Act for Fiscal Year 2014, P.L. 113–66, 26 ‘‘2014 Amendment: This subsection ‘‘(n) 2014 Amendment: R.C.M. 305(n) December 2013.’’ was substantially revised to implement was created to implement Article (j) Rule 806(b) is amended by Article 60(c), UCMJ, as amended by 6b(a)(2)(E), UCMJ, as created by Section inserting the following at the end: Section 1702 of the National Defense 1701 of the National Defense ‘‘2014 Amendment: R.C.M. 806(b)(2) Authorization Act for Fiscal Year 2014, Authorization Act for Fiscal Year 2014, was revised to implement Article P.L. 113–66, 26 December 2013, and P.L. 113–66, 26 December 2013.’’ 6b(a)(3), UCMJ, as created by Section applies to offenses occurring on or after (e) A new Analysis section is inserted 1701 of the National Defense 24 June 2014. For offenses occurring for Rule 404A and reads as follows: Authorization Act for Fiscal Year 2014, prior to 24 June 2014, refer to prior ‘‘2014 Amendment. This is a new rule P.L. 113–66, 26 December 2013.’’ versions of R.C.M. 1107(c).’’ created to implement Section 1702 of (k) Rule 906(b) is amended to insert (r) The existing analysis to Rule the National Defense Authorization Act the following at the end: 1107(d) is removed and new analysis is for Fiscal Year 2014, P.L. 113–66, 26 ‘‘2014 Amendment: R.C.M. 906(b)(8) inserted as follows: December 2013, and applies to offenses was revised to implement Articles ‘‘2014 Amendment: This subsection occurring on or after 26 December 2014. 6b(a)(2)(E) and 6b(a)(4)(A), UCMJ, as was substantially revised to implement Sec. 1702(d)(1), P.L. 113–66. created by Section 1701 of the National Article 60(c), UCMJ, as amended by (f) The existing analysis to Rule 405 Defense Authorization Act for Fiscal Section 1702 of the National Defense is removed and new analysis is inserted Year 2014, P.L. 113–66, 26 December Authorization Act for Fiscal Year 2014, to read as follows: 2013.’’ P.L. 113–66, 26 December 2013, and ‘‘2014 Amendment. This rule was (l) Rule 1001(a) is amended by applies to offenses occurring on or after substantially revised by Section 1702 of inserting the following at the end: 24 June 2014. For offenses occurring the National Defense Authorization Act ‘‘2014 Amendment: R.C.M. 1001(a)(1) prior to 24 June 2014, refer to prior for Fiscal Year 2014, P.L. 113–66, 26 was revised to implement Article versions of R.C.M. 1107(d).’’ December 2013. This new rule takes 6b(a)(4)(B), UCMJ, as created by Section (s) Rule 1107(f) is amended by effect on 26 December 2014. Sec. 1701 of the National Defense inserting the following at the end: 1702(d)(1), P.L. 113–66. For offenses Authorization Act for Fiscal Year 2014, ‘‘2014 Amendment: This subsection occurring prior to 26 December 2014, P.L. 113–66, 26 December 2013.’’ was revised to implement Article 60(c), refer to prior versions of R.C.M. 405. For (m) A new Analysis section is UCMJ, as amended by Section 1702 of Article 32 hearings covering offenses inserted for Rule 1001A and reads as the National Defense Authorization Act occurring both before and on or after 26 follows: for Fiscal Year 2014, P.L. 113–66, 26 December 2014, rules contained within ‘‘2014 Amendment. R.C.M. 1001A December 2013, and applies to offenses prior versions of R.C.M. 405 should be was added to implement Article occurring on or after 24 June 2014. For used for offenses before 26 December 6b(a)(4)(B), UCMJ, as created by Section offenses occurring prior to 24 June 2014,

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refer to prior versions of R.C.M. recommendation of the May 2013 report ‘‘For purposes of this rule, the term 1107(f).’’ of the Defense Legal Policy Board ‘‘victim of an alleged offense’’ means a (t) Rule 1108(b) is amended by (DLPB), Report of the Subcommittee on person who has suffered direct physical, inserting the following at the end: Military Justice in Combat Zones. The emotional, or pecuniary harm as a result ‘‘2014 Amendment: This subsection DLPB is a Federal Advisory Committee of the commission of an offense under was revised to implement Article 60(c), established to provide independent the UCMJ.’’ UCMJ, as amended by Section 1702 of advice to the Secretary of Defense. The (f) The discussion section following the National Defense Authorization Act DLPB subcommittee primarily focused R.C.M. 404(e) is amended to read as for Fiscal Year 2014, P.L. 113–66, 26 on civilian casualties in a deployed follows: December 2013, and applies to offenses environment, and the DLPB found that ‘‘A preliminary hearing should be occurring on or after 24 June 2014. For the maximum punishment for directed when it appears that the offenses occurring prior to 24 June 2014, dereliction of duty was not charges are of such a serious nature that refer to prior versions of R.C.M. commensurate with the potential trial by general court-martial may be 1108(b).’’ consequences of dereliction resulting in warranted. See R.C.M. 405. If a (u) Rule 1301(c) is amended by civilian casualties. The DLPB also found preliminary hearing of the subject inserting the following at the end: that the available punishment did not matter already has been conducted, see ‘‘2014 Amendment: This subsection make alternative dispositions to court- R.C.M. 405(b) and 405(e)(2).’’ was revised to implement Section 1705 martial a practical option because there (g) A new Discussion section is added of the National Defense Authorization was little incentive for an accused to immediately following R.C.M. 404A(d): Act for Fiscal Year 2014, P.L. 113–66, 26 accept these alternatives. This rule ‘‘The purposes of this rule are to December 2013, and applies to offenses expands on the recommendation of the provide the accused with the documents occurring on or after 24 June 2014. Sec. DLPB and includes elevated maximum used to make the determination to 1705(c), P.L. 113–66.’’ punishment for dereliction of duty that prefer charges and direct a preliminary Sec. 6. Appendix 22, Analysis of the results in death or grievous bodily harm hearing, and to allow the accused to Military Rules of Evidence is amended suffered by any person.’’ prepare for the preliminary hearing. as follows: Sec. 8. The Discussion to Part II of the This rule is not intended to be a tool for (a) Rule 412 is amended by inserting Manual for Courts-Martial, United discovery and does not impose the same the following at the end: States, is amended as follows: discovery obligations found in R.C.M. ‘‘2014 Amendment. Rule 412(c)(2) (a) The Discussion following R.C.M. 405 prior to amendments required by was revised in accordance with L.R.M. 201(a)(2) is amended to read as follows: the National Defense Authorization Act v. Kastenberg, 72 M.J. 364 (C.A.A.F. ‘‘Except insofar as required by the for Fiscal Year 2014 or R.C.M. 701. 2013).’’ Constitution, the Code, or the Manual, Additional rules for disclosure of (b) Rule 513 is amended by inserting such as persons listed under Article witnesses and other evidence in the the following at the end: 2(a)(10), jurisdiction of courts-martial preliminary hearing are provided in ‘‘2014 Amendment. Rule 513(e)(2) does not depend on where the offense R.C.M. 405(g).’’ was revised in accordance with L.R.M. was committed.’’ v. Kastenberg, 72 M.J. 364 (C.A.A.F. (h) A new Discussion section is added (b) A new Discussion section is added immediately after R.C.M. 405(a): 2013).’’ immediately following R.C.M. ‘‘The function of the preliminary (c) Rule 514 is amended by inserting 201(f)(2)(D): hearing is to ascertain and impartially the following at the end: ‘‘Pursuant to the National Defense weigh the facts needed for the limited ‘‘2014 Amendment. Rule 514(e)(2) Authorization Act for Fiscal Year 2014, scope and purpose of the preliminary was revised in accordance with L.R.M. only a general court-martial has hearing. The preliminary hearing is not v. Kastenberg, 72 M.J. 364 (C.A.A.F. jurisdiction over penetrative sex intended to perfect a case against the 2013). Rule 514 was also revised to offenses under Articles 120, 120b, and accused and is not intended to serve as protect communications made to the 125, UCMJ.’’ DoD Safe Helpline, which is a crisis (c) A new Discussion section is added a means of discovery or to provide a support service for victims of sexual immediately after R.C.M. right of confrontation required at trial. assault in the Department of Defense. 305(i)(2)(A)(iv): Determinations and recommendations The DoD Safe Helpline was established ‘‘Personal appearance by the victim is of the preliminary hearing officer are in 2011 under a contract with the Rape, not required. A victim’s right to be advisory. Abuse & Incest National Network.’’ reasonably heard at a 7-day review may Failure to substantially comply with (d) Rule 615 is amended by inserting also be accomplished telephonically, by the requirements of Article 32, which the following at the end: videoteleconference, or by written failure prejudices the accused, may ‘‘2014 Amendment: Rule 615(e) was statement.’’ result in delay in disposition of the case revised to implement Section 1701 of (d) A new Discussion section is added or disapproval of the proceedings. See the National Defense Authorization Act immediately after R.C.M. 305(j)(1)(C): R.C.M. 905(b)(1) and 906(b)(3) for Fiscal Year 2014, P.L. 113–66, 26 ‘‘Upon a motion for release from concerning motions for appropriate December 2013.’’ pretrial confinement, a victim of an relief relating to the preliminary Sec. 7. Appendix 23, Analysis of alleged offense committed by the hearing. Punitive Articles is amended as follows: prisoner has the right to reasonable, The accused may waive the Paragraph 16, Article 92—Failure to accurate, and timely notice of the preliminary hearing. See subsection (k) obey order or regulation, is amended by motion and any hearing, the right to of this rule. In such case, no preliminary inserting the following at the end: consult with counsel representing the hearing need be held. However, the ‘‘2014 Amendment. Subsection b(3) government, and the right to be convening authority authorized to direct was amended to increase the reasonably heard. Inability to reasonably the preliminary hearing may direct that punishment for dereliction of duty afford a victim these rights shall not it be conducted notwithstanding the when such dereliction results in delay the proceedings.’’ waiver.’’ grievous bodily harm or death. (e) A new Discussion section is added (i) A new Discussion section is added Subsection b(3)(d) incorporates a immediately after R.C.M. 305(n): immediately after R.C.M. 405(d)(1):

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‘‘The preliminary hearing officer, if Department of Defense Joint Travel finds that evidence offered by either not a judge advocate, should be an Regulations.’’ party is not within the scope of the officer in the grade of O-4 or higher. The (n) A new Discussion section is added hearing, he shall inform the parties and preliminary hearing officer may seek immediately after R.C.M. halt the presentation of that legal advice concerning the preliminary 405(g)(3)(B)(iii): information.’’ hearing officer’s responsibilities from an ‘‘A subpoena duces tecum to produce (q) A new Discussion section is added impartial source, but may not obtain books, papers, documents, data, immediately after R.C.M. 405(i)(3)(A): such advice from counsel for any party electronically stored information, or ‘‘The following oath may be given to or counsel for a victim.’’ other objects for a preliminary hearing witnesses: (j) A new Discussion section is added pursuant to Article 32 may be issued by ‘‘Do you (swear) (affirm) that the immediately after R.C.M. 405(e)(2): counsel for the government. The evidence you give shall be the truth, the ‘‘Except as set forth in subsection (h) preliminary hearing officer has no whole truth, and nothing but the truth below, the Mil. R. Evid. do not apply at authority to issue a subpoena duces (so help you God)?’’ a preliminary hearing. Except as tecum. However, the preliminary The preliminary hearing officer is prohibited elsewhere in this rule, a hearing officer may direct counsel for required to include in the report of the preliminary hearing officer may the government to issue a subpoena preliminary hearing a summary of the consider evidence, including hearsay, duces tecum for defense-requested substance of all testimony. See which would not be admissible at trial.’’ evidence.’’ subsection (j)(2)(B) of this rule. After the (o) A new Discussion section is added (k) A new Discussion section is added hearing, the preliminary hearing officer immediately after R.C.M. 405(h)(5): immediately after R.C.M. 405(f)(2)(G): ‘‘Before considering evidence offered should, whenever possible, reduce the ‘‘Unsworn statements by the accused, under subsection (h)(2), the preliminary substance of the testimony of each unlike those made under R.C.M. hearing officer must determine that the witness to writing. 1001(c)(2), shall be limited to matters in evidence offered is relevant for the All substantially verbatim notes of defense and mitigation.’’ limited scope and purpose of the testimony and recordings of testimony (l) A new Discussion section is added hearing, that the evidence is proper should be preserved until the end of immediately after R.C.M. 405(g)(1)(C): under subsection (h)(2), and that the trial. ‘‘A commanding officer’s probative value of such evidence If during the preliminary hearing any determination of whether an individual outweighs the danger of unfair prejudice witness subject to the Code is suspected is available, as well as the means by to the alleged victim’s privacy. The of an offense under the Code, the which the individual is available, is a preliminary hearing officer shall set preliminary hearing officer should balancing test. The more important the forth any limitations on the scope of comply with the warning requirements testimony of the witness, the greater the such evidence. of Mil. R. Evid. 305(c), (d), and, if difficulty, expense, delay, or effect on Evidence offered under subsection necessary (e). military operations must be to deny (h)(2) above must be protected pursuant Bearing in mind that counsel are production of the witness. Based on to the Privacy Act of 1974, 5 U.S.C. responsible for preparing and presenting operational necessity and mission § 552a. Although Mil. R. Evid. their cases, the preliminary hearing requirements, the witness’s 412(b)(1)(C) allows admission of officer may ask a witness questions commanding officer may authorize the evidence of the victim’s sexual behavior relevant to the limited scope and witness to testify by video conference, or predisposition at trial when it is purpose of the hearing. When telephone, or similar means of remote constitutionally required, there is no questioning a witness, the preliminary testimony. Factors to be considered in constitutional requirement at an Article hearing officer may not depart from an making this determination include the 32 hearing. There is likewise no impartial role and become an advocate costs of producing the witness; the constitutional requirement for a pretrial for either side.’’ timing of the request for production of hearing officer to consider evidence (r) A new Discussion section is added the witness; the potential delay in the under Mil. R. Evid. 513(d)(8), and immediately after R.C.M. 405(i)(6): proceeding that may be caused by the 514(d)(6) at an Article 32 hearing. ‘‘Counsel for the government shall production of the witness; and the Evidence deemed admissible by the provide victims with access to, or a likelihood of significant interference preliminary hearing officer should be copy of, the recording of the with operational deployment, mission made a part of the report of preliminary proceedings in accordance with such accomplishment, or essential training.’’ hearing. See subsection (j)(2)(C), infra. regulations as the Secretary concerned (m) A new Discussion section is Evidence not considered, and the may prescribe.’’ added immediately after R.C.M. testimony taken during a closed hearing, (s) A new Discussion section is added 405(g)(2)(C): should not be included in the report of immediately after R.C.M. 405(j)(1): ‘‘Factors to be considered in making preliminary hearing but should be ‘‘If practicable, the charges and the this determination include the costs of appropriately safeguarded or sealed. report of preliminary hearing should be producing the witness; the timing of the The preliminary hearing officer and forwarded to the general court-martial request for production of the witness; counsel representing the government are convening authority within 8 days after the potential delay in the proceeding responsible for careful handling of any an accused is ordered into arrest or that may be caused by the production of such evidence to prevent unauthorized confinement. See Article 33, UCMJ.’’ the witness; the willingness of the viewing or disclosure.’’ (t) A new Discussion section is added witness to testify in person; and, for (p) A new Discussion section is added immediately after R.C.M. 405(j)(2)(K): child witnesses, the traumatic effect of immediately after R.C.M. 405(i)(1): ‘‘The preliminary hearing officer may providing in-person testimony. Civilian ‘‘A preliminary hearing officer may include any additional matters useful to witnesses may not be compelled to only consider evidence within the the convening authority in determining provide testimony at a preliminary limited purpose of the preliminary disposition. The preliminary hearing hearing. Civilian witnesses may be paid hearing and shall ensure that the scope officer may recommend that the charges for travel and associated expenses to of the hearing is limited to that purpose. and specifications be amended or that testify at a preliminary hearing. See When the preliminary hearing officer additional charges be preferred. See

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R.C.M. 306 and 401 concerning other specific appointment; and any other ‘‘A motion for severance is a request possible dispositions.’’ relevant information.’’ that one or more accused against whom (u) A new Discussion section is added (x) A new Discussion section is added charges have been referred to a joint or immediately after R.C.M. 405(k): immediately after R.C.M. 801(a)(6)(B)(i): common trial be tried separately. Such ‘‘See also R.C.M. 905(b)(1); 906(b)(3). ‘‘In the event a case involves multiple a request should be granted if good The convening authority who receives victims who are entitled to notice under cause is shown. For example, a an objection may direct that the this rule, each victim is only entitled to severance may be appropriate when: the preliminary hearing be reopened or take notice relating to their own designated moving party wishes to use the other action, as appropriate.’’ representative.’’ testimony of one or more of the (v) A new Discussion section is added (y) A new Discussion section is added coaccused or the spouse of a coaccused; immediately after R.C.M. 601(g): immediately after R.C.M. 801(a)(6)(D): a defense of a coaccused is antagonistic ‘‘Parallel convening authorities are ‘‘The term ‘‘victim of an offense under to the moving party; or evidence as to those convening authorities that possess the UCMJ’’ means a person who has any other accused will improperly the same court-martial jurisdiction suffered direct physical, emotional, or prejudice the moving accused. authority. Examples of permissible pecuniary harm as a result of the If a severance is granted by the transmittal of charges under this rule commission of an offense under the military judge, the military judge will include the transmittal from a general UCMJ. ‘‘Good Cause’’ means adequate or decide which accused will be tried first. court-martial convening authority to reasonable grounds to believe that the See R.C.M. 801(a)(1). In the case of joint another general court-martial convening individual appointed to assume the charges, the military judge will direct an authority, or from one special court- victim’s rights is not acting or does not appropriate amendment of the charges martial convening authority to another intend to act in the best interest of the and specifications. special court-martial convening victim.’’ See also R.C.M. 307(c)(5); 601(e)(3); authority. It would be impracticable for (z) The Discussion section following 604; 812.’’ an original convening authority to R.C.M. 806(b)(1) is amended to read as (bb) A new Discussion section is continue exercising authority over the follows: added immediately after R.C.M. charges, for example, when a command ‘‘The military judge must ensure that 1103A(b)(3): is being decommissioned or inactivated, the dignity and decorum of the ‘‘A convening authority who has or when deploying or redeploying and proceedings are maintained and that the granted clemency based upon review of the accused is remaining behind. If other rights and interests of the parties sealed materials in the record of trial is charges have been referred, there is no and society are protected. Public access not permitted to disclose the contents of requirement that the charges be to a session may be limited, specific the sealed materials when providing a withdrawn or dismissed prior to persons excluded from the courtroom, written explanation of the reason for transfer. See R.C.M. 604. In the event and, under unusual circumstances, a such action, as directed under R.C.M. that the case has been referred, the session may be closed. 1107.’’ (cc) The Discussion section following receiving convening authority may Exclusion of specific persons, if R.C.M. 1106(d)(3) is amended to read as adopt the original court-martial unreasonable under the circumstances, follows: convening order, including the court- may violate the accused’s right to a ‘‘The recommendation required by martial panel selected to hear the case public trial, even though other this rule need not include information as indicated in that convening order. spectators remain. Whenever specific regarding other recommendations for When charges are transmitted under this persons or some members of the public clemency. It may include a summary of rule, no recommendation as to are excluded, exclusion must be limited clemency actions authorized under disposition may be made.’’ in time and scope to the minimum R.C.M. 1107. See R.C.M. 1105(b)(2)(D) (w) A new Discussion section is extent necessary to achieve the purpose (pertaining to clemency added immediately after R.C.M. for which it is ordered. Prevention of recommendations that may be 801(a)(6)(A): overcrowding or noise may justify submitted by the accused to the ‘‘The rights that a designee may limiting access to the courtroom. convening authority).’’ exercise on behalf of a victim include Disruptive or distracting appearance or (dd) The Discussion section the right to receive notice of public conduct may justify excluding specific immediately following R.C.M. 1107(c) is hearings in the case; the right to be persons. Specific persons may be deleted. reasonably heard at such hearings, if excluded when necessary to protect (ee) A new Discussion section is permitted by law; and the right to confer witnesses from harm or intimidation. added immediately after R.C.M. with counsel representing the Access may be reduced when no other 1107(d)(1)(E)(i): government at such hearings. The means is available to relieve a witness’ ‘‘The phrase ‘‘investigation or designee may also be the custodial inability to testify due to embarrassment prosecution of another person who has guardian of the child. or extreme nervousness. Witnesses will committed an offense’’ includes offenses When determining whom to appoint ordinarily be excluded from the under the UCMJ or other Federal, State, under this rule, the military judge may courtroom so that they cannot hear the local, or foreign criminal statutes.’’ consider the following: the age and testimony of other witnesses. See Mil. R. (ff) The Discussion section maturity, relationship to the victim, and Evid. 615. immediately following R.C.M. physical proximity of any proposed For purposes of this rule, the term 1107(d)(1) is deleted. designee; the costs incurred in effecting ‘‘victim of an alleged offense’’ means a (gg) A new Discussion section is the appointment; the willingness of the person who has suffered direct, added immediately after R.C.M. proposed designee to serve in such a physical, emotional, or pecuniary harm 1107(d)(1)(F): role; the previous appointment of a as a result of the commission of an ‘‘A sentence adjudged by a court- guardian by another court of competent offense under the UCMJ.’’ martial may be approved if it was jurisdiction; the preference of the (aa) The discussion section following within the jurisdiction of the court- victim; any potential delay in any R.C.M. 906(b)(9) is amended to read as martial to adjudge (see R.C.M. 201(f)) proceeding that may be caused by a follows: and did not exceed the maximum limits

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prescribed in Part IV and Chapter X of (kk) The Discussion sections to R.C.M. (a) The law of war; or this Part for the offense(s) of which the 406(b)(4), R.C.M. 503(a)(1), and (b) The law of the territory occupied as an accused legally has been found guilty. 707(c)(1) are amended by changing incident of war or belligerency whenever the When mitigating forfeitures, the ‘‘investigating officer’’ to ‘‘preliminary local civil authority is superseded in whole hearing officer’’ for offenses occurring or part by the military authority of the duration and amounts of forfeiture may occupying power. The law of the occupied be changed as long as the total amount on or after 26 December 2014. territory includes the local criminal law as forfeited is not increased and neither the (ll) The Discussion section to R.C.M. adopted or modified by competent authority, amount nor duration of the forfeitures 701(a)(6)(c) is amended by changing and the proclamations, ordinances, exceeds the jurisdiction of the court- ‘‘report of Article 32 investigation’’ to regulations, or orders promulgated by martial. When mitigating confinement ‘‘report of Article 32 preliminary competent authority of the occupying power. hearing’’ for offenses occurring on or or hard labor without confinement, the Discussion convening authority should use the after 26 December 2014. (mm) The Discussion section to Subsection (f)(1)(B)(i)(b) is an exercise of equivalencies at R.C.M. 1003(b)(5)–(6), the power of military government. as appropriate. R.C.M. 705(d)(2) and R.C.M. 919(b) are amended by changing ‘‘Article 32 (ii) When a general court-martial exercises Unless prohibited by this rule, the jurisdiction under the law of war, it may convening authority may disapprove, investigation’’ to ‘‘Article 32 adjudge any punishment permitted by the mitigate or change to a less severe preliminary hearing’’ for offenses law of war. punishment any individual component occurring on or after 26 December 2014. Sec. 9. The Discussion to Part IV of Discussion of a sentence. For example, if an the Manual for Courts-Martial, United Certain limitations on the discretion of accused is found guilty of assault States, is amended as follows: military tribunals to adjudge punishment consummated by a battery and A new Discussion section is added under the law of war are prescribed in sentenced to a bad-conduct discharge, immediately following Paragraph 16, international conventions. See, for example, three months of confinement, and Article 92—Failure to obey order or Geneva Convention Relative to the Protection reduction to E–1, without a pre-trial regulation, subsection e(3)(d): of Civilian Persons in Time of War, Aug. 12, agreement and without being able to ‘‘If the dereliction of duty resulted in 1949, art. 68, 6 U.S.T. 3516, T.I.A.S. No. 3365. apply the substantial assistance death, the accused may also be charged exception, the convening authority may (C) Limitations in judge alone cases. A under Article 119 or Article 134 general court-martial composed only of a disapprove or reduce any part of the (negligent homicide), as applicable.’’ sentence except the bad-conduct military judge does not have jurisdiction to Sec. 10. A new appendix, Appendix try any person for any offense for which the discharge.’’ 29 is inserted to read as follows: death penalty may be adjudged unless the (hh) The Discussion section following case has been referred to trial as noncapital. R.C.M. 1107(d)(2) is amended to read as ‘‘Appendix 29 (2) Special courts-martial. follows: Rules for Courts-Martial Applicable to (A) In general. Except as otherwise ‘‘In determining what sentence should Offenses Committed Before 24 June expressly provided, special courts-martial be approved, the convening authority 2014 may try any person subject to the code for should consider all relevant and any noncapital offense made punishable by The Rules for Courts-Martial in this permissible factors including the the code and, as provided in this rule, for appendix were revised to implement capital offenses. possibility of rehabilitation, the Sections 1705, and 1706 of the National (B) Punishments. deterrent effect of the sentence, and all Defense Authorization Act for Fiscal Year (i) Upon a finding of guilty, special courts- matters relating to clemency, such as 2014, Public Law 113–66, 26 December 2013. martial may adjudge, under limitations pretrial confinement. See also R.C.M. For offenses committed before 24 June 2014, prescribed by this Manual, any punishment 1001–1004. the relevant Rules for Courts-Martial are authorized under R.C.M. 1003 except death, When an accused is not serving contained in this appendix and listed below. dishonorable discharge, dismissal, confinement, the accused should not be Rule 201. Jurisdiction in General confinement for more than 1 year, hard labor deprived of more than two-thirds pay without confinement for more than 3 months, (f) Types of courts-martial. forfeiture of pay exceeding two-thirds pay for any month as a result of one or more (1) General courts-martial. per month, or any forfeiture of pay for more (A) Cases under the code. sentences by court-martial and other than 1 year. (i) Except as otherwise expressly provided, stoppages or involuntary deductions, (ii) A bad-conduct discharge, confinement general courts-martial may try any person unless requested by the accused. Since for more than six months, or forfeiture of pay court-martial forfeitures constitute a loss subject to the code for any offense made punishable under the code. General courts- for more than six months, may not be of entitlement of the pay concerned, martial also may try any person for a adjudged by a special court-martial unless: they take precedence over all debts.’’ violation of Article 83, 104, or 106. (a) Counsel qualified under Article 27(b) is (ii) The Discussion section following (ii) Upon a finding of guilty of an offense detailed to represent the accused; and R.C.M. 1107(d)(1)(E)(i) is amended to made punishable by the code, general courts- (b) A military judge is detailed to the trial, read as follows: martial may, within limits prescribed by this except in a case in which a military judge Manual, adjudge any punishment authorized could not be detailed because of physical ‘‘The phrase ‘‘investigation or conditions or military exigencies. Physical prosecution of another person who has under R.C.M. 1003. (iii) Notwithstanding any other rule, the conditions or military exigencies, as the committed an offense’’ includes offenses death penalty may not be adjudged if: terms are here used, may exist under rare under the UCMJ or other Federal, State, (a) Not specifically authorized for the circumstances, such as on an isolated ship on local, or foreign criminal statutes.’’ offenses by the code and Part IV of this the high seas or in a unit in an inaccessible (jj) A new Discussion section is added Manual; or area, provided compelling reasons exist why immediately after R.C.M. 1301(c)(2): (b) The case has not been referred with a trial must be held at that time and at that ‘‘Pursuant to the National Defense special instruction that the case is to be tried place. Mere inconvenience does not constitute a physical condition or military Authorization Act for Fiscal Year 2014, as capital. (B) Cases under the law of war. exigency and does not excuse a failure to only a general court-martial has (i) General courts-martial may try any detail a military judge. If a military judge jurisdiction to try penetrative sex person who by the law of war is subject to cannot be detailed because of physical offenses under Articles 120, 120b, and trial by military tribunal for any crime or conditions or military exigencies, a bad- 125, UCMJ.’’ offense against: conduct discharge, confinement for more

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than six months, or forfeiture of pay for more sentence is within the sole discretion of the intelligently in the post-trial proceedings. If than six months, may be adjudged provided convening authority. Determining what a substantial question is raised as to the the other conditions have been met. In that action to take on the findings and sentence requisite mental capacity of the accused, the event, however, the convening authority of a court-martial is a matter of command convening authority may direct an shall, prior to trial, make a written statement prerogative. The convening authority is not examination of the accused in accordance explaining why a military judge could not be required to review the case for legal errors or with R.C.M. 706 before deciding whether the obtained. This statement shall be appended factual sufficiency. accused lacks mental capacity, but the to the record of trial and shall set forth in examination may be limited to determining Discussion detail the reasons why a military judge could the accused’s present capacity to understand not be detailed, and why the trial had to be The action is taken in the interests of and cooperate in the post-trial proceedings. held at that time and place. justice, discipline, mission requirements, The convening authority may approve the clemency, and other appropriate reasons. If Discussion sentence unless it is established, by a errors are noticed by the convening authority, preponderance of the evidence—including See R.C.M. 503 concerning detailing the the convening authority may take corrective matters outside the record of trial—that the military judge and counsel. action under this rule. accused does not have the requisite mental The requirement for counsel is satisfied (2) When action may be taken. The capacity. Nothing in this subsection shall when counsel qualified under Article 27(b), convening authority may take action only prohibit the convening authority from and not otherwise disqualified, has been after the applicable time periods under disapproving the findings of guilty and detailed and made available, even though the R.C.M. 1105(c) have expired or the accused sentence. accused may not choose to cooperate with, or has waived the right to present matters under (c) Action on findings. Action on the use the services of, such detailed counsel. R.C.M. 1105(d), whichever is earlier, subject findings is not required. However, the The physical condition or military to regulations of the Secretary concerned. convening authority may, in the convening exigency exception to the requirement for a (3) Matters considered. authority’s sole discretion: military judge does not apply to the (A) Required matters. Before taking action, requirement for detailing counsel qualified (1) Change a finding of guilty to a charge the convening authority shall consider: or specification to a finding of guilty to an under Article 27(b). (i) The result of trial; See also R.C.M. 1103(c) concerning the offense that is a lesser included offense of the requirements for a record of trial in special Discussion offense stated in the charge or specification; or courts-martial. See R.C.M. 1101(a). (2) Set aside any finding of guilty and— (C) Capital offenses (ii) The recommendation of the staff judge (i) A capital offense for which there is (A) Dismiss the specification and, if advocate or legal officer under R.C.M. 1106, appropriate, the charge, or prescribed a mandatory punishment beyond if applicable; and the punitive power of a special court-martial (B) Direct a rehearing in accordance with (iii) Any matters submitted by the accused subsection (e) of this rule. shall not be referred to such a court-martial. under R.C.M. 1105 or, if applicable, (ii) An officer exercising general court- Discussion martial jurisdiction over the command which R.C.M. 1106(f). includes the accused may permit any capital (B) Additional matters. Before taking The convening authority may for any offense other than one described in action the convening authority may consider: reason or no reason disapprove a finding of subsection (f)(2)(C)(i) of this rule to be (i) The record of trial; guilty or approve a finding of guilty only of referred to a special court-martial for trial. (ii) The personnel records of the accused; a lesser offense. However, see subsection (e) (iii) The Secretary concerned may and of this rule if a rehearing is ordered. The authorize, by regulation, officers exercising (iii) Such other matters as the convening convening authority is not required to review special court-martial jurisdiction to refer authority deems appropriate. However, if the the findings for legal or factual sufficiency capital offenses, other than those described convening authority considers matters and is not required to explain a decision to in subsection (f)(2)(C)(i) of this rule, to trial adverse to the accused from outside the order or not to order a rehearing, except as by special court-martial without first record, with knowledge of which the accused provided in subsection (e) of this rule. The obtaining the consent of the officer exercising is not chargeable, the accused shall be power to order a rehearing, or to take other general court-martial jurisdiction over the notified and given an opportunity to rebut. corrective action on the findings, is designed command. (4) When proceedings resulted in finding of solely to provide an expeditious means to not guilty or not guilty only by reason of lack correct errors that are identified in the course Discussion of mental responsibility, or there was a ruling of exercising discretion under the rule. See R.C.M. 103(3) for a definition of capital amounting to a finding of not guilty. The (d) Action on the sentence. offenses. convening authority shall not take action (1) In general. The convening authority (3) Summary courts-martial. See R.C.M. disapproving a finding of not guilty, a finding may for any or no reason disapprove a legal 1301(c) and (d)(1). of not guilty only by reason of lack of mental sentence in whole or in part, mitigate the responsibility, or a ruling amounting to a sentence, and change a punishment to one of Rule 1105. Matters Submitted by the finding of not guilty. When an accused is a different nature as long as the severity of Accused found not guilty only by reason of lack of the punishment is not increased. The (b) Matters which may be submitted. mental responsibility, the convening convening or higher authority may not (1) The accused may submit to the authority, however, shall commit the accused increase the punishment imposed by a court- convening authority any matters that may to a suitable facility pending a hearing and martial. The approval or disapproval shall be reasonably tend to affect the convening disposition in accordance with R.C.M. explicitly stated. authority’s decision whether to disapprove 1102A. any findings of guilty or to approve the Discussion sentence. The convening authority is only Discussion A sentence adjudged by a court-martial required to consider written submissions. Commitment of the accused to the custody may be approved if it was within the (2) Submissions are not subject to the of the Attorney General for hospitalization is jurisdiction of the court-martial to adjudge Military Rules of Evidence and may include: discretionary. (see R.C.M. 201(f)) and did not exceed the * * * * * (5) Action when accused lacks mental maximum limits prescribed in Part IV and (C) Matters in mitigation which were not capacity. The convening authority may not Chapter X of this Part for the offense(s) of available for consideration at the court- approve a sentence while the accused lacks which the accused legally has been found martial; and mental capacity to understand and to guilty. conduct or cooperate intelligently in the When mitigating forfeitures, the duration Rule 1107. Action by Convening Authority post-trial proceedings. In the absence of and amounts of forfeiture may be changed as (b) General considerations. substantial evidence to the contrary, the long as the total amount forfeited is not (1) Discretion of convening authority. The accused is presumed to have the capacity to increased and neither the amount nor action to be taken on the findings and understand and to conduct or cooperate duration of the forfeitures exceeds the

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jurisdiction of the court-martial. When meet the requirements of R.C.M. (iv) Sentence reassessment. If a superior mitigating confinement or hard labor without 1103(b)(2)(B) or (c)(1), the convening authority has approved some of the findings confinement, the convening authority should authority may not approve a sentence in of guilty and has authorized a rehearing as use the equivalencies at R.C.M. 1003(b)(5) excess of that which may be adjudged by a to other offenses and the sentence, the and (6), as appropriate. One form of special court-martial, or one that includes a convening authority may, unless otherwise punishment may be changed to a less severe bad-conduct discharge, confinement for more directed, reassess the sentence based on the punishment of a different nature, as long as than six months, forfeiture of pay exceeding approved findings of guilty and dismiss the the changed punishment is one that the two-thirds pay per month, or any forfeiture remaining charges. Reassessment is court-martial could have adjudged. For of pay for more than six months. appropriate only where the convening authority determines that the accused’s example, a bad-conduct discharge adjudged Discussion by a special court-martial could be changed sentence would have been at least of a certain to confinement for up to one year (but not See also R.C.M. 1103(f). magnitude had the prejudicial error not been vice versa). A pretrial agreement may also (5) Limitations on sentence of a special committed and the reassessed sentence is affect what punishments may be changed by court-martial where a fine has been appropriate in relation to the affirmed the convening authority. adjudged. A convening authority may not findings of guilty. See also R.C.M. 810(d) concerning approve in its entirety a sentence adjudged (C) Limitations. sentence limitations upon a rehearing or new at a special court-martial when, if approved, (i) Sentence approved. A rehearing shall or other trial. the cumulative impact of the fine and not be ordered if, in the same action, a (2) Determining what sentence should be forfeitures, whether adjudged or by operation sentence is approved. approved. The convening authority shall of Article 58b, would exceed the (ii) Lack of sufficient evidence. A rehearing approve that sentence which is warranted by jurisdictional maximum dollar amount of may not be ordered as to findings of guilty the circumstances of the offense and forfeitures that may be adjudged at that court- when there is a lack of sufficient evidence in appropriate for the accused. When the court- martial. the record to support the findings of guilty martial has adjudged a mandatory (e) Ordering rehearing or other trial. of the offense charged or of any lesser punishment, the convening authority may (1) Rehearing. included offense. A rehearing may be nevertheless approve a lesser sentence. (A) In general. Subject to subsections ordered, however, if the proof of guilt (e)(1)(B) through (e)(1)(E) of this rule, the consisted of inadmissible evidence for which Discussion convening authority may in the convening there is available an admissible substitute. A In determining what sentence should be authority’s discretion order a rehearing. A rehearing may be ordered as to any lesser approved the convening authority should rehearing may be ordered as to some or all offense included in an offense of which the consider all relevant factors including the offenses of which findings of guilty were accused was found guilty, provided there is possibility of rehabilitation, the deterrent entered and the sentence, or as to sentence sufficient evidence in the record to support effect of the sentence, and all matters relating only. the lesser included offense. to clemency, such as pretrial confinement. Discussion Discussion See also R.C.M. 1001 through 1004. A rehearing may be appropriate when an When an accused is not serving For example, if proof of absence without error substantially affecting the findings or leave was by improperly authenticated confinement, the accused should not be sentence is noticed by the convening documentary evidence admitted over the deprived of more than two-thirds pay for any authority. The severity of the findings or the objection of the defense, the convening month as a result of one or more sentences sentence of the original court-martial may not authority may disapprove the findings of by court-martial and other stoppages or be increased at a rehearing unless the guilty and sentence and order a rehearing if involuntary deductions, unless requested by sentence prescribed for the offense is there is reason to believe that properly the accused. Since court-martial forfeitures mandatory. See R.C.M. 810(d). If the accused authenticated documentary evidence or other constitute a loss of entitlement of the pay is placed under restraint pending a rehearing, admissible evidence of guilt will be available concerned, they take precedence over all see R.C.M. 304; 305. at the rehearing. On the other hand, if no debts. (B) When the convening authority may proof of unauthorized absence was (3) Deferring service of a sentence to order a rehearing. The convening authority confinement. may order a rehearing: introduced at trial, a rehearing may not be (A) In a case in which a court-martial (i) When taking action on the court-martial ordered. sentences an accused referred to in under this rule; (iii) Rehearing on sentence only. A subsection (B), below, to confinement, the (ii) In cases subject to review by the Court rehearing on sentence only shall not be convening authority may defer service of a of Criminal Appeals, before the case is referred to a different kind of court-martial sentence to confinement by a court-martial, forwarded under R.C.M. 1111(a)(1) or (b)(1), from that which made the original findings. without the consent of the accused, until but only as to any sentence which was If the convening authority determines a after the accused has been permanently approved or findings of guilty which were rehearing on sentence is impracticable, the released to the armed forces by a state or not disapproved in any earlier action. In such convening authority may approve a sentence foreign country. a case, a supplemental action disapproving of no punishment without conducting a (B) Subsection (A) applies to an accused the sentence and some or all of the findings, rehearing. who, while in custody of a state or foreign as appropriate, shall be taken; or (D) Additional charges. Additional charges country, is temporarily returned by that state (iii) When authorized to do so by superior may be referred for trial together with charges or foreign country to the armed forces for competent authority. If the convening as to which a rehearing has been directed. trial by court-martial; and after the court- authority finds a rehearing as to any offenses (E) Lesser included offenses. If at a martial, is returned to that state or foreign impracticable, the convening authority may previous trial the accused was convicted of country under the authority of a mutual dismiss those specifications and, when a lesser included offense, a rehearing may be agreement or treaty, as the case may be. appropriate, charges. ordered only as to that included offense or (C) As used in subsection (d)(3), the term as to an offense included in that found. If, ‘‘state’’ means a state of the United States, the Discussion however, a rehearing is ordered improperly District of Columbia, a territory, and a A sentence rehearing, rather than a on the original offense charged and the possession of the United States. reassessment, may be more appropriate in accused is convicted of that offense at the cases where a significant part of the rehearing, the finding as to the lesser Discussion government’s case has been dismissed. The included offense of which the accused was The convening authority’s decision to convening authority may not take any actions convicted at the original trial may postpone service of a court-martial sentence inconsistent with directives of superior nevertheless be approved. to confinement normally should be reflected competent authority. Where that directive is (2) ‘‘Other’’ trial. The convening or higher in the action. unclear, appropriate clarification should be authority may order an ‘‘other’’ trial if the (4) Limitations on sentence based on sought from the authority issuing the original original proceedings were invalid because of record of trial. If the record of trial does not directive. lack of jurisdiction or failure of a

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specification to state an offense. The See subsection (c) of this rule. combined with a trial on additional offenses authority ordering an ‘‘other’’ trial shall state (4) Action on sentence. and except as otherwise provided in R.C.M. in the action the basis for declaring the (A) In general. The action shall state 810(d), if any part of the original sentence proceedings invalid. whether the sentence adjudged by the court- was suspended and the suspension was not (f) Contents of action and related matters. martial is approved. If only part of the properly vacated before the order directing (1) In general. The convening authority sentence is approved, the action shall state the rehearing, the convening authority shall shall state in writing and insert in the record which parts are approved. A rehearing may take the necessary suspension action to of trial the convening authority’s decision as not be directed if any sentence is approved. prevent an increase in the same type of to the sentence, whether any findings of punishment as was previously suspended. guilty are disapproved, and orders as to Discussion The convening authority may approve a further disposition. The action shall be See Appendix 16 for forms. sentence adjudged upon a rehearing or other signed personally by the convening See R.C.M. 1108 concerning suspension of trial regardless whether any kind or amount authority. The convening authority’s sentences. of the punishment adjudged at the former authority to sign shall appear below the See R.C.M. 1113 concerning execution of trial has been served or executed. However, signature. sentences. in computing the term or amount of Discussion (B) Execution; suspension. The action shall punishment to be actually served or executed indicate, when appropriate, whether an under the new sentence, the accused shall be See Appendix 16 for forms. approved sentence is to be executed or credited with any kind or amount of the (2) Modification of initial action. The whether the execution of all or any part of former sentence included within the new convening authority may recall and modify the sentence is to be suspended. No reasons sentence that was served or executed before any action taken by that convening authority need be stated. the time it was disapproved or set aside. The at any time before it has been published or (C) Place of confinement. If the convening convening authority shall, if any part of a before the accused has been officially authority orders a sentence of confinement sentence adjudged upon a rehearing or other notified. The convening authority may also into execution, the convening authority shall trial is approved, direct in the action that any recall and modify any action at any time designate the place of confinement in the part or amount of the former sentence served prior to forwarding the record for review, as action, unless otherwise prescribed by the or executed between the date it was adjudged long as the modification does not result in Secretary concerned. If a sentence of and the date it was disapproved or set aside action less favorable to the accused than the confinement is ordered into execution after shall be credited to the accused. If, in the earlier action. In addition, in any special the initial action of the convening authority, action on the record of a rehearing, the court-martial, the convening authority may the authority ordering the execution shall convening authority disapproves the findings recall and correct an illegal, erroneous, designate the place of confinement unless of guilty of all charges and specifications incomplete, or ambiguous action at any time otherwise prescribed by the Secretary which were tried at the former hearing and before completion of review under R.C.M. concerned. that part of the sentence which was based on 1112, as long as the correction does not result these findings, the convening authority shall, Discussion in action less favorable to the accused than unless a further rehearing is ordered, provide the earlier action. When so directed by a See R.C.M. 1113(e)(2)(C) concerning the in the action that all rights, privileges, and higher reviewing authority or the Judge place of confinement. property affected by any executed portion of Advocate General, the convening authority (D) Custody or confinement pending the sentence adjudged at the former hearing shall modify any incomplete, ambiguous, appellate review; capital cases. When a shall be restored. The convening authority void, or inaccurate action noted in review of record of trial involves an approved sentence shall take the same restorative action if a the record of trial under Article 64, 66, 67, to death, the convening authority shall, court-martial at a rehearing acquits the or examination of the record of trial under unless any approved sentence of confinement accused of all charges and specifications Article 69. The convening authority shall has been ordered into execution and a place which were tried at the former hearing. personally sign any supplementary or of confinement designated, provide in the (B) New trial. The action of the convening corrective action. action for the temporary custody or authority on a new trial shall, insofar as Discussion confinement of the accused pending final practicable, conform to the rules prescribed disposition of the case on appellate review. for rehearings and other trials in subsection For purposes of this rule, a record is (E) Deferment of service of sentence to (f)(5)(A) of this rule. considered to have been forwarded for confinement. Whenever the service of the review when the convening authority has sentence to confinement is deferred by the Discussion either delivered it in person or has entrusted convening authority under R.C.M. 1101(c) See R.C.M. 810 for procedures at other trials. it for delivery to a third party over whom the before or concurrently with the initial action convening authority exercises no lawful In approving a sentence not in excess of or in the case, the action shall include the date control (e.g., the United States Postal more severe than one previously approved on which the deferment became effective. Service). (see R.C.M. 810(d)), a convening authority is The reason for the deferment need not be (3) Findings of guilty. If any findings of prohibited from approving a punitive stated in the action. guilty are disapproved, the action shall so discharge more severe than one formerly (F) Credit for illegal pretrial confinement. state. If a rehearing is not ordered, the approved, e.g., a convening authority is affected charges and specifications shall be When the military judge has directed that the prohibited from approving a dishonorable dismissed by the convening authority in the accused receive credit under R.C.M. 305(k), discharge if a bad conduct discharge had action. If a rehearing or other trial is directed the convening authority shall so direct in the formerly been approved. Otherwise, in the reasons for the disapproval shall be set action. approving a sentence not in excess of or more forth in the action. (G) Reprimand. The convening authority severe than one previously imposed, a shall include in the action any reprimand convening authority is not limited to Discussion which the convening authority has ordered approving the same or lesser type of ‘‘other If a rehearing or other trial is not directed, executed. punishments’’ formerly approved. the reasons for disapproval need not be Discussion Rule 1108. Suspension of Execution of stated in the action, but they may be when Sentence; Remission appropriate. It may be appropriate to state See R.C.M. 1003(b)(1) concerning them when the reasons may affect reprimands. (b) Who may suspend and remit. The administrative disposition of the accused; for (5) Action on rehearing or new or other convening authority may, after approving the example, when the finding is disapproved trial. sentence, suspend the execution of all or any because of the lack of mental responsibility (A) Rehearing or other trial. In acting on a part of the sentence of a court-martial, except of the accused or the running of the statute rehearing or other trial the convening for a sentence of death. The general court- of limitations. authority shall be subject to the sentence martial convening authority over the accused No express action is necessary to approve limitations prescribed in R.C.M. 810(d). at the time of the court-martial may, when findings of guilty. Except when a rehearing or other trial is taking the action under R.C.M. 1112(f),

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suspend or remit any part of the sentence. charges are not referred to a general court- Discussion The Secretary concerned and, when martial. The investigating officer should be an designated by the Secretary concerned, any Discussion officer in the grade of major or lieutenant Under Secretary, Assistant Secretary, Judge commander or higher or one with legal Advocate General, or commanding officer The primary purpose of the investigation training. The investigating officer may seek may suspend or remit any part or amount of required by Article 32 and this rule is to legal advice concerning the investigating the unexecuted part of any sentence other inquire into the truth of the matters set forth officer’s responsibilities from an impartial than a sentence approved by the President or in the charges, the form of the charges, and source, but may not obtain such advice from a sentence of confinement for life without to secure information on which to determine counsel for any party. eligibility for parole that has been ordered what disposition should be made of the case. (2) Defense counsel. executed. The Secretary concerned may, The investigation also serves as a means of (A) Detailed counsel. Except as provided in however, suspend or remit the unexecuted discovery. The function of the investigation subsection (d)(2)(B) of this rule, military part of a sentence of confinement for life is to ascertain and impartially weigh all counsel certified in accordance with Article without eligibility for parole only after the available facts in arriving at conclusions and 27(b) shall be detailed to represent the service of a period of confinement of not less recommendations, not to perfect a case accused. than 20 years. The commander of the accused against the accused. The investigation should (B) Individual military counsel. The who has the authority to convene a court- be limited to the issues raised by the charges accused may request to be represented by martial of the kind that adjudged the and necessary to proper disposition of the individual military counsel. Such requests sentence may suspend or remit any part of case. The investigation is not limited to shall be acted on in accordance with R.C.M. the unexecuted part of any sentence by examination of the witnesses and evidence 506(b). When the accused is represented by summary court-martial or of any sentence by mentioned in the accompanying allied individual military counsel, counsel detailed special court- martial that does not include to represent the accused shall ordinarily be papers. See subsection (e) of this rule. a bad-conduct discharge regardless of excused, unless the authority who detailed Recommendations of the investigating officer whether the person acting has previously the defense counsel, as a matter of discretion, approved the sentence. The ‘‘unexecuted part are advisory. approves a request by the accused for of any sentence’’ is that part that has been If at any time after an investigation under retention of detailed counsel. The approved and ordered executed but that has this rule the charges are changed to allege a investigating officer shall forward any not actually been carried out. more serious or essentially different offense, request by the accused for individual military further investigation should be directed with counsel to the commander who directed the Discussion respect to the new or different matters investigation. That commander shall follow See R.C.M. 1113 (execution of sentences); alleged. the procedures in R.C.M. 506(b). R.C.M. 1201 (action by the Judge Advocate Failure to comply substantially with the (C) Civilian counsel. The accused may be General); R.C.M. 1206 (powers and requirements of Article 32, which failure represented by civilian counsel at no expense responsibilities of the Secretary). The prejudices the accused, may result in delay to the United States. Upon request, the military judge and members of courts-martial in disposition of the case or disapproval of accused is entitled to a reasonable time to may not suspend sentences. the proceedings. See R.C.M. 905(b)(1) and obtain civilian counsel and to have such counsel present for the investigation. Rule 1301. Summary courts-martial 906(b)(3) concerning motions for appropriate However, the investigation shall not be generally relief relating to the pretrial investigation. The accused may waive the pretrial unduly delayed for this purpose. (c) Jurisdiction. Subject to Chapter II, investigation. See subsection (k) of this rule. Representation by civilian counsel shall not summary courts-martial have the power to In such case, no investigation need be held. limit the rights to military counsel under try persons subject to the code, except The commander authorized to direct the subsections (d)(2)(A) and (B) of this rule. commissioned officers, warrant officers, investigation may direct that it be conducted cadets, aviation cadets, and midshipmen, for Discussion notwithstanding the waiver. any noncapital offense made punishable by See R.C.M. 502(d)(6) concerning the duties of (b) Earlier investigation. If an investigation the code. defense counsel. of the subject matter of an offense has been Discussion conducted before the accused is charged with (3) Others. The commander who directed the investigation may also, as a matter of See R.C.M. 103(3) for a definition of capital an offense, and the accused was present at the investigation and afforded the rights to discretion, detail or request an appropriate offenses.’’ authority to detail: counsel, cross-examination, and presentation Sec. 10. A new appendix, Appendix (A) Counsel to represent the United States; of evidence required by this rule, no further 30 is inserted and reads as follows: (B) A reporter; and investigation is required unless demanded by (C) An interpreter. ‘‘Appendix 30 the accused to recall witnesses for further (e) Scope of investigation. The cross-examination and to offer new evidence. Rules for Courts-Martial 405 investigating officer shall inquire into the Applicable to Offenses Committed Discussion truth and form of the charges, and such other matters as may be necessary to make a Before 26 December 2014 An earlier investigation includes courts of recommendation as to the disposition of the inquiry and similar investigations which Rule for Courts-Martial 405 in this charges. If evidence adduced during the meet the requirements of this subsection. appendix was revised to implement Section investigation indicates that the accused 1702 of the National Defense Authorization (c) Who may direct investigation. Unless committed an uncharged offense, the Act for Fiscal Year 2014, Public Law 113–66, prohibited by regulations of the Secretary investigating officer may investigate the 26 December 2013.’’ For offenses committed concerned, an investigation may be directed subject matter of such offense and make a before 26 December 2014, the relevant R.C.M. under this rule by any court-martial recommendation as to its disposition, 405 is contained in this appendix and listed convening authority. That authority may also without the accused first having been below: give procedural instructions not inconsistent charged with the offense. The accused’s with these rules. rights under subsection (f) are the same with Rule 405. Pretrial investigation (d) Personnel. regard to investigation of both charged and (a) In general. Except as provided in (1) Investigating officer. The commander uncharged offenses. subsection (k) of this rule, no charge or directing an investigation under this rule specification may be referred to a general shall detail a commissioned officer not the Discussion court-martial for trial until a thorough and accuser, as investigating officer, who shall The investigation may properly include impartial investigation of all the matters set conduct the investigation and make a report such inquiry into issues raised directly by the forth therein has been made in substantial of conclusions and recommendations. The charges as is necessary to make an compliance with this rule. Failure to comply investigating officer is disqualified to act appropriate recommendation. For example, with this rule shall have no effect if the later in the same case in any other capacity. inquiry into the legality of a search or the

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admissibility of a confession may be testimony must be balanced against the The provision in (B), requiring the appropriate. However, the investigating relative difficulty and expense of obtaining investigating officer to notify the appropriate officer is not required to rule on the the witness’ presence at the hearing. authorities of requests by the accused for admissibility of evidence and need not (B) Evidence. Subject to Mil. R. Evid., information privileged under Mil. R. Evid. consider such matters except as the Section V, evidence, including documents or 505 or 506, is for the purpose of placing the investigating officer deems necessary to an physical evidence, which is under the appropriate authority on notice that an order, informed recommendation. When the control of the Government and which is as authorized under subparagraph (g)(6), may investigating officer is aware that evidence relevant to the investigation and not be required to protect whatever information may not be admissible, this should be noted cumulative, shall be produced if reasonably the government may decide to release to the in the report. See also subsection (i) of this available. Such evidence includes evidence accused. rule. requested by the accused, if the request is (2) Determination of reasonable In investigating uncharged misconduct timely. As soon as practicable after receipt of availability. identified during the pretrial investigation, a request by the accused for information (A) Military witnesses. The investigating the investigating officer will inform the which may be protected under Mil. R. Evid. officer shall make an initial determination accused of the general nature of each 505 or 506, the investigating officer shall whether a military witness is reasonably uncharged offense investigated, and notify the person who is authorized to issue available. If the investigating officer decides otherwise afford the accused the same a protective order under subsection (g)(6) of that the witness is not reasonably available, opportunity for representation, cross this rule, and the convening authority, if the investigating officer shall inform the examination, and presentation afforded different. Evidence is reasonably available if parties. Otherwise, the immediate during the investigation of any charged its significance outweighs the difficulty, commander of the witness shall be requested offense. expense, delay, and effect on military to make the witness available. A (f) Rights of the accused. At any pretrial operations of obtaining the evidence. determination by the immediate commander investigation under this rule the accused Discussion that the witness is not reasonably available shall have the right to: is not subject to appeal by the accused but (1) Be informed of the charges under In preparing for the investigation, the may be reviewed by the military judge under investigation; investigating officer should consider what R.C.M. 906(b)(3). (2) Be informed of the identity of the evidence will be necessary to prepare a accuser; thorough and impartial investigation. The Discussion (3) Except in circumstances described in investigating officer should consider, as to The investigating officer may discuss R.C.M. 804(c)(2), be present throughout the potential witnesses, whether their personal factors affecting reasonable availability with taking of evidence; appearance will be necessary. Generally, the immediate commander of the requested (4) Be represented by counsel; personal appearance is preferred, but the witness and with others. If the immediate (5) Be informed of the witnesses and other investigating officer should consider commander determined that the witness is evidence then known to the investigating whether, in light of the probable importance not reasonably available, the reasons for that officer; of a witness’ testimony, an alternative to determination should be provided to the (6) Be informed of the purpose of the testimony under subsection (g)(4)(A) of this investigating officer. investigation; rule would be sufficient. (B) Civilian witnesses. The investigating (7) Be informed of the right against self- After making a preliminary determination officer shall decide whether a civilian incrimination under Article 31; of what witnesses will be produced and other witness is reasonably available to appear as (8) Cross-examine witnesses who are evidence considered, the investigating officer a witness. produced under subsection (g) of this rule; should notify the defense and inquire Discussion (9) Have witnesses produced as provided whether it requests the production of other for in subsection (g) of this rule; witnesses or evidence. In addition to The investigating officer should initially (10) Have evidence, including documents witnesses for the defense, the defense may determine whether a civilian witness is or physical evidence, within the control of request production of witnesses whose reasonably available without regard to military authorities produced as provided testimony would favor the prosecution. whether the witness is willing to appear. If under subsection (g) of this rule; Once it is determined what witnesses the the investigating officer determines that a (11) Present anything in defense, investigating officer intends to call it must be civilian witness is apparently reasonably extenuation, or mitigation for consideration determined whether each witness is available, the witness should be invited to by the investigating officer; and reasonably available. That determination is a attend and when appropriate, informed that (12) Make a statement in any form. balancing test. The more important the necessary expenses will be paid. (g) Production of witnesses and evidence; testimony of the witness, the greater the If the witness refuses to testify, the witness alternatives. difficulty, expense, delay, or effect on is not reasonably available because civilian (1) In general. military operations must be to permit witnesses may not be compelled to attend a (A) Witnesses. Except as provided in nonproduction. For example, the temporary pretrial investigation. Under subsection (g)(3) subsection (g)(4)(A) of this rule, any witness absence of a witness on leave for 10 days of this rule, civilian witnesses may be paid whose testimony would be relevant to the would normally justify using an alternative for travel and associated expenses to testify investigation and not cumulative, shall be to that witness’ personal appearance if the at a pretrial investigation. Except for use in produced if reasonably available. This sole reason for the witness’ testimony was to support of the deposition of a witness under includes witnesses requested by the accused, impeach the credibility of another witness by Article 49, UCMJ, and ordered pursuant to if the request is timely. A witness is reputation evidence, or to establish a R.C.M. 702(b), the investigating officer and ‘‘reasonably available’’ when the witness is mitigating character trait of the accused. On any government representative to an Article located within 100 miles of the situs of the the other hand, if the same witness was the 32, UCMJ, proceeding does not possess investigation and the significance of the only eyewitness to the offense, personal authority to issue a subpoena to compel testimony and personal appearance of the appearance would be required if the defense against his or her will a civilian witness to witness outweighs the difficulty, expense, requested it and the witness is otherwise appear and provide testimony or documents. delay, and effect on military operations of reasonably available. The time and place of (C) Evidence. The investigating officer shall obtaining the witness’ appearance. A witness the investigation may be changed if make an initial determination whether who is unavailable under Mil. R. Evid. reasonably necessary to permit the evidence is reasonably available. If the 804(a)(1)–(6), is not ‘‘reasonably available.’’ appearance of a witness. Similar investigating officer decides that it is not considerations apply to the production of reasonably available, the investigating officer Discussion evidence. shall inform the parties. Otherwise, the A witness located beyond the 100-mile If the production of witnesses or evidence custodian of the evidence shall be requested limit is not per se unavailable. To determine would entail substantial costs or delay, the to provide the evidence. A determination by if a witness beyond 100 miles is reasonably investigating officer should inform the the custodian that the evidence is not available, the significance of the witness’ live commander who directed the investigation. reasonably available is not subject to appeal

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by the accused, but may be reviewed by the (vi) An offer of proof concerning pertinent (C) Defense evidence. The defense shall military judge under R.C.M. 906(b)(3). characteristics of the evidence. have full opportunity to present any matters (B) The investigating officer may consider, in defense, extenuation, or mitigation. Discussion over objection of the defense, when the (2) Objections. Any objection alleging The investigating officer may discuss evidence is not reasonably available: failure to comply with this rule, except factors affecting reasonable availability with (i) Testimony describing the evidence; subsection (j), shall be made to the the custodian and with others. If the (ii) An authenticated copy, photograph, or investigating officer promptly upon custodian determines that the evidence is not reproduction of similar accuracy of the discovery of the alleged error. The reasonably available, the reasons for that evidence; or investigating officer shall not be required to determination should be provided to the (iii) An alternative to testimony, when rule on any objection. An objection shall be investigating officer. permitted under subsection (g)(4)(B) of this noted in the report of investigation if a party (D) Action when witness or evidence is not rule, in which the evidence is described. so requests. The investigating officer may reasonably available. If the defense objects to (6) Protective order for release of privileged require a party to file any objection in a determination that a witness or evidence is information. If, prior to referral, the writing. not reasonably available, the investigating Government agrees to disclose to the accused Discussion officer shall include a statement of the information to which the protections reasons for the determination in the report of afforded by Mil. R. Evid. 505 or 506 may See also subsection (k) of this rule. investigation. apply, the convening authority, or other Although the investigating officer is not (3) Witness expenses. Transportation person designated by regulation of the required to rule on objections, the expenses and a per diem allowance may be Secretary of the service concerned, may enter investigating officer may take corrective paid to civilians requested to testify in an appropriate protective order, in writing, to action in response to an objection as to connection with an investigation under this guard against the compromise of information matters relating to the conduct of the rule according to regulations prescribed by disclosed to the accused. The terms of any proceedings when the investigating officer the Secretary of a Department. such protective order may include believes such action is appropriate. prohibiting the disclosure of the information If an objection raises a substantial question Discussion except as authorized by the authority issuing about a matter within the authority of the See Department of Defense Joint Travel the protective order, as well as those terms commander who directed the investigation Regulations, Vol 2, paragraphs C3054, C6000. specified by Mil. R. Evid. 505(g)(1)(B) (for example, whether the investigating (4) Alternatives to testimony. through (F) or 506(g)(2) through (5). officer was properly appointed) the (A) Unless the defense objects, an (h) Procedure. investigating officer should promptly inform investigating officer may consider, regardless (1) Presentation of evidence. the commander who directed the of the availability of the witness: (A) Testimony. All testimony shall be taken investigation. (i) Sworn statements; under oath, except that the accused may (3) Access by spectators. Access by (ii) Statements under oath taken by make an unsworn statement. The defense spectators to all or part of the proceedings telephone, radio, or similar means providing shall be given wide latitude in cross- may be restricted or foreclosed in the each party the opportunity to question the examining witnesses. discretion of the commander who directed witness under circumstances by which the the investigation or the investigating officer. investigating officer may reasonably Discussion Article 32 investigations are public hearings conclude that the witness’ identity is as The following oath may be given to and should remain open to the public claimed; witnesses: whenever possible. When an overriding (iii) Prior testimony under oath; ‘‘Do you (swear) (affirm) that the evidence interest exists that outweighs the value of an (iv) Depositions; you give shall be the truth, the whole truth, open investigation, the hearing may be closed (v) Stipulations of fact or expected and nothing but the truth (so help you to spectators. Any closure must be narrowly testimony; God)?’’ tailored to achieve the overriding interest (vi) Unsworn statements; and The investigating officer is required to that justified the closure. Commanders or (vii) Offers of proof of expected testimony include in the report of the investigation a investigating officers must conclude that no of that witness. summary of the substance of all testimony. lesser methods short of closing the Article 32 (B) The investigating officer may consider, See subsection (j)(2)(B) of this rule. After the investigation can be used to protect the over objection of the defense, when the hearing, the investigating officer should, overriding interest in the case. Commanders witness is not reasonably available: whenever possible, reduce the substance of or investigating officers must conduct a case- (i) Sworn statements; the testimony of each witness to writing. by-case, witness-by-witness, circumstance- (ii) Statements under oath taken by If the accused testifies, the investigating by-circumstance analysis of whether closure telephone, radio, or similar means providing officer may invite but not require the accused is necessary. If a commander or investigating each party the opportunity to question the to swear to the truth of a summary of that officer believes closing the Article 32 witness under circumstances by which the testimony. If substantially verbatim notes of investigation is necessary, the commander or investigating officer may reasonably a testimony or recordings of testimony were investigating officer must make specific conclude that the witness’ identity is a taken during the investigation, they should findings of fact in writing that support the claimed; be preserved until the end of trial. closure. The written findings of fact must be (iii) Prior testimony under oath; and If it appears that material witnesses for included in the Article 32 investigating (iv) Deposition of that witness; and either side will not be available at the time officer’s report. Examples of overriding (v) In time of war, unsworn statements. anticipated for trial, the investigating officer interests may include: preventing (5) Alternatives to evidence. should notify the commander who directed psychological harm or trauma to a child (A) Unless the defense objects, an the investigation so that depositions may be witness or an alleged victim of a sexual investigating officer may consider, regardless taken if necessary. crime, protecting the safety of a witness or of the availability of the evidence: If during the investigation any witness alleged victim, protecting classified material, (i) Testimony describing the evidence; subject to the code is suspected of an offense and receiving evidence where a witness is (ii) An authenticated copy, photograph, or under the code, the investigating officer incapable of testifying in an open setting. reproduction of similar accuracy of the should comply with the warning (4) Presence of accused. The further evidence; requirements of Mil. R. Evid.305(c), (d), and, progress of the taking of evidence shall not (iii) An alternative to testimony, when if necessary, (e). be prevented and the accused shall be permitted under subsection (g)(4)(B) of this (B) Other evidence. The investigating considered to have waived the right to be rule, in which the evidence is described; officer shall inform the parties what other present, whenever the accused: (iv) A stipulation of fact, document’s evidence will be considered. The parties (A) After being notified of the time and contents, or expected testimony; shall be permitted to examine all other place of the proceeding is voluntarily absent (v) An unsworn statement describing the evidence considered by the investigating (whether or not informed by the investigating evidence; or officer. officer of the obligation to be present); or

