Pages 42137±42370 Vol. 61 8±14±96 No. 158 federal register August 14,1996 Wednesday of thisissue. Washington, DC,seeannouncementontheinsidecover For informationonbriefingsinNewYork,NYand Briefings onHowToUsetheFederalRegister 1 II Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996

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2 III

Contents Federal Register Vol. 61, No. 158

Wednesday, August 14, 1996

Agency for Toxic Substances and Disease Registry Grants and cooperative agreements; availability, etc.: NOTICES Postsecondary education— Native American tribal governments; establishment of Student support services program, 42368–42369 government-to-government relationships; policy Meetings: statement, 42255–42256 President’s Advisory Commission on Educational Excellence for Hispanic Americans, 42235 Agriculture Department See Commodity Credit Corporation Energy Department See Food Safety and Inspection Service See Federal Energy Regulatory Commission Antitrust Division Engineers Corps NOTICES NOTICES National cooperative research notifications: Nationwide permits (NWPs); issuance, reissuance, and Microelectronics & Computer Technology Corp., 42268 modification; public hearings, 42234–42235 Network Management Forum, 42268–42269 OPC Foundation, 42269 Environmental Protection Agency Army Department PROPOSED RULES See Engineers Corps Clean Air Act: State operating permits programs— Centers for Disease Control and Prevention New Hampshire, 42222–42228 NOTICES Hazardous waste: Agency information collection activities: Identification and listing— Proposed collection; comment request, 42256–42257 Exclusions, 42318–42354 NOTICES Commerce Department Agency information collection activities: See Export Administration Bureau Proposed collection; comment request, 42243–42244 See International Trade Administration Pesticide registration, cancellation, etc.: See Minority Business Development Agency Ethylene bisdithiocarbamates (EBDCs), 42244–42249

Commodity Credit Corporation Executive Office of the President RULES See Trade Representative, Office of United States Wetlands reserve program: Responsibility transferred from NCRS to Commodity Export Administration Bureau Credit Corporation, 42137–42143 NOTICES Meetings: Commodity Futures Trading Commission President’s Export Council, 42231 RULES Commodity pool operators and commodity trading Federal Aviation Administration advisors: RULES Electronic media use; interpretation, 42146–42165 Airworthiness standards: Special conditions— Customs Service Cessna model 550 airplane (serial number 550-0801, NOTICES etc.), 42144–42146 Agency information collection activities: Class E airspace, 42146 Proposed collection; comment request, 42312–42313 PROPOSED RULES Trade name recordation applications: Airworthiness directives: OMI Industries Inc., 42313–42314 Boeing, 42195–42197 NOTICES Defense Department Advisory circulars; availability, etc.: See Engineers Corps Airworthiness designee function codes and consolidated directory for SFAR No. 36 and DMIR/DAR/ODAR/ Drug Enforcement Administration DAS/DOA, 42306 NOTICES Exemption petitions; summary and disposition, 42306– Applications, hearings, determinations, etc.: 42308 Aernol Chemical Corp., 42269 Passenger facility charges; applications, etc.: Key Field Airport, MS, 42308 Education Department McGhee Tyson Airport, TN, 42308–42309 NOTICES Portland International Airport, OR, 42309 Agency information collection activities: Tri-Cities Regional Airport, TN/VA, TN, 42309–42310 Proposed collection; comment request, 42235 Walker Field Airport Authority, CO, et al., 42310–42312 IV Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Contents

Federal Communications Commission General Services Administration RULES RULES Common carrier services: Acquisition regulations: Hearing aid compatible wireless telephones in FAC 90-39 implementation and miscellaneous changes workplaces, confined settings, etc., 42181–42189 Correction, 42190 Radio stations; table of assignments: NOTICES California et al., 42190 Environmental statements; availability, etc.: Florida, 42189–42190 Phoenix, AZ; Federal Building-U.S. Courthouse, 42252– PROPOSED RULES 42255 Radio stations; table of assignments: Kentucky, 42228, 42229 Health and Human Services Department Michigan, 42229–42230 See Agency for Toxic Substances and Disease Registry South Carolina, 42228–42229 See Centers for Disease Control and Prevention Tennessee, 42230 See Food and Drug Administration Texas, 42230 See Health Care Financing Administration NOTICES See Inspector General Office, Health and Human Services Television broadcasting: Department Closed captioning and video description of video See National Institutes of Health programming; report to Congress, 42249–42250

Federal Emergency Management Agency Health Care Financing Administration RULES See Inspector General Office, Health and Human Services Flood insurance; communities eligible for sale: Department New York et al., 42179–42181 NOTICES NOTICES Agency information collection activities: Disaster and emergency areas: Submission for OMB review; comment request, 42257– Michigan, 42250 42258 North Carolina, 42250 Ohio, 42250 Housing and Urban Development Department NOTICES Federal Energy Regulatory Commission Grants and cooperative agreements; availability, etc.: NOTICES Public and Indian housing— Electric rate and corporate regulation filings: Economic development and supportive services Market Responsive Energy, Inc., et al., 42238–42241 program, 42356–42366 Natural gas certificate findings: Columbia Gas Transmission Corp. et al., 42241–42243 Immigration and Naturalization Service Applications, hearings, determinations, etc.: NOTICES Eastern Shore Natural Gas Co., 42235–42236 Agency information collection activities: Granite State Gas Transmission, 42236 Proposed collection; comment request, 42270 KN Interstate Gas Transmission Co., 42236 Submission for OMB review; comment request, 42269– Texas Eastern Transmission Corp., 42236–42237 42270 Texas Gas Transmission Corp. [Editorial Note: This document was inadvertently omitted from the Federal Register of August 9, 1996.], 42237 Inspector General Office, Health and Human Services Williston Basin Interstate Pipeline Co., 42237–42238 Department NOTICES Federal Maritime Commission Program exclusions; list, 42258–42260 NOTICES Freight forwarder licenses: Interior Department Ian International, Inc., et al., 42251 See Land Management Bureau See National Park Service Federal Reserve System NOTICES Internal Revenue Service Banks and bank holding companies: RULES Formations, acquisitions, and mergers, 42251 Income taxes: Permissible nonbanking activities, 42251–42252 Section 355 distributions by U.S. corporations to foreign persons; treatment, 42165–42178 Food and Drug Administration Procedure and administration: NOTICES Performance of acts where last day falls on Saturday, Sea lice treatment and control; joint U.S.-Canadian public Sunday, or legal holiday; time, 42178–42179 workshop, 42257 PROPOSED RULES Income taxes: Food Safety and Inspection Service Section 355 distributions by U.S. corporations to foreign RULES persons; treatment; cross-reference, 42217–42219 Meat and poultry inspection: NOTICES Shingle packed bacon; net weight statements; labeling Agency information collection activities: requirement removed, 42143–42144 Proposed collection; comment request, 42314–42315 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Contents V

International Trade Administration Missouri National Recreational River Advisory Group, NOTICES 42263 Antidumping: National Register of Historic Places: Pasta from— Pending nominations, 42263–42264 Italy, 42231–42232 National Science Foundation International Trade Commission NOTICES NOTICES Agency information collection activities: Import investigations: Proposed collection; comment request, 42271–42272 Broom corn brooms from— Mexico et al., 42264–42265 Drams of one megabit and above from— Nuclear Regulatory Commission Korea, 42265–42266 NOTICES Meetings; Sunshine Act, 42266 Environmental statements; availability, etc.: Toledo Edison Co. et al., 42273–42274 Justice Department Meetings; Sunshine Act, 42274 See Antitrust Division Operating licenses, amendments; no significant hazards See Drug Enforcement Administration considerations; biweekly notices, 42274–42290 See Immigration and Naturalization Service Applications, hearings, determinations, etc.: See Justice Programs Office Cleveland Electric Illuminating Co. et al., 42272–42273 NOTICES Pollution control; consent judgments: Office of United States Trade Representative Georgia Pacific Corp., 42266–42267 See Trade Representative, Office of United States Gerbaz, Dennis, et al., 42267 Riehl, Ralph, et al., 42267 Postal Service Yellow Cab Cooperative Asssociation, 42267–42268 PROPOSED RULES Justice Programs Office Postal electronic commerce services; development, 42219– NOTICES 42222 Agency information collection activities: Proposed collection; comment request, 42270–42271 Public Health Service See Agency for Toxic Substances and Disease Registry Land Management Bureau See Centers for Disease Control and Prevention NOTICES See Food and Drug Administration Realty actions; sales, leases, etc.: See National Institutes of Health Arizona, 42261 New Mexico, 42261–42262 Railroad Retirement Board NOTICES Minority Business Development Agency Meetings; Sunshine Act, 42290 NOTICES Business development center program applications: Texas et al., 42232–42234 Securities and Exchange Commission NOTICES National Archives and Records Administration Self-regulatory organizations; proposed rule changes: NOTICES Boston Stock Exchange, Inc., 42297 Meetings: MBS Clearing Corp., 42298 Records of Congress Advisory Committee, 42271 Philadelphia Stock Exchange, Inc., 42298–42299 Applications, hearings, determinations, etc.: National Institutes of Health American Skandia Life Assurance Corp. et al., 42290– NOTICES 42292 Meetings: Prudential Institutional Fund et al., 42293–42295 Research Grants Division special emphasis panels, Southeast Interactive Technology Fund I, LLC, et al., 42260–42261 42295–42297

National Labor Relations Board Surface Transportation Board NOTICES RULES Meetings; Sunshine Act, 42271 Practice and procedure: Licensing and related services; user fees, 42190–42194 National Park Service NOTICES Concession contract negotiations: Tennessee Valley Authority Katmai National Park, AK; Katmailand, Inc.; lodging, NOTICES food service, etc., 42262 Environmental statements; availability, etc.: Meetings: LSP Energy L.P.; option purchase agreement for supply of Dayton Aviation Heritage Commission, 42262 electric energy, 42299–42300 Keweenaw National Historic Park Advisory Commission, 42262–42263 Toxic Substances and Disease Registry Agency Mississippi River Coordinating Commission, 42263 See Agency for Toxic Substances and Disease Registry VI Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Contents

Trade Representative, Office of United States Separate Parts In This Issue NOTICES Asia Pacific Economic Cooperation (APEC): Part II Intellectual property rights contact point list; Environmental Protection Agency, 42318–42354 establishment and applications request, 42300–42301 Part III Department of Housing and Urban Development, 42356– Transportation Department 42366 See Federal Aviation Administration See Surface Transportation Board Part IV PROPOSED RULES Department of Education, 42368–42369 Computer reservation systems: Fair displays of airline services, 42208–42217 Prohibition of participating systems from engaging in level of participation that would be lower than level Reader Aids of participation in any other system, 42197–42208 Additional information, including a list of public laws, NOTICES telephone numbers, reminders, and finding aids, appears in Privacy Act: the Reader Aids section at the end of this issue. Systems of records, 42301–42306

Electronic Bulletin Board Treasury Department Free Electronic Bulletin Board service for Public Law See Customs Service numbers, Federal Register finding aids, and a list of See Internal Revenue Service documents on public inspection is available on 202–275– 1538 or 275–0920. Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Contents VII

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.

7 CFR 620...... 42137 1467...... 42137 9 CFR 317...... 42143 14 CFR 25...... 42144 71...... 42146 Proposed Rules: 39...... 42915 255 (2 documents) ...... 42197 42208 17 CFR 4...... 42146 26 CFR 1...... 42165 301...... 42178 Proposed Rules: 1...... 42217 39 CFR Proposed Rules: 701...... 42219 40 CFR Proposed Rules: 70...... 42222 261...... 42318 271...... 42318 302...... 42318 44 CFR 64...... 42179 47 CFR 64...... 42181 68...... 42181 73 (2 documents) ...... 42189 42190 Proposed Rules: 73 (6 documents) ...... 42228 42229, 42230 48 CFR 506...... 42190 547...... 42190 552...... 42190 49 CFR 1002...... 42190 42137