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(B) After being warned by the investigating (B) The substance of the testimony taken promptly cause a copy of the report to be officer that disruptive conduct will cause on both sides, including any stipulated delivered to each accused. removal from the proceeding, persists in testimony; (4) Objections. Any objection to the report conduct which is such as to justify exclusion (C) Any other statements, documents, or shall be made to the commander who from the proceeding. matters considered by the investigating directed the investigation within 5 days of its (i) Military Rules of Evidence. The Military officer, or recitals of the substance or nature receipt by the accused. This subsection does Rules of Evidence—other than Mil. R. Evid. of such evidence; not prohibit a convening authority from 301, 302, 303, 305, 412 and Section V—shall (D) A statement of any reasonable grounds referring the charges or taking other action not apply in pretrial investigations under this for belief that the accused was not mentally within the 5-day period. rule. responsible for the offense or was not (k) Waiver. The accused may waive an competent to participate in the defense investigation under this rule. In addition, Discussion during the investigation; failure to make a timely objection under this The investigating officer should exercise Discussion rule, including an objection to the report, reasonable control over the scope of the shall constitute waiver of the objection. See R.C.M. 909 (mental capacity); 916(k) inquiry. See subsection (e) of this rule. An Relief from the waiver may be granted by the (mental responsibility). investigating officer may consider any investigating officer, the commander who evidence, even if that evidence would not be (E) A statement whether the essential directed the investigation, the convening admissible at trial. However, see subsection witnesses will be available at the time authority, or the military judge, as (g)(4) of this rule as to limitations on the anticipated for trial and the reasons why any appropriate, for good cause shown. essential witness may not then be available; ways in which testimony may be presented. (F) An explanation of any delays in the Discussion Certain rules relating to the form of investigation; testimony which may be considered by the See also R.C.M. 905(b)(1); 906(b)(3). (G) The investigating officer’s conclusion investigating officer appear in subsection (g) If the report fails to include reference to whether the charges and specifications are in objections which were made under of this rule. proper form; (j) Report of investigation. subsection (h)(2) of this rule, failure to object (H) The investigating officer’s conclusion to the report will constitute waiver of such (1) In general. The investigating officer whether reasonable grounds exist to believe shall make a timely written report of the objections in the absence of good cause for that the accused committed the offenses relief from the waiver. investigation to the commander who directed alleged; and the investigation. The commander who receives an objection (I) The recommendations of the may direct that the investigation be reopened Discussion investigating officer, including disposition. or take other action, as appropriate. If practicable, the charges and the report of Discussion Even if the accused made a timely objection to failure to produce a witness, a investigation should be forwarded to the For example, the investigating officer may general court-martial convening authority recommend that the charges and defense request for a deposition may be within 8 days after an accused is ordered into specifications be amended or that additional necessary to preserve the issue for later arrest or confinement. Article 33. charges be preferred. See R.C.M. 306 and 401 review.’’ (2) Contents. The report of investigation concerning other possible dispositions. Dated: September 29, 2014. shall include: See Appendix 5 for a sample of the Aaron Siegel, (A) A statement of names and Investigating Officer’s Report (DD Form 457). Alternate OSD Federal Register Liaison organizations or addresses of defense counsel (3) Distribution of the report. The Officer, Department of Defense. and whether defense counsel was present investigating officer shall cause the report to throughout the taking of evidence, or if not be delivered to the commander who directed [FR Doc. 2014–23546 Filed 10–2–14; 8:45 am] present the reason why; the investigation. That commander shall BILLING CODE 5001–06–P

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Part IV

Consumer Product Safety Commission

16 CFR Part 1240 Final Rule: Safety Standard for Magnet Sets; Final Rule

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CONSUMER PRODUCT SAFETY toys, sculpture sets, or stress relievers. activity beginning in mid-2012, and COMMISSION The rule also covers individual magnets because the largest distributor ceased that are marketed or intended for use operations at the end of 2012, reported 16 CFR Part 1240 with or as magnet sets. The Commission incidents declined to 13 incidents in [CPSC Docket No. CPSC–2012–0050] concludes that this rule is necessary to 2013, including one fatality, and two address an unreasonable risk of injury incidents in 2014. We received an Final Rule: Safety Standard for Magnet and death associated with these magnet additional magnet ingestion incident Sets sets. report for which there was insufficient information to determine the date of the AGENCY: Consumer Product Safety 1. Initial Incident Reports to CPSC and CPSC’s Response incident. As of June 24, 2014, 100 Commission. ingestion incidents involving, or ACTION: Final rule. Significant U.S. sales of magnet sets possibly involving, ingestion of magnets marketed for general entertainment SUMMARY: The Consumer Product Safety from magnet sets have been reported to began in 2009. CPSC staff received the CPSC. (As discussed in section C of this Commission (CPSC, Commission, or we) first consumer incident report involving is issuing a rule establishing preamble, staff’s analysis of incidents magnet sets in February 2010. No injury reported through the National Electronic requirements for magnet sets and resulted from this incident. Shortly after individual magnets that are intended or Injury Surveillance System (NEISS) receiving this report, CPSC staff estimates that 2,900 possible magnet set, marketed to be used with or as magnet collected and evaluated samples of the sets. As defined in the rule, magnet sets emergency department-treated magnet sets. ingestions occurred in the United States are aggregations of separable magnetic In December 2010, we received our objects that are marketed or commonly from January 1, 2009 through December first consumer incident report involving 31, 2013). used as a manipulative or construction the surgical removal of magnets that had item for entertainment, such as puzzle been part of a magnet set. During 2011, 2. Corrective Actions working, sculpture building, mental CPSC staff collected magnet sets stimulation, or stress relief. Under the marketed to children under 13 years In May 2012, Compliance staff rule, if a magnet set contains a magnet old, and staff evaluated the compliance contacted a total of 13 independent that fits within the CPSC’s small parts of these products with ASTM F963–11, importers of magnet sets and asked cylinder, each magnet in the magnet set Standard Consumer Safety these importers to provide reports must have a flux index of 50 kG2 mm2 Specification for Toy Safety. Staff required under Section 15 of the CPSA. or less. An individual magnet that is evaluated these products under ASTM Most of the firms agreed to stop selling marketed or intended for use as part of F–963 because some of the products the products pending the results of a magnet set also must meet these were labeled and marketed in a manner staff’s evaluation of the products. Given requirements. The flux index is that appeared to promote use by the continued injuries to children, staff determined by the method described in children and this standard includes negotiated voluntary corrective action ASTM F963–11, Standard Consumer requirements for the strength and size of plans with 11 of the 13 magnet set Safety Specification for Toy Safety. magnets that are part of a toy intended importers. These firms agreed to cease DATES: This rule will become effective for children. For firms whose products importation, distribution, and sales of on April 1, 2015. The incorporation by did not have labeling or marketing magnet sets. Two importers did not reference of the publication listed in information, CPSC staff encouraged agree to stop selling the magnets and the this rule is approved by the Director of those firms to develop marketing Commission initiated an administrative the Federal Register as of April 1, 2015. programs and labeling content to help action in July and August 2012 seeking FOR FURTHER INFORMATION CONTACT: ensure that these magnet sets were not a determination that the magnet sets Thomas Lee, Compliance Officer, Office marketed to children. In addition, CPSC present a substantial product hazard of Compliance and Field Operations, staff issued Notices of Noncompliance and an order that the firm cease Consumer Product Safety Commission, to firms that marketed magnet sets to importation and distribution of the 4330 East West Highway, Bethesda, MD children younger than 14 years of age. products. The Commission initiated a 20814; telephone: (301) 504–7737, or In November 2011, in response to third administrative action in December email: [email protected]. continuing reports of injuries associated 2012 after one of the firms that had with the products, the CPSC, in agreed to stop sale subsequently SUPPLEMENTARY INFORMATION: cooperation with two manufacturers, resumed selling magnet sets. Two of the A. Background launched a public awareness campaign, three administrative actions have been The Commission is issuing a safety which included a video public service resolved. In May 2014, the Commission standard under the Consumer Product announcement (PSA). The PSA advised settled the administrative action against Safety Act (CPSA) establishing children: Not to put magnets from Maxfield & Oberton Holdings, LLC, and requirements for magnet sets that have magnet sets into their mouth; described Craig Zucker, individually, and as an been associated with serious injuries the risk of injury presented by the officer of Maxfield & Oberton Holdings, and one reported death.1 As discussed ingestion of high-powered magnets; and LLC. The settlement established and in greater detail in section B of this provided tips to avoid magnet ingestion funded a Recall Trust, which, in preamble, magnet sets are sets of small, injuries, along with guidance for accordance with a corrective action plan powerful magnets marketed for general children who had swallowed magnets (CAP), is recalling the firm’s magnet entertainment as construction toys, desk and parents who suspect that their child sets. In July 2014, the Commission has swallowed magnets. Despite the settled the administrative complaint 1 The Commission voted 4–0–1 to publish this CPSC’s compliance and public against Star Networks USA, LLC (Star). notice in the Federal Register. Chairman Elliot F. awareness activities, reported incidents Under that settlement, Star has agreed to Kaye, Commissioner Robert S. Adler, Commissioner of magnet ingestion by children implement a CAP providing for the Marietta S. Robinson and Commissioner Joseph P. Mohorovic voted to approve publication of the final increased from 13 in 2010, to 19 in recall of the firm’s magnet sets. The rule. Commissioner Ann Marie Buerkle abstained 2011, and 52 in 2012. Likely due to third firm, Zen Magnets, LLC, remains from the matter. CPSC enforcement and regulatory the subject of a CPSC administrative

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action and continues to market and sell future,’’ stress relievers, science kits, may evoke a degree of awe and magnet sets. and educational tools for ‘‘brain amusement among older children and development.’’ As shown in product teens. These features are the foundation 3. Notice of Proposed Rulemaking instructions and in videos on related of the magnet sets’ appeal as a In the Federal Register of September Web sites, magnet sets can be used and challenging puzzle, or as a 4, 2012 (77 FR 53781), the Commission reused to make various two- and three- manipulative, or as jewelry. These published a notice of proposed dimensional sculptures and figures, magnets may also be used like a stress rulemaking (NPR) to address the jewelry, and toys, such as spinning tops. ball and as a way to hold things in unreasonable risk of injury associated Videos also show how these magnets place. with magnet sets. The NPR proposed a can be used to mimic mouth and tongue Children, from toddlers through teens, standard that would require magnets piercings. have been exposed to magnet sets in the from magnet sets containing at least one Magnet sets come with varying home setting and elsewhere. As the NPR magnet that fits within the CPSC’s small numbers of magnets, from as few as 27 preamble notes, we have reports of parts cylinder to have a flux index of 50 magnets, to more than 1,000. Most of the ingestion incidents that involve kG2 mm2 or less. The proposed rule magnets have been sold in sets of 125 children 5 years of age and younger. The sought comment on whether the rule balls or sets of 216 to 224 balls. The one reports reflect similar scenarios to other should include magnets sold firm that is currently marketing magnet ingestion incidents among this age individually that could be aggregated sets that would not meet this rule sells group because mouthing and ingesting into a magnet set. The final rule one or more balls individually. Based on non-food items is a normal part of modifies the proposal to include product information provided by preschool children’s exploratory individual magnets marketed or marketers, the most common magnet behavior. In a number of reported intended for the same uses as a magnet size is approximately 5 millimeters in incidents, the magnets were not in their set, i.e., as a manipulative or diameter, although balls as small as original containers, and caregivers were construction item for entertainment, about 3 millimeters have been sold, as unaware that some of the magnets from such as puzzle working, sculpture have sets of larger magnet balls (perhaps the set were missing and in the child’s building, mental stimulation, or stress 15 millimeters to 25 millimeters in possession. relief. We discuss this modification and diameter). In addition to magnetic ball As noted in the NPR preamble, other differences between the proposed sets, magnet sets comprised of small magnet sets also appeal to children of and final rule in Section F of this magnetic cubes have also been sold, as early-to-middle elementary school age. preamble. The information discussed in have small magnetic rods. Sets made up Younger children in this age group are this preamble comes from CPSC staff’s of rods, however, have comprised a interested in simple three-dimensional briefing packages for the proposed and relatively small share of the market. puzzles, and older elementary school final magnet set rule, which are Most magnet sets contain magnets children are interested in highly available on the CPSC’s Web site at: that are glossy and highly reflective complex puzzles. Children in the latter http://www.cpsc.gov/PageFiles/128934/ with the spheres often described as age group also can engage in activities magnetstd.pdf (NPR briefing package) similar in appearance to BBs or ball that require the type of meticulous work and http://www.cpsc.gov/Global/ bearings. Magnet set magnets come in a and attention that would be needed to Newsroom/FOIA/ variety of colors, including silver, blue, create the complex patterns and CommissionBriefingPackages/2014/ yellow, green and orange. The products structures found on paper and in video SafetyStandardforMagnetSets- are packaged in a variety of ways, instructions for magnet sets. FinalRule.pdf (final rule briefing including fabric pouches, wooden Additionally, magnets typically are package). boxes, and metal tins. included in science curricula for The rule defines ‘‘magnet set’’ as: elementary school children to B. The Product ‘‘any aggregation of separable magnetic demonstrate the basic concepts of objects that is a consumer product 1. Description of the Product magnetism. intended, marketed or commonly used For all of these reasons, and The magnet sets covered by this rule as a manipulative or construction item consistent with reviews on retail Web typically are comprised of numerous for general entertainment, such as sites, magnet sets are sometimes identical, spherical, or cube-shaped puzzle working, sculpture, mental purchased for children under the age of magnets, approximately 3 millimeters to stimulation, or stress relief.’’ As 14, despite warnings or labeling to the 6 millimeters in size, with the majority discussed in section F of this preamble, contrary. For example, approximately made from NdFeB (Neodymium-Iron- the rule also covers individual magnets one-third of 53 adults reviewing one Boron or NIB). As discussed in section marketed or intended for use with manufacturer’s product on Amazon.com F of this preamble, the rule also covers magnet sets. reported purchasing the magnets for individual magnets that are marketed or children 8 through 11 years of age. intended for use with or as magnet sets. 2. Use of the Product Thus, it is foreseeable that some These magnets exhibit strong magnetic For the NPR, CPSC’s Human Factors portion of these products will be properties. The magnetized staff provided an assessment that purchased for elementary school neodymium-iron-boron cores are coated discusses the appeal and use of magnet children and teens. Moreover, given the with a variety of metals and other sets. Magnet sets have some appeal for relatively low cost for some magnet sets, materials to make them more attractive virtually all age groups. These types of elementary school children and teens to consumers and to protect the brittle magnets tend to capture attention may purchase the magnet sets magnetic alloy materials from breaking, because they are shiny and reflect light. themselves. The incident reports reflect chipping, and corroding. They are smooth, which gives the behaviors that are beyond the intended The magnets that are part of magnet magnets tactile appeal, and these use of the product but that are sets are often referred to as ‘‘magnet magnets make soft snapping sounds as foreseeable for the groups using them. balls’’ or ‘‘rare earth magnets.’’ Magnet they are manipulated. These properties For example, it is foreseeable that some sets are and have been marketed as: or characteristics of magnets are likely children will place these magnets in adult desk toys, the ‘‘puzzles of the to seem magical to younger children and their mouth, even if the manufacturer

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warns against this behavior. The larger firms (including a firm based in children 4 through 12 years of age. An mouthing of objects, common among Canada with a branch office in the estimated 1,900 of the 2,900 victims are younger children, develops into less United States), marketed their products in the 4- through 12-year-old age group obvious and more socially acceptable through accounts with retailers. They (65.3 percent). For more information oral habits, which may continue have also sold their products directly to about the process of developing the through childhood and adolescence and consumers via the Internet, using their estimates of incidents, see the into adulthood (e.g., mouthing or own Web sites, or other Internet memorandum from the Directorate for chewing a fingertip, fingernail, knuckle, shopping sites. In addition to products Epidemiology, located at Tab B of staff’s pen, pencil, or other object, especially offered for sale by U.S. importers, briefing package: http://www.cpsc.gov/ while concentrating or worrying). consumers also have the ability to Global/Newsroom/FOIA/ Where details are provided, the incident purchase magnetic sets directly from CommissionBriefingPackages/2014/ reports describe scenarios that are sources in Hong Kong or China that SafetyStandardforMagnetSets- consistent with the behaviors of young market products through a leading FinalRule.pdf. children and teens. Although Internet shopping site. Databases other than NEISS. The exploratory play is generally associated preamble to the proposed rule (77 FR at C. Risk of Injury with very young children, people of all 53784 through 53785) summarized the ages use their senses to explore The risk of injury addressed by this data for incidents reported through unfamiliar phenomena. 77 FR 53781, rule is damage to intestinal tissue databases other than NEISS from 53783 (Sep. 4, 2012). caused when a person ingests more than January 1, 2009 through June 30, 2012. one magnet from a magnet set (or one These incidents involved the ingestion 3. The Market magnet and a ferromagnetic object). The of magnets by children between the ages Based on information reviewed by magnets are attracted to each other in of 1 and 15. For that period, we received staff on product sales, including reports the digestive system, damaging the reports of 50 incidents involving the by firms provided to the Office of intestinal tissue that becomes trapped ingestion of magnets by children in this Compliance and Field Operations, the between the magnets. In rare cases, age range. Of those 50 incidents, 38 number of magnet sets that were sold to there can be interaction between involved the ingestion of high-powered, U.S. consumers from 2009 through mid- magnets in the airways and digestive ball-shaped magnets contained in 2012, may have totaled about 2.7 tract (esophagus). These injuries can be products that meet the definition above million sets, with a value of roughly $50 difficult to diagnose and treat because of ‘‘magnet set’’; five of the 50 incidents million. This estimate reflects retail the symptoms of magnet ingestion often possibly involved ingestion of this type sales directly to consumers (through appear similar to those of less serious of magnet. In 35 of the 43 incidents company Web sites and other Internet conditions, such as the flu, and because involving or possibly involving magnets retail sites) and sales to retailers who many doctors are unfamiliar with the from a magnet set, two or more magnets market the products. Staff’s review of risks of magnet ingestion. In addition, were ingested. Hospitalization was retail prices reported by importers, and the limitations of standard diagnostic required in 29 of the 43 incidents, with observed on Internet sites in 2012, tools to identify and evaluate the surgery necessary to remove the suggested prices of magnets sets presence of magnets in the body may magnets in 20 of the 29 hospitalizations. typically ranging from about $20 to $45 make magnet ingestion difficult to In the other nine hospitalizations, the per set, with an average price of about identify. Serious injury and even death victim underwent colonoscopic or $25. are consequences of ingestion of strong endoscopic procedures to remove the To our knowledge, all of the firms that magnets by children. magnets. In 37 of the 43 incidents, the have marketed the products, including 1. Incident Data magnets were ingested by children the firm that continues to sell individual younger than 4 years old or between the magnets and magnet sets, import the NEISS data. CPSC staff reviewed data ages of 4 and 12 years. products packaged and labeled for sale from the NEISS database of magnet- Since publication of the NPR, the to U.S. consumers. Several Chinese related ingestion cases treated in Commission has received reports of manufacturers have the facilities and emergency departments from January 1, additional incidents involving the production capacity to meet the orders 2009 to December 31, 2013.2 CPSC staff ingestion of magnets by children of U.S. importers. Additionally, there analyzed 456 magnet-related ingestion between the ages of 1 year and 15 years are no major barriers to market entry for cases and determined that 121 of the old, including one report of a fatality firms wishing to source products from cases involved or possibly involved associated with the ingestion of small China for sale in the United States. ingestion of magnets from magnet sets. spherical magnets. We have now Firms may have sales arrangements with Staff further determined that an received reports of a total of 100 Internet retailers who hold stock for estimated 2,900 ingestions of magnets incidents involving or possibly them and process orders. from magnet sets were treated in U.S. involving the ingestion of high- We have identified about 25 U.S. emergency departments during this 5- powered, ball-shaped magnets firms and individuals who imported year period—an estimated average of contained in products that meet the magnet sets for sale in the United States 580 emergency department-treated definition of ‘‘magnet set.’’ The reports in 2012. The combined sales of the top magnet ingestions per year. The largest indicate that the incidents occurred seven firms probably have accounted for portion of these incidents involved between January 1, 2009 and June 24, the great majority (perhaps more than 2014. Sixty-one of the 100 reported 90%) of units sold. One firm, Maxfield 2 The Commission collects information on incidents required hospitalization. In 87 hospital emergency room-treated injuries through & Oberton Holdings, LLC, believed to the NEISS database. This data can be used to of the 100 reported incidents, the have held a dominant position in the provide national estimates of product-related magnets were ingested by children market for magnetic desk sets since the injuries treated in U.S. hospital emergency younger than 4 years old or between the firm entered the market in 2009, ceased departments. Incidents reported to the Commission ages of 4 and 12 years. represent a minimum count of injuries. To account operating in December 2012, and is no for incidents that are not reported to the Among the 100 reported incidents is longer an importer of magnet sets. That Commission, the staff calculates an estimated one fatality that involved magnets from now-defunct firm, along with a few number of such injuries. a magnet set. In August 2013, a 19-

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month-old female died from ischemic the ingestion of high-powered magnets; rulemaking by issuing an NPR on bowel caused by magnets from magnet the inability of standard diagnostic tools September 4, 2012 (77 FR 53781), sets in her small intestine. to demonstrate that the ingested item is including the proposed rule and a a magnet; the similarities between preliminary regulatory analysis under 2. Hazard Scenarios symptoms resulting from magnet section 9(c) of the CPSA. In addition, As discussed in the preamble to the ingestion injuries and less serious the Commission requested comments on proposed rule, the incident reports conditions like the flu; and victims’ the risk of injury identified, the describe scenarios that are consistent inability or unwillingness to regulatory alternatives under with behaviors of children in the communicate to their caregivers or consideration, and other possible identified age ranges. As noted in the medical personnel that they have alternatives for addressing the risk. Id. NPR, mouthing of objects, which is ingested magnets. 2058(c). As discussed in section E of common among younger children, The preamble to the proposed rule this preamble, the Commission develops into less obvious and more discussed the manner in which ingested considered the comments received in socially acceptable oral habits, which high-powered magnets can cause harm response to the proposed rule. may continue through childhood and by compressing intestinal tissue, the Section 9 also requires the adolescence and into adulthood (e.g., specific types of injuries that can result Commission to provide interested mouthing or chewing a fingertip, when tissue is trapped between two persons ‘‘an opportunity for the oral fingernail, knuckle, pen, pencil, or other magnets, and the risks associated with presentation of data, views, or object, especially while concentrating or those injuries (77 FR 53786). These arguments,’’ in addition to an worrying). 77 FR 53781, 53783 (Sep. 4, injuries include perforations that can opportunity to provide written 2012). For example, in the incidents result in infection due to leakage of gut comments. Id. 2058(d)(2). Accordingly, reported in the 8 through 12-year-old contents into the abdominal cavity and the Commission held a public hearing age group, one child described wanting obstructions that can lead to intestinal on the proposed rule on October 22, to feel the force of the magnets through tissue becoming necrotic or rupturing 2013, at agency headquarters in his tongue; one was trying to see if the and causing contamination of the Bethesda, MD. The hearing notice was magnets would stick to her braces; and abdominal cavity. Surgical procedures published in the Federal Register (78 another wanted to see if the magnets often are required to remove magnets FR 58491). The submissions forwarded would stick together through her teeth. from the digestive system. to the agency by presenters before the In another common scenario that Complications can arise after these hearing, can be read online at: http:// accounted for half of the reported procedures, including bleeding, www.cpsc.gov/en/Newsroom/Public- ingestion incidents among 8 to 15 year infection, and ileus (temporary paralysis Calendar/2014/Public-Hearing/Agenda/ olds, children used multiple magnets to of gut motility). Long-term Magnet-/. Videos of the presentations simulate piercings of their tongue, lips, complications resulting from this type can be viewed at: http://www.cpsc.gov/ or cheeks. In incidents reported among of surgical procedure can include: (1) Newsroom/Multimedia/?vid=66455. The children under the age of 4 years, Adhesions (where bands of intra- Commission also allowed submitters to children put the magnets in their abdominal scar tissue form that can forward additional written comments mouths and either intentionally or interfere with gut movement and can for 1 week after the hearing. We accidentally swallowed them. cause obstruction); (2) removal of long considered all of the written and oral The preamble to the proposed rule sections of injured bowel; and (3) comments received. provides summaries of several incident impaired digestive function. With this notice, the Commission reports that demonstrate a few of the issues a final rule, along with a final reported hazard scenarios (77 FR at D. Statutory Authority regulatory analysis. See id. 2058(f)(1). 53785 to 53786). These scenarios This rulemaking is conducted According to section 9(f)(1) of the CPSA, include two incidents in which young pursuant to the Consumer Product before promulgating a consumer girls (10 and 13 years of age) swallowed Safety Act (CPSA). Magnet sets are product safety rule, the Commission multiple magnet balls while using the ‘‘consumer products’’ that can be must consider and make appropriate magnets to simulate tongue and lip regulated by the Commission under the findings to be included in the rule on piercings. The girls underwent surgical authority of the CPSA. 15 U.S.C. the following issues: (1) The degree and procedures to remove magnet balls from 2052(a). nature of the risk of injury that the rule their intestines. In three other scenarios, Under section 7 of the CPSA, the is designed to eliminate or reduce; (2) magnet balls ingested by children under Commission is authorized to promulgate the approximate number of consumer the age of 3 years had to be removed a mandatory consumer product safety products subject to the rule; (3) the surgically from the children’s stomach standard that sets forth performance public’s need for the products subject to and intestines. In three of the five requirements for a consumer product or the rule, and the probable effect the rule incidents described in the preamble to that sets forth requirements that a will have on utility, cost, or availability the proposed rule, the child’s parent or product be marked or accompanied by of such products; and (4) the means to caregiver did not realize the child had clear and adequate warnings or achieve the objective of the rule while ingested magnets, which resulted in a instructions. 15 U.S.C. 2056. A minimizing adverse effects on delay in treatment and an increase in performance, warning, or instruction competition, manufacturing, and the severity of the injuries from the standard must be reasonably necessary commercial practices. Id. 2058(f)(1). magnets, which attached to each other to prevent or reduce an unreasonable Pursuant to section 9(f)(3) of the across intestinal tissue. risk or injury associated with a CPSA, to issue a final rule, the consumer product. Commission must find that the rule is 3. Details Concerning Injuries Section 9 of the CPSA specifies the ‘‘reasonably necessary to eliminate or Multiple factors complicate the procedure that the Commission must reduce an unreasonable risk of injury diagnosis of injury from magnet follow to issue a consumer product associated with such product’’ and find ingestion (77 FR 53786). These factors safety standard under section 7. In that issuing the rule is in the public include a lack of awareness by medical accordance with section 9, the interest. Id. 2058(f)(3)(A)&(B). In professionals of the dangers posed by Commission commenced this addition, if a voluntary standard

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addressing the risk of injury has been by searching under the docket number there is no constitutional right to adopted and implemented, the for this rulemaking, CPSC–2012–0050. purchase a product. Commission must find that: (1) The (Comment 2)—Several commenters Commission’s Authority To Promulgate voluntary standard is not likely to characterize the Commission’s the Rule eliminate or adequately reduce the risk enforcement activities (filing of injury, or that (2) substantial (Comment 1)—Many commenters administrative complaints, requesting compliance with the voluntary standard opine that promulgating the rule certain retailers and importers to stop is unlikely. Id. 2058(f)(3(D). The exceeds the Commission’s authority. sales of magnet sets, and requesting Commission also must find that the More specifically, several commenters recalls of magnet sets) as improper expected benefits of the rule bear a state that the Commission has no means to prohibit certain magnet sets. reasonable relationship to the cost of the authority to issue a rule that would The commenters suggest that rule and that the rule imposes the least result in a prohibition of all magnet sets rulemaking, rather than these burdensome requirements that would currently on the market simply because enforcement actions, is the appropriate adequately reduce the risk of injury. Id. certain consumers use magnets in a approach. 2058(f)(3)(E)&(F). manner that is inconsistent with the (Response 2)—Enforcement activities purpose intended for the product. Other are intended to remove products from E. Response to Comments on the commenters opine that the rule violates the market that present a substantial Proposed Rule consumers’ constitutional rights, product hazard. This rulemaking This section summarizes the issues including the right to freedom of proceeding is intended to establish raised by comments on the proposed expression through purchasing products requirements that magnet sets must rule and provides that Commission’s they desire, and that a rule that meet from the effective date of the rule responses to those comments. prohibits the sale of covered magnet sets going forward. As such, this rulemaking is drastically out of proportion to the proceeding seeks to impose 1. Oral Presentations risks presented by the product. Other requirements on all magnet sets subject to the rule that are sold after the rule On October 22, 2013, the Commission commenters characterize the safety becomes effective. The administrative provided the public an opportunity to standard as the government usurping proceeding and enforcement activities present views on the proposed rule in responsibility for the safety of children, address only the products currently or person before the Commission which they say should properly reside previously distributed by specific Presenters at the hearing included with children’s parents or caregivers. importers and retailers. representatives from the Consumer (Response 1)—The Commission has (Comment 3)—Several commenters Federation of American, Consumers the authority to issue a rule establishing opine that the Commission would be Union, the American Academy of performance requirements that a acting arbitrarily or capriciously in Pediatrics, and the National Association product must meet so that the product violation of section 706(2) of the of Pediatric Gastroenterology, does not present an unreasonable risk of Administrative Procedures Act (APA) Hepatology, and Nutrition. The medical injury to consumers. Section 7 of the by promulgating the rule; that the rule experts reported that the available CPSA authorizes the Commission to violates due process requirements; and research most likely reflects an promulgate consumer product safety that the Commission should hold a undercount of the true incidence of standards as performance requirements formal hearing under Sections 556 and injuries associated with magnet sets. or that require products to be marked or 557 of the APA, even if such a hearing The doctors also stated there was no accompanied by clear and adequate is not required statutorily. evidence suggesting that the victims’ warnings and instructions. The (Response 3)—The Commission is caregivers were negligent or otherwise requirements of a standard issued under following the rulemaking procedures set impaired at the time of the ingestion this provision must be reasonably forth in sections 7 and 9 of the CPSA incidents. Rather, the doctors noted that necessary to prevent or reduce an and in section 553 of the APA. The ingestion-related injuries, such as those unreasonable risk of injury associated commenters refer to section 556 and 557 associated with magnet sets, can be with the product. Determining whether of the APA. These provisions apply to experienced in households with the a product presents an unreasonable risk formal rulemaking. However, the most caring and well-educated of injury requires the Commission to magnet proceeding is governed by caregivers. The doctors also testified consider the costs and benefits of section 553 of the APA, which codifies that public education campaigns take a regulatory action. The regulatory the procedure for informal rulemaking. long time to show effects and that those analysis discusses that assessment (see By following the appropriate procedures campaigns would not be as effective in Section H of this preamble). The under the CPSA and the APA, the reducing magnet ingestion injuries as Commission must balance such factors Commission is providing the process the proposed rule, which they strongly as the severity of injury, the likelihood that is due. urged the Commission to finalize. of injury, and the possible harm the Lack of Product Defect 2. Written Comments regulation could impose on manufacturers and consumers. If (Comment 4)—Commenters point out The preamble to the NPR invited evidence demonstrates that misuse of a that magnet sets pose no risk of injury comments concerning all aspects of the product results in an unreasonable risk when used properly, that they function proposed rule. We received written of injury, the Commission has the as intended, and therefore, they are not comments from more than 5,000 authority to promulgate a rule defective. The commenters contend that commenters in response to the NPR. reasonably necessary to reduce or the improper use of a safe product by a Many of the comments contained more eliminate that risk. Certainly parents minority of consumers does not render than one issue, and many of the and caregivers must be responsible for the product defective and does not comments addressed the same or similar their children’s safety. However, as warrant promulgating a rule that would issues. Thus, we organized our discussed elsewhere, parents and remove the product from the market. responses by issue. All of the comments caregivers may not be aware of the (Response 4)—To promulgate a can be viewed at: www.regulations.gov, hazards that magnets present. Finally, consumer product safety standard, the

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Commission must find that the rule is available for purchase, even if used by do not fit within the small parts reasonably necessary to reduce an individuals to manage their attention cylinder would be allowed by the rule. unreasonable risk of injury associated deficit disorder or attention deficit Magnet sets that comply with the rule with the product. A product may hyperactivity disorder (ADD/ADHD) could serve some of the purposes of present an unreasonable risk of injury, symptoms. However, magnets that are magnet sets that are currently available. even if the product does not contain a not restricted by the rule would still be For example, Liberty Balls, marketed by fault, flaw, or irregularity that impacts available for purchase and perhaps Assemble, LLC, and sold in sets of eight the manner in which the product could be used to manage ADD/ADHD large spheres, are an example of a type functions. When assessing risk, CPSC symptoms. More generally, magnets are of magnet set that would meet the considers how consumers may actually but one of many objects, including performance requirements of the rule. use a product, not just the manner of various types of stress balls, ‘‘worry- Due to the large size of the Liberty Balls use intended by the manufacturer. For beads,’’ and chiming Baoding hand magnets, their uses are more limited example, the Commission’s cigarette exercise balls that are available for the than the magnet sets that are the subject lighter standard requires disposable and uses commenters cite. A variety of other of this rule. However, the existence of novelty lighters to meet child-resistance products are marketed specifically as Liberty Balls demonstrates the requirements to protect against the ‘‘fidget toys’’ to help children manage possibility that companies can develop misuse of lighters by children. 16 CFR ADD/ADHD symptoms. Staff is aware of magnet sets that meet the standard and part 1210. Similarly, the Commission’s one study in which the authors reported serve some of the uses of the magnet lawn mower standard includes successful use of simple stress balls to sets that fail the standard. requirements to guard against help sixth graders maintain focus in the Similarly, children’s magnetic toys consumers intentionally removing a classroom (Stalvey & Brasell, Summer provide an example of how magnet sets shielding safety device from the mower. 2006). In short, some substitutes for might be developed that would meet the 16 CFR part 1205. See Southland Mower magnet sets are available for standard. Children’s toy manufacturers v. Consumer Product Safety management of ADD/ADHD symptoms, have successfully adapted their Commission, 619 F.2d 499, 513 (5th Cir. and successful use of these substitutes magnetic construction toys since the 1980) (reviewing the Commission’s predates the availability of magnet sets. adoption of the requirements for toys lawn mower standard, the court stated: Magnet sets present the same hazards with magnets in the 2007 edition of ‘‘Congress intended for injuries to children with ADD/ADHD as they do ASTM F963, ‘‘Standard Consumer resulting from foreseeable misuse of a to children who do not have this Safety Specification for Toy Safety.’’ product to be counted in assessing condition. One comment summarizes a Following this example, individual risk’’). study of 38 cases of magnet ingestion. magnets with a flux index over 50 could Among those were two children, a 12- be permanently connected by rods or Impact of the Rule on the Availability of year-old and a 14-year-old with ADHD, other means, such that the resulting Magnet Sets for Certain Uses who swallowed strong magnets, magnetic objects are not small parts, i.e., (Comment 5)—Commenters state that although of a type different than those do not fit entirely within the small parts high-powered magnets have many typically found in magnet sets. The first cylinder. Such a magnet set might not laudable uses, including for education child required a laparoscopy; the other be a perfect substitute for current and research in sciences, such as child required extensive surgical magnet sets but could fulfill some of the biology, chemistry, and physics. Other intervention. One teacher who reported uses of current magnet sets, without commenters note that magnet sets are giving magnets to children with ADD/ posing the risk of injury or death. used therapeutically for individuals ADHD in his middle school classes (Comment 7)—Noting the popularity with autism or attention-deficit commented that he ‘‘needed to buy a of magnet sets for educational, disorder. These commenters presume new set every year,’’ suggesting the ease scientific, and therapeutic uses, some that the rule would eliminate from the with which the pieces are lost over time commenters claim that continued marketplace high-powered magnets and the difficulty adults may have demand for small, high-powered intended for such uses. maintaining control of the sets. magnets would result in a ‘‘black (Response 5)—Magnets have long (Comment 6)—Commenters note that market’’ for the products after the rule played a role in education. However, the magnet sets are fun stress-relievers and is promulgated. Some commenters state specific products that are covered by the have value as an artistic medium. The that there could be consumer-to- rule have been on the market only since commenters also note that sculpture consumer sales of used products, and 2008. The rule will cover only ‘‘any made from the magnet sets that are the others maintain that consumers would aggregation of separable magnetic subject of the rule constitute an art form be able to purchase magnet sets directly objects that is a consumer product that would be lost if the rule is from noncomplying companies intended, marketed or commonly used promulgated. (including firms located in China). A as a manipulative or construction item (Response 6)—The Commission is few commenters note that these black for entertainment, such as puzzle aware that magnet sets are used to market magnet sets are less likely to be working, sculpture building, mental relieve stress; and likewise, the sold with warning labels or other stimulation, or stress relief.’’ Magnets Commission is aware that some accompanying information related to that are not subject to the restrictions of individuals have developed a form of art hazards. the rule would continue to be available. with the magnets that would be affected (Response 7)—We acknowledge that For example, less powerful magnets are if the magnet sets used for this purpose there would continue to be a demand sometimes included in science kits to are prohibited. Although magnet sets of for magnet sets by some consumers, demonstrate magnetism. In addition, the type that have been involved in which could lead to increases in high-powered magnets that serve incidents and are currently purchased consumer-to-consumer sales and industrial and commercial needs would by consumers for stress relief and potentially black market sales of the not be covered by the rule. sculpture-making would not comply products. Furthermore, such sales are Products that meet the definition of with the rule, magnet sets made from probably less likely to be accompanied the ‘‘magnet sets’’ that do not comply weak magnets (i.e., with a flux index 50 by labeling and warnings that alert with this rule would no longer be kG2 mm2 or less) or from magnets that buyers to the hazards associated with

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the products. CPSC enforcement (Response 9)—The CPSC does not The commenters are correct that the activities and continued dissemination perform premarket approvals of rule, by prohibiting the sale of of consumer information on the hazards consumer products; and typically, the noncompliant magnet sets in the United of magnet sets might be necessary to CPSC will not engage in enforcement or States, may also result in some job reduce the future sales of noncomplying regulatory activity regarding a product, losses. However, the impact on job products. until information is received or losses is probably limited because (Comment 8)—Some commenters developed, which indicates that the magnetic balls generally are produced opine that magnet sets that comply with product may present an unreasonable outside the United States and are merely the size and flux index requirements of risk of injury to consumers. Reasonable packaged and/or distributed by U.S. the rule will lose their utility as parties may differ on the value to importers. manipulative desk toys. Other society of manipulative toys; however, Costs and Benefits of the Rule commenters suggest that weaker many types of manipulative toys exist magnets would be less safe because for children and adults. (Comment 11)—One commenter weaker, individual magnets could be opines that the preliminary regulatory separated more easily from the magnet Impacts of the Rule on Businesses and analysis overstates the societal costs of set during use, or separate more readily Jobs injuries from magnet sets because within the gastrointestinal system if (Comment 10)—Many commenters incidents involving other small magnets ingested while attached to other note that the rule would harm firms that are improperly attributed to the magnet magnets. import magnet sets and will result in sets that are the subject of the proposed (Response 8)—The intent of the rule lost jobs for employees of these firms. rule. In addition, this commenter opines that the injury costs used in the analysis is to reduce or eliminate the hazard (Response 10)—In the preliminary were higher than indicated by the presented by magnet sets currently on initial regulatory analysis, staff noted the market by requiring that magnet sets CPSC’s Revised Injury Cost Model that the economic impact of the rule and individual magnets for use with (ICM). would be most severe for the seven magnet sets that are small enough to fit (Response 11)—Both the initial and firms that account for the great majority within the small parts cylinder must final regulatory analyses acknowledge (perhaps more than 98%) of units sold have a flux index of 50 kG2 mm2 or less. that there is some uncertainty as of June 2012. Five of these importers The rule would still allow strong concerning the estimated annual reportedly derived most or all of their magnet sets with magnets that do not fit average of medically attended injuries, revenues from the sale of the magnet entirely within the small parts cylinder. noting that some of the cases described sets that do not meet the performance Magnetic products sold as toys that as ‘‘possibly’’ involving magnet injuries, requirements of the rule. The other two comply with the toy standard for actually may not have involved the children have included rods, balls, and leading importers of magnet sets magnets that are the subject of the rule. various geometric shapes that do not fit reportedly had fairly broad product Hence, it is possible that the analyses within the small parts cylinder. Such offerings, which could lessen the overstate the societal costs associated products offer interesting entertainment, severity of the economic impact of the with the magnets included in the rule. such as sculptures and construction rule. As a result of compliance activity The final regulatory analysis also points activities, but they are much larger and pursued by the Commission’s Office of out that there were an additional 230 safer than the subject magnet sets Compliance and Field Operations, four NEISS cases (representing about 1,500 intended for adults. Another possibility of these seven importers agreed emergency department-treated injuries would be to invent a magnet set voluntarily to stop selling magnet sets annually) in which the magnet type was composed of magnets with a flux index that would not be compliant under this classified as ‘‘unknown or other.’’ Thus, below 50 kG2 mm. Because there rule. One additional firm, Maxfield & to the extent that this category of currently are no magnet sets on the Oberton Holdings, LLC, ceased incidents involved magnets covered by market with magnets that have a flux operations. This firm (marketer of the rule, the analyses would tend to index of less than 50 kG2 mm2, we do ‘‘Buckyballs’’) is believed to account for understate the societal costs associated not know how such magnets would nearly 90 percent of magnet set sales with the magnets subject to the rule. perform when used in the same way through June 2012. Only one of the Therefore, given the uncertainty currently available magnet sets perform. seven small importers, Zen Magnets, concerning the societal costs associated Magnet sets that comply with the LLC, continues to market magnet sets with the magnet sets, the analyses could requirements of the rule would contain that are subject to the rule. This firm be underestimating or overestimating magnets that are too large to be apparently derives all of its revenues the societal costs. swallowed easily or would have very from the sale of magnet sets. Unless the Regarding the commenter’s assertion weak attraction forces that would not firm can successfully market magnet that injury costs used in the preliminary pose the same ingestion hazards as sets that comply with the rule or other regulatory analysis were higher than magnet sets currently on the market. products, the firm might go out of indicated by the ICM, we note that the Review of incident data does not business when the rule takes effect. commenter fails to take into account indicate that any injuries have been A large share of magnet sets have been updates to the ICM based on new and caused by magnets with flux index sold directly to consumers by importers improved cost databases. The ICM is values below 50 kG2 mm2. who used their own Internet Web sites fully integrated with NEISS and (Comment 9)—Some commenters or other Internet shopping sites, but the provides estimates of the societal costs disparage the intended uses of magnet rule would also affect retailers of the of injuries reported through NEISS. The sets, calling them, for instance, products, whether the products are sold major aggregated components of the ‘‘mindless desk ornaments,’’ online or physically in stores. However, ICM include: Medical costs; work ‘‘a diversion,’’ and ‘‘frivolous items.’’ these retailers are not likely to derive losses; and the intangible costs These commenters cite the high severity significant proportions of total revenues associated with lost quality of life or of the injuries associated with magnet from sales of affected magnet sets. pain and suffering. The ICM is sets and express dismay that the CPSC Accordingly, the impacts on individual described further in section H.3.a of the ever allowed them to be sold. firms should be minimal. preamble. The commenter also does not

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take into consideration that the cost substantially if magnet sets must communications activities, some estimates in the preliminary regulatory comply with the rule. (See Section H of commenters misunderstand the hazard. analysis were age and sex specific and this preamble). Many commenters seem unaware that involved only those under the age of 15 (Comment 13)—Commenters argue the majority of victims are older who had ingested magnets from magnet that high-powered magnet sets should children and teens, and the commenters sets. Furthermore, the commenter not be prohibited because the number of focus exclusively on the risk to young apparently also includes injury costs injuries is low—43 reported injuries children. Similarly, commenters tend to associated with the diagnosis category possibly involving magnet sets during mention magnets as a choking hazard, ‘‘foreign body,’’ i.e., foreign objects the period from January 2009 to June comparable to choking on foods, such as propelled into the victim’s body, which 2012—considering that approximately hot dogs and non-food small parts. In is a different hazard pattern than 2.7 million magnet sets have been sold reality, choking is not the injury ‘‘ingested foreign objects.’’ The costs of since 2009. These commenters also note mechanism related to magnets. The injuries resulting from foreign objects that there have been no fatalities ways that children and teens interact being propelled into a victim’s body are associated with the product. with magnets are not obvious and seem only about half of the costs of injuries (Response 13)—The number of unclear to many commenters. For associated with ingested foreign objects. incidents reported to the Commission, example, some commenters write Finally, the commenter applies now totaling 100 cases through June 24, derisively about ‘‘people letting their inappropriate inflators in adjusting the 2014, cannot be used to estimate the children eat magnets.’’ However, most injury cost estimates to 2011 dollars. number of injuries in the U.S. incidents are unwitnessed, and based on The Commission maintains that the population because case reports are data from choking and poisoning estimated injury costs associated with anecdotal and are not based on a incidents in which children ingestions of small, high-powered probability based sampling design. The intentionally ingest non-food items, it is magnets in the preliminary regulatory anecdotal incidents reported to CPSC likely that only the youngest children analysis and final regulatory analysis constitute a minimum number of voluntarily swallow magnets. This is involved proper application of the ICM. incidents in the U.S. However, the because choking on non-food items incidents reported to CPSC through occurs predominantly among children Risk and Severity of Injury hospital emergency departments and younger than three years, and ingestion (Comment 12)—The Commission captured in the NEISS database can be of poisonous substances declines as received a significant number of used to estimate the number of children approach five years of age. comments from health care incidents nationwide because NEISS (Comment 15)—Other commenters professionals with personal experience data come from a probability based point out that the Commission has not in treating children who either narrowly stratified random sample of U.S. prohibited certain products, such as avoided, or actually sustained, injuries hospitals with emergency departments. trampolines, balloons, and hazardous following ingestion of small, high- An analysis of incidents obtained household chemicals, which powered magnets. through the NEISS estimates that 2,900 commenters contend present a greater Virtually all comments received from possible magnet set, emergency risk of injury to children than magnet medical professionals express support department-treated ingestions occurred sets. They assert that this weighs against for a rule eliminating magnet sets of the in the United States from January 1, a rule prohibiting certain magnet sets type that have been involved in 2009 through December 31, 2013. This that do not meet the rule’s performance incidents. The medical professionals amounts to approximately one incident requirements. point out that injuries caused by the per 930 magnet sets. We do not agree (Response 15)—Magnet sets, and the ingestion of high-powered magnets are that this is a low figure for injuries. In hazard patterns associated with them, often difficult to diagnose because of the addition, we are aware of one fatality are quite different from other products. inability of standard diagnostic tools to involving a 19 month-old female, who Because of these differences, demonstrate that the ingested item is a died from ischemic bowel caused by the comparisons of injury rates between magnet; there are similarities between ingestion of magnets from a magnet set. magnet sets and other products are not symptoms resulting from magnet Furthermore, the benefits of the rule, meaningful. Key differences include: the ingestion injuries and less serious notwithstanding the public’s desire for obviousness of the hazard; the severity conditions like the flu; and the victims current magnet sets that do not meet the of the resulting injury; the difficulty in are unable or unwilling to communicate rule, bear a reasonable relationship to diagnosing the resulting injury; the to their caregivers or medical personnel the costs of the rule. numbers of products in use; the breadth that they have ingested magnets. The (Comment 14)—Several commenters of products covered in the product medical professional commenters point out that the dangers posed by the category; the age of the victims express concern with the rapidly ingestion of small, high-powered sustaining injuries; and the existence of growing number of cases and note that magnets are not obvious. requirements to address the hazard. magnet ingestions often result in rapid (Response 14)—Staff agrees that the and severe injuries with devastating and unique hazard resulting from the Responsibility of Caregivers for Injuries costly long-term consequences. ingestion of small, strong magnets is Resulting From Magnet Ingestion (Response 12)—The Commission is unlikely to be obvious to the general (Comment 16)—Several commenters aware of the severity of the injuries that public. People are generally aware of the claim that the incidents involving often result from the ingestion of small, choking hazard posed by small balls and magnet sets are caused by negligent high-powered magnets from magnet sets other small parts, but they do not caregivers, who should supervise their and the difficulties frequently understand how the characteristics of children better. However, other encountered by medical professionals in magnets can cause injuries that are commenters opine that caregiver diagnosing and treating these injuries. different from, and more severe than, supervision was not a relevant factor in The Commission is also aware that there swallowing another small object. determining the causation of the are costs associated with the treatment Despite the publicity and response incidents. of injuries resulting from the ingestion generated by the NPR, as well as the (Response 16)—The issue of caregiver of these magnets that will be reduced Commission’s compliance and supervision is related to caregiver

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compliance with warnings and other (Response 17)—As discussed in the example, the cost of compliance hazard communications. Consumers Human Factors staff memorandum that associated with magnet-ingestion may be aware of a hazard, but they may was part of the NPR briefing package, warnings is high. ‘‘Cost of compliance’’ not make changes in their behavior that warnings are widely recognized as a less is defined as any cost, such as time, would avoid the hazard. Securing or reliable approach to controlling hazards effort, or inconvenience that is required preventing access to magnet sets would than design or guarding approaches. to comply with a warning; compliance be especially difficult regarding older Unlike these latter approaches, which is negatively associated with cost. The children and adolescents because they directly limit hazard exposure, warnings warnings on the packaging and are strongly independent and and other hazard communications must instructional material for some magnet resourceful. Expecting caregivers to first educate consumers about the sets instruct consumers to secure the supervise these children constantly is hazard and then persuade consumers to magnets and keep them away from all unrealistic. Magnet ingestions can change their behavior to avoid the children ages 14 years and younger. As happen quickly, and the Commission hazard. In addition, to be effective, evidenced in the comments, many believes that it is also unrealistic to warnings must rely on consumers to consumers are likely to reject these expect caregivers to maintain behave consistently, regardless of warnings as lacking credibility. We continuous, focused attention on situational or contextual factors (e.g., recognize that caregivers who receive younger children, especially children at fatigue, stress, social influences) that warnings about magnet sets may attempt the upper end of the at-risk age range. influence precautionary behavior. to keep these products out of young Indeed, research has found that people The Commission’s position is not that children’s hands. However, warnings cannot be perfectly attentive, warnings are uniformly ineffective. are likely to be particularly ineffective particularly over long periods of time, However, consumer compliance with among caregivers with older children regardless of their desire to do so.3 warnings depends strongly on the and adolescents because caregivers Caregivers are likely to be distracted, at specific circumstances surrounding the would not expect these children to least occasionally, because they must hazard. Several factors suggest that mouth toys and other objects as perform other tasks, are responsible for compliance with warning labels related frequently as younger children. supervising more than one child, are to magnet sets is likely to be low Furthermore, even if caregivers attempt exposed to other salient but irrelevant because consumers may not notice and to comply with warnings about the stimuli, or are subject to other stressors. attend to the warnings. Exposure to magnet-ingestion hazard, preventing a Moreover, caregivers are unlikely to ingestion warnings is likely to be very child’s access to these magnets still maintain high levels of vigilance, unless limited because: (1) The individual might prove quite difficult. The time they believe that such vigilance is magnets are too small to contain on- and effort to secure the product after necessary. If caregivers who own product warnings; (2) the magnet sets do every use, and the difficulties associated magnet sets believe they have properly not inherently require consumers to with trying to identify a suitably secure secured the sets or think that their return the magnets to a storage case or location to store the product, may deter children are not aware of the sets, other package after every use, in consumers from heeding the warnings. caregivers are unlikely to assume that packaging that might include a warning; Some adolescents have cognitive and constant supervision is needed. and (3) the magnet sets can be motor skills similar to an adult’s, Furthermore, children may be exposed manipulated without the necessity of making it extremely challenging to keep to these magnet sets in locations where referring to instructions that might the product out of adolescents’ hands, caregivers cannot supervise the children include a warning. In addition, the despite caregivers’ efforts. Although or do not have direct control over the nature of the magnet-ingestion hazard adolescents also may be capable of amount of supervision required, such as and the resulting injuries can be understanding warnings about magnet at school or in other households. difficult to convey to consumers; and ingestions, their behavior is influenced Adolescents, in particular, are strongly the resulting injuries have been strongly by social and peer pressures, independent, and it is unrealistic to misunderstood even by medical and adolescents are known to test limits 4 expect caregivers to supervise personnel and by commenters to the and bend rules. Thus, warnings against adolescents constantly. NPR, some of whom erroneously using magnets to simulate tongue or identify choking on the magnets as the facial piercings are unlikely to be very Alternatives to the Rule: Warnings and hazard presented by this product. effective among this age group, unless Education Programs Without a clear understanding of this such piercings are viewed as socially (Comment 17)—Many commenters information and how magnet ingestions unacceptable among their peers. state that current warnings are sufficient differ from other small-part ingestions, Educational programs may offer more to address the risk of injury presented consumers are unlikely to comply with opportunities to present the information by magnet sets, or they express the a warning. in varied ways and in greater detail than belief that more robust and prevalent We acknowledge that developing is possible via a warning label. warnings and educational programs are understandable warnings aimed at 4 a better alternative than a rule parents and other caregivers may be Brown, T., & Beran, M. (2008). Developmental possible; and we acknowledge that stages of children. In R. Lueder & V. J. B. Rice (Eds.), prohibiting products that do not meet Ergonomics for children: Designing products and the rule’s performance requirements. caregivers who receive such warnings places for toddlers to teens (pp. 13–30). New York: Some commenters state that the may attempt to keep these products out Taylor & Francis. Kalsher, M. J., & Wogalter, M. S. of the hands of young children. (2008). Warnings: Hazard control methods for assumption that warnings do not work caregivers and children. In R. Lueder & V. J. B. Rice undermines past safety standards However, as noted, consumer compliance with warnings depends (Eds.), Ergonomics for children: Designing products accepted by the CPSC and, in fact, calls and places for toddlers to teens (pp. 509–539). New into question the entire safety- strongly on the specific circumstances York: Taylor & Francis. Zackowitz, I.B., & monitoring process. surrounding the hazard. Several factors Vredenburgh, A.G. (2005). Preschoolers, suggest that compliance with warning adolescents, and seniors: Age-related factors pertaining to forensic human factors analyses. In Y. 3 Wickens, C. D., & Hollands, J. G. (2000). labels related to magnet sets is likely to I. Noy & W. Karwowski (Eds.), Handbook of human Engineering psychology and human performance be low, even if consumers understand factors in litigation (Chapter 35). Boca Raton, FL: (3rd Ed.). Upper Saddle River, NJ: Prentice Hall. the hazard and its consequences. For CRC Press.

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However, mere knowledge or awareness gasoline, cleanser, toilet bowl cleaner, poisonings with various products (e.g., of a hazard is not enough. Such and ammonia. Younger children, Rodgers, 2002), non-use and incorrect programs suffer from limitations similar particularly those under 3 years of age, use of CR closures on products to those of warnings because, like all may swallow a number of magnets at a containing chemicals or hazard communications, the time before reacting to any aversive pharmaceuticals—products consumers effectiveness of educational programs agent applied to the magnets. are more likely to understand to be depends upon the affected consumers, Aversives may be a more effective hazardous (as opposed to strong magnet not only in terms of receiving and deterrent for older children and young sets)—can result in many poisonings understanding the message, but also in teens, presuming these children are annually among children younger than being persuaded to heed the message. aware that the agent has been applied to 5 years old. Furthermore, CR packaging, Magnet sets present an especially the magnets and they are familiar with referred to as ‘‘special packaging’’ under difficult challenge for public education its taste. For older children who are not the Poison Prevention Packaging Act, is programs because the hazard is obscure familiar with the taste of an aversive, designed to be significantly difficult for and difficult to convey in simple terms. the mere presence of the agent would children under 5 years of age to open. Furthermore, teenagers are a significant not deter mouthing the magnets or 15 U.S.C. 1471(4). Thus, CR packaging part of the at-risk population, and they trying to use them to mimic pierced lip is an impractical approach for older provide distinct challenges to the or tongue jewelry. Older children and children, whose cognitive and motor effectiveness of public education teens may also give magnets to others to skills overlap those of adults. programs. Thus, even education try as a prank. Preteens and teens are Flux Index programs that clearly communicate the prone to test what they have been told, hazard to consumers will not particularly when what they have been (Comment 20)—One commenter necessarily motivate appropriate told involves restrictions of any sort. questions the relationship of the flux behavioral change or reduce the Thus, warnings that the products taste index (FI) to anatomical data, which the frequency of incidents. bad may not prevent children in these commenter considers to be most age groups from tasting the magnets. germane to the hazard. The commenter Alternatives to the Rule: Bitterants (Some proportion of the population, requests that the rule be modified to (Comment 18)—A small number of possibly as high as 30 percent, may be redefine the criteria, ‘‘by relying on commenters discuss bitterants (also insensitive to bitterants such as objective anatomical data tied to the known as aversives) as an option. Some denatonium benzoate.) However, potential risks associated with conclude that adding a bitter coating to children are likely to reject magnets swallowing injuries and refine the magnets would be an effective treated with bitterants, and the bitterant testing protocol to isolate the field alternative to the prohibition of magnet may indeed deter repeated attempts strength and/or attach forces that can sets that do not meet the rule’s among most children. reasonably be expected to develop at the performance requirements. A few Ingestions could still occur even if a distances reflected by anatomical data.’’ commenters assert that the method is bittering agent is found effective for this Referencing an ultrasound study, the unproven and question that approach purpose. Ingestions may be intentional commenter asserts that the minimal gut for various reasons. among the youngest children, but wall thickness in children is 0.5 mm, (Response 18)—In principle, adding ingestions are likely to be accidental and the commenter suggests that when an aversive agent to a product is a among older groups. The power of the measuring the magnet maximum surface rational approach to reducing the risk of magnetic forces inherent in these gauss reading, instead of measuring at a mouthing and ingestion. Laboratory products can cause magnets to move probe distance of 0.25 to 0.51 mm above studies have shown this approach to be erratically as pieces repel or attract, and the magnetic pole surface, as currently effective among children and adults in movement of magnets toward the back required in ASTM F963–11, it is more deterring repeated ingestion of various of the throat could trigger the reflex to appropriate to base the measuring substances. Yet, real-world swallow the magnets before the person distance on the minimum gut wall investigations have not demonstrated can remove them. thickness. The commenter suggests that the effectiveness of bitterants in using a probe separation distance of 1.0 preventing poisonings.5 CPSC staff’s Alternatives to the Rule: Child-Resistant mm (2 × 0.5 mm = 2 sections of gut wall) 1992 final report of its study of the topic Packaging makes more sense because 1 millimeter (http://www.cpsc.gov/library/foia/ (Comment 19)—Several commenters ‘‘is the magnetic field strength at that foia99/os/aversive.pdf. at p. 3) state that child-resistant (CR) packaging critical distance that may bear a rational concluded that because bitterants do not requirements are a better alternative relationship to injuries.’’ deter initial ingestion, ‘‘[a]versive agents than the proposed performance (Response 20)—Commission staff are unlikely to protect children from requirements. However, others believe agrees that the strength of the magnet being harmed after ingesting . . . that such requirements would be field and the separation of the magnets, substances that can injure or kill after ineffective in reducing or eliminating or lack thereof, are important factors one or two swallows.’’ the risk of injury. contributing to the risk of injury posed Bitterants are least likely to be (Response 19)—CR packaging could by any strong magnet. The effective among young children who be devised to make an enclosed magnet gastrointestinal (GI) system is folded on gain access to high-powered magnets. set inaccessible to most young children. itself within the abdominal cavity, and Despite rejecting bitter substances in However, compliance with CR during transit through the GI system, testing environments, children in home packaging is likely to be low and there are many opportunities for settings, nevertheless, frequently ingest inconsistent; and the effectiveness of magnets in different GI locations to pass unpalatable substances, such as this approach depends on the caregiver nearby to each other and then interact and other users securing the magnets in when separated by only the thin gut 5 Cf. White, N. C., Litovitz, T., Benson, B. E., the CR packaging after every use. This walls. Commission staff believes that Horowitz, B. Z., Marr-Lyon, L., & White, M. K. (2009). The impact of bittering agents on pediatric is behavior that we consider unlikely to measuring the maximum surface gauss ingestions of antifreeze. Clinical Pediatrics, 48(9), occur. Although CR closures have been reading for the FI input at a set distance 913–921. shown to be effective in reducing of 1.0 mm (equivalent to two

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thicknesses/layers of gut wall) is that the established method continues to (Response 23)—The commenter’s oversimplistic and inappropriate, unless be appropriate. claim that a process exists that could be the maximum surface gauss reading (Comment 22)—Several commenters used to make ‘‘safe’’ magnet sets, even measured at that 1.0 millimeter distance question whether the rule is adequate if the flux index measurement of is essentially zero. for assessing the hazard posed by an individual magnets is greater than 50 Although the suggested value of 1.0 aggregation of individual magnets, each kG2 mm2, is based on proprietary millimeter is anatomically valid, it is of which has a flux index of 50 or less. technology, which, to our knowledge, not particularly meaningful in terms of (Response 22)—The staff has not been applied to any magnet sets the injury mechanism. This is because memorandum included in the NPR currently on the market. The commenter briefing package acknowledged conventional magnets do not ‘‘wait’’ to concedes that he ‘‘has not fully analyzed concerns with the existing ASTM F963 get within 1 millimeter of each other the use of a densely coded pattern’’ on before they begin to interact, and the gut standard method regarding aggregated small cubes or spheres and claims only wall cannot block magnetic forces. magnets, as follows: ‘‘A toy with that ‘‘early indications suggest that Rather, once a pair of magnets comes multiple weak small part magnets could dramatic improvements to the magnetic within a distance where the extent or present an issue that the existing ASTM reach of their magnetic fields allows F963 magnet requirements do not field * * * can be achieved’’ using the them to interact, the result is near- address, namely: stacking or stringing of proprietary technology. These instantaneous attraction, with magnets. . . . when these small part statements indicate that the commenter consequent near-instantaneous magnets are combined, they could has not applied this technology to small, compression of any trapped tissues. create a(n aggregated) magnet with an high-powered magnet sets or even Although the thin wall of the small effective flux index over 50 kG2 mm2 concluded that such an application is intestine can be conveniently defined depending upon their characteristics.’’ scientifically possible or economically anatomically by its thickness, the tissue (Notice of Proposed Rulemaking for feasible. CPSC is not aware of any offers minimal resistance to the Hazardous Magnet Sets, Staff Briefing magnet set products on the market that compression forces of the magnet. Thus, Package, pp. 54¥55). Individual are comprised of magnets with the tissue trapped between magnets may magnets with a flux index of 50 kG2 multipole surfaces using the be compressed so that the distance mm2 or less (which currently do not commenter’s technology. Moreover, it is between the magnets is much smaller exist in the market) would be smaller not likely that this process will be than 1.0 millimeter. The compression and more difficult to manipulate and applied to small, high-powered magnet forces deprive the tissue of its blood have less attraction force than magnets sets in the foreseeable future. Thus, the supply, and they also squeeze out the in existing magnet sets. Individual Commission does not believe that any tissue fluids, rapidly reducing the gut magnets with a flux index of 50 kG2 exemption for these types of magnets is wall thickness to micron values, and mm2 or less could be mounted necessary or appropriate, particularly essentially mummifying the tissue in permanently or attached side-by-side to because currently, no Polymagnet® situ. The measurement distance for the create a magnetic object with multiple magnet sets exist that could be tested to FI in the rule is closer to this negligible magnetic poles on one surface. Doing so determine whether such magnet sets distance than the 1.0 millimeter would create a multipole magnetic present an unreasonable risk of injury. distance that the commenter suggests; object that has a higher attraction force (Comment 24)—The same commenter and therefore, the measurement distance than the individual magnets on its for the FI in the rule is more appropriate surface. Because there currently are no also states that the flux index for defining powerful magnets capable magnet sets on the market with magnets measurement method is imprecise of causing GI injuries. that have a 50 kG2 mm2 flux index or because it provides a range of acceptable (Comment 21)—Several commenters less, we do not know how they would distances between the gauss meter and question whether a flux index value of perform when used as a part of a magnet the magnetic surface being measured. 50 kG2 mm2 is low enough to prevent set. (Response 24)—The flux index harm. (Comment 23)—One commenter measurement method specifies the use (Response 21)—The development of disagrees with the proposed flux index of a gauss meter and an axial probe with the flux index requirement that appears method, stating that the commenter’s a distance between the active area in ASTM F963, Consumer Safety proprietary technology could be used to (diameter of 0.76 +/¥ 0.13 mm) and Specification for Toy Safety, which is make ‘‘safe’’ magnet sets, even if the probe tip of 0.38 +/¥ 0.13 mm. This now a mandatory CPSC standard, was flux index measurement of individual means the magnetic flux density is outlined in the NPR. (77 FR 53781–82, magnets is greater than 50. The measured at a distance of between 0.38 September 4, 2012). ASTM F963–11 commenter uses a proprietary millimeters and 0.51 millimeters above defines a ‘‘hazardous magnet’’ and a technology to magnetize the surface of the magnet surface. The tolerance cited ‘‘hazardous magnet component’’ as one a single magnet to create multiple poles accounts for variations in the length of that has a flux index greater than 50 kG2 (positive and negative regions) on the the axial probe tip, which is a function mm2 and that is a small object. ASTM surface of a single magnet. The of the equipment used, and therefore, set the flux index value at 50 kG2 mm2, commenter refers to these proprietary does not constitute a precise value. by measuring the weakest magnets in magnets as ‘‘Polymagnets.®’’ Essentially, children’s toys that were suspected of this process creates a permanent F. Description of the Final Rule causing injuries, and then adding a aggregation of north and south poles in safety factor. Review of incident data the surface of a single magnet. The The Commission is issuing a rule related to children’s toys and magnet commenter requests that the establishing a standard for magnet sets sets does not indicate that any injuries Commission narrow the scope of the and individual magnets that are have been caused by individual magnets rule to apply only to magnet sets marketed or intended for use with or as with flux index values below 70. CPSC comprised of magnets having no more magnet sets. This section of the staff will continue to monitor incidents than two magnetic pole regions on any preamble describes the rule, including and seek information about the lower- exposed magnet surface, thereby, differences between the proposal and bound limits of the injury mechanism so exempting multiple pole magnets. the final rule.