Rules and Regulations Federal Register Vol. 61, No. 158

Wednesday, August 14, 1996

This section of the FEDERAL REGISTER maximized for each Federal dollar spent Part 3015, Subpart V, published at 48 contains regulatory documents having general in the WRP. These mechanisms include FR 29115 (June 24, 1983). applicability and legal effect, most of which a comprehensive prioritization and Federal Domestic Assistance Program are keyed to and codified in the Code of ranking procedure for each site offered Federal Regulations, which is published under for enrollment in the program and the The title and number of the Federal 50 titles pursuant to 44 U.S.C. 1510. requirement for locally-determined Domestic Assistance Program, as found The Code of Federal Regulations is sold by easement payment caps based on the in the Catalog of Federal Domestic the Superintendent of Documents. Prices of agricultural land value. These Assistance, to which this rule applies new books are listed in the first FEDERAL mechanisms are developed and are: Wetlands Reserve Program—10.072. REGISTER issue of each week. implemented on a state-by-state basis, Paperwork Reduction Act with guidance and coordination from the National level of the agency, to No substantive changes have been DEPARTMENT OF AGRICULTURE ensure that regional and geophysical made in this final rule which affect the variations are addressed. The WRP costs recordkeeping requirements and Commodity Credit Corporation data indicate that the procedures in estimated burdens previously reviewed place are promoting cost-effectiveness. and approved under OMB control Natural Resources Conservation number 0578–0013. Service Copies of the cost-benefit assessment are available upon request from Robert Executive Order 12778 7 CFR Parts 620 and 1467 Misso, Program Manager, Watersheds This final rule has been reviewed in RIN 0578±AA16 and Wetlands Division, Natural accordance with Executive Order 12778. Resources Conservation Service, P.O. The provisions of this final rule are not Wetlands Reserve Program Box 2890, Washington, DC 20250. retroactive. Furthermore, except as AGENCY: Commodity Credit Corporation, Regulatory Flexibility Act provided at 16 U.S.C. 3837a(e)(2), the provisions of this final rule preempt Natural Resources Conservation Service, It has been determined that the USDA. State and local laws to the extent such Regulatory Flexibility Act is not laws are inconsistent with this final ACTION: Final rule. applicable to this rule because neither rule. Before an action may be brought in the CCC or NRCS are required by 5 SUMMARY: The Commodity Credit a Federal court of competent U.S.C. 553 or any other provision of law jurisdiction, the administrative appeal Corporation (CCC) and the Natural to publish a notice of proposed Resources Conservation Service (NRCS) rights afforded persons at 7 CFR Part rulemaking with respect to the subject 614 must be exhausted. are issuing its final rule for the matter of this rule. Wetlands Reserve Program. This rule Unfunded Mandates Reform Act of adopts as final the interim rule for the Environmental Evaluation 1995 Wetlands Reserve Program published on It has been determined through an June 1, 1995, responds to comments Pursuant to Title II of the Unfunded environmental review that this action is Mandates Reform Act of 1995, which received from the public during the a modification of the existing WRP and comment period, and incorporates the President signed into law on March is covered under the NRCS 1990 22, 1995, the affects of this rulemaking specific changes required by the Federal Environmental Assessment entitled, Agriculture Improvement and Reform action on State, local, and tribal ‘‘Wetlands Reserve Program— governments, and the public have been Act of 1996. The final rule will provide Environmental Assessment: Wetlands the process by which the Wetlands assessed. This action does not compel Reserve Provision of the Conservation the expenditure of $100 million or more Reserve Program is administered by the Program Improvements Act of 1990.’’ NRCS. by any State, local or tribal NRCS supplemented the environmental governments, or anyone in the private EFFECTIVE DATE: August 14, 1996. assessment to evaluate the changes to sector, and therefore a statement under FOR FURTHER INFORMATION CONTACT: the program made pursuant to the section 202 of the Unfunded Mandates Robert Misso, (202) 720–3534. Federal Agriculture Improvement and Reform Act of 1995 is not required. SUPPLEMENTARY INFORMATION: Reform Act of 1996. Copies of the environmental assessment with Discussion of Program Executive Order 12866 supplement are available upon request The NRCS published the current The Office of Management and Budget from: Robert Misso, Program Manager, regulations for the Wetlands Reserve (OMB) has determined that this final Watersheds and Wetlands Division, Program as an interim rule on June 1, rule is significant and was reviewed by Natural Resources Conservation Service, 1995 (60 FR 28511). Enacted on April 4, the Office of Management and Budget Post Office Box 2890, Washington, DC 1996, the Federal Agriculture under Executive Order 12866. Pursuant 20250. Improvement and Reform Act (the 1996 to § 6(a)(3) of Executive Order 12866, Act) authorized the enrollment of non- Executive Order 12372 CCC and NRCS prepared a cost-benefit easement acres into the program assessment of the potential impact of This program/activity is not subject to through the use of restoration cost-share the program. The assessment concluded the provisions of Executive Order 12372 agreements and made other minor that several mechanisms at the State and because it involves direct payments to changes to the focus of the program. National level of the agency are in place individuals and not to State and local This final rule adopts the procedures to ensure environmental benefits are officials. See notice related to 7 CFR outlined in the interim rule with the 42138 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Rules and Regulations addition of the few changes definition. Additionally, section 620.3(f) (HGM)) to evaluate wetland functions recommended during public comment is modified to include conservation and values more objectively. NRCS will and/or required by the 1996 Act. These districts by specific reference to clarify be better able to rank wetland sites for changes are described below. Minor that NRCS values the special WRP that differ, thus providing for more editorial changes have also been made partnership that it has with consistency within and between States. for clarification and administrative conservation districts in the effort to Compatible Uses purposes. The 1996 Act amended the improve the Nation’s soil, water, and Food Security Act of 1985 (the 1985 other natural resources, and NRCS will NRCS received four letters from State Act), Pub. L. 99–198, to provide that the continue to seek input from forestry organizations and one letter WRP should be funded by CCC. conservation districts in the from a State farm organization which Accordingly, this final rule is issued by administration of its programs. expressed opposition to language placed CCC and NRCS. The Consolidated Farm Service in the preamble to the WRP interim rule Agency (CFSA) is now known as the regarding compatible economic uses of Discussion of Comments Farm Service Agency (FSA). The rule is the easement area as it related to forest The NRCS received 16 comments amended to reflect this name change. management activities. NRCS also concerning the interim rule during the received a comment, however, from a 60-day public comment period that Utility Easements conservation organization which ended July 31, 1995. Respondents NRCS received two comments from supported the language used in the included national wildlife and utility companies, both of which preamble, suggesting that some conservation organizations, state expressed concern about how NRCS management approaches may not be agencies, public utilities, and one State would approach the overlapping of a consistent with the long-term protection farm organization. Two of the comments WRP easement with a utility easement. of wetland resources. simply indicated support for the WRP Utility easements are addressed during According to the WRP authorizing and did not offer specific suggested the title clearance process. During that language at 16 U.S.C. 3837a(d), changes. process, the NRCS must determine compatible economic uses, including whether: (1) NRCS can obtain a forest management, are permitted if Definitions subordination agreement from the consistent with the long-term protection NRCS received two comments utility easement holder; (2) the exercise and enhancement of the wetlands requesting slight modifications to the of the utility easement holder’s rights resources for which the easement was definitions in § 620.2 of the interim rule. would be consistent with the purposes established. In the preamble, NRCS One comment suggested that the of the WRP easement; or, (3) the simply indicated that harvesting definition for ‘‘State Technical exercise of the utility easement holder’s methods which are not consistent with Committee’’ be changed to allow the rights would undermine the purposes the long-term protection and State Conservationist flexibility in for which the WRP easement would be enhancement of wetland functions and delegating the chair position to other established. If the NRCS is unable to values on a particular easement area members of the committee. Currently, obtain a subordination agreement from will not be considered a compatible use. the State Conservationist may delegate the utility easement holder and the Upon request by a landowner, the NRCS the chair position to other NRCS exercise of that easement holder’s rights will evaluate the particular site on an personnel. Even so, implementation of would undermine the WRP easement, easement area and will make a the WRP at the state level remains the then the NRCS will not purchase a WRP determination of what silvicultural responsibility of the State easement on that property. One of these approach, timing, intensity, and Conservationist and therefore, no commenters also expressed support for duration may be considered compatible changes were made to the definition of the preference given permanent with the wetland functions and values. State Technical Committee. The easements by the interim rule. The document granting permission for commenter also suggested that the forest management activities, or any Water Quality definition of ‘‘wetland functions and other request for a compatible use, values’’ be revised from ‘‘social worth One utility company commenter specifies the amount, method, timing, placed upon these characteristics’’ to requested that the impact on drinking intensity, and duration of the use being ‘‘the socioeconomic value placed upon water sources be a ranking factor for granted. The NRCS, however, reserves these characteristics.’’ This change giving priority to purchasing a its ability to modify a particular use clarifies the intent of the interim rule particular easement. One of the should easement area conditions and is adopted in this final rule. conservation organizations also urged change. The management plan for an NRCS also received a comment from that easements that provided water easement area is a ‘‘living document’’ a state forestry agency requesting that quality functions receive priority and may be updated with additional ‘‘timber’’ be included in the definition treatment. Because water quality is one compatible use requests as they are for ‘‘wetland functions and values.’’ of the wetland functions for which the received from a landowner over time. NRCS did not adopt this change because easement is being established, the NRCS For example, the wetland functions the concept is incorporated in the considers in its ranking process, directly and values that are established by the current definition but the actual term is or indirectly, the impact an easement WRP restoration efforts are not available too specific for a nationwide program would have on drinking water sources. for mitigation purposes. However, at a which enrolls many different types of Currently, each State Conservationist, in later date, the landowner may request wetlands with differing wetlands consultation with the State Technical permission from the NRCS to enhance functions and values. Committee, will determine the weight further the functions and values Another commenter indicated that the that water quality in general, and impact established by the WRP restoration definition of ‘‘Conservation Districts’’ be on drinking water specifically, should effort. If the NRCS determines that the modified to reflect better the mission of receive in the ranking process. In the enhancement action is a compatible use conservation districts. The NRCS adopts future, NRCS along with other agencies and is clearly beyond the scope of the suggested language as an with wetland responsibilities will use a restoration actions that would be improvement to the clarity of the system (Hydrogeomorphic Modeling feasible under any subsequent WRP Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Rules and Regulations 42139 restoration efforts, the additional a 30-year easement shall be between 50 Environmental Conservation Acreage increment of functions and values percent and 75 percent of that which Reserve program, the Secretary of which directly result from the would have been paid for a permanent Agriculture may designate areas as landowner’s approved enhancement easement. conservation priority areas to assist action may be available to meet One commenter noted that the landowners to meet nonpoint source mitigation requirements under other $50,000 annual easement payment pollution requirements and other federal, state, or local law. limitation discriminated unduly against conservation needs. No matter the use, the test remains: the acquisition of less than permanent The 1996 Act effects several changes ‘‘Is a particular proposed use consistent easements. The interim final rule had to the administration of the WRP. In with the long-term protection and established the $50,000 annual particular, the 1996 Act amendments enhancement of the wetlands resources easement payment cap for all non- authorize the enrollment of land into for which the easement was established permanent easement acquisitions. the Wetlands Reserve Program until and Federal funds expended?’’ This However, by statute, the $50,000 annual 2002, establishes a program cap at approach is consistent with the WRP easement payment limitation for non- 975,000 acres, and provides that eligible statute and does not require any change permanent easements is a discretionary land must maximize wildlife benefits to the WRP rule. cap. As such, the NRCS has determined and wetland functions and values. that in special circumstances involving The 1996 Act amendments also Non-permanent Easements projects with partnership funding or require that, to the extent practicable The NRCS received four comments in participation, a greater annual easement beginning October 1, 1996, one-third of which the commenters expressed payment amount may be available. the remaining program acres be enrolled concern that the interim rule gave such Additionally, the statute provides that through the use of permanent priority to the enrollment of permanent payments are exempted from the easements, one-third through the use of easements that the enrollment of non- payment limitation if the payment is 30-year easements, and one-third permanent easements would be received by a State, political through the use of restoration cost-share completely excluded from the program. subdivision, or agency thereof in agreements. Further, after October 1, One commenter expressed the concern connection with agreements entered 1996, no new permanent easement can that the priority placed on permanent into under a special wetland and be enrolled until at last 75,000 acres of easements overshadowed the other environmental enhancement program non-permanent easement are enrolled in priority mandated by statute. In carried out by that entity that has been the program. Section 721 of the particular, the WRP authorizing approved by NRCS. The final rule is agriculture Appropriations Act, enacted legislation at 16 U.S.C. 3837c(d) amended accordingly. August 6, 1996, stated that this provides that priority should be placed Section 620.17 addresses the condition on enrollment ‘‘shall be on acquiring easements based on the administrative appeal procedures to be deemed met upon the enrollment of value of the easement for protecting and used when a person desires review of an 43,333 acres through the use of enhancing habitat for migratory birds administration determination temporary easements: Provided further and other wildlife. concerning eligibility for participation. that the Secretary shall not enroll acres Sections 620.8(b)(4) and (5) of the rule The interim final rule for the National ** * through the use of new require that the NRCS consider whether Appeals Division (NED) Rules of permanent easements in fiscal year 1998 any permanent easement offer has the Procedures, 60 FR 67298 (December 29, until the Secretary has enrolled at least ecological and cost characteristics 1995), amended § 620.17 to include 31,667 acres in the program through the which warrants acquisition before reference to 7 CFR Part 780 and 7 CFR use of temporary easements.’’ In proceeding to acquire a non-permanent Part 11. The NAD interim final rule also recognition that the NRCS must enroll easement. The commenters recognized amended 7 CFR Part 614, the NRCS lands that maximize wildlife benefits that non-permanent easements receive a appeals procedures originally and other wetland functions and values, different easement payment than a referenced in § 620.17. Part 614, as achieve cost-efficient restoration, and permanent easement, but either did not amended, references the other appeal provide the three identified enrollment express specific opposition to the procedures at 7 CFR Part 780 and 7 CFR approaches, the NRCS will emphasize differentiated payment rate or expressed Part 11, and their additional mention in enrolling lands that have the least support for it. The 1996 Act § 620.17 is therefore redundant. This likelihood of being reconverted. The amendments require, to the extent final rule amends § 620.17 to remove the NRCS will work with landowners and practicable after October 1, 1996, that redundant reference to 7 CFR Part 780 other conservation partners to achieve NRCS enroll one-third of total program 7 CFR Part 11. these lasting benefits for wetland acres through the use of 30-year resources. easements. Discussion of the Federal Agriculture Through several public forums across In response to the comments received Improvement and Reform Act the county, the NRCS received and explicit direction from statute, The Federal Agriculture Improvement comments from the public about the NRCS has removed §§ 620.8(b)(4) and and Reform Act (the 1996 Act) was new conservation programs and the (5) and thus eliminated these particular enacted on April 4, 1996. The 1996 Act changes to existing conservation constraints upon the enrollment of non- amended the Food Security Act of 1985, programs as a result of the enactment of permanent easements. The 1996 16 U.S.C. 3801 et seq., to re-authorize the 1996 Act. The NRCS greatly amendments also provided that the the Environmental Conservation appreciates the input provided by the restoration cost-share rate for a 30-year Acreage Reserve Program as the public through the forums and written easement should be from 50 to 75 umbrella conservation program comments submitted to the agency. The percent. The interim rule provided that encompassing the Conservation Reserve NRCS will consider these comments the easement payment rate for a non- Program (16 U.S.C. 3831–3836), the during the formulation of its policies permanent easement should parallel the newly-created Environmental Quality and guidelines. restoration cost-share rate. Therefore, Incentives Program (16 U.S.C. 3840), Many of the changes to the WRP § 620.8(b)(3) has been amended to and the Wetlands Reserve Program (16 required by the 1996 Act are directives indicate that the easement payment for U.S.C. 3837 et seq.). Under the to the agency which do not impact the 42140 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Rules and Regulations

WRP rule. Some of the amendments, cap only apply to acres enrolled in the either equal or unequal size. Therefore, however, require specific, non- Conservation Reserve Program (CRP) § 620.8(e) and § 620.13(b)(1), which discretionary changes to the WRP and the WRP, and not all acres enrolled incorporated the original statutory regulations. Since these changes are in the Environmental Conservation provisions as to payments, are amended mandatory and do not require agency Acreage Reserve Program. Therefore, the to reflect this specific change in law interpretation, the CCC and NRCS have reference to the Environmental regarding easement payments. incorporated them into this final rule. Conservation Acreage Reserve Program Section 620.9 and 620.10 The following sections and parts are in § 620.4(b)(1) has been replaced with impacted: specific reference to the CRP and the To reflect that the NRCS shall enroll WRP. In addition to consideration of land into the WRP through the use of Section 620.2 any adverse effect on the local economy, restoration cost-share agreements, The 1966 Act made several changes to the 1996 Act amendments require that section 620.9 is amended by adding other programs which relate to WRP, a waiver from the county caps can only specific reference to restoration cost- including the wetland conservation be approved if operators in the county share agreements and making associated provisions, 7 CFR Part 12, and the are having difficulties complying with editorial adjustments to this new type of Conservation Reserve Program, 7 CFR the conservation plans implemented enrollment mechanism. Additionally, Parts 704 and 1410. Therefore, certain under 16 U.S.C. 3812. Therefore, the 1996 Act amendments provide that definitions are removed from this part to § 620.4(b)(2) has been amended to the cost-share rate for restoration avoid any inconsistencies with the incorporate this new criterion. associated with 30-year easements shall implementation of these other The 1996 Act amendments expanded be no less than 50 nor more than 75 provisions. the eligibility criteria to require percent. Section 620.9(a) incorporates specifically that land enrolled in the this new statutory provision. Section 620.3 program maximize wildlife benefits. Likewise, the requirements in The 1996 Act requires the Department Therefore, § 620.4(d) is amended to § 620.10, such as the granting of an of Agriculture to avoid duplication of incorporate the additional eligibility easement to the United States, are conservation plans required for the criterion. specific to enrollment into the program implementation of the highly erodible The 1985 Act provides that pasture through the use of an easement and not land conservation provisions of the land established to trees under the CRP restoration cost-share agreements. Food Security Act of 1985, CRP, and the is ineligible for enrollment in the WRP. Therefore, the heading to § 620.10 WRP. In response to this requirement, Even though such lands were not reflects that the section is no longer § 620.3(h) is amended to include enrolled in the program, specific applicable as ‘‘Program requirements’’ coordination of the development of mention of this ineligibility provision but now more appropriately refers to conservation plans as an additional goal was not made in the interim rule. easement enrollment requirements. in the administration of the WRP. The Section 620.4(e) is amended to Section 620.11 1996 Act amendments also provide that incorporate specifically this statutory areas may be designated as conservation provision. The 1996 Act amendments provide priority areas to help producers comply that the development of the restoration Section 620.7 with nonpoint source pollution plan shall be made through the local requirements and other conservation The 1996 Act amendments require NRCS representative, in consultation needs. Therefore, a new sentence is that after October 1, 1996, to the extent with the State Technical Committee. added to § 620.3(h) that the Secretary of practicable, the NRCS enroll one-third The 1996 Act amendments also removes Agriculture may designate areas as of the acres through the use of the specific requirement that conservation priority areas to assist permanent easements, one-third of the consultation with the Department of the landowners to meet nonpoint source acres through the use of 30-year Interior means agreement at the local pollution requirements and other easements, and one-third of the acres level and consultation at the State level. conservation needs. through the use of restoration cost-share Therefore, NRCS has added these agreements. The NRCS has considered changes to § 620.11 by 1) by removing Section 620.4 land enrolled in the program at the time the regulatory language in paragraph (a) The 1996 Act amendments authorize the NRCS determines that a landowner’s which required agreement with the U.S. the enrollment of acres into the WRP offer is eligible, funds are committed to Fish and Wildlife Service at the local through the use of restoration cost-share acquire that particular easement, and level, and 2) replacing the language with agreements. Therefore, the first sentence the landowner agrees to continue in the a new paragraph (a) which now of § 620.4 has been amended to include program. Because the 1996 Act references the development of the plan the term ‘‘restoration cost-share amendments require that the NRCS by the local NRCS representative. agreements.’’ track the total acres enrolled through the Section 620.14 The 1996 Act amendments links use of permanent easements, 30-year eligibility for WRP easement or cost- easements, and restoration cost-share During the implementation of the share payments to the highly erodible agreements, § 620.7(b) is amended to program under the interim rule, land and wetland conservation clarify that enrollment occurs at this confusion arose regarding the language provisions of the 1985 Act, 16 U.S.C. stage in the process. in § 620.14 about ‘‘associated’’ contract. 3801 et seq., 7 CFR part 12. Therefore, The term ‘‘associated’’ was intended to landowner eligibility, § 620.4(c), is Sections 620.8 and 620.13 mean a contract ‘‘associated with the amended to reflect that a person may The 1996 Act amends 16 U.S.C. program’’ other than the easement deed. not be eligible for participation in WRP 3837a(f) to eliminate the specific As stated, the term ‘‘associated’’ if the requirements of 7 CFR part 12 reference to lump sum payments for inadvertently created the mistaken have not been met. permanent easements only, and further conclusion that the contract is attached The 1996 Act amendments specify provides that annual compensation for to the easement deed. Therefore, the that the 25 percent county enrollment any easement may be in not less than 5 term ‘‘associated’’ has been removed to cap and the 10 percent county easement nor more than 30 annual payments of improve the clarity of this section. Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Rules and Regulations 42141