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1. Scope, Purpose, and Effective Date— as well as young children. As the product Web sites stating that a product, § 1240.1 incident data make clear, both teens and regardless of whether it is intended or This section of the final rule states young children have been harmed when marketed by the manufacturer as such, that the requirements in 16 CFR part swallowing magnets from magnet sets. was, in fact, being used as a 1240 are intended to reduce or eliminate Because the term ‘‘children’’ could be manipulative or construction item for an unreasonable risk of injury to subject to interpretations that might entertainment, such as puzzle working, consumers who ingest magnets that are exclude teens, the final rule uses the sculpture building, mental stimulation part of magnet sets and individual term ‘‘consumers.’’ or stress relief. This change clarifies that the common usage of a firm’s magnet magnets that are marketed or intended 2. Definitions—§ 1240.2 products could be a consideration in for use with or as a magnet set. The This section of the final rule provides determining whether the magnets are standard applies to all magnet sets, as definitions for the terms ‘‘magnet set’’ intended for use as manipulatives for defined in § 1240.2, and relevant and ‘‘individual magnet.’’ The final rule entertainment, irrespective of the firm’s individual magnets manufactured or modifies the proposed definition of stated intentions. imported on or after the date 180 days ‘‘magnet set’’ to clarify certain aspects of The final rule definition replaces the after publication of the final rule. the definition. The Commission does term ‘‘desk toy’’ with ‘‘item’’ to prevent Individual magnets. The scope of the not intend for these modifications to excluding magnet sets from the scope of final rule has been revised from the change the scope of the rule from the the rule if a particular product is not proposal so that the rule explicitly proposal, but rather, to describe more explicitly labeled or expressly marketed covers magnets that are sold clearly the products subject to the rule. as a desk toy. individually and are intended or The final rule also adds a definition for The final rule specifies factors that are marketed to be used in the same way as the term ‘‘individual magnet.’’ relevant in determining the intended magnet sets or as a part of a magnet set. Definition of ‘‘magnet set.’’ To uses of a magnet set. These are factors The Commission is aware of one firm respond to comments on the NPR and that Commission staff may consider in that sells magnet sets and also sells to provide greater precision, the determining whether a product falls single magnet spheres at a per-magnet Commission has modified the definition under the definition of ‘‘magnet set.’’ price through the same Web site on of ‘‘magnet set’’ in the proposed rule by: Explicitly stating these factors in the which the firm promotes and sells sets • Removing the word ‘‘permanent’’; rule should provide clearer direction to of magnets. This firm sells individual • Replacing the phrase ‘‘intended or firms and the public about what magnet spheres for 10 cents each and marketed by the manufacturer products will be covered by the rule. We allows customers to purchase up to primarily’’ with the phrase ‘‘intended, may consider the manner in which the 1,152 magnets in a single order. The marketed or commonly used’’; individual magnet or magnet set is firm charges a shipping rate of $5.00 for • Replacing the word ‘‘desk toy’’ with promoted, marketed, and advertised. As any quantity of individual magnets ‘‘item’’; and part of this inquiry, staff may review the purchased. Another firm, Star, which • Specifying factors that could labeling and packaging of the product, recently settled an administrative indicate whether a magnet set meets the information on the firm’s Web site about complaint with the Commission, sold definition. intended uses of the product, individual magnet spheres for between The final rule definition removes the information in other promotional 9 and 19 cents each (depending on the word ‘‘permanent’’ from the phrase materials, and where and how the number ordered), and allowed ‘‘separable, permanent magnetic product is displayed at retail stores or customers to purchase up to 10,000 objects’’ because the word ‘‘permanent’’ on the Internet. In addition, we may magnets in a single order. is superfluous. Any magnet, whether it consider the uses for which the product Because the proposed rule described maintains its magnetic strength is commonly recognized by consumers. the scope of the rule as covering permanently or not, can cause serious Information provided by consumers and aggregations of magnets, magnets that damage to intestinal tissue, if ingested. firms, injury reports, and consumers’ are sold individually, arguably would The final rule replaces the phrase, online reviews or comments for the not be subject to the requirements of the ‘‘intended or marketed by the product are examples of sources that safety standard under the scope manufacturer primarily,’’ with the could be useful to determine what provision, as proposed. Thus, under the phrase: ‘‘intended, marketed or consumers consider to be the uses of the proposed scope, firms might be able to commonly used.’’ The revision seeks to product. circumvent the safety standard prevent a manufacturer or importer of In developing this part of the ‘‘magnet requirements simply by pricing and magnet sets from avoiding the rule by set’’ definition, the Commission selling magnet spheres individually that simply stating in marketing and other considered regulatory and statutory are intended to be used as part of an materials that the magnets are intended provisions that describe factors to be aggregation of magnets as a magnet set. for uses other than those specified in the used in determining the intended use of Under the final rule, all magnet spheres definition. For example, this a product. The Commission’s small intended for use as magnet sets, as modification will preclude firms from parts regulation specifies factors defined by the rule, are subject to the claiming that their products are relevant to a determination of which requirements of the safety standard, intended as science kits to avoid the toys and other articles are intended for whether they are sold individually or in rule, if, in fact, the products are use by children under 3 years of age. 15 the aggregate. commonly used as magnet sets (i.e., as U.S.C. 1501.2(b). The small parts Changing the word ‘‘children’’ to a manipulative or construction item for regulation states: ‘‘In determining which ‘‘consumers.’’ The proposed scope entertainment, such as puzzle working, toys and other articles are intended for section stated that the rule is intended sculpture building, mental stimulation, use by children under 3 years (36 to reduce or eliminate an unreasonable or stress relief). Common uses may be months) of age, for purposes of this risk of injury to children. The final rule indicated by information found in regulation, the following factors are changes the word ‘‘children’’ to consumer reports to the CPSC, firm relevant: the manufacturer’s stated ‘‘consumers’’ to clarify that the rule is reports to the CPSC, injury reports, and intent (such as on a label) if it is a intended to address risks posed to teens consumer comments/reviews posted on reasonable one; the advertising,

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promotion, and marketing of the article; magnets, as defined in the rule, must the magnet that is perpendicular to the and whether the article is commonly meet the requirements. The proposed axis of its magnetic poles. recognized as being intended for rule set out the small parts and the flux In the NPR, we noted that the children under 3.’’ Id. The definition of index requirements in two subsections products at issue are typically ‘‘children’s product’’ in the CPSA lists of § 1240.3. The final rule consolidates aggregations of magnets, rather than factors to consider in determining these provisions into one section. individual magnets that often separate whether a product is primarily intended The small parts cylinder referenced in from toys. We also observed that when for children 12 years of age or younger. the rule is specified in 16 CFR part magnets are aggregated, their magnetic 15 U.S.C. 2051(a)(2). The ‘‘magnet set’’ 1501—Method for Identifying Toys and strength may increase. We requested definition draws from both the Other Articles Intended for Use by comments on whether it may be regulatory definition in the small parts Children Under 3 Years of Age Which desirable to develop a method for rule and the statutory definition of Present Choking, Aspiration, or testing the strength of aggregated ‘‘children’s product’’ to specify factors, Ingestion Hazards Because of Small magnets in addition to the method for which include the manufacturer’s stated Parts. If an object fits completely within testing the strength of individual intent, information provided with or on the small parts cylinder, this indicates magnets. We received no comments the product, and the commonly that the object is small enough to be proposing methodologies for testing the recognized uses of the product. ingested. If a magnet that is part of a strength of an aggregation of magnets. The definition does not include other magnet set (or an individual magnet, as Furthermore, because there are no magnetic products, such as toys defined) is too large to fit within the magnet sets currently on the market intended for children and jewelry. small parts cylinder, the magnet meets with magnets that have a 50 kG2 mm2 Magnets that are part of a toy intended the standard, regardless of the magnet’s flux index or less, we believe that the for children are already covered by the flux index. aggregation scenario is adequately requirements in ASTM F963–11, which Small magnets (i.e., those that fit addressed in the rule. is a mandatory CPSC standard. The within the small parts cylinder) that are definition also does not include magnets part of a magnet set (and individual 5. Findings—§ 1240.5 intended for industrial or commercial magnets, as defined) must have a flux In accordance with the requirements applications, such as motor index of 50 kG2 mm2 or less. This limit of the CPSA, we have made the findings components, magnetic bearings, is based on the level that is specified in stated in section 9 of the CPSA. The magnetic couplings, welding clamps, oil ASTM F963–11. As discussed in the findings are discussed in section N of filters, disc drives, loudspeakers, preamble to the NPR (77 FR 53781), the this preamble. headphones, microphones, flux index of a magnet is an empirical instrumentation, switches, and relays. value developed by ASTM to estimate G. Alternatives Definition of ‘‘individual magnet.’’ the attraction force of a magnet. The flux The Commission has considered The final rule adds a definition of index limit of 50 kG2 mm2 was alternatives to reduce the risk of injury ‘‘individual magnet.’’ As discussed developed by ASTM, with CPSC staff’s related to the ingestion of magnets above, the Commission is aware that the participation, to address injuries contained in magnet sets. However, as firm that currently sells magnet sets that resulting from strong magnets that discussed below, the Commission does would be prohibited by the rule also separate from toys. Because the magnets not believe that any of these alternatives sells individual magnets for use with from toys involved in incidents had flux would adequately reduce the risk of magnet sets. The Commission seeks to index measurements greater than 70 kG2 injury. prevent firms from circumventing the mm2,the ASTM working group chose a rule by selling individual magnets for flux index of 50 kG2 mm2 as a cutoff 1. Voluntary Recalls the same uses as the magnet sets that because that value was significantly Although most of the companies that have been involved in incidents, and at below the value for the magnets manufacture or import magnet sets have the same time claiming that the involved in incidents. voluntarily agreed to stop selling (and in individual magnets are not subject to some cases recall) these products, and 4. Test Procedure for Determining Flux the rule because the magnets are not several retailers have agreed to recall Index—§ 1240.4 sold as sets. The individual magnets and stop sale, the Commission has been covered by the rule are only the magnets This section of the rule describes how unsuccessful in negotiating voluntary that are intended or marketed for use to determine the flux index of magnets recalls and stop sales with one company with or as a magnet set. The that are part of a magnet set. If the that continues to market magnet sets. Commission does not intend to cover magnet set contains more than one Pursuing voluntary recalls with current the many types of individual magnets shape or size of magnet, at least one of and possibly future manufacturers and that are sold for other uses, such as each shape and size is selected for importers of magnet sets would be refrigerator magnets, collar stays, or testing. The flux index of the selected reactive and would entail waiting for various commercial and industrial uses. magnets is measured in accordance with new incidents to occur rather than the procedure set forth in sections preventing them. Moreover, recalls 3. Requirements—§ 1240.3 8.24.1 through 8.24.3 of ASTM F963–11, would not prevent new entrants into the This section sets forth the Standard Consumer Safety market in the future; a rule will set requirements for magnet sets. If a Specification for Toy Safety. The flux requirements that all products must magnet set contains a magnet that fits index of the magnet is calculated by meet from the effective date of the rule within the small parts cylinder that multiplying the square of the magnet’s going forward. CPSC uses for testing toys, all magnets surface flux density (in KGauss), by its from that set must have a flux index of maximum cross-sectional area (in mm2). 2. Voluntary Standard 50 kG2 mm2 or less. Because the final The ASTM standard uses a gauss meter Currently, there is no applicable rule covers individual magnets that are and probe that measures the surface flux voluntary standard in effect. Before intended or marketed for use with or as density at 0.015 inches (0.38 mm) above publication of the NPR, a group of a magnet set, the requirements section the magnet’s surface. The area is magnet set importers and distributors of the final rule states that individual measured at the largest cross-section of requested that ASTM International

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develop a voluntary standard for the related injuries caused by high-powered content of the warning. Warnings are labeling and marketing of these magnets. Safety and warnings literature particularly likely to be ineffective products. Specifically, these companies consistently identifies warnings as a less among caregivers of older children. requested the creation of a voluntary effective hazard-control measure than Unless caregivers are convinced that standard to: (1) Provide for appropriate eliminating the hazard through design their older child is likely to mimic lip, warnings and labels on packages of or guarding the consumer from a hazard. nose, or similar piercings, or perform these magnets sets; and (2) establish Warnings do not prevent consumer other activities that might lead these guidelines for restricting the sale of exposure to the hazard but rely on adolescents to place magnets into their these magnet sets to children, by not persuading consumers to alter their mouth or nose, caregivers may doubt selling to stores that sell children’s behavior in some way to avoid the that the warnings are relevant to their products exclusively, and advising hazard. With this product, warnings are child, despite the warnings’ assertions retailers not to sell the magnet sets in particularly unlikely to reduce or to the contrary. proximity to children’s products. To eliminate the ingestion of these As noted in the NPR preamble and in date, ASTM has not formed a committee magnets. Warnings are especially section E of this preamble, even if to consider the development of a unlikely to be effective among young caregivers believe the warnings, several voluntary standard for magnet sets. children because children may lack the factors may limit compliance. Moreover, whether such a voluntary cognitive ability to appraise a hazard or Caregivers, particularly those with older standard would be effective in reducing appreciate the consequences of their children, might feel significant social or eliminating the risk of injury own actions and may not understand pressure from children who are associated with magnet sets is how to avoid hazards effectively. accustomed to using the magnet sets. questionable. Despite companies’ Although older children are better at Caregivers who own the product and marketing and labeling their products in appreciating the hazards described in a attempt to heed the warnings might find an attempt to limit children’s exposure warning, peer acceptance and social it quite difficult to prevent their child’s to magnets, ingestion incidents influences can strongly influence access to the magnets and still keep the involving children have continued to adolescent behavior. Because product reasonably accessible for their occur; and labeling does not change the adolescents have a tendency to test own use. attractiveness of the product to children limits and bend rules, warnings about The cost of compliance with warnings or the intrinsic play value of the magnet keeping the product away from children for these products is high. Caregivers sets. From March 2010, when the firm could have the unintended effect of may be reluctant to secure the product with the largest share of the market making the product more appealing to from a child after every use. Identifying undertook certain labeling some children. For example, warnings an appropriate location to store the enhancements and marketing against specific uses, such as mimicking magnet sets may dissuade consumers restrictions, through June 2012, the piercings, might actually encourage this from doing so, particularly for a product Commission learned of 47 additional behavior among older children. If often marketed to be for ‘‘stress relief.’’ incidents of ingestion of magnets from children repeatedly use the product in Caregivers may underestimate their magnet sets, 26 of which involved this way, without ingesting the magnets, child’s abilities and place the product in ingestion of that company’s magnets. As these children most likely will become locations that seem secure but that are discussed more fully in the next section convinced that the hazard is not still accessible to the child. All of these of this preamble, we do not believe that especially likely, or is not relevant to factors may lead caregivers to reject the warnings would adequately reduce the them. warning message. injuries associated with magnet sets. In the NPR, we noted that staff Based on these concerns about the We also note that Zen Magnets has generally found the content of warnings likely ineffectiveness of warnings for announced its own ‘‘voluntary accompanying magnet sets to be lacking magnet sets, we do not believe that standard’’ for magnet sets requiring that: in several ways. For example, the warning labels would adequately reduce • Customers must be 18 years of age warnings often did not describe the the risk of injury presented by these or older to purchase magnets and that incident scenarios prevalent among products. older children and adolescents, whom the sales location must have an age floor 4. Packaging Restrictions for persons 18 and older or 21 and caregivers may not believe are likely to older, or age must be otherwise verified put magnets into their mouth. Warnings Theoretically, magnet sets could be by Government ID; and lacked detailed information that would sold with special storage containers to • All stores must verbally remind allow consumers to understand how reduce the likelihood that children customers to keep magnets away from swallowing magnets differs from would access the magnets. Possible mouths. swallowing other small parts, or how storage might include a container that We do not consider a standard issued magnets sticking together could pose a would clearly indicate when a magnet is by one company to be a ‘‘voluntary hazard because the magnets will not missing from the set. Such a standard’’ as that term is used in the simply pass through the child’s system. requirement might prevent injuries CPSA. Moreover, the measures that Zen Without a clear, explicit, and accurate resulting from a small number of magnets announced would have the description of the nature of the hazard magnets being separated from a set same limitations discussed above. and its consequences, consumers may without the owner being aware. find the warning implausible. Moreover, However, many consumers may not use 3. Warnings even with enhanced warnings, such containers because using them A possible alternative to the rule consumers are unlikely to comply with could require time to gather the magnets would be to require warnings with or on the action recommended in the warning. and put them in the container, or magnet sets. As discussed in the NPR Even if warnings could effectively consumers may be reluctant to preamble and in response to comments communicate the ingestion hazard, the dismantle a shape or structure that took set forth in section E of this preamble, consequences of ingesting magnets, and them time and effort to construct. Thus, it is unlikely that warnings on the appropriate hazard-avoidance measures, the effectiveness of such special packages of magnet sets would warnings still may not be effective if containers to reduce ingestions is significantly reduce the ingestion- consumers do not concur with the doubtful. Finally, it is not clear that the

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Commission would have the regulatory different requirements would be presents the final regulatory analysis of authority to issue a rule prescribing effective, they could reduce the risk of the rule. requirements for packaging, other than injury associated with magnet sets, and 1. Need for and Description of the Rule child-resistance requirements at the same time, potentially allow the (discussed below). product to maintain the qualities that The CPSC has received information Another alternative might be to would facilitate use by adults. It is regarding injuries with, and hazards require that magnet sets be sold in unclear, however, whether alternative posed by, sets of small, powerful child-resistant packaging. Child- requirements for the sizes and flux magnets. Some of these injuries have resistant packaging, also called ‘‘special index of magnets would eliminate or required surgical removal of individual packaging,’’ is packaging that is substantially affect the physical magnets originally contained in the sets significantly difficult for children under qualities of the products that make them and ultimately ingested by children. five years of age to open or obtain a enjoyable for adults. Reported magnet ingestions have ranged harmful amount of the substance. 15 A competing concern is whether an from young children, who put the U.S.C. 1471(4). The ability of such an alternative set of requirements could magnets in their mouths, to adolescents approach to reduce ingestion injuries of reasonably be expected to reduce or and teens, who experimented with the magnets from magnet sets would be eliminate the risk of injury associated sensation of magnets (e.g., on their limited. Child-resistant packaging with magnet sets. Because the hazard braces), or paired magnets to mimic would not prevent teens and presented by these magnet sets is tongue or lip piercings. These behaviors have led to the accidental swallowing of adolescents (and even some younger ingestion by children, we are concerned the powerful magnets, with unexpected, children) from opening the packaging. that any requirements that allow and sometimes severe, medical Additionally, the packaging would have magnets with a greater attractive force consequences, including significant to be secured after each use. According and permit sizes or shapes that could fit damage to the gastrointestinal tract to the Division of Human Factors, it is through the small parts cylinder would (Inkster, 2012) and death. From January unlikely that adults would accept child- not address the risk of injury 1, 2009 through December 31, 2013, resistant packaging for a product like adequately. the magnet sets because of the level of there were an estimated 2,900 possible As noted in Section E, some inconvenience involved in returning the magnet set, emergency department- commenters suggest that, as an magnets to the package.6 Additionally, treated ingestions. There was also one alternative to the rule, the Commission for the reasons described above, fatal incident in 2013 (Garland, 2014). consumers may leave magnets out of could require manufacturers to add an The final rule establishes a standard their container. aversive (bittering) agent to the product. limiting the size and strength of magnets However, as discussed in the response in a magnet set. The rule applies to any 5. Restrictions on Sales of Magnet Sets to Comment 18, aversives are unlikely aggregation of separable, magnetic Another possible alternative to to be effective in deterring initial objects that is a consumer product address the hazard of children ingesting ingestion by young children because intended, marketed, or commonly used magnets from magnet sets might be to children frequently ingest unpalatable as a manipulative or construction item limit the places where magnet sets are substances. for entertainment, such as puzzle sold, keeping magnet sets away from toy 7. No Action working, sculpture building, mental stores, children’s sections of stores, and stimulation, or stress relief.7 Under the other such locations. Sales limitations Another option for the Commission is rule, magnet sets would not comply or requirements for strong warnings to take no regulatory action to address with the standard if: (1) The individual might also be required on Web sites that the risk of injury posed by magnet sets. magnets are small enough to fit into the offer magnet sets for sale on the Internet. As the NPR preamble mentioned, it is small parts cylinder (e.g., a ball-shaped However, these restrictions are unlikely possible that, over time, increased magnet with a diameter of less than 31.7 to reduce ingestions significantly awareness of the hazard could result in mm, or 1.25 inches); and (2) the because children can access magnet sets some reduction in ingestions. The individual magnets have a flux index of from many sources other than stores. magnitude of any such reduction in more than 50 kG2 mm2, as measured by Moreover, sales restrictions are unlikely incidents is uncertain. The Commission the procedures for determining the flux to deter teens. Finally, the Commission could rely entirely on enforcement index described in the toy standard. does not have the regulatory authority to activities, rather than regulatory action, Because these requirements already impose such sales restrictions by rule. to address the risk of injury posed by apply to magnets used in products magnet sets. However, as discussed in 6. Adoption of a Standard With marketed as toys for children, the rule the ‘‘voluntary recall’’ section above, Different Performance Requirements essentially extends the toy requirements several manufacturers/importers of to the subject magnet sets. Another alternative to the rule would magnet sets have refused to participate The current designs of magnet sets be to establish a different set of in any recall or stop sale of their containing small powerful magnets of requirements. For example, such products; and in any event, recalls and/ the type that are the subject of this requirements might allow a different or stop sales conducted by these regulatory proceeding (which are flux index for magnet sets, different companies would not prevent new typically comprised of individual ball- specifications regarding shapes and entrants into the market in the future. shaped magnets with diameters of 5mm sizes of magnets within the scope of the H. Final Regulatory Analysis and, based on testing by CPSC staff, standard, or some other criteria that having flux index values in the range of have yet to be developed (but would not The Commission is issuing this rule 400–500) would not meet the be as stringent as the rule requires). If under sections 7 and 9 of the CPSA. The CPSA requires that the Commission 7 Although the definition of ‘‘magnet set’’ 6 Sedney, C.A., & Smith, T.P. (2012). Human prepare a final regulatory analysis and changed slightly from the NPR, and the rule extends factors assessment of strong magnet sets. CPSC to the individual magnets sold for use as or with memorandum to Jonathan D. Midgett, Project publish the final regulatory analysis a magnet set, these changes did not affect the scope Manager, U.S. Consumer Product Safety with the text of the final rule. 15 U.S.C. of products considered in conducting the Final Commission, Bethesda, MD. 2058(f). This section of the preamble Regulatory Analysis.

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requirements of the standard. To meet Moreover, Liberty Balls magnet sets are may have totaled about 2.7 million sets, the requirements, the individual not marketed as a substitute for the with a value of roughly $50 million. magnets would have to be much weaker smaller and powerful neodymium This value reflects a combination of (i.e., have a flux index of 50 kG2 mm2 magnets sets. Rather, Liberty Balls retail sales directly to consumers or less, rather than an index of 400 to apparently have been sold specifically (through company Web sites and other 500); or the magnets would have to be to generate funds to defend the producer Internet retail sites) and sales to retailers much larger (i.e., be at least 31.7 mm against the recently settled lawsuit with who marketed the products. A review of (1.25 inches) in diameter rather than 5 the CPSC (Helm, 2014). retail prices reported by importers, and mm). Either requirement eliminates a Rather than develop a complying observed on Internet sites during that distinctive product attribute and would alternative that serves the same niche as period, suggested prices typically limit greatly the magnet sets as the subject magnet sets, producers of ranging from about $20 to $45 per set, candidates for manipulative novelty magnet sets have opted to exit the with an average price of about $25. products. Magnets with a flux index of market altogether. Although Liberty Larger sets of more than 1,000 50 kG2 mm2 or less may be too weak for Balls comply with the standard, we base individual magnets reportedly were sold building sculptures or too weak to be the benefit cost analysis presented at prices as high as $300, depending on used in other construction activities; below on the disappearance of the the number of magnets and the type of magnets with diameters of 1.25 inches noncompliant magnet sets containing packaging. Such larger sets only or more would be too large to have any small powerful magnets from the accounted for about 0.5 percent of all practical value in such activities. market. sets (and a little over 2 percent of all Staff has identified magnet sets in the 2. Description of the Product and magnets) sold to consumers during the market, Liberty Balls, marketed by Market period from 2009 to mid-2012. Assemble, LLC, that would meet the The small, powerful magnets to be definition of magnet sets, would meet Magnet sets that would be affected by affected by the rule are made of alloys the performance standard, and might the scope of the rule are comprised of of neodymium, iron, boron, or other rare serve some of the uses of magnet sets small, powerful magnetic balls, cubes, earth metals. This composition has been that would not meet the standard. The and/or cylinders that can be arranged in confirmed in analyses of product Liberty Balls magnet sets consist of a set many different geometric shapes. These samples by CPSC staff from the magnet sets were introduced in 2008, of eight large ball-shaped magnets. The Directorate for Laboratory Sciences. The but 2009 marked the first year with Liberty Balls magnet sets consist of a set magnetized neodymium-iron-boron significant sales to U.S. consumers.9 of eight large ball-shaped magnets cores are coated with a variety of metals Most magnet sets have been sold in sets selling for $30 to $40 per set. The Ball and other materials to make them more of either 125 balls or sets of 216 to 224 of Rights generally consists of a set of attractive to consumers and to protect balls; although some firms have sold two large ball-shaped magnets selling the brittle magnetic alloy materials from just a few balls as extras or for $10 to $13 per set. The balls in these breaking, chipping, and corroding. replacements, others have sold large sets sets are 33 mm (1.3 inches) in diameter, Nearly 100 percent of neodymium and of more than 1,000 magnetic balls. other rare earth metals are now mined and consist of ferrite magnets, rather Product information provided by than rare earth materials (See http:// in China, which also reportedly holds marketers indicates that the most close to a worldwide monopoly on the unitedweball.org/, accessed February common magnet size is approximately 5 25, 2014). production of neodymium-iron-boron millimeters in diameter; although balls magnets (Dent, 2012). Based on Even though these products satisfy as small as about 3 millimeters have the performance requirements of the available information, all of the small been sold, in addition to sets of larger magnets used in magnet sets, as well as rule, for purposes of the economic magnet balls (perhaps 15 millimeters to analysis, we do not consider any most of the finished and packaged 25 millimeters in diameter).10 In products that would be subject to CPSC impacts due to the entry of Liberty Balls addition to magnetic ball sets, sets of and Ball of Rights in the market because regulation, are produced by small magnetic cubes have also been manufacturers located in China.11 we do not consider these sets to be good sold, although magnetic cubes have substitutes for the subject magnet sets. comprised a relatively small share of the a. Importers of Magnet Sets To be considered a good or close market. In 2012, the leading marketer of As noted above, none of the magnets substitute, we would need to observe magnet sets also added to its desk toy found in sets that are within the scope that consumers, who would have product line small magnetic rods of the rule are produced domestically. purchased the subject magnet sets (if intended to be used with magnetic balls Nearly all of the firms that have they had remained available at to make geometric shapes. marketed magnet sets are believed to historical prices and quantities) are Based on information reviewed on have imported them packaged and now, to a large degree, purchasing the product sales, including reports by firms labeled for sale to U.S. consumers. Liberty Balls sets instead, and the provided to the Office of Compliance Several Chinese manufacturers have the 8 available data suggest otherwise. and Field Operations, the number of facilities and production capacity to such magnet sets that were sold to U.S. meet the orders of U.S. importers. 8 Sales of Liberty Balls have not come close to consumers from 2009 through mid-2012 The Directorate for Economic matching the levels observed for the subject magnet sets (estimated at 800,000 sets and $20 million Analysis identified about 25 U.S. firms annually, and discussed below). Based upon sales for the subject magnet sets were about $1.7 and individuals who imported magnet available information, sales revenue for Liberty million on average. (CPSC staff conducted no sets for sale in the United States in Balls appears to have amounted to about $200,000 independent evaluation of the accuracy of these 2012. The combined sales of the top during October and November 2013, or about figures for Liberty Balls.) $100,000 per month. (See http://unitedweball.org/, 9 However, small neodymium-iron-boron magnets seven firms have probably accounted for accessed February 25, 2014). By March 2014, previously have been, and continue to be, marketed reported sales revenue from Liberty Balls had by firms such as magnet suppliers and distributors 11 One importer reported to a CPSC Compliance increased to about $250,000 (Helm, 2014), of educational products. investigator that some of the magnet sets it sold and suggesting that for December 2013 through February 10 One firm’s larger magnet balls are reportedly shipped to U.S. consumers were made from bulk 2014, sales were only about $15,000 (($250,000– made with cores of strontium ferrite (SrO·6Fe2O3), magnets received from its supplier in China that the $200,000)/3) per month. By comparison, monthly rather than neodymium-iron-boron. importer packaged for sale.

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the great majority (perhaps more than firms that have been subject to the that refused to stop selling the magnet 98%) of units sold since the product administrative complaints by the CPSC, sets (each of which seeks an order was introduced in 2008. One firm, and the 10 firms that have agreed to stop directing the importer to offer refunds in Maxfield & Oberton Holdings, LLC, is sales voluntarily, accounted for virtually exchange for the return of purchased believed to have held a dominant all sales of the products during the magnet sets); (3) publicized corrective position in the market for magnet sets period from 2009 to mid-2012. actions, whereby certain importers and from its entry in the market in 2009, Additionally, the largest importer of retailers of magnet sets agreed to until it ceased operations late in 2012. magnet sets subject to the rule (one of provide refunds to consumers in That firm, and a few of the larger firms the three firms sued in administrative exchange for the return of purchased (including a firm based in Canada with complaints), Maxfield & Oberton magnet sets; and (4) issued warnings to a branch office in the United States), Holdings, LLC, announced that it ceased the public regarding the grave dangers have marketed the products through operations, effective December 27, 2012. that the subject magnet sets posed to accounts with retailers, in addition to Another of the three firms sued in children. Because CPSC compliance selling directly to consumers on the administrative complaints, Star actions have significantly altered the Internet, using their own Web sites or Networks USA, LLC, agreed to stop state of the market, the environment other Internet shopping sites. further sales of magnet sets in July 2014, before these actions occurred represents Some of the firms with smaller sales leaving just one major magnet set the best approximation of how the volumes reported to Compliance staff importer, Zen Magnets, LLC. As a result market would have operated in the that they mainly marketed products of these actions and events, sales of the absence of CPSC intervention and is the (sourced from manufacturers in China) subject magnet sets currently are appropriate reference baseline for through Internet sales arrangements dramatically lower than they were at the evaluating the impact of the rule. with Amazon.com, which held stock for time of the enforcement actions. Consequently, although the Directorate them and processed orders. A review of for Epidemiology’s hazard analysis 3. Evaluation of the Rule the product listings of the Internet described injuries involving magnets retailer found that several other firms a. Societal Costs and the Potential that occurred from 2009 through had similar business models. Other U.S. Benefits December 2013 (Garland, 2014), our firms and individuals have sold magnet i. Estimated Societal Costs of Injuries analysis will be limited to the period sets they imported from China through from 2009 through June 2012, before the Internet ‘‘stores’’ they maintain on eBay. The purpose of the final rule is to request to stop sales, administrative In addition to products offered for sale prevent serious intestinal injuries that actions, recalls, and public warnings by U.S. importers, consumers have also can result when children ingest two or ensued. been able to purchase magnet sets more of the magnets from a subject Based on a review of incident directly from sources in Hong Kong or magnet set (or one magnet and another narratives coded from emergency China, many of which marketed metallic object). The final rule would department medical records for magnet products through ‘‘stores’’ on eBay.12 establish a standard for magnet sets and ingestion cases obtained from NEISS individual magnets that are marketed or hospitals, the Directorate for b. Market Disruption Related to Other intended for use as parts of a magnet set. Epidemiology staff has identified 86 CPSC Actions on Magnet Sets Distributing magnet sets and individual ingestions of high-powered and/or ball- CPSC Compliance staff contacted 13 magnets intended for magnet sets that shaped magnets, which occurred from magnet set importers for corrective do not meet specified requirements 2009 through June 2012. These actions before the Commission would be prohibited. Therefore, a incidents were determined to involve, published the NPR.13 At staff’s request reduction in injuries would be the or possibly involve, the magnets of in July 2012, 10 firms agreed to stop the resulting benefit of the rule. interest. Although manufacturer or manufacture, importation, distribution, Baseline. Our analysis of the potential brand name information is rarely and sale of high-powered, manipulative benefits of the rule focuses on injuries available in the medical records magnetic products of the types that reported through the National Electronic extracted for NEISS, nine of the 86 would be subject to the rule. Three other Injury Surveillance System (NEISS), a NEISS-reported cases (10.5%) firms did not stop selling the products probability sample of U.S. hospital mentioned a brand name of magnet sets (although one of these firms initially emergency departments that can be used that are the magnets of interest; 77 cases had agreed to cease sales voluntarily). to provide national estimates of (89.5%) were determined possibly to The Commission voted to initiate product-related injuries initially treated have involved the magnets of interest administrative actions seeking a in U.S. hospital emergency departments. because the case narratives included determination that certain magnet sets The expected benefits of a product terms such as ‘‘high powered,’’ are a substantial product hazard, along safety regulation must be measured ‘‘magnetic ball,’’ ‘‘magnetic marble,’’ with an order requiring the firms that against a baseline representing the best ‘‘BB size magnet,’’ or ‘‘magnetic beads’’ import these products cease sales and assessment of how the market would (Garland, 2014). offer refunds to customers.14 The three operate and how products would be Injuries and Societal Costs. Based on used in the absence of the intervention. the 86 NEISS-reported magnet cases, 12 More than 40 such stores shipping magnet sets In the case of the rule prohibiting the there were an estimated 2,138 injuries directly from Hong Kong or China were identified subject magnet sets, the baseline would treated in U.S. hospital emergency in a brief review of product offerings on the Internet represent the time period before the departments from 2009 through June site in 2012. actions by which the CPSC: (1) 2012. About 11 percent of these NEISS- 13 Although other importers were identified, these Requested that importers and retailers other importers were believed to sell so few magnet reported cases were injuries requiring sets that staff did not have the resources to pursue stop selling the magnet sets; (2) initiated hospitalization, as opposed to the 89 these matters on a case-by-case basis against all administrative actions against importers percent that were treated and released. known importers. Thus, targeting for corrective The benefits of the rule can be estimated actions was limited to 13 firms believed to account complaint filed against Star Networks (http:// as the reduction in the societal costs for the largest portion of the market. www.cpsc.gov/en/Newsroom/News-Releases/2013/ 14 For example, see the December 19, 2012, CPSC CPSC-Sues-Star-Networks-USA-Over-Hazardous- associated with the injuries that would press release related to the administrative High-Powered-Magnetic-Balls-and-Cubes/). be prevented by the rule. The

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Directorate for Economic Analysis bases and (3) employer productivity losses, emergency department injuries and estimates of the societal costs of such as the costs incurred when those treated in other settings (e.g., emergency department-treated magnet employers spend time juggling physicians’ offices, clinics, ambulatory injuries on the CPSC’s Injury Cost schedules or training replacement surgery centers, and direct hospital Model (ICM) (Miller et al., 2000). workers. The earnings estimates were admissions) to estimate the number, The ICM is fully integrated with updated most recently with weekly types, and costs of injuries treated NEISS and provides estimates of the earnings data from the Current outside of hospital emergency societal costs of injuries reported Population Survey conducted by the departments (Miller et al., 2000; through NEISS. The major aggregated Bureau of the Census in conjunction Lawrence, 2013). Thus, the Injury Cost components of the ICM include: with the Bureau of Labor Statistics. Model allows us to expand on NEISS by medical costs; work losses; and the Intangible, or non-economic, costs of combining (1) the number and costs of intangible costs associated with lost injury reflect the physical and emergency department injuries with (2) quality of life or pain and suffering.15 emotional trauma of injury as well as the number and costs of medically Medical costs include three categories the mental anguish of victims and attended injuries treated in other of expenditure: (1) Medical and hospital caregivers. Intangible costs are difficult settings to estimate the total number of costs associated with treating the injury to quantify because they do not medically attended injuries and their victim during the initial recovery period represent products or resources traded costs across all treatment levels. and in the long run, the costs associated in the marketplace. Nevertheless, they with corrective surgery, the treatment of typically represent the largest Table 1 below provides annual chronic injuries, and rehabilitation component of injury cost and need to be estimates of the injuries and the societal services; (2) ancillary costs, such as accounted for in any benefit-cost costs associated with ‘‘high-powered costs for prescriptions, medical analysis involving health outcomes and/or ball-shaped magnet ingestions’’ equipment, and ambulance transport; (Rice et al., 1989). The Injury Cost that involve, or possibly involve, the and (3) costs of health insurance claims Model develops a monetary estimate of magnets that are the subject of the rule. processing. Cost estimates for these these intangible costs from jury awards As shown in Table 1, the 2009 through expenditure categories were derived for pain and suffering. While these June 2012 NEISS estimates suggest an from a number of national and state awards can vary widely on a case-by- estimated annual average of about 610 databases, including the National case basis, studies have shown them to emergency department-treated injuries, Healthcare Cost and Utilization be systematically related to a number of including 544 injuries that were treated Project—National Inpatient Sample and factors, including economic losses, the and released and 66 injuries that the Medical Expenditure Panel Survey, type and severity of injury, and the age required hospitalization. About 60 both sponsored by the Agency for of the victim (Viscusi, 1988; Rodgers, percent of these emergency department- Healthcare Research and Quality. 1993). Estimates for the Injury Cost treated ingestions involved children Work loss estimates, based on Model were derived from a regression ages 4 through 12 years. Just over half information from the National Health analysis of about 2,000 jury awards in of the magnet cases from the emergency Interview Survey and the U.S. Bureau of nonfatal product liability cases departments of the hospitals that Labor Statistics, as well as a number of involving consumer products compiled comprise the NEISS sample appear to published wage studies, include: (1) The by Jury Verdicts Research, Inc. have involved the ingestion of more forgone earnings of parents and visitors, In addition to estimating the costs of than one magnet. Additionally, based on including lost wage work and injuries treated in U.S. hospital estimates from the ICM, there were household work, (2) imputed long term emergency departments and reported another 319 injuries treated annually in work losses of the victim that would be through NEISS, the Injury Cost Model locations other than hospital emergency associated with permanent impairment, uses empirical relationships between departments.16

TABLE 1—ESTIMATED AVERAGE ANNUAL MEDICALLY ATTENDED INJURIES AND ASSOCIATED SOCIETAL COSTS FOR HIGH- POWERED AND/OR BALL-SHAPED MAGNET INGESTIONS THAT WERE DETERMINED TO INVOLVE, OR POSSIBLY IN- VOLVE, THE MAGNETS OF INTEREST, 2009–JUNE 2012

Estimated Injury disposition Estimated societal costs number ($ millions) *

Treated and Released from Hospital Emergency Department (NEISS) ...... 544 11.4 Admitted to Hospital Through the Emergency Department (NEISS) ...... † 66 8.6

Medically Treated Outside of Hospital Emergency Department (ICM) ...... 319 8.6 Total Medically Attended Injuries ...... 929 28.6 * In 2012 dollars. † According to the Directorate for Epidemiology, the estimated number of hospital-admitted, emergency department-treated injuries is a not a reliable estimate because of the small number of cases upon which the estimate was based.

After including the injuries treated attended injuries involving ingestions of 2012 dollars) during the 2009 to June outside of hospital emergency the magnets of interest. Based on the 2012 time period. The injury cost departments, there was an estimated ICM, these injuries resulted in annual estimates differ from those presented in annual average of about 929 medically societal costs of about $28.6 million (in the preliminary regulatory analysis

15 A detailed description of the cost components, to develop the CPSC’s Injury Cost Model, can be 16 Although no deaths were reported during the and the general methodology and data sources used found in Miller et al. (2000). baseline time period for this analysis, one death involving the subject magnets was reported in 2013.

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because of an expansion of the baseline as ‘‘unknown or other.’’ These cases of alternative products or activities, the time period from 2009 through 2011 to included narratives that mentioned that expected benefits of the rule might 2009 through June 2012 and because of a magnet was involved but presented amount to about $28.6 million annually. updates to the CPSC’s Injury Cost Model insufficient information to classify the b. Potential Costs of the Rule (Lawrence, 2013). The injury cost magnet type. Consequently, to the estimates were also inflated from 2011 extent that the unknown magnet types Both consumers and producers to 2012 dollars. involved magnets that would be covered benefit from the production and sale of The average estimated societal costs by the rule, the Table 1 results would consumer products. The consuming per injury was about $27,000 for injuries tend to understate the societal costs public obtains the use value or ‘‘utility’’ treated in locations other than associated with the magnets subject to associated with the consumption of emergency departments (such as the rule. products; producers obtain income and physicians’ offices, clinics, ambulatory ii. Estimated Benefits of the Rule profits from the production and sale of surgery centers, or direct hospital products. Consequently, the costs of a admissions); about $21,000 for injuries As noted above, the benefits of the rule that eliminates certain magnetic that were treated and released from magnet rule would be the reduction in sets would consist of: (1) The lost use emergency departments; and about the societal costs of the injuries that value experienced by consumers who $130,000 for injuries that required would be prevented. Because the rule would no longer be able to purchase admission to the hospital for treatment. will eliminate from the market all magnets that do not meet the standard Medical costs and work losses magnet sets involved in the ingestion at any price; and (2) the lost income and (including work losses of caregivers) injuries described above, all injuries profits to firms that could not produce accounted for about 30 percent of these that would have occurred in the absence and sell non-complying products in the injury cost estimates, and the less of a rule would be prevented. Although future. The same baseline used in the tangible costs of injury associated with no deaths involving magnet sets benefits assessment, 2009 to June 2012, pain and suffering accounted for about occurred during the time period covered is used for the cost analysis. 70 percent of the estimated injury costs. by our analysis, we know of a magnet set related fatality that occurred in 2013. i. Lost Utility to Consumers Uncertainty. As noted in the Thus, we anticipate that the rule would preliminary regulatory analysis, there is First, consider the lost utility to prevent future fatalities as well as uncertainty concerning these estimates. consumers. We cannot estimate in any injuries. However, if children, Some of the cases described as precise way the use value that adolescents, and teens cannot play with involving the magnets of interest that consumers receive from these products, or use the prohibited magnets, they were included in Table 1 may not have but we can describe use value could play with or use substitute involved the magnets that are the conceptually. In general, use value products (including high-powered subject of the rule. As noted above, includes the amount of: (1) Consumer magnets intended for other uses 17) that about 90 percent of the cases upon expenditures for the product, plus (2) also may result in injury. Hence, the which the table was based were what is called ‘‘consumer surplus.’’ In overall benefits of the rule should be described as only possibly involving the the case of the magnet sets, given sales measured as the net reduction in magnets of interest because NEISS of about 800,000 sets annually during injuries and the concomitant reduction narratives are not required to list the 2009 to June 2012 time period, and in societal costs that would result. manufacturer or brand name. Hence, it assuming an average retail price of Based on the injury estimates presented is possible that Table 1 overstates the about $25 in 2012, consumer in Table 1, and given the absence of societal costs associated with the expenditures would amount to about information on expected use and risks magnets that would be included in the $20 million annually in 2012 dollars. rule. These expenditures represent the 17 Common commercial and industrial On the other hand, in addition to the applications of small neodymium-iron-boron minimum value that consumers would magnet cases upon which the table was magnets include their use in holding systems, expect to get from these products. It is based, there were also 230 NEISS cases motors (DC, servo, linear, and voice coil), magnetic represented by the area of the rectangle bearings, magnetic couplings, jewelry, welding OBDE in the standard supply and (representing about 1,526 emergency clamps, oil filters, disc drives, loudspeakers, department-treated injuries annually), headphones, microphones, instrumentation, demand graph below, where B equals in which the magnet type was classified switches, and relays. $25, and E equals 800,000 units.

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The consumer surplus is given by the represented by the area of the trapezoid sets are ‘‘faddish,’’ they may not be the area of the triangle BCD under the OCDE. However, the prospective loss in type of product that will be used graph’s demand function and represents use value associated with the rule, intensely by consumers over long the difference between the market which would prohibit certain magnet periods of time. However, if, for clearing price and the maximum sets that do not comply with the rule, example, consumers who purchased the amount consumers would have been would amount to, at most, the area of magnetic sets at an average price of $25 willing to pay for the product. This the triangle representing the consumer would have been willing to spend, on consumer surplus will vary for surplus. This is because consumers average, $35 per set, the lost utility from individual consumers, but it represents would no longer be able to obtain utility the magnet sets might amount to about a benefit to consumers over and above from the prohibited product, but they $8 million on an annual basis (i.e., what they had to pay (McCloskey, would, nevertheless, still have the $20 [$35¥$25] × 800,000 units annually). 1982).18 For example, although tickets million (represented by the rectangle Finally, we note that the loss in to a concert or football game might sell OBDE) that they would have spent on consumer surplus just described for $100 each, some consumers who buy magnet sets in the absence of a rule. represents the maximum loss of them for $100 would have been willing Although consumers would no longer consumer utility from the rule; the to pay $150 per ticket. In other words, be able to purchase magnet sets, which actual loss is likely to be lower. This is they paid $100 and received benefits would have been their first choice, they because consumers are likely to gain that they value at $150. Hence, each of can use this money to buy other some amount of consumer surplus from these consumers would receive a products providing use value. products that are purchased as an consumer surplus of $50.19 We have no information regarding alternative to those magnet sets that In general, the use value of the magnet aggregate consumer surplus; and hence, would no longer be available because of sets obtained by consumers is no information on the amount of utility the rule. If, for example, there were that would be lost from a magnet set close substitutes for the magnet sets that 18 The concept of consumer surplus is discussed rule. Although the magnet sets clearly do not meet the standard (e.g., desk toys in OMB’s Circular A–4 (OMB, 2003) and has been provide ‘‘utility’’ to purchasers, magnet applied in several CPSC staff analyses, including that are almost as satisfying and Tohamy (2006) and Rodgers (2004). sets are not necessities. Consequently, similarly priced), the overall loss in 19 If the above graph represents the market for the demand for magnet sets is probably consumer surplus (and, hence, the costs tickets, the demand curve describes the quantity of not price inelastic, a factor that would of the rule) would probably tend to be tickets demanded at each price (i.e., the quantity of tend to reduce estimates of utility small. On the other hand, if there are no tickets consumers are willing and able to purchase 20 at each price). In this example, the $150 that the losses. Additionally, if the magnetic close substitutes, the costs of the rule consumer would have been willing to pay for the would tend to be higher. ticket is represented on the demand curve at a point 20 To say that the demand for a product is price to the left of point D. The consumer surplus is given ‘‘inelastic’’ means that the quantity demanded tends by the relevant point on the demand curve (i.e., to be insensitive to changes in the price of the reduce substantially their purchase of gasoline (at where price = $150), minus the market clearing product. Gasoline is an example of a product with least in the short run), even if the price increases price of $100. an inelastic demand. Consumers are not likely to substantially.

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Some alternative products might serve costs that vary with the level of output mid-2012, these costs could amount to some of the same uses of the subject and usually include expenditures for as much as $6 million in lost producer magnet sets. For example, consider the raw materials, wages, distribution of the surplus and some unknown quantity of Liberty Balls mentioned earlier, which product, and the like.21 lost utility. The estimate of lost are comprised of large (1.3 inch) ferrite In Figure 1, total revenue is given by producer surplus differs from impacts magnetic objects. Their size, weight, and the area OBDE, which is simply the estimated in the NPR (7.5 million, relatively high price per ball make product of sales and price. The total expressed as lost profits) because of a Liberty Balls unsuitable and impractical variable costs of production are given by revised estimate of annual sales, and for use in most sculpturing and other the area under the supply function, different assumptions regarding profit construction activities for which the OADE. Consequently, producer surplus rates and variable costs. subject magnet sets are used. They is given by the triangle, ABD, which is might still be used by some for the area under the market clearing price c. Sensitivity of Results to Product Life ‘‘fidgeting,’’ but there does not seem to and above the supply function. Assumptions be any unique attribute of this product As described earlier, sales of the that would cause a consumer to magnet sets averaged roughly 800,000 Implicit in this analysis is the purchase Liberty Balls specifically for sets annually during the 2009 through assumption that the expected useful life fidgeting; common objects, such as mid-2012 time period, with an average of the magnet sets is about 1 year. paper clips or ball bearings, could serve retail price of about $25 per set in 2012. Because this product has only been in the same fidgeting purpose at a lower Thus, total industry revenues averaged widespread consumer use since 2009, price. about $20 million annually (i.e., 800,000 this assumption is made without Another possible alternative product sets × $25 per set) in 2012 dollars. extensive knowledge about the actual discussed by the Directorate for Additional information provided by use of the magnetic sets by consumers. Engineering Sciences (Amodeo, 2013) firms to the Office of Compliance and We consider magnet sets to be novelty could be magnet sets comprised of Field Operations suggests that the products, which means for many individual magnets permanently average import cost of the magnets to consumers, they may lose much of their connected by rods or other means, such U.S. importers, a major variable cost, appeal quite quickly. Accordingly, we that the resulting magnetic objects are may have amounted to about $10 per chose a one-year rather than a longer not small parts. Such sets are marketed set, or an average of about $8 million useful life even though the magnets may as children’s toys because the annually (i.e., 800,000 sets × $10 import be physically durable products. Even if individual pieces in the set do not fit cost per set). We have no information on some of the products remain in homes into the small parts cylinder. Although other variable costs associated with the or offices longer than a year, the risk of these products have not been marketed production, packaging, marketing, and ingestion by children may be much for adults, and we have no evidence that distribution of the magnet sets. higher in the first month or two after the they could be considered a good However, it seems likely that variable magnet sets are purchased, when the substitute for the subject magnet sets, if costs would constitute a significant such sets could satisfy some consumers’ appeal of the product is at its highest proportion of the remaining difference and the consumer actively uses or plays needs in constructing geometric shapes, between revenues ($20 million) and then the lost consumer surplus might be with the product frequently. Once import costs ($8 million). If we assume novelty products lose their appeal, they reduced. that variable costs amount to about half Notwithstanding the availability of are likely to be put away and stored of the difference, lost producer surplus indefinitely or perhaps even discarded. alternatives to the subject magnet sets, would amount to about $6 million.22 the rule will still result in some level of However, we note that the results of lost utility. By purchasing the products iii. Summary of Costs of the Rule our analysis are not particularly in question, rather than other products, The costs of the rule, in terms of sensitive to this product life consumers are revealing that they have reduced benefits for firms and lost assumption. For example, had we a preference for the subject magnet sets utility by consumers, are uncertain. assumed that the average product life that they believe are likely to provide However, based on annual sales was about 2 years, rather than 1 year, them more utility than a substitute estimates available for 2009 through estimates of the number of sets in use purchase. at any given time would approximately ii. Lost Benefits to Producers 21 Note that although producer surplus (PS) is a double, reducing the estimated annual measure of profits, it is not the same as profits. risk of injury, per magnet set in use (and The lost benefits to firms resulting Whereas PS = TR¥TVC, profits (p) = TR¥(TFC + from a rule that effectively eliminates a TVC), where TFC represents total fixed costs (i.e., hence, reduce estimated societal costs product they produce are measured by those costs borne by the firm regardless of the level per set), by about half. However, this of output). If we substitute PS into the profit reduced estimate of annual societal a loss in what is called producer equation, and rearrange terms, we have PS = p + surplus. Producer surplus is a profit TFC. Thus, producer surplus is equal to profits, costs would be offset by the fact that the measure that is somewhat analogous to plus total fixed costs. In the case of the market for sets remain in use for 2 years, rather consumer surplus. Whereas consumer magnet sets, the fixed costs of production for than 1 year. Thus, annual benefits, per American importers are small. The magnet sets magnet set in use, would be about surplus is a measure of benefits received were generally produced, packaged, and shipped by individuals who consume products, from China and sometimes sent directly to the halved, but the present value of benefits net of the cost of purchasing the importer’s point of sale. Even when the magnet sets would be accrued over 2 years, rather products, producer surplus is a measure were shipped directly to importers, most additional than 1 year. Consequently, even if we costs incurred by importers, such as shipping and had doubled the assumed product life, of the benefits accruing to firms that marketing costs, would be considered variable. produce and sell products, net of the Consequently, in the case of the market for magnet the relationship between benefits and costs of producing them. More formally, sets, lost profits would be approximately equal to costs would have remained roughly the ‘‘producer surplus’’ is defined as the lost producer surplus. same. Estimated benefits would be 22 This value is lower than the value presented in slightly lower under a two year useful total revenue (TR) of firms selling the the preliminary regulatory analysis, due to the use magnet sets, less the total variable costs of more refined sales figures for the affected product life due to discounting second (TVC) of production. Variable costs are producers. year benefits.

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d. Alternatives to the Rule Magnets that present a risk of harm Require Safer Packaging There are several possible alternatives would still be available and some The Commission could require to the rule. We are unable to quantify children would undoubtedly have magnet sets to be sold with special either the costs or the benefits of these access to them and be injured by them. storage containers that are fitted to the alternatives, in part because the One practical question, however, is product so that consumers would be requirements of such alternatives have whether alternative requirements for the able to determine whether any of the not been specified. To estimate the sizes and flux index of magnets would magnets were missing from the sets. potential costs of the alternatives, we eliminate or substantially affect the Such a requirement might prevent would need a precise description of physical qualities of the products that injuries resulting from a small number what the requirements would be. make them enjoyable for adults. of magnets being separated from a set Moreover, even with this information, it Regarding the alternative size without the owner being aware. In would still be difficult to determine the requirements, consumers can use reality, however, many consumers may expected injury reduction from the magnet sets of 216 or more 5mm balls not use such containers because using various alternatives. to make a variety of constructions. them could require time to form the Nevertheless, the costs of each of the Larger individual magnets that would magnets into a shape, such as a cube; or alternatives discussed below are meet an alternative (that is smaller than consumers might wish to keep the expected to be substantially lower than the 1.25-inch diameter specified in the magnets out of their container to the costs of the rule. This is because, final rule) might be determined to preserve a shape or structure that took generally speaking, the alternatives reduce the risk associated with time and effort to construct. would allow consumers and businesses ingestions somewhat, but, depending Alternatively (or in combination), the to continue buying, selling, and using upon their size, might make them Commission could require the magnets the magnet sets that would no longer be unsuitable for many of the uses of the to be sold in child-resistant packaging. available under the rule. Similarly, the sets with smaller magnets. The benefit of such an approach is the benefits of these alternatives, in terms of Similarly, allowing a flux index potential to reduce ingestion injuries. injury reduction, would also be greater than the 50 kG2 mm2 flux limit However, the benefits of this approach expected to be lower than the benefits of the rule might improve the usefulness would be limited. Child-resistant for the rule. This is because, under these of the magnet sets in construction packaging would not prevent teens and alternatives, some children would activities. However, given that the adolescents (and even some younger continue to have access to the magnet subject magnet sets have flux index children) from opening the packaging. sets. values typically in the range of 400–500 Additionally, the packaging would have The Commission may not have for spherical magnets, the flux index to be secured after each use. According authority for some of the alternatives limit might have to be increased to the Division of Human Factors, it is discussed. None of the alternatives was substantially higher than the flux index unlikely that adults would accept child- chosen because the expected injury limit of 50 kG2 mm2 to provide levels resistant packaging for a product like reduction from each was believed to of satisfaction that are similar to those the magnet sets because of the level of address the hazard inadequately. of the subject magnet sets. Moreover, a inconvenience involved in returning the Comments on the NPR did not alter this flux index limit of substantially more magnets to the package (Sedney & decision. than 50 kG2 mm2 could, relative to the Smith, 2012). Additionally, for the reasons described above, consumers i. Alternative Performance proposed rule, substantially increase the may leave magnets out of their Requirements harms associated with the ingestion risk—the harms the rule is intended to container. As an alternative to the rule, the prevent. The costs of this alternative would Commission could consider depend upon the packaging promulgating an alternative set of Another alternative might be to create requirements but would be substantially requirements that could reduce the risk specifications for the application of less costly than the rule, which of injury from magnet sets but not bittering agents on the magnets to make eliminates the subject magnet sets from necessarily eliminate the risk. For them less appealing to young children. the marketplace. It seems unlikely that example, some alternatives to the rule However, the effectiveness of bittering the costs would amount to more than a might include: Setting a different flux agents in reducing magnet ingestions is dollar or so per magnet set, although index for the magnets sold as questionable (Sedney & Smith, 2012). these costs might be somewhat higher if manipulative desk sets; requiring Neither the costs, nor the benefits of child-resistant packaging was required. different specifications for shapes and these alternative sets of requirements The benefits of requiring safer packaging sizes of magnets within the scope of the are quantifiable with available are unknown, but based on the HF standard; or setting forth some other information. The staff is reasonably discussion above, the benefits may be criteria that have not yet been certain that magnets with a flux index relatively small if consumers would not developed (but are not as stringent as in of less than 50 kG2 mm2 will use the packaging containers the final rule). If these alternative substantially reduce the risk injury. appropriately. requirements led to the production of However, the risk associated with flux magnet sets with physical indices greater than 50 kG2 mm2 but less ii. Warnings characteristics that appealed to than the indices of 400 to 500 for the The Commission could require strong consumers, the cost of the rule for both subject magnet sets are unknown and warnings on labels and on-product consumers and businesses would be cannot be estimated with available data. instructions designed to prevent the use reduced. Businesses would continue to The staff is also reasonably certain that of the magnet sets by children. Based on be able to produce and sell magnet sets, the risk of ingesting magnets is HF staff’s examination, the ingestion and consumers would continue to be substantially reduced if the magnets are warnings that currently accompany able to buy and use them. However, too large for the small parts container. magnet sets are generally aimed at these alternative requirements would However, the increased risk of ingestion adults, but the warnings are deficient in likely reduce the benefits of a rule: with smaller sized magnets is unknown. their content. For example, some

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warnings caution against children iv. Restrictions on the Sale of Magnet sets. Under this alternative, future swallowing the magnets, but the Sets societal losses would be determined by warnings do not describe the incident Another lower-cost option the the numbers of products in use, and scenarios. Some warnings refer to the Commission could consider is to other factors that affect the likelihood propensity of swallowed magnets to prohibit sales of magnet sets in toy that young children, adolescents, and stick to intestines, without referring to stores, children’s sections of general teens will ingest the magnets. Although the presence of other magnets or metal purpose stores, and near cash registers there would be no costs, such a objects. Other warnings refer to magnets of stores that sell any children’s determination would not reduce sticking together or attaching to other products. The costs of this option would injuries. metallic objects inside the body, but the be lower than the rule because this 4. Summary warnings do not explain that the would allow the magnet sets to be magnets can attract through the walls of marketed to and used by consumers. Based on reports to the CPSC, the intestines and forcefully compress Sales limitations or requirements for ingestions of small magnets contained these tissues, resulting in serious strong warnings might also be required in certain magnet sets have caused injuries. According to HF staff, without on Web sites advertising the sale of multiple, high-severity injuries that detailed information in the warnings, magnets on the Internet. require surgery to remove the magnets consumers may not really understand The details of developing a set of sales and repair internal damage. Based on how swallowing magnets differs from limitations and requirements would the NEISS cases identified by the swallowing other small parts or how need to be worked out, but the idea Directorate for Epidemiology staff as magnets sticking together could pose a would be to make sure that magnet sets, involving high-powered and/or ball- hazard. to the extent possible, are not sold at shaped magnet ingestions, the estimated HF staff believes that it may be locations where children are likely to be possible to develop warnings that could benefits of the rule might amount to present. Sales requirements might also about $28.6 million annually. communicate the ingestion hazard, the be combined with strong and explicit consequences of ingestion, and how to warnings that HF staff has suggested The costs of the rule consist of the avoid the hazard. To the extent that the could be developed. reduced producer surplus for firms and subject magnets present a ‘‘hidden’’ However, the benefits of this option lost utility by consumers, also are hazard about which consumers are are probably limited. Some parents uncertain. Based on annual sales unaware, explicit and adequate would still allow their children estimates available for 2009 through warnings could reduce ingestions and (especially older children and mid-2012, these costs could amount to allow adults to continue to enjoy the use adolescents) to play with the magnet as much as $6 million in lost producer of the product. sets, despite the warnings.23 In addition, surplus and some unknown quantity of The costs of such warnings would some children will get into the lost utility. most likely be small, and consumers packaging, even if parents try to restrict There are alternative regulatory could make informed decisions about the use of the desk toys. actions that might allow the magnet sets the purchase and use of magnet sets. to continue to be marketed. For However, although HF staff believes v. Address Through Corrective Actions Rather Than Regulatory Action example, the Commission, by warnings could be developed to regulation, could issue alternative communicate the hazard, HF staff also The Commission could continue to requirements; issue requirements for the believes that injury reduction would be address the hazard through corrective packaging of the magnet sets (e.g., limited. They point out that avoiding action plans. However, this approach develop requirements for child-resistant the ingestion hazard requires consumers may be inadequate because this packaging); require warnings that to keep the product away from all approach is reactive and would entail describe explicitly the hazard and how children in the incident age group, and waiting for new incidents to occur to avoid it; and/or place limitations on while caregivers who read and rather than preventing them. how and where the magnet sets can be understand the warnings may attempt to sold. These alternative actions—which keep this product out of the hands of vi. Take No Action might be considered alone, or in young children, HF staff doubts that The Commission could determine that combination—would have varying many caregivers are likely to be so no rule is reasonably necessary to levels of effectiveness, but all of them diligent about heeding the warning with reduce the risk of ingestion injuries older children and adolescents (Sedney associated with small, powerful magnet would be result in lower reductions in & Smith, 2012). Also, HF staff doubts injuries associated with magnet ingestion. that caregivers will think that constant 23 As noted in the NPR (77 FR 53781), one firm supervision is needed if they believe the agreed to a corrective action in 2010, which included provisions for controlling distribution by I. Paperwork Reduction Act sets have been properly secured or that agreeing to ask retailers who market products their children are not aware of the sets primarily to children to execute a Responsible The rule does not require (Sedney & Smith, 2013). As noted in the Sellers Agreement prohibiting marketing and sales manufacturers (including importers) to NPR (77 FR 53781), a corrective action to children, as well as agreeing to stop the sale of perform testing or require manufacturers magnet sets to retailers who market products or retailers to keep records. For this in 2010, which included stronger exclusively to children. However, with a warnings combined with provisions for subsequent increase in ingestion injuries involving reason, the rule does not contain controlling distribution of magnet sets, the products, Compliance began negotiation of ‘‘collection of information was found to be inadequate because of corrective action plans with 11 of 13 magnet set requirements,’’ as that term is used in importers that voluntarily agreed to cease the a subsequent increase in ingestion importation, distribution, and continued sale of the Paperwork Reduction Act, 44 U.S.C. injuries involving the products. their magnet sets, and administrative actions were 3501–3520. Therefore, the rule need not Consequently, warnings (combined with initiated by the Commission against two firms that be submitted to the Office of sales restrictions and other measures) did not agree to cease sales voluntarily. By Management and Budget (OMB) in implication, sales restrictions (combined with have not been judged to address the risk warnings and other measures) have not been judged accordance with 44 U.S.C. 3507(d) and posed by the subject magnet sets to address the risk posed by the subject magnet sets implementing regulations codified at 5 adequately. adequately. CFR 1320.11.

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J. Regulatory Flexibility Analysis years would not meet the rule’s to retailers who market the products. A requirements. The CPSC has received review of retail prices reported by 1. Introduction information, described in section C of importers and observed on Internet sites The Regulatory Flexibility Act (RFA) this preamble, regarding incidents with, suggests prices typically ranged from requires that agencies review rules for and hazards posed by, sets of small, about $20 to $45, with an average price their potential economic impact on powerful magnets. According to the of about $25 for magnet sets that small entities, including small final regulatory analysis, there was an commonly contain 216 to 224 magnets. businesses. Section 604 of the RFA calls annual average of about 929 medically Larger sets of more than 1,000 for agencies to prepare a final regulatory attended magnet ingestions that were individual magnets have reportedly flexibility analysis, describing the defined as at least ‘‘possibly of interest’’ been sold at prices up to $300, impact of the rule on small entities and during the period from 2009 through depending on the number of magnets identifying impact-reducing June 2012. These ingestions resulted in and the type of packaging. alternatives. The final regulatory societal costs of about $28.6 million per We noted in the IRFA that the flexibility analysis is to contain: year. economic impact of the rule would be (1) A statement of the need for, and The objective of the rule is to most severe for seven small importing objectives of, the rule; eliminate or reduce the risk of injury to firms, which account for the great (2) a statement of the significant consumers from the ingestion of one or majority (perhaps more than 98%) of issues raised by the public comments in more small powerful magnets that units sold according to sales response to the initial regulatory comprise the subject consumer information provided to CPSC flexibility analysis, a statement of the products. Because the magnet sets that Compliance staff; and five of these agency’s assessment of those issues, and have been involved in incidents would importers reportedly derived most or all a statement of any changes made to the not meet the rule’s requirements, the of their revenues from the sale of the proposed rule as a result of such rule will substantially reduce the future magnet sets or related products. We comments; incidence and cost to society of judged that these firms could go out of (3) the response of the agency to any ingestions of magnet sets. business as a result of the rule. Two of comments filed by the Chief Counsel for the other leading importers of magnet 3. Comments on the Initial Regulatory Advocacy of the Small Business sets apparently had fairly broad product Flexibility Analysis Administration in response to the offerings, which could lessen the proposed rule, and a statement of any The Commission received comments severity of the economic impact of a changes made in the final rule as a from more than 5,000 people in rule. Nevertheless, we noted that the result of the comments; response to the NPR. Many of the expected impacts of a final rule could (4) a description of, and where comments related to issues that have a also be significant for these small feasible, an estimate of the number of bearing on the economic impacts of the importers. small entities to which the proposed proposed rule on small businesses. The As discussed in section H.2.b. of this rule will apply; Commission’s responses to comments preamble, due to CPSC’s enforcement (5) a description of the projected that address issues that were mentioned actions, current sales of magnet sets are reporting, recordkeeping, and other in the initial regulatory flexibility dramatically smaller than at the time of compliance requirements of the analysis (IRFA) are in included in the enforcement actions. We are aware proposed rule, including an estimate of Section E of this notice. of only one major importer of magnet the classes of small entities that will be 4. Small Entities Subject to the Rule and sets that remains active in the market. subject to the requirement and the types Possible Economic Impacts The rule will likely have an adverse of professional skills necessary for the impact on this remaining firm. That firm preparation of the report or record; and The final rule would impact U.S. might go out of business, unless the firm (6) a description of the steps the importers and retailers of magnet sets successfully markets other products, agency has taken to minimize the comprised of small, powerful magnets including magnet sets that would significant economic impact on small of the size and magnetic force comply. entities consistent with the stated proscribed by the rule. None of the objectives of applicable statutes, magnet sets within the scope of the rule 5. Projected Reporting, Recordkeeping, including a statement of the factual, is produced domestically. All of the and Other Compliance Requirements of policy, and legal reasons for selecting U.S. firms that have marketed the the Rule the alternative adopted in the final rule products are believed to have imported The rule does not contain any and why each one of the other them from manufacturers in China. The reporting or record keeping alternatives to the rule considered by one remaining firm that currently requirements. the agency which affect the impact on imports magnet sets is a small business 6. Alternatives to the Rule small entities was rejected. under U.S. Small Business Accordingly, staff prepared a final Administration (SBA) size standards The Commission could pursue other regulatory flexibility analysis, which is (SBA, 2012). options, including: Adopting an summarized below. Based on information reviewed on alternative set of requirements for the product sales, including reports by firms flux index or size of the magnets; 2. Statement of the Need for, and to the Office of Compliance and Field requiring safer packaging; requiring Objectives of, the Rule Operations, the number of such magnet warnings on the packaging and The rule prohibits the sale or sets that were sold to U.S. consumers promotional materials; imposing distribution in commerce of magnet sets from 2009 through mid-2012 may have restrictions on the locations where and individual magnets intended to be totaled about 2.7 million sets, with a magnet sets can be sold; addressing the used with or as magnet sets that do not value of roughly $50 million in 2012 risk of injury presented by magnet sets meet the specific requirements dollars. This value reflects a through corrective actions; and taking described in section F of this preamble. combination of retail sales directly to no action at all. Each of these The current designs of magnet sets of consumers (through company Web sites alternatives is addressed in Section G of the type that became popular in recent and other Internet retail sites) and sales this preamble and in the Final

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Regulatory Analysis at Section H of this M. Effective Date specified in this rule present an preamble. All of these alternatives The Commission has determined that unreasonable risk of injury. would reduce the expected impact of the rule will become effective 180 days List of Subjects in 16 CFR Part 1240 the rule on small business. However, as from publication of the final rule in the Consumer protection, Imports, Infants discussed in Sections G and H of this Federal Register and will apply to all preamble, these alternatives would not and children, Labeling, Law magnet sets imported into or otherwise enforcement, Incorporation by be expected to achieve the same injury distributed in the United States that are reductions as the rule, and some of the reference. manufactured or imported on or after For the reasons stated in the suggested alternatives would be beyond that date. The CPSA requires that the Commission’s authority. preamble, the Commission amends Title consumer product safety rules take 16 of the Code of Federal Regulations by K. Environmental Considerations effect not later than 180 days from their adding part 1240 to read as follows: promulgation, unless the Commission CPSC rules establishing performance finds there is good cause for a later date. PART 1240—SAFETY STANDARD FOR requirements are considered to ‘‘have 15 U.S.C. 2058(g)(1). In the NPR, the MAGNET SETS little or no potential for affecting the Commission proposed that the rule human environment,’’ and would take effect 180 days after Sec. environmental assessments are not promulgation of a final rule. The 1240.1 Scope, purpose, and effective date. usually prepared for these rules (16 CFR Commission received no comments on 1240.2 Definitions. 1240.3 Requirements. 1021.5 (c)(1)). This rule falls within the the proposed effective date. categorical exemption. 1240.4 Test procedure for determining flux N. Findings index. L. Executive Order 12988 (Preemption) 1240.5 Findings. The CPSA requires the Commission to As required by Executive Order 12988 make certain findings when issuing a Authority: 15 U.S.C. 2056 and 2058. (February 5, 1996), the CPSC states the consumer product safety standard. § 1240.1 Scope, purpose, and effective preemptive effect of the rule as follows: Specifically, the CPSA requires that the date. The rule is promulgated under Commission consider and make This part 1240, a consumer product authority of the CPSA. 15 U.S.C. 2051– findings about the degree and nature of safety standard, prescribes requirements 2089. Section 26 of the CPSA provides the risk of injury; the number of for magnet sets, as defined in § 1240.2, that ‘‘whenever a consumer product consumer products subject to the rule; and for individual magnets that are safety standard under this Act is in the need of the public for the rule and marketed or intended for use with or as effect and applies to a risk of injury the probable effect on utility, cost, and magnet sets. These requirements are associated with a consumer product, no availability of the product; and other intended to reduce or eliminate an State or political subdivision of a State means to achieve the objective of the unreasonable risk of injury to shall have any authority either to rule, while minimizing the impact on consumers who ingest magnets that are establish or to continue in effect any competition, manufacturing, and part of magnet sets. This standard takes provision of a safety standard or commercial practices. The CPSA also effect on April 1, 2015 and applies to all regulation which prescribes any requires the rule to be reasonably magnet sets and individual magnets, as requirements as the performance, necessary to eliminate or reduce an defined in § 1240.2, that are composition, contents, design, finish, unreasonable risk of injury associated manufactured or imported on or after construction, packaging or labeling of with the product; and issuing the rule that date. such product which are designed to deal must be in the public interest. 15 U.S.C. with the same risk of injury associated 2058(f)(3). § 1240.2 Definitions. with such consumer product, unless In addition, the Commission must (a) The definitions in section 3 of the such requirements are identical to the find that: (1) If an applicable voluntary Consumer Product Safety Act (15 U.S.C. requirements of the Federal Standard.’’ standard has been adopted and 2052) apply to this part 1240. 15 U.S.C. 2075(a). Upon application to implemented, that compliance with the (b) Magnet set means: Any aggregation the Commission, a state or local voluntary standard is not likely to of separable magnetic objects that is a standard may be excepted from this adequately reduce the risk of injury, or consumer product intended, marketed preemptive effect, if the state or local compliance with the voluntary standard or commonly used as a manipulative or standard: (1) Provides a higher degree of is not likely to be substantial; (2) that construction item for entertainment, protection from the risk of injury or benefits expected from the regulation such as puzzle working, sculpture illness than the CPSA standard, and (2) bear a reasonable relationship to the building, mental stimulation, or stress does not unduly burden interstate regulation’s costs; and (3) that the relief. Relevant factors in determining commerce. In addition, the federal regulation imposes the least intended uses of a magnet set include, government, or a state or local burdensome requirement that would but are not limited to: The government, may establish and continue prevent or adequately reduce the risk of manufacturer’s stated intent (such as on in effect a nonidentical requirement that injury. Id. These findings are stated in a label or Web site), if reasonable under provides a higher degree of protection § 1240.5 of the rule and are based on the circumstances; the content and than the CPSA requirement for the information provided throughout this nature of advertising, promotion, hazardous substance for the federal, preamble and the staff’s briefing marketing, packaging, or display state, or local government’s use. 15 packages for the proposed and final relating to the product; and the uses for U.S.C. 2075(b). rules. which the product is commonly Thus, with the exceptions noted recognized by consumers. above, the magnet set requirements O. Conclusion (c) Individual magnet means: An would preempt nonidentical state or For the reasons stated in this individual magnetic object intended or local requirements for magnet sets preamble, the Commission concludes marketed for use with or as a magnet set designed to protect against the same risk that magnet sets and individual magnets as defined in paragraph (b) of this of injury. that do not meet the requirements section.

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§ 1240.3 Requirements. four years old, or between the ages of (c) The need of the public for magnet Each magnet in a magnet set, and any four and 12 years. sets and the effects of this part on their individual magnet, that fits completely (2) Once ingested, these strong utility, cost, and availability. (1) We within the cylinder described in 16 CFR magnets begin to interact in the cannot estimate precisely the use value 1501.4 must have a flux index of 50 kG2 gastrointestinal tract, which can lead to that consumers receive from magnet mm2 or less when tested in accordance tissue death, perforations, and/or sets. In general, use value would be the with the method described in § 1240.4. fistulas, and possibly intestinal twisting amount of money that consumers and obstruction. If left untreated, these expend on the product, plus the § 1240.4 Test procedure for determining injuries can lead to infection of the consumer surplus (i.e., the difference flux index. peritoneal cavity and other life- between the market price and the (a) Select at least one magnet of each threatening conditions. The number of maximum amount consumers would shape and size in the magnet set. magnets swallowed increases the risk of have been willing to pay for the (b) Measure the flux index of each attraction and injury; but as few as two product). Magnet sets of the type that magnets can cause serious internal selected magnet in accordance with the have been involved in incidents would damage in a very short time. The fact procedure in sections 8.24.1 through not comply with this part. Therefore, that many medical professionals do not 8.24.3 of ASTM F963–11, Standard consumers will no longer be able to appreciate the health consequences of Consumer Safety Specification for Toy obtain utility from these magnet sets. magnet ingestion increases the severity Safety, approved on December 1, 2011. Although magnet sets clearly provide of the risk because a doctor who is The Director of the Federal Register utility to purchasers, magnet sets are not unfamiliar with these strong magnets approves this incorporation by reference necessities. Products that meet the may send a child home and expect the requirements of this part might be in accordance with 5 U.S.C. 552(a) and magnets to pass naturally. There are also developed that would serve some of the 1 CFR part 51. You may obtain a copy health consequences to the treatment purposes of magnet sets. This part from ASTM International, 100 Barr and surgery for removal of ingested would continue to allow strong magnets Harbor Drive, PO Box 0700, West magnets. There may be a risk of for other uses, such as commercial or Conshohocken, PA 19428; telephone gastrointestinal bleeding; leakage of industrial uses. 610–832–9585; www.astm.org. You may holes that were repaired; rupturing of (2) Individual magnets that are inspect a copy at the Office of the resectioned bowels; temporary paralysis intended or marketed for use with or as Secretary, U.S. Consumer Product of the bowels; use of a colostomy bag; magnet sets also must comply with the Safety Commission, Room 820, 4330 IV feeding initially, or for some longer requirements of this part. The East West Highway, Bethesda, MD time period; and compromise of Commission is aware that firms selling 20814, telephone 301–504–7923, or at nutrition and digestive function. Long- magnet sets have offered individual the National Archives and Records term health consequences can be severe, magnets. To avoid firms circumventing Administration (NARA). For as well: loss of intestinal tissue; the rule by selling individual magnets information on the availability of this compromised nutrition absorption; that are nevertheless intended or material at NARA, call 202–741–6030, adhesions and scarring of intestines; marketed to be used as magnet sets, this or go to: http://www.archives.gov/ need for a bowel transplant; and part covers such individual magnets. _ _ _ _ federal register/code of federal possible impediments to fertility for Individual magnets sold for other uses _ regulations/ibr locations.html. girls. Even children who pass the are not subject to this part. Thus, this § 1240.5 Findings. magnets naturally and do not require part does not affect the need for, utility, surgery still need close observation by or availability of individual magnets (a) Degree and nature of the risk of doctors and may undergo sequential x- that are sold for uses other than as injury. (1) Based on a review of National rays, thus, exposing children to repeated magnet sets. Electronic Injury Surveillance System dosages of radiation. (d) Other means to achieve the (NEISS) data, we have determined that (b) Number of consumer products objective of this part, while minimizing an estimated 2,900 ingestions of subject to this part. The market for the impact on competition and magnets from magnet sets were treated magnet sets increased substantially from manufacturing. (1) The Commission in emergency departments during the the time magnet sets were first considered various alternatives to the period from January 1, 2009 to introduced, through mid-2012. We requirements specified in this part. This December 31, 2013, an average of about estimate that the number of magnet sets part requires that if a magnet set 580 ingestion incidents per year. From that have been sold to U.S. consumers contains a magnet that fits within the review of databases other than NEISS, since 2009, the first year of significant small parts cylinder that CPSC uses for we are aware of 109 reported incidents sales, may have totaled about 2.7 testing toys, all magnets from that set occurring from January 1, 2009 through million sets, representing a value of must have a flux index of 50 kG2 mm2 June 24, 2014, involving the ingestion of roughly $50 million. Because of CPSC or less. In addition, individual magnets magnets by children between the ages of enforcement activity and actions taken intended or marketed for use with or as 1 and 15. Of those 109 incidents, 83 by firms since mid-2012, most firms magnet sets must meet these involved the ingestion of high-powered, have ceased selling the magnet sets. requirements. We do not believe that ball-shaped magnets that were Actual sales since the end of 2012 by options other than a rule establishing contained in products that meet the the firms remaining in the market are these requirements would sufficiently above definition of ‘‘magnet set,’’ and 17 unknown but believed to be small. The reduce the number and severity of of those 109 incidents possibly involved remaining major importing firm that injuries resulting from the ingestion of ingestion of this type of magnet. Thus, continues to sell the products is magnets from these magnet sets. The 100 reported incidents of ingestions estimated to hold a market share of less circumstances associated with this involved or possibly involved magnets than 2 percent of pre-enforcement product limit the likely effectiveness of from magnet sets. Hospitalization was action sales. The approximate number warning labels. Despite existing warning required to treat 61 of the 100 incidents. of products subject to this part (in terms labels and market restrictions, ingestion In 81 of the 100 incidents, the magnets of unit sales) could be fewer 25,000 sets incidents have continued to occur. were ingested by children younger than per year. Parents and caregivers may not

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appreciate the hazard associated with The 2009 through June 2012 NEISS of the magnet sets to U.S. importers, a magnet sets. Accordingly, parents and estimates suggest an estimated annual major variable cost, may have amounted caregivers will continue to allow average of about 610 emergency to about $10 per set, or an average of children access to the product. Children department-treated injuries, including about $8 million annually (i.e., 800,000 may not appreciate the hazard and will 544 injuries that were treated and sets × $10 import cost per set). We continue to mouth the items, swallow released and 66 injuries that required estimate other variable costs associated them, or in the case of young hospitalization. About 60 percent of with the production, packaging, adolescents and teens, use the magnets these emergency department-treated marketing, and distribution of the to mimic body piercings. Once the ingestions involved children ages 4 magnet sets would constitute a magnets are removed from their carrying through 12 years. Additionally, based significant proportion of the remaining case, the magnets bear no warnings to on estimates from the Commission’s difference between revenues ($20 guard against ingestion or aspiration; injury cost model (ICM), there were million) and import costs ($8 million). the small size of the individual magnets another 319 injuries treated annually in If we assume that variable costs amount precludes the addition of any warning. locations other than hospital emergency to about half of the difference, lost Because individual magnets from departments (such as doctors’ offices, producer surplus would amount to magnet sets are shared easily among clinics, ambulatory surgery centers, or about $6 million. children, many end users of the product direct hospital admissions). (6) Thus, we estimate costs of the rule are likely to have had no exposure to (3) After including the injuries treated to be about $6 million in lost producer any warning. outside of hospital emergency surplus and some unknown quantity of (2) The Commission has considered departments, there was an annual lost utility. Considering the injuries other alternatives to reduce the risk average of about 929 medically attended associated with magnet sets—and the from magnet sets: alternative injuries involving ingestions of magnets resulting societal costs, balanced against performance requirements, such as that were defined as at least ‘‘possibly the likely impact that the rule would setting a different flux limit or requiring of interest’’ during the period from 2009 have on firms producing and selling the bittering agents; safer packaging through June 2012. Injuries resulting product, and on consumers who would requirements, such as requiring a from such ingestions of magnets can be lose the utility of the product—we specific design for storage containers or severe and life threatening. The risk conclude that magnet sets pose an requiring child resistant packaging; posed by these magnets may not be unreasonable risk of injury and that the sales restrictions; continued corrective appreciated by children or caregivers, rule is reasonably necessary to reduce actions; and taking no action. Some of who may assume, mistakenly, that the that risk. these alternatives may not be within the consequences of ingesting magnets (f) Public interest. The regulations in Commission’s authority. Although each would be similar to ingesting any other this part are in the public interest of the alternative actions would have small object. However, once ingested, because they would reduce deaths and lower costs and less impact on small these strong magnets do not pass injuries associated with magnet sets in business, none is likely to significantly naturally. Rather, these magnets are the future. A rule establishing reduce the injuries associated with mutually attracted to each other and requirements that would eliminate ingestion of magnets from magnet sets. exert compression forces on the trapped magnet sets of the type that have been (e) Unreasonable risk. (1) As stated in gastrointestinal tissue. involved in incidents will mean that paragraph (a) of this section, according (4) We estimate that these injuries children will have less access to this to NEISS, an estimated 2,900 ingestions resulted in annual societal costs of product, thereby reducing the number of of magnets from magnet sets were about $28.6 million (in 2012 dollars) incidents of children swallowing the treated in emergency departments during the 2009 through June 2012 time magnets and the resulting cost to society during the period from January 1, 2009 period. The average estimated societal of treating these injuries. to December 31, 2013, an average of costs per injury was about $27,000 for (g) Voluntary standards. Currently, about 580 ingestion incidents per year. injuries treated in locations other than there is no voluntary standard for From sources other than NEISS, CPSC emergency departments (such as magnet sets, nor any activity to develop has reports of 100 incidents of physicians’ offices, clinics, ambulatory a voluntary standard for magnet sets. ingestions that involved or possibly surgery centers, or direct hospital (h) Relationship of benefits to costs. involved magnets from magnet sets, admissions); about $21,000 for injuries (1) Based on reports to the CPSC, including one fatality. that were treated and released from ingestions of small magnets contained (2) For the regulatory analysis, we emergency departments; and about in magnet sets have caused multiple, considered the period of time, 2009 $130,000 for injuries that required high-severity injuries that require through June 2012, before CPSC’s admission to the hospital for treatment. surgery to remove the magnets and compliance activities affected the Preventing these injuries would be the repair internal damage. Based on the market. We identified 86 ingestions of expected benefit resulting from the rule. information discussed in paragraph (e) high-powered and/or ball-shaped (5) The costs of the rule would consist of this section, we estimate that the magnets, which occurred from 2009 of the lost producer surplus to firms that benefits of this part might amount to through June 2012 reported through produce and sell magnet sets, plus the about $28.6 million annually. NEISS. These incidents were lost use value that consumers would (2) The costs of the rule, in terms of determined to involve, or possibly experience when magnet sets that do reduced profits for firms and lost utility involve, magnet sets. Based on these 86 not comply with the rule are no longer by consumers, also are uncertain. incidents, we have determined that an available. Sales of magnet sets averaged However, based on annual sales estimated 2,138 ingestions of magnets roughly 800,000 sets annually during estimates available for the 2009 through from magnet sets were treated in the 2009 through mid-2012 time period, June, 2012, study period, these costs emergency departments from January 1, with an average retail price of about $25 could amount to about $6 million in lost 2009 to June 2012. About 11 percent of per set in 2012. Thus, total industry producer surplus and some unknown the victims of these ingestion incidents revenues averaged about $20 million quantity of lost utility. required hospitalization, as opposed to annually (i.e., 800,000 sets × $25 per set) (i) Least burdensome requirement. We victims who were treated and released. in 2012 dollars. The average import cost have considered several alternatives to

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this part. We conclude that none of the instructions for the products. magnet sets through corrective actions, these alternatives would adequately However, magnet sets currently and i.e., recalls of the product. However, reduce the risk of injury. Alternative formerly on the market provide these actions would not prevent performance requirements might allow a warnings concerning the potential additional companies from entering the different flux index for magnets hazard to children. Accordingly, it is market and importing magnet sets into contained in magnetic sets or require unlikely that even strengthened the country in the future. The the addition of an aversive (bittering) warnings would substantially reduce Commission also has the option of agent to the magnets. Theoretically, the incidence of magnet ingestions. This taking no regulatory action. Although it these alternatives might allow is particularly true for incidents is possible that, with increased continued production of some current involving older children and awareness of the hazard over time, some products. However, it is unclear adolescents. Moreover, children who are reduction in ingestions could occur, the whether a different flux index would old enough to understand the warnings succeed in making products that have may still not abide by them. Some type magnitude of any such reduction in the desired physical qualities that make of sales restriction, limiting the location incidents is uncertain and would likely them sufficiently enjoyable to adults, where magnet sets could be sold, might be smaller than those resulting from the and at the same time eliminate the be possible. However, even with requirements of this part. characteristics that make these strong restrictions on sales, ingestions are still Dated: September 26, 2014. magnets hazardous to children. likely to occur as children encounter Todd A. Stevenson, Furthermore, the effectiveness of these magnets in the home, at school, or Secretary, U.S. Consumer Product Safety aversive agents in reducing magnet other locations where adults have Commission. ingestions is questionable. We have brought them and made them available considered the possibility of requiring to children. The Commission could [FR Doc. 2014–23341 Filed 10–2–14; 8:45 am] rigorous warnings on the products or in continue to address the hazard from BILLING CODE 6355–01–P

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Part V

Department of the Interior

Fish and Wildlife Service 50 CFR Part 17 Endangered and Threatened Wildlife and Plants; Determination of Threatened Status for the Western Distinct Population Segment of the Yellow-billed Cuckoo (Coccyzus americanus); Final Rule

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DEPARTMENT OF THE INTERIOR October 3, 2013, we published in the Peer review and public comment. We Federal Register a proposed rule (78 FR sought comments from independent Fish and Wildlife Service 61621) to list the western DPS of the specialists to ensure that our yellow-billed cuckoo (hereafter referred determination is based on scientifically 50 CFR Part 17 to as western yellow-billed cuckoo). sound data, assumptions, and analyses. [Docket No. FWS–R8– ES–2013–0104; This rule finalizes our determination for We invited these peer reviewers to 4500030113] listing the western yellow-billed comment on our listing proposal. We cuckoo. also considered all other comments and RIN 1018–AY53 The basis for our action. Under the information we received during the Endangered Species Act, we can three open comment periods. We have Endangered and Threatened Wildlife determine that a species is an considered and incorporated any and Plants; Determination of endangered or threatened species based pertinent information from all Threatened Status for the Western on any of five factors: (A) The present comments and information we received Distinct Population Segment of the or threatened destruction, modification, into this final rule. See the Summary of Yellow-billed Cuckoo (Coccyzus or curtailment of its habitat or range; (B) Comments and Recommendations americanus) overutilization for commercial, section, below, for a summary of AGENCY: Fish and Wildlife Service, recreational, scientific, or educational comments we received on the proposed Interior. purposes; (C) disease or predation; (D) listing. ACTION: Final rule. the inadequacy of existing regulatory mechanisms; or (E) other natural or Previous Federal Actions SUMMARY: We, the U.S. Fish and manmade factors affecting its continued On October 3, 2013, the proposed rule Wildlife Service (Service), determine existence. to list the western yellow-billed cuckoo threatened status under the Endangered We have determined that the western as a threatened species under section 4 Species Act of 1973 (Act), as amended, yellow-billed cuckoo meets the of the Act (16 U.S.C. 1531 et seq.) was for the western distinct population definition of a threatened species and is published in the Federal Register (78 segment (DPS) of the yellow-billed likely to become endangered throughout FR 61621). This rule finalizes the cuckoo (Coccyzus americanus), a its range within the foreseeable future, Federal action for this species. For species located from the western based on the immediacy, severity, and additional information on previous portions of the United States, Canada, scope of the threats to its continued Federal actions for the western yellow- and Mexico. This final rule implements existence. These include habitat loss billed cuckoo, please see the 12-month the Federal protections provided by the associated with manmade features that petition finding (66 FR 38611; July 25, Act for this DPS. alter watercourse hydrology so that the 2001) and proposed listing rule (78 FR DATES: This rule is effective November natural processes that sustained riparian 61621; October 3, 2013). 3, 2014. habitat in western North America are We proposed critical habitat for the greatly diminished. Loss and western DPS of the yellow-billed cuckoo ADDRESSES: This final rule is available degradation of habitat has also occurred on August 15, 2014 (79 FR 48547). on the Internet at http:// as a result of livestock overgrazing and www.regulations.gov and at the encroachment from agriculture. These Background Sacramento Fish and Wildlife Office at losses are exacerbated by the conversion In this section of the final rule, it is http://www.fws.gov/sacramento/. of native habitat to predominantly our intent to discuss only those topics Comments and materials received, as nonnative vegetation. Habitat loss directly relevant to the listing of the well as supporting documentation used results in the additional effects western yellow-billed cuckoo as a in the preparation of this rule, will be associated with small and widely threatened species. Please refer to the available for public inspection, by separated habitat patches such as proposed listing rule for the western appointment, during normal business increased predation and reduced yellow-billed cuckoo for detailed hours at: U.S. Fish and Wildlife Service, dispersal potential. This threat is background and species information (78 Sacramento Fish and Wildlife Office, particularly persistent where small FR 61621; October 3, 2013). 2800 Cottage Way, Room W–2605, habitat patches are in proximity to Species Information Sacramento, CA 95825; by telephone human-altered landscapes, especially 916–414– 6600; or by facsimile 916– agricultural fields, resulting in the The yellow-billed cuckoo (Coccyzus 414–6712. potential for pesticides to poison americanus) is a member of the avian FOR FURTHER INFORMATION CONTACT: individual western yellow-billed family Cuculidae and is a Neotropical Jennifer Norris, Field Supervisor, cuckoos and reduce their prey base. migrant bird that winters in South Sacramento Fish and Wildlife Office What the rule does. We are making a America and breeds in North America. (see ADDRESSES). If you use a final listing determination regarding the Yellow-billed cuckoos spend the winter telecommunications device for the deaf western distinct population segment of in South America, east of the Andes, (TDD), call the Federal Information the U.S. population of the yellow-billed primarily south of the Amazon Basin in Relay Service (FIRS) at 800– 877–8339. cuckoo pursuant to the Endangered southern Brazil, Paraguay, Uruguay, SUPPLEMENTARY INFORMATION: Species Act. This species occurs in the eastern Bolivia, and northern Argentina western United States, Canada, and (Ehrlich et al. 1992, pp. 129–130; Executive Summary Mexico. The western U.S. States include American Ornithologists’ Union (AOU) Why we need to publish a rule. Under Washington, Idaho, Montana, Oregon, 1998, p. 247; Johnson et al. 2008b, pp. the Endangered Species Act, a species California, Nevada, Wyoming, Utah, 18–29). The breeding range of the entire may warrant protection through listing Colorado, Arizona, New Mexico, and species formerly included most of North if it is endangered or threatened Texas. This document adds the western America from southeastern and western throughout all or a significant portion of DPS of the yellow-billed cuckoo Canada (southern Ontario, Quebec, and its range. Listing a species as an (Coccyzus americanus) as a threatened southwestern British Columbia) south endangered or threatened species can species to the List of Endangered and throughout the continental United only be completed by issuing a rule. On Threatened Wildlife (50 CFR 17.11(h)). States to the Greater Antilles and

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northern Mexico (AOU 1957, pp. 269– rule, concluded that close examination To establish the range of the 270; AOU 1983, p. 284; AOU 1998, p. of the DNA studies conducted to date on population segment under 247). Currently, the species no longer cuckoos infers a deeper genetic consideration, we used the area breeds in western Canada and the divergence between western and eastern occupied by the western yellow-billed northwestern continental United States cuckoos that with further analysis cuckoo (the subspecies) originally (Washington, Oregon, and Montana). would likely support division of the defined by Ridgway (1887, p. 273) and Adult yellow-billed cuckoos have a yellow-billed cuckoo into two later refined by other researchers (AOU fairly stout and slightly down-curved subspecies. She indicated that genetic 1957, pp. 269–270; Oberholser and bill; a slender, elongated body with a markers used in all three previously Kincaid 1974, pp. 434–435; Hughes long-tailed look; and a narrow yellow conducted genetics studies evolve too 1999, Figure 1). After careful ring of colored, bare skin around the slowly to reveal genetic structure within consideration of other possible eye. The plumage is loose and grayish- the species. She recommended that population segment configurations, we brown above and white below, with future studies use microsatellite determined that the Continental Divide reddish primary flight feathers. The tail techniques because they would be more (generally the crest of the Rocky feathers are boldly patterned with black informative to a study of DNA at the Mountains based on watershed and white below. They are a medium- subspecies level. The existing DNA boundaries), the watershed divide sized bird about 12 inches (in) (30 studies, however, show that western between the Rio Grande and Pecos centimeters (cm)) in length, and about 2 yellow-billed cuckoos have developed River, and the Chihuahuan Desert in ounces (oz) (60 grams (g)) in weight. The unique genetic haplotypes not present Mexico was the best division between bill is blue-black with yellow on the in eastern cuckoos and that these are eastern and western populations. The basal half of the lower mandible. The reflected in phenotypic (outwardly area that we are considering occupied legs are short and bluish-gray. All visible) divergence that has been by the potential western DPS for the cuckoos have a zygodactyl foot with two observed between eastern and western yellow-billed cuckoo is closely aligned toes pointing forwards and two toes yellow-billed cuckoos. Please refer to with the traditionally defined range of pointing backwards. Juvenile yellow- the October 3, 2013, proposed listing the western yellow-billed cuckoo billed cuckoos resemble adults, except rule (78 FR 61624–61645) for a more subspecies as partially described in the the tail patterning is less distinct and detailed discussion of information on July 25, 2001, 12-month finding (66 FR the lower bill has little or no yellow. taxonomy for the species. 38611). Our goal is to determine if this Males and females differ slightly and are Distinct Vertebrate Population Segment western population meets the criteria of indistinguishable in the field (Hughes Analysis a DPS and, if so, whether the range 1999, pp. 2–3). boundaries identified in the literature Typically a secretive and hard-to- Under the Act, we must consider are appropriate for the boundary of the detect bird, adult yellow-billed cuckoos listing any species, subspecies, or, for DPS. This DPS analysis is based solely have a distinctive ‘‘kowlp’’ call, which vertebrates, any DPS of these taxa if on the range during the breeding season is a loud, nonmusical series of notes there is sufficient information to because the migration route and winter that slows down and slurs toward the indicate that such action may be range of western yellow-billed cuckoos end. Yellow-billed cuckoos advertise for warranted. To implement the measures are poorly known. a mate using a series of soft ‘‘cooing’’ prescribed by the Act and its notes, which they give at night as well Congressional guidance, we (along with The geographical breeding range of as during daytime. Both members of a the National Marine Fisheries Service) the yellow-billed cuckoo in western pair use a soft knocking call as a contact developed policy that addresses the North America includes suitable habitat or warning call near the nest (Hughes recognition of DPSs for potential listing within the low- to moderate-elevation 1999, pp. 8–9). Please refer to the actions (61 FR 4722; February 7, 1996). areas west of the crest of the Rocky October 3, 2013, proposed listing rule The policy allows for more refined Mountains in Canada, Mexico, and the (78 FR 61623–61642) for additional application of the Act that better reflects United States, including the upper and species information. the biological needs of the taxon being middle Rio Grande, the Colorado River considered, and avoids the inclusion of Basin, the Sacramento and San Joaquin Taxonomy entities that do not require its protective River systems, the Columbia River Recent research on yellow-billed measures. system, and the Fraser River. In Mexico, cuckoo genetics using mitochondrial Before we can evaluate whether a the range includes the Cape Region of DNA did not find any fixed genetic given population segment is a DPS Baja California Sur, and river systems in differences between eastern and western under the Act, we must first determine the Mexican States of Sonora, Sinaloa, yellow-billed cuckoos (Farrell 2013, pp. if any population segments exist for the western Chihuahua, and northwestern 165–170). The author concluded that vertebrate species. As discussed in the Durango. Eastern yellow-billed cuckoos the separation into distinct subspecies Taxonomy section of the proposed rule (Coccyzus americanus americanus) may be too recent to be expressed in a (78 FR 61621; October 3, 2013), much of breed east of the Rocky Mountains; single mitochondrial gene and the available scientific information north to North Dakota and southern recommended future studies using next- supports the yellow-billed cuckoos that Ontario, Canada; south to eastern generation sequencing techniques. nest in western North America as a Mexico; and on the islands of the Avian geneticist Janice Hughes, Ph.D., a biologically separate population Caribbean (AOU 1957, pp. 269–270) peer reviewer of the proposed listing segment. (Figure 1).

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Under our DPS policy, three elements Discreteness America by the high-elevation zone of are considered in a decision regarding the Rocky Mountains. Yellow-billed the status of a possible DPS as Under our DPS Policy, a population cuckoos breed both east and west of the segment of a vertebrate species may be endangered or threatened under the Act. crest of the Rocky Mountains, where considered discrete if it satisfies either The elements are: (1) Discreteness of the suitable habitat occurs (Johnsgard 1986, of the following two conditions: (1) It is population segment in relation to the p. 201). We generally define the crest of markedly separated from other remainder of the species to which it the Rocky Mountains and Continental populations of the same taxon as a belongs; (2) the significance of the Divide as the high-elevation zone consequence of physical, physiological, population segment to the species to between the drainages flowing west and ecological, or behavioral factors east in the United States, Canada, and which it belongs; and (3) the population (quantitative measures of genetic or segment’s conservation status in relation Mexico, although some areas such as morphological discontinuity may near the Sangre de Cristo Range in to the Act’s standards for listing. In provide evidence of this separation); or other words, if we determine that a southern Colorado and northern New (2) it is delimited by international Mexico is east of the east-flowing Rio population segment of a vertebrate governmental boundaries within which species being considered for listing is Grande River. The division between the significant differences in control of western and eastern population both discrete and significant, we would exploitation, management of habitat, segments spans a distance of about conclude that it represents a DPS, and conservation status, or regulatory 2,200 miles (mi) (3,540 kilometers (km)) thus a ‘‘species’’ under section 3(16) of mechanisms exist that are significant in from southwest British Columbia near the Act, whereupon we would evaluate light of section 4(a)(1)(D) of the Act. the Canadian border along the crest of the level of threat to the DPS based on The analysis of the population the Rocky Mountains based on the five listing factors established under segment of the yellow-billed cuckoo in watershed boundaries, south along the section 4(a)(1) of the Act to determine western North America is based on the Rio Grande-Pecos Rivers watershed whether listing the DPS as an first of those two conditions, the marked divide to the United States-Mexico ‘‘endangered species’’ or a ‘‘threatened separation from other populations. From border in the Big Bend area of Texas, species’’ is warranted. southwest British Columbia along the then into Mexico along the eastern and Below, we evaluate under our DPS Canadian border to the southern end of southern boundaries of the State of policy whether the population segment the Sangre de Cristo Mountains in Chihuahua south to the southern border of yellow-billed cuckoos that occurs in northern New Mexico, nesting yellow- of the State of Durango and to the the western United States, northwestern billed cuckoos in western North Pacific Ocean along the southern border Mexico, and southwestern Canada America are separated from nesting of the State of Sinaloa. The distance of qualifies as a DPS under the Act. yellow-billed cuckoos in eastern North separation between breeding yellow-

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billed cuckoos in the east and west Lower Green River Basin from the eastern North America have colonized varies along this division from 160 mi Seedskadee National Wildlife Refuge the Pecos River system. Much of the (257 km) to more than 400 mi (644 km), (NWR) to the Flaming Gorge Reservoir area between the Pecos River and the and consists entirely of areas of and west to the Bear River Drainage in Rio Grande in New Mexico and Texas unoccupied, unsuitable habitat for Wyoming; along the Yampa River near consists of internal ephemeral drainages breeding yellow-billed cuckoos. The one Craig in northwest Colorado, and the that are not connected to any major river exception to this distance of separation Rio Grande River near Del Norte, and systems and have no riparian habitat. is along the Rio Grande in Brewster San Luis Valley of south-central Considering these factors along with the County, in southwestern Texas, where Colorado; and the Henry’s Fork River in information on physical factors, we eastern yellow-billed cuckoos breed as Utah and Wyoming. Nevertheless, most have included Texas west of the Rio far west as Rio Grande Village and of the crest of the Rocky Mountains Grande-Pecos River watershed boundary western yellow-billed cuckoos are found includes a wide region of higher within the range of the western upstream along the river approximately elevation where habitat for the species population. This physical division 50 mi (80 km) to the west. does not occur. In Colorado and coincides with behavioral differences Yellow-billed cuckoos historically Wyoming, the region above 6,000 ft between eastern and western yellow- bred at the southern tip of Vancouver (1,850 m) is typically more than 150 mi billed cuckoos, as discussed below. Island and in the Fraser River valley (240 km) wide on an east-west axis South of the United States-Mexico north to Kamloops in southwestern (Oxford 1995, p. 82). border, yellow-billed cuckoos are British Columbia, Canada (Bent 1940, p. The separation of the western yellow- separated by extensive areas of desert 64; Campbell et al. 1990, p. 481). The billed cuckoo population segment from that lack suitable nesting and foraging species was apparently never common, yellow-billed cuckoos in the eastern habitat. In Mexico, the Chihuahuan with 23 records (18 specimen and 5 population segment continues south Desert widens to 350 mi (563 km), and sight records) between 1881 and 1927. along the crest of the Rockies into includes nearly all of the States of Two of these observations were of pairs southern Colorado and northern New Chihuahua and Coahuila. There are very believed to be nesting but not Mexico, then the Rocky Mountains end few records of yellow-billed cuckoos for confirmed. Since the 1920s, the species and the separation is along the this region, and we are not aware of any has been recorded five times in British watershed boundary between the Rio nesting records for either State. Suitable Columbia, with four of those records Grande and the Pecos Rivers in central breeding habitat or connective riparian occurring since 1990 from the eastern New Mexico (Sangre de Cristo corridors are also lacking. Published half of the Province in areas not Mountains), and southwest Texas, range maps for the species do not considered breeding habitat (Campbell terminating at the Rio Grande in the Big include the eastern three-quarters of et al. 1990, p. 481; Siddle 1992, p. 1169; Bend National Park. In this region, the Chihuahua or the western three-quarters Cornell Lab of Ornithology 2012). eastern and western yellow-billed of Coahuila as part of the species’ Today, the species is considered cuckoo populations are separated by breeding range (Howell and Webb 1995, extirpated as a breeder from the arid basins and isolated mountain p. 347; Hughes 1999, p. 1). There are Province, but adult, nonbreeding ranges that emerge from a high desert only 12 records of yellow-billed cuckoos individuals still occur irregularly plateau. These mountain ranges from from Chihuahua: 11 specimens from the (British Columbia Conservation Data north to south include the Sangre de 1940s to 1960, and a sight observation Centre 2013). Cristo Mountains and Sacramento in 2003. There are only nine records of In the northern Rocky Mountains and Mountains in central and southern New the species from Coahuila: six specimen northern Great Plains—from the Canada Mexico, the Guadalupe Mountains and and three sight records (1958, 1988, and border south through Colorado—the Delaware Mountains on the Texas-New 2011). Three of the specimens from yellow-billed cuckoo is ‘‘extremely rare Mexico border, and the Davis Coahuila were identified as eastern and local’’ as a breeding bird both east Mountains, Del Norte Mountains, and yellow-billed cuckoos on their museum and west of the Rocky Mountains Santiago Mountains in western Texas records, and the others were not (Hughes 1999, p. 3). While the species south to the Chisos Mountains in the identified to subspecies. Seven breeds locally in river valleys in Big Bend National Park on the border specimens from Chihuahua were southern Idaho, southwestern Wyoming, with Mexico. identified to subspecies and six of these western Colorado, and in Utah (Hughes In southern New Mexico and western were considered the western subspecies. 1999, pp. 1–3), it is quite rare or absent Texas where western yellow-billed It is likely that many, if not most, of the within the higher Rocky Mountains cuckoos nest along the Rio Grande and records from this region are of migrating (Johnsgard 1986, p. 201). An eastern yellow-billed cuckoos nest along yellow-billed cuckoos, as 16 are from examination of the distributional the Pecos River, the geographical May to mid-June or from late records for the Rocky Mountain region separation is as little as 160 mi (257 km) September, and only 5 are from late indicates that the area has had few and even closer along the Rio Grande June or July, the primary breeding records of yellow-billed cuckoos and the (50 mi; 80 km). The closer proximity of season. species is even scarcer at elevations western and eastern yellow-billed From this information we concluded above approximately 6,000 feet (ft) cuckoos in this region may be caused in that the Chihuahua-Coahuila border was (1,850 meters (m)), and almost never part by the lower height of the mountain the most biologically supportable breeds above 7,000 ft (2,154 m) (Bailey range being a less effective barrier boundary for the population segment. 1928, pp. 307–309; Phillips et al. 1964, (Hubbard 1978, p. 32; Howe 1986, p. 2). The boundary then follows the southern p. 45; Bailey and Niedrach 1965, pp. Historically, this gap was wider, border of Chihuahua west to the 404–406; Johnsgard 1986, p. 201; because the banks of the Pecos River did Continental Divide, then south along the Corman and Magill 2000, pp. 10, 15; not have riparian woodland and the area divide through the State of Durango and Howe and Hanberg 2000, p. 1–20). was not used by the species. Today, the west along the southern border of Exceptions to the elevational limit do riverine habitat along the Pecos River Durango and Sinaloa. There are no occur and recent records of yellow- consists primarily of introduced breeding season records for yellow- billed cuckoos have been confirmed tamarisk (Tamarix spp.), and it is billed cuckoos from the State of Nayarit above 6,000 ft (1,850 m) in the areas of thought that yellow-billed cuckoos from or Jalisco or farther south along the

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Pacific coast of Mexico. The species has addition to separating morphological western populations and eastern occurred sporadically in the State of differences. populations. Zacatecas, but the records are from east Information, including timing of Under our DPS policy, the standard of the Continental Divide. migration, indicates that yellow-billed for discreteness does not require Eastern and western yellow-billed cuckoos from Texas west of the Pecos absolute separation because this can cuckoos are highly migratory, and the River (from the Rio Grande upstream of rarely be demonstrated for any two populations may spend winters in Big Bend) and from northwestern population of organism. For the yellow- overlapping regions in South America. Mexico (Chihuahua, Sonora, Sinaloa, billed cuckoo populations in western However, we do not have information to Durango, Baja California Sur) exhibit North America, we have met this indicate that there is anything more greater similarity to yellow-billed standard, and, therefore, we consider than an extremely low level of cuckoos in western North America, and the western population segment of the interchange (if any at all) between the those on the Pecos River in Texas and yellow-billed cuckoo from southern two populations during the breeding eastern Mexico (Coahuila, Nuevo Leon, British Columbia, Canada south along season. This conclusion is supported by Tamaulipas, San Luis Potosi) are more the Continental Divide (including the differences in habitat use and similar to yellow-billed cuckoos in the Rio Grande basin) in the United States morphology, which are genetically east (Wauer 1971, p. 96; Oberholser and into Mexico, and ending at the coast in controlled traits, as discussed in the Kincaid 1974, pp. 434–435; Franzreb the State of Sinaloa, Mexico, to be following sections. and Laymon 1993, pp. 17–28; Hughes discrete per our DPS policy. We Although the Rocky Mountains and 2000, in litt. pp. 1–2, 26; Sproul 2000, conclude that the western population the Chihuahuan Desert may not wholly in litt., pp. 1–5). Based on the best segment of the yellow-billed cuckoo is prevent movement of yellow-billed available science, the watershed discrete from the remainder of the cuckoos between the east and west, boundary between the Rio Grande and species because the yellow-billed Pecos Rivers is the optimum dividing cuckoo population segment that nests especially in a migratory species that line between eastern and western west of the Continental Divide (as winters far to the south, and moves yellow-billed cuckoo in this area. defined above) and in northwestern thousands of miles between its Based on migration timing, yellow- Mexico is markedly separated wintering and breeding grounds, the billed cuckoos split into two geographically and behaviorally from all available information indicates that this populations. This split occurs along the other populations of yellow-billed mountain range and desert substantially line that corresponds with the cuckoo, including those that nest in separates yellow-billed cuckoo traditional subspecies boundary (see eastern North America. populations during the breeding season, Figure 1, above). thereby effectively separating them into Significance discrete populations. The separation Discreteness Conclusion Under our DPS policy, once we have between yellow-billed cuckoo The available information indicates determined that a population segment is population segments in the east and that the yellow-billed cuckoo discrete, we consider its biological and west is a physical one that is maintained population segment that occurs west of ecological significance to the larger by their behavioral differences, which the Continental Divide (as defined taxon to which it belongs. Our DPS we discuss below. above) in the United States, in policy provides several potential Behavioral Discreteness southwestern Canada, and in considerations that may demonstrate the northwestern Mexico is markedly significance of a population segment to Data collected from publications and separated from the eastern population the remainder of its taxon, including: (1) other sources demonstrate the existence segment of yellow-billed cuckoo, Evidence of the persistence of the of behavioral differences between including those that nest in eastern discrete population segment in an yellow-billed cuckoos in the east and North America, eastern Mexico, certain ecological setting unusual or unique for west. Caribbean Islands, and the Yucatan the taxon, (2) evidence that loss of the Yellow-billed cuckoo populations in Peninsula. The distribution of the discrete population segment would the east and west differ in the timing of western populations is markedly result in a significant gap in the range arrival on the breeding grounds in the separated physically (geographically) of the taxon, (3) evidence that the spring. Yellow-billed cuckoos in during the breeding season from the population segment represents the only western North America arrive on the distribution of other yellow-billed surviving natural occurrence of a taxon breeding grounds 4 to 8 weeks later than cuckoo populations by high mountains, that may be more abundant elsewhere as eastern yellow-billed cuckoos at similar extensive desert, or nonhabitat areas an introduced population outside its latitude (Franzreb and Laymon 1993, with the shortest geographical historic range, or (4) evidence that the pp. 24–25; Hughes 1999, pp. 5–6, 12–13; separation occurring across 160 mi (257 discrete population segment differs Laymon 2000, in. litt., pp. 15–16). km) of desert between the Pecos River markedly from the remainder of the Timing of spring migration and arrival and Rio Grande in southern New species in its genetic characteristics. on the breeding grounds has been Mexico and western Texas with the We have found substantial evidence determined to be the result of an exception of nesting of western yellow- that two of these four significance evolved response under genetic control, billed cuckoos near Big Bend National criteria (numbers 2 and 4) are met by the and is likely caused by east-west Park in Texas. Evidence that this discrete population segment of yellow- climatic, habitat, and food availability geographical separation between billed cuckoos that occurs west of the differences (Cresswell et al. 2011, pp. populations has been consistent through Continental Divide (as defined above). 13–15; Pulido et al. 2001). The time may be found in the differences in We address these significance factors watershed boundary between the Rio the two populations’ biology and below as they relate to the population Grande and the Pecos Rivers also morphology. Even in this area of closest segment of western yellow-billed appears to separate yellow-billed proximity, information on genetically cuckoo. We focus on whether the loss of cuckoos that arrive in spring migration controlled behavior available in the this population segment would result in earlier on the Pecos River and those that scientific literature provides evidence of a significant gap in the range of the arrive later on the Rio Grande in a biological separation between the taxon and evidence that the discrete

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population segment differs from other appeared to take place in extreme • Adult yellow-billed cuckoos in the population segments in its genetic western New Mexico or extreme eastern west have a lower mandible that is characteristics in demonstrating Arizona (Banks 1988, p. 476). A orange-yellow, while yellow-billed significance of the DPS. subsequent analysis, based on available cuckoos in the east have lower specimens from New Mexico and mandibles that are bright yellow Evidence That Loss of the Discrete western Texas, showed the watershed (Franzreb and Laymon 1993, p. 26; Population Segment Would Result in a boundary between the Pecos River and Laymon 2000, in litt., p. 14). Significant Gap in the Range of the the Rio Grande as the apparent • As noted previously, adult yellow- Taxon boundary between the smaller eastern billed cuckoos in the west are larger and Loss of the discrete population and larger western birds, with a majority heavier, on average, than adult yellow- segment would result in a significant of yellow-billed cuckoos on the Rio billed cuckoos in the east. More than 80 gap in the range of the taxon because an Grande above Big Bend being larger percent of individuals can be assigned extensive area would be without yellow- western birds (63 percent, n=19) and the to east or west based on morphological billed cuckoos if the western population majority of yellow-billed cuckoos on the measurements (see also Oberholser and segment were lost. Seven entire States Pecos River being smaller eastern birds Kincaid 1974, pp. 434–435; Banks 1988, and substantial portions of five (82 percent, n=11) (Franzreb and pp. 473–477; 1990, p. 538; Franzreb and additional States in the United States, Laymon 1993, p. 25). This is the only Laymon 1993, pp. 17–28). The size and six States in Mexico, that are area where the ranges of the western differences between eastern and western currently occupied would have no and eastern population segments are in cuckoos are discussed in detail in the breeding populations of the species. close proximity; elsewhere the two Taxonomy section of the proposed rule Bird migration experts divide the North populations are separated by wide (78 FR 61624–61625; October 3, 2013). American continent into four migratory expanses of unsuitable, unoccupied Information, including morphology, flyways: The Atlantic, Mississippi, habitat (see Figure 1, above). indicates that yellow-billed cuckoos Central, and Pacific. The range of the One peer reviewer measured 35 from Texas west of the Pecos River yellow-billed cuckoo west of the Rocky cuckoos from the Rio Grande and 25 (from the Rio Grande upstream of Big Mountains covers the entire Pacific cuckoos from the Pecos River in the Bend) and from northwestern Mexico flyway and half of the Central flyway. field. With the exception of wing and (Chihuahua, Sonora, Sinaloa, Durango, Additionally, the range of the yellow- tail measurements, accurate Baja California Sur) exhibit greater billed cuckoo west of the Rocky measurements are hard, if not similarity to yellow-billed cuckoos in Mountains covers 1,350,000 square (sq) impossible, to obtain from live birds western North America, and those on mi (3,496,500 sq km), or approximately under field conditions. Male and female the Pecos River in Texas and eastern 40 percent of the lower 48 States. Even cuckoos averaged longer wings and tails Mexico (Coahuila, Nuevo Leon, though the actual area occupied by the on Rio Grande than on the Pecos River, Tamaulipas, San Luis Potosi) are more species in western North America is less with the difference being more similar to yellow-billed cuckoos in the than the total area identified above, the pronounced on male than on female east (Wauer 1971, p. 96; Oberholser and potential loss of the western population cuckoos. Sample sizes were insufficient Kincaid 1974, pp. 434–435; Franzreb of the yellow-billed cuckoo would to do t-tests to compare the means for and Laymon 1993, pp. 17–28; Hughes constitute a significant gap in the range the wing and tail data. The bill 2000, in litt. pp. 1–2, 26; Sproul 2000, of the species in North America. measurements that the reviewer took in in litt., pp. 1–5). Based on the best available science, the watershed Evidence That the Discrete Population the field were not reliable and therefore boundary between the Rio Grande and Segment Differs Markedly From Other could not be compared, and as a result Pecos Rivers is the optimum dividing Populations of the Species in Its Genetic the comparison using the Discriminant line between eastern and western Characteristics Function equations developed by Franzreb and Laymon (1993, pp. 17–28) yellow-billed cuckoo in this area. Data collected from publications and could not be used reliably on the data. Based on morphological other sources demonstrate the existence Other physical and morphological measurements, bill color of young and of morphological and physiological differences exist between yellow-billed adults, egg size and weight, and differences between yellow-billed cuckoos in the east and west, and migration timing, yellow-billed cuckoos cuckoos in the east and west. provide additional evidence of split into two populations. This split Morphologically, the yellow-billed ecological significance. These include: occurs along the line that corresponds cuckoos in western North America are • Yellow-billed cuckoos in western with the traditional subspecies generally larger, with significantly North America produce larger eggs (1.2 boundary (see Figure 1, above). longer wings, longer tails, and longer percent longer, 0.6 percent wider, and Phenotypically or outwardly expressed and deeper bills (Franzreb and Laymon 3.2 percent heavier) with thicker traits present substantial evidence that 1993, p. 25). Banks, in a review of the eggshells (7.1 percent thicker) (Hughes the western population segment of species taxonomic status (1988, pp. 1999, p. 14), which is an evolved trait yellow-billed cuckoo differs markedly 473–477), grouped yellow-billed cuckoo that would help yellow-billed cuckoos from other populations of the species. specimens into 19 regional groups, 7 in in the west to cope with potential higher However, the strongest evidence of the western United States and western egg water loss in the hotter, drier differences between yellow-billed Mexico, 10 in the eastern United States conditions of western North America cuckoos in the western population and eastern Mexico, 1 in New Mexico, (Hamilton and Hamilton 1965, pp. 426– segment and those of the east in genetic and 1 in the Caribbean. He found 430; Ar et al. 1974, pp. 153–158; Rahn characteristics is the difference in yellow-billed cuckoos in the east to be and Ar 1974, pp. 147–152). timing of migrations. This difference uniform in measurement throughout • Juvenile yellow-billed cuckoos in can only have developed as an evolved their range and yellow-billed cuckoos in the east have yellow bills (Oberholser trait in response to environmental the west to be uniform in measurements and Kincaid 1974, pp. 434–435), while factors over a long period of time, and throughout their range (Banks 1988, p. juvenile yellow-billed cuckoos in the thus is genetically linked (Cresswell et 475). Banks stated that the change from west have all-black bills (Franzreb and al. 2011, pp. 13–15; Pulido et al. 2001). smaller to larger yellow-billed cuckoos Laymon 1993, p. 26). As previously discussed, the difference

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in size of yellow-billed cuckoos between (more than one third of the species’ scientific discourse. As such, and in east and west, as well as differences in range would be vacant); and (2) it differs contrast to taxonomically defined size, weight, and shell thickness of eggs, markedly from other yellow-billed species and subspecies, there is no are also evolved genetically linked cuckoo populations in morphology (e.g., established name for the western traits. As discussed in the October 3, western yellow-billed cuckoos are distinct population segment of the 2013, proposed rule, researchers have larger) Therefore, we conclude that the yellow-billed cuckoo in the available developed methods using these western population segment of the literature; we will refer to this ‘‘species’’ phenotypic (outwardly expressed) traits yellow-billed cuckoo is significant per (DPS) as the western yellow-billed that correctly predicted separation for our DPS Policy. cuckoo. The range of the western nearly 90 percent of yellow-billed DPS Conclusion yellow-billed cuckoo in Canada cuckoos that were eastern, and up to includes the area of Vancouver Island approximately 86 percent that were Based on the best scientific and commercial data available on and along the Fraser River system western (Franzreb and Laymon 1993, upstream to Kamloops to the Rocky pp. 17–28). Thus, based on the distribution as well as behavioral and Mountains west of the Continental phenotypic traits, there is indirect morphological characteristics of the Divide. In the United States the DPS evidence that the discrete population species, we have determined that the includes the area west of the segment differs markedly from other western population segment of the populations of the species in its genetic yellow-billed cuckoo is both discrete Continental Divide, south through characteristics. and significant per our DPS policy. Montana, Wyoming, Colorado, and Therefore, we conclude that the western along the watershed divide between the Significance Conclusion distinct population segment of the upper and middle Rio Grande and Pecos The best available information yellow-billed cuckoo is a DPS, and thus Rivers in New Mexico and Texas, south indicates that the discrete yellow-billed a ‘‘species’’ under section 3(16) of the to Big Bend in southwestern Texas, and cuckoo population segment that nests Act. Our determination of biological and extending to the States of the west coast. west of the Continental Divide (as ecological significance is appropriate In Mexico, the DPS is the area west of defined above) and in northwestern because the population segment has a the eastern and southern border of the Mexico is important to the taxon to geographical distribution that is State of Chihuahua, west of the which it belongs because: (1) Loss of the biologically meaningful. Continental Divide in the State of population segment would leave a The term ‘‘distinct population Durango, and the southern border of the significant gap in the species’ range segment’’ is not commonly used in State of Sinaloa (Figure 2).