Parts 620 and 1467 Agency, the NRCS and the Farm Service Commodity Credit Corporation pursuant Because funds of the Commodity Agency will seek agreement in to 16 U.S.C. 3831–3836. Credit Corporation shall be used for establishing policies, priorities, and * * * * * administration of the WRP, the WRP guidelines related to the Contract means the document that rule is moved from Part 620 to Part 1467 implementation of this part. specifies the obligations and rights of of Title VII of the CFR. Furthermore, * * * * * any person who has been accepted for certain administrative responsibilities (f) The Department may enter into participation in the program. may be assumed by other agencies with cooperative agreements with Federal or * * * * * the Department of Agriculture, and the State agencies, conservation districts, Department means the United States rule is modified accordingly. and private conservation organizations Department of Agriculture (USDA) and includes the Commodity Credit List of Subjects in 7 CFR Part 1467 to assist the NRCS with educational efforts, easement management and Corporation or any USDA agency or Administrative practice and monitoring, outreach efforts, and instrumentality delegated program procedure, Agriculture, Soil program implementation assistance. responsibility by the Secretary of conservation, Wetlands. (g) * * * The NRCS may consult with Agriculture. Accordingly, the interim rule * * * * * establishing 7 CFR part 620 which was the Forest Service, other Federal or State agencies, conservation districts or other Person means an individual, published at 60 FR 28511 on June 1, partnership, association, corporation, 1995, is adopted as a final rule with the organizations in program administration. No determination by the estate or trust, or other business following changes: enterprise or other legal entity and, 1. In 7 CFR, chapter VI, part 620 is re- U.S. Fish and Wildlife Service, the whenever applicable, a State, a political designated as chapter XIV, part 1467, Forest Service, Federal or State agency, subdivision of a State, or any agency and the sections are re-designated as set conservation district, or other thereof. forth below: organization shall compel the NRCS to take any action with the NRCS * * * * * New sec- determines will not serve the purposes Wetland functions and values means Old section tion of the program established by this part. the hydrological and biological (h) The Chief may allocate funds for characteristics of wetlands and the 620.1 ...... 1467.1 such purposes related to: special pilot socioeconomic value placed upon these 620.2 ...... 1467.3 characteristics, including: * ** 620.3 ...... 1467.2 programs for wetland management and 620.4 ...... 1467.4 monitoring; acquisition of wetland * * * * * 620.5 ...... 1467.5 easements with emergency funding; 6. Section 1467.4 is amended by 620.6 ...... 1467.6 cooperative agreements with other revising the first sentence of paragraph 620.7 ...... 1467.7 Federal or State agencies for program (a), and revising paragraphs (b)(1), the 620.8 ...... 1467.8 implementation; coordination of second sentence of (b)(2), the 620.9 ...... 1467.9 easement enrollment across State introductory text of (c), paragraph (d)(2), 620.10 ...... 1467.10 the introductory text of (d)(3), and 620.11 ...... 1467.11 boundaries; coordination of the 620.12 ...... 1467.12 development of conservation plans; or, paragraph (e)(2) to read as follows: for other goals of the WRP found in this 620.13 ...... 1467.13 § 1467.4 Program requirements. 620.14 ...... 1467.14 part. The Department may designate 620.15 ...... 1467.15 areas as conservation priority areas (a) General. Under the WRP, the 620.16 ...... 1467.16 where environmental concerns are Department may purchase conservation 620.17 ...... 1467.17 especially pronounced and to assist easements from, or enter into restoration 620.18 ...... 1467.18 landowners in meeting nonpoint source cost-share agreements with, eligible pollution requirements and other landowners who voluntarily cooperate PART 1467ÐWETLANDS RESERVE conservation needs. in the restoration and protection of PROGRAM wetlands and associated lands. * ** 5. Section 1467.3 is amended by (b) * * * 2. The authority citation for re- removing the definitions for ‘‘Farmed (1) Except for areas devoted to designated part 1467 continues to read wetland’’, ‘‘Farmed wetland pasture’’, windbreaks or shelterbelts after as follows: and ‘‘Prior converted cropland’’; by November 28, 1990, no more than 25 revising the definitions for percent of the total cropland in any Authority: 16 U.S.C. 590a, et seq.; and 16 ‘‘Conservation District’’, ‘‘Conservation U.S.C. 3837, et seq. county, as determined by the Farm Reserve Program’’, ‘‘Contract’’, ‘‘Person’’ 3. Section 1467.1 is amended by Service Agency, may be enrolled in the and the introductory text of ‘‘Wetlands CRP and the WRP, and no more than 10 revising the heading to the section to functions and values’’; and by adding a read as follows: percent of the total cropland in the definition for ‘‘Department’’ to read as county may be subject to an easement § 1467.1 Applicability. follows: acquired under the CRP and the WRP. * * * * * § 1467.3 Definitions. (2) * * * Such a waiver will only be approved if it will not adversely affect 4. Section 1467.2 is amended by * * * * * revising paragraphs (c), (f), and (h) and the local economy, and operators in the Conservation District is a subdivision amending paragraph (g) by revising the county are having difficulties complying of a State government organized second and third sentences to read as with the conservation plans pursuant to applicable State law to follows: implemented under 16 U.S.C. 3812. promote and undertake actions for the (c) Landowner eligibility. The NRCS § 1467.2 Administration. conservation of soil, water, and other may determine that a person is not * * * * * natural resources. eligible to participate in the WRP or (c) As determined by the Chief and Conservation Reserve Program (CRP) receive any WRP payment because the the Administrator of the Farm Service means the program administered by the person did not comply with the 42142 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Rules and Regulations provisions of 7 CFR part 12. To be (d) Revising re-designated paragraph 11. In § 1467.10, the heading for the eligible to enroll an easement in the (e)(2); and, section and paragraph (d)(5) are revised WRP, a person must: * ** (e) Revising paragraph (h). to read as follows: The revisions read as follows: * * * * * § 1467.10 Easement participation (d) * * * § 1467.8 Compensation for easements. requirements. * * * * * * * * * * * * * * * (2) Land shall only be considered (b) * * * (d) * * * eligible for enrollment in the WRP if the (3) Easement payments for non- (5) Have the option to enter into an NRCS determines, in consultation with permanent easements will be less than agreement with governmental or private the U.S. Fish and Wildlife Service, that: those for permanent easements because organizations to assist in carrying out (i) Such land maximizes wildlife the quality and duration of the benefits and wetland values and any landowner responsibilities on the ecological benefits derived from a non- easement area; functions; permanent easement are significantly * * * * * (ii) The likelihood of the successful less than those derived from a 12. In § 1467.11, paragraph (a) is restoration of such land and the permanent easement on the same land. revised and a new sentence is added at resultant wetland values merit inclusion Additionally, the economic value of the the end of paragraph (b) to read as of such land in the program, taking into easement interests being acquired is less follows: consideration the cost of such for a non-permanent easement than that restoration; and associated with a permanent easement. § 1467.11 The WRPO development. (iii) Such land meets the criteria of An easement payment for the short-term (a) The development of the WRPO paragraph (d)(3) of this section. 30-year easement shall not be less than (3) The following land may be eligible shall be made through the local NRCS 50 percent nor more than 75 percent of for enrollment in the WRP, which land representative, in consultation with the that which would have been paid for a State Technical Committee, and with may be identified by the NRCS pursuant permanent easement. to regulations and implementing consideration of site specific technical policies pertaining to wetland * * * * * input from the U.S. Fish and Wildlife (e) * * * conservation found at 7 CFR part 12, as: Service and the Conservation District. (2) Annual easement payments may (b) * * * The WRPO shall be *** be made in no less than 5 annual * * * * * developed to ensure that cost-effective payments and no more than 30 annual restoration and maximization of wildlife (e) * * * payments of equal or unequal size. (2) Land that contains timber stands benefits and wetland functions and established under a CRP contract or * * * * * values will result. (h) Payment limitation on non- pasture land established to trees under 13. In § 1467.12, paragraph (b) is permanent easements. With respect to a CRP contract. revised to read as follows: non-permanent easements, the annual * * * * * amount of easement payments to any § 1467.12 Modifications. 7. In § 1467.6, paragraphs (a) through person may not exceed $50,000 except * * * * * (c) are re-designated as paragraphs (b) for: (b) WRPO. Insofar as is consistent through (d), a new paragraph (a) is (1) Payments made pursuant to with the easement and applicable law, added to read as follows: projects involving partnership funding the State Conservationist may approve § 1467.6 Establishing priority for or participation; or modifications to the WRPO that do not enrollment of properties in WRP. (2) Payment received by a State, affect provisions of the easement in (a) The NRCS shall place priority on political subdivision, or agency thereof consultation with the landowner and the enrollment of those lands that will in connection with agreements entered the State Technical Committee and maximize wildlife values (especially into under a special wetland and following consideration of site specific related to enhancing habitat for environmental enhancement program technical input from the U.S. Fish and migratory birds and other wildlife); have carried out by that entity that has been Wildlife Service and the Conservation the least likelihood of re-conversion and approved by NRCS. District. Any WRPO modification must loss of these wildlife values at the end * * * * * meet WRP program objectives, and must of the WRP enrollment period; and that 10. In § 1467.9, the first sentence of result in equal or greater wildlife involve State, local, or other partnership the introductory text of paragraph (a) benefits, wetland functions and values, matching funds and participation. and paragraph (a)(2) are revised to read ecological and economic values to the as follows: * * * * * United States. Modifications to the 8. Section 1467.7 is amended by § 1467.9 Cost-share payments. WRPO which are substantial and affect provisions of the easement will require revising the heading to the section and (a) The Department may share the cost agreement from the landowner and the heading to paragraph (b) to read as with landowners of restoring the require execution of an amended follows: enrolled land as provided in the easement. WRPO.* * * § 1467.7 Enrollment of easements. 14. Section 1467.13 is amended by * * * * * * * * * * revising paragraph (b)(1) to read as (b) Effect of letter of intent to continue (2) On enrolled land subject to a non- follows: (enrollment). *** permanent easement or restoration cost- share agreement, the Department shall § 1467.13 Transfer of land. * * * * * 9. Section 1467.8 is amended by offer to pay not less than 50 percent nor * * * * * (a) Revising paragraph (b)(3); more than 75 percent of such costs. (b) * * * (b) Removing paragraphs (b)(4), (b)(5), Restoration cost-share payments offered (1) For easements with multiple and (e)(2); by NRCS for the short-term, 30-year annual payments, any remaining (c) Re-designating paragraph (e)(3) as easements shall be 50 to 75 percent. easement payments will be made to the (e)(2); * * * * * original landowner unless the Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Rules and Regulations 42143

Department receives an assignment of comments within the scope of this rule, with heightened consumer awareness, proceeds. FSIS will withdraw this rule and the use of nutritional labeling, and the * * * * * publish a proposed rule for public use of unit pricing at the retain level, 15. In § 1467.14, remove the word comment. FSIS agrees with the petitioner that this ‘‘associated’’ from paragraphs (a) and ADDRESSES: Send an original and two labeling requirement is no longer (c). copies of written comments to: FSIS needed. 16. Section 1467.17 is amended by Docket Clerk, Docket #96–005DF, Room Therefore, FSIS is amending the revising paragraph (a) to read as follows: 4352, South Agriculture Building, Food Federal meat inspection regulations by Safety and Inspection Service, U.S. removing the labeling requirement for § 1467.17 Appeals. Department of Agriculture, Washington, shingle packed bacon packed in other (a) A person participating in the WRP DC 20250. than 8-ounce, 1-pound, or 2-pound may obtain a review of any FOR FURTHER INFORMATION CONTACT: Ms. containers in § 317.2(h)(13). FSIS is also administrative determination Cheryl Wade, Director, Food Labeling removing the language that refers to 8- concerning eligibility for participation Division, Regulatory Programs, Food ounce, 1-pound, and 2-pound packages utilizing the administrative appeal Safety and Inspection Service, U.S. of shingle packed bacon from regulations provided in 7 CFR part 614. Department of Agriculture, Washington, § 317.2(h)(9)(v). This action provides the * * * * * DC 20250, Area Code (202) 254–2590. same requirements for net weight 17. In addition to the amendments set statements for all sizes of shingle forth above, in 7 CFR part 1467 remove SUPPLEMENTARY INFORMATION: packed bacon. the words ‘‘Consolidated Farm Service Background Effective Date Agency’’ wherever they appear and add, FSIS has been petitioned to amend in their place, the words ‘‘Farm Service the Federal meat inspection regulations This rule is being published without Agency’’. by removing an obsolete labeling a prior proposal because this action is 18. In addition to the amendments set requirement for certain sizes of shingle viewed as noncontroversial, and FSIS forth above, in 7 CFR part 1467 remove packed bacon. (Shingle packed bacon is does not anticipate any adverse public the word ‘‘NRCS’’ whenever it appears sliced bacon packed in overlapping comments will be received. This rule and add, in its place, the word rows usually contained in a rectangular will be effective 60 days after the date ‘‘Department’’. package.) of publication in the Federal Register Signed at Washington, D.C. on August 8, Section 317.2(h)(13) of the Federal unless FSIS receives written adverse 1996. meat inspection regulations requires comments or written notice of intent to Paul Johnson, that the labeling of packages of bacon submit adverse comments within 30 Chief, Natural Resources Conservation not in 8-ounce, 1-pound, or 2-pound days of the date of publication of this Service, Vice President, Commodity Credit containers display the net quantity of rule in the Federal Register. Corporation. the contents (net weight statement) with If no adverse comments are received, [FR Doc. 96–20623 Filed 8–13–96; 8:45 am] the same prominence as the largest FSIS will publish a notice in the BILLING CODE 3410±16±M feature of the label. In addition, the Federal Register confirming that the statement must be printed in a color of rule is effective on the date indicated. ink that contrasts sharply with the Executive Order 12866 and Effect on Food Safety and Inspection Service label’s background. Small Entities Section 317.2(h)(9)(v) provides that 9 CFR Part 317 shingle packed bacon packed in 8- This rule is considered not significant [Docket No. 96±005DF] ounce, 1-pound, or 2-pound containers and therefore has not been reviewed by is exempt from the labeling the Office of Management and Budget. RIN 0583±AC08 requirements regarding: (1) the The Administrator, FSIS, has placement of the net weight statement determined that this rule will not have Net Weight Statement for Shingle a significant impact on a substantial Packed Bacon within the bottom 30 percent of the principal display panel, and (2) the number of small entities. The rule AGENCY: Food Safety and Inspection expression of the net weight statement merely removes an obsolete labeling Service, USDA. in terms of both pounds and ounces, if requirement for shingle packed bacon ACTION: Direct final rule; request for the net weight statement appears in a packed in other than 8-ounce, 1-pound, comments. conspicuous manner on the principal or 2-pound containers. display panel. Executive Order 12778 SUMMARY: The Food Safety and Historically, shingle packed bacon Inspection Service (FSIS) is amending was sold in 8-ounce, 1-pound, or 2- This rule has been reviewed under the Federal meat inspection regulations pound packages. Over time, bacon Executive Order 12778, Civil Justice by removing an obsolete labeling manufacturers began packing bacon of Reform. This rule (1) preempts all State requirement for certain sizes of shingle different weights in the same size and local laws and regulations that are packed bacon. This rule applies the containers used for the traditional 8- inconsistent with this rule; (2) has no same requirements for net weight ounce, 1-pound, and 2-pound packages retroactive effect; and (3) does not statements to all sizes of shingle packed of bacon. For example, a 12-ounce require administrative proceedings bacon. package of bacon was packed in the before parties may file suit in court DATES: This rule will be effective on same size container as a 1-pound challenging this rule. October 15, 1996 unless FSIS receives package of bacon. To ensure that List of Subjects in 9 CFR Part 317 written adverse comments or written consumers were aware that there was notice of intent to submit adverse less product in the same-size container, Meat inspection, Food labeling. comments on or before September 13, FSIS promulgated regulations to For the reasons discussed in the 1996. If FSIS receives adverse comments highlight to consumers the net weight preamble, 9 CFR part 317 is amended as or notice of intent to submit adverse statement on these packages. However, follows: 42144 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Rules and Regulations