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Summary of Comments and World (Wenatchee, WA), The Olympian commenters providing additional Recommendations (Olympia, WA), The Spokesman Review information, but took no position on the In the proposed rule published on (Spokane, CA), Bellingham Herald listing of the species. Approximately October 3, 2013 (78 FR 61621), we (Bellingham, WA), Salt Lake Tribune 141 of these comment letters provide requested that all interested parties (Salt Lake City, UT), Helena additional information or comments. All submit written comments on the Independent Record (Helena, MT), The substantive information provided proposal by December 2, 2013. The Missoulian (Missoula, MT), Valley during comment periods has either been comment period was reopened on Courier (Alamosa, CO), Craig Daily incorporated directly into this final December 26, 2013, and remained open Press (Craig, CO), (The Daily Sentinel determination or is addressed below. until February 24, 2014 (78 FR 78321). (Grand Junction, CO), El Paso Times (El Peer Review The comment period was reopened Paso, TX), Albuquerque Journal again on April 10, 2014, and remained (Albuquerque, NM), The Arizona In accordance with our peer review open until April 25, 2014 (79 FR 19860). Republic (Phoenix, AZ), The Californian policy published on July 1, 1994 (59 FR We also contacted appropriate Federal (Bakersfield, CA), and Press-Enterprise 34270), we solicited expert opinion and State agencies, scientific experts (Riverside, CA). We did not receive any from five knowledgeable individuals and organizations, and other interested requests for a public hearing. with scientific expertise that included parties and invited them to comment on During the comment periods for the familiarity with the yellow-billed the proposal. Newspaper notices proposed rule, we received 34,459 cuckoo and its habitat, biological needs, inviting general public comment were comment letters directly addressing the and threats. We received responses from published in the Idaho State Journal proposed listing of the western DPS of all five of the peer reviewers. (Pocatello, ID), Post Register (Idaho the yellow-billed cuckoo as a threatened We reviewed all comments we Falls, ID), Idaho Mountain Express (Sun species. The vast majority of these received from the peer reviewers for Valley, ID), Idaho Statesman (Boise, ID), comment letters voiced their support or substantive issues and new information Coeur d’Alene Press (Coeur d’Alene, opposition to the action, but did not regarding the listing of the western DPS ID), Las Vegas Sun (Las Vegas, NV), Las provide significant supporting of the yellow-billed cuckoo. The peer Vegas Review-Journal (Las Vegas, NV), information on the proposed listing. A reviewers generally concurred with our Reno Gazette-Journal (Reno, NV), The total of 34,380 letters were in support of methods and conclusions, and provided Oregonian (Portland, OR), Yakama the listing, while 54 letters were in additional information, clarifications, Herald, (Yakima, WA), Wenatchee opposition to listing, with 25 and suggestions to improve the final

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rule. Peer reviewer comments are incorporate citations provided by the since the first play-back surveys were addressed in the following summary peer reviewer, as needed. conducted in California in the 1970s. and incorporated into the final rule as (3) Comment: Two reviewers Some changes in survey method include appropriate. indicated that recent research has changes in the distance between calling shown that vocalizations cannot be stations (100 vs. 200 meters), changes in Peer Reviewer Comments reliably used to determine the sex of the number of calls played at calling (1) Comment: One reviewer discussed cuckoos in the field. Two public stations (5 vs. 10 calls), number of the heritability of migration timing, commenters also raised this concern. surveys carried out during the breeding indicating that the difference in Our Response: We concur and have season (2 to 5 surveys), and the timing migration timing between eastern and revised the text to clarify information on of the surveys (1 June to 15 August vs. western cuckoos is reflective of genetic vocalizations for the western yellow- 15 June to 1 August). Despite these differences and added a supportive billed cuckoo. changes, general response rates have reference (Pulido et al. 2001). (4) Comment: One reviewer indicated remained constant. On average, an Our Response: In the proposed and that the habitat section could be individual western yellow-billed cuckoo this final rule, we outlined our strengthened by presenting habitat will respond to playback call 50 percent reasoning for determining that the models that have been developed. This of the time, and one member of a pair western populations of the yellow-billed reviewer suggested that the presentation will respond 75 percent of the time. cuckoo constitute a valid DPS (see of tamarisk as a habitat component With a second visit, the probability of could be improved by using information Distinct Vertebrate Population Segment an individual responding has risen to 75 from several references from research on Analysis, above). In our determination, percent, and the probability of one the Colorado River (see Johnson et al. we relied on behavioral and member of a pair responding has risen 2008a, Johnson et al. 2012, McNeil et al. morphological and other characteristics to 94 percent. With three visits, the 2012). Within-patch vegetation of the species to support separation and probability of an individual responding measurements show that sites occupied distinctness from yellow-billed cuckoos is 94 percent, and the probability of one by western yellow-billed cuckoos do not in the east. Although genetics most member of a pair responding is 99.6 include dense tamarisk patches. percent. likely play a role in behavioral and Our Response: Based on observations morphological aspects of a species, in of western yellow-billed cuckoos, we Obtaining accurate survey results are our determination we did not rely on have identified riparian trees including made more difficult because: (1) specific genetic information or willow (Salix sp.), Fremont Western yellow-billed cuckoos often separation to come to our conclusion. cottonwoods (Populus fremontii), alder have helper males at the nest; (2) they The views of the peer reviewer and the (Alnus sp.), walnut (Juglans sp.), are only loosely territorial; (3) nests of information they provided (Pulido et al. sycamore (Platanus sp.), boxelder (Acer adjacent pairs can be very close to each 2001, pp. 149–158) further support our sp.), ash (Fraxinus sp.), mesquite other; (4) female western yellow-billed conclusions reached in determining a (Prosopis sp.), and tamarisk (Tamarix cuckoos often lay a second and third valid DPS for the western yellow-billed sp.) as habitat that provides cover, clutch sometimes with different mates; cuckoo. We revised this final rule to shelter, foraging, and dispersing habitat and (5) it is likely that they move from include the information provided. for the western yellow-billed cuckoo. one river system to another between (2) Comment: One reviewer stated Tamarisk is considered a nonnative, clutches. These unusual behaviors can that a close examination of the DNA invasive species across the West. lead to either an over count or an under studies conducted on cuckoos to date Although the western yellow-billed count of individuals, pairs, or would infer a deeper genetic divergence cuckoo uses tamarisk as a component of territories. between western and eastern cuckoos its habitat, it is usually in areas where Many of the earlier population than presented in the proposed rule and the habitat has been degraded. We estimates were made of pairs of western that further analysis would likely appreciate the peer reviewer’s yellow-billed cuckoos. For the reasons support division of species into two information on habitat modeling and listed above, some recent researchers subspecies. The reviewer also provided will review this information in have decided that it is more accurate to a critique of the techniques used in the development of any final critical habitat use the term territories rather than pairs. studies to date, noting that markers used determination for the species. We have An assessment of the methodology used in all three genetics studies evolve too reviewed the information provided by to determine pairs in the older studies slowly to reveal genetic structure within the reviewer and have revised our and territories in the more recent the species, and that the choice of discussion of habitat selection and studies concludes that very similar outgroup for study comparison was tamarisk use and compatibility for the methodology is used and that the flawed in one study. western yellow-billed cuckoo in this numbers are comparable. Our Response: See response to final rule (see ‘‘Use of Tamarisk by In some cases, we were able to use the Comment 1 above for a discussion of Western Yellow-billed Cuckoos and the original survey data and simply how we used genetic information in our Spread of the Introduced Tamarisk Leaf compare the number of survey hours DPS determination. Although we agree Beetle into the Southwest,’’ below). and number of western yellow-billed that further studies and information on (5) Comment: One reviewer suggested cuckoos surveyed and compare them the genetics for the yellow-billed would that estimates of breeding populations from one year to the next and one time assist in further validating our of western yellow-billed cuckoos may period to another. This is a very reliable determination of separation between be overestimates and the numbers may and accurate method of comparison. In eastern and western yellow-billed be even lower than indicated in the other cases, such as that at the South cuckoo populations, we must rely on proposed rule. Fork Kern River Valley in California the best scientific or commercial data Our Response: We are aware of the from 1985 to 2001, when all nesting available to make our listing difficulties in obtaining accurate counts pairs were either documented by determinations. We appreciate the of western yellow-billed cuckoos. finding a nest or seeing positive nesting information provided and have made Survey methods for western yellow- behavior (e.g., western yellow-billed some revisions to the DPS analysis to billed cuckoos have evolved over time cuckoos carrying food to young) the

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number of pairs were compared over the information presented in the (12) Comment: One reviewer provides time. section. information on several additional We have taken all of these difficulties (8) Comment: One reviewer provided projects that he indicates are impacting and changes of survey methods and survey results indicating that western western yellow-billed cuckoo habitat. changes of data and behavior yellow-billed cuckoos have been The reviewer notes that the U.S. Army interpretation into account in our detected along the San Juan and Green Corps of Engineers (USACE) Sacramento assessment of survey results and rivers in Utah, although it is not yet River Bank Protection Project has been western yellow-billed cuckoo known whether breeding occurs in these channelizing and rip-rapping river population trends. We have used the areas. The reviewer notes that further banks for many decades and that the best available data and science in surveys are needed. project impedes the dynamic riverine determining population estimates and Our Response: We appreciate this processes that create western yellow- trends. Because we have been aware of additional information and have billed cuckoo habitat. The reviewer the changes in survey methods and have considered this in our listing adds that the California Department of factored that information into our determination. This information will Water Resources has proposed a new analysis, we are confident that our also be considered in our final critical reservoir project (the Sites Reservoir) for estimates of breeding populations are habitat designation. off-stream water storage, suggesting that accurate. (9) Comment: One reviewer the project would be a major water commented that a potential planned (6) Comment: One reviewer indicated diversion project that would further activity is the reallocation of water from that habitat use separates eastern and degrade stream power on the the San Juan River on Navajo Tribal western cuckoos; observations suggest Sacramento River, and contribute to an lands, which could negatively affect that in eastern New Mexico and Texas ecological cascade on the river (see water delivery on the Colorado River yellow-billed cuckoos from eastern Comment 10 above and the discussion and western yellow-billed cuckoo populations nest in monotypic stands of under Factor A below). The reviewer habitat on the Lower Colorado River. tamarisk, while western yellow-billed also noted two proposed projects that he Our Response: We appreciate this thinks would provide a potential cuckoos do not. additional information and have Our Response: We have considered conservation benefit to western yellow- considered this in our listing billed cuckoo habitat. Both projects this information in our determination of determination. This information will the DPS for the yellow-billed cuckoo. involve the creation of several miles- also be useful in recovery planning and long oxbow lakes on the Sacramento Although credible observations of implementation. species behavior are valuable, peer- River, at Woodson Bridge, and at a (10) Comment: One reviewer provided pumping facility across from Llano Seco reviewed published materials would information that describes the ecological further support these observations, and unit of Sacramento River NWR. cascade process that leads to loss of Our Response: We appreciate this additional research on this topic would western yellow-billed cuckoo habitat in additional information and have be valuable. The information provided riparian areas. The peer reviewer stated considered this in our listing will be considered further in the that the key to sustaining western determination. This information will be development of the final critical habitat yellow-billed cuckoo habitat is helpful in developing and implementing designation for the species and in maintaining an ongoing process of new the recovery plan for the species. recovery planning. land creation and flow patterns (13) Comment: One reviewer (7) Comment: Two reviewers conducive to colonization of willow and indicated that in Conservation Efforts suggested that the section on climate cottonwood. The peer reviewer also section under the Factor E discussion, a change could be condensed and that noted that it is problematic that a distinction should be made between uncertainties in forecasting National Wildlife Refuge (NWR) on ‘‘active’’ restoration and ‘‘process- precipitation could bog down Sacramento River only occurs on one based’’ restoration. conservation actions that would clearly side of the river, and the opposite bank Our Response: We have revised the benefit western yellow-billed cuckoos in is not allowed to erode. text in the section to clarify the the near future. Our Response: We appreciate this difference in types of restoration Our Response: The Service used the additional information and have activities. climate change information that was considered this in our listing (14) Comment: One reviewer available in the literature. Because the determination. The information will be measured 35 cuckoos from the Rio western DPS of the yellow-billed cuckoo helpful when developing a recovery Grande and 25 cuckoos from the Pecos covers such a large area, the effects of plan for the western yellow-billed River. He found that Rio Grande males climate change will be different in the cuckoo. and females were larger for all various regions. The Pacific Northwest (11) Comment: One reviewer adds an measurements than Pecos cuckoos, but may become cooler and wetter, the additional pervasive threat is the design Pecos cuckoos are larger than eastern or desert Southwest may become warmer of open channel flood control channels Trans Pecos cuckoos reported in and dryer. The exact effect of these with inappropriately smooth roughness Franzreb and Laymon’s (1993, pp. 17– changes on western yellow-billed coefficients. This over-scours the 28) subspecies paper. He applied the cuckoos is difficult to predict. However, floodplains and requires removal of Discriminant Function Analysis (DFA) based on our review of the literature, we woody riparian vegetation that equation (developed by Franzreb and have concluded that a warmer and dryer regenerates on floodplains. This leads to Laymon, 1993, pp. 17–28) to 35 cuckoos Southwest, an area that is already water- floodplains with no western yellow- from Rio Grande, of which 86 percent stressed, with a growing human billed cuckoo habitat. tested as western and 25 cuckoos from population, is likely to have an adverse Our Response: We have added this Pecos River of which 68 percent tested effect on riparian habitat. This will information to section ‘‘Encroachment as western. exacerbate the changes that have already of Levees and Flood Control and Bank Our Response: We thank the reviewer occurred in the region and should not Stabilization Structures into the River for this information. However, we are be ignored. We appreciate the expressed Channel and Floodplain’’ in the Factor concerned that the measurements may concerns; however, we have retained A discussion in this final rule. have been taken incorrectly for the

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following reasons. We first note that, consultation regarding the species in the controlled grazing activity can be with the exception of wing future. compatible within riparian zones and in measurements, accurate measurements (16) Comment: The USACE provided western yellow-billed cuckoo habitat are hard, if not impossible, to obtain references that deal with southwestern depending on the conservation from live birds under field conditions. willow flycatcher (Empidonax traillii measures implemented for the grazing We are concerned that in the given extimus) consultations and management activity. The amount of management sample, bill-depth measurements may at Lake Isabella, California. They stated depends on the sensitivity of the habitat have been measured incorrectly because that their conservation plan and at any given location and would most all individuals measured, regardless of associated conservation easements for likely need to be managed on a site-by- area of origin, had deeper bills than any southwestern willow flycatchers site basis. For example, a grazing regime of the cuckoos measured by Banks provide habitat protections for the used on Audubon California’s Kern (1988, pp. 473–477) or Franzreb and western yellow-billed cuckoo as well as River Preserve in the South Fork Kern Laymon (1993, pp. 17–28). It is likely least Bell’s vireos (Vireo bellii pusillus). River Valley limits grazing to outside that these measurements were taken on They are concerned that if the western the growing season (October to March). an incorrect location on the bill. We yellow-billed cuckoo is listed and This time restriction allows for note that several of the bill-length formal consultation for long-term regeneration of willows and measurements reported were also record operations of Isabella Reservoir are cottonwoods and precludes the tree lengths for cuckoos, regardless of origin triggered, the USACE may be required to browsing and high-lining that often and suspect that they too were likely ‘‘reoperate’’ the reservoir, which would accompanies heavy summer (growing measured incorrectly. The use of these increase risk of loss of human life and season) grazing. We concur that incorrect measurements in the DFA cause significant impacts to economics mesquite bosque habitat is very equations would be expected to yield downstream. This concern was also important to western yellow-billed incorrect ‘‘likely area of origin.’’ voiced by one public commenter. cuckoos, and this has been stated clearly Therefore, we have not used this Our Response: Although specific in the proposed and this final rule. information in our final listing project activities may require additional (18) Comment: The U.S. Department determination. review and potentially result in formal of Agriculture (USDA), Natural consultation for various Federal actions, Resources Conservation Service (NRCS) Federal Agency Comments it is reasonable to assume that the in Texas stated that they are interested conservation plan and associated During the development of the in helping landowners conserve and conservation easements for the proposed and this final listing rule, we manage critical habitat for the western southwestern willow flycatcher may coordinated with Federal agencies and yellow-billed cuckoo. provide habitat protections for the asked for their input on the information Our Response: We appreciate this western yellow-billed cuckoo. However, presented and any concerns they may additional information and have consultation with the Service will not have. We have not included specific likely result in operation decisions that considered this in our listing comments and responses to Department would cause a risk of loss of human life determination. NRCS’ cooperation and of the Interior (DOI) agencies in this rule or cause significant impacts to assistance will be very helpful during (Bureau of Land Management, Bureau of downstream economies. We have been the recovery phase for the species. Reclamation, and National Park coordinating with the USACE on their (19) Comment: The International Service). We have worked with the DOI activities and dam operation at Lake Boundary and Water Commission agencies during the development of this Isabella as it relates to all listed species provided information on riparian rule, and their comments and concerns and will continue to do so into the habitat restoration along the Rio Grande are included in the record materials for future. as well as results of recent western this final determination. We have (17) Comment: The U.S. Forest yellow-billed cuckoo surveys. reviewed any DOI comments and Service (USFS) provided several reports Our Response: We appreciate this information, and have made changes on western yellow-billed cuckoo additional information and have that we determined were appropriate to surveys conducted at Isabella Reservoir. considered this in our listing the final listing of the western yellow- The Southwest Region of the USFS does determination. Restoration of riparian billed cuckoo. A total of seven comment not think they have western yellow- habitat will be an important phase in letters were received from five Federal billed cuckoos on the Carson or Cibola the recovery of the western yellow- agencies from outside the DOI, and they National Forests. They also had several billed cuckoo. This information will are outlined below. questions about wording in the also be helpful in the development and (15) Comment: The U.S. Air Force proposed rule regarding grazing and implementation of a recovery plan for stated that training flights from Luke Air listed several references regarding the the western yellow-billed cuckoo. Force Base (AFB) may pass over western effects of well-managed grazing, which (20) Comment: The USDA NRCS in yellow-billed cuckoo habitat, but they they say has less adverse impact on Texas expressed concern regarding are unlikely to disturb the western western yellow-billed cuckoos and their economic impacts to local landowners yellow-billed cuckoos because the habitat than traditional, poorly managed and municipalities. This concern was airplanes fly over 500 ft. above ground grazing. Lastly, they stated that echoed by several public commenters. level, while western yellow-billed mesquite bosque habitat was very Our Response: According to section cuckoo fly, forage, and nest within the important to western yellow-billed 4(b)(1)A) of the Act, we are to base our canopy of the trees. Also, the duration cuckoos and that the habitat was more listing determinations solely on the of the sound from the jet airplanes is important than the proposed rule basis of the best scientific and only for a few seconds and the flights indicated. commercial data available as they relate are infrequent. Our Response: We appreciate the to the five factors listed in section Our Response: We appreciate additional information provided by the 4(a)(1) of the Act. The consideration of receiving the information on Air Force USFS and have considered it or economics is only related to the training flights at Luke AFB. We will incorporated changes to language into designation of critical habitat under consider this information during any our final listing determination. Well- section 4(b)(2) of the Act.

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Comments From States stated that they have developed a the historical data to identify any Section 4(i) of the Act states, ‘‘the conservation strategy on its trust lands relevant existing trends that might allow Secretary shall submit to the State for conservation of salmonid freshwater for reliable prediction of the future agency a written justification for his stream habitat and other riparian conservation status of the species (in the failure to adopt regulations consistent obligate species habitat (DNR Trust form of extrapolating the trends). We with the agency’s comments or Lands Habitat Conservation Plan). DNR also considered whether we could petition.’’ Comments received from the stated that they would expect that reliably predict any future events that States regarding the proposal to list as implementation of the plan would assist might affect the status of the species, in benefiting the western yellow-billed recognizing that our ability to make a ‘‘threatened species’’ for the western cuckoo’s habitat and any future recovery reliable predictions into the future is DPS of the yellow-billed cuckoo are efforts for the species. DNR also stated limited by the variable quantity and addressed below. We received 17 that they would continue to participate quality of available data. Available comment letters from 17 State agencies in the development of any future critical population information for western in 11 States. Of the 17 letters submitted, habitat designation. yellow-billed cuckoo is limited for 9 were from State wildlife agencies. We Our Response: We appreciate this determining trends because no long- did not receive comments from the State additional information and have term rangewide status survey has been of Oregon. considered this in our listing completed and the threats facing the Washington State determination. This information will species are variable in intensity and also be considered in our final critical (21) Comment: The Washington State scope across the species’ range and do habitat designation. Department of Fish and Wildlife not reliably provide a sound basis for supports the DPS determination and Idaho specific timeframe predictions. The available data do not allow us to listing of the western yellow-billed (23) Comment: The Idaho Office of determine a specific timeframe for the cuckoo as threatened. This is based on Species Conservation and the Idaho foreseeable future for the western their observations that reports of Department of Fish and Game stated yellow-billed cuckoo; therefore, we rely individual occurrences for the State that the Service fails to define on a qualitative assessment of the have been very rare for the past several foreseeable future in the proposed rule. foreseeable future, in terms of that decades and that the species is not This comment was echoed by several period of time over which we can confirmed to be breeding in the State. other commenters. reasonably predict the future population This is despite having some sizable Our Response: The Act does not trends and threats to the species, and areas of riparian habitat still remaining specifically define the term ‘‘foreseeable the likely consequences of those threats along the Lower Columbia River and future,’’ and does not require the and trends for the status of the species. additional habitat improvements, Service to quantify the time period of We have discussed the timeframe for acquisition, and restoration efforts foreseeable future in making listing when we have determined the threats elsewhere in the State. The Washington determinations. The Solicitor for the are acting on the species under each State Department of Fish and Wildlife Department of the Interior conducted a factor in the Summary of Factors provided suggestions for clarification of review of the Congressional intent Affecting the Species and in our habitat use by the western yellow-billed behind the term ‘‘foreseeable future’’ in Determination sections below. cuckoo in moist riparian habitat areas of the Act, and concluded that Congress western Oregon, western Washington, intended the term ‘‘foreseeable future’’ Montana and southwestern British Columbia. to describe the extent to which the (24) Comment: Montana Fish, They also provided information on Secretary can reasonably rely on Wildlife, and Parks indicated that the several records of wider habitat use in predictions about the future in making portion of the State that is shown as the Northwest and suggested that there determinations about the future being within the DPS has historically is historical evidence that the species conservation status of the species. The not been considered within the range of may have used conifer woodlands and Secretary’s ability to make reliable the species. The agency indicated that open brushy hillsides in Washington as predictions may vary according to the there are only 8 records for western secondary nesting habitat (Bent 1940, threat at issue; consequently, the Montana, and only 3 of those were pp. 54–70; Jewett et al. 1953, pp. 342– Solicitor concludes that this timeframe found in the past 30 years. They stated 343). of ‘‘the foreseeable future is not that the western quarter of the State, Our Response: We appreciate this necessarily reducible to a particular west of the Continental Divide, should additional information and have number of years. Rather, it relates to the be excluded from the DPS and the considered this in our final listing predictability of the impact or outcome species not listed in Montana. This determination. This habitat information for the specific species in question.’’ In comment was also echoed by has been discussed in detail in our addition, the opinion notes that commenters in Utah, Colorado, and proposed critical habitat designation. ‘‘definitive quantification is rarely Wyoming who wanted their States See the proposed critical habitat rule for possible . . . and not required for a removed from the DPS. the western yellow-billed cuckoo ‘foreseeable future’ analysis’’ Our Response: We are aware of the published in the Federal Register on (Department of the Interior limited number of sightings for the August 15, 2014 (79 FR 48547). Also see Memorandum M–37021, January 16, species in western Montana and other the Summary of Changes from 2009; available at: http://www.doi.gov/ areas within the DPS. However, we Proposed Rule section of this final rule solicitor/opinions/M-37021.pdf). consider yellow-billed cuckoos that are and the Habitat Use and Needs section In considering the foreseeable future found in the portion of Montana west of from the proposed listing rule for as it relates to the status of the western the Continental Divide are western additional discussion on habitat use in yellow-billed cuckoo, we considered the yellow-billed cuckoos based on Washington and Oregon (78 FR 61633– factors acting on the species and looked dispersal and migratory patterns, the 61634; October 3, 2013). to see if reliable predictions about the large gap between this region and (22) Comment: The Washington State status of the species in response to those southeastern Montana where eastern Department of Natural Resources (DNR) factors could be drawn. We considered yellow-billed cuckoos sporadically

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occur, and criteria used to map the DPS additional information on tamarisk native riparian vegetation is possible, boundary. We based our boundary for removal and the conservation of the removal of tamarisk would be the DPS on watershed boundaries along western yellow-billed cuckoo). considered a net benefit, as native the upper elevation areas along the riparian vegetation has a greater habitat California Rocky Mountains and on species value for the western yellow-billed occurrence records. It would be (26) Comment: The California cuckoo. If western yellow-billed inconsistent and arbitrary to move the Department of Fish and Wildlife cuckoos are documented to use an area boundary or not include the western supports the DPS determination and slated for tamarisk removal, yellow-billed cuckoos in western listing of the western yellow-billed consultation with the Service may be Montana from the DPS regardless of cuckoo as the species is already listed necessary in order to jointly develop how seldom they are found in the area. as endangered under the California appropriate measures to avoid or Endangered Species Act (CESA) and the minimize the potential for adverse Wyoming populations of the species in the State effects to the western yellow-billed (25) Comment: The Wyoming Game continue to decline. The California cuckoo. However, the process of listing and Fish Department (WGFD) provided Department of Fish and Wildlife will a species as threatened under the Act is information on additional surveys for continue to provide support in habitat not designed to curtail projects that the Green River and on the State’s management that will encourage have the potential to benefit that classification of the species as a Tier III recovery for the species in California. species, and it is unlikely that beneficial Species of Greatest Conservation Need Our Response: We appreciate the tamarisk removal and riparian with unknown population status and review and support of the California restoration projects would be negatively trends due to an extremely limited Department of Fish and Wildlife. This impacted from listing the western number of detections during targeted information will help with the yellow-billed cuckoo. At this time, we survey work (WGFD 2010, pp. IV-i-8). development and implementation of the are not developing a rule under section The WGFD stated it does not recovery plan for the western yellow- 4(d) of the Act for this species. differentiate between eastern and billed cuckoo. western yellow-billed cuckoos but that Utah Nevada habitat for the species continues to (29) Comment: The Director for the decline primarily as a result of (27) Comment: Nevada State Utah Public Lands Policy Coordination nonnative plant (tamarisk) invasion. Department of Wildlife concurred with Office stated that: (a) Utah has made The WGFD believes that the estimate in the Service’s concerns regarding great strides in conserving the yellow- the proposed rule of five or fewer pairs declines of the western yellow-billed billed cuckoo and its habitat and that is an overestimate for the State, that it cuckoo and summarized the status of the Service did not characterize the is highly unlikely that western yellow- the species in the State. The Nevada conservation benefits for the yellow- billed cuckoos breed in the State on a State Department of Wildlife also billed cuckoo as a State-sensitive consistent basis, and they doubt that the provided clarifications and updated species adequately in the proposed rule; small numbers in Wyoming add to information on occurrence records and (b) the DPS boundary is arbitrary and population viability of the subspecies. habitat for the State. The western includes unoccupied areas or migratory The WGFD recommended not yellow-billed cuckoo is a species of habitat; and (c) the Service did not use designating any critical habitat or land conservation priority in Nevada, and the or consider the best available scientific use restrictions for the species in the Nevada State Department of Wildlife is information provided by the Utah State as most of the potential habitat for dedicated to conserving the species and Division of Wildlife Resources (e.g., the species is above 7,000 ft (2,134 improving its habitat whether it is listed Beason 2009, additional Statewide meters (m)). The State also or not. surveys, GIS habitat models). The State recommended that ongoing and planned Our Response: We appreciate this requested that the Service not list the tamarisk removal should not be additional information and have species as endangered or threatened impeded as a result of the Service’s final considered this in our listing under the Act, as it believes that the determination. determination. This information will State is in the best position to manage Our Response: As stated in the also be used in the development of our and conserve the species and its habitat. proposed rule and this final rule, we final critical habitat designation and Our Response: We commend the State agree that the number of western implementation of a recovery plan for of Utah on the efforts they have made yellow-billed cuckoos nesting in the western yellow-billed cuckoo. in conserving the western yellow-billed Wyoming is small. It is also possible (28) Comment: Nevada State cuckoo and its habitat. However, we that western yellow-billed cuckoos do Department of Wildlife, Wyoming Game were not supplied with any information not nest in the State every year. and Fish Department, Utah Office of by the State on specific conservation However, the species most likely uses Governor, and Colorado Department of efforts for the western yellow-billed the available habitat as movement Agriculture listed tamarisk invasion as a cuckoo, so characterization of the corridors or stop-over areas during its major threat for western yellow-billed conservation benefits for the species is migration to areas farther north or as cuckoos and their habitat. There is some not possible. foraging areas during prey outbreaks. concern that listing the western yellow- We disagree that the DPS line is We will consider any information on billed cuckoo will curtail tamarisk arbitrary. The DPS line used to separate critical habitat during the development removal projects and riparian the western yellow-billed cuckoo from of the final critical habitat designation. restoration. Several commenters would yellow-billed cuckoos in the east in the As a result of listing the species, we like us to develop a rule under section vicinity of Utah was the watershed would expect agencies and 4(d) of the Act for riparian habitat boundaries along the Continental organizations conducting tamarisk restoration. Divide. This boundary does not imply removal projects to do so in a manner Our Response: The Service agrees that that all areas within the DPS contain compatible with conservation of the tamarisk is a major threat to the western suitable habitat. In fact, most areas western yellow-billed cuckoo (see yellow-billed cuckoo’s habitat. We within the DPS do not contain suitable response to Comment 28 below for expect that in areas where restoration of habitat for the species because the

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species is restricted to riparian habitat Arizona Colorado River. The Arizona Game and and most of western United States is (32) Comment: The Arizona Game and Fish Department stated that 4,000 acres upland habitat covered by forest, desert, Fish Department supported the (ac) (1,619 hectares (ha)) of habitat is shrubland, or agriculture. Riparian Service’s overall determination of the scheduled for restoration, and in habitat, by definition, is limited to the western yellow-billed cuckoo as a DPS, locations where restoration has banks of rivers and streams, and but stated that using morphological occurred, western yellow-billed cuckoos comprises a very small percentage of the information in the DPS significance are using the created habitat within 2 arid West. The DPS simply shows the section weakened the argument. years of planting. They asked us to add outer limits that one can expect to find Our Response: We appreciate this references that show that western western yellow-billed cuckoos during additional information and have yellow-billed cuckoos have declined as the breeding season and during considered this in our DPS analysis and a result of riparian habitat loss and migration to breeding areas. listing determination. Morphological degradation (they cite Noss et al. 1995). We received GIS data from the State information is just one of the reasons we They also stated that there was a need to quantify the benefits of riparian of Utah and excel spreadsheets with have determined that the western habitat restoration to western yellow- location data apparently derived from yellow-billed cuckoo is a valid DPS surveys and incidental observation billed cuckoos. under our policy. In order to be more Our Response: Most locations in within the State. We did not receive the transparent in describing our rationale Arizona that have western yellow-billed information mentioned in the comment for our DPS determination, we included cuckoo populations have not been letter (e.g., Beason 2009, additional the morphological information as surveyed regularly enough to provide statewide surveys, and GIS habitat further evidence of the DPS. We population trend information. The only models) from the State. During the conclude that including morphological two locations with semi-regular development of this proposed rule and information in the DPS Significance monitoring (the Bill Williams River and in response to the State’s comment, we section helps to provide a complete the San Pedro River) both show independently obtained a copy of the picture of the differences between downward trends in western yellow- information cited (Beason 2009, pp. 1– eastern and western yellow-billed billed cuckoo populations. The western 19). The results of that study, which cuckoos. yellow-billed cuckoo population on the surveyed areas in and around Dinosaur (33) Comment: The Arizona Game and Colorado River on the Arizona- National Park in Utah and Colorado, did Fish Department stated that they did not California border appears to be not confirm any western yellow-billed support listing the western yellow- increasing with the riparian restoration cuckoo observations. We contacted the billed cuckoo as it would be activities at that location. More years of researcher and they confirmed the counterproductive to current survey data are needed to determine information. conservation efforts. whether or not that is a long-term trend. Our Response: Some restoration Colorado While the results of the riparian projects, especially where existing poor- restoration work on the Lower Colorado (30) Comment: The Colorado quality, tamarisk-dominated habitat that River are promising, based on the Department of Agriculture asked to is occupied by western yellow-billed scientific information available we participate in the recovery of the species cuckoo is being removed and higher conclude that it is too soon to tell what and is actively removing tamarisk and quality, willow-cottonwood or mesquite effect this planned restoration will have Russian olive and restoring native habitat is being planted, may require on western yellow-billed cuckoo riparian vegetation. consultation with the Service in order to populations. As population goals for Our Response: We appreciate this jointly develop appropriate measures to recovery of the western yellow-billed additional information and have avoid or minimize the potential for cuckoo have not yet been established, it considered this in our listing adverse effects to the western yellow- is not known what the overall effect of determination. This cooperation in billed cuckoo. However, the process of an addition of the 40 or so pairs of recovering the species will be important listing a species as threatened under the western yellow-billed cuckoos on the in the development and implementation Act is not designed to curtail projects Lower Colorado River will have on the of a recovery plan for the species. that have the potential to benefit that overall status of the yellow-billed species, and it is unlikely that beneficial cuckoo in the West. In addition, so far (31) Comment: The Water Resources tamarisk removal and riparian it appears that western yellow-billed Division of the Colorado Department of restoration projects would be negatively cuckoos nesting on restoration sites tend Natural Resources stated that riparian impacted from listing the western to have lower nesting success than habitat is not threatened in Colorado yellow-billed cuckoo. It is more likely western yellow-billed cuckoos nesting and the western yellow-billed cuckoo that listing the western yellow-billed in areas still containing healthy native should not be listed because adequate cuckoo will complement the recovery riparian forests (McNeil et al. 2012, p. conservation efforts are underway. efforts and potentially provide 53). Our Response: Riparian systems in additional sources of funding through We have added citations in this final Colorado have been highly impacted by section 6 of the Act. rule that show that western yellow- the nonnative, invasive tamarisk and (34) Comment: The Arizona Game and billed cuckoos have declined as a result Russian olive. Many of the other threats Fish Department stated that they agreed of riparian habitat loss and degradation detailed in the proposed and this final that western yellow-billed cuckoos have (see section in Factor A discussion). We rule also apply to riparian habitats in declined in Arizona over the last 100 have concluded that this is a well- that State. In addition, the State of years due to habitat loss. The Arizona documented pattern in California and Colorado contains only a small portion Game and Fish Department went on to Arizona. of both the range and population of the state that the western yellow-billed To date it is difficult to quantify the western DPS of the yellow-billed cuckoo population and habitat loss have benefit of riparian habitat restoration to cuckoo. Our obligation is to review and stabilized over the past 30 years and western yellow-billed cuckoo assess the population status as a whole populations will increase as a result of populations. Most restoration efforts are and not on a regional or Statewide basis. riparian restoration on the Lower carried out on a small scale in

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comparison to the home-range size of absolute separation is not required for a (37) Comment: New Mexico Game the western yellow-billed cuckoo. In the population segment of a species to be and Fish would like us to develop a rule Kern River Valley where riparian considered a DPS (61 FR 4723–4725; under section 4(d) of the Act to allow restoration has been ongoing for the past February 7, 1996). The location and for economic and agricultural growth in 30 years, the western yellow-billed boundaries of a western DPS for the conjunction with conservation efforts, cuckoo population has stabilized but yellow-billed cuckoo has been under especially while developing the State’s has not increased. Along the consideration since the Service first comprehensive conservation program. Sacramento River, where several received a petition to list the species in Our Response: Section 4(d) of the Act thousands of acres of riparian 1986. As detailed in the proposed rule allows the Secretary the discretion to restoration has occurred over the past 30 and this final rule, yellow-billed issue such regulations as [s]he deems years, the western yellow-billed cuckoo cuckoos on the Rio Grande above Big necessary and advisable to provide for population has continued to decline. Bend are more similar to yellow-billed the conservation of a species. The The one location where restoration work cuckoos in the West than they are to Service’s standard policy (under 50 CFR is appearing to have a positive effect on yellow-billed cuckoos in the East. 17.31(a)) for issuing prohibitions for western yellow-billed cuckoo Yellow-billed cuckoos on the Pecos threatened species is to apply all the populations is along the Lower Colorado River and in eastern New Mexico are prohibitions of an endangered species to River, but this work is very recent and more similar to yellow-billed cuckoos in a threatened species unless otherwise the long-term effect on western yellow- the East than they are to yellow-billed revoked by issuance of more specific billed cuckoo populations there is still cuckoos in the West. Peer reviewer Dr. prohibitions. In the case of the western unknown. The largest positive effects Janice Hughes, the only avian yellow-billed cuckoo, we are in the for western yellow-billed cuckoos have taxonomist who has conducted research process of reviewing whether the occurred in the reservoir draw-down on yellow-billed cuckoos in this region, ‘‘standard’’ prohibitions apply or zones (e.g., Isabella Reservoir and believes that the highlands between the whether more specific prohibitions are Elephant Butte Reservoir), when Rio Grande and the Pecos River are the appropriate. If we determine that more riparian habitat has regenerated during dividing line between eastern and specific prohibitions apply and that droughts. These benefits are ephemeral, western yellow-billed cuckoos. they are necessary and advisable to as the habitat will be inundated and lost As discussed above in Comment 14, provide for the conservation of the when wet periods return. one peer reviewer measured yellow- western yellow-billed cuckoo, we will issue a proposed rule under section 4(d) New Mexico billed cuckoos on the Rio Grande and Pecos River and found the Rio Grande of the Act for public comment. However (35) Comment: New Mexico Game yellow-billed cuckoos to be larger than at this time, we do not have and the and Fish requested a delay in listing so commenter did not provide enough those on the Pecos River. The that more research can be conducted in information on whether a section 4(d) differences were not statistically New Mexico to better define the DPS rule for agricultural activities is significant, but the sample sizes were line. They state that data from e-bird appropriate. We would be available for small, so a significant difference would [Cornell Lab of Ornithology] and New future discussion on potentially not be expected. Also the measurements Mexico Ornithological Society (2007) do developing measures to maximize the were not taken in a similar way as not support difference in migration conservation value of agricultural measurements taken by Banks (1988, timing between eastern and western practices and develop some type of pp. 473–477) and Franzreb and Laymon New Mexico, and cite Sechrist and Best conservation mechanism with the (1993, pp. 17–28) so they cannot be (2012) to say that cuckoos from Pecos commenter in the future; however, due and Rio Grande had the same migration compared to measurements from those to time constraints for developing a final timing and direction. Twenty additional studies. At this time, a definitive study rule we cannot currently develop and commenters questioned the DPS’ status, has not been completed on morphology, implement such measures. indicating that the DPS was neither genetics, or behavior (including (38) Comment: New Mexico Game discrete nor significant, without migration timing) comparing yellow- and Fish stated that there was a large providing additional information to billed cuckoos on the Rio Grande and discrepancy between population support their comments. Pecos River. Until that is done, the best estimates of 100–155 pairs for western Our Response: In making listing available science on the subject is in New Mexico listed in the proposed rule determinations under the Act, we are to Franzreb and Laymon (1993, pp. 17–28) and 7,000 individuals in the State as rely solely on the best scientific and and in the opinion of Dr. Janice Hughes, reported by the Partners in Flight commercial data currently available. which divides eastern and western program (PIF 2014). Our DPS policy outlines the criteria for yellow-billed cuckoos along the Our Response: The Partners in Flight determination of whether a segment of highlands separating the Rio Grande Web site for New Mexico (New Mexico a vertebrate species population qualifies and the Pecos Rivers. Partners in Flight 2014, entire) reports as a DPS. In reviewing the most current (36) Comment: New Mexico Game that the western yellow-billed cuckoo information available, we have and Fish and several other commenters population in New Mexico is much less determined that the western DPS of the suggest that western yellow-billed than 1 percent of the total species yellow-billed cuckoo is valid and meets cuckoos have been found at elevations population of 9.2 million, or less than the criteria outlined in our policy. As higher than reported in the proposed 92,000 yellow-billed cuckoos. This was we stated above in the Distinct rule. then converted to 0.1 percent of the Vertebrate Population Segment Our Response: We appreciate this global population, which should have Analysis section, we understand that additional information and have been 9,200 yellow-billed cuckoos, but the area in southern New Mexico and considered this in our listing was transcribed or rounded to 7,000 western Texas is an area where there determination. Most of these higher yellow-billed cuckoos or 3,500 pairs of may be overlap between both eastern elevation sightings in the Rocky yellow-billed cuckoos. This is a and western populations of the yellow- Mountains are likely of migrant western questionable method to determine the billed cuckoo. Our DPS policy allows yellow-billed cuckoos, though a few yellow-billed cuckoo population for a for some ‘‘mixing’’ of populations, and may refer to nesting pairs. State and should not be accepted as

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valid. This is much higher than Howe’s commenters expressed concern about activities such as habitat loss and (1986, pp. 1–16) estimate of 1,000 pairs the impact of listing the western yellow- fragmentation, air and water pollution, of yellow-billed cuckoos Statewide in billed cuckoo on water delivery. and the establishment of invasive New Mexico and 315 pairs for the Our Response: The disruption and species.’’ They also state that riparian western half of the State. Howe’s changes to ‘‘natural’’ river and stream habitat is one of the key habitats that estimates were made based on an processes, which help the development may have the highest risk of being estimate of available habitat and an and regeneration of riparian vegetation, altered by synergistic effects of factors understanding that western yellow- have been identified as a threat to the that influence habitats (New Mexico billed cuckoo territories were much species. The majority of streams and Department of Game and Fish. 2006, pp. smaller than they actually are, leading water delivery facilities within the range 74–79). to an overestimate for New Mexico. It is of the western yellow-billed cuckoo are We agree that climate change likely that fewer than 1,000 pairs of at least partly managed by Federal projections and prediction can be western yellow-billed cuckoos existed entities or proposed activities that difficult due to the availability of in New Mexico in 1986. The population would have a Federal nexus. As a result, information and variability of climate for western yellow-billed cuckoos these Federal agencies have an and habitat conditions over time. estimated for the State by Hughes (1999, obligation under section 7 the Act to However, in a study looking at the p. 19) was 100 to 200 pairs. The conserve endangered or threatened recent effects of climate change on Service’s estimate of 100 to 155 pairs is species and their habitat. Section 4(d) of temperature and precipitation over the based on the best available science of the Act states that the Secretary shall past 36+ years (1970–2006), Enquist et surveys conducted over the past 10–15 issue such regulations as [s]he deems al. (2008, pp. 1–32) found that in New years. necessary and advisable to provide for Mexico, observed climate-linked effects (39) Comment: The New Mexico the conservation of any threatened include declines in snowpack, earlier Department of Agriculture asked that species. New projects on Federal land or peak stream flows, forest mortality, and the Service address management of the funding by the Federal government will population declines in some sensitive western yellow-billed cuckoo as a be subject to section 7 consultations, as species. To avoid issues of uncertainty watershed health issue and not list the will reauthorization of Federal projects. associated with future climate change species. Because of the interrelatedness between predictions, the study used a Our Response: Listing of the western water management, the health of retrospective approach that analyzed yellow-billed cuckoo under the Act is riparian habitat, and the dependence of changes over time. Their study found based on the species’ population status riparian habitat by the western yellow- that: (1) 93 Percent of New Mexico’s and trends, and the threats to the billed cuckoo, we are not currently watersheds have become relatively drier species. Recovery of a species will be considering a rule under section 4(d) of over the 36+ year period; and (2) based on criteria developed by the the Act for this species to limit the snowpack has declined in 98 percent of Recovery Team once it becomes prohibitions of the Act for ongoing and New Mexico’s major mountain ranges established. Solving the threats to the future water management activities. and the timing of peak streamflow from western yellow-billed cuckoo is an (42) Comment: The New Mexico snowmelt in the State is an average of important part of the recovery process, Interstate Stream Commission stated one week earlier than in the 1950s. In and watershed health will be very that because humans do not have addition, the study found that the important when developing recovery control over caterpillar population, lack watersheds with the highest numbers of criteria and implementing recovery of caterpillars should not be listed as a sensitive species tend be those showing actions. threat. the greatest increase in moisture stress (40) Comment: New Mexico Interstate Our Response: Caterpillar and other or drying and that these watersheds Stream Commission commented that insect populations can be affected by have already experienced climate because western yellow-billed cuckoos health of the riparian habitat, tree and change-linked ecological effects. We are listed by New Mexico Fish and shrub species in the riparian zone, and have determined that the long-term Game as a ‘‘Species of Greatest pesticide use (e.g., pesticide drift into effects of climate change are and will Conservation Need’’ the Service should the riparian zone or applying pesticides continue to be a factor in sensitive not state that it has no protective status directly on the riparian zone). All of species or habitat conservation in New Mexico. these factors are influenced by human regardless of any short-term trends. Our Response: Although the activities at some level. Lack of an (44) Comment: The New Mexico identification of the western yellow- adequate food supply is a major threat Interstate Stream Commission billed cuckoo by the State of New for the western yellow-billed cuckoo. commented that western yellow-billed Mexico as a ‘‘Species of Greatest (43) Comment: The New Mexico cuckoos may rely on tamarisk, like Conservation Need’’ is encouraging, this Interstate Stream Commission stated southwestern willow flycatchers do, but designation is for planning purposes that climate change effects have so far even if true, tamarisk beetles should not and provides no regulatory protective not been as great as they are predicted be listed as a threat to western yellow- status for the species in New Mexico. to be in the future. billed cuckoos. Any actions or conservation measures Our Response: We appreciate the New Our Response: Western yellow-billed implemented for the cuckoo as a result Mexico Interstate Stream Commission’s cuckoos do not rely on tamarisk in the of its State status would be comments on climate change and have same way that southwestern willow recommendations and voluntary, and considered them in our listing flycatchers do. Western yellow-billed would not ensure that actions or determination. The New Mexico cuckoos may on rare occasions nest in measures would be implemented. Department of Game and Fish in their tamarisk, but they forage almost entirely (41) Comment: New Mexico Interstate Comprehensive Wildlife Conservation in native riparian habitat. Western Stream Commission states that if the Strategy for New Mexico (2006) stated yellow-billed cuckoos are primarily western yellow-billed cuckoo is listed, that ‘‘[t]he effects of climate change on dependent on large caterpillars, which we should develop a rule under section ecosystems and species are likely to be depend on cottonwoods and willows 4(d) of the Act for ongoing and future exacerbated in areas that have already and are not found on tamarisk. On the water management in the State. Other been substantially affected by human other hand, southwestern willow

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flycatchers feed on small flying insects a threatened species. The western species, we have determined that the and both nest and forage in tamarisk as yellow-billed cuckoo has been a western yellow-billed cuckoo meets the long as water or super-saturated soil is candidate for listing since 2001. definition of a threatened species rather in the vicinity of the nest and flying Although we were litigated to develop than an endangered species under the insects are available. In areas where the a timeframe for moving forward on the Act. See the Determination section hydrology is still intact and will support review of candidate species, the Act below for additional discussion of our native riparian habitat, the tamarisk requires us to promptly make our rationale for a ‘‘threatened’’ beetle could assist in the restoration of evaluations for species considered determination. the riparian zone. In areas that can no candidates. Any settlements reached as (48) Comment: One commenter stated longer support willows, cottonwoods, a result of litigation took into that the entire species (both in the and mesquite, the beetle could suppress consideration what was best for eastern and western United States) the tamarisk to the point that western conservation and protection of should be listed as a threatened species yellow-billed cuckoos will no longer use candidate or sensitive species and were under the Act. the habitat. In this latter case, the not dictated by litigants. Our Response: Our analysis in the tamarisk beetle could be considered a (46) Comment: The Texas Comptroller rule is limited to the petitioned entity threat, as spontaneous regeneration of of Public Accounts stated that they were (western United States), and we have native vegetation is difficult due to the concerned that listing of the western not evaluated the status of the eastern degraded nature of the habitat and yellow-billed cuckoo would have population of the yellow-billed cuckoo. disrupted hydrologic conditions. potential economic impacts on Should new information become available about the status, trends, or Texas landowners, businesses, and communities within the boundary of the threats facing the eastern population of (45) Comment: The Deputy DPS in Texas. The Comptroller also the yellow-billed cuckoo, we would Commissioner for the Texas General stated that additional information is evaluate that information at that time, as Land Office stated that listing the needed on the status of the species and budget and staffing allow. western yellow-billed cuckoo would that the benefits of ongoing conservation Comments on the Distinct Population lead to increased economic costs and efforts for the southwestern willow Segment delay in the development of oil, gas, flycatcher are adequate to conserve the (49) Comment: One commenter stated wind, and solar projects for the State. western yellow-billed cuckoo. that the western DPS of the yellow- Royalties collected by the State from Our Response: See our response to billed cuckoo also meets significance such activities would be reduced, and Comment 45 above for economic because of persistence of population on this would indirectly affect funds considerations in the listing process and unusual or unique ecological setting available for Texas public schools. The our view on the information used to (i.e., streamside riparian areas in arid Deputy Commissioner also stated that determine the status of the species. In West). the Service’s analysis of the information regard to conservation measures for the Our Response: We appreciate this is not sufficient to support listing and southwestern willow flycatcher being additional information and have that the Service is only moving forward adequate to conserve the western considered this in our listing at this time with listing due to its yellow-billed cuckoo, we disagree. determination. Yellow-billed cuckoos in settlement with outside litigants and not Although the range of the southwestern both the East and West nest in riparian because listing is warranted under the willow flycatcher and the western Act. habitat. The species in the eastern yellow-billed cuckoo overlap to some Our Response: Under section 4(a)(1) United States has a wider range of degree and they are found in similar of the Act, we are to determine if a habitat use, including nesting in upland habitats, that is not always the case and species is endangered or threatened broadleaf woodlands that are not the two species have very different based on one of five listing factors. available to the species in the West. We habitat and ecological requirements. Economics or loss of revenue is not one do not consider riparian habitat as of the factors used in determining if a Public Comments unusual or unique habitat under our species should be listed. Although we DPS policy. understand that listing a species as Comments on ‘‘Endangered’’ vs. (50) Comment: Several commenters either endangered or threatened causes ‘‘Threatened’’ Status stated that there had been too many some regulatory oversight and the (47) Comment: More than 12,000 studies on the yellow-billed cuckoo and potential need for consultation, we are commenters stated that the western other commenters stated that there had obligated to make such determinations yellow-billed cuckoo should be listed as been too few studies. Genetics and solely on the threats facing the species ‘‘endangered’’ rather than the proposed taxonomic uniqueness was a suggested or its habitat. Listing a species does not ‘‘threatened’’ status. area of study by one commenter. mean projects cannot proceed, it only Our Response: The Act defines an Our Response: Although there has means they must be implemented in a endangered species as any species that been much focus on research on the manner that still conserves the species is currently ‘‘in danger of extinction yellow-billed cuckoo, most of these and its habitat. In addition, because the throughout all or a significant portion of efforts have been on survey and species occurs in riparian habitat along its range’’ and a threatened species as monitoring. Additional research activity streams, it is most likely that projects any species ‘‘that is likely to become is a common response once a species is involving the development of oil, gas, endangered throughout all or a identified for listing under the Act. wind, and solar projects would not significant portion of its range within However, other information, such as result in significant direct impacts on the foreseeable future.’’ Based on the migratory routes, timing, and wintering the species, as these projects typically available information on the range and ground use, has been scarce, and we do not occur in riparian corridors. distribution of the species, the agree that there are many areas of the We believe we have used the best immediacy and severity of threats facing life history, ecology, genetics, and scientific and commercial information the species, the persistence of the taxonomy of the western yellow-billed available in coming to our decision to species throughout most of its historical cuckoo that need further research. list the western yellow-billed cuckoo as range, and the rate of decline of the However, in making our listing

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determination, we must use the best western yellow-billed cuckoos in cuckoo is essentially a global population scientific and commercial data available various locations of California, Arizona, analysis. Every attempt has been made in coming to any conclusions on New Mexico, and Colorado. Several to be certain that citations support the whether the species should be listed. additional commenters provided their statements made in the proposed and (51) Comment: One commenter stated personal observations in Arizona, New this final rule. Where we do not have that the eastern and western yellow- Mexico, and Colorado, which indicated specific reference support we explained billed cuckoos may be interbreeding on that local populations of western our rationale based on the best available the wintering grounds. yellow-billed cuckoos have declined information on coming to any Our Response: Because yellow-billed over the last 30 years. conclusions. It is not Service policy to cuckoos do not breed on their wintering Our Response: These additional list names of document authors or those grounds in South America, it is not observations support the information who reviewed data. Much of the plausible that they are interbreeding that we presented in the proposed and research that has been conducted on the during this time. this final listing rule regarding western yellow-billed cuckoos has (52) Comment: Several commenters population trends for the species in occurred in California, which may lead do not believe that differences in these States. readers to the opinion that the proposed migration timing between eastern and (55) Comment: Nine commenters rule is California-centric. The winter western yellow-billed cuckoos are stated that the western yellow-billed range of the western yellow-billed evidence that there is a marked cuckoo was not threatened, that they cuckoo is not well-known and therefore separation between the two groups. were either not declining or not could not be mapped. Our Response: The proposed rule and declining at a rate that would lead to (57) Comment: Several commenters this final rule identify a wide variety of extinction, and that yellow-billed stated that western yellow-billed cuckoo factors that separates western yellow- cuckoos were doing well in the East. survey data were missing from the billed cuckoos from the rest of the Our Response: Yellow-billed cuckoos proposed rule or the data have been taxon. Migration timing is one of these in the East are declining at 1.4 to 1.6 updated after the proposed rule was factors. In general, migration timing is percent per year over the past 43 years published (e.g., Utah, New Mexico, governed by forces of natural selection (Sauer et al. 2012, entire). Based on the Arizona). that operate over long periods of time. best available science and data, western Our Response: We have considered Given that populations of eastern and yellow-billed cuckoos have declined this updated information in our final western yellow-billed cuckoos arrive on dramatically throughout their range over listing determination, and the their breeding grounds, at the same the past 150 years. This decline has information will be considered in the latitude, a month or more apart is continued in recent years, and with very final critical habitat designation and significant and is most likely governed few exceptions (e.g., the South Fork future recovery plan. by evolutionary forces. This pattern of Kern River Valley, where the small (58) Comment: One commenter asked consistently arriving on their respective populations appears to be stable, and why western yellow-billed cuckoos are breeding grounds a month or more apart the Lower Colorado River, where the continuing to decline with all the is different from year to year, and population is showing an increase), it is habitat protection that has been variations in weather may lead to continuing to decline. The data and happening over the past 25 years. individual birds arriving on the information we have used in this final Our Response: It is true that breeding grounds a few days earlier or rule lead us to conclude that the significant habitat protection and later than normal. Please see the western DPS of the yellow-billed cuckoo restoration has been underway for the Distinct Vertebrate Population Segment is threatened with extinction. No data past 25 to 30 years. Much of this work Analysis section, above, for further were presented by commenters that has been done on a project-by-project explanation of our rationale for show increasing population trends or basis or on a smaller scale than will determining that the western yellow- population numbers that contradict our likely be necessary for the stabilization billed cuckoo is a valid DPS. conclusion that the western yellow- and recovery of the species. Recovery (53) Comment: Three commenters billed cuckoo is a threatened species. goals for western yellow-billed cuckoos stated that they believed that the species (56) Comment: Eight comments were and their habitat will be set in the was not distinct. received on data analysis and proposed recovery plan for the species as it is Our Response: The Service is listing rule preparation. Issues raised included developed. In some areas, such as the a DPS rather than a species or the lack of a population viability Sacramento River, western yellow-billed subspecies. As detailed in the analysis, the lack of a global population cuckoo populations have continued to Taxonomy section under Background analysis, inadequate citations support decline even though significant habitat and Discreteness section of the Distinct for statements made in the document, restoration activities have been carried Vertebrate Population Segment not providing the names of Service out. Aging of the existing habitat and Analysis above, the western DPS of the biologists who reviewed data, taking a increased occupancy by invasive yellow-billed cuckoo coincides with the California-centric approach in the species, especially edible fig (Ficus range of the proposed subspecies proposed rule, and only providing range carica) and black walnut (Juglans sp.), boundary of the ‘‘western’’ yellow-billed maps showing the breeding season’s may be contributing factors. In addition, cuckoo (Coccyzus americanus range. effects of pesticides on caterpillars may occidentalis). However, because there is Our Response: Current available be a factor in many areas. It is indeed some scientific uncertainty to the scientific data on the western yellow- a concern that western yellow-billed validity of the subspecies, the Service is billed cuckoo are not sufficient to cuckoos have declined even in areas not listing the subspecies, but rather is conduct a meaningful population where habitat has been protected and listing the western DPS. viability analysis. Too many of the has either been stabilized or has important parameters are not known increased. Further research is needed to Population Numbers well enough for the results to be determine the exact causes of this (54) Comment: Twelve commenters reliable. The State-by-State and region- continued decline. stated that there have been recent by-region analysis of the entire range of (59) Comment: One commenter declines of breeding populations of the western DPS of the yellow-billed questioned our science and asked that

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all information on western yellow-billed habitat use is different between eastern populations in the West are able to have cuckoo populations and declines should and western populations of yellow- an impact on the caterpillar population. be removed from the discussion in the billed cuckoos. See our response to Comments on Specific Habitat Areas rule. Comment 6, above, for additional Our Response: The information on discussion on habitat use in the eastern (66) Comment: Two commenters western yellow-billed cuckoo and western United States. stated that water transfers from population and declines presented in (63) Comment: One commenter stated agriculture to urban areas and from the the proposed and this final rule is based that understory vegetation was as Kern River Valley to southern California on the best available science. In making important to western yellow-billed were threats to the western yellow- listing determinations under the Act, we cuckoos as overstory vegetation. billed cuckoo. must conduct a five-factor analysis on Our Response: As stated in the Our Response: We appreciate this the threats facing a species based on the proposed listing rule and cited by additional information and have best available scientific and commercial reference in this final rule, the amount, considered this in our listing information. In some cases the size, composition, and density of habitat determination. We have identified the information on a species’ status and are important habitat selection criteria disruption of ‘‘natural’’ stream trends is unclear or the information for the western yellow-billed cuckoo. hydrology and flows as a threat to the available is sparse. In these cases, we Although habitat characteristics vary species. The occupied habitat for the nonetheless must base our across the range of the species, western yellow-billed cuckoo in the determinations on the best available understory vegetation is an important South Fork of the Kern River is information. In the case of the western characteristic for the species. For upstream of the control facilities at Lake yellow-billed cuckoo, the available example, along the Sacramento River, Isabella. Large-scale water diversions information on population status and the size of the site, the amount of from the Kern River do not take place declines is appropriate to include in our riparian habitat in each 5-mi (8-km) until downstream of the dam. For the discussion of the status of the species river segment, and the presence of Kern River, the majority of water and in making our final determination young woody vegetation (understory) available for potential transfer to on the species’ listing status of were the most important factors in a southern California is part of a ground threatened. model explaining the distribution of water storage program (underground (60) Comment: Numerous yellow-billed cuckoo pairs (Halterman water bank). Any actions associated commenters have concerns regarding 1991, p. 30). Along the lower Colorado with this transfer of water would not survey methods, comparison of survey River, in a comparison of occupied affect occupied western yellow-billed data, accuracy of survey counts, and versus unoccupied habitat, yellow- cuckoo habitat upstream. (67) Comment: One commenter stated changes in survey protocols over the billed cuckoos were found at sites with that western yellow-billed cuckoo years for the yellow-billed cuckoo. denser riparian vegetation and more habitat was declining along the Verde Our Response: Please see response to variation in vegetation density, and less Comment 5 above for our response to River in Arizona. tamarisk and shrubby vegetation, Our Response: We appreciate this concerns over the survey protocols and compared to unoccupied sites (Johnson other survey concerns. additional information and have et al. 2012, pp. 15–17). considered this in our listing Comments on Habitat Use and Species (64) Comment: Two commenters determination. This is consistent with Information stated that western yellow-billed the pattern of habitat loss and (61) Comment: Several commenters cuckoos do not need large blocks of degradation described in the Factor A indicated that habitat use separates riparian habitat, and one commenter section of this document. eastern and western yellow-billed stated that they do not need riparian (68) Comment: Several commenters cuckoo populations. One commenter habitat at all. Another commenter stated pointed out the importance of the San further stated that in eastern New that habitat use and patch size needed Pedro River (AZ) and the Gila River (AZ Mexico and western Texas, yellow- were not well-defined. and NM) for western yellow-billed billed cuckoos from eastern populations Our Response: The use of large blocks cuckoos. nest in monotypic stands of tamarisk, of riparian habitat for yellow-billed Our Response: We appreciate this while western yellow-billed cuckoos do cuckoos in western United States is additional information and have not. The commenter did not provide any well-documented. Recent studies of considered this in our listing specific study but based their statement habitat use using radio telemetry have determination. The San Pedro River has on observations. shown that a western yellow-billed the largest population of western Our Response: We appreciate this cuckoo will use 100 ac (40 ha) of habitat yellow-billed cuckoos in Arizona and additional information and have or more during the breeding season. See one of the largest in the western DPS, considered this in our listing our response to Comment 63, above, for and the Gila River also contains an determination. Additional research on additional discussion on habitat use by important population of western yellow- this topic would be valuable. The the western yellow-billed cuckoo. billed cuckoos in both New Mexico and information provided will also be (65) Comment: Eight commenters Arizona. considered further in recovery planning. stated that yellow-billed cuckoos were (69) Comment: Commenters in See response to Comment 6, above, for providing ecosystem services by eating Arizona, Wyoming, Montana, and additional information. caterpillars. Colorado all stated that their State was (62) Comment: One commenter stated Our Response: We appreciate this fringe habitat for the western yellow- that yellow-billed cuckoos select much additional information and have billed cuckoo and did not contribute to different habitat in the East than they do considered this in our listing the conservation of the species. in the West. determination. Yellow-billed cuckoos in Our Response: Southwestern Our Response: We appreciate this eastern United States, where they are Wyoming and western Montana are at additional information and have more abundant, may be numerous the northeastern edge of the range of the considered this in our listing enough to control caterpillar western DPS of the yellow-billed determination. We recognize that populations. It is unlikely that the small cuckoo. These areas at the margin of the

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range can be very important in Grazing Impacts during droughts, riparian zones can still monitoring the health of a population, (73) Comment: One commenter be grazed in a manner that may degrade as they may become unoccupied when indicated that impacts to livestock riparian habitat attributes and prevent the population is declining and ranchers are unequal east and west of long-term health and persistence of reoccupied when the population is the DPS line, making for unfair these systems. increasing. Habitat in Colorado is economic competition. Habitat Loss important for the conservation of Our Response: According to the Act, western yellow-billed cuckoos not only (75) Comment: One commenter stated we are to make listing determinations that just because California destroyed its for the small breeding population, but solely on the basis of the best scientific more importantly for habitat for riparian habitat that other States should and commercial data available. The not bear the burden of listing. migrating western yellow-billed cuckoos economic impact of listing is only that nest to the north in Idaho. Arizona Our Response: Listing determinations considered when designating critical are based on habitat and population is at the center of the range of the habitat for a listed species. We will western DPS of the yellow-billed trends and threats. A severe threat in consider the incremental impacts on one portion of the range can lead to cuckoo, and habitat there is vital to the livestock grazing operations during our DPS’ survival. listing throughout the range. However, designation of critical habitat for the for the western yellow-billed cuckoo, (70) Comment: One commenter species. there is abundant evidence that riparian mentioned that land in New Mexico is (74) Comment: One commenter stated habitat has been lost throughout the being retired from agriculture, not that livestock grazing improves the range of the species. This loss is greater converted to agriculture. ecological condition of riparian systems, in some areas than in others, but the Our Response: We appreciate the while another stated that in the past threats to the western yellow-billed commenter’s statement, but they did not cattle grazing was destructive, but that cuckoo through habitat loss, as detailed provide specific information on the it was no longer a problem in riparian in this final rule, are widespread and subject. Our research on agricultural habitats. not limited to California (see Summary land use changes for New Mexico also Our Response: We identified past and of Factors Affecting the Species for did not provide any specific information current grazing activity in riparian areas additional discussion of threats affecting on the extent, location, or nature of occupied by the species to be a threat the species). agricultural lands being converted or to the western yellow-billed cuckoo. We (76) Comment: Three commenters retired; however, it has been estimated are not aware of any science or data that stated that the proposed rule does not that over 90 percent of riparian habitat support the statement that livestock show a causal link between habitat loss within New Mexico has been lost during grazing improves the ecological and population declines. the last century (Krzysik 1990, entire). condition of riparian systems. The Our Response: We disagree. The data (71) Comment: One commenter stated western yellow-billed cuckoo nesting and information utilized for the that recent information shows that habitat is structurally complex with tall proposed and final rules show a strong yellow-billed cuckoos that breed in the trees, a multistoried vegetative link between the declines in the western eastern United States then move to understory, low woody vegetation DPS of the yellow-billed cuckoo and northwestern Mexico and breed as was (Halterman 1991, p. 35), and higher riparian habitat. The Historical and speculated in another paper is wrong. shrub area than sites without western Current Status section of the proposed yellow-billed cuckoos (Hammond 2011, rule, which is incorporated (by Our Response: Researchers (Rowher p. 48). Livestock grazing alters reference) into this final rule, lists and Wood 2013 pp. 243–250) have understory vegetation, trampling numerous examples where riparian recently retracted an earlier assertion existing vegetation, reducing density, or forests were removed and the western that yellow-billed cuckoos bred in eliminating new growth in riparian yellow-billed cuckoo population eastern North America and then flew to areas and thereby hampering declined. In addition, literature is northwestern Mexico and bred a second recruitment of woody species that, referenced in the rule that provides time. We have revised our discussion on when mature, provide nest sites. abundant additional supporting the subject in this final rule. Furthermore, the relatively cool, damp, examples connecting loss of habitat to Comments on Factors Affecting the and shady areas favored by western western yellow-billed cuckoo Species yellow-billed cuckoos are those favored population declines. Factor A under the by livestock over the surrounding drier Summary of Factors Affecting the (72) Comment: Three commenters uplands. This can concentrate the Species section in this final rule details addressed the threat of proposed mining effects of habitat degradation from the threats to riparian habitat both in the operations in the Patagonia Mountains livestock in western yellow-billed past and present. in south-central Arizona, the declining cuckoo habitat (Ames 1977, p. 49; (77) Comment: Three commenters water table, and the decline in western Valentine et al. 1988, p. 111; Johnson said that riparian habitat may have yellow-billed cuckoo populations in 1989, pp. 38–39; Clary and Kruse 2004, declined by 90 percent in the past, but that area. pp. 242–243). that it now is increasing. One Our Response: We concur that gravel Controlled and seasonal livestock commenter said that there is no mining and other mining activity can grazing can occur in a manner that is evidence that habitat is being adversely impact the western yellow-billed compatible with the management of affected by natural or manmade factors. cuckoo and its habitat. This is a western yellow-billed cuckoo habitat, Our Response: Riparian habitat is localized threat that is discussed under although effective monitoring and increasing in some areas, but at the Factor A section of the final rule. See management would most likely be same time is decreasing or becoming Factor A. The Present or Threatened needed especially in the more arid less suitable in other areas. The overall Destruction, Modification, or regions of the Southwest. Current trend throughout the range of the Curtailment of its Habitat or Range, for grazing management practices are less western yellow-billed cuckoo is not additional discussion on the threat of harmful to riparian systems than some known. Simply measuring the extent of mining. past practices. However, especially riparian habitat from one time period to

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the next will not tell what the effect on in the West are thicker because there is scientific data indicate this disease as a western yellow-billed cuckoos will be. more calcium in the West. major factor in the western yellow- Tens of thousands of acres of riparian Our Response: There is a large body billed cuckoo’s decline. habitat still exist on the Lower Colorado of literature linking environmental DDT (83) Comment: One commenter stated River, but almost all of it, with the and its derivatives (e.g., that most pesticides are used in highly exception of the recently planted dichlorodiphenyldichloroethylene populated areas by people who do not restoration sites, is comprised only of (DDE)) to eggshell thinning in birds. follow label instructions. tamarisk that does not support western Calcium deficiency can cause eggshell Our Response: While this statement yellow-billed cuckoos. Tamarisk thinning in bird eggs, but this effect has may be true, western yellow-billed domination has occurred on many river not been demonstrated through region- cuckoos rarely occur in or near highly systems through the range of the by-region comparisons or a population- populated areas and are much more western yellow-billed cuckoo. Along to-population comparisons. Trees and likely to be affected by application of other streams like the Sacramento River, shrubs rarely show the effects of pesticides on adjacent agricultural other invasive species, such as edible fig calcium deficiency within either the fields. See ‘‘Pesticides’’ section, below, and black walnut, have become eastern or western range of the yellow- for further information on the impacts of dominant, and these areas now provide billed cuckoo in North America. pesticides on the western yellow-billed lower quality habitat for western Yellow-billed cuckoos would obtain cuckoo. yellow-billed cuckoos even though the calcium from their prey, which would (84) Comment: Two commenters overall acreage of riparian habitat has obtain calcium from the leaves they eat. mentioned, and included references on, risen over the past 20 years. In many It is not clear that environmental the new threat of neonicotinoid river systems in the Great Basin, calcium is more available in riparian pesticides, which are extremely toxic to zones in the West than it is in the East. Russian olive (Elaeagnus angustifolia) is caterpillars. It is also unclear as to what effect an now the dominant species, and it has Our Response: Neonicotinoid abundance of environmental calcium reduced the habitat value for western pesticides are systemic chemicals that yellow-billed cuckoos. In response to has on yellow-billed cuckoo bird eggshells. There are no scientific studies are taken up through various plant parts the second part of the comment, the and can be distributed through a plant’s discussion under the section The that the Service is aware of on this topic. tissues. These chemicals can be applied Present or Threatened Destruction, to a plant as a seed coating, through soil Modification, or Curtailment of its (81) Comment: One commenter stated that rotenone used by Game and Fish contact, through irrigation water, or as Habitat or Range details the effect that a foliar spray. Many of these chemicals human activities have had and are agencies to kill fish may have injured western yellow-billed cuckoos. are long-acting, with half-lives up to 2 continuing to have on riparian systems Our Response: Although rotenone is years. Plant tissues that have been throughout the range of the western classified as a broad-spectrum pesticide treated are toxic to both sap-sucking yellow-billed cuckoo. and has been used to control insects, we (e.g., aphids and true bugs) and foliage- (78) Comment: One commenter asked are not aware of any information that eating insects (e.g., caterpillars, that all statements regarding threats the use of the chemical as a piscicide katydids, grasshoppers, and beetles). from water projects and water (control of fish) has harmed the western Many of these foliage-eating insects are management should be removed from yellow-billed cuckoo. The exposure risk potential prey of the western yellow- the document. of rotenone to terrestrial birds is low, billed cuckoo. This information has Our Response: Threats from water and studies have shown that it would been incorporated into this final rule. projects and water management are take levels of consumption of fish, Additional Threats significant threats as detailed in the vegetation, and/or water that are not proposed and this final rule. As such, physically possible or probable to reach (85) Comment: Several commenters discussion of these threats is a lethal dose (Finlayson et al. 2000, p. stated that there were threats to western appropriate. See discussion under the 193). The commenter did not provide yellow-billed cuckoos that were not Habitat Loss from Dams and Alteration information on the possible mechanism discussed in the proposed rule. These of Hydrology section for additional behind this perceived threat. included threats from recreational information. (82) Comment: One commenter stated shooting, threats from solar generation sites, and threats from wind power. Drought that West Nile virus was a reason that yellow-billed cuckoos have declined. Our Response: All the activities may (79) Comment: One commenter stated Our Response: As discussed below in impact the western yellow-billed that western yellow-billed cuckoos had the Disease or Predation section, the cuckoo. In our evaluation of threats, we declined because of the drought and U.S. Geological Survey’s National identified those threats that rise to the will recover now that the rains have Wildlife Health Center has identified level of being a threat to the continued returned. the yellow-billed cuckoo as a species existence of the species. Although these Our Response: While drought may that is subject to the effects of West Nile activities affect the species, we do not have a negative effect on western virus and the Center for Disease find that these activities would have a yellow-billed cuckoo populations, the Control’s (CDC) Vector-Borne Disease significant effect on the species. declines in the western yellow-billed Web site reports that West Nile virus Comment on Regulatory Mechanisms cuckoo’s range and populations have has been documented in a dead yellow- occurred through both wet and dry billed cuckoo (Center for Disease (86) Comment: Five commenters periods over the past 150 years. Control 2012). The information on the stated that Factor D, inadequacy of impact of West Nile virus to the western existing regulatory mechanisms, is also Pesticides and Disease yellow-billed cuckoo does not suggest a significant threat. Other commenters (80) Comment: One commenter stated that it has undergone a precipitous stated that the proposed rule ignored the that dichlorodiphenyltrichloroethane decline coincident with the relatively Federal regulatory mechanisms that (DDT) does not thin eggshells and that recent arrival of West Nile virus in protect western yellow-billed cuckoos western yellow-billed cuckoo eggshells western North America, and no and their habitat.

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Our Response: The proposed and this cuckoos, while being a riparian obligate appropriate for the western yellow- final rule present a detailed discussion species, have different ecological billed cuckoo. Based on our review, we of Federal, State, and international laws requirements than other species that are have determined that modifying our and regulations that provide some already listed (e.g., southwestern willow ‘‘standard’’ regulations for a threatened protection and conservation benefit to flycatcher and least Bell’s vireo). As a species would not be necessary and the western DPS of the yellow-billed result, it has not been proven that the advisable in providing for the cuckoo. The western yellow-billed conservation measures outlined by conservation of the western yellow- cuckoo has continued to decline, and its commenters would ‘‘take care’’ of the billed cuckoo. If new or additional habitat has continued to be lost and western yellow-billed cuckoo and its information is received that may suggest degraded. In determining if a species is habitat. In regards to quantification of that a rule issued under section 4(d) of to be added to the List of Endangered or the benefits habitat restoration, we the Act may be appropriate, we would Threatened Wildlife, the species needs readily acknowledge that any well- review such information and, if only to be threatened by one of the five developed and maintained restoration appropriate, issue a proposed section factors listed in section 4(a)(1) of the efforts will most likely benefit the 4(d) rule for public comment prior to Act. According to our analysis of the western yellow-billed cuckoo and its developing any final section 4(d) best scientific and commercial habitat. However, we have found that, prohibitions for the species. information available, the western in some cases, even when habitat Listing Process Public Input yellow-billed cuckoo is threatened by restoration has been completed, the both Factors A and E. Our evaluation of benefit to the species has not been clear, (91) Comment: Eight comments were Factor D discusses the extent to which as some areas still remain unoccupied received on the listing process. This the inadequacy of each existing or their numbers continue to decline. included statements regarding: regulatory mechanism exacerbates the (89) Comment: Two commenters were Inadequate public feedback, that listing threats evaluated in Factors A and E. An concerned that the listing of the western decisions should reflect customs and individual regulatory mechanism may yellow-billed cuckoo would disrupt cultures of the local community, that reduce a threat to a greater or lesser recovery efforts for the southwestern court settlements should not be a factor extent, but none separately or in willow flycatcher and the Rio Grande in listing decisions, and that a finding combination reduces any of the threats silvery minnow (Hybognathus amarus). of warranted but precluded should have to the point that they are no longer Our Response: We disagree. Although been maintained as a possibility. threats to the western yellow-billed additional coordination would be Our Response: In accordance with the cuckoo. required to ensure that the habitat and Act and the Administrative Procedure species needs for all three species was Act (5 U.S.C. Subchapter II), and our Comment on Cumulative Effects occurring for a potential recovery regulations in Title 50 of the Code of (87) Comment: Several commenters action, we do not believe that that Federal Regulations (CFR), we have stated that the proposed rule needs process would favor or harm any one solicited public comment on our more emphasis on cumulative effects. single species in particular. In fact, by proposed listing action. The comment Our Response: We recognize that implementing recovery efforts for two or period was reopened twice to insure cumulative effects are important. more species it would present that the public had ample opportunity Cumulative effects are discussed in opportunities that may be larger in scale to comment on the proposed rule. several sections of the proposed and this or allow greater flexibility than smaller Listing endangered or threatened final rule, including the section of water disjointed efforts for single species species is a process that examines management, grazing, climate change, conservation. threats to the species. Although customs and pesticide use. Please see those and cultures of local communities are Comments on Potential Exemptions sections for additional information on important considerations, they are not (Section 4(d) Rule) the impacts of cumulative effects on the part of the listing process under the Act. western yellow-billed cuckoo. (90) Comment: Several commenters Court settlements were not a factor in requested that rules under section 4(d) preparation of the proposed rule to list Comment on Conservation Measures of the Act be included in the listing to the western DPS of the yellow-billed (88) Comment: Eighteen commenters exempt the following activities: (a) Oil cuckoo as a threatened species. The discussed conservation measures and and gas development and other court settlement simply guaranteed that indicated that benefits from economic activities; (b) riparian the Service would do an analysis of the conservation measures were not restoration activities; (c) all existing western DPS of the yellow-billed cuckoo discussed and that conservation conservation activities; and (d) land and and determine if it should be listed as measures for other species should ‘‘take water use activities. an endangered species or a threatened care’’ of the western yellow-billed Our Response: Section 4(d) of the Act species or not listed. Regarding cuckoo. Others stated that there was a allows the Secretary the discretion to maintaining the warranted-but- need to quantify the benefits of riparian issue such regulations as [s]he deems precluded category as a listing habitat restoration to western yellow- necessary and advisable to provide for possibility, the western yellow-billed billed cuckoos. the conservation of a species. The cuckoo was previously found to be Our Response: Conservation measures Service’s standard policy (under 50 CFR ‘‘warranted but precluded,’’ in 2001; the and their effect on western yellow-billed 17.31(a)) for issuing prohibitions for next step in the listing process is to cuckoos are discussed in the proposed threatened species is to apply all the either propose it for listing (and finalize and this final rule. The majority of prohibitions applicable to endangered the proposal if appropriate) or make a currently implemented conservation species to a threatened species unless finding that the species is no longer measures focus on species other than otherwise revoked by issuance of more warranted for listing. the western yellow-billed cuckoo. specific prohibitions. In the case of the Conservation measures that are carried western yellow-billed cuckoo, we Use of the Best Available Scientific and out for other species may have a reviewed whether the ‘‘standard’’ Commercial Information positive effect on the western yellow- prohibitions apply or whether more (92) Comment: Ten commenters said billed cuckoo, but western yellow-billed specific prohibitions might be that the science used in the proposed

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rule is flawed, inaccurate, and biased (94) Comment: One commenter said incorporation of additional information and is not the best available science. that two recent peer reviewed papers on the species’ biology, this final rule Several commenters indicated that the (Villarreal et al. 2014 and Wallace et al. has not changed significantly from the Service should only select the ‘‘best’’ 2013) that were not cited in the proposed rule. Changes to the final rule data from the data that was available. proposed rule are not valid. include: (1) Updates to the life-history Our Response: All available sources of Our Response: The Service information of the species’ vocalizations data on distribution and abundance of appreciates the commenter drawing our and how these changes may have yellow-billed cuckoos in the western attention to these papers that had affected survey results for the species; United States were consulted, reviewed, published after the proposed rule was (2) updates to survey data (though no and used in the proposed rule. We also published in the Federal Register new populations have been located and provided the proposed rule for peer (October 3, 2013). We will evaluate no major increases have been noted in review to five knowledgeable these peer-reviewed papers, which deal the past 2 years); (3) updates to the individuals with scientific expertise that with modeling western yellow-billed threats in Factor A; and (4) the addition included familiarity with the yellow- cuckoo habitat using remote sensing, of threats of neonicotinoid pesticides in billed cuckoo and its habitat, biological and with the commenter’s concerns in Factor E. needs, and threats. We reviewed all mind, we will consider them in our We did receive information from the comments we received from the peer final critical habitat designation as State of Washington regarding habitat reviewers for substantive issues and appropriate. use in the Pacific Northwest including new information regarding the listing of (95) Comment: One commenter stated western Oregon, western Washington, the western DPS of the yellow-billed that they did not like the use of data and southwestern British Columbia. cuckoo. The peer reviewers generally from the Arizona Breeding Bird Atlas This information updates our Habitat concurred with our methods and (Corman and Wise-Gervais 2005, pp. Use and Needs section of the proposed conclusions, and provided additional 202–203) in the proposed rule. listing rule. In describing habitat use by information, clarifications, and Our Response: Arizona Breeding Bird the species, we stated that the species suggestions to improve this final rule. Atlas data (Corman and Wise-Gervais requires large blocks of habitat in Additional data were provided by 2005, pp. 202–203) were used in the riparian landscapes for breeding. In the commenters, including Federal and proposed rule to demonstrate that description of breeding habitat, the State wildlife and resource agencies, but western yellow-billed cuckoos are found document generally focuses on riparian none of that additional data changed the on a small percentage of the landscape areas in arid environments as this is pattern of western yellow-billed cuckoo in Arizona. Breeding bird atlases are an where the majority of confirmed distribution and abundance presented important source of information on bird breeding now occurs. The result gives in the proposed rule. In response to the distribution and abundance in areas the impression that the species does not selection of data, we conclude that it is where they are available. To not present currently use or has not historically much better to present and discuss all these data would be contrary to our used more moist riparian areas such as available pertinent data in our requirement to use the best available northern California, western Oregon, determinations, rather than be science in listing decisions. western Washington, and southwestern subjective and select which data to British Columbia, Canada, as breeding present and review. We have made our Property Rights habitat. Although breeding for the determination in this final rule solely (96) Comment: Two commenters western yellow-billed cuckoo has not based on the best available scientific stated that listing the western yellow- been recently confirmed in Oregon, and commercial data available as billed cuckoo will restrict property Washington, and British Columbia, required by section 4(b)(1)(A) of the Act. rights and access to public lands. these more moist areas are within the (93) Comment: One commenter stated Our Response: This comment was historic breeding range of the species. that the Service did not cite papers in presented generally with no specific Recent observations indicate that the proposed rule that were cited in the instances or information. It is very western yellow-billed cuckoos 12-month finding. unlikely that listing the western yellow- occasionally occur in these areas and Our Response: The proposed rule is billed cuckoo will have the effect of the possibility of breeding in Oregon, an updated and more thorough review limiting access to public lands. Direct Washington, and British Columbia of the best available information on the human disturbance is not seen as a cannot be ruled out at this time. We are western yellow-billed cuckoo and is an major threat to the western yellow- not including the Habitat Use and independent document from the 12- billed cuckoo as discussed in the final Needs section in this final rule, but are month finding (66 FR 38611; July 25, rule. It is unclear what the commenter updating the information here and 2001). Additional research has been meant by restriction of property rights, incorporating the remainder of the completed on the species, and but it is not likely that listing the discussion contained in the proposed additional peer-reviewed papers have western yellow-billed cuckoo will have rule by reference. been published and reports written over an adverse effect on private property Summary of Factors Affecting the the past 13 years that supersede ownership or use. previously published paper and reports. Species The new information in some cases has Summary of Changes From Proposed Section 4 of the Act and its confirmed, updated, or revised older Rule implementing regulations (50 CFR 424) research. These are all reasons that some Based upon our review of the public set forth the procedures for adding papers that were cited in the 12-month comments, comments from other species to the Federal Lists of finding are not directly cited in the Federal and State agencies, peer review Endangered and Threatened Wildlife proposed rule. However, information comments, and any new relevant and Plants. A species may be and research cited in the 12-month information that may have become determined to be an endangered or finding is still part of the decisional available since the publication of the threatened species due to one or more record for the western yellow-billed proposal, we reevaluated our proposed of the five factors described in section cuckoo and included (by reference) in rule and made changes as appropriate. 4(a)(1) of the Act: (A) The present or this final rule. Other than minor clarifications and threatened destruction, modification, or

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curtailment of its habitat or range; (B) prevent the riparian plants that are the change. The Factor A threats are overutilization for commercial, basis of the species’ habitat from described in more detail below. recreational, scientific, or educational growing at all. The consequences of Moreover, past and ongoing impacts to purposes; (C) disease or predation; (D) these past actions may have initially the species’ habitat are working in the inadequacy of existing regulatory resulted in destruction or modification combination with other threats, which mechanisms; or (E) other natural or of then-existing riparian habitat; are discussed in greater detail in Factors manmade factors affecting its continued however, once that habitat is lost, the C and E, below. existence. Listing actions may be changed conditions (such as changed Habitat Loss From Dams and Alteration warranted based on any of the above hydrologic regime) also prevents of Hydrology Dams threat factors, singly or in combination. riparian habitat from regenerating, even Each of these factors is discussed below. in the absence of other impacts. For Several researchers and scientific organizations including the Service A. The Present or Threatened example, channelization—through manmade levees or other constructs, or reviewed the following effects of human Destruction, Modification, or modification of natural hydrological Curtailment of Its Habitat or Range through channel incising as a consequence of other actions—may processes on riparian habitat, including The decline of the western yellow- leave the geographical area where those from dams (Poff et al. 1997, pp. billed cuckoo is primarily the result of riparian plants once grew (such as the 769–784; Greco 1999, pp. 36–38; riparian habitat loss and degradation. watercourse’s floodplain) physically National Academy of Sciences (NAS) Within the three States with the highest untouched, but the altered hydrology 2002, pp. 145–150; Service 2002, historical number of western yellow- prevents riparian plant species from Appendix I, pp. 1–12). Dams result in billed cuckoo pairs, past riparian habitat germinating and growing. an immediate effect of destroying losses are estimated to be about 90 to 95 riparian structure and functioning due percent in Arizona, 90 percent in New Principal causes of riparian habitat to habitat displacement from dam Mexico, and 90 to 99 percent in destruction, modification, and construction and by permanent California (Ohmart 1994, pp. 276–281; degradation in the range of the western inundation, sometimes flooding miles of DOI 1994, p. 215; Noss et al. 1995, pp. yellow-billed cuckoo have occurred upstream riparian areas. This results in 37, 46; Greco 2008, p. 5). Many of these from alteration of hydrology due to the physical loss of riparian vegetation. habitat losses occurred historically, and dams, water diversions, management of In the absence of vegetation, the western although habitat destruction continues, riverflow that differs from natural yellow-billed cuckoo cannot breed, feed, many past impacts have subsequent hydrological patterns, channelization, or find shelter. Current and future ramifications that are ongoing and are and levees and other forms of bank releases of water downstream from affecting the size, extent, and quality of stabilization that encroach into the dams at unnatural rates of flow or riparian vegetation within the range of floodplain. These losses are further timing that differ from preconstruction the western yellow-billed cuckoo. The exacerbated by conversion of hydrologic circumstances, or at too connection between habitat loss and the floodplains for agricultural uses, such as frequent or too infrequent intervals, may decline of western yellow-billed crops and livestock grazing. In lead to flooding or desiccation beyond cuckoos is thoroughly documented in combination with altered hydrology, the tolerance limits of the native California (Gaines and Laymon 1984, these threats promote the conversion of riparian vegetation, thus resulting in pp. 49–80). These adverse impacts to existing primarily native habitats to loss of habitat of the western yellow- the western yellow-billed cuckoo’s monotypic stands of nonnative billed cuckoo. habitat including habitat loss and vegetation, which reduce the suitability Dam construction has been occurring degradation are occurring now and are of riparian habitat for the western since the settlement of western North anticipated to continue for decades to yellow-billed cuckoo. Other threats to America with its peak in the mid-20th come. riparian habitat include long-term century. These include most major Moreover, these impacts are often drought and climate change. These western rivers, many of which have a subtle. As described in the Habitat Use threats are summarized in a recent series of dams, and include, but are not and Needs section in the proposed rule, detailed review of the literature on the limited to, the Sacramento, Kern, San during the breeding season the habitat subject (Poff et al. 2011, pp. 1241–1254). Joaquin, Mojave, Snake, Gila, Salt, of the western yellow-billed cuckoo Water management and delivery Verde, and Rio Grande, including 25 consists of expansive blocks of riparian throughout the western United States is major reservoirs built on the Colorado vegetation containing trees of various contentious, and resolving issues related and Green Rivers alone between the ages, including in particular larger, to water allocation is difficult and often 1930s and 1970s (Richter et al. 1998, p. more mature trees used for nesting and a lengthy, heavily contested process. 332). In northern Mexico, these rivers foraging. In order for these areas to The exact timeframe for resolving water include the Rı´o Conchos, Yaqui, and remain as viable western yellow-billed management and delivery issues and Mayo, Rı´o Bambuto, Rı´o Bravo, cuckoo habitat, the dynamic transitional their impact on the western yellow- Tubutama, La Reforma, Cuchujaqui process of vegetation recruitment and billed cuckoo and its habitat would vary River in Alamos, Aconchi and Baviacora maturity must be maintained. Without on the location, resource demands, in Rı´o Sonora, and Upper San Pedro such a process of ongoing recruitment, sensitive habitat or species concerns, River in Sonora (Instituto del Media habitat becomes degraded and is stakeholders, and amount of water Ambiente y el Desarrollo Sustentable eventually lost. In our discussion below, available. As a result, we would expect del Estado de Sonora (IMADES) 2003, p. we identify human impacts to riparian that resolving water issues for the 4; Kelly and Arias Rojo 2007, pp. 2–3; vegetation as resulting in current and various uses (agriculture, urbanization, Cornell et al. 2008, p. 96). ongoing destruction and modification of wildlife, and tribal interests) in the west There are now dozens of large dams existing and future potential habitat for will be a lengthy ongoing process and and scores of smaller dams on rivers the western yellow-billed cuckoo. not be resolved in the near future (10– throughout the range of the western Past actions by humans have resulted 20 years) and may take substantially yellow-billed cuckoo. Today, the rate of in changes to the landscape, the longer considering the increased building new dams has slowed because hydrology, or both such that they demands and the effects of climate most of the highest quality dam sites

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already have dams constructed on them. Merced River confluence found that, cuckoo within the immediate upstream There were proposals to build two dams between 1937 and 1993, the area of influence of the associated reservoirs. on Cottonwood Creek, one of the major riparian forest and scrub decreased 28 For example, one of the largest tributaries of the Sacramento River percent, from 6,787 to 4,914 ac (2,727 to concentrations of western yellow-billed (USACE 1982), but it is not clear when 1,989 ha), and the herbaceous riparian cuckoo in New Mexico occurs at the or if these dams will be built. A larger vegetation decreased from 4,076 to 780 inflow to Elephant Butte Reservoir on current threat is the enlargement ac (1,650 to 316 ha) (Jones and Stokes the middle Rı´o Grande (Sechrist et al. (raising of dams or control structures) of Associates, Inc. 1998, Chap. 5, pp. 1–2). 2009, p. 1; Ahlers and Moore 2011, pp. existing dams. The enlargement of These losses are most likely attributed 19–20). Western yellow-billed cuckoo Terminus Dam on the Tule River in to reduced stream flow down the river numbers increased following several California by 21 ft (6.5 m) in height was as a result of water diversions. years when water levels receded and completed in 2004 (Barcouda et al. In the case of the San Joaquin River, riparian vegetation expanded into the 2006, p. 12), and proposals to enlarge efforts are under way for restoring a exposed area of the reservoir pool. The Shasta Dam on the Sacramento River by more natural functioning hydrologic western yellow-billed cuckoo up to 18.5 ft (5.7 m) in height and system and to restore riparian habitat population there continues to increase, increasing its storage capacity (Reclamation 2012, pp. 7–8). Generally, likely as a result of continued (Reclamation 1999, pp. 3–8; in the absence of ongoing dam drawdown from long-term drought that Reclamation 2013, pp. ES 15–22) and operations, where areas are allowed to allows maturation of the riparian forest Friant Dam on the San Joaquin River by flood and deposit sediment, the habitat into suitable breeding habitat (Ahlers up to 140 ft (43 m) in height are being is likely to regenerate naturally. and Moore 2011, pp. 19–20). Drought explored (Reclamation 2003, pp. 3.1– However, because of the way the patterns are cyclical, and, when wetter 3.8), and the raising of Lake Isabella on majority of dams are operated, the conditions return to the region, the Kern River by the USACE is in the ability for the stream courses to promote Elephant Butte Reservoir likely will be final stages of implementation (USACE natural regeneration and maintenance of refilled. When this happens, 2012, pp. 1–4). Larger dams with riparian habitat has been greatly approximately 92 percent of 44 to 87 additional storage would likely flood diminished. These impacts are pairs of western yellow-billed cuckoos potential western yellow-billed cuckoo happening now and are likely to there (detected during the 2007 and habitat upstream and cause additional continue without changes to water 2008 surveys) would be displaced hydrologic disruption downstream. release strategies and management. through inundation (Reclamation 2009, While the amount of habitat lost After the completion of the larger pp. 64–65). within the construction zone of a dam dams on the Colorado River system The threat to the western yellow- is relatively small, far greater amounts starting in the 1930s, limited pulse billed cuckoo’s habitat from fluctuating of habitat are destroyed in the areas of flows reached the lower Colorado River water levels behind dams is likely to inundation and through the ongoing in Mexico for nearly 50 years, resulting occur elsewhere in the range of the effects of the amount and timing of in the loss of cottonwood–willow forests western yellow-billed cuckoo. In water releases through the dam and the establishment of tamarisk California, the State’s second largest operation, which affects both upstream (Glenn et al. 2001, pp. 1175–1186; population of western yellow-billed and downstream habitats. Ongoing Nagler et al. 2005, pp. 1843–1844). cuckoos occurs within the inflow delta downstream effects to riparian habitat Local decline of the western yellow- footprint of Lake Isabella, a dammed from dams include changes in sediment billed cuckoo and other riparian birds reservoir on the Kern River. Breeding transport due to sediment retention has been attributed to that habitat loss western yellow-billed cuckoos are also behind the dams so that channels below and degradation (Hinojosa-Huerta et al. found at other reservoir inflow deltas, a dam become increasingly ‘‘sediment 2008, p. 81). Additionally, along the Rı´o such as Horseshoe Reservoir on the starved.’’ This situation causes vertical Altar in northern Mexico, completion of Verde River (Dockens and Ashbeck erosion (downcutting), which can lead the Cuauhte´moc Dam and Reservoir 2011a, p. 1) and the Tonto Creek and to loss of river terraces that sustain (Presa Cuauhte´moc) in 1950 diverted Salt River inflows to Roosevelt Lake in riparian vegetation (NAS 2002, pp. 145– surface water and contributed to Arizona (Salt River Project 2002, pp. 150; Poff et al. 2009, pp. 773–774; Poff increased vegetation clearing for 61–67). and Zimmerman 2010, pp. 196–197). agriculture, degradation of mature The temporary gain in riparian habitat Ongoing operations of large dams can cottonwood forests, and subsequent at the inflow of reservoirs can be also dampen the magnitude of normal declines in distribution and abundance beneficial to the western yellow-billed high flows, thus preventing cottonwood of riparian bird species associated with cuckoo by providing large expanses of germination (Howe and Knopf 1991, p. these forests (Flesch 2008, p. 43), additional nesting and foraging habitat 218), and dewater downstream reaches, including the western yellow-billed during a sequence of low-water years. causing substantial declines of riparian cuckoo, which is known to occur there. However, the value of such habitat is forests (NAS 2002, pp. 145–150). For In addition to past habitat losses, the affected by fluctuating water levels example, Groschupf (1987, p. 19) found altered hydrology caused by dams between years. Drastically fluctuating that almost all cottonwoods and over continues to have an ongoing impact on water levels with alternating inundation half of all willow trees were eliminated riparian habitat. and desiccation cycles have been from one waterway in Arizona that was While alteration of hydrology due to associated with fluctuations in exposed to repeated large releases of dam construction and other water populations of western yellow-billed water from a dam. This situation supply projects has been widely cuckoos that breed in reservoir inflow reduced the density of western yellow- implicated in the loss and degradation sites (Laymon and Williams 2002, pp. billed cuckoos from 13 per 100 ac (40 of downstream riparian habitat for the 12–13; Henneman 2008, pp. 12–13). For ha) before the flooding to 3 per 100 ac western yellow-billed cuckoo (Gaines example, along the Kern River, western (40 ha) after the flooding (Groschupf and Laymon 1984, p. 73; Greco 1999, yellow-billed cuckoo numbers increased 1987, p. 19). In another example, a pp. 36–38; Greco 2012, pp. 8–9), some during low reservoir levels for multiple study of the San Joaquin River from dams have resulted in temporary habitat years when vegetation recolonized the downstream of the Friant Dam to the expansion for the western yellow-billed drawdown area (Laymon et al. 1997, p.

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10), but western yellow-billed cuckoos from dams in the Colorado River system the highest number of western yellow- moved to other sites during a wet year (Rosenberg et al. 1991, pp. 18–23), the billed cuckoos (Villasen˜ or-Gomez 2006, when lake levels rose and flooded out western yellow-billed cuckoo numbers pp. 107–108; Greco 2008, p. 6; Greco habitat (Launer et al. 1990, p. 10; declined by 70–75 percent. Habitat has 2012, pp. 8–9). For example, the Halterman et al. 2001, p. 20). When the since improved on the Bill Williams Sacramento River from Red Buff to water receded, it took up to 2 years for River Delta, but western yellow-billed Colusa has a highly dynamic mosaic of western yellow-billed cuckoos to return cuckoo numbers remained low for habitat patches of varying ages that to breed in the area; however, this several years (Laymon and Halterman form, disappear, and reform in response return was at reduced numbers even 1987a, pp. 10–18). The actual to active river channel processes that though the habitat returned to previous mechanism that influences the yellow- operate over decades (Greco 2008, p. 6; levels (Laymon and Williams 2002, pp. billed cuckoo’s response to fluctuations Greco 2012, pp. 8–9). Although this 12–13; Henneman 2008, pp. 12–13). The in water levels is unknown, but loss of section of the Sacramento River is also reason for this delay in recolonization prey has been implicated; areas that affected by altered hydrology, it is far needs further study (Henneman 2010, were inundated normally support enough below Shasta Dam and below pp. 12–14). ground-nesting invertebrates, such as several major undammed tributaries, The water level continues to remain katydids and sphinx moths, that such as Cottonwood Creek and Battle below capacity at Lake Isabella due to western yellow-billed cuckoos feed Creek, that it still has flood events every dam safety concerns (Stewart 2012, upon, and it may take several years for few years that help support riparian pers. comm.). Once Lake Isabella fills these prey populations to rebound habitat processes (Werner 2012, pers. again to capacity, the riparian habitat (Laymon and Williams 2002, pp. 12–13; comm.). that has since formed at the inflow and Henneman 2008, pp. 12–13). The river provides habitat that supports western yellow-billed In Sonora, Mexico, large dams exist characteristics that Laymon (1998, p. 4) cuckoos will become inundated, at least on the Mayo, Yaqui, and Sonora Rivers indicated were important for the periodically (Whitfield 2012, pers. (Villasen˜ or-Gomez 2006, p. 107). We do western yellow-billed cuckoo in comm.), thereby impacting the habitat of not have information on the magnitude California, such as a meandering system the western yellow-billed cuckoo. In or frequency of effects, positive or with young riparian habitat that, addition, the USACE and the USFS are negative, from water management compared to mature woodlands, developing a proposal and have activities, to the western yellow-billed provides preferred nesting sites; high completed a final environmental impact cuckoo in those locations. However, we productivity of invertebrate prey; and statement on options to repair dam have no reason to believe that the dams reduced predator abundance (Laymon deficiencies and raise the height of the are managed in a substantially different 1998, p. 4). Another example of dam an additional 16 ft (4.9 m) (Isabella manner in Mexico than dams in the relatively intact riparian habitat in the Lake Dam Safety Modification Project southwestern United States, and the range of the western yellow-billed Environmental Impact Statement Final effects to riparian habitat are expected cuckoo is found in the highlands of October 2012). Pursuant to section 7 of to be similar. central Sonora, Mexico, which supports the Act, consultation was completed for Despite some positive effects of dams occupied habitat of the western yellow- the proposed action, but the western on increasing western yellow-billed billed cuckoo. Villasen˜ or-Gomez (2006, yellow-billed cuckoo was not a species cuckoo habitat in a few areas, these p. 108) found that the maintenance of addressed in the biological opinion. gains in habitat are only temporary, and the natural flooding regimes due to the Lake Isabella is currently managed to overall, the net effect of dams on the limited number of water development minimize incidental take of the species has been negative. As such, structures has allowed riparian southwestern willow flycatcher dams and their ongoing operations are vegetation along sections of the Sonora, (flycatcher) (Empidonax traillii extimus) a threat to the western yellow-billed Moctezuma, and Sahiaripa Rivers to from reservoir operations and recreation cuckoo over most of its range. This persist in very good condition in some using reasonable and prudent measures threat has resulted in substantial areas. Most of the known occurrences of developed during consultation with the historical losses of western yellow- western yellow-billed cuckoo in central Service (Service 1996, 1999, and 2005, billed cuckoo habitat resulting in a Sonora are associated with these entire). Some of these measures to curtailment of the species’ range. The regions. conserve the flycatcher may be ongoing operation of these dams is We conclude that dams continue to beneficial to the western yellow-billed likely to have minor impacts to the affect both the downstream and cuckoo; however, the eventual species at any given location, but upstream habitat through alteration of inundation of the drawdown area of the because so many of the waterways flows. These effects can include widely reservoir will result in some degree of within the range of the species have fluctuating water levels at inflow sites temporary habitat loss and degradation been dammed, we believe this threat has that inundate nesting habitat, limit food under current operational guidelines a substantial cumulative impact on the resources, and flood or desiccate habitat and may result in permanent loss of habitat of the western yellow-billed (Poff et al. 1997, pp. 769–784; Greco habitat for the western yellow-billed cuckoo, especially when considered 1999, pp. 36–38; NAS 2002, pp. 145– cuckoo if the proposed dam raise is with other threats. Moreover, we expect 150; Service 2002, Appendix I, pp. 1– implemented. Similar periods of the operation of these dams will 12). Downstream effects caused by inundation and drawdown, resulting in continue in a similar manner for sediment retention behind dams, or corresponding development and decades to come, and thus we expect sediment scouring and removal caused destruction of suitable western yellow- this threat to be an ongoing impact to by excessive water releases, do not billed cuckoo habitat, occur at Roosevelt the western yellow-billed cuckoo’s mimic the natural flow regimes and Lake (Salt River Project (SRP) 2002, habitat. often result in the inability for entire). The areas where the floodplain is still cottonwoods to become established or In Arizona, following the high water hydrologically connected to the river regenerate and provide habitat for the levels of 1983–1984 and 1986 on the and has relatively unconstrained western yellow-billed cuckoo. Woody Bill Williams River Delta, which is riverflow, such as in some areas of and herbaceous debris accumulates in influenced by fluctuating water levels California and Sonora, Mexico, support the absence of these scouring flows,

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increasing fire risk and intensity is also affecting river flows and riparian breeding sites that are supported by (Stromberg and Chew 2002, pp. 195– vegetation along rivers that support the various types of supplemental water 219) (see section on Wildfire below). western yellow-billed cuckoo in including agricultural and urban runoff, Dams and their flow modifications Mexico, including the Rı´o Conchos in treated water outflow, irrigation or have ongoing effects to habitat and will Chihuahua (Kelly and Aria-Rojo 2007, diversion ditches, reservoirs, and dam likely do so for decades to come, further p. 174; Cornell et al. 2008, p. 98) and outflows (Service 2002, p. D–15). modifying the habitat of the western the Rı´o Altar in Sonora, where the Although the waters provided to these yellow-billed cuckoo. Therefore, direct quantity of surface water declined habitats might be considered and indirect destruction of riparian greatly between 2000 and 2007 (Flesch ‘‘artificial,’’ they are often important for habitat resulting from altered hydrology 2008, pp. 44–45). Therefore, ground maintaining the habitat in appropriate from past dam-building activities water extraction and water diversions condition for breeding western yellow- continues to contribute to the create an ongoing threat to western billed cuckoos within the existing curtailment of the range of the western yellow-billed cuckoo habitat. environment. yellow-billed cuckoo. Additionally, as a The hydrologic regime (stream flow result of future predicted climate change pattern) and supply of (and interaction Encroachment of Levees and Flood (see Climate Change section below), the between) surface and subsurface water Control and Bank Stabilization climate within the range of the western is a driving factor in the long-term Structures Into the River Channel and yellow-billed cuckoo will likely become maintenance, growth, recycling, and Floodplain drier, which will increase the demand regeneration of western yellow-billed Other alterations in river hydrology for water storage and conveyance cuckoo habitat (Service 2002, p. 16). As with ongoing effects on western yellow- systems, which in turn will likely streams reach the lowlands, their billed cuckoo habitat include river increase the frequency and severity of gradients typically flatten and channelization, construction of levees, impacts on western yellow-billed surrounding terrain opens into broader bank stabilization, and placement of any cuckoo habitat (Stromberg et al. 2013, floodplains (Service 2002, p. 32). In flood control structures that encroach pp. 411–415). these geographic settings, the stream- into the river and its floodplain. These flow patterns (frequency, magnitude, actions result in direct loss of habitat Surface and Ground Water Diversion duration, and timing) will provide the from construction and from Water extractions, both from surface necessary stream-channel conditions maintenance activities that remove water diversions and ground water (wide configuration, high sediment woody vegetation that has become pumping, can negatively affect riparian deposition, periodic inundation, established on the structures. vegetation (Poff et al. 1997, pp. 769– recharged aquifers, lateral channel Furthermore, these structures are 784; Service 2002, Appendix I, pp. 1–8). movement, and elevated ground-water effective, by design, at severing the Water diversions and withdrawals can tables throughout the floodplain) that hydrologic connection of the river’s lower ground water levels in the result in the development of riparian main channel and the river’s immediate vicinity of riparian vegetation. Because habitat suitable for use by western floodplain, thereby preventing overbank ground water and surface water are yellow-billed cuckoos (Poff et al. 1997, flooding. By preventing overbank generally connected in floodplains, pp. 770–772; Service 2002, p. 16). flooding, levees and other similar lowering ground water levels by only Allowing the river to flow over the structures reduce the amount of water about 3 ft (1 m) beneath riparian areas width of the floodplain, when overbank available to riparian vegetation in the is sometimes sufficient to induce water flooding occurs, is integral to allow floodplain, which results in desiccation stress in riparian trees, especially in the deposition of fine moist soils, water, and eventual loss and degradation of western United States (NAS 2002, nutrients, and seeds that provide the riparian habitat (Vogl 1980, pp. 84–86; p. 158). Physiological stress in native essential material for plant germination NAS 2002, p. 155; Greco 2012, vegetation from prolonged lower flows and growth. An abundance and pp. 8–9). Such effects are less or ground water results in reduced plant distribution of fine sediments extending destructive, however, for those levees growth rate, morphological change, or farther laterally across the floodplain located farther from the stream system, mortality, and altered species and deeper underneath the surface such as those outside the meander belt composition dominated by more retains much more subsurface water, of a river (Greco 2012, p. 4). drought-tolerant vegetation, and which in turn supplies water for the As an illustrative example, we conversion to habitat dominated by development of the vegetation that provide a brief summary of how river nonnative species (Poff et al. 1997, provides western yellow-billed cuckoo channelization, construction of levees p. 776). These effects reduce and habitat and microhabitat conditions close to the river, and rock riprap degrade habitat for the western yellow- (Service 2002, p. 16). The armoring along the levees have caused billed cuckoo for foraging, nesting, and interconnected interaction between destruction and modification of western cover. ground water and surface water yellow-billed cuckoo habitat on the Adverse effects of excessive ground contributes to the quality of the riparian Sacramento River, one of the most water extraction on riparian vegetation vegetation community (structure and substantial historical nesting and have been well-documented in the plant species) and will influence the foraging habitat areas for the western southwestern United States. Case ability of vegetation to germinate, yellow-billed cuckoo. The Sacramento histories on many river systems in regenerate, and maintain its foliage River is now disconnected from Arizona including the Santa Cruz River density, vigor, and species composition ecological processes that both renew and on the Owens River in California (Arizona Department of Water and restore riparian and aquatic habitats have documented the connection Resources 1994, pp. 31–32). (Laymon and Halterman 1987a, pp. 11– between overutilization of the ground In many instances, western yellow- 14; Halterman 1991, pp. 1–2; Greco water, lowering of the water table, and billed cuckoo breeding site occur along 2008, p. 6; Greco 2012, pp. 8–9). More the decline and eventual elimination of streams where human impacts are than one-half of the Sacramento River’s riparian vegetation (Zektser et al. 2005, minimized enough to allow more banks within the lowermost 194 mi (312 pp. 400–401; Webb and Leake 2006, natural processes to create and maintain km) of river have now been rip-rapped pp. 317–320). Ground water extraction the habitat. However, there are also by 40 years of bank protection (Service

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2000, pp. 26–29). Rock riprap armoring removing riparian vegetation for for miles on the main river and its a river reach often changes the river construction of the roadbed, and tributaries. As headcuts migrate dynamics and leads to channel modifying local hydrology to reroute upstream, the incision propagates downcutting and erosion immediately surface water and ground water. Bridges upstream (Kondolf et al. 2001, p. 49). downstream from the riprap. Therefore, or culverts require abutments along the This process creates ongoing and future riprapping banks leads to the need for bank to provide roadway support. impacts to habitat from past as well as more riprapping. Because abutments and roadbeds current gravel mining operations. Channelizing the river and severing physically constrain the stream, future Similar to the effects of manmade levees the connection to the floodplain has lateral adjustments by the stream, which when they disconnect floodplain habitat severely altered the natural disturbance can affect floodplain dynamics, are from the active river channel, artificial regime that would have allowed effectively eliminated, which reduces channel incision as a result of gravel riparian habitat to regenerate now and and degrades riparian habitat (NAS mining and similar activities reduces in the future (Poff et al. 1997, pp. 769– 2002, p. 182). Such impacts result in overbank flooding. This situation 784; Greco 2008, p. 6; Greco 2012, additional destruction and modification reduces the hydrological connection to pp. 8–9). The result is that much of the of habitat for the western yellow-billed the floodplain (Kondolf et al. 2001, river’s remaining riparian habitat is cuckoo. In comparison with p. 56), thereby resulting in subsequent modified, and now occurs in narrow, construction of dams and altered loss and degradation of riparian habitat disconnected, linear strips (Service hydrology, this threat, by itself, is less for the western yellow-billed cuckoo, 2000, pp. 26–29; Halterman et al. 2001, likely to result in severe impacts to throughout its range, including Mexico p. 4) that are not utilized by the western riparian habitat. However, this threat is (Cornell et al. 2008, p. 98). The effects yellow-billed cuckoo for breeding but one of many that, in combination, of incision and channel erosion are (Gaines 1974, p. 204; Greco 2012, p. 9). results in substantial changes to further exacerbated where gravel mining With the example of the Sacramento physical and hydrological properties of occurs in sediment-starved reaches River, nesting western yellow-billed a watercourse, which in turn contributes below dams (Kondolf et al. 2001, p. 10). cuckoos no longer occur south of Colusa to a substantial curtailment in the We expect past and ongoing gravel as the river has been channelized and habitat of the western yellow-billed mining activities, either alone or in riprapped from that point into the cuckoo. combination with other hydrological Sacramento-San Joaquin River Delta. changes in riparian areas, to continue to Gravel Mining These flood control and bank modify habitat and further curtail the stabilization structures also keep the Other past and ongoing effects to range of the western yellow-billed riparian habitat from regenerating and riparian habitat result from gravel cuckoo for decades. maturing. The factors that reduce mining (Kondolf et al. 2001, pp. 54, 59). In conclusion, dams, channelization, western yellow-billed cuckoo breeding Extraction of gravel, primarily for and other manmade features that alter in these areas are not well-understood, construction products, typically occurs the watercourse hydrology and encroach but reductions of breeding population along rivers and adjacent floodplains into the active channel and floodplain have been attributed to lack of patches where gravel deposits are naturally are threats to the habitat of the western of adequate size for nesting (Greco 2012, found. Large amounts of gravel removal yellow-billed cuckoo because they, pp. 8–9), increased predators, and the from the stream and active floodplain separately or in combination, species’ inability to use highly isolated result in channel downcutting or significantly reduce and degrade nesting patches (Halterman 1991, pp. 33–38), as incision, which affects groundwater and foraging habitats. The natural discussed under Factor E. The levels, frequency of overbank flows, processes that sustain riparian habitat in Sacramento River is but one of many bank stability, and the extent and these and similar dammed and rivers within the range of the western character of riparian vegetation of channelized river systems in the yellow-billed cuckoo where these specific stream reaches (Collins and American West and in northwestern activities have destroyed and modified Dunne, 1989, pp. 213–224; Kondolf Mexico have been altered, resulting in riparian habitat and where the 1995 pp. 133–136; NAS 2002, p. 179). only fragments or remnants of formerly ramifications of these past actions are Some examples of downcutting on large tracts of native riparian forests that continuing to impact the western streams in California that historically no longer support breeding western yellow-billed cuckoo’s habitat today. had, but no longer have, populations of yellow-billed cuckoos or support them These ongoing impacts will likely western yellow-billed cuckoos, include: in fewer numbers. The multiple effects continue for decades to come. Cache Creek, Yolo County (15.0 ft (4.6 from altered hydrology comprise the An additional pervasive threat is the m) average and 26.0 ft (8.2 m) maximum most widespread and greatest design of open-channel flood control downcutting); Merced River, Merced magnitude of current threats to habitat channels with inappropriately smooth County (5.9 ft (1.8 m) average and 7.8 that supports the western yellow-billed roughness coefficients. This creation ft (2.4 m) maximum downcutting); cuckoo. Such processes continue to over-scours the floodplains and requires Putah Creek, Yolo County (7.8 ft (2.4 m) modify habitat and further curtail the removal of woody riparian vegetation average and 15.0 ft (4.6 m) maximum range of the western yellow-billed that regenerates on floodplains, which downcutting); Russian River, Sonoma cuckoo. Moreover, we expect these in turn leads to floodplains with no County (11.4 ft (3.5 m) average and 17.9 alterations in the hydrology to continue western yellow-billed cuckoo habitat ft (5.5 m) maximum downcutting); and to affect habitat of the western yellow- (Greco 2013, pp. 707–717). Santa Clara River, Ventura County (15.6 billed cuckoo into the future. ft (4.8 m) average and 20.2 ft (6.2 m) Transportation Systems maximum downcutting) (Kondolf et al. Habitat Loss and Degradation From Similarly, transportation systems have 2001, p. 50). Agricultural Activities directly and indirectly altered a large Furthermore, gravel extraction creates Following the effects from alterations number of riparian areas in western a knickpoint (a sharp change in channel in hydrology in severity, conversion of North America (NAS 2002, p. 182). slope) that typically erodes upstream in riparian areas for agricultural crops and Road and rail systems are frequently a process known as headcutting, which livestock grazing has been, and sited along rivers, and often entail has the potential to propagate upstream continues to be, a major contributor to

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riparian habitat loss and degradation rules are applied to farmland along the billed cuckoo has been documented (NAS 2002, p. 161; Johnson et al. 2007, Gila, Rio Grande, Sacramento, and (O’Brien et al. 2008, p. 8). Grazing p. 61). Colorado Rivers, western yellow-billed intensity in northern Sonora, Mexico, is Large areas of cottonwood–willow cuckoo habitat could be eliminated to generally much higher than in adjacent floodplain vegetation have been meet these food safety concerns. Arizona (Balling 1988, pp. 106–107; converted to agricultural uses, further Accidental fire from farm workers Flesch 2008, pp. 44–45), which leads to reducing the extent of habitat available operating machinery or burning weeds greater degradation of riparian habitat to western yellow-billed cuckoos for sporadically escapes into adjacent than in Arizona. breeding (Swift 1984, pp. 225–226; riparian habitat. Recent fires on western The Service (2002, Appendix G, pp. Rosenberg et al. 1991, pp. 18–23). For yellow-billed cuckoo and southwestern 5–7) and Krueper et al. (2003, p. 608) example, within areas that support the willow flycatcher conservation reviewed the effects of livestock grazing, western yellow-billed cuckoo, clearing properties occurred in 2011, burning 58 primarily in southwestern riparian for agricultural uses occurred ac (24 ha) and 6 ac (2 ha), respectively, systems. The frequency and intensity of extensively in the past. On the within the Fort Thomas Preserve, on effects vary across the range of the floodplains of the Sacramento River parcels owned by the Salt River Project species, due to variations in grazing (Greco 1999, pp. 2, 107), riparian habitat and U.S. Bureau of Reclamation. Both practices, climate, hydrology, ecological was reduced from 775,000 ac (314,000 fires were determined to be human- setting, habitat quality, and other factors ha) in the 1850s to less than 18,000 ac caused, likely from farm workers (Service 2002, Appendix G, p. 1). (7,287 ha) by 1977 (Swift 1984, burning weeds along irrigation drains However, these effects generally include p. 226). Clearing for agriculture is also (SRP 2011, p. 39). the removal and trampling of vegetation extensive along the lower Colorado Other ongoing effects from cultivated and compaction of underlying soils, River (Rosenberg et al. 1991, pp. 18–23), agriculture on the western yellow-billed which can inhibit germination and San Pedro River, Gila River (Swift 1984, cuckoo are addressed under Factor E. change hydrology (Rea 1983, p. 40; p. 226), Rı´o Grande, and several river These include fragmentation of habitat Belsky et al. 1999, pp. 419–431) and courses in northern Mexico including, into smaller, more widely disjunct promote the dispersal of nonnative but not limited to, the Rı´o Yaqui, Rı´o patches; ongoing influence of plant species. Such effects are most Mayo, Rı´o Bambuto, Rı´o Tubutama, and agriculture on riparian bird community significant when riparian areas have Rı´o Sonora (Russell and Monson 1998, composition; and effects from been subject to overuse by livestock p. 11; IMADES 2003, p. 4; Villasen˜ or- pesticides, which can negatively impact (NAS 2002, pp. 24, 168–173). Overuse Gomez 2006, p. 108). Clearing also insect prey populations of the western occurs when grazed vegetation does not occurred along the coasts of Sinaloa and yellow-billed cuckoo. recover sufficiently to maintain itself southern Sonora, Mexico, resulting in Habitat Loss and Degradation From and soils are left bare and vulnerable to massive losses of thorn forest to Livestock Grazing Activities erosion. Over time, livestock grazing in industrial agriculture (Rohwer et al. riparian habitats, combined with other 2009, p. 19054). Domestic livestock grazing is a alterations in streamflow, typically Although most riparian and thorn traditional agricultural land use practice results in reduction of plant species scrub habitat losses largely stem from in the southwestern United States since diversity and density and may increase past agricultural clearing, effects from the first Spanish settlement along the the distribution and density of cultivated agricultural lands are Rio Grande in New Mexico in 1598 nonnative tamarisk by eliminating ongoing. Agricultural lands continue to (Little 1992, p. 88; Clary and Kruse competition from native cottonwood dominate much of the remaining 2004, p. 239). Livestock grazing and willow saplings, which are riparian landscape, particularly along continues to be a widespread preferred forage for livestock (Krueper et the Sacramento (Greco 1999, pp. 94, agricultural use of riparian areas in the al. 2003, p. 608). 104, 107), parts of the Gila, and lower western United States and is one of the Long-term cumulative effects of Colorado Rivers (Johnson et al. 2007, p. most common sources of past and livestock grazing involve changes in the 207); along the latter, 65 percent of ongoing riparian habitat degradation structure and composition of riparian western yellow-billed cuckoo survey (Carothers 1977, p. 3; Rickard and vegetation (Service 2002, Appendix G, sites are bordered on at least one side Cushing 1982, pp. 2–4; Cannon and pp. 5–7), which may affect suitability of by agriculture fields (Johnson et al. Knopf 1984, p. 236; Klebenow and habitat for western yellow-billed cuckoo 2007, p. 61). Riparian areas are Oakleaf 1984, p. 202; Swift 1984, pp. breeding and prey population sometimes viewed as a potential source 225–226; Clary and Webster 1989, pp. abundance. The western yellow-billed of plant and animal pests, a source of 1–2; Schultz and Leininger 1990, pp. cuckoo nesting habitat is structurally shade that may reduce crop yields, and 298–299; Bock et al. 1993, p. 300). complex with tall trees, a multistoried competition for scarce water resources Livestock grazing occurs in western vegetative understory, low woody (NAS 2002, pp. 170–171). For example, yellow-billed cuckoo habitat along vegetation (Halterman 1991, p. 35) and in the Salinas Valley in California, a sections of the middle Rio Grande in higher shrub area than sites without vigorous program is under way to New Mexico (Lehman and Walker 2001, western yellow-billed cuckoos comply with food safety practices that p. 12), Rı´o Conchos (Cornell et al. 2008, (Hammond 2011, p. 48). Livestock involve the clearing of riparian habitat p. 96), Rı´o Bambuto, Tubutama, La grazing alters understory vegetation, adjacent to certain types of crops in an Reforma, and Cuchujaqui River in reducing height and density or effort to eliminate wildlife presence, Alamos, Aconchi and Baviacora in Rı´o eliminating new growth in riparian which has been linked to contamination Sonora, and upper San Pedro River areas, and thereby hampering of crops with a virulent strain of the (IMADES 2003, p. 4), and several other recruitment of woody species that, bacteria Escherichia coli (Beretti and rivers in central Sonora, Mexico when mature, provide nest sites. Stuart 2008, pp. 68–69; Gennet et al. (Villasen˜ or-Gomez 2006, p. 108). Furthermore, the relatively cool, damp, 2013, pp. 236–242). While western Grazing also occurs extensively along and shady areas favored by western yellow-billed cuckoos do not currently watercourses in a protected reserve on yellow-billed cuckoos are those favored breed along the Salinas River (Gaines the Rı´o Aros and Rı´o Yaqui in Sonora, by livestock over the surrounding drier and Laymon 1984, p. 52), if these same Mexico, where the western yellow- uplands. This preference can

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concentrate the effects of habitat yellow-billed cuckoo by restricting or populations of tamarisk in southwestern degradation from livestock in western preventing the growth of riparian plants, Idaho, and eastern Washington and yellow-billed cuckoo habitat (Ames and such activities present an ongoing Oregon. Models based on projected 1977, p. 49; Valentine et al. 1988, p. threat. Most of the current impacts from climate change predict that this invasive 111; Johnson 1989, pp. 38–39; Clary and agricultural land uses arise from species will become more dominant in Kruse 2004, pp. 242–243). livestock overgrazing in riparian areas. this region over the next 100 years Removal, reduction, or modification Riparian vegetation can recover (Kerns et al. 2009, pp. 200–215). of cattle grazing has resulted in relatively quickly from these effects Tamarisk also occurs west to the Owens, increases in abundance of some riparian after livestock removal (Smith 1996, p. San Joaquin, and Sacramento Rivers in bird species. For example, Krueper 4; Krueper et al. 2003, p. 615). However, California, although it is still nearly (1993, pp. 322–323) documented without proper management to reduce absent from the mainstem Sacramento responses of 61 bird species, most of overgrazing, ongoing overgrazing will River in California and suitable habitat which increased significantly 4 years continue to contribute to habitat west of the Cascades in Oregon and after removal of livestock grazing in modification in the range of the western Washington. Arizona’s San Pedro River Riparian yellow-billed cuckoo into the future. Tamarisk also occurs as isolated National Conservation Area. The bird individuals along sections of the species guilds that increased most Habitat Loss and Degradation Due to Sonora, Moctezuma, and Sahiaripa dramatically were riparian species, Conversion to Nonnative Vegetation Rivers in Sonora, Mexico, where the open-cup nesters, Neotropical migrants, Throughout most of its range, habitat hydrology has been little altered by and insectivores, all species that share for the western yellow-billed cuckoo is human modifications (Villasen˜ or-Gomez characteristics with the western yellow- threatened by the conversion of native 2006, pp. 107–108). Its presence is billed cuckoo. The western yellow- riparian woodlands to riparian highly variable within sections of the billed cuckoo numbers in the study vegetation dominated by tamarisk and Rı´o Conchos in Chihuahua, Mexico, and increased, although not significantly other nonnative vegetation. The major becomes dominant in some reaches of (p=0.13) (Krueper et al. 2003, p. 612), threat from this habitat conversion is the that river (Kelly and Arias Rojo 2007, but their survey methodology was not change from vegetation that supplies the pp. 177–178; Cornell et al. 2008, p. 4). designed to detect western yellow-billed western yellow-billed cuckoos with The threshold (in terms of percent cuckoos. Recovery of vegetation in essential food and adequate thermal tamarisk) for abandonment of a riparian response to grazing removal in that cover to vegetation that does not system by western yellow-billed study was quickest and most provide these necessary components of cuckoos is not known. They are not pronounced in the lower vegetation habitat for the western yellow-billed found in areas that are totally layers, the most accessible to grazing cuckoo. The establishment and dominated by tamarisk with the cattle. Thus, this situation would allow persistence of tamarisk is often, but not complete lack of willows or a greater number of seedlings and always, aided by altered hydrology, as cottonwoods. In California, two native- saplings of cottonwoods and other nest described above. Altered hydrology is dominated areas occupied in 1977 by trees to attain maturity as suitable not the cause for establishment and several pairs of western yellow-billed nesting sites. persistence of other types of nonnative cuckoos had, by 1986, converted to In another example, livestock grazing vegetation; therefore, we present monotypic stands of tamarisk and were was terminated along portions of the information on nonnative vegetation in found to be uninhabited by western South Fork Kern River at the Kern River this separate section. yellow-billed cuckoos. Above Laguna Preserve in the 1980s, and western Tamarisk is the most widespread Dam on the Colorado River in 1977, at yellow-billed cuckoos increased in nonnative woody plant species found in least three pairs of western yellow- number in the years following livestock habitat for the western yellow-billed billed cuckoos occupied a 30-ac (12-ha) removal. Smith (1996, p. 4) contended cuckoo. Glenn and Nagler (2005, pp. site that was approximately 20–40 that termination of grazing at the Kern 420–423) provide most of the following percent willow (Laymon and Halterman River Preserve was responsible for the overview of tamarisk. Tamarisk is 1987a, p. 12). By 1986 no western dramatic increase in riparian vegetation, present in nearly every southwestern yellow-billed cuckoos were detected on which was concurrent with the increase riparian plant community, but varies in the site where the dominant vegetation in western yellow-billed cuckoo dominance from stream to stream. On had become tamarisk, with less than 1 numbers. These examples suggest that streams where altered hydrology can no percent willow cover. In the vicinity of even severely degraded riparian systems longer support native species, it has Picacho State Recreation Area, on the can recover quickly, in at least some replaced native plant communities California side of the Colorado River, in cases, after livestock removal (Krueper entirely, but occurs at a low frequency 1977, 21 western yellow-billed cuckoos et al. 2003, p. 615), and that damage to on other streams. Tamarisk was were found in 297 ac (120 ha) of a 230- riparian vegetation from grazing is at introduced into western North America ft-wide (70-m-wide) willow forest least partly reversible. They also in the 1800s to serve as ornamental (Gaines and Laymon 1984, p. 72). By illustrate the extent to which livestock windbreaks, and for erosion control and 1986, tamarisk and aquatic vegetation grazing destroys and modifies nesting other purposes. Several species escaped dominated this area, and no western and foraging habitat of the western cultivation and have since spread yellow-billed cuckoos were found in the yellow-billed cuckoo. rapidly. The center of tamarisk 12 ac (5 ha) of scattered willow– In conclusion, most of the direct loss distribution is currently Arizona, New cottonwood habitat that remained of habitat from agricultural conversion Mexico, and Utah, and it has spread (Laymon and Halterman 1987a, pp. 12– has occurred in the past, but ongoing throughout most of the range of the 13). agricultural activities, in whole or in western yellow-billed cuckoo at least as Human disturbance, such as water combination with other impacts, far north as the Yellowstone River in diversion, flood control, vegetation especially those that result in changes in Montana in the Rockies, and at least as clearing, and improper grazing a watercourse’s hydrology, have far south as the Yaqui River Valley in management, often facilitates resulted in the curtailment of nesting Sonora, Mexico. Recent studies in the replacement of native vegetation with and foraging habitat for the western northwest have located major tamarisk (Kerpez and Smith 1987, pp.