PART 317ÐLABELING, MARKING of safety equivalent to that established Model 550 airplanes are pressurized, DEVICES, AND CONTAINERS by the existing airworthiness standards. executive transport type airplanes, DATES: The effective date of these powered by two fuselage-mounted 1. The authority citation for part 317 special conditions is August 6, 1996. turbofan engines and approved under continues to read as follows: Comments must be received on or Type Certificate No A22CE. As changed, Authority: 21 U.S.C. 601–695; 7 CFR 2.18, before September 13, 1996. these airplanes will differ from 2.53. ADDRESSES: Comments on these special previously approved Model 550 2. Section 317.2 is amended by conditions may be mailed in duplicate airplanes, in part, by the installation of removing paragraph (h)(13) and revising to: Federal Aviation Administration, Pratt & Whitney Canada PW530A paragraph (h)(9)(v) to read as follows: Office of the Assistant Chief Counsel, engines with thrust reversers; trailing Attn: Rules Docket (ANM–7), Docket link landing gear; an Electronic Flight § 317.2 Labels: definition; required No. NM–130, 1601 Lind Avenue SW., Instrument System (EFIS); digital anti- features. Renton, Washington, 98055–4056; or skid system; structural, electrical, and * * * * * delivered in duplicate to the Office of hydraulic modifications to support the (h) * * * the Assistant Chief Counsel at the above engine and landing gear change; and a (9) * * * address. Comments must be marked: weight increase. The applicant intends (v) Sliced shingle packed bacon in Docket No. NM–130. Comments may be to introduce the changes in production rectangular packages is exempt from the inspected in the Rules Docket beginning with serial number 550–0801. requirements of paragraphs (h)(3) and weekdays, except Federal holidays, (h)(5) of this section regarding the Amended Type Certification Basis between 7:30 a.m. and 4:00 p.m. placement of the statement of the net Under the provisions of § 21.101 of 14 quantity of contents within the bottom FOR FURTHER INFORMATION CONTACT: Mark Quam, FAA, Standardization CFR part 21, Cessna Aircraft Company 30 percent of the principal display must show that the Model 550, as panel, and that the statement be Branch, ANM–113, Transport Airplane Directorate, Aircraft Certification changed, continues to meet the expressed both in ounces and in applicable provisions of the regulations pounds, if the statement appears in a Service, 1601 Lind Avenue SW., Renton, Washington, 98055–4056; incorporated by reference in Type conspicuous manner on the principal Certificate A22CE, or the applicable display panel. telephone (206) 227–2145; facsimile (206) 227–1149. regulations in effect on the date of * * * * * application for the change. The Done at Washington, DC, on: August 6, SUPPLEMENTARY INFORMATION: regulations incorporated by reference in 1996. Comments Invited the type certificate are commonly Michael R. Taylor, The FAA has determined that good referred to as the ‘‘original type Acting Under Secretary for Food Safety. cause exists for making these special certification basis.’’ The regulations, [FR Doc. 96–20540 Filed 8–13–96; 8:45 am] conditions effective upon issuance; including those referenced in A22CE, BILLING CODE 3410±DM±M however, interested persons are invited that apply to the Model 550, serial to submit such written data, views, or number 550–0801 and on, are as arguments as they may desire. follows: DEPARTMENT OF TRANSPORTATION Communications should identify the (1) Part 25 of the Federal Aviation regulatory docket and special condition Regulations effective February 1, 1965, Federal Aviation Administration number and be submitted in duplicate as amended by Amendments 25–1 through 25–17; with the following 14 CFR Part 25 to the address specified above. All communications received on or before exceptions: Section 25.305, as amended [Docket No. NM±130; Special Conditions the closing date for comments will be by Amendments 25–1 through 25–54. No. 25±ANM±120] considered by the Administrator. These Section 25.1401, as amended by Amendments 25–1 through 25–27. Special Conditions: Cessna Model 550 special conditions may be changed in light of the comments received. All Section 25.1387, as amended by (Serial Number 550±0801 and on); Amendments 25–1 through 25–30. High-Intensity Radiated Fields comments submitted will be available in the Rules Docket for examination by Sections 25.1303(a)(2) and 25.1385(c), AGENCY: Federal Aviation interested persons, both before and after as amended by Amendments 25–1 Administration, DOT. the closing date for comments. A report through 25–38. Sections 25.125, 25.251, 25.337, ACTION: Final special conditions; request summarizing each substantive public for comments. contact with FAA personnel concerning 25.493, 25.731, 25.733, 25.735, 25.867, this rulemaking will be filed in the 25.869, 25.901, 25.903, 25.933, 25.934, SUMMARY: These special conditions are docket. Persons wishing the FAA to 25.939, 25.943, 25.951, 25.952, 25.1001, issued for the Cessna Model 550 acknowledge receipt of their comments 25.1041, 25.1043, 25.1045, 25.1091, airplane, serial number 550–0801 and submitted in response to this request 25.1093, 25.1103, 25.1121, 25.1123, on. These airplanes utilize new must submit with those comments a 25.1143, 25.1163, 25.1165, 25.1181, avionics/electronic systems, such as an self-addressed, stamped postcard on 25.1183, 25.1185, 25.1189, 25.1195, Electronic Flight Instrument Systems which the following statement is made: 25.1197, 25.1203, 25.1205 (revoked), (EFIS), which perform critical functions. ‘‘Comments to Docket No. NM–130.’’ 25.1207, 25.1305, 25.1316, 25.1322, The applicable regulations do not The postcard will be date stamped and 25.1326, 25.1337, 25.1351, 25.1438, contain adequate or appropriate safety returned to the commenter. 25.1521, 25.1549, and 25.1551, as standards for the protection of this amended by Amendments 25–1 through system from the effects of high-intensity Background 25–82. radiated fields (HIRF). These special On June 30, 1994, Cessna Aircraft (2) Part 36 of the Federal Aviation conditions contain the additional safety Company, One Cessna Boulevard, Regulations effective December 1, 1969, standards that the Administrator Wichita, Kansas, applied for a type plus any amendments in effect at the considers necessary to establish a level design change to the Model 550. The time of certification. Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Rules and Regulations 42145

(3) Part 34 of the Federal Aviation control airplanes have made it necessary Peak (V/ (Aver- Regulations effective September 10, to provide adequate protection. Frequency M) age (V/ 1990, plus any amendments in effect at To ensure that a level of safety is M) the time of engine manufacture. achieved equivalent to that intended by the regulations incorporated by 12 GHz±18 GHz ...... 3,500 360 (4) For Electronic Flight Instrument 18 GHz±40 GHz ...... 2,100 750 Systems only, compliance must be reference, a special condition is needed demonstrated for the additional for the Cessna Model 550, serial number As discussed above, these special regulations: Sections 25.1301, and 550–0801 and on, as modified by Cessna conditions are applicable to those 25.1303(b), as amended by Amendments Aircraft Company, which requires that Cessna Model 550 airplanes that utilize 25–1 through 25–38; 25.1309, 25.132 (a), new electrical and electronic systems, avionics/electronics systems which (b), (d) and (e), 25.1331, 25.1333, and such as the EFIS, that perform critical perform critical functions. Should 25.1335, as amended by Amendments functions be designed and installed to Cessna apply at a later date for an 25–1 through 25–41. preclude component damage and amended type certificate to include a These special conditions form an interruption of function due to both the new model or to modify any other additional part of the type certification direct and indirect effects of HIRF. model included on type Certificate No. basis. High-Intensity Radiated Fields (HIRF) A22CE to incorporate the same novel or If the Administrator finds that the With the trend toward increased unusual design feature, these special applicable airworthiness regulations power levels from ground-based conditions would apply to that model as (i.e., part 25, as amended) do not transmitters, plus the advent of space well, under the provisions of contain adequate or appropriate safety and satellite communications, coupled § 21.101(a)(1). Although the standards for the Cessna Model 550, with electronic command and control of manufacturer intends to introduce these serial number 550–0801 and on, because the airplane, the immunity of critical changes in production beginning with of a novel or unusual design feature, digital avionics systems, such as the serial number 550–0801, the special special conditions are prescribed under EFIS, to HIRF must be established. conditions would be equally applicable the provisions of § 21.16 to establish a It is not possible to precisely define to earlier airplanes if those airplanes are level of safety equivalent to that the HIRF to which the airplane will be modified to incorporate the same novel established in the regulations. exposed in service. There is also or unusual design features. Special conditions, as appropriate, are uncertainty concerning the effectiveness Conclusion issued in accordance with 14 CFR 11.49 of airframe shielding for HIRF. This action affects only certain design after public notice, as required by Furthermore, coupling of features on Cessna Model 550 airplanes, §§ 11.28 and 11.29(b), and become part electromagnetic energy to cockpit- serial number 550–0801 and on. It is not of the type certification basis in installed equipment through the cockpit a rule of general applicability and accordance with § 21.101(b)(2). window apertures is undefined. Based affects only the applicant who applied Special conditions are initially on surveys and analysis of existing HIRF to the FAA for approval of these features applicable to the model for which they emitters, an adequate level of protection are issued. Should the applicant apply on the airplane. exists when compliance with the HIRF The substance of the special for an amended type certificate to protection special condition is shown include a new model or to modify any conditions for this airplane has been with either paragraphs 1 OR 2 below: subject to the notice and comment other model included on the same type 1. A minimum threat of 100 volts per procedure in several prior instances and certificate to incorporate the same novel meter peak electric field strength from has been derived without substantive or unusual design feature, these special 10 KHz to 18 GHz. change from those previously issued. It conditions would also apply to the other a. The threat must be applied to the is unlikely that prior public comment model under the provisions of system elements and their associated would result in a significant change § 21.101(a)(1). Similarly, these special wiring harnesses without the benefit of from the substance contained herein. conditions would also apply to Model airframe shielding. 550 airplanes with serial numbers b. Demonstration of this level of For this reason, and because a delay earlier than 550–0801, if those airplanes protection is established through system would significantly affect the are modified to incorporate the same tests and analysis. certification of the airplane, which is novel or unusual design feature. 2. A threat external to the airframe of imminent, the FAA has determined that the following field strengths for the prior public notice and comment are Novel or Unusual Design Features frequency ranges indicated. unnecessary and impracticable, and The Cessna Model 550, serial number good cause exists for adopting these special conditions immediately. 550–0801 and on, incorporates new Peak (V/ (Aver- avionics/electronic systems, such as an Frequency age (V/ Therefore, these special conditions are M) M) electronic flight instrument system being made effective upon issuance. The FAA is requesting comments to allow (EFIS), that perform critical functions. 10 KHz±100 KHz ...... 50 50 These systems may be vulnerable to 100 KHz±500 KHz ...... 60 60 interested persons to submit views that high-intensity radiated fields (HIRF) 500 KHz±2 MHz ...... 70 70 may not have been submitted in external to the airplane. 2 MHz±30 MHz ...... 200 200 response to the prior opportunities for 30 MHz±100 MHz ...... 30 30 comment described above. Discussion 100 MHz±200 MHz ...... 150 33 List of Subjects in 14 CFR Part 25 There is no specific regulation that 200 MHz±400 MHz ...... 70 70 addresses protection requirements for 400 MHz±700 MHz ...... 4,020 935 Aircraft, Aviation safety, Reporting 700 MHz±1 GHz ...... 1,700 170 electrical and electronic systems from and recordkeeping requirements. 1 GHz±2GHz ...... 5,000 990 The authority citation for this special HIRF. Increased power levels from 2 GHz±4 GHz ...... 6,680 840 ground-based radio transmitters and the 4 GHz±6 GHz ...... 6,850 310 condition is as follows: growing use of sensitive electrical and 6 GHz±8 GHz ...... 3,600 670 Authority: 49 U.S.C. 106(g), 40113, 44701, electronic systems to command and 8 GHz±12 GHz ...... 3,500 1,270 44702, 44704. 42146 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Rules and Regulations