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1–5; Hunter et al. 1988, p. 113; understory. Himalayan blackberry may pertains to riparian restoration in New Rosenberg et al. 1991, pp. 18–23). prevent establishment of native Mexico and Arizona (Poff et al. 1997, Altered hydrologic regimes (flooding or understory species due to its dense pp. 769–784; Glenn and Nagler 2005, reduction in water flows from dams) has growth habit (Hammond 2011, pp. 48– pp. 439–441; Sogge et al. 2008, pp. 151– disrupted natural flooding events that 49). Nesting of the western yellow-billed 152; Stromberg et al. 2009, pp. 181–182) are essential for maintaining native cuckoo has not been documented in suggests that restoration of natural riparian ecosystems (Vogl 1980, pp. 84– riparian stands dominated by giant reed, hydrological processes, rather than 86; Rosenberg et al. 1991, pp. 18–23), common fig, or Himalayan blackberry direct removal programs, would be a and the disruption (usually elimination) that lack at least some native canopy more effective method for promoting of flooding tends to favor tamarisk. In trees. regeneration of native riparian contrast to native cottonwoods, tamarisk In conclusion, because of the absence vegetation and diminishing the presence does not need flooding to regenerate or near absence of nesting by western of tamarisk. However, tamarisk removal (Kerpez and Smith 1987, pp. 1–5). yellow-billed cuckoos in nearly programs coupled with native riparian Tamarisk is also tolerant of high salt monotypic stands of tamarisk and other plantings can speed up the restoration levels, which can be present in river nonnative vegetation, the available process assuming that the hydrologic systems as a combined result of water literature suggests that conversion of system will support the native diversions that lower the near-surface native or mixed (native and nonnative) vegetation. ground water and irrigation water runoff riparian woodlands to nearly monotypic Tamarisk leaf beetle insects (leaf that contains high levels of dissolved stands of tamarisk and other nonnative beetles) (Diorhabda spp.) were released salts (Kerpez and Smith 1987, pp. 1–5; vegetation, coupled with the inability of into many locations throughout the Busch and Smith 1993, pp. 186–194). native vegetation to regenerate under southwest to control tamarisk. Leaf This higher tolerance to water stress and altered hydrological conditions, is a beetles are now spreading within the salt accumulation is a principle significant threat to the western yellow- more arid range of the western yellow- mechanism by which tamarisk has billed cuckoo now and in the future. billed cuckoo in Nevada, Utah, Arizona, become dominant on some regulated Nonnative vegetation, such as tamarisk, New Mexico, and Texas. Defoliation of western rivers (Glenn and Nagler 2005, occurs across most of the range of the tamarisk by the beetles occurs in the p. 439). In addition, tamarisk takes salts western yellow-billed cuckoo; its summer months when western yellow- from the ground water and exudes them establishment can be caused by altered billed cuckoos are in the process of from its leaves, rendering the soil even hydrology or other disturbances, which nesting. Tamarisk leaf beetles could more unsuitable for germination of are widespread throughout the range. eventually occur throughout the western native riparian vegetation. This is a We expect nonnative vegetation to United States and northern Mexico significant problem in streams with increasingly modify and curtail habitat (Tracy et al. 2008, pp. 1–3). The future artificially reduced streamflows where for the western yellow-billed cuckoo effects of the beetle introductions to the salts accumulate and are not flushed within a majority of its range in the western yellow-billed cuckoo are from the system. These factors favor United States and northern Mexico into unknown. If beetles succeed in killing regeneration of tamarisk over native the future. tamarisk, western yellow-billed cuckoo trees and shrubs and are an ongoing numbers may decline in areas where the Use of Tamarisk by Western Yellow- threat. Additional areas of native habitat hydrology is no longer capable of Billed Cuckoos and the Spread of the are continuing to be lost to this process. supporting a native riparian habitat and Introduced Tamarisk Leaf Beetle Into In summary, the persistence and the numbers may increase in areas the Southwest expansion of tamarisk-dominated where native riparian vegetation is able habitat is the result of multiple forms of Western yellow-billed cuckoos use to become reestablished. ongoing human-related disturbances, habitat with some tamarisk component Wildfire which result in degradation of native- for nesting in southern California, dominated riparian habitat, thus Arizona, and western New Mexico, but Historically, wildfire was uncommon reducing its suitability as breeding are not found in monotypic stands of in native riparian woodlands (Busch habitat for the western yellow-billed tamarisk. Western yellow-billed cuckoo and Smith 1993, pp. 186–194). cuckoo. presence in tamarisk-dominated habitats However, the lack of scouring floods on Other nonnative tree and shrub does not necessarily equate to habitat regulated and unregulated rivers has species have become established within suitability (Sogge et al. 2008, p. 149; resulted in the accumulation of fuel on the range of the western yellow-billed Hammond 2011, p. 50), and additional the floodplain, which increases fire risk cuckoo. In western Colorado and Utah, research is needed to determine and intensity (Stromberg and Chew Russian olive (Elaeagnus angustifolia) productivity, survivorship, 2002, pp. 195–219). Water withdrawal, has become established and is a physiological condition, and food dams, climate change, drought, and dominant tree species in many riparian availability in these habitats. human use also contribute toward an systems. Giant reed (Arundo donax), Tamarisk can add to foliar cover that increased fuel load and probability of common edible fig (Ficus carica), and contributes toward reducing wildfire occurrence. Most fires today are the Himalayan blackberry (Rubus temperatures in riparian areas (Paxton et human-caused (Service 2002, p. L–8). In discolor) are some of the more al. 2011, p. 259). Even relatively small degraded habitat with tamarisk the conspicuous nonnative plants widely decreases in foliar cover may render a threat of fire may be greater. Tamarisk established along the Sacramento River, site unsuitable for nesting western ignites quickly, further increasing the with Himalayan blackberry dominating yellow-billed cuckoos (Paxton et al. incidence of periodic fires. Exacerbating the understory at some restoration sites 2011, p. 260). Removal of tamarisk in the immediate loss of native trees from (Borders et al. 2006, p. 310). Along the drainages occupied by western yellow- fire, tamarisk recovers more quickly Sacramento River, western yellow-billed billed cuckoos can have unintended than native trees (Glenn and Nagler cuckoos were far less likely to be negative consequences if the removal 2005, pp. 435–436). Along the Rio detected at sites with an understory leaves little or no woody vegetation and Grande River in New Mexico and Texas, dominated by Himalayan blackberry native riparian vegetation is unable to wildfire has been documented as than sites with a predominant native reestablish. The available literature that destroying, degrading, or setting back

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successional stages of vegetation changes in the availability and global surface temperature (commonly development of western yellow-billed distribution of western yellow-billed known as global warming), until about cuckoo habitat (Sproul 2000, in litt., p. cuckoo habitat. 2030. Although projections of the 3). In summary, the alteration of Our analyses under the Act include magnitude and rate of warming differ riparian systems through changes in consideration of ongoing and projected after about 2030, the overall trajectory of hydrologic functioning and the changes in climate. The terms ‘‘climate’’ all the projections is one of increasing introduction of nonnative tamarisk have and ‘‘climate change’’ are defined by the global warming through the end of this increased the incidence of wildfire into Intergovernmental Panel on Climate century, even for the projections based western yellow-billed cuckoo habitat. Change (IPCC). The term ‘‘climate’’ on scenarios that assume that GHG These fires further degrade, isolate, or refers to the mean and variability of emissions will stabilize or decline. fragment western yellow-billed cuckoo different types of weather conditions Thus, there is strong scientific support habitat. over time, with 30 years being a typical for projections that warming will period for such measurements (IPCC continue through the 21st century, and Environmental Impacts of Cross-Border 2013a, p. 1450). The term ‘‘climate that the magnitude and rate of change Foot Traffic in the Southwest change’’ thus refers to a change in the will be influenced substantially by the The environmental impact caused by mean or variability of one or more extent of GHG emissions (Meehl et al. cross border foot traffic has been measures of climate (for example, 2007, pp. 760–764, 797–811; Ganguly et increasingly occurring in more fragile temperature or precipitation) that al. 2009, pp. 15555–15558; Prinn et al. and remote areas. The number of U.S. persists for an extended period, whether 2011, pp. 527, 529; IPCC 2013b, pp. 19– Border Patrol apprehensions of border the change is due to natural variability 23). See IPCC 2013b (entire), for a crossers varies annually. Between or human activity (IPCC 2013a, p. 1450). summary of other global projections of October 1, 1999, and September 30, Scientific measurements spanning climate-related changes, such as 2012, a yearly average of 333,517 border several decades demonstrate that frequency of heat waves and changes in crossers were apprehended by the changes in climate are occurring, and precipitation. United States Border Patrol in the that the rate of change has increased Various changes in climate may have Tucson Sector, which does not account since the 1950s. Examples include direct or indirect effects on species. for the many others who were not warming of the global climate system, These effects may be positive, neutral, caught (U.S. Border Patrol 2013, p. 1). and substantial increases in or negative, and they may change over Impacts associated with border precipitation in some regions of the time, depending on the species and crossings include creation of erosion world and decreases in other regions other relevant considerations, such as and watershed degradation, loss of (for these and other examples, see threats in combination and interactions vegetation and wildlife, and human- Solomon et al. 2007, pp. 35–54, 82–85; of climate with other variables (for caused wildfire (Defenders of Wildlife IPCC 2013b, pp. 3–29; IPCC 2014, pp. 1– example, habitat fragmentation) (IPCC 2006, pp. 1–42). Drainages used by 32). Results of scientific analyses 2014, pp. 4–11). Identifying likely border crossers include the San Pedro presented by the IPCC show that most effects often involves aspects of climate River, Santa Cruz River, Cienega Creek, of the observed increase in global change vulnerability analysis. and many remote drainages in the average temperature since the mid-20th Vulnerability refers to the degree to mountain ranges of southeastern century cannot be explained by natural which a species (or system) is Arizona. variability in climate and is ‘‘very susceptible to, and unable to cope with, Human-caused wildland fires have likely’’ (defined by the IPCC as 90 adverse effects of climate change, been particularly damaging to areas of percent or higher probability) due to the including climate variability and riparian habitat in Arizona, especially observed increase in greenhouse gas extremes. Vulnerability is a function of within 100 mi (161 km) of the United (GHG) concentrations in the atmosphere the type, magnitude, and rate of climate States-Mexico border where border as a result of human activities, change and variation to which a species crossers are known to set fires to divert particularly carbon dioxide emissions is exposed, its sensitivity, and its law enforcement agents. Border crossers from use of fossil fuels (Solomon et al. adaptive capacity (Glick et al. 2011, pp. are also responsible for campfires that 2007, pp. 21–35; IPCC 2013b, pp. 11–12 19–22; IPCC 2014, p. 5). There is no can escape and spread as wildfires. At and figures SPM.4 and SPM.5). Further single method for conducting such least 2,467 wildfires began along the confirmation of the role of GHGs comes analyses that applies to all situations Arizona border with Mexico from 2006 from analyses by Huber and Knutti (Glick et al. 2011, p. 3). We use our to 2010 (Government Accounting Office (2011, p. 4), who concluded it is expert judgment and appropriate 2011, p. 1). Federal officials have extremely likely that approximately 75 analytical approaches to weigh relevant officially investigated only 77 of those percent of global warming since 1950 information, including uncertainty, in fires. Of the fires investigated, 30 were has been caused by human activities. our consideration of the best scientific started by border crossers. The resulting Scientists use a variety of climate information available regarding various environmental impacts include the models, which include consideration of aspects of climate change. expansion of nonnative plant species, natural processes and variability, as Global climate projections are degraded endangered species habitat, well as various scenarios of potential informative, and, in some cases, the and soil erosion. levels and timing of GHG emissions, to only or the best scientific information evaluate the causes of changes already available for us to use. However, Climate Change observed and to project future changes projected changes in climate and related Climate change may be impacting the in temperature and other climate impacts can vary across and within western yellow-billed cuckoo. Climate conditions (Meehl et al. 2007, entire; different regions of the world (IPCC change is discussed here under Factor A Ganguly et al. 2009, pp. 11555, 15558; 2013b, pp. 15–16). Therefore, we use because, although it may affect the Prinn et al. 2011, pp. 527, 529). All ‘‘downscaled’’ projections when they western yellow-billed cuckoo directly combinations of models and emissions are available and have been developed by creating physiological stress, the scenarios yield very similar projections through appropriate scientific primary impacts of climate change on of increases in the most common procedures, because such projections the species are expected to be through measure of climate change, average provide higher resolution information

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that is more relevant to spatial scales 217–218, 224, 230) and reducing flows 2030 and 2035 to 2060 show an increase used for analyses of a given species (see later in the season. Third, the in drought severity with surface Glick et al. 2011, pp. 58–61, for a hydrological cycle is expected to warming. Additionally, drought-like discussion of downscaling). With regard become more dynamic on average with conditions will increase even during to our analysis for the western yellow- climate models predicting increases in wetter simulations because of the effect billed cuckoo, downscaled projections the variability and intensity of rainfall of heat-related moisture loss through are available. events. This change will modify evaporation and evapotranspiration The Southwest is already disturbance regimes by changing the (Hoerling and Eischeid 2007, p. 19). experiencing the impacts of climate magnitude and frequency of floods. Annual mean precipitation is likely to change. The region has heated up Precipitation events under most decrease in the Southwest, as is the markedly in recent decades, and the climate change scenarios will decrease length of snow season and snow depth period since 1950 has been hotter than in frequency but increase in severity so (Sun et al. 2013, pp. 21–22; Garfin et al. any comparably long period in at least that, paradoxically, a warmer 2014, pp. 462–486). Most models project 600 years (Graumlich 1993, pp. 249– atmosphere and an intensified water a widespread decrease in snow depth 255; Salzer and Kipfmueller 2005, pp. cycle are likely to mean not only a and earlier snowmelt in the Rocky 465–487; Millar et al. 2006, pp. 273– greater likelihood of drought for the Mountains (Clow et al. 2012, 2583– 287; Ababneh 2008, pp. 59–78; Bonfils Southwest, but also an increased risk of 2591; Pederson et al. 2013, 1811–1816). et al. 2008, pp. 6404–6424; Stevens et flooding (Karl et al. 2009, pp. 132–133; Assessments for the Sonoran Desert al. 2008, pp. 1–15; Salzer et al. 2009, pp. Dominguez et al. 2012, pp. 1–7). are few, but the region is also expected 20348–20353; Woodhouse et al. 2010, Precipitation patterns are already to warm (Weiss and Overpeck 2005, pp. pp. 21283–21288; Hoerling et al. 2012, observed to be shifting in the 2065–2077; National Park Service 2010, pp. 74–92). The decade 2001–2010 was Southwest, with more rain falling in pp. 1–4; Munson et al. 2012, pp. 1083– the warmest in the 110-year heavy downpours that can lead to 1095). Since about the 1970s, the instrumental record, with temperatures flooding (Karl et al. 2009, p. 133). Sonoran Desert region appears to have almost 2 °F higher than historic Adding to flood risk is that the earlier experienced ‘‘widespread warming averages, with fewer cold snaps and streamflow from earlier snowmelt may trends in winter and spring, decreased more heat waves (Hoerling et al. 2012, impinge on the flood protection stages frequency of freezing temperatures, pp. 74–92). Compared to temperature, of reservoir operations so that less lengthening of the freeze-free season, precipitation trends vary considerably streamflow can be captured safely in and increased minimum temperatures across the region, with portions key reservoirs, increasing spring per winter year’’ (Weiss and Overpeck experiencing both decreases and flooding downstream (Smith et al. 2005, 2005, p. 2065). The Sonoran Desert area increases (Hoerling et al. 2012, pp. 74– p. 1154; Karl et al. 2009, p. 133). In is expected to warm faster and 92). There is mounting evidence that the some sites, where natural floodplain experience reduced annual combination of human-caused dynamics allow for overbank flooding, precipitation, resulting in a reduction in temperature increases and recent this could result in a positive soil moisture in an already dry drought has influenced widespread tree regenerating effect on habitat for the environment. The area will also mortality (Van Mantgem et al. 2009, pp. western yellow-billed cuckoo. However, experience increases in the intensity of 521–524; Allen et al. 2010, pp. 660– where floodplains have been heat waves, decreases in the frequency 684), increased fire occurrence and area constrained, as in many areas of the of freezing temperatures, and burned (Westerling et al. 2006, pp. 940– range, such changes in hydrology could lengthening of the freeze-free season. 943), and forest insect outbreaks (Bentz excessively scour remaining habitat, Munson et al. (2012) stated that et al. 2010, pp. 602–613). Human- thus preventing their reestablishment ‘‘Climate models and long-term trends caused temperature increases and and resulting in smaller patch size or predict increased variability in drought have also caused earlier spring loss of habitat for the western yellow- precipitation seasonality, with fewer, snowmelt and shifted runoff to earlier in billed cuckoo. Long drought cycles larger, and more intense precipitation the year (Barnett et al. 2008, pp. 1080– could also hamper recruitment of events’’ (Munson et al. 2012, pp. 1083– 1083). riparian vegetation following scouring 1095). Other researchers have also There are three predictions for floods and lead to reduced cover and concluded similar climactic changes for anticipated effects from climate change nest sites for the western yellow-billed the area (Easterling et al. 2000, pp. in the southwestern United States and cuckoo. 2068–2074; Weiss and Overpeck 2005, parts of northwestern Mexico. First, Exactly how climate change will pp. 2065–2077; Seager et al. 2007, pp. climate change is expected to shorten affect precipitation from site to site 1181–1184). periods of snowpack accumulation, as within the range of the western yellow- In California, regional downscaled well as reduce snowpack levels. With billed cuckoo in the southwestern climate change assessments (Point gradually increasing temperatures and United States and northwestern Mexico Reyes Bird Observatory (PRBO) reduced snowpack (due to higher spring is uncertain. However, consistent with Conservation Science 2011, pp. 1–68) temperatures and reduced winter-spring recent observations of regional effects of indicate changes in precipitation and precipitation), annual runoff will be climate change, the projections temperature of varying magnitude reduced (Smith et al. 2003, p. 226; Ellis presented for the Southwest predict across ecoregions. Assessments for areas et al. 2010, p. 236), consequently overall warmer, drier, and more occupied by the western yellow-billed reducing ground water recharge. drought-like conditions (Hoerling and cuckoo, such as the Sacramento River, Second, snowmelt is expected to occur Eischeid 2007, p. 19; Seager et al. 2007, Sierra Nevada (southern), and Sonora earlier in the season because increased p. 1181; Ellis et al. 2010, p. 243). For Desert (lower Colorado River) (PRBO minimum winter and spring example, climate simulations of the Conservation Science 2011, pp. 25, 28, temperatures could melt snowpacks Palmer Drought Severity Index (a 48), mostly indicate an overall reduction sooner, causing peak water flows to calculation of the cumulative effects of in precipitation and increase in average occur much sooner than the historical precipitation and temperature on temperature, which can alter hydrology spring and summer peak flows (Smith et surface moisture balance) for the and negatively affect habitat for the al. 2003, p. 226; Stewart et al. 2005, pp. Southwest for the periods of 2006 to western yellow-billed cuckoo, as

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described previously. Furthermore, disruption of the timing between a resulting runoff is projected to increase Gardali et al. (2012, pp. 8–10) ranked species and its food resources (Visser in the Amazon River, implying more 358 avian taxa in California, and and Both 2005, pp. 2561–2569). For floods in the wet season and droughts classified 128 as vulnerable to climate example, changes in precipitation or in the dry season (Kitoh et al. 2011, p. change. They ranked the western temperature may influence the peak 1). Uncertainty exists regarding the yellow-billed cuckoo as subject to a timing of insect emergence or timing of specific effects of such changes on the moderate level of climate vulnerability, the western yellow-billed cuckoo’s wintering habitat of the western yellow- owing in part to its specialization in arrival from its wintering grounds so billed cuckoo. habitat (riparian) that has already that the nesting season does not In summary, the available climate experienced significant loss or coincide as closely with peak insect change models are predicting altered alteration. Of the 128 species that were abundance (Anders and Post 2006, p. future environmental conditions across rated vulnerable, only 48 were rated as 225). This change in timing could result the breeding range of the western having high or moderate climate in reduced food availability for the yellow-billed cuckoo. In the vulnerability. western yellow-billed cuckoo and southwestern United States, northern Regionally downscaled climate breeding success, possibly causing Mexico, California, Intermountain West, models for the Pacific Northwest project further population decline and and Pacific Northwest, climate change is higher air temperatures in the next curtailment of its occupied range. generally predicted to result in an century (Littell et al. 2009, pp. 6–7) that Virtually all future climate scenarios overall warmer, drier climate, with will lead to lower soil moisture and for the Pacific Northwest predict periodic episodic precipitation events increased evaporation from streams and increases in wildfire in western North that, depending on site conditions, are lakes (Climate Leadership Initiative America, especially east of the expected to have adverse effects on (CLI) and the National Center for Cascades, due to higher summer habitat of the western yellow-billed Conservation Science and Policy 2009, temperatures, earlier spring snowmelt, cuckoo. In rivers that depend on p. 8). While high uncertainty exists in and lower summer flows, which can snowmelt, these changes are expected to the total precipitation projections for the lead to drought stress in trees (Littell et result in more winter flooding and region (Littell et al. 2009, p. 1), effective al. 2009, p. 14). These effects could reduced summer stream flows. The precipitation (precipitation that result in both short-term and long-term amount of surface ground water contributes to runoff) may be reduced loss of riparian habitat from excessive available to regenerate and sustain significantly even if there is no decline winter scouring, summer drying, and riparian forests is expected to decline in total precipitation (CLI and the wildfire. Regional downscaled climate overall with persistent drought, favor National Center for Conservation change models for the Intermountain the spread of tamarisk and other Science and Policy 2009, p. 8). Increases West also provide similar projections for nonnative vegetation, and increase fire in extreme high precipitation falling as warmer, drier climate with a reduced frequency. Precipitation events under rain in the western Cascades and snowpack and episodic precipitation most climate change scenarios will reductions in snowpack are key events. Prolonged drought in the decrease in frequency and increase in projections from high-resolution southwestern United States and severity. This change may reduce regional climate models (Littell et al. northern Mexico is expected to increase available nesting sites, patch size, and 2009, p. 1). These may result in more fire frequency, which results in a short- affect prey abundance as a result of winter flooding and reduced summer term loss of patches of riparian or thorn lower humidity in riparian areas from streamflows in rivers that depend on forest habitat for breeding. When fire reduced moisture retention, and through snowmelt, which include many of the frequency increases, riparian and thorn periods of prolonged desiccation rivers in the Pacific Northwest. forests do not have sufficient time to followed by scouring flood events. In In drier climates overall, there will be recover, resulting in habitat conversion addition, evidence shows that climate increases in riverine system to fire-adapted nonforested vegetation change may disrupt the synchrony of temperatures that are predicted to result types unsuitable for nesting. nesting western yellow-billed cuckoos in periods of prolonged low flows and Furthermore, the effects of climate and their food supply, causing further stream drying (Stromberg et al. 2013, change and ongoing reduction in habitat population decline and curtailment of pp. 411–415) and increased demand for and patch fragmentation, discussed its occupied range. water storage and conveyance systems previously, would increase. Impacts to habitat from climate (Stromberg et al. 2013, pp. 411–415). Little is known about the wintering change exacerbate impacts from Warmer water temperatures across habitat of the western yellow-billed impoundments, channelization, and temperate regions are likely to increase cuckoo in South America, and alteration of river flows across the the density and expand distribution of uncertainty exists about how climate western United States and Mexico, and tamarisk because it has a higher change will affect it there. Regional from conversion of habitat from native tolerance for drought and salt than downscaled models project an increase to mostly nonnative vegetation. native cottonwoods and willows (Glenn in wet-season precipitation and a Changing climate is expected to place and Nagler 2005, p. 439). This situation decrease in dry-season precipitation an added stress on the species and its is expected to lead to the conversion of over most of South America (Kitoh et al. habitats. While we do not have evidence native and mixed (native and nonnative) 2011, p. 1). In the future, precipitation to suggest that the habitat of the western riparian habitat to monotypic stands of intensity will increase over most of yellow-billed cuckoo is being tamarisk, which provides very little or South America. In particular, substantially affected by climate change no suitable breeding habitat for the precipitation intensity will be greatest at this time, we expect long-term western yellow-billed cuckoo (as over southeast South America, implying climate trends to have an overall described previously above). an increasing risk of flooding in this negative effect on the available habitat Increased drought is expected to region (Kitoh et al. 2011, p. 1). At the throughout the breeding range of the adversely affect food availability for same time, a large increase of western yellow-billed cuckoo. western yellow-billed cuckoos (Newton consecutive dry days is projected over Moreover, a drying trend associated 1980, pp. 11–12; Durst 2004, pp. 40–41; the western part of the Amazon, where with global climate change may result in Scott et al. 2004, p. 70) through the extremes in seasonal precipitation and more dams, levees, or other activities to

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ensure fresh water for human stressors to continue to affect habitat of scientific, or educational purposes. Our consumption, which may result in the western yellow-billed cuckoo into review of the best available scientific additional habitat loss from the the future. The amount of time required and commercial information yielded activities described in the Habitat Loss for willow and cottonwood vegetation to nothing to indicate that overutilization from Dams and Alteration of Hydrology mature and provide habitat for the for commercial, recreational, scientific, section, above. western yellow-billed cuckoo under or educational purposes is occurring at optimal hydrologic, environmental, and this time or is likely to in the near future Summary of Factor A ecological conditions varies by location in any portion of the western yellow- We have identified a number of but may be as little as between 3 to 5 billed cuckoo range. We, therefore, threats to the habitat of the western years (Golet et al. 2008, pp. 20–22). conclude that such overutilization does yellow-billed cuckoo that have operated However, other vegetation used by the not currently constitute a threat to the in the past, are impacting the species western yellow-billed cuckoo such as western yellow-billed cuckoo, nor do now, and will continue to impact the alder, walnut, sycamore, boxelder, ash, we expect it to be a threat in the future. species in the future. The curtailment or mesquite would take several decades C. Disease or Predation and decline in the habitat of the western for habitat to mature to the point where yellow-billed cuckoo is primarily the it would be available for use (Strahan Little is known about diseases in the result of the long-lasting effects of 1984, pp. 58–67; Opperman and western yellow-billed cuckoo. West Nile habitat loss from manmade features that Merenlender 2004, pp. 822–834; virus has recently spread throughout alter watercourse hydrology so that the Trowbridge et al. 2004, pp. 157–164; portions of the western United States. It natural processes that sustained riparian Morris et al. 2006, pp. 106–116; Griggs poses a potential threat to many bird habitat in western North America are 2009, p. 12). In areas where conditions species. The U.S. Geological Survey’s greatly diminished. Loss and are less than optimal (as is the current (USGS) National Wildlife Health Center degradation of habitat has also occurred situation in most areas) it may take has identified the yellow-billed cuckoo as a result of livestock overgrazing and longer if at all (Briggs 1995, pp. 63–67). as a species that is subject to the effects encroachment from agriculture. All of The exact timeframe for resolving of West Nile virus (USGS–National these have the potential to promote, and water management and delivery issues Wildlife Health Center 2005, p. 2). The are exacerbated by, the conversion of and their impact on the western yellow- Centers for Disease Control’s (CDC) native habitat to predominantly billed cuckoo and its habitat would vary Vector-Borne Disease Web site reports nonnative vegetation. The curtailment, on the location, resource demands, that West Nile virus has been degradation, fragmentation, and loss of sensitive habitat or species concerns, documented in a dead yellow-billed habitat for the western yellow-billed stakeholders, and amount of water cuckoo (CDC 2012); however, it is cuckoo is ongoing and, absent changes available. As a result, we would expect unknown if this yellow-billed cuckoo in the landscape, hydrology, or other that resolving water issues for the was from the western DPS. Although the factors, it will likely continue to be various uses (agriculture, urbanization, population of the western yellow-billed negatively impacted or lost into the wildlife, and tribal interests) in the west cuckoo has been in decline over several future. will be a lengthy ongoing process and decades (see Historical and Current We recognize that climate change is a not be resolved in the near future (next Status section, above), no evidence critical issue with potentially severe 20 years) and may take substantially suggests that it has undergone a wide-ranging effects on the species and longer considering the increased precipitous decline coincident with the its habitat. The available scientific demands and the effects of climate relatively recent arrival of West Nile literature suggests that the effects of change. virus in western North America. climate change will likely exacerbate Our review of the best available Therefore, we conclude, based on the multiple existing threats to the western scientific and commercial information best available scientific and commercial yellow-billed cuckoo and its habitat. identified numerous activities or information, which is limited, that the These threats include habitat loss and processes that threaten to destroy, adverse effects of West Nile virus to the degradation from altered hydrology, modify, or curtail the western yellow- western yellow-billed cuckoo are not with secondary effects from increases in billed cuckoo’s habitat or range now or significant and do not constitute a threat nonnative vegetation and wildfire. are likely to in the near future in any at this time, nor is there any information These threats may result in smaller portion of the western yellow-billed to suggest that this situation will change patch sizes of habitat such that many cuckoo range. These include habitat loss into the future. will be no longer occupied by the from reservoirs and water management, All bird species, including the yellow- western yellow-billed cuckoo. surface and groundwater diversion, billed cuckoo, are exposed, to some Conservation actions, such as habitat flood control activities, gravel mining, extent, to parasites. Greiner et al. (1975, protection and restoration described agriculture, livestock grazing, invasive pp. 1762–1787) found 5 of 16 yellow- above, have strong potential to be nonnative plants and their control, and billed cuckoos infected with beneficial to the species by increasing climate change. We, therefore, conclude Leucocytozoon, Trypanosoma, and the amount of available habitat and that habitat loss under Factor A microfilaria blood parasites. No patch size. However, these efforts offset currently constitutes a threat to the information indicates whether these and only a small portion of past losses and western yellow-billed cuckoo, and we other parasites (see Hughes 1999, p. 18, degradation of riparian habitat in the expect these activities to continue and for a brief review) pose any threat to the range of the western yellow-billed habitat loss to be a threat in the near western yellow-billed cuckoo. cuckoo. Habitat elsewhere in the range future. Predation is a potential threat to the continues to be vulnerable to loss and western yellow-billed cuckoo. On the degradation from ongoing alterations in B. Overutilization for Commercial, Kern River, red-shouldered hawks hydrology, nonnative vegetation, and Recreational, Scientific, or Educational (Buteo lineatus) and northern harriers agricultural activities combined with Purposes (Circus cyaneus) have been observed additional or synergistic effects There are no known threats to the preying on nestlings, and western associated with climate change. western yellow-billed cuckoo resulting yellow-billed cuckoos have been Moreover, we expect these multiple from overutilization for commercial, observed chasing western scrub-jays

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(Aphelocoma californica) and rates than other open-cup nesting birds cuckoo is primarily the result of the loggerhead shrikes (Lanius (Laymon et al. 1997, p. 11). long-lasting effects of habitat loss and ludovicianus) away from their nests In summary, western yellow-billed modification from altered hydrology (Laymon 1998, pp. 12–14); however, we cuckoos, particularly the eggs or young resulting from decades of dam do not have any information on the in nests, are vulnerable to predation. construction, channelization, water frequency of predation. An inverse Predation may be a significant threat in extraction, and other activities, as well relationship appears to exist between some localities and in some years, and as impacts associated with climate the presence of western yellow-billed may be influenced by several factors, change. Other threats include loss of cuckoos and western scrub-jays on the such as surrounding land use and size habitat to agricultural and other land Sacramento River, indicating a possible and complexity of riparian habitat. As a uses, overgrazing, exposure to pesticides aversion by the western yellow-billed result, predation may act periodically in (which is addressed in Factor E, below), cuckoos to nesting at sites occupied by concert with other stressors that wildfire, and conversion of habitat to western scrub-jays, a known predator of contribute to the decline of the species monotypic stands of nonnative eggs and young (Halterman 1991, p. 38). (which we discuss in greater detail vegetation. Under this factor, we discuss Avian predators such as the Cooper’s under Factor E, below). However, we whether the existing regulatory hawks (Accipiter cooperii) or other conclude that predation by itself does mechanisms adequately address impacts similarly sized avian predators are not pose a significant threat to the to the western yellow-billed cuckoo thought to be the only avian predator western yellow-billed cuckoo at this described under Factors A and E, based capable of taking adult western yellow- time, and we do not have any reason to on the best available information. believe that this situation will change billed cuckoos (Laymon 1998, pp. 12– Federal Regulatory Mechanisms 13). During migration, adult western substantially in the future. yellow-billed cuckoo are susceptible to We conclude that predation, parasites, In the United States, the Migratory predation by raptors, such as the and disease are not currently significant Bird Treaty Act (MBTA) (16 U.S.C. Sec. Aplomado falcons (Falco femoralis) threats to the western yellow-billed 703–712) is the only current Federal (Hector 1985, p. 338); however, we have cuckoo, and are not expected to become protection provided for the yellow- no information to suggest that the rate significant threats in the near future. billed cuckoo. The yellow-billed cuckoo (the entire taxonomically defined of adult predation is significantly D. The Inadequacy of Existing species), which includes the western affecting the western yellow-billed Regulatory Mechanisms yellow-billed cuckoo, is considered a cuckoo population. In the Sonoran town Under this factor, we examine ‘‘migratory bird’’ under the MBTA. The of Alamos, Mexico, Mackay (David whether existing regulatory mechanisms MBTA prohibits ‘‘take’’ of any migratory Mackay 2012, in litt.) witnessed a brown are inadequate to address the threats to bird. Take is defined as: ‘‘to pursue, vine snake (Oxybelis aeneus) leaving a the western yellow-billed cuckoo hunt, shoot, wound, kill, trap, capture, western yellow-billed cuckoo nest after discussed under other factors. We give or collect, or attempt to pursue, hunt, eating one of four nestlings. strongest weight to statutes and their shoot, wound, kill, trap, capture, or On the lower Colorado River, McNeil implementing regulations, and collect.’’ However, no provisions in the et al. (2011, p. 41) found that high nest management direction that stems from MBTA prevent habitat destruction predation rates (63 percent of nests those laws and regulations. They are unless direct mortality or destruction of failed) contributed to the much lower nondiscretionary and enforceable, and active nests occurs. average nest productivity at restoration are considered a regulatory mechanism The Federal Land Policy and sites (1.25 young fledged per nest) under this analysis. Examples include Management Act of 1976 (FLPMA) (43 compared to nests at the Bill Williams State governmental actions enforced U.S.C. 1701 et seq.) requires that ‘‘the River NWR (2.14 young fledged per under a State statute or constitution, or public lands be managed in a manner nest). Most of that predation was Federal action under statute. that will protect the quality of scientific, attributed to avian predators; however, Some other programs are more scenic, historical, ecological, for 2 consecutive years a nest was voluntary in nature or dependent on environmental, air and atmospheric, preyed upon by a California king snake available funding; in those cases, we water resource, and archeological (Lampropeltis getula californiae) analyze the specific facts for that effort values; that . . . will preserve and (McNeil et al. 2011, p. 41; McNeil et al. to ascertain its effectiveness at protect certain public lands in their 2012, p. 50). Nest predation may have mitigating the threat and the extent to natural condition; (and) that will been high in restoration sites because which it can be relied on in the future. provide food and habitat for fish and most were located adjacent to Having evaluated the significance of the wildlife. . . .’’ Furthermore, it is the agricultural areas, which may have threat as mitigated by any such policy of the Bureau of Land increased the exposure of nests to conservation efforts, we analyze under Management (BLM) ‘‘to manage habitat human-adapted avian predators that Factor D the extent to which existing with emphasis on ecosystems to ensure thrive in agricultural areas. regulatory mechanisms adequately self-sustaining populations and a Additionally, these sites did not yet address the specific threats to the natural abundance and diversity of have the height, structure, and species. Regulatory mechanisms, if they wildlife, fish, and plant resources on composition of more complex riparian exist, may preclude the need for listing public lands’’ (BLM manual 6500.06). habitats (McNeil et al. 2011, pp. 41, 49; if we determine that such mechanisms Similarly, the National Forest McNeil et al. 2012, p. 56) that may serve adequately address the threats to the Management Act of 1976 (NFMA) to hide nests from predators. Nest species such that listing is not directs that the National Forest System predation can be partially compensated warranted. ‘‘where appropriate and to the extent by the ability of western yellow-billed We have identified a number of practicable, will preserve and enhance cuckoos to renest when a nest fails. In significant threats to the western the diversity of plant and animal general, despite the instances of nest yellow-billed cuckoo that are impacting communities.’’ Additionally, section predation listed above, western yellow- the species now and will continue to 219.12(g) calls for the maintenance of billed cuckoos have higher than normal impact the species in the future. The viable populations of native vertebrates nest success and lower nest predation decline of the western yellow-billed in national forests. As such, FLPMA and

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NFMA have the potential to benefit the changed, and riparian vegetation such as the western yellow-billed western yellow-billed cuckoo and its removed. As a result, these former cuckoo. Implementation of these habitat. However, given that the BLM floodplains, which in some cases would recommendations by FERC, USACE, and USFS have discretion in how these be important to protect and restore as and Reclamation is discretionary for statutes are carried out and measures are habitat for the western yellow-billed nonlisted species. We continue to see implemented, we continue to see cuckoo, fall outside the jurisdiction of loss and degradation of habitat for the continued loss and degradation of the USACE. Additionally, many actions western yellow-billed cuckoo as a result habitat for the western yellow-billed that resulted in adverse hydrological of altered hydrology from operation of cuckoo on lands that these agencies modifications, such as channelization dams and other water supply projects, manage. and levees, were implemented in as described under Factor A. Congress passed the Federal Water compliance with the CWA. The EPA is responsible for regulating Pollution Control Act Amendments of The National Environmental Policy pesticides under the Federal Insecticide, 1972 and the Clean Water Act (CWA) of Act (NEPA) (42 U.S.C. 4321 et seq.) Fungicide, and Rodenticide Act and the 1977 (33 U.S.C. 1251 et seq.) to provide requires all Federal agencies to formally Food Quality Protection Act. Before a for the restoration and maintenance of document, consider, and publicly pesticide can be distributed, sold, and the chemical, physical, and biological disclose the environmental impacts of used in the United States, it must first integrity of the Nation’s lakes, streams, major Federal actions and management go through a registration process and coastal waters. Primary authority decisions that have significant effects on through the EPA. The EPA conducts for the implementation and enforcement the human environment (including short- and long-term toxicity tests to of the CWA now rests with the U.S. natural resources); however, NEPA does evaluate potential adverse effects on Environmental Protection Agency (EPA) not require that mitigation alternatives humans, wildlife, fish, and plants, and, to a lesser extent, the USACE. In be implemented. Additionally, NEPA including endangered species and addition to the measures authorized applies only to actions by Federal nontarget organisms, and evaluates the before 1972, the CWA implements a agencies, so private landowners are not potential for possible contamination of variety of programs, including Federal required to comply with NEPA unless a surface water or ground water from effluent limitations and State water Federal agency is involved through leaching, runoff, and spray drift. The quality standards, permits for the provision of Federal funding or a sensitivity of any life stages of the discharge of pollutants and dredged and Federal permit. western yellow-billed cuckoo or its prey fill materials into navigable waters, and Through the Fish and Wildlife items to exposure from common enforcement mechanisms. Section 404 Coordination Act (FWCA) (16 U.S.C. agricultural pesticides that could leach, of the CWA is the principal Federal 661 et seq.), the Service may runoff, or migrate from agricultural program that regulates activities recommend discretionary conservation areas into the habitat of the western affecting the physical integrity of measures to avoid, minimize, and offset yellow-billed cuckoo has not been wetlands and other waters of the United impacts to fish and wildlife resources tested. However the EPA does evaluate States. resulting from Federal projects and the effects of these factors on surrogate Section 404 prohibits the discharge of water development projects authorized species and has determined the use of dredged or fill material in jurisdictional by the USACE and other Federal certain approved pesticides are waters of the United States, unless agencies such as Reclamation. appropriate in areas used by the western permitted by USACE under section Therefore, the FWCA may provide some yellow-billed cuckoo. Even if approved 404(a) (individual permits) or 404(e) protection for the western yellow-billed application procedures are followed, (general permits), or unless the cuckoo and its habitat through pesticides could reduce available insect discharge is otherwise exempt from avoidance and minimization measures prey for the western yellow-billed regulation as designated in section that may be incorporated into Federal cuckoos. 404(r). Some areas of riparian habitat projects. However, these measures are may be considered ‘‘waters of the discretionary. State Regulatory Mechanisms United States,’’ but many areas of A majority of dams in the western The majority of occupied areas for the riparian habitat do not meet the term’s United States supply hydropower, and western yellow-billed cuckoo north of strict definition. The Service can review their construction and ongoing Mexico occur within California, permit applications and provide operation is authorized by the Federal Arizona, and New Mexico (Hughes recommendations to the USACE to Energy Regulatory Commission (FERC), 1999, p. 1). Only California classifies the avoid and minimize impacts and to under the Federal Power Act of 1920, western yellow-billed cuckoo as implement conservation measures for which incorporates by reference the endangered (CDFW 2011, p. 10). The fish and wildlife resources, including FWCA and NEPA. The remainder of California Endangered Species Act the western yellow-billed cuckoo. hydropower in the western United (CESA) prohibits unpermitted However, incorporation of Service States is largely produced by the USACE possession, purchase, sale, or take of recommendations into section 404 and Reclamation. Reclamation also listed species. However, the CESA permits is at the discretion of the oversees water diversion and delivery definition of take does not include USACE. projects. FERC reconsiders its harm, which under the Federal Act can Furthermore, not all activities in hydropower licenses every 30 to 50 include destruction of habitat that wetlands or streams involve fill, and not years. Through the various Federal actually kills or injures wildlife by all wetlands or streams fall under the regulations under which these agencies significantly impairing essential jurisdiction of the USACE. For example, implement their water projects, the behavioral patterns (50 CFR 17.3). CESA in areas where the historical floodplain Service has an opportunity to does require consultation between the has been cut off from the river by levees, periodically review their permits and CDFW and other State agencies to determining the boundaries of wetlands relicensing applications and provide its ensure that their activities will not subject to USACE jurisdiction becomes recommendations to avoid and jeopardize the continued existence of complex. The areas behind these levees minimize impacts, and implement State-listed species; however, the have had their hydrological conservation measures for fish and western yellow-billed cuckoo continues characteristics altered, soil conditions wildlife resources, including species to decline in California despite its status

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as a State-listed species. In Arizona, the under Idaho State law, is considered a Canadian, Mexican, and Other western yellow-billed cuckoo is listed as protected nongame species. It is illegal International Laws a species of concern (Arizona Game and to intentionally take or possess a Canada Fish Department 2002, p. 3), with no protected nongame species, except as protective status. The western yellow- provided in sections 36–106(e) and 36– The Canadian Government through the Department of the Environment billed cuckoo has no special protective 1107, Idaho Code, by Commission rule, (Environment Canada, which was first status in New Mexico. or the Idaho Administrative Procedures established by the Department of the The State of California has an Act 13.01.10, ‘‘Rules Governing the additional layer of pesticide regulation Environment Act of 1971) administers Importation, Possession, Release, Sale, numerous acts to preserve and enhance through the Department of Pesticide or Salvage of Wildlife,’’ subsection Regulation, whose mission is to protect the quality of Canada’s natural 100.06.b (Idaho Department of Fish and human health and the environment by environment. Acts identified for Game 2005, Appendix B, p. 5). While regulating pesticide sales and use. conservation of wildlife and plant While concentrating on human health protected status extends certain species or their habitat are identified and exposure to pesticides, the agency protections to the western yellow-billed below. has a program (Endangered Species cuckoo in Idaho, neither this status nor 1916 Great Britain–United States Project) that maps sites occupied by the Species of Greatest Conservation Convention for the Protection of federally listed species and candidate Need designation protects its habitat. Migratory Birds. Canada has committed species and evaluates pesticide In Nevada, the western yellow-billed to migratory bird protection through the exposure risks to the species at those cuckoo is identified as critically 1916 Great Britain–United States sites. This project does not include imperiled due to extreme rarity, Convention for the Protection of Migratory Birds in Canada, which species like the western yellow-billed imminent threats, or biological factors, encourages voluntary cooperative cuckoo that are listed as endangered by but this designation provides no actions to protect identified migratory the State but not the Federal protection for habitat. Western yellow- birds. The yellow-billed cuckoo is listed Government. In addition, the work was billed cuckoos have no State status in carried out in 1997 prior to the western under the 1916 Great Britain–United Oregon because it has not been States Convention for the Protection of yellow-billed cuckoo becoming a considered an active breeding species Federal candidate species. As a result Migratory Birds in Canada. In addition, since the 1940s (Oregon Department of Canada has enacted the Migratory Birds the western yellow-billed cuckoo has Fish and Wildlife 2005, p. 3). State not been included in the project. Convention Act of 1994 (MBCA). The Washington State’s Department of Wildlife Action Plans that include the MBCA is intended to ensure the Fish and Wildlife considers the western western yellow-billed cuckoo as a conservation of migratory bird yellow-billed cuckoo a candidate for species of conservation concern are: populations by regulating potentially listing. The State wildlife agencies in California, Washington, Arizona, harmful human activities. The Wyoming, Montana, Colorado, and Colorado, Montana, Idaho, New Mexico, implementing regulations of the MBCA Texas classify the western yellow-billed Utah, Texas, Nevada, and Wyoming. ban all activities that are harmful to cuckoo as a species of concern or a These plans identify conservation needs migratory birds, their eggs or their nests, sensitive species. In Utah, the Utah and actions for a broad range of species but does not protect habitat. Also, some Division of Wildlife Resources (UDWR) and habitats, but their implementation activities, such as hunting or scientific has designated the yellow-billed cuckoo is discretionary. collection, may be allowed with an as a State-sensitive species and the In summary, where the western appropriate permit. yellow-billed cuckoo has been a priority yellow-billed cuckoo is State-listed The Species at Risk Act of 2002. The for the State’s Native Terrestrial Wildlife (CA), a State candidate (WA), a species purpose of the Species at Risk Act Program since the late 1990’s. For of concern or sensitive species (AZ, ID, (SARA) is to prevent Canadian native wildlife and plant species, subspecies, example, in 2009, surveys for the WY, MT, CO, TX), or critically and distinct populations from becoming species were conducted on National imperiled (NV), these designations extirpated or extinct, to provide for the Park Service and adjacent lands at Cubs contain no protection for the western recovery of endangered or threatened Creek and Jones Hole in northeastern yellow-billed cuckoo from habitat species, and encourage the management Utah (Beason 2009, pp. 1–19). During modification or destruction, as these surveys no western yellow-billed of other species to prevent them from described under Factors A and E. cuckoos were detected on lands becoming at risk. SARA establishes the Existing State regulatory mechanisms managed by the National Park Service in Committee on the Status of Endangered are not specifically designed to protect Dinosaur National Monument or private Wildlife in Canada (COSEWIC) as an land in northwestern Colorado. the western yellow-billed cuckoo from independent body of experts However, suitable habitat is found habitat loss and degradation from responsible for assessing and identifying within Dinosaur National Monument. altered hydrology from upstream dams species at risk. SARA also, among other UDWR has implemented additional and surface water and ground water objectives, establishes: Prohibitions to survey and monitoring efforts over the diversions, encroachment into the protect listed Canadian threatened and past 2 years. This status allows for floodplain by agricultural and other endangered species and their critical enhanced attention for the species and development activities, bank habitat; requirements for use of the best potential voluntary conservation, but stabilization and levee construction and available knowledge on assessing the status provides no conservation maintenance activities, overgrazing, threats to and conservation for wildlife assurances or regulatory oversite. pesticide use on adjacent agricultural and plant species; and long- and short- The western yellow-billed cuckoo is lands, conversion of habitat to term objectives for development of identified as a Species of Greatest monotypic stands of nonnative recovery strategies and action plans. Conservation Need in Idaho’s vegetation, gravel mining, wildfire, The yellow-billed cuckoo is not Comprehensive Wildlife Conservation drought, and climate change across the identified as a species that is sensitive, Strategy (Idaho Department of Fish and range of the western yellow-billed threatened, or endangered under Game 2005, Appendix B, p. 7), and, cuckoo. Canadian law. Within the range of the

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western yellow-billed cuckoo, British lacked sound and comprehensive Lack of habitat protection for the Columbia considers the western yellow- management plans. By 2000, western yellow-billed cuckoo in billed cuckoo as an extirpated breeder, approximately 30 percent of new and northwestern Mexico also impacts the but that the species still does occur existing NPAs had developed western yellow-billed cuckoo in the within the Province (British Columbia management plans; however, under the United States because individuals are Conservation Data Centre, 2013). NPA model these plans lacked detailed known to make transitory movements Canadian Environmental Protection information, and in many cases could be up to several hundred miles between Act of 1999. The Canadian considered obsolete. NPA goals to the southwestern United States and Environmental Protection Act sets out promote sustainable natural resources northern Mexico within a single several guiding principles for are often unattainable because of breeding season (Sechrist et al. 2012, p. conserving the environment including conflicting land ownership interests 5), so that individuals that breed in the but not limited to supporting: (Valdez et al. 2006, p. 272). The United States also depend to some Sustainable development; pollution allocation of funds for management of extent on habitat in northern Mexico. prevention; elimination of releases of natural reserve areas in Sonora is not We are not aware of any information on substances that are persistent or that assured, and some reserves have not the number of western yellow-billed bioaccumulate; an ecosystem approach received protection other than that cuckoos that utilize habitats in both and using the precautionary principle given by government edicts or their countries during a given breeding on issues related to the environment; natural isolation (Burquez and season; however, these are also stopover science-based national standards; and Martinez-Yrizar 1997, p. 378). Urban areas between breeding and wintering seeking intergovernmental cooperation development has reduced some of grounds in South America, and are for consistency and avoidance of Sonora’s natural reserves. Three of the important as foraging habitat. Therefore, duplication of efforts. Because the reserves have already disappeared, lack of regulatory protections for habitat yellow-billed cuckoo is not considered reflecting the tenuous state of many of the western yellow-billed cuckoo in a species at risk, implementation of nature reserves in Mexico (Burquez and northwestern Mexico also affects environmental protection regulations Martinez-Yrizar 2007, p. 546). western yellow-billed cuckoos in the are optional for the species. Wildlife management units, or UMAs, southwestern United States. were part of a program developed and In regard to potential for pesticide Mexico implemented by SEMARANT in 1997 to exposure south of the U.S. border, The Mexican Government, through its promote wildlife management on Mexico has the second largest pesticide Secretaria de Medio Ambiente y private property in Mexico (Weber et al. sales in Latin America, behind Brazil, Recursos Naturales (SEMARNAT), has 2006, p. 1480). The UMA program has which together account for 78 percent of authority to designate species as not been effective in promoting wildlife the volume of pesticides within 11 Latin threatened or endangered. The western management or biodiversity American countries (Mora 1997, pp. 3– yellow-billed cuckoo is not listed by the conservation. It has increased the 4). While Mexico has laws concerning Mexican Government’s Official Mexican introduction of exotic wildlife species to pesticide use, and import regulations on Norm NOM–059–SEMARNAT–2010, meet hunting demands. There is a lack certain pesticides, there is limited Mexico’s threatened species law. The of technical capability on private lands enforcement capacity (Behre 2003, pp. yellow-billed cuckoo is listed under the to conduct proper wildlife monitoring 337–338). The same is true in Paraguay, 1936 Mexico–United States Convention and management (Weber et al. 2006, p. Bolivia, Brazil, and Argentina, where for the Protection of Migratory Birds and 1482). In Mexico, the exploitation of yellow-billed cuckoos winter. For Game Mammals (Service 2013b), which minerals and industrial development example, in Paraguay, at the center of encourages voluntary cooperative has not been matched by strong the yellow-billed cuckoo’s wintering actions to protect identified migratory measures to protect the environment range, importation and use of many birds and mammals. (Burquez and Martinez-Yrizar 2007, p. pesticides are banned, but it is In 1988, the Mexican Government 547). Surface water and ground water estimated that the amount of pesticides passed the General Law of Ecological management in Mexico is also lacking, that are imported illegally are double Equilibrium and Environmental and restoring water quality and quantity the amount that are imported legally Protection, which is similar to NEPA in to water bodies is a primary concern (Scribano 2013, entire). For additional the United States. This Mexican statute (Organisation for Economic Co- information on pesticides, see Factor E requires an environmental assessment of operation and Development (OECD) below. private or government actions that may 2013, p. 102). In the State of Sonora, 30 Based on the best available affect wildlife or their habitat. years of unregulated water extraction information, the regulatory mechanisms Currently, no known regulatory from both above and below ground has in Mexico that would protect the mechanisms or conservation planning resulted in serious water resource western yellow-billed cuckoo from are in place that specifically targets the overexploitation and degradation (OECD threats described under Factors A and E conservation of habitat within the range 2013, p. 115). Although regulatory are either lacking or not being fully of the western yellow-billed cuckoo in measures are in place, they lack implemented. These include water Mexico. Therefore, we anticipate consistent implementation and supply projects, water diversions, continued threats in Mexico, with little oversight (OECD 2013, p. 133). expansion of agricultural activities and or no protection to the western yellow- Current efforts for protecting the overgrazing, conversion of habitat to billed cuckoo. western yellow-billed cuckoo in Mexico nonnative vegetation, climate change The National Natural Protected Areas primarily consist of identifying areas as (Factor A), and pesticides, as well as the (NPAs) system is a Mexican program to Important Areas for Bird Conservation threat of small, isolated patches of protect sensitive habitats and species. (A´ reas de Importancia para la western yellow-billed cuckoo habitat NPA designation is supposed to protect Conservacio´n de las Aves), but no (Factor E). areas that have not been significantly specific projects or conservation efforts altered by human activities and that are focused on the western yellow-billed Summary of Factor D provide diverse ecosystem services. cuckoo or its habitat (Sa´nchez-Gonza´lez Various Federal, State, and However, prior to 1994, most NPAs and Berlanga 2012 in litt.). international regulatory mechanisms in

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place provide varying degrees of pp. 1–4; Thompson, 1961, pp. 294–315; riparian habitat along the Snake River, conservation oversight that may to some Wilcove et al. 1986, p. 237). The Idaho, in sites surrounded by upland degree address the threat of ongoing potential natural regeneration or natural vegetation than in habitat habitat loss and degradation resulting restoration of the habitat to reconnect adjacent to agricultural lands. Saab from altered hydrology, conversion of these areas is low due to various reasons found that, compared to habitat patches habitat to nonnative vegetation, climate (see Factor A discussion). Under the surrounded by natural habitat, patches change, agricultural activities (Factor best of circumstances, for riparian near agricultural lands supported more A), or exposure to pesticides and effects habitat (willows, cottonwoods) to avian nest predators that prosper in of small and isolated habitat patches mature to the point at which it provides human-altered landscapes and have a (Factor E). In California, where the for appropriate food, shelter, and greater effect on the smaller, fragmented species is listed as endangered, breeding conditions for the western habitats (Saab 1999, p. 147). Increases in regulations prohibit unpermitted yellow-billed cuckoo may take 3–5 years these predators can result in more nest possession, purchase, sale, or take of (Golet et al. 2008, pp. 20–22). However, losses and discourage western yellow- listed species. Such prohibition of take in areas where conditions are less than billed cuckoos from nesting, thus does not include the species’ habitat, optimal, habitat may take several suppressing local western yellow-billed and the western yellow-billed cuckoo decades to mature to the point where it cuckoo population size. Increases in continues to decline in California would be available for use (Strahan nonnative vegetation can displace or despite its status as a State-listed 1984, pp. 58–67; Briggs 1995, pp. 63–67; degrade suitable nesting and foraging species. In addition, even though the Opperman and Merenlender 2004, pp. habitat, thereby leading to lower California Department of Pesticide 822–834; Trowbridge et al. 2004, pp. utilization of such areas by western Regulations has a program to protect 157–164; Morris et al. 2006, pp. 106– yellow-billed cuckoos. Together, the endangered species, the western yellow- 116; Griggs 2009, p. 12). effects can lead to western yellow-billed billed cuckoo has not been included as As a result, the western yellow-billed cuckoos abandoning these small habitat a covered species. cuckoo now primarily occurs in smaller, patches. Because the yellow-billed cuckoo is more widely separated populations. The western yellow-billed cuckoo is not a protected or sensitive species in Compared to large populations, smaller currently found in the largest Canada, Mexico, or in a majority of the populations are disproportionately contiguous and least-fragmented United States, and a variety of factors affected by natural and manmade remaining habitat patches. For example, influence the species and its habitat, we factors. These stressors vary in in California, sites larger than 198 ac (80 have determined that the current frequency, timing, and magnitude across ha) in extent and wider than 950 ft (600 regulatory regime does not adequately the species’ range. They are related or m) provided optimal patch size for address the majority of impacts to the correlated to each other or act in western yellow-billed cuckoos (Laymon western yellow-billed cuckoo or its combination to result in significant and Halterman 1989, p. 275). Nesting habitat. As described under Factor A, impacts to the western yellow-billed western yellow-billed cuckoos are one of the primary threats with the cuckoo within all or portions of its sensitive to patch size and seldom use range. patches smaller than 325 × 975 ft (100 greatest severity and magnitude of × impact to western yellow-billed cuckoo One of the ramifications of smaller, 300 m) (Hughes 1999, p. 20). This is the loss of habitat as a result of altered more isolated habitat patches is that the observed preferential use of large hydrologic functioning of streams in the smaller the patch, the more edge it has patches strongly suggests that the in proportion to its area, which West. Although some protections western yellow-billed cuckoo is increases the percentage of the available currently exist for the species and its sensitive to fragmentation and habitat exposed to the surrounding land habitat as a result of existing regulatory reductions in habitat patch size. uses (Hunter 1996, pp. 186–187). This is mechanisms at the Federal, State, or Moreover, patch-size reduction a particularly prevalent characteristic of local level, our evaluation suggests these combined with the scarcity of larger the western yellow-billed cuckoo’s protections are inadequate to address patches keeps the western yellow-billed remaining disjunct habitat patches, as the threats associated with the species cuckoo breeding population size many patches are in proximity to depressed. Such effects prevent the and its habitat. agricultural and other human-altered western yellow-billed cuckoo from E. Other Natural or Manmade Factors landscapes. For example, such land use reversing its long-term decline in Affecting Its Continued Existence currently dominates much of the population and range (Hunter 1996, pp. riparian landscape within many regions, 179–187). Small and Widely Separated Habitat particularly along some reaches of the Moreover, isolated breeding sites Patches lower Colorado River, Sacramento separated by hundreds of miles of As described in the Background River, Snake River, Verde River, Gila nonhabitat also reduce the ease with section and under Factor A, the habitat River, Santa Cruz River, San Pedro which dispersing juvenile and returning of the western yellow-billed cuckoo has River, and Rı´o Grande; and also in parts adult western yellow-billed cuckoos are undergone significant loss and of northern Mexico in the vicinity of able to find these sites. This isolation modification within its occupied floodplain farming along the Sonora, may result in low colonization and breeding range as a result of widespread Magdalena, and Moctezuma Rivers reoccupation rates, so that otherwise multiple human-caused effects. These (Villasen˜ or-Gomez 2006, p. 111). suitable habitat remains unoccupied or include altered hydrology in Agricultural activities on adjacent occupied at low densities (Laymon and watercourses and past loss and lands affect riparian bird communities Halterman 1989, p. 274; Hunter 1996, p. degradation from agriculture. Past in ways that may result in lower 185). For example, the Sacramento River destruction and modification reproductive success, and possible still appears to have sufficient habitat to transformed formerly large expanses of abandonment of the patch, as reviewed maintain a self-sustaining population of riparian habitat into a number of smaller by Saab (1999, pp. 136, 147–148). Saab western yellow-billed cuckoos, as more patches of smaller total area, isolated (1999, p. 147) found that bird species, than 25,000 ac (10,117 ha) of riparian from each other by a matrix of mostly including the western yellow-billed and associated natural habitat has been human-altered habitats (McGill, 1975, cuckoo, were more likely to occur in protected and other sections are in the

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process of being restored. However, not or forest pest control, or from overspray 11–12) reported sublethal poisoning of all suitable patches are occupied or may or drift when the species’ foraging young western yellow-billed cuckoos only be occupied in very low densities, habitat is located next to agricultural caused by spraying active nests in and the western yellow-billed cuckoo fields. Pesticides can affect western walnut orchards in California. population remains much lower than its yellow-billed cuckoos foraging for Although DDT use has been banned potential (Dettling and Howell 2011, pp. grasshoppers at the field-forest interface in the United States since 1972, and in 20–21). or foraging for caterpillars in riparian Mexico since 1999, yellow-billed On the Colorado River (between Lake habitat adjacent to the sprayed fields. cuckoos may be exposed to DDT in Mead and the Mexico border), habitat Accumulation of chlorinated Mexico or on wintering grounds where restoration efforts are being hydrocarbon pesticides, particularly DDT is still used despite any bans on its implemented as a result of the Lower- dichlorodiphenyltrichloroethane (DDT), use. The soil half-life for DDT is from 2 Colorado River Multi-species has affected other bird species, to 15 years. However, in some cases, Conservation Plan (LCR MSCP). The particularly top predators (Robinson half of the DDT initially present will LCR MSCP permittees are in the process and Bolen 1989, pp. 269–275). remain for 20, 30, or more years (U.S. of creating and maintaining up to 4,050 Pesticides may affect behavior (for Department of Human Health & Human ac (1,639 ha) of western yellow-billed example, loss of balance) or cause death Services, Agency for Toxic Substances cuckoo habitat, reducing the risk of loss by direct contact. Pesticide use may and Disease Registry 1994, pp. 3–4). of created habitat to wildfire, replacing indirectly affect western yellow-billed For example, yellow-billed cuckoos created habitat affected by wildfire, and cuckoos by reducing prey numbers, or (most likely of the eastern population) avoiding and minimizing operational by poisoning nestlings if sprayed collected during the spring and fall and management impacts to western directly in areas where the birds are migration in Florida had unusually high yellow-billed cuckoos over the 50-year nesting (Laymon and Halterman 1987b, concentrations of DDT, suggesting life of the permit (2005 to 2055) (Lower p. 23; Lehman and Walker 2001, p. 12). exposure on the wintering grounds in Colorado River Multi-Species Western yellow-billed cuckoo prey South America (Grocki and Johnston Conservation Program 2004, pp. 5–30– populations were affected by aerial 1974, pp. 186–188). Analysis of two 5–36, Table 5–10, 5–58–5–60). Not all of spraying of larvicides for control of eggs collected in California in 1979 the habitat has been created, and as a mosquitoes at Caswell State Park in showed very low levels of result, the restoration sites are not California (Laymon 1998, p. 12) and in dichlorodiphenyldichloroethylene contiguous along the entire river reach. Colorado to control an outbreak of (DDE), a stable metabolite of DDT, but Monitoring and survey efforts for the caterpillars on box elders near Durango eggshell fragments collected in 1985 western yellow-billed cuckoo have (Colyer 2001, pp. 1–6). The available from three nests along the South Fork shown an increase in detections, but the evidence suggests that a reduction in Kern River in California averaged 19 majority of detections were confined to prey availability results in reduced percent thinner than pre-DDT era only a few of the larger areas (McNeil et nesting success (Laymon 1980, p. 27; eggshells (Laymon and Halterman al. 2011, pp. 1–16). Hughes 1999, pp. 19–20), and pairs may 1987b, pp. 22–23). DDT has caused In summary, despite efforts to protect even forgo breeding in years with eggshell thinning in other bird species, and restore riparian habitat along the inadequate food supplies (Veit and and this percentage of thinning in other Sacramento River and Colorado River Petersen 1993, pp. 258–259). Therefore, species has allowed eggs to be crushed and elsewhere in the range of the the application of pesticides directly during incubation, but there is no western yellow-billed cuckoo, these onto areas of riparian habitat may information showing that western efforts offset only a small fraction of indirectly affect the reproductive yellow-billed cuckoo eggs have been historical habitat that has been lost. success of the western yellow-billed crushed during incubation because of Therefore, the threats resulting from the cuckoo, leading to nest failure and shell thinning. species’ behavioral response to the lowered population size. Additionally, A recent study in southern Sonora, multiple, combined effects of small and because breeding site fidelity is in part Mexico, tested for the presence of a widely separated habitat patches dependent on previous successful group of agricultural pesticides banned exacerbate the effect of other threats nesting (see the Breeding Site Fidelity in the United States, known as within a large portion of the range of the section of the proposed rule), western organochlorine pesticides (beta- western yellow-billed cuckoo. yellow-billed cuckoos may abandon hexachlorocyclohexane (BHC), lindane, Moreover, because the threats that otherwise suitable nest sites where prey aldrin, endrin, b-endosulfan, create small and isolated patches are availability is limited by pesticide use, methoxychlor, p, p0–DDE, p, p0- ongoing (see Factor A) and maturation resulting in curtailment of its occupied Dichlorodiphenyldichloroethane (DDD), of regenerated or restored habitat may range. p, p0–DDT). Collectively called OCPs, take several decades to fully provide for Effects from overspray of pesticides these pesticides are persistent in the the needs of the species, we expect the are more pronounced in smaller patches environment. Soil samples collected effects of the species’ response to small next to agricultural fields (because they from 24 localities in the Yaqui and patch size to continue to adversely have more edges, which allows for Mayo Valleys of southern Sonora, impact the western yellow-billed increased chances of exposure), but the Mexico, watersheds in which the cuckoo into the future. effects of pesticides could also affect western yellow-billed cuckoo is known larger habitat patches as well. In many to breed, were found to have higher OCP Pesticides areas riparian habitat borders levels than other regions of the world. Exposure to pesticides may also be a agricultural lands, such as California’s The OCPs were predominantly DDT threat to western yellow-billed cuckoos Central Valley, the lower Colorado (Cantu-Soto et al. 2011, p. 559), despite because it negatively impacts River, Snake River, Gila River, Rı´o its having been discontinued in Mexico populations of insect prey (Groschupf Grande Valley, and rivers in northern in 1999 after decades of heavy use in 1987, p. 29; Hughes 1999, p. 2). The Mexico, including the Sonora, Yaqui, agriculture and for malaria control effects of pesticides on western yellow- Mayo, and Moctezuma, where western (Yan˜ ez et al. 2004, p. 18). This finding billed cuckoos can be from intentional yellow-billed cuckoos are vulnerable to may indicate recent applications of DDT aerial spraying of habitat for mosquito pesticide exposure. Laymon (1980, pp. in agricultural soils (Cantu-Soto et al.