The Special Conditions Administration, 15000 Aviation Adoption of the Amendment Accordingly, pursuant to the Boulevard, Lawndale, California 90261, In consideration of the foregoing, the authority delegated to me by the telephone (310) 725–6556. Federal Aviation Administration Administrator, the following special SUPPLEMENTARY INFORMATION: amends 14 CFR part 71 as follows: conditions are issued as part of the type certification basis for the Cessna Model History PART 71Ð[AMENDED] 550, when equipped with avionics/ On June 27, 1996, the FAA proposed 1. The authority citation for 14 CFR electronics systems which perform to amend part 71 of the Federal Aviation part 71 continues to read as follows: critical functions. Regulations (14 CFR part 71) by 1. Protection from Unwanted Effects establishing a Class E airspace area at Authority: 49 U.S.C. 106(g), 40103, 40113, of High-Intensity Radiated Fields Coolidge, AZ (61 FR 33390). This action 40120; E.O. 10854, 24 FR 9565, 3 CFR, 1959– (HIRF). Each electrical and electronic will provide adequate controlled 1963 Comp., p. 389; 14 CFR 11.69. system that performs critical functions airspace to accommodate a GPS RWY 23 § 71.1 [Amended] must be designed and installed to and a VOR/DME RWY 05 SIAP at 2. The incorporation by reference in ensure that the operation and Collidge Municipal Airport, Coolidge, 14 CFR 71.1 of the Federal Aviation operational capability of these systems AZ. Administration Order 7400.9C, Airspace to perform critical functions are not Interested parties were invited to Designations and Reporting Points, adversely affected when the airplane is participate in this rulemaking dated August 17, 1995, and effective exposed to high-intensity radiated proceeding by submitting written September 16, 1995, is amended as fields. comments on the proposals to the FAA. follows: 2. For the purpose of this special No comments to the proposals were condition, the following definition received. Class E airspace designations Paragraph 6005 Class E airspace areas applies: Critical functions. Functions are published in paragraph 6005 of FAA extending upward from 700 feet or more above the surface of the earth. whose failure would contribute to or Order 7400.9C dated August 17, 1995, cause a failure condition that would and effective September 16, 1995, which * * * * * prevent the continued safe flight and is incorporated by reference in 14 CFR AWP AZ E5 Coolidge, AZ [New] landing of the airplane. 71.1. The E airspace designations listed Coolidge Municipal Airport, AZ Issued in Renton, Washington, on August in this document will be published (Lat. 32°56′00′′ N, long. 111°25′32′′ W) 6, 1996. subsequently in this Order. That airspace extending upward from 700 Darrell M. Pederson, The Rule feet above the surface bounded by a line Acting Manager, Transport Airplane beginning at lat. 32°19′55′′ N, long. Directorate, Aircraft Certification Service, This amendment to part 71 of the 111°24′00′′ W; thence west to lat. 32°17′20′′, ANM–100. Federal Aviation Regulations (14 CFR long. 111°44′30′′ N; thence north to lat. ° ′ ′′ ° ′ ′′ [FR Doc. 96–20756 Filed 8–13–96; 8:45 am] part 71) establishes a Class E airspace 32 58 50 N, long. 111 46 00 W; thence area at Coolidge, AZ. The development northeast to lat. 33°08′10′′ N, long. BILLING CODE 4910±13±M 111°10′20′′ W; thence southwest to lat. of a GPS SIAP to RWY 23 and a VOR/ ° ′ ′′ ° ′ ′′ DME SIAP to RWY 05 has made this 32 58 50 N, long. 111 04 15 W, thence southwest to the point of beginning. 14 CFR Part 71 action necessary. The effect of this action will provide adequate airspace * * * * * [Airspace Docket No. 95±AWP±40] for aircraft executing the GPS RWY 23 Issued in Los Angeles, California, on August 1, 1996. and VOR/DME. RWY 05 SIAP at Establishment of Class E Airspace; Harvey R. Riebel, Coolidge, AZ Coolidge Municipal Airport, Coolidge, AZ. Acting Manager, Air Traffic Division, AGENCY: Federal Aviation The FAA has determined that this Western-Pacific Region. Administration (FAA), DOT. regulation only involves an established [FR Doc. 96–20761 Filed 8–13–96; 8:45 am] ACTION: Final rule. body of technical regulations for which BILLING CODE 4910±13±M frequent and routine amendments are SUMMARY: This action establishes a Class necessary to keep them operationally E airspace area at Coolidge, AZ. The current. Therefore, this regulaton—(1) is COMMODITY FUTURES TRADING development of a Global Positioning not a ‘‘significant regulatory action’’ COMMISSION System (GPS) Standard Instrument under Executive Order 12866; (2) is not Approach Procedure (SIAP) to Runway a ‘‘significant rule’’ under DOT 17 CFR Part 4 (RWY) 23 and a VHF Ominidirectional Regulatory Policies and Procedures (44 Range/Distance Measuring Equipment Interpretation Regarding Use of FR 10034; February 26, 1979); and (3) Electronic Media by Commodity Pool (VOR/DME) approach to RWY 05 has does not warrant preparation of a made this action necessary. The Operators and Commodity Trading Regulatory Evaluation as the anticipated Advisors intended effect of this action is to impact is so minimal. Since this is a provide adequate controlled airspace for routine matter that will only affect air AGENCY: Commodity Futures Trading Instrument Flight Rules (IFR) operations traffic procedures and air navigation, it Commission. at Coolidge Municipal Airport, is certified that this rule will not have ACTION: Interpretation; Solicitation of Coolidge, AZ. a significant economic impact on a comment. EFFECTIVE DATE: 0901 UTC October 10, substantial number of small entities 1996. under the criteria of the Regulatory SUMMARY: The Commodity Futures FOR FURTHER INFORMATION CONTACT: Flexibility Act. Trading Commission (the William Buck, Airspace Specialist, ‘‘Commission’’ or ‘‘CFTC’’) is publishing Operations Branch, AWP–530, Air List of Subjects in 14 CFR Part 71 its views with respect to the use of Traffic Division, Western-Pacific Airspace, Incorporation by reference, electronic media for transmission and Region, Federal Aviation Navigation (air). delivery of Disclosure Documents, Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Rules and Regulations 42147 reports and other information by transmission and delivery of Disclosure and small, have established a presence commodity pool operators (‘‘CPOs’’), Documents, reports and other on the World Wide Web and on the commodity trading advisors (‘‘CTAs’’), information in a manner consistent with Internet. For instance, many securities and associated persons (‘‘APs’’) thereof, the Commodity Exchange Act (the brokerage houses now allow customers under the Commodity Exchange Act and ‘‘CEA’’ or ‘‘Act’’) 3 and the to place trades and to review account the Commission’s rules promulgated Commission’s regulations promulgated information over the Internet.8 Many thereunder. This interpretative guidance thereunder.4 mutual fund companies have is intended to assist CPOs, CTAs and The Expanding Electronic established sites on the World Wide their respective APs in using electronic Marketplace. In recent years, personal Web or on proprietary on-line services. media to comply with their disclosure computers have gained widespread These sites allow potential investors to and reporting obligations, and to entry into the mass market.5 Advances download prospectuses, transfer encourage continued research, in personal computers and related investments among multiple mutual development and use of electronic electronic media technology have funds, and complete subscription media for such purposes. The enabled large sectors of the general applications without having to wait for Commission also is announcing a pilot population to use computers to access such materials to arrive by postal mail.9 program for the electronic filing of CPO the Internet, proprietary on-line The futures industry has similarly and CTA Disclosure Documents with services, and multi-media applications been affected by developments in the Commission. The Commission seeks such as those stored on CD–ROMs. The electronic media. Many CTAs comment on the issues discussed in this use of personal computers to access the (including publishers of market release and any related issues, including Internet and proprietary on-line services newsletters), CPOs, FCMs and IBs have other areas as to which the Commission has been growing at a spectacular rate.6 established a presence on the Internet, could provide guidance concerning use This trend appears likely to continue or generally by operating or otherwise of electronic media for filing with the even accelerate.7 being listed on the World Wide Web. Commission or delivery to customers of The growing use of electronic media Use of the World Wide Web and the required reports. is significantly affecting the financial Internet appears to be an increasingly DATES: This interpretation is effective on services industry. Specifically, it has caused many changes in the way important component of the business October 15, 1996. Comments should be strategies of futures professionals. For received on or before October 15, 1996. industry participants gather, store, and communicate information. Electronic the most part, these registrants currently ADDRESSES: Comments should be media enable private investors as well are using electronic media to submitted to Jean A. Webb, Secretary of supplement their traditional paper- the Commission, Commodity Futures as market professionals to enjoy ready access to ‘‘real-time’’ trade data and based activities. However, many Trading Commission, 1155 21st Street, registrants have expressed strong N.W., Washington, D.C. 20581. In financial news. Similarly, industry professionals and private investors can interest in using electronic media to addition, comments may be sent by comply with various requirements of facsimile transmission to facsimile now quickly perform complex analyses of trade and market data. Both private the Act and Commission regulations. In number (202) 418–5521, or by electronic particular, registrants have indicated mail to [email protected]. investors and market professionals use electronic mail and message boards to that they are interested in electronically FOR FURTHER INFORMATION CONTACT: communicate and disseminate providing Disclosure Documents, Susan C. Ervin, Deputy Director/Chief information. obtaining acknowledgments of receipt of Counsel, Gary L. Goldsholle, Attorney/ Within the financial services industry, Disclosure Documents, compiling Advisor, Christopher W. Cummings, a wide range of businesses, both large indices of CTA and CPO performance Attorney/Advisor, or Tina Paraskevas and Disclosure Documents, and filing Shea, Attorney/Advisor, Division of and introducing brokers (‘‘IBs’’) at this time but has Disclosure Documents and other Trading and Markets, Commodity such issues under review. materials with the Commission. The Futures Trading Commission, 1155 21st 3 7 U.S.C. 1 et seq. (1994). rapid technological advances in 4 Street, N.W., Washington D.C. 20581. Commission rules are found at 17 CFR Ch. I computers and growth of electronic Telephone number: (202) 418–5450. (1996). The rules governing the obligations of CPOs and CTAs, including rules relating to disclosure media have brought the regulatory Facsimile number: (202) 418–5536. and reporting, recordkeeping and advertising, are issues raised by these developments to Electronic mail: [email protected] found at 17 CFR Part 4 (1996). the forefront of the Commission’s 5 Current estimates are that between thirty-five 10 SUPPLEMENTARY INFORMATION: and thirty-nine percent of households in the United agenda. I. Background States possess a computer. G. Christian Hill, ‘‘Tally of Homes With PCs Increased 16% Last Year,’’ Wall 8 Estimates of the number of on-line brokerage By this release, the Commission is Street Journal, May 21, 1996, at B10; ‘‘Too Good to accounts indicate rapid growth. According to one publishing its views with respect to the Last,’’ Economist, March 23, 1996, at 62. source, there were 412,000 on-line accounts in 1 6 The actual number of Internet users in the 1994, and the number is expected to surpass 1.3 use of electronic media by CPOs, CTAs million by 1998. Greg Miller and Tom Petruno, ‘‘For 2 United States above age 16 is the focus of debate and their respective APs, for and has been estimated between 16.4 and 22.0 Investors, the Internet has Promise, Perils,’’ Los million, as of August 1995. Peter H. Lewis, ‘‘New Angeles Times, June 4, 1996, at A1, A6. 1 For purposes of this release, the term Estimates in Old Debate on Internet Use,’’ New York 9 ‘‘Mutual Funds in Cyberspace,’’ The Investment ‘‘electronic’’ media refers to media such as Times, April 17, 1996, at D1. Lawyer, Vol. 2, No. 10, November 1995. audiotapes, videotapes, facsimiles, CD–ROM, 7 Daniel Akst, ‘‘Postcard from Cyberspace: Proof 10 As Acting Chairman John E. Tull noted in electronic mail, bulletin boards, Internet World of Skyrocketing Net Growth,’’ Los Angeles Times, March 14, 1996, in testimony before the Wide Web sites and computer networks (e.g., local February 28, 1996, at D4. The trend towards Subcommittee on Agriculture, Rural Development, area networks and commercial on-line services) Internet usage appears to be so strong that certain Food and Drug Administration and Related used to provide documents and information participants in the computer industry are Agencies of the House Committee on required by or otherwise affected by the Commodity developing ‘‘network computers,’’ low cost Appropriations: Exchange Act and the regulations promulgated computers whose primary purpose will be to The Commission is actively working to address thereunder. connect to the Internet. Don Clark, ‘‘Oracle Chief to market participants’ interest in using new 2 The Commission is not addressing the use of Unveil: ‘Info Appliances,’ But Will Consumers technologies to increase their efficiency and electronic media by other Commission registrants, Want to Buy Them?’’ Wall Street Journal, May 16, competitiveness. These efforts include: consulting such as futures commission merchants (‘‘FCMs’’) 1996, at B1. Continued 42148 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Rules and Regulations

Electronic media, most dramatically acting on their behalf. In that release, system, Wit-Trade, which is not a the Internet and the World Wide Web, the SEC set forth its views on the registered broker-dealer, was required to present regulators with a complex of requirements and standards to be met by use an independent agent to handle issues that differ significantly from securities issuers and mutual funds investor funds, to supplement the those presented by traditional paper- using electronic media to deliver such information provided about Spring based or telephonic activities. The documents to persons who consent to Street on the World Wide Web in order Internet allows users to reach millions such delivery.12 In a subsequent release to highlight the risks inherent in of people at very low cost, permitting dated May 15, 1996, the SEC extended investing in illiquid and speculative real-time, simultaneous communication its guidance with respect to electronic securities and to provide on the website by large numbers of persons, with media to broker-dealers, transfer agents, a transaction history, including price varying degrees of anonymity. investment advisers and persons acting and volume data, to facilitate informed Communications over the Internet can 13 on their behalf. In these releases, the investment decisions. Finally, the SEC combine text, audio and video. Another SEC articulated its view that in most stated that Spring Street was required to unique characteristic of the Internet is instances, ‘‘the use of electronic media that information posted thereon can be maintain and deliver an offering circular should be at least an equal alternative to 17 updated or changed instantaneously, the use of paper-based media.’’ 14 in accordance with Regulation A. and Internet sites can be created and In addition, the SEC has indicated Regulatory programs to address new eliminated virtually at will. The Internet that, subject to certain conditions, commercial uses of the Internet and also is geographically unconstrained; a Spring Street Brewing Co. (‘‘Spring World Wide Web have been party using the Internet can be located Street’’) may operate Wit-Trade, an on- accompanied by law enforcement anywhere, even internationally.11 As the line bulletin board-based trading system actions to address apparent abuses Internet’s popularity has grown, so too on the World Wide Web that allows involving the use of such media. The has the volume of information that can individuals to buy and sell shares of Federal Trade Commission (‘‘FTC’’) has be readily accessed via so-called ‘‘search Spring Street stock over the Internet. brought several enforcement actions engines.’’ Finally, Internet sites can be Spring Street had voluntarily suspended involving fraud on the Internet. On May connected to other sites through trading on Wit-Trade on March 20, 29, 1996, the FTC announced that it had hyperlinks, which enable users to move 1996, apparently due to concern that the obtained a federal court order against readily from place to place within a system, as then structured, did not Fortuna Alliance, L.L.C., temporarily website or to a new website. 15 satisfy SEC requirements. However, in halting an alleged pyramid scheme A number of federal agencies, a March 22, 1996, letter to Spring Street, advertised over the Internet that had including the Securities and Exchange the SEC’s Divisions of Corporation taken in over $6 million.18 On June 12, Commission (‘‘SEC’’), have begun to Finance and Market Regulation formally address regulatory issues expressed support for securities market 1996, the FTC obtained a preliminary presented by activities involving the innovations such as Wit-Trade, which injunction, keeping in effect the Internet. In October 1995, the SEC they described as ‘‘an innovative identical provisions of the temporary issued an interpretative release mechanism that has the potential to restraining order. The FTC has also addressing electronic delivery of provide [Spring Street] shareholders established an electronic forum documents such as prospectuses, annual with greater liquidity in their reports to shareholders, and proxy investments.’’ 16 However, to ensure 17 17 CFR 230.251 et seq. (1996). Regulation A is solicitation materials by issuers, third protection of public investors, the SEC an exemption from registration available to issuers parties (such as persons making tender also imposed several conditions upon that are neither Securities Exchange Act of 1934 offers or soliciting proxies) and persons reporting companies or investment companies and Wit-Trade’s resumption of trading. In permits interstate offerings of up to $5 million order to continue its on-line trading during any twelve month period, including up to with industry representatives concerning current $1.5 million in non-issuer resales. An offering and prospective uses of the Internet for communicating with the public and with other 12 60 FR 53458 (October 13, 1995). In a pursuant to Regulation A requires that the issuer futures professionals; creating a program for companion release, the SEC proposed technical file an ‘‘offering circular’’ with the SEC. monitoring solicitation activity on the Internet; and revisions to certain of its rules in light of the The SEC also noted that its regulatory authority developing mechanisms for electronic filing of interpretations proffered in the interpretative over Wit-Trade extends to some categories of Wit- reports and other ways to facilitate innovative uses release. 60 FR 53468 (October 13, 1995). Much of Trade’s users. Specifically, the SEC cautioned that the guidance provided in the SEC interpretative of computer technology in a manner consistent with Spring Street should inform users of the system that customer protection. release took the form of fifty-one examples of particular uses of electronic media by securities if they post quotations simultaneously on both the 11 The Commission recognizes that the worldwide professionals. Buyer and Seller Bulletin Boards, they may be availability of material placed on the Internet 13 61 FR 24644 (May 15, 1996). considered a ‘‘dealer’’ and required to register as presents important issues concerning the scope of such and comply with the requirements applicable the regulatory and enforcement jurisdiction of 14 60 FR at 53459. On January 7, 1996, the North to broker-dealers under the federal securities laws. individual nations. For example, solicitation American Securities Administrators Association, materials posted on the Internet by CPOs and CTAs Inc. adopted a resolution concerning offerings of The SEC also stated that any transactions facilitated registered with the Commission and acting in securities over the Internet. In general, this through Wit-Trade would be subject to the antifraud compliance with Commission rules may be resolution encouraged states to exempt certain provisions of the federal securities laws. accessed by persons in foreign jurisdictions under offerings over the Internet from registration Further, by letter dated June 21, 1996, the SEC’s whose laws such a solicitation may not be lawful. provisions and to take appropriate steps to allow Divisions of Market Regulation, Investment such offers and sales to occur subject to specified The International Organization of Securities Management and Corporation Finance granted conditions. Commissions (‘‘IOSCO’’), an international approval to Real Goods Trading Corp. (‘‘RGTC’’), 15 See Rob Wells, ‘‘SEC Allows Brewer to Trade association of securities and futures regulatory and permitting it to operate a bulletin board system on self-regulatory organizations, has several initiatives Stock on Internet,’’ Washington Times, March 26, the World Wide Web whereby persons may post underway to address these issues. In particular, 1996, at 5B. The developer of Spring Street Brewing IOSCO is examining a number of issues, including Co. has created Wit Capital Corporation to act as notices regarding purchases or sales of RGTC stock the enforcement and other regulatory challenges for agent in the public offering of securities through the in light of representations that, inter alia, RGTC will securities and futures regulators presented by the Internet and to create an electronic marketplace for not receive any compensation for creating or increasing use of public computer networks. The the shares of such companies. ‘‘Brewer That Began maintaining the system and that it will not receive, Commission invites comment from interested IPOs on Web Plans On-Line Exchange,’’ The transfer or hold any funds or securities in persons as to how the issues created by application Washington Post, April 3, 1996, at G1. connection with its operation of the system. Real of multiple jurisdictions’ laws to an international 16 Spring Street Brewing Co., SEC No-Action Goods Trading Corp., 1996 SEC No-Act. Lexis 566 mode of communication such as the Internet should Letter, [Current Transfer Binder] Fed. Sec. L. Rep. (June 24, 1996); Jeffrey Taylor, ‘‘SEC to Allow Firm be resolved. (CCH) ¶ 77,201 (April 17, 1996). to Run Market For Its Own Shares on the Internet,’’ Wall Street Journal, June 27, 1996, at B12. 18 FTC v. Fortuna Alliance, L.L.C., Civ. Docket 96– CV–799, W.D. Wa. 1996. Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Rules and Regulations 42149 intended to develop a set of voluntary necessary forms to institute reparations a signature, which will be deemed to be principles applicable to the use of claims).22 the equivalent of a manual signature for consumer information in electronic In addition to its World Wide Web purposes of attestation under media generally.19 This electronic forum site, the Commission has undertaken a Commission Rule 1.10(d)(4).26 The PIN, is presently soliciting comment from all variety of initiatives relating to the therefore, will constitute a sources, including consumers, industry application of technology and electronic representation by the user that the representatives, and privacy advocates. media to regulated futures activities. information contained in the financial The Commission recently concluded NASD Regulation, Inc. (‘‘NASDR’’), report is true, correct and complete. The five market automation briefings, Division of Trading and Markets also is the self-regulatory organization soliciting input from four exchanges and encouraging the CME and the CBT to responsible for oversight of securities from the brokerage community, through license the electronic filing system firms and professionals and over-the- representatives of the Futures Industry developed jointly by these exchanges, counter securities trading, recently Association.23 In these briefings, the and currently used by their members to issued a Notice to Members addressing exchanges described the current status file financial reports electronically, at supervisory and other obligations and planned improvements to clearing, 20 reasonable cost to other markets and is related to the use of electronic media. order-routing, trade tracking, evaluating whether to require electronic In that notice, NASDR explained that surveillance and automation systems. filing for all but certified financial electronic communications are subject The brokerage representatives identified statements. The Division of Trading and to the same approval, recordkeeping, technological enhancements, including Markets also has encouraged the use of and filing requirements as electronic transaction confirmations and electronic media to achieve greater communications by other means and recordkeeping capacity, relevant to the efficiency by allowing firms to directly emphasized that all communications by continuing efficiency and enter certain registration filings in its members with the public remain competitiveness of United States futures connection with the National Futures subject to the antifraud provisions of the markets. Association (‘‘NFA’’) direct entry federal securities laws. Further, it To date, the Commission has program.27 explained that members must comply facilitated the use of electronic media by The Commission’s Division of with the NASD’s suitability rule, providing relief from or interpretations Enforcement (‘‘DOE’’) is actively disclose material adverse facts to of regulatory requirements in a variety monitoring activity on the Internet and customers, and implement appropriate of contexts. Recently, the Division of proprietary on-line services. The DOE supervisory procedures to ensure that Trading and Markets issued a ‘‘no- investigates and prosecutes violations of their associated persons do not misuse action’’ letter and a related advisory the CEA by persons who use electronic electronic communications or engage in allowing FCMs to use facsimile media, as well as any other media, to misconduct while on-line. NASDR also transmissions to send daily accomplish such violations. For solicited comment from members confirmation statements to certain instance, the Commission recently concerning their use of electronic media institutional customers in fulfillment of brought an action in the United States and whether there is a need for their obligations under Commission District Court for the Southern District ‘‘prophylactic regulatory measures.’’ 21 Rule 1.33(b).24 The Division of Trading of Florida against certain persons and Markets also has issued an advisory Regulatory Implications of New alleging fraud in connection with the concerning the attestation of financial Electronic Media. Like its sister solicitation and receipt of funds for the reports filed electronically with a self- purchase and use of computer-generated agencies, the CFTC has been alert to the regulatory organization.25 Pursuant to trading systems.28 The complaint alleges potential regulatory and law Advisory 28–96, FCMs and IBs who file that the defendants in that case enforcement implications of the Internet financial reports electronically with a marketed the systems in national and electronic media generally. For self-regulatory organization that newspapers and on the Prodigy on-line example, like businesses and other operates a program for electronic filing service Money Talk Bulletin Board. On government agencies, the Commission is approved by the Commission, such as October 16, 1995, the District Court using electronic media to increase the Chicago Board of Trade (‘‘CBT’’) or issued an ex parte order freezing public awareness of and access to its the Chicago Mercantile Exchange defendants’ assets. On October 25, 1995, services. The Commission initiated its (‘‘CME’’), may use a personal the defendants, without admitting or website on the World Wide Web on identification number (‘‘PIN’’) in lieu of denying the allegations, consented to October 10, 1995. The Commission now the entry of an Order of Preliminary regularly provides information on its 22 The address of the site is http://www.cftc.gov. Injunction which, among other things, website concerning a broad range of It is visited by thousands of users each month. prohibited them from acting as CTAs 23 topics, including enforcement actions, Advisory No. 25–96 (May 13, 1996); ‘‘Market without benefit of registration. opinions and orders, commitments of Automation Examined,’’ [Current Transfer Binder] Comm. Fut. L. Rep. (CCH) Report Letter No. 528 at In addition, the DOE will shortly traders reports, interpretative letters, 5 (June 7, 1996). introduce a section of the Commission’s press releases, sanctions in effect and 24 Advisory No. 22–96, [Current Transfer Binder] website through which members of the reparations proceedings (including the Comm. Fut. L. Rep. (CCH) ¶ 26,679 (May 2, 1996). public can provide it with information Throughout this Interpretation the Commission refers to various staff interpretative letters and regarding possible violations of the CEA 19 See FTC’s website at http://www.ftc.gov/ftc/ advisories. These letters and advisories represent privacy.htm. interpretations by the Commission’s staff and do 26 The Commission approved rules of the CME 20 NASD Notice to Members 96–50, July 1996. In not necessarily represent interpretations by the and CBT permitting electronic filing of financial a previous notice, NASDR provided guidance to its Commission. The Commission intends to issue a reports prior to issuing this advisory. See CME Rule members concerning the regulatory implications of separate Federal Register release addressing 970 (approved by the Commission on September 27, certain conduct occurring over various electronic electronic communications and disclosures by 1993); CBT Capital Rule 311, Appendix 4B media, including the World Wide Web, ‘‘bulletin FCMs and IBs. Prior to the issuance of such a (approved by the Commission on September 21, boards,’’ electronic mail, ‘‘chat rooms,’’ and release, the Commission’s Division of Trading and 1993). The Commission expects to propose its own hyperlinked sites. ‘‘Ask the Analyst About Markets will continue to resolve issues in this area rules on this subject in the near future. Electronic Communications,’’ NASD Regulatory & on a case-by-case basis. 27 57 FR 60799 (December 22, 1992). Compliance Alert, April 1996. 25 Advisory No. 28–96, [Current Transfer Binder] 28 CFTC v. Maseri, et al., Case No. 95–6970–Civ- 21 NASD Notice to Members 96–50, July 1996. Comm. Fut. L. Rep. (CCH) ¶ 26,711 (May 28, 1996). Davis (S.D. Fla. 1995). 42150 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Rules and Regulations occurring on the Internet or elsewhere. II. Applicability of the Commodity interstate commerce.’’ 31 More generally, This section will be an important part Exchange Act and Regulations Section 18 of the Act directs the of the DOE’s and the Commission’s Thereunder to Use of Electronic Media: Commission to establish and maintain, surveillance and information gathering Registration and Other Requirements ‘‘as part of its ongoing operations,’’ activities over the Internet. for Commodity Trading Advisors and research and information programs to Commodity Pool Operators The Commission’s Office of determine, inter alia, ‘‘the feasibility of Information Resources Management The advent of electronic media, such trading by computer, and the expanded (‘‘OIRM’’) performs ongoing assessments as the Internet, as common modes of use of modern information system of the opportunities offered by the use commercial communication has given technology, electronic data processing, of new technology to streamline or rise to numerous questions concerning and modern communication systems by otherwise improve the effectiveness of the applicability of existing regulatory commodity exchanges, boards of trade, the Commission’s programs. For structures to these media. Although this and by the Commission itself for example, in addition to implementing release is principally directed toward purposes of improving, strengthening, and maintaining the Commission’s the use of electronic media by managed facilitating, or regulating futures trading 32 website, OIRM has recently provided a futures professionals, the Commission operations.’’ firewall-protected connection between also wishes to emphasize that, as a However, although Congress’s intent general matter, the nature and effect of the Commission’s internal network and that the Act should encompass and a person’s conduct, not the medium of the Internet. This connection provides accommodate new technologies is clear, communication chosen, determine the all Commission staff with Internet market participants may nevertheless applicability of the Commission’s electronic mail addresses, thereby regulatory framework. Consequently, benefit from guidance as to the manner enabling them to receive industry persons using electronic media are in which the Act and Commission rules inquiries electronically and to respond subject to the same statutory and apply in specific contexts. This release to such inquiries more rapidly. It also regulatory requirements under the is intended to facilitate the use of provides select Commission staff with Commission’s regulatory framework as electronic information and full web-browsing capabilities to persons employing other modes of communications systems by facilitate surveillance and other communication. Commission registrants in conducting information gathering activities. This conclusion follows from the their businesses and in making required In sum, the Commission supports the breadth of the mandates codified in the filings with the Commission. In use of new technologies to enhance CEA, as well as their express terms. The particular, this release is intended to efficiency and competitiveness and definition of CPO, for example, includes facilitate the use of electronic believes that electronic media can ‘‘any person engaged in a business that communication systems by clarifying provide an effective alternative to is of the nature of an investment trust, the manner in which Commission rules, traditional paper-based media. The syndicate, or similar form of enterprise, generally written to address either oral Commission encourages industry and who, in connection therewith, or hardcopy written communications, participants to consult with the solicits, accepts or receives from others may be translated into the context of Commission as they develop and refine funds, securities or property, either electronic media. electronic media applications in order directly or through capital As a threshold matter, the contributions, the sale of stock or other to assure that transitions to electronic Commission wishes to emphasize the forms of securities, or otherwise, for the media occur efficiently and without loss registration duties of persons using purpose of trading in any commodity for of regulatory protections. electronic media to engage in activity future delivery on or subject to the rules subject to the Act and Commission The Commission is issuing this of any contract market * * *.’’ 29 release to provide guidance concerning Similarly, the CTA definition includes regulations. The Act’s registration a range of issues presented by existing ‘‘any person who * * * for requirements for commodity and contemplated uses of electronic compensation or profit, engages in the professionals are a cornerstone of the media by the managed futures industry. business of advising others, either regulatory framework enacted by The release addresses: the applicability directly or through publications, Congress. Determinations as to whether of the CEA and Commission regulations writings or electronic media, as to the a person must register, and in what to the use of electronic media, including value of or the advisability of trading in capacity, require an evaluation of all of registration duties and other regulatory any contract of sale of a commodity for the ‘‘circumstances surrounding such requirements applicable to persons who future delivery made or to be made on person’s commodity-related 33 use electronic media to provide or subject to the rules of a contract activities.’’ Section 4m(1) of the Act commodity trading advice or to solicit market * * *.’’ 30 Section 4l of the Act makes it unlawful for any CTA or CPO, managed futures accounts or pool confirms the national public interest in unless excluded or exempted from participations; the criteria and the activities of CTAs and CPOs whose registration, ‘‘to make use of the mails requirements applicable to CPOs and advice to and arrangements with clients or any instrumentality of interstate commerce in connection with his CTAs seeking to use electronic media ‘‘take place and are negotiated and business as such commodity trading for the delivery of Disclosure performed by the use of the mails and advisor or commodity pool operator’’ 34 Documents, reports and other other means and instrumentalities of without being registered under the Act. information; and a mechanism whereby 29 Thus, the Act requires the registration of CPOs and CTAs may use electronic 7 U.S.C. 1a(4) (emphasis added). 30 7 U.S.C. 1a(5)(A) (emphasis added). The persons who use any instrumentality of media to file Disclosure Documents definition of the term ‘‘commodity trading advisor’’ interstate commerce, including with the Commission. The Commission was amended by the Futures Trading Act of 1982, Pub. L. No. 97–444, 96 Stat. 2204 in order to refer invites comment on each of these topics, 31 7 U.S.C. 6l (emphasis added). and any related issues of interest to expressly to ‘‘electronic media.’’ Similarly, the exclusions from the CTA definition for newspaper 32 7 U.S.C. 22 (emphasis added). futures professionals or other market reporters and publishers were amended to add 33 48 FR 35248, 35253 n.27 (August 3, 1983). users. ‘‘electronic media’’ to the exclusion for print media. 34 7 U.S.C. 6m(1). Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Rules and Regulations 42151 electronic media, in connection with includes particularized trading advice in forms other than personalized trading their business as a CTA or CPO. that recommends specific transactions advice.’’ 42 or trading methodologies as well as A. Commodity Trading Advisory Commission staff have applied the advice concerning the ‘‘value of or Activities CTA definition to ‘‘persons who make advisability’’ of trading in futures or commodity interest trading advice 1. Trading Advice Communicated commodity options. Consequently, one available to the public through mass Electronically who advises others concerning the value of using futures generally, without media, such as newsletters, telephone The Act defines the term ‘‘commodity hotlines or electronic devices including trading advisor’’ to include, subject to providing specific trading recommendations, nonetheless is computer software, rather than through specified exclusions, any person who: direct communication with individual ‘‘(i) for compensation or profit, engages providing commodity trading advice. persons.’’ 43 Staff letters have applied in the business of advising others, either Further, persons may provide the CTA definition to, for example, directly or through publications, commodity trading advice even though writings, or electronic media, as to the they ‘‘are neither directly or indirectly designers and distributors of computer value of or the advisability of trading involved in the solicitation of funds or software programs that generated 38 in’’ futures contracts, commodity trades or the trading of accounts.’’ For commodity trading recommendations or options, or leverage transactions; or ‘‘(ii) example, Commission staff have found strategies; 44 a professor who received for compensation or profit, and as part that a publication that includes general compensation for applying research and of a regular business, issues or information on trading in commodity periodically updating a computer model promulgates analyses or reports interests, detailed information on price used for trading commodity interests; 45 concerning any of the activities referred forecasting and specific advice on the distributor of software that analyzed to in clause (i).’’ 35 Thus, subject to market conditions that signal when a United States dollar index; 46 and the certain statutory exclusions, any persons should trade in the futures licensor of a computer software program 39 persons who for compensation or profit markets provides trading advice. who had developed and licensed to engage in the business of advising Commodity trading advice may include more than fifty licensees various others concerning trading in futures or information already contained in the computerized trading systems that public domain 40 and is not limited to commodity options or of issuing allowed the licensees to input data analyses or reports concerning such trading ‘‘recommendations.’’ 41 In applying the CTA definition, the setting the parameters of futures trading, are deemed CTAs under the 47 Commission has recognized that transactions. These staff positions are Act. consistent with applications of the CTA A threshold requirement of the CTA commodity trading advice may be definition to other impersonal or definition is that the trading advisory provided through all forms of activity be undertaken for communication, including electronic indirect forms of communication, such ‘‘compensation or profit.’’ This does not, media. This conclusion is compelled by however, require that ‘‘the the Act’s express terms; as noted by 42 Division of Trading and Markets Interpretative ‘compensation or profit’ flow directly Commission staff, ‘‘[i]n distinguishing Letter No. 95–101, [Current Transfer Binder] Comm. from the person or persons advised between trading advice offered directly Fut. L. Rep. (CCH) ¶ 26,565 (November 21, 1995). ** * [i]t is sufficient that the or through publications, writings or The Commission has recently filed complaints compensation or profit is to result electronic media, [the statutory CTA addressing certain forms of alleged CTA activity definition] is clearly intended to reach conducted by means of electronic media. For wholly or in part from the furnishing of example, the Commission and the Attorney General the services specified in section ‘impersonal,’ indirect forms of trading for the State of Florida jointly filed a complaint, [1a(5)].’’ 36 Accordingly, this advice and explicitly recognizes that which was later amended to include a new requirement has been interpreted by commodity trading advice may be given defendant, in CFTC v. JDI Limited Inc. d/b/a Future Commission staff to include direct or Vision, Case No. 95–6221–Civ–Gonzalez (S.D. Fla.), indirect forms of compensation or profit 38 Division of Trading and Markets Interpretative charging defendants with, inter alia, acting as Letter No. 96–56, [Current Transfer Binder] Comm. unregistered CTAs and violating the antifraud received by a CTA, including the llll attraction of new customers or Fut. L. Rep. (CCH) ¶ (July 8, 1996). provisions of the Act in the marketing, sale and 39 Id. support of a computerized trading program. 37 maintenance of a customer base. 40 Unpublished letter from Andrea M. Corcoran, Similarly, the Commission’s complaint in In the The term ‘‘commodity trading advice’’ Director, Division of Trading and Markets, dated Matter of R&W Technical Services, Ltd., CFTC has been interpreted expansively and March 14, 1990 (‘‘even assuming that information Docket No. 96–3, alleged that the respondents had contained in the [publication] is available marketed and sold a computerized futures trading 35 7 U.S.C. 1a(5)(A). elsewhere in the public domain, it is our opinion system generating trading signals for transactions in that the CTA definition includes an enterprise 36 CFTC Interpretative Letter No. 75–11, [1975– various financial futures contracts without being which is devoted to compiling advice, reports or 1977 Transfer Binder] Comm. Fut. L. Rep. (CCH) analyses of others with respect to futures markets registered as CTAs. The complaint also charged the ¶ 20,098, at 20,763 n.6 (Office of the General and to publishing such data in a book such as the parties with violations of antifraud provisions of the Counsel, Trading and Markets, September 15, Act by falsely advertising money-back guarantees 1975). [publication] on a regular basis’’). 41 and hypothetical profits in magazines, telephone 37 CFTC Interpretative Letter No. 76–10, [1975– Unpublished letter from Susan C. Ervin, Deputy solicitations and written promotional materials. The 1977 Transfer Binder] Comm. Fut. L. Rep. (CCH) Director/Chief Counsel, Division of Trading and ¶ 20,157 (Office of the General Counsel, April 22, Markets, dated March 14, 1989 (noting that the Commission expresses no opinion on the merits or 1976); CFTC Interpretative Letter No. 75–6, [1975– absence of interpretative or analytical information ultimate outcome of these cases. 1977 Transfer Binder] Comm. Fut. L. Rep. (CCH) does not exclude a person from the definition of a 43 Division of Trading and Markets Interpretative ¶ 20,093 (Office of the General Counsel, Trading CTA). ‘‘The plain terms of the statute indicate Letter No. 95–68, [Current Transfer Binder] Comm. ** * that Congress intended to cover all types of and Markets, August 13, 1975). For example, Fut. L. Rep. (CCH) ¶ 26,498 (August 10, 1995). Commission staff have found the ‘‘compensation or analyses and reports * * *, not just those that 44 Id. profit’’ requirement of the CTA definition satisfied advise, interpret or make recommendations.’’ CFTC where a CTA’s customers receive commission Interpretative Letter No. 76–25, [1975–1977 45 Division of Trading and Markets Interpretative rebates from an FCM that are then credited toward Transfer Binder] Comm. Fut. L. Rep. (CCH) ¶ 20,239 Letter No. 94–51, [1992–1994 Transfer Binder] payment of the CTA’s commodity information (Office of the General Counsel, December 6, 1976). Comm. Fut. L. Rep. (CCH) ¶ 26,115 (May 10, 1994). service subscription fees. Division of Trading and Thus, a person may provide commodity trading 46 Division of Trading and Markets Interpretative advice despite neither analyzing nor making any Markets Interpretative Letter No. 95–51, [Current Letter No. 93–27, [1992–1994 Transfer Binder] Transfer Binder] Comm. Fut. L. Rep. (CCH) ¶ 26,420 predictions or representations about the (May 1, 1995). information provided. Comm. Fut. L. Rep. (CCH) ¶ 25,704 (April 2, 1993). 47 Division of Trading and Markets Interpretative Letter No. 84–9, [1982–1984 Transfer Binder] Comm. Fut. L. Rep. (CCH) ¶ 22,092 (March 1 and April 6, 1984). 42152 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Rules and Regulations

as newsletters and other print media 48 time at which he solicits such customer, First, a person must be ‘‘the publisher and telephone hotlines.49 obtain a signed acknowledgment of or producer of any print or electronic The Commission wishes to make clear receipt of the Disclosure Document from data of general and regular that the nature and scope of regulation the customer and maintain specified dissemination.’’ (emphasis added). of trading advisory activity under the books and records. Persons who solicit Second, ‘‘the furnishing of such services CEA depends upon the type of activity managed accounts for a CTA must be ** * [must be] solely incidental to the in which the advisor engages. For registered as an AP of the CTA and conduct of their business or profession.’’ example, persons who provide provide the required Disclosure As construed by CFTC staff, the phrase commodity trading advice but do so in Document at the time of or prior to ‘‘general and regular dissemination’’ a manner that is solely incidental to the solicitation of the customer. The applies to publications whose ‘‘primary conduct of certain businesses or Commission provides guidance on a purpose [is] to disseminate news and professions, such as banking, news case-by-case basis concerning the other items appealing to the interest of publishing or news reporting, are application of these requirements to all segments of the business and wholly excluded from the definition of particular business activities or financial community.’’ 54 In contrast, ‘‘if a CTA. Persons who provide commodity arrangements. a publication concentrates on trading advice but do not qualify for a a. Exclusions From the CTA Definition disseminating analyses, reports or statutory exclusion from the CTA recommendations bearing on a narrow definition due to the fact that their The CEA provides an exclusion from area of interest, such as * ** trading advice is not incidental to the the CTA definition for banks and trust commodity futures trading,’’ the staff conduct of their business or profession companies (and their employees), news has construed the publication not to be as, e.g., a publisher, are required to reporters, columnists and editors, ‘‘a bona fide business or financial register as CTAs and maintain specified lawyers, accountants and teachers, floor publication of general and regular records; however, unless they are brokers or FCMs, publishers or circulation’’ for purposes of the managing customer accounts, they are producers of print or electronic data of statutory exclusion from the CTA not subject to the requirement to deliver general and regular dissemination (and definition.55 a Disclosure Document. Finally, persons their employees), contract markets, and who manage customer accounts, i.e., ‘‘such other persons not within the (2) Solely Incidental direct or guide accounts,50 are required intent of this paragraph as the In defining ‘‘solely incidental,’’ the to register with the CFTC, deliver a Commission may specify by rule, Commission does not rely on a specific Disclosure Document to each regulation, or order.’’ 51 These numerical standard or percentage of prospective customer at or before the exclusions apply only if the furnishing revenues or business but, rather, of such services by the specified persons considers the nature of the overall 48 Division of Trading and Markets Interpretative ‘‘is solely incidental to the conduct of business and the factual context in Letter No. 93–18, [1992–1994 Transfer Binder] their business or profession.’’ 52 Comm. Fut. L. Rep. (CCH) ¶ 25,694 (February 23, which the advisory services are 1993) (publications issued on a monthly or (1) Publisher or Producer of Electronic rendered.56 Thus, ‘‘a planned or bimonthly basis which contained analyses and advice concerning trading commodity interests, Data of General and Regular periodic expression of views as to the including gold, silver and platinum contracts Dissemination advisability of trading in commodity required registration as a CTA); CFTC Interpretative The CEA’s express exclusion from the futures made by an FCM may be solely Letter No. 75–3, [1975–1977 Transfer Binder] incidental to its business[,] while the Comm. Fut. L. Rep. (CCH) ¶ 20,090 (Office of the CTA definition for publishers and General Counsel, Trading and Markets, July 31, same advice rendered by a publisher or producers of print or electronic media 57 1975) (publisher of newsletter focusing on cash applies only if two criteria are met.53 bank may not.’’ Generally, if a commodity markets and that occasionally prints publication has a specialized focus advice concerning the use of agricultural futures for 51 upon futures transactions or is largely hedging purposes is a CTA); Division of Trading 7 U.S.C. 1a(5)(B). For instance, Commission and Markets Interpretative Letter No. 94–29, [1992– Rule 4.14 exempts from CTA registration various devoted to futures trading, the 1994 Transfer Binder] Comm. Fut. L. Rep. (CCH) categories of persons, including certain dealers, commodity trading advice furnished ¶ 26,020 (March 15, 1994) (responding to general processors, brokers or sellers in the cash market for therein will not be considered to be commodities; a registered AP who provides trading questions regarding newsletter publications and solely incidental to the conduct of the CTA registration and concluding that publisher of advice solely in connection with his employment newsletter offering market advice is not a CTA only as an AP; registered CPOs who provide trading if advice is solely incidental to the publisher’s advice solely to pools for which they are registered; ***** business). persons who are exempt from CPO registration who (C) INCIDENTAL SERVICES—Subparagraph (B) provide trading advice solely to pools for which 49 Division of Trading and Markets Interpretative shall apply only if the furnishing of such services they are exempt from registration; and certain Letter No. 93–43, [1992–1994 Transfer Binder] by persons referred to in subparagraph (B) is solely persons who are registered as investment advisers Comm. Fut. L. Rep. (CCH) ¶ 25,734 (May 19, 1993) incidental to the conduct of their business or under the Investment Advisers Act of 1940 or are (requiring CTA registration of IB using a ‘‘900 line’’ excluded from the definition of the term profession. that provided prerecorded trade recommendations ‘‘investment adviser.’’ 17 CFR 4.14. 54 Division of Trading and Markets Interpretative as well as research, market and trade ideas); see also 52 Letter No. 76–1, [1975–1977 Transfer Binder] CFTC v. Ehrenberg, [1982–1984 Transfer Binder] 7 U.S.C. 1a(5)(C). Pursuant to statutory Comm. Fut. L. Rep. (CCH) ¶ 20,135 (February 26, Comm. Fut. L. Rep. (CCH) ¶ 21,640, at 26,429 (E.D. amendments adopted in 1982, the Act also provides Ill. 1982) (party who advertised services as pork that the Commission may, ‘‘by rule or regulation, 1976) (emphasis added). belly trading specialist in commodities magazine include within the term [CTA] any person advising 55 Id. as to the value of commodities or issuing reports or and gave commodity trading advice over telephone 56 In the Matter of Armstrong, [1992–1994 for a fee was required to register as CTA). analyses concerning commodities if the Commission determines that the rule or regulation Transfer Binder] Comm. Fut. L. Rep. (CCH) ¶ 25,657 50 Commission staff have stated that it is not will effectuate the purposes of this paragraph.’’ 7 (February 8, 1993), rev’d on other grounds sub necessary for a person to have a power of attorney U.S.C. 1a(5)(D). nom., Armstrong v. Commodity Futures Trading in order to be ‘‘directing’’ or ‘‘guiding’’ accounts. 53 Commission, [1992–1994 Transfer Binder] Comm. See, e.g., Division of Trading and Markets 7 U.S.C. 1a(5) provides in pertinent part: Fut. L. Rep. (CCH) ¶ 25,914 (December 21, 1993) Interpretative Letter No. 86–15, [1986–1987 (B) Subject to subparagraph (C), the term Transfer Binder] Comm. Fut. L. Rep. (CCH) ¶ 23,165 ‘‘commodity trading advisor’’ does not include— [hereinafter Armstrong]; see also 52 FR 41975, (July 22, 1986) (‘‘[i]t should be noted that, although ***** 41978 (November 2, 1987) (discussing ‘‘solely the CTA has no power of attorney over the account, (iv) the publisher or producer of any print or incidental’’ as used in Commission Rule 4.6). he does have the power to control the client’s electronic data of general and regular 57 Division of Trading and Markets Interpretative trades’’). dissemination, including its employees; Letter No. 76–1, [1975–1977 Transfer Binder] Comm. Fut. L. Rep. (CCH) ¶ 20,135 (February 26, 1976). Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Rules and Regulations 42153 publisher’s business.58 Conversely, if a b. Exemption From Registration for Persons who compile and reprint publication covers a broad range of Persons Who Furnish Trading Advice to information, whether electronically or topics and futures are not its Fifteen or Fewer Persons and Who Do on paper media, may be subject to the predominant focus, the commodity Not Hold Themselves Out as CTAs Commission’s registration requirements trading advice provided therein may be Section 4m(1) of the CEA provides an notwithstanding the fact that they did ‘‘solely incidental’’ to the conduct of the exemption from registration for CTAs not originally prepare the information publisher’s business. For example, who during the preceding twelve disseminated. The terms ‘‘advising’’ and Commission staff have found that months have not furnished trading ‘‘issues or promulgates’’ are not limited ‘‘reprinting’’ by an electronic advice to more than fifteen persons and to the author of such materials but information service of, among other include the ‘‘dissemination of another’s who do not ‘‘hold [themselves] out 65 things, specific trading generally to the public as a commodity views to third persons.’’ Compilations of information may recommendations was solely incidental trading advisor.’’ 62 A CTA who range from listings of performance data to its broader business as an electronic identifies himself as a CTA or otherwise for all publicly offered commodity information and communications refers to his advisory services or history pools, comparable to newspaper listings service, a general computer library on a public electronic forum such as portions of the Internet or a proprietary of mutual fund returns, to narrowly whose files included a ‘‘broad range of focused descriptions of the trading 59 on-line service may not avail himself of many different types of information.’’ strategies and history of a single CTA. However, advice furnished in a the exemption under Section 4m(1). Such conduct constitutes ‘‘holding out’’ In determining whether such financial publication (and related compilations constitute either advice as to the public as a CTA.63 This view is telephone newsline service) that was to ‘‘the value of or the advisability of consistent with the SEC’s views substantially focused on metals futures, trading’’ futures or commodity options concerning the ineligibility of offerings was not solely incidental to that entity’s or ‘‘analyses or reports’’ concerning posted on the Internet for the Regulation publishing business, but in the words of such trading, as well as the applicability D safe harbor from registration. As the Commission, was ‘‘the very point of of various statutory exclusions, the stated by the SEC, ‘‘[t]he placing of the that business.’’ 60 Similarly, where a Commission considers all of the offering materials on the Internet would newsletter devoted a substantial number relevant facts and circumstances. not be consistent with the prohibition of issues to analyses of the futures However, to facilitate use of the Internet against general solicitation or markets and specific trading by commodity professionals, the advertising in Rule 502(c) of Regulation recommendations, Commission staff Commission wishes to clarify the status D.’’ 64 found such advice to be ‘‘fundamental,’’ of certain types of publications of rather than solely incidental, to the 2. Directories and Compilations futures-related data. 61 company’s business. In addition to using electronic media Publications that compile trading to communicate specific commodity results for commodity pools selected on 58 Armstrong; CFTC Interpretative Letter No 75– trading advice, market participants may an objective, neutral basis, e.g., all 4, [1975–1977 Transfer Binder] Comm. Fut. L. Rep. commodity pools of a certain size or (CCH) ¶ 20,091 (Office of the General Counsel, engage in activities that implicate registration duties and other CFTC geographic location, could be viewed as Trading and Markets, August 11, 1975). providing ‘‘reports or analyses’’ 59 Division of Trading and Markets Interpretative requirements by operating sites on the Letter No. 83–3, [1982–1984 Transfer Binder] World Wide Web that compile concerning futures transactions and Comm. Fut. L. Rep. (CCH) ¶ 21,842, at 27,538 (May information about other registrants or thus as within the CTA definition. To 25, 1983) (describing the computer information and futures-related subjects. For example, the extent that such compilations are communications service as ‘‘computer library and presented by a publisher of print or information distribution business’’). many locations on the Internet provide electronic media of ‘‘general and regular 60 Armstrong, at 40,149. central repositories for, directories of, or 61 CFTC Interpretative Letter No. 75–4, [1975– mechanisms to access information dissemination’’ in a manner solely 1977 Transfer Binder] Comm. Fut. L. Rep. (CCH) compiled from multiple sources. incidental to that business, the ¶ 20,091, (Office of the General Counsel, Trading publisher would qualify for the and Markets, August 11, 1975). The United States statutory exclusion from the CTA Supreme Court’s interpretation of the term 62 7 U.S.C. 6m(1). ‘‘investment adviser’’ in SEC v. Lowe, 472 U.S. 181 63 See examples infra, at the conclusion of this definition. The publisher of a (1985), as used in the Investment Advisers Act of section. Likewise, a CPO who advertises a pool on newspaper of general circulation could 1940 (‘‘IAA’’), does not mandate a different result. the Internet, e.g., by identifying himself as a CPO therefore publish, in a manner In Lowe, after reviewing the language and legislative of a pool, may not obtain an exemption from incidental to that business, the history of the IAA, the Court held that Congress had registration relief under Commission Rule excluded publishers of generalized securities advice 4.13(a)(1), inasmuch as such advertising plainly performance results for all commodity from the definition of investment adviser. Although negates one of the required elements of the pools or for all publicly traded a ‘‘facial parallel’’ exists between the Section exemption. Commission Rule 4.13(a)(1) provides an commodity pools without registration as 1a(5)(B)(iv) of the CEA and Section 203(c) of the exemption from registration for a CPO if, among a CTA or compliance with the statutory IAA (the exclusion for ‘‘the publisher of a bona fide other things, ‘‘it does not receive any compensation, newspaper, magazine or business of financial directly or indirectly, for operating the pool, except and regulatory requirements applicable publication of general and regular circulation’’), reimbursement for ordinary administrative thereto. unlike the investment adviser definition of the IAA, expenses of operating the pool;’’ ‘‘[i]t operates only If a compilation of performance data the CTA definition in Section 1a(5)(C) of the CEA one pool at a time;’’ and ‘‘[n]either the person nor for publicly offered pools were limits the exclusions in Section 1a(5)(B), including any other person involved with the pool does any the publishers’ exclusion of Section 1a(5)(B)(iv), to advertising in connection with the pool * * *.’’ 17 published by a firm that does not cases where ‘‘the furnishing of such services by the CFR 4.13(a)(1) (emphasis added). qualify as a publisher of data of general foregoing persons is solely incidental to the conduct 64 60 FR at 53464. SEC Rule 502(c) prohibits ‘‘any and regular dissemination, e.g., a of their business or profession.’’ Armstrong, at form of general solicitation or general advertising’’ business devoted exclusively or 40,149. Consequently, as the Commission noted in and applies to Regulation D offerings pursuant to Armstrong, ‘‘[g]iven this clear distinction between SEC Rules 505 and 506. 17 CFR 230.502(c). Thus, primarily to operating Internet sites Congress’ exclusionary language in [the IAA and CPOs who use electronic media in a manner the CEA, the Commission is] not persuaded that the inconsistent with Regulation D may not obtain 65 CFTC Interpretative Letter No. 76–24, [1975– holding in Lowe mandates a broad construction of relief pursuant to Commission Rule 4.8, which is 1977 Transfer Binder] Comm. Fut. L. Rep. (CCH) the exclusion from the definition of CTA for certain available only with respect to offerings pursuant to ¶ 20,234 (Office of the General Counsel, August 17, publishers.’’ Id. SEC Rules 505 and 506. 17 CFR 4.8. 1976). 42154 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Rules and Regulations providing data concerning CTAs and of the mouse, connects the user to using other media. These include the CPOs, the statutory ‘‘publisher’’ another location on the Internet. The antifraud provisions of the CEA, exclusion would not apply. However, Commission’s website, for example, has including Section 4o,70 as well as the the Commission believes that provided hyperlinks to a number of World Wide provisions of Commission Rule 4.41. such data are developed using objective, Web sites, including each of the United Rule 4.41 prohibits CPOs, CTAs, or any neutral criteria, such as size or States contract markets. Internet principals thereof from advertising in a geographical location, and presented as directories such as Yahoo and Magellan manner which employs any fraudulent such by a bona fide news organization are basically organized collections of device or involves any transaction or for the purpose of providing current hyperlinks. Hyperlinks, although course of business which operates as a market data, registration as a CTA fundamentally a connective mechanism fraud or deceit upon any pool 66 should not be required. Similarly, an between websites, nonetheless can be participant or client or prospective unbiased compilation of all registered used in such a manner as to participant or client. Rule 4.41 also bars CTAs in a given location, clearly communicate advice about the value of the presentation of any hypothetical or described as such and without any or advisability of trading in commodity simulated performance data unless it is express or implied evaluation or interests, e.g., by labeling, describing, or ‘‘prominently’’ accompanied by a suggestions as to the quality of the otherwise introducing the hyperlinked prescribed cautionary statement.71 Both services such persons provide, may be sites. This would be the case, for the statutory antifraud provisions and viewed as equivalent to the telephone example, where the operator of a Rule 4.41 apply to CTAs, CPOs, and ‘‘yellow pages’’ directory, and would website provides editorial comment their principals, regardless of whether not implicate the Commission’s about the hyperlinks or provides a list they are exempt from registration under registration requirements. However, of hyperlinks that represent a pre- 72 compilations of selected CTAs, or of selected, defined category of persons or the CEA. Rule 4.41 expressly applies CTAs who pay a fee for inclusion in a services, whose attributes or to ‘‘any publication, distribution or list, may not be neutrally developed qualifications are thereby highlighted.68 broadcast of any report, letter, circular, compilations and may, in effect, In such a case, the person providing the memorandum, publication, writing, promote the services of selected CTAs. hyperlinks would be required to register advertisement or other literature or If the provider of this information is as a CTA. advice, including the texts of compensated for or receives profit from However, hyperlinks can also be used standardized oral presentations and of such activities, absent the applicability in a manner that would not require a radio, television, seminar or similar of a specific exclusion, that person is person to register as a CTA. For mass media presentations.’’ 73 The required to register as a CTA.67 example, the Commission believes that requirements of Rule 4.41 thus apply Moreover, even absent such merely providing a list of hyperlinks fully to electronic media such as the compensation, the presenter of such that is the equivalent of a telephone Internet. data may be soliciting discretionary directory or other broad-based source of The Commission also notes that accounts on behalf of one or more CTAs ‘‘locational’’ data, without more, would capabilities peculiar to the Internet, and thus required to register as an AP not make one a CTA because hyperlinks such as anonymity and the ability to of such CTA, or as a CTA. in this context do not necessarily speak operate through aliases (e.g., electronic Compilations presented on electronic ‘‘as to the value of or the advisability of mail addresses, user names), that media may contain actual descriptive trading in’’ commodity interests. obscure a person’s true identity or data or simply a collection of Similarly, a website that contains a business affiliation may be exploited in hyperlinks. Hyperlinks, a prominent search or query function that allows a manner that operates as a fraud. For feature of the World Wide Web, enable visitors to construct searches to obtain example, the use of ‘‘testimonials’’ a user to connect from one location or data responsive to certain criteria they purportedly from third parties but document to another, a facility without select would not be considered to be actually created by the CTA or CPO that apparent analogy in paper-based media. providing trading advice, provided that is the subject of the ‘‘testimonial’’ would Hyperlinks consist of an address or the website merely provides the ‘‘data constitute a fraudulent practice under library’’ and the search vehicle for the phrase which, when activated by a click statutory antifraud provisions and Rule viewer’s use.69 4.41. 66 The Commission stresses, however, that providing even objective market or performance 3. Applicability of Antifraud Provisions 70 history data in the context of a publication that has Persons using electronic media are 7 U.S.C. 6o provides that no CPO, CTA, or any the purpose or effect of providing or marketing associated persons thereof, may use ‘‘any means or trading advisory services would require CTA subject to the same statutory and instrumentality of interstate commerce, directly or registration. Thus, a newsletter published to regulatory requirements under the CEA, indirectly—(A) to employ any device, scheme or communicate the trading advice of a particular CTA including the statutory and regulatory artifice to defraud any participant or client or or to promote a CTA ‘‘hotline’’ service and also antifraud prohibitions and related rules prospective client; or (B) to engage in any including performance data for commodity pools transaction, practice or course of business which would implicate the CTA definition, pertaining to CTAs and CPOs, as those operates as a fraud or deceit upon any participant notwithstanding that such performance data are or prospective client or participant.’’ objectively developed, because the publication is 68 In this case, the hyperlink communicates the predominantly one designed to provide trading views of the website operator as to the quality of 71 17 CFR 4.41(b); In re Armstrong, [Current advice. Thus, whether a particular presentation the services addressed or referred to at the Transfer Binder] Comm. Fut. L. Rep (CCH) ¶ 26,332 constitutes trading advice depends upon the facts hyperlinked site. (CFTC March 10, 1995), aff’d sub nom. Armstrong and circumstances in which the presentation is 69 This analysis would apply without regard to v. CFTC, No. 95–3161 (3d Cir. January 19, 1996), made and the representations, express or implied, the criteria selected by the viewer, which could, for cert. denied, 64 U.S.L.W. 3821 (June 10, 1996). made concerning the content of the presentation. example, call for all pools with rates of return above Commission Rule 4.41(b) requires that hypothetical 67 As noted above, compensation in this context a specified threshold or for presentation of pools in or simulated performance data be accompanied does not require that payment be received for the order of rates of return (e.g., high-to-low). However, either by the statement specified in Rule 4.41(b)(1) communication in question. Rather, if the provider a website that contained this search feature, but also or a comparable statement promulgated by a of such data profits from presenting it, even contained evaluative or mathematical services (e.g., registered futures association. The NFA’s indirectly, such as by promoting its own services, for the calculation of relative rates of return or the statutory ‘‘compensation or profit’’ standard is volatility of returns) would, however, indicate a cautionary statement can be found in NFA Rule 2– satisfied. different result. 29. 72 See 7 U.S.C. 6o; 17 CFR 4.41(c)(2). 73 17 CFR 4.41(c)(1). Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Rules and Regulations 42155

The following examples are anticipatable effects of the information his friends’ trading accounts on his website. illustrative of the requirements provided or the consequent registration By placing the performance data on a public discussed above. requirements under the Act. electronic forum that can be readily accessed (5) (Providing Leads) WXY is in the by others, John would be holding himself out (1) (General Internet Directory Not a CTA) business of generating leads and mailing lists as a CTA and thus would not satisfy one of Company XYZ operates a website that for third party vendors who are engaged in the criteria of the Section 4m(1) exemption provides a directory of hyperlinks to the various businesses. For a monthly fee, WXY’s from CTA registration. World Wide Web. XYZ has broad listings lead generating services are open to all (8) (Providing Telephone Directory for under such topics as Arts, Business and businesses who wish to obtain mailing lists CTAs Does Not Require Registration as CTA) Economy, Computer and Internet, Education, to solicit customers. WXY’s website on the XYZ operates a website that contains a Entertainment, Government, Health, News, World Wide Web allows site visitors to ‘‘sign directory which it represents to be a list of Recreation and Sports, Reference, Regional, up’’ to receive information on products and each registered CTA, containing the name, Science, Social Science and Society and services that are of particular interest to the address, and telephone number for each Culture. Within the Business and Economy site visitors by allowing the site visitors to CTA. Although XYZ may receive section is a subsection covering Futures and click on various listed categories (e.g., ‘‘Click compensation from advertisers on its Options. Among the hyperlinks in the here if you would like to receive information website, XYZ is not required to register as a Futures and Options sections are those of a on computers; Click here if you would like CTA. In this case, the limited information number of CTAs. XYZ does not charge CTAs to receive information on insurance provided on each CTA does not constitute for listings in its directory; XYZ’s revenues products’’). One of the categories allows site commodity trading advice. Further, by are derived solely from advertising on its visitors to click on a particular location if providing a complete directory of all homepage. XYZ does not exercise any they are interested in receiving commodity registered CTAs, and representing it as such, discretion as to the inclusion of any CTA on trading and investment information. Site XYZ is making clear that it is not promoting its directory, and any CTA requesting visitors are asked to register in a guest book or recommending any particular CTA but, inclusion will be included; these facts are which requests their name, electronic mail rather, is providing a directory which prominently disclosed. XYZ provides no address, street address, income and other interested persons can use to contact CTAs information about the content of the CTA information. of their choice. Further, as XYZ provides an sites to which hyperlinks are provided. XYZ WXY forwards to various CTAs the names equivalent level of data for each registered qualifies for the exclusion from the definition of and other information concerning the CTA, it does not implicitly recommend or of a CTA for a producer or publisher of persons who requested information on favor one CTA over another. information of general and regular commodity trading and investments. By (9) (Providing Biographical and Descriptive dissemination since its homepage provides engaging in such activities, WXY would be Information on Selected CTAs in a Manner information across all subject matters and the operating as a ‘‘finder’’ since its purpose That Implies Evaluation or Recommendation information provided by such links is solely would be to seek clients on behalf of Requires Registration as CTA) XYZ operates incidental to its business, which is to provide Commission registrants. WXY must therefore a website that contains a directory listing an index of the World Wide Web. register as an AP of the CTAs to whom it each registered CTA, containing the name, (2) (Recommending or Evaluating CTAs) furnishes customer names, or as a CTA. address, and telephone number for each Company XYZ operates a website that (6) (Electronic Mail to Specific Address CTA. Additionally, for certain CTAs, XYZ contains a list of hyperlinks to CTAs May Not Defeat 4m(1) Exemption) John Doe, provides information concerning the types of described as the ‘‘Ten Best CTAs for 1996.’’ a school teacher who studies the stock and trading programs they utilize and certain Each of the ten CTAs featured on XYZ’s futures markets for his own financial benefit performance data. XYZ does not charge homepage is required to pay XYZ a fixed fee. and trades futures contracts for his own visitors to its website for access to this In this scenario, XYZ is a CTA and is account, discusses his trades with his college information but is compensated by CTAs for required to register as such. By making roommate and friend, George, and two other displaying advertisements at the top of evaluative representations about the featured friends whom he has known for twenty years. certain web pages. Under these CTAs, XYZ is providing advice about the The three friends ask John to furnish circumstances, XYZ must register as a CTA. value of or advisability of trading in commodity trading advice to them and John Presentation of a compilation of biographical commodity interests. Since XYZ receives a agrees to act as their CTA. John is not and descriptive data on certain CTAs has the fee from each of the ten featured CTAs, the registered with the Commission in any effect, whether intended or otherwise, of compensation element of the CTA definition capacity, has not previously furnished promoting, recommending, or marketing the is satisfied. Absent the availability of an commodity trading advice to any other services provided by such CTAs. This exclusion from the CTA definition, XYZ persons, and has not held himself out conclusion is not affected by the fact that must register as a CTA. generally to the public as a CTA. John and XYZ provides very basic biographical data on (3) In the same factual scenario as in his three friends all have computers and all CTAs, since XYZ has plainly Example (2), XYZ does not receive a fee from electronic mail addresses and all four distinguished among CTAs and highlighted each of the listed CTAs, but instead receives persons use electronic mail on a regular basis certain CTAs for specialized attention. revenues from various advertisers on its to communicate with one another. John’s Moreover, XYZ is compensated for providing website. In this case too, XYZ is required to three friends agree that John may provide this information. As a result, absent the register as a CTA. The profit or compensation them with commodity trading advice and applicability of a specific exclusion, XYZ is element of the CTA definition includes fees other information relating to their commodity required to register as a CTA. received from advertisers and need not flow accounts through electronic mail to their (10) (Compensation or Profit Includes Offer directly from the person or persons advised electronic mail addresses to which only they of Free Services for a Limited Time) RST has or from the featured CTAs. have access. John’s use of an individual created a new daily ‘‘e-zine’’ on the World (4) (Disclaimers) Same facts as Example (2) electronic mail address for purposes of Wide Web that is principally devoted to above, except that XYZ also provides a communicating commodity-related commodity trading advice provided by RST disclaimer on its website that states ‘‘All information to his three friends would not in and promotion of RST’s advisory services. To materials and information provided with this case defeat a potential Section 4m(1) promote this new e-zine, RST is offering free respect to the CTAs contained herein are not exemption from CTA registration because the trial subscriptions for a limited time, e.g., intended as commodity trading advice and electronic mail communication in this ninety days. After this initial trial period, we make no specific recommendations with instance is personal and direct and is limited users must pay RST’s rate of $20 per week. respect to which CTA best suits your to electronic correspondence with those three RST is required to register as a CTA. Even investment needs. The information is individuals. though RST is offering free subscriptions to intended to enhance your futures investment (7) (Placing Performance Data on a all persons during its start-up period, it is decisions, not make them for you.’’ Again, Generally Accessible Internet Site Would Be nonetheless operating the ‘‘e-zine’’ and XYZ would be required to register as a CTA. Inconsistent With 4m(1) Exemption) Same providing commodity trading advice for XYZ has provided trading advice and cannot facts as above except John also operates a compensation or profit. As discussed above, by disclaimer alter the reasonably website and he posts the performance data of the ‘‘compensation or profit’’ element of the 42156 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Rules