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2011, p. 559). Because of the proximity locations where it may be particularly Species Conservation Plan. This habitat of habitat for western yellow-billed significant, or the extent to which conservation plan calls for the creation cuckoos to these valleys and the pesticides may be responsible for of 5,940 ac (2405 ha) of riparian habitat prevalence of floodplain agriculture in population-level effects in the western through active restoration of which northern Mexico, these pesticides, yellow-billed cuckoo. However, based 4,050 ac (1,640 ha) will be suitable for especially DDT, may be having on the close proximity of agricultural western yellow-billed cuckoos widespread long-lasting effects on the areas to where the western yellow-billed (Reclamation 2004, Sec. 5, p. 58). Active western yellow-billed cuckoo. These cuckoo breeds, the threat is potentially restoration work began on the South include direct and indirect exposure significant. Fork Kern River in California, in 1986. through ingestion of contaminated prey To date, 340 ac (138 ha) of riparian Collisions With Communication items, and reduction in prey availability habitat have been restored (Audubon Towers, Wind Turbines, Solar Power from direct exposure and pesticide California 2012, pp. 1–10). Along the Towers, and Other Tall Structures runoff into habitat that supports western Sacramento River, the Sacramento River yellow-billed cuckoos. Yellow-billed cuckoos are vulnerable National Wildlife Refuge has Neonicotinoid pesticides are systemic to collision with communication towers implemented an active riparian chemicals that are taken up through and other tall structures, particularly restoration program. Riparian habitat various plant parts and can be during their migration. For example, restoration activities have been distributed through a plant’s tissues. several hundred yellow-billed cuckoo conducted on 4,513 ac (1,826 ha) with These chemicals can be applied to a mortalities were documented at a single 2,400 ac (738 ha) slated for additional plant as a seed coating, soil contact, television tower in Florida over a 29- restoration (Hammond 2011, p. 14). In irrigation water, or as a foliar spray. year period (Crawford and Stevenson Utah, from 2008–2013, the State’s Many of these chemicals are long acting 1984, p. 199; Crawford and Engstrom Watershed Restoration Initiative (WRI) with half-lives up to 2 years. Plant 2001, p. 383), and at an airport has invested funding with partners tissues that have been treated are toxic ceilometer in the east (Howell et al. toward collaborative habitat to both sap-sucking (e.g., aphids and 1954, p. 212). Lesser numbers of yellow- enhancement efforts in lowland riparian true bugs) and foliage-eating insects billed cuckoos have been reported as habitats. The efforts were distributed (e.g., caterpillars, katydids, killed at other sites with both television across 35 different projects and totaled grasshoppers, and beetles). Many of towers and wind turbines in Wisconsin, more than 8,000 ac (3,200 ha). these foliage-eating insects are potential West Virginia, and northern Texas At present, restoration occurs on a prey of the western yellow-billed (Kemper 1996, p. 223; Schechter 2009, relatively small scale in comparison to cuckoo. These chemicals have the p. 1; Bird Watching 2011, p. 1), the need to reduce habitat fragmentation potential to reduce prey abundance if Although these mortalities were in the and increase the overall extent of intentionally or accidentally applied to eastern segment of the population, with suitable habitat. Future process-based foliage on which western yellow-billed the number of tall towers that have been restoration projects that restore natural cuckoos forage. To date no scientific constructed in recent years in the river hydrology show great promise for studies have been done on western western United States, the potential large-scale restoration of riparian habitat yellow-billed cuckoos and their prey, exists for collisions with the western for western yellow-billed cuckoos. but additional reports and research on yellow-billed cuckoo. Remains of a To date, conservation efforts, though these chemicals discuss the potential yellow-billed cuckoo along with 70 helpful, have been inadequate to adverse effects (Mineau and Whiteside other species of birds have been significantly reduce the effects of 2013; Hopwood et al. 2013; Mineau and recovered at the Ivanpah solar power natural or manmade factors affecting the Palmer 2013). tower facility (California) during its first western yellow-billed cuckoo. In summary, pesticide use is year of operation (Kagan et al. 2014, p. Summary of Factor E widespread in agricultural areas in the 10). Without further study, we western yellow-billed cuckoo breeding anticipate this to be a minor, but As noted in Factor A, habitat for the range in the United States and northern ongoing, effect to individual yellow- western yellow-billed cuckoo has been Mexico. Yellow-billed cuckoos have billed cuckoos, but in combination with modified and curtailed, resulting in been exposed to the effects of pesticides all the other effects to this species, as only remnants of formerly large tracts of on their wintering grounds, as described under Factors A and E, native riparian forests, many of which evidenced by DDT found in their eggs mortality from collision would have an are no longer occupied by western and eggshell thinning in the United additive effect to the threats facing the yellow-billed cuckoos. Despite recent States. Because much of the species’ western yellow-billed cuckoo. efforts to protect existing, and restore habitat is in proximity to agriculture, additional, riparian habitat in the Conservation Efforts To Reduce Other the potential exists for direct and Sacramento, Kern, and Colorado Rivers, indirect effects to a large portion of the Natural or Manmade Factors Affecting and other rivers in the range of the species in these areas through altered Its Continued Existence western yellow-billed cuckoo, these physiological functioning, prey Active and hydrological process- efforts offset only a small fraction of availability, and, therefore, reproductive based restoration of riparian habitat on historical habitat that has been lost. success, which ultimately results in the Colorado, Kern, and Sacramento Therefore, we expect the threat resulting lower population abundance and Rivers and elsewhere will help reduce from the combined effects associated curtailment of the occupied range. habitat fragmentation, small patch size, with small and widely separated habitat While agricultural pesticides can kill and overall lack of habitat. In some patches to continue to affect a large prey of the yellow-billed cuckoo, and restoration plans, reduction of portion of the range of the western documentation exists of pesticide fragmentation is a stated goal, and yellow-billed cuckoo. This threat is exposure in the wild, described above, restoration sites are planned for sites particularly persistent where small no known data are available to adjacent to existing habitat. The habitat patches are in proximity to determine specifically how often Colorado River riparian habitat human-altered landscapes, such as near agricultural chemicals may be affecting restoration work is just beginning and is agricultural fields that dominate the yellow-billed cuckoo prey availability, part of the Lower Colorado River Multi- landscape in many areas where the

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western yellow-billed cuckoo occurs. As (see also specific details under Factor the effectiveness of these regulatory a result, the potential exists for A). mechanisms is uncertain. pesticides to directly affect (poisoning Much of the available habitat is now These factors pose current and future individual cuckoos) and indirectly in small patches with only a relatively threats to the species because they are affect (reducing the prey base) a large few patches regularly occupied by ongoing and likely to continue in the portion of the species. These effects nesting western yellow-billed cuckoos. near future. could ultimately result in lower Thus, the species’ intolerance of small Determination population abundance and curtailment patch size in combination with of its occupied range. Mortality from extensive habitat loss has resulted in We have carefully assessed the best collisions with tall structures is also an much less suitable habitat and a greatly scientific and commercial data available ongoing but largely unquantified effect. reduced western yellow-billed cuckoo regarding the past, present, and reasonably anticipated future threats to population size. In areas at the edge of Cumulative Impacts the western yellow-billed cuckoo. In the western yellow-billed cuckoo’s assessing the status of the western Habitat loss and degradation occurs current range (e.g., the Sacramento yellow-billed cuckoo, we applied the throughout the range of the western River), restoration of riparian habitat has general understanding of ‘‘in danger of yellow-billed cuckoo (see Background not been accompanied by an increase in extinction’’ discussed in the December section and Factor A above), and many the species’ population indicating that 22, 2010, Memorandum to the polar of the threats under Factor A have other factors may be limiting the bear listing determination file, worked and are working in combination population in those areas. Moreover, to reduce the amount, configuration, ‘‘Supplemental Explanation for the large areas of suitable habitat are and quality of the riparian habitat that Legal Basis of the Department’s May 15, unlikely to naturally regenerate within remains. 2008, Determination of Threatened This array of Factor A threats, the range of the species into the future Status for the Polar Bear,’’ signed by working in combination, creates the because western yellow-billed cuckoos then Acting Director Dan Ashe (Service situation that then allows threats from need riparian habitat in a range of ages, 2010, pp. 1–18). Threats to the western the other listing factors to markedly including older, more structurally yellow-billed cuckoo exist for two of affect the species. These other-factor diverse areas for nesting, and nearly all five threat factors. Threats also occur in threats may not be significant in and of of the areas where riparian habitat could combination, resulting in synergistically themselves, but because they are not grow in western North America are greater effects. occurring in isolation they, in modified by dams, channelization, Factor A threats result from habitat combination, are contributing to the water extraction, and other activities destruction, modification, and population decline of the species. For that disrupt natural processes to allow degradation from dam construction and example, as discussed in the Small and good-quality riparian habitat to grow in operations, water diversions, riverflow Widely Separated Habitat Patches a mosaic of different ages (see Factor A). management; stream channelization and section of Factor E, above, small habitat Climate change is likely to further add stabilization; conversion to agricultural patches (resulting from the effects of to these impacts. uses, such as crops and livestock Factor A threats) are more likely to have Summary of Factors grazing; urban and transportation a larger number and a wider range of infrastructure; and increased incidence nest predators (see the Predation section The primary factors threatening the of wildfire. Continuing ramifications of of Factor C, above) because more nest western DPS of the yellow-billed cuckoo actions that caused habitat loss in the predators occur in ecological edges. are the loss and degradation of habitat past have resulted in ongoing Additionally, habitat patches near areas for the species from altered watercourse curtailment of the habitat of the western of agricultural or urban development hydrology and natural stream processes, yellow-billed cuckoo throughout its can foster higher densities of potential livestock overgrazing, encroachment range. These factors also contribute to nest predators. Thus, any western from agriculture, and conversion of fragmentation and promote conversion yellow-billed cuckoo nesting in a small native habitat to predominantly to nonnative plant species, particularly habitat patch near development may be nonnative vegetation as identified in tamarisk. The threats affecting western subject to higher levels of nest predation Factor A. Additional threats to the yellow-billed cuckoo habitat are and thus lower productivity. Moreover, species under Factor E include the ongoing and significant and have the mere presence of certain nest effects of climate change, pesticides, resulted in curtailment of the range of predators in a habitat patch may elicit wildfire, and small and widely the species. Loss of riparian habitat a behavioral response from western separated habitat patches. The leads not only to a direct reduction in yellow-billed cuckoos such that they do cumulative impact from various threats western yellow-billed cuckoo numbers not even attempt to nest in such habitat is also a factor that will exacerbate but also leaves a highly fragmented patches, even if other aspects of the multiple existing threats to the western landscape, which in combination with habitat would suggest that it is suitable yellow-billed cuckoo and its habitat. other threats (see below), can reduce for nesting. Various Federal, State, and breeding success through increased Similarly, riparian habitat patches international regulatory mechanisms in predation rates and barriers to dispersal that occur near urban and agricultural place provide varying degrees of by juvenile and adult western yellow- development may be subject to conservation oversight that may to some billed cuckoos. intentional or accidental pesticide degree address the threat of ongoing Factor E threats, including habitat spraying, as discussed in the Pesticide habitat loss and degradation; however, rarity and small and isolated population section under Factor E. This spraying because the yellow-billed cuckoo is not sizes, cause the remaining western would be unlikely to occur but for the a protected or sensitive species in a yellow-billed cuckoo populations to be habitat patch’s proximity to majority of the United States or in increasingly susceptible to further development. This development likely Canada and Mexico, the application of declines through lack of immigration, occurs close to the riparian habitat these regulatory mechanisms to reduced populations of prey species through a process similar to the conserve the western yellow-billed (food items), pesticides, and collisions generalized scenario described above cuckoo or its habitat is unknown and with tall vertical structures during

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migration. The serious and ongoing State or foreign nation, to protect such extinction from elevated or cumulative threat of small overall population size, species, whether by predator control, threats, is not yet restricted to a which is the result of other threats in protection of habitat and food supply, or critically small range or critically low combination, leads to an increased other conservation practices, within any numbers, and currently does not show chance of local extirpations. area under its jurisdiction, or on the any substantial reduction in numbers, it The threats that affect the western high seas.’’ Restoration of riparian would not meet the definition of yellow-billed cuckoo are important on a habitat on the Colorado, Kern, and ‘‘endangered’’ as determined by the Act. threat-by-threat basis, but are even more Sacramento Rivers and elsewhere will More appropriately, we find that the significant in combination. Habitat loss help reduce habitat fragmentation, small western yellow-billed cuckoo is likely to has been extensive throughout the range patch size, and overall lack of habitat. become endangered throughout all or a of the western yellow-billed cuckoo. However, at present, restoration is being significant portion of its range within The remaining riparian habitat is done on a relatively small scale in the foreseeable future, based on the fragmented into small patches, which comparison to the need to reduce timing, severity, and scope of the threats the species does not normally select as habitat fragmentation and increase the described above. Therefore, on the basis breeding habitat. Additionally, western overall extent of suitable habitat. DDT of the best available scientific and yellow-billed cuckoos need riparian has been banned in the United States for commercial information, we are listing habitat in a range of ages, including several decades, but use of DDT the western distinct population segment older structurally diverse areas for continues in Central and South of the yellow-billed cuckoo as a nesting. This diversity of tree ages America, thus potentially exposing threatened species in accordance with within the riparian vegetation (western western yellow-billed cuckoos during sections 3(6), 3(20), and 4(a)(1) of the yellow-billed cuckoo’s habitat) is largely migration and winter. Act. dependent on disturbances that affect Through our analysis of the best some but not all of the vegetation within available scientific and commercial Significant Portion of the Range that habitat patch at one time. A number information on the species’ abundance, Under the Act and our implementing of threats, working in combination or life history, current population status regulations, a species may warrant individually, prevent such disturbance and trends, and the response of the listing if it is an endangered or from happening now and will continue species and its habitat to natural and threatened species throughout all or a to do so in the future. anthropogenic threats, we have significant portion of its range. The Act For example, dams and other flood determined that the western yellow- defines ‘‘endangered species’’ as any control modifications to a watercourse billed cuckoo meets the definition of a species which is ‘‘in danger of may prevent floods from being severe threatened species under the Act, rather extinction throughout all or a significant enough to affect that habitat patch; than endangered. The Act defines an portion of its range,’’ and ‘‘threatened channelization may restrict floodwaters endangered species as any species that species’’ as any species which is ‘‘likely to a narrow channel, allowing is ‘‘in danger of extinction throughout to become an endangered species within floodwaters to cause too much damage all or a significant portion of its range’’ the foreseeable future throughout all or to habitat within the channel and not and a threatened species as any species a significant portion of its range.’’ The enough (or no) damage to habitat ‘‘that is likely to become endangered definition of ‘‘species’’ is also relevant outside the channel; altered flood throughout all or a significant portion of to this discussion. The Act defines regimes may allow dead wood to its range within the foreseeable future.’’ ‘‘species’’ as follows: ‘‘The term accumulate, allowing fires, when they The geographic extent of the western ‘species’ includes any subspecies of fish occur, to be severe and affect most of the yellow-billed cuckoo remains rather or wildlife or plants, and any distinct patch; development and other human widespread through much of its historic population segment [DPS] of any activities next to habitat patches may range, conferring some measure of species of vertebrate fish or wildlife allow more wildfires to be ignited; and ecological and geographic redundancy which interbreeds when mature.’’ The the reduction in patch size, through and resilience. Although there is a phrase ‘‘significant portion of its range’’ neighboring development, alteration of general decline in the overall (SPR) is not defined by the statute, and hydrology, or encroachment by population trend and its breeding range we have never addressed in our nonnative plants, makes it more likely has been reduced, the rate of the regulations: (1) The consequences of a that a larger proportion of that patch population decline and contraction of determination that a species is either will be affected during any given its breeding range is not so severe to endangered or likely to become so disturbance event. Moreover, nearly all indicate extinction is imminent for the throughout a significant portion of its areas where riparian habitat could western yellow-billed cuckoo. This range, but not throughout all of its potentially grow are modified by dams current downward trend is slow and not range; or (2) what qualifies a portion of or water withdrawal and disrupted by expected to increase in the near future. a range as ‘‘significant.’’ other activities, often in combination, The majority of large-scale habitat losses In determining whether a species is that prevent the reestablishment of and conversions through dam building threatened or endangered in a riparian habitat. Patch size, when and agricultural development have significant portion of its range, we first coupled with habitat loss and Factor C already occurred, and we are not aware identify any portions of the range of the and E threats, including proximity to of any large-scale projects that would species that warrant further incompatible land uses, which increases affect the species to the extent that the consideration. The range of a species exposure to predators and pesticides, is current trend of decline would change. can theoretically be divided into a significant cumulative threat to the Therefore, threats to the species and portions an infinite number of ways. western yellow-billed cuckoo now and population declines do not currently However, there is no purpose to in the future. reach the level typical of an endangered analyzing portions of the range that are Per section 4(b)(1)(A) of the Act, prior species. not reasonably likely to be both (1) to making our determination, we must Because the western yellow-billed significant and (2) threatened or first ‘‘[take] into account those efforts, if cuckoo does not face any known sudden endangered. To identify only those any, being made by any State or foreign and calamitous threats, it is not a portions that warrant further nation, or any political subdivision of a narrowly endemic species vulnerable to consideration, we determine whether

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there is substantial information become endangered in the foreseeable planning process involves the indicating that: (1) The portions may be future. identification of actions that are significant, and (2) the species may be The western yellow-billed cuckoo is necessary to halt or reverse the species’ in danger of extinction there or likely to highly restricted to riparian habitat, and decline by addressing the threats to its become so within the foreseeable future. the threats to the species and its habitat survival and recovery. The goal of this In practice, a key part of this analysis is occur throughout its breeding range. process is to restore listed species to a whether the threats are geographically Therefore, we assessed the status of the point where they are secure, self- concentrated in some way. If the threats western yellow-billed cuckoo sustaining, and functioning components to the species are essentially uniform throughout its entire breeding range. of their ecosystems. throughout its range, no portion is likely The threats to the survival of the species Recovery planning includes the to warrant further consideration. occur throughout the western DPS’ development of a recovery outline Moreover, if any concentration of breeding range and are not restricted to shortly after a species is listed and threats applies only to portions of the any particular significant portion of that preparation of a draft and final recovery species’ range that are not significant, range. We conclude that what affects the plan. The recovery outline guides the such portions will not warrant further entire breeding portion of the western immediate implementation of urgent consideration. DPS’ range affects the status of the recovery actions and describes the If we identify portions that warrant entire western yellow-billed cuckoo process to be used to develop a recovery further consideration, we then throughout its breeding range, including plan. Revisions of the plan may be done determine whether the species is migration corridors and stopover areas. to address continuing or new threats to threatened or endangered in these Accordingly, our assessment and the species, as new substantive portions of its range. Depending on the proposed determination applies to the information becomes available. The biology of the species, its range, and the western yellow-billed cuckoo recovery plan identifies site-specific threats it faces, the Service may address throughout its entire breeding range. management actions that set a trigger for either the significance question or the We found no portion of the western review of the five factors that control status question first. Thus, if the Service yellow-billed cuckoo’s range where whether a species remains endangered considers significance first and threats are significantly concentrated or or may be downlisted or delisted, and determines that a portion of the range is substantially greater than in other methods for monitoring recovery not significant, the Service need not portions of their range and that factors progress. Recovery plans also establish determine whether the species is affecting the species are essentially a framework for agencies to coordinate threatened or endangered there. uniform throughout its range, indicating their recovery efforts and provide Likewise, if the Service considers status no portion of the range of the species estimates of the cost of implementing first and determines that the species is warrants further consideration of recovery tasks. Recovery teams not threatened or endangered in a possible endangered or threatened (composed of species experts, Federal portion of its range, the Service need not status under the Act. Therefore, we find and State agencies, nongovernmental determine if that portion is significant. there is no significant portion of the organizations, and stakeholders) are However, if the Service determines that range of the western yellow-billed often established to develop recovery both a portion of the range of a species cuckoo that may warrant a different plans. When completed, the recovery is significant and the species is status. outline, draft recovery plan, and the threatened or endangered there, the Available Conservation Measures final recovery plan will be available on Service will specify that portion of the our Web site (http://www.fws.gov/ range as threatened or endangered Conservation measures provided to endangered), or from our Sacramento under section 4(c)(1) of the Act. species listed as endangered or Fish and Wildlife Office (see FOR We evaluated the current range of the threatened under the Act include FURTHER INFORMATION CONTACT). western yellow-billed cuckoo to recognition, recovery actions, Implementation of recovery actions determine if there is any apparent requirements for Federal protection, and generally requires the participation of a geographic concentration of threats for prohibitions against certain practices. broad range of partners, including other the species. The western yellow-billed Recognition through listing results in Federal agencies, States, Tribal, cuckoos are highly restricted to riparian public awareness and conservation by nongovernmental organizations, habitat in their ranges, and the threats Federal, State, and local agencies; businesses, and private landowners. occur throughout the species’ range. We private organizations; and individuals. Examples of recovery actions include considered the potential threats due to The Act encourages cooperation with habitat restoration (e.g., restoration of altered watercourse hydrology and the States and requires that recovery native vegetation), research, captive natural stream processes, livestock actions be carried out for all listed propagation and reintroduction, and overgrazing, encroachment from species. The protection measures outreach and education. The recovery of agriculture, conversion of native habitat required of Federal agencies and the many listed species cannot be to predominantly nonnative vegetation, prohibitions against certain activities accomplished solely on Federal lands pesticides, wildfire, small and widely are discussed, in part, below. because their range may occur primarily separated habitat patches, and the The primary purpose of the Act is the or solely on non-Federal lands. To effects of climate change. We found no conservation of endangered and achieve recovery of these species concentration of threats because of the threatened species and the ecosystems requires cooperative conservation efforts species’ limited and curtailed range, and upon which they depend. The ultimate on private, State, and Tribal lands. uniformity of the threats throughout its goal of such conservation efforts is the Following publication of this final entire range. Having determined that the recovery of these listed species, so that listing rule, funding for recovery actions western yellow-billed cuckoo is they no longer need the protective will be available from a variety of threatened throughout its entire range, measures of the Act. Subsection 4(f) of sources, including Federal budgets, we must next consider whether there the Act requires the Service to develop State programs, and cost share grants for are any significant portions of the range and implement recovery plans for the non-Federal landowners, the academic where the western yellow-billed cuckoo conservation of endangered and community, and nongovernmental is in danger of extinction or is likely to threatened species. The recovery organizations. In addition, pursuant to

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section 6 of the Act, the States of structures, water diversion and variety of habitat conditions across its Washington, Idaho, Montana, Oregon, withdrawal projects, roads and bridges, range, and it is likely that site- and California, Nevada, Wyoming, Utah, utilities, recreation sites, and other project-specific conservation measures Colorado, Arizona, New Mexico, and forms of development, and livestock may be needed for activities that may Texas would be eligible for Federal grazing. directly or indirectly affect the species. funds to implement management Under section 4(d) of the Act, the Based on the best available actions that promote the protection or Service has discretion to issue information, the following activities recovery of the yellow-billed cuckoo. regulations that we find necessary and may potentially result in a violation of Information on our grant programs that advisable to provide for the section 9 the Act; this list is not are available to aid species recovery can conservation of threatened species. The comprehensive: (1) Handling or be found at: http://www.fws.gov/grants. Act and its implementing regulations set collecting of the species; (2) destruction/ Please let us know if you are forth a series of general prohibitions and alteration of the species’ habitat by interested in participating in recovery exceptions that apply to threatened discharge of fill material, draining, efforts for the yellow-billed cuckoo. wildlife. The prohibitions of section ditching, tiling, pond construction, Additionally, we invite you to submit 9(a)(1) of the Act, as applied to stream channelization or diversion, or any new information on this species threatened wildlife and codified at 50 diversion or alteration of surface or whenever it becomes available and any CFR 17.31 make it illegal for any person ground water flow; (3) livestock grazing information you may have for recovery subject to the jurisdiction of the United that results in direct or indirect planning purposes (see FOR FURTHER States to take (which includes harass, destruction of riparian habitat; (4) INFORMATION CONTACT). harm, pursue, hunt, shoot, wound, kill, activities such as continued presence of Section 7(a) of the Act requires trap, capture, or collect; or to attempt cattle and fragmentation of riparian Federal agencies to evaluate their any of these) threatened wildlife within habitat; (5) pesticide applications in actions with respect to any species that the United States or on the high seas. In violation of label restrictions; and (6) is proposed or listed as endangered or addition, it is unlawful to import; release of biological control agents that threatened and with respect to its export; deliver, receive, carry, transport, modifies or destroys habitat used by the critical habitat, if any is designated. or ship in interstate or foreign species. Regulations implementing this commerce in the course of commercial Questions regarding whether specific interagency cooperation provision of the activity; or sell or offer for sale in activities would constitute a violation of Act are codified at 50 CFR 402. Section interstate or foreign commerce any section 9 of the Act should be directed 7(a)(4) of the Act requires Federal listed species. It is also illegal to to the Sacramento Fish and Wildlife agencies to confer with the Service on possess, sell, deliver, carry, transport, or Office (see FOR FURTHER INFORMATION any action that is likely to jeopardize ship any such wildlife that has been CONTACT). the continued existence of a species taken illegally. Certain exceptions apply proposed for listing or result in to employees of the Service, the Required Determinations destruction or adverse modification of National Marine Fisheries Service, other National Environmental Policy Act (42 proposed critical habitat. If a species is Federal land management agencies, and U.S.C. 4321 et seq.) listed subsequently, section 7(a)(2) of State conservation agencies. the Act requires Federal agencies to We may issue permits to carry out We have determined that ensure that activities they authorize, otherwise prohibited activities environmental assessments and fund, or carry out are not likely to involving threatened wildlife under environmental impact statements, as jeopardize the continued existence of certain circumstances. Regulations defined under the authority of the the species or destroy or adversely governing permits are codified at 50 National Environmental Policy Act of modify its critical habitat. If a Federal CFR 17.32. With regard to threatened 1969 (42 U.S.C. 4321 et seq.), need not action may affect a listed species or its wildlife, a permit may be issued for the be prepared in connection with critical habitat, the responsible Federal following purposes: For scientific regulations pursuant to section 4(a) of agency must enter into formal purposes, to enhance the propagation or the Act. We published a notice outlining consultation with the Service. survival of the species, and for our reasons for this determination in the Federal agency actions within or incidental take in connection with Federal Register on October 25, 1983 affecting the species’ habitat that may otherwise lawful activities. There are (48 FR 49244). require conference or consultation or also certain statutory exemptions from Government-to-Government both as described in the preceding the prohibitions, which are found in Relationship With Tribes paragraph include, but are not limited sections 9 and 10 of the Act. to, projects that will result in removal or It is our policy, as published in the In accordance with the President’s degradation of riparian vegetation, Federal Register on July 1, 1994 (59 FR memorandum of April 29, 1994 altered streamflow or fluvial dynamics, 34272), to identify to the maximum (Government-to-Government Relations or other habitat-altering activities on extent practicable at the time a species with Native American Tribal Federal lands or as a result of issuance is listed, those activities that would or Governments; 59 FR 22951), Executive of section 404 CWA permits by the would not constitute a violation of Order 13175 (Consultation and USACE; construction and management section 9 of the Act. The intent of this Coordination With Indian Tribal of energy and power line rights-of-way policy is to increase public awareness of Governments), and the Department of by the FERC; construction and the effect of a final listing on proposed the Interior’s manual at 512 DM 2, we maintenance of roads, highways, or and ongoing activities within the range readily acknowledge our responsibility bridges by the Federal Highway of a listed species. However, at this to communicate meaningfully with Administration; grazing leases by the time, we are unable to identify specific recognized Federal Tribes on a USFS or the BLM; and projects funded activities that would not be considered government-to-government basis. In through Federal loan programs. Such to result in a violation of section 9 of the accordance with Secretarial Order 3206 projects may include, but are not Act because the western yellow-billed of June 5, 1997 (American Indian Tribal limited to, construction or modification cuckoo occurs in riparian habitat across Rights, Federal-Tribal Trust of reservoirs, levees, bank stabilization numerous western States that exhibit a Responsibilities, and the Endangered

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Species Act), we readily acknowledge at http://www.regulations.gov or upon Regulation Promulgation our responsibilities to work directly request from the Field Supervisor, with tribes in developing programs for Sacramento Fish and Wildlife Office Accordingly, we amend part 17, subchapter B of chapter I, title 50 of the healthy ecosystems, to acknowledge that (see ADDRESSES). tribal lands are not subject to the same Code of Federal Regulations, as follows: controls as Federal public lands, to Authors PART 17—[AMENDED] remain sensitive to Indian culture, and The primary authors of this final rule to make information available to tribes. are the staff members from the Service’s ■ During the development of this final 1. The authority citation for part 17 rule, we contacted, held meetings with, Sacramento Fish and Wildlife Office continues to read as follows: or otherwise coordinated with all and the Pacific Southwest Regional Authority: 16 U.S.C. 1361–1407; 1531– known tribal entities within the range of Office (Region 8) with assistance from 1544; 4201–4245, unless otherwise noted. the species within the United States. staff from the Pacific Northwest Region Information solicited or gathered as (Region 1), the Southwest Region ■ 2. Amend § 17.11(h) by adding an result of this coordination has been (Region 2), and the Mountain-Prairie entry for ‘‘Cuckoo, yellow-billed incorporated into this final Region (Region 6). (Western DPS)’’ to the List of determination as appropriate. We will Endangered and Threatened Wildlife in List of Subjects in 50 CFR Part 17 conduct further coordination during our alphabetical order under Birds, to read designation of critical habitat for the Endangered and threatened species, as follows: species. Exports, Imports, Reporting and § 17.11 Endangered and threatened References Cited recordkeeping requirements, wildlife. A complete list of all references cited Transportation. * * * * * in this rule is available on the Internet (h) * * *

Species Vertebrate population where Critical Special Historic Range endangered or Status When listed habitat rules Common name Scientific name threatened

******* BIRDS

******* Cuckoo, yellow-billed Coccyzus U.S.A., Canada, Western DPS: T 850 NA NA americanus. Mexico. U.S.A. (AZ, CA, CO (western), ID, MT (western), NM (western), NV, OR, TX (western), UT, WA, WY (western)); Can- ada (British Co- lumbia (south- western); Mexico (Baja California, Baja California Sur, Chihuahua, Durango (west- ern), Sinaloa, So- nora).

*******

* * * * * Dated: September 24, 2014. Daniel M. Ashe, Director, U. S. Fish and Wildlife Service. [FR Doc. 2014–23640 Filed 10–2–14; 8:45 am] BILLING CODE 4310–55–P

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Part VI

The President

Memorandum of September 24, 2014—Delegation of Authority Under Sections 506(a)(1) and 552(c)(2) of the Foreign Assistance Act of 1961 Proclamation 9177—National Arts and Humanities Month, 2014 Proclamation 9178—National Breast Cancer Awareness Month, 2014 Proclamation 9179—National Cybersecurity Awareness Month, 2014 Proclamation 9180—National Disability Employment Awareness Month, 2014 Proclamation 9181—National Domestic Violence Awareness Month, 2014 Proclamation 9182—National Energy Action Month, 2014 Proclamation 9183—National Substances Abuse Prevention Month, 2014

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Federal Register Presidential Documents Vol. 79, No. 192

Friday, October 3, 2014

Title 3— Memorandum of September 24, 2014

The President Delegation of Authority Under Sections 506(a)(1) and 552(c)(2) of the Foreign Assistance Act of 1961

Memorandum for the Secretary of State

By the authority vested in me as President by the Constitution and the laws of the United States of America, including section 301 of title 3, United States Code, I hereby delegate to the Secretary of State: (1) The authority under section 506(a)(1) of the Foreign Assistance Act of 1961 (FAA) to direct the drawdown of up to $5 million in defense articles and services of the Department of Defense and military education and training to provide immediate military assistance for the Government of Ukraine, to aid their efforts to respond to the current crisis, and to make the determinations required under such section to direct such a draw- down; and (2) The authority under section 552(c)(2) of the FAA to direct the draw- down of up to $20 million in nonlethal commodities and services from any agency of the United States Government to provide assistance for the Government of Ukraine, and to make the determinations required under such section to direct such a drawdown. You are authorized and directed to publish this memorandum in the Federal Register.

THE WHITE HOUSE, Washington, September 24, 2014

[FR Doc. 2014–23852 Filed 10–2–14; 11:15 am] Billing code 4710–10

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Proclamation 9177 of September 30, 2014

National Arts and Humanities Month, 2014

By the President of the United States of America

A Proclamation In this complicated world and in these challenging times, the arts and humanities enhance the character of our Nation. The flash of insight that comes from watching a thought-provoking documentary or discovering a compelling novel sparks moments of joy, awe, and sorrow. From symphonies that bring tragedy to life with long bow strokes to architecture that challenges the boundaries of the world around it, these works add texture to our lives and reveal something about ourselves. During National Arts and Human- ities Month, we reflect on the many ways the arts and humanities have contributed to the fabric of our society. Since our earliest days, America has flourished because of the creative spirit and vision of our people. Our Nation is built on the freedom of expression, and we rely on the arts and humanities to broaden our views and remind us of the truths that connect us. We must never take for granted the wonder we feel when standing before a timeless work of art or the world of memories that is unlocked with a simple movement or a single note. By capturing our greatest hopes and deepest fears, the arts and human- ities play an important role in telling our country’s story and broadening our understanding of the world. Cultivating the talents of our young people and ensuring they have access to the arts are critical to our Nation’s growth and prosperity. To meet the challenges ahead, we must harness the skills and ingenuity of our children and grandchildren and instill in them the same passion and persist- ence that has driven centuries of progress and innovation. The arts and humanities provide important opportunities for our young people to unleash their creativity and reach for new heights. That is why my Administration is committed to bolstering initiatives that ensure the next generation has the tools to foster their artistic expression and the opportunities to go as far as their imaginations can take them. This month, we pay tribute to the tremendous power of the arts and human- ities to bring us together and expose us to new ideas that make us think and feel. As we carry forward this proud tradition, let us celebrate the ways our Nation’s rich heritage has strengthened our country and inspired our lives. NOW, THEREFORE, I, BARACK OBAMA, President of the United States of America, by virtue of the authority vested in me by the Constitution and the laws of the United States, do hereby proclaim October 2014 as National Arts and Humanities Month. I call upon the people of the United States to join together in observing this month with appropriate ceremonies, activities, and programs to celebrate the arts and the humanities in America.

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IN WITNESS WHEREOF, I have hereunto set my hand this thirtieth day of September, in the year of our Lord two thousand fourteen, and of the Independence of the United States of America the two hundred and thirty- ninth.

[FR Doc. 2014–23853 Filed 10–2–14; 11:15 am] Billing code 3295–F4

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Proclamation 9178 of September 30, 2014

National Breast Cancer Awareness Month, 2014

By the President of the United States of America

A Proclamation This year, more than 230,000 women and 2,000 men will be diagnosed with breast cancer in America. The heartache and the pain of this disease will touch too many of our mothers, fathers, daughters, and sisters, and too many families will bear these burdens. During National Breast Cancer Awareness Month, we recognize all those who know the anguish of breast cancer, and we redouble our efforts to improve care and bring attention to this disease. When breast cancer is caught early, treatments work best and survival rates increase. That is why all women and men should be familiar with the risk factors and symptoms of this disease. I encourage women to speak with their health care provider about the risk of breast cancer and the importance of recommended mammograms—breast cancer screenings that play an essential role in early detection. Whether you are looking for informa- tion about breast cancer prevention, treatment of metastatic breast cancer, or information on the latest research, all Americans can learn more by visiting www.Cancer.gov. Today, more Americans are surviving breast cancer than ever before, but there is more work to do, and my Administration is fighting every day to improve the lives of breast cancer patients, survivors, and their families. We have invested billions of dollars in critical research to better understand the causes of breast cancer, develop new diagnostic tools, and pursue innova- tive treatments. The Affordable Care Act has expanded access to life-saving care for millions of Americans, including those affected by breast cancer, and requires most insurance plans to cover recommended preventive services, including mammograms, without copays. New protections under the law also eliminate annual and lifetime dollar limits on coverage and prohibit insurers from denying coverage because of pre-existing conditions, including cancer. This month, as we honor those lost to breast cancer, let us join with the loved ones who celebrate their memory and the patients who battle this disease every day, as well as our Nation’s advocates, medical researchers, and health care providers. Together, we renew our commitment to better prevent, detect, and treat breast cancer, and we continue our work toward a future free from cancer in all its forms. NOW, THEREFORE, I, BARACK OBAMA, President of the United States of America, by virtue of the authority vested in me by the Constitution and the laws of the United States, do hereby proclaim October 2014 as National Breast Cancer Awareness Month. I encourage citizens, government agencies, private businesses, nonprofit organizations, and all other interested groups to join in activities that will increase awareness of what Americans can do to prevent breast cancer.

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IN WITNESS WHEREOF, I have hereunto set my hand this thirtieth day of September, in the year of our Lord two thousand fourteen, and of the Independence of the United States of America the two hundred and thirty- ninth.

[FR Doc. 2014–23859 Filed 10–2–14; 11:15 am] Billing code 3295–F4

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Proclamation 9179 of September 30, 2014

National Cybersecurity Awareness Month, 2014

By the President of the United States of America

A Proclamation Cyber threats pose one of the gravest national security dangers the United States faces. They jeopardize our country’s critical infrastructure, endanger our individual liberties, and threaten every American’s way of life. When our Nation’s intellectual property is stolen, it harms our economy, and when a victim experiences online theft, fraud, or abuse, it puts all of us at risk. During National Cybersecurity Awareness Month, we continue our work to make our cyberspace more secure, and we redouble our efforts to bring attention to the role we can each play. Cyberspace touches nearly every part of our daily lives. It supports our schools and businesses, powers the grid that stretches across our Nation, and connects friends and families around the world. Our constant connection has led to revolutions in medicine and technology and has bettered our society, but it has also introduced new risks, especially to our finances, identity, and privacy. That is why last year I signed an Executive Order directing my Administration to identify the best ways to bolster our country’s cybersecurity. And earlier this year, we delivered on that commitment by releasing the Cybersecurity Framework. A model of public-private coopera- tion, this Framework will help industry and Government strengthen the security and resiliency of our critical infrastructure. My Administration is also investing in new strategies and innovations that help keep pace with rapidly changing technology, and because cyberspace crosses every boundary, we will continue engaging with our international partners. Americans of all ages can take action to raise the level of our collective cybersecurity, and the Department of Homeland Security’s ‘‘Stop.Think.Connect.’’ campaign is empowering individuals to do their part. Everyone should utilize secure passwords online and change them regularly. Internet users should take advantage of all available methods to protect their private accounts and information, and parents can teach their children not to share personal information over the Internet. Enhancing the security of our Nation’s digital infrastructure is a shared responsibility, and together we can protect our most important information systems. To learn more about safe cyber practices, visit www.DHS.gov/StopThinkConnect. Our commitment to maintaining an open, secure, and reliable cyberspace ensures the Internet will remain an engine for economic growth and a platform for the free exchange of ideas. This month, we resolve to work together to meet this global challenge. NOW, THEREFORE, I, BARACK OBAMA, President of the United States of America, by virtue of the authority vested in me by the Constitution and the laws of the United States, do hereby proclaim October 2014 as National Cybersecurity Awareness Month. I call upon the people of the United States to recognize the importance of cybersecurity and to observe this month with activities, events, and training that will enhance our national security and resilience.

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IN WITNESS WHEREOF, I have hereunto set my hand this thirtieth day of September, in the year of our Lord two thousand fourteen, and of the Independence of the United States of America the two hundred and thirty- ninth.

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Proclamation 9180 of September 30, 2014

National Disability Employment Awareness Month, 2014

By the President of the United States of America

A Proclamation Americans with disabilities lead thriving businesses, teach our children, and serve our Nation; they are innovators and pioneers of technology. In urban centers and rural communities, they carry forward our Nation’s legacy of hard work, responsibility, and sacrifice, and their contributions strengthen our economy and remind us that all Americans deserve the opportunity to participate fully in society. During National Disability Employment Aware- ness Month, we celebrate the Americans living with disabilities, including significant disabilities, who enrich our country, and we reaffirm the simple truth that each of us has something to give to the American story. This year’s theme, ‘‘Expect. Employ. Empower.,’’ reminds us that every American has a right to dignity, respect, and a fair shot at success in the workplace. For too long, workers with disabilities were measured by what people thought they could not do, depriving our Nation and economy of the full talents and contributions of millions of Americans. Nearly 25 years ago, the Americans with Disabilities Act codified the promise of an equal opportunity for everyone who worked hard, and in the years since, Americans with disabilities have reached extraordinary heights. But when employees with disabilities are passed over in the workplace or denied fair accommodations, it limits their potential and threatens our democracy; when disproportionate numbers of Americans with disabilities remain unem- ployed, more work must be done to achieve the spirit of what is one of the most comprehensive civil rights bills in the history of our country. My Administration remains committed to tearing down the barriers that prevent Americans with disabilities from living fully independent, integrated lives. We have supported programs that more effectively prepare workers, including those with disabilities, for high-growth, high-demand careers, and we have found new ways to encourage businesses to foster flexible work- places that are open to diverse skills. We are also working to ensure those living with disabilities have access to the resources that support employment, including accessible housing, transportation, and technology. Meaningful careers not only provide ladders of opportunity into the middle class, but they also give us a sense of purpose and self-worth. When Ameri- cans with disabilities live without the fear of discrimination, they are free to make of their lives what they will. This month, we renew our commitment to cultivate a more inclusive workforce, and we continue our efforts to build a society where everyone who works hard has a chance to get ahead. NOW, THEREFORE, I, BARACK OBAMA, President of the United States of America, by virtue of the authority vested in me by the Constitution and the laws of the United States, do hereby proclaim October 2014 as National Disability Employment Awareness Month. I urge all Americans to embrace the talents and skills that individuals with disabilities bring to our workplaces and communities and to promote the right to equal employment opportunity for all people.

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IN WITNESS WHEREOF, I have hereunto set my hand this thirtieth day of September, in the year of our Lord two thousand fourteen, and of the Independence of the United States of America the two hundred and thirty- ninth.

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Proclamation 9181 of September 30, 2014

National Domestic Violence Awareness Month, 2014

By the President of the United States of America

A Proclamation Domestic violence affects every American. It harms our communities, weak- ens the foundation of our Nation, and hurts those we love most. It is an affront to our basic decency and humanity, and it must end. During National Domestic Violence Awareness Month, we acknowledge the progress made in reducing these shameful crimes, embrace the basic human right to be free from violence and abuse, and recognize that more work remains until every individual is able to live free from fear. Last month, our Nation marked the 20th anniversary of the Violence Against Women Act (VAWA). Before this historic law, domestic violence was seen by many as a lesser offense, and women in danger often had nowhere to go. But VAWA marked a turning point, and it slowly transformed the way people think about domestic abuse. Today, as 1 out of every 10 teenagers are physically hurt on purpose by someone they are dating, we seek to once again profoundly change our culture and reject the quiet tolerance of what is fundamentally unacceptable. That is why Vice President Joe Biden launched the 1is2many initiative to engage educators, parents, and students while raising awareness about dating violence and the role we all have to play in stopping it. And it is why the White House Task Force to Protect Students from Sexual Assault and the newly launched ‘‘It’s On Us’’ campaign will address the intersection of sexual assault and dating violence on college campuses. Since VAWA’s passage, domestic violence has dropped by almost two-thirds, but despite these strides, there is more to do. Nearly two out of three Americans 15 years of age or older know a victim of domestic violence or sexual assault, and domestic violence homicides claim the lives of three women every day. When women and children are deprived of a loving home, legal protections, or financial independence because they fear for their safety, our Nation is denied its full potential. My Administration is committed to reaching a future free of domestic vio- lence. We are building public-private partnerships to directly address domes- tic violence in our neighborhoods and workplaces, and we are helping communities use evidence-based screening programs to prevent domestic violence homicides. At the same time, the Federal Government is leading by example, developing policies to ensure domestic violence is addressed in the Federal workforce. New protections under the Affordable Care Act provide more women with access to free screenings and counseling for domestic violence. And when I proudly reauthorized VAWA last year, we expanded housing assistance; added critical protections for lesbian, gay, bisexual, and transgender Americans; and empowered tribal governments to protect Native American women from domestic violence in Indian Country. Our Nation’s success can be judged by how we treat women and girls, and we must all work together to end domestic violence. As we honor the advocates and victim service providers who offer support during the darkest moments of someone’s life, I encourage survivors and their loved ones who are seeking assistance to reach out by calling the National Domestic Violence Hotline at 1–800–799–SAFE or visiting www.TheHotline.org.

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This month, we recognize the survivors and victims of abuse whose courage inspires us all. We recommit to offering a helping hand to those most in need, and we remind them that they are not alone. NOW, THEREFORE, I, BARACK OBAMA, President of the United States of America, by virtue of the authority vested in me by the Constitution and the laws of the United States, do hereby proclaim October 2014 as National Domestic Violence Awareness Month. I call on all Americans to speak out against domestic violence and support local efforts to assist victims of these crimes in finding the help and healing they need. IN WITNESS WHEREOF, I have hereunto set my hand this thirtieth day of September, in the year of our Lord two thousand fourteen, and of the Independence of the United States of America the two hundred and thirty- ninth.

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Proclamation 9182 of September 30, 2014

National Energy Action Month, 2014

By the President of the United States of America

A Proclamation Safeguarding America’s energy future is an economic, environmental, and national security imperative. The energy choices we make today will have a substantial impact on the world we leave to our children and grandchildren. By pursuing an aggressive All-of-the-Above energy strategy, we can support economic growth and job creation, enhance energy security, and lay the foundation for a low-carbon energy future. During National Energy Action Month, we embrace our profound obligation to leave generations to come a cleaner, safer, more stable world, and we resolve to stand up, speak out, and fight for the urgent action this pivotal moment in history demands. Our country’s energy sector is undergoing a significant transformation, and today we are closer to energy independence than we have been in decades. The United States generates more renewable energy—from sources like wind and solar power—than ever before, we are the number one natural gas producer in the world, and we are building the first nuclear power plants in over three decades. These gains have brought jobs back to America and created more than 55,000 new jobs. And since I took office, domestic energy-related emissions of carbon dioxide have declined. As our Nation produces more traditional energy and sets the groundwork for the energy sources of the future, our achievements demonstrate that there is no con- tradiction between a sound environment and a thriving economy. A low-carbon, clean energy strategy can be an engine of growth for decades to come, but transitioning our economy takes time, and there is more work to do. That is why my Administration has made the largest investment in clean energy in American history, and why I have taken action to ensure our Nation is a leader in the energy sources of tomorrow. We have partnered with businesses that know investing in renewable energy is not only good for the environment, but also for their bottom line, and we are supporting training programs that will help 50,000 workers learn the skills clean energy companies are looking for. The Government is leading the way by deploying renewable energy on public lands and across federally subsidized housing and military installations. And I continue to support incentives for private investment in these energy sources, including Federal financing, which— during my Administration—has brought over $30 billion of capital to the clean energy sector. As we are advancing low-carbon technologies and developing cleaner fuels, we are also working to promote energy efficiency. Cutting our energy waste is one of the fastest, easiest, and cheapest ways to create jobs, save families money, and reduce our carbon pollution. The buildings we live and work in are responsible for about one-third of our greenhouse gases, and my Better Buildings Challenge is on track to improve the energy efficiency of thousands of multi-family homes, commercial buildings, and industrial plants by 20 percent by the year 2020. We have set new fuel standards for our cars and trucks so they will go twice as far on a gallon of gas by the middle of the next decade and invested billions of dollars in energy upgrades to Federal buildings. We have concrete strategies that are proven

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to create jobs and reduce emissions, and we must all pledge to do our part. The threat of climate change requires us to act now. We have a chance to improve public health, protect our environment, and better our world, and the American people have the skills and innovative spirit needed to seize this opportunity. This month, we look forward and boldly declare our intent to rise to the challenge of a changing world. As caretakers of our planet, let us resolve to build a cleaner, more prosperous, and more secure world for all of humanity. NOW, THEREFORE, I, BARACK OBAMA, President of the United States of America, by virtue of the authority vested in me by the Constitution and the laws of the United States, do hereby proclaim October 2014 as National Energy Action Month. I call upon the citizens of the United States to recognize this month by working together to achieve greater energy secu- rity, a more robust economy, and a healthier environment for our children. IN WITNESS WHEREOF, I have hereunto set my hand this thirtieth day of September, in the year of our Lord two thousand fourteen, and of the Independence of the United States of America the two hundred and thirty- ninth.

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Proclamation 9183 of September 30, 2014

National Substance Abuse Prevention Month, 2014

By the President of the United States of America

A Proclamation Substance abuse disrupts our families, schools, and communities and limits the success of young people across our country. It destroys relationships and stands in the way of academic achievement. Every day, thousands of young Americans try drugs or alcohol for the first time, and for many, this decision will have a profound impact on their health and well-being. This month, we join with families, schools, and local leaders to promote safe and healthy neighborhoods and help ensure all our children have the support and resources they need to achieve their full potential. Preventing substance use before it begins is the most effective way to elimi- nate the damage caused by drugs and the abuse of alcohol. That is why my Administration’s 2014 National Drug Control Strategy supports evidence- based education and outreach programs that connect with young people at schools, on college campuses, and in the workplace. This year, through the Drug-Free Communities Support Program, we are investing in 680 local coalitions that are working to reduce substance use in cities and towns across our country. These partners raise awareness of the harms associated with drug and alcohol use and create supportive environments that foster good decisionmaking. Substance use affects everyone, and each of us can play a part in helping the next generation make choices that support physical, mental, behavioral, and emotional health. Parents, mentors, and community members can model a healthy lifestyle and should talk with kids early and often about the dangers of drug and alcohol use. During National Substance Abuse Prevention Month, we recognize all those who work to prevent substance use in our neighborhoods, and we renew our commitment to building a safer, drug- free America. Together, we can make sure all children have the opportunity to pursue happy, fulfilling, and productive lives. NOW, THEREFORE, I, BARACK OBAMA, President of the United States of America, by virtue of the authority vested in me by the Constitution and the laws of the United States, do hereby proclaim October 2014 as National Substance Abuse Prevention Month. I call upon all Americans to engage in appropriate programs and activities to promote comprehensive substance abuse prevention efforts within their communities.

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IN WITNESS WHEREOF, I have hereunto set my hand this thirtieth day of September, in the year of our Lord two thousand fourteen, and of the Independence of the United States of America the two hundred and thirty- ninth.

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Reader Aids Federal Register Vol. 79, No. 192 Friday, October 3, 2014

CUSTOMER SERVICE AND INFORMATION CFR PARTS AFFECTED DURING OCTOBER

Federal Register/Code of Federal Regulations At the end of each month the Office of the Federal Register General Information, indexes and other finding 202–741–6000 publishes separately a List of CFR Sections Affected (LSA), which aids lists parts and sections affected by documents published since Laws 741–6000 the revision date of each title. 140...... 59898 Presidential Documents 3 CFR Executive orders and proclamations 741–6000 Proclamations: 18 CFR The United States Government Manual 741–6000 9174...... 59417 4...... 59105 9175...... 59419 Other Services 380...... 59105 9176...... 59421 Electronic and on-line services (voice) 741–6020 9177...... 60043 21 CFR Privacy Act Compilation 741–6064 9178...... 60045 Proposed Rules: Public Laws Update Service (numbers, dates, etc.) 741–6043 9179...... 60047 179...... 59699 TTY for the deaf-and-hard-of-hearing 741–6086 9180...... 60049 9181...... 60051 24 CFR 9182...... 60053 ELECTRONIC RESEARCH 5...... 59646 9183...... 60055 232...... 59646 World Wide Web Administrative Orders: Memorandums: 26 CFR Full text of the daily Federal Register, CFR and other publications Memorandum of 1...... 59112 is located at: www.fdsys.gov. September 24, 54...... 59130 Federal Register information and research tools, including Public 2014 ...... 60041 Inspection List, indexes, and Code of Federal Regulations are 29 CFR 7 CFR located at: www.ofr.gov. 2590...... 59130 319...... 59087, 59089 E-mail 30 CFR 10 CFR FEDREGTOC-L (Federal Register Table of Contents LISTSERV) is Proposed Rules: an open e-mail service that provides subscribers with a digital 72...... 59623 7...... 59167 form of the Federal Register Table of Contents. The digital form 431...... 59090 75...... 59167 of the Federal Register Table of Contents includes HTML and Proposed Rules: PDF links to the full text of each document. 72...... 59693 31 CFR 431...... 59153 Proposed Rules: To join or leave, go to http://listserv.access.gpo.gov and select 460...... 59154 Online mailing list archives, FEDREGTOC-L, Join or leave the list 1...... 59699 (or change settings); then follow the instructions. 11 CFR 32 CFR PENS (Public Law Electronic Notification Service) is an e-mail Proposed Rules: Proposed Rules: service that notifies subscribers of recently enacted laws. 100...... 59459 86...... 59168 To subscribe, go to http://listserv.gsa.gov/archives/publaws-l.html 12 CFR and select Join or leave the list (or change settings); then follow 33 CFR the instructions. 701...... 59627 100...... 59647 706...... 59627 FEDREGTOC-L and PENS are mailing lists only. We cannot 117...... 59431, 59432 790...... 59627 respond to specific inquiries. 165...... 59648, 59650 14 CFR Proposed Rules: Reference questions. Send questions and comments about the 165...... 59173, 59701 Federal Register system to: [email protected] 25...... 59423, 59431 The Federal Register staff cannot interpret specific documents or 39 ...... 59091, 59093, 59096, 38 CFR regulations. 59102, 59630, 59633, 59636, Proposed Rules: 59640, 59643 CFR Checklist. Effective January 1, 2009, the CFR Checklist no 38...... 59176 73...... 59645 longer appears in the Federal Register. This information can be 40 CFR found online at http://bookstore.gpo.gov/. Proposed Rules: 39 ...... 59154, 59157, 59160, 52 ...... 59433, 59435, 59663 59162, 59459, 59461, 59463, 81...... 59674 FEDERAL REGISTER PAGES AND DATE, OCTOBER 59465, 59467, 59468, 59695, 180...... 59115, 59119 59697 59087–59422...... 1 271...... 59438 272...... 59438 59423–59622...... 2 15 CFR 59623–60056...... 3 Proposed Rules: Proposed Rules: 52...... 59471, 59703 762...... 59166 81...... 59703 271...... 59471 16 CFR 272...... 59471 1240...... 59962 300...... 59179, 59182 721...... 59186 17 CFR 200...... 59104 42 CFR Proposed Rules: 405...... 59675 23...... 59898 412...... 59121, 59675

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413...... 59675 Proposed Rules: 27...... 59138 391...... 59139, 59450 415...... 59675 1001...... 59717 73...... 59447 392...... 59450 1003...... 59717 395...... 59450 422...... 59675 49 CFR 424...... 59675 397...... 59450 44 CFR 10...... 59448 430...... 59123 64...... 59123, 59127 26...... 59566 50 CFR 431...... 59123 355...... 59450 433...... 59123 45 CFR 365...... 59450 17...... 59140, 59992 435...... 59123 146...... 59130 369...... 59450 648...... 59150 436...... 59123 147...... 59137 383...... 59450 Proposed Rules: 440...... 59123 155...... 59137 384...... 59450 17...... 59195, 59364 485...... 59675 385...... 59450 622...... 59204 47 CFR 488...... 59675 387...... 59450 648...... 59472 20...... 59444 390...... 59450 679...... 59733

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in today’s List of Public enacted public laws. To Laws. subscribe, go to http:// LIST OF PUBLIC LAWS Public Laws Electronic listserv.gsa.gov/archives/ Last List October 2, 2014 Notification Service publaws-l.html (PENS) Note: No public bills which Note: This service is strictly have become law were for E-mail notification of new received by the Office of the PENS is a free electronic mail laws. The text of laws is not Federal Register for inclusion notification service of newly available through this service. PENS cannot respond to specific inquiries sent to this address.

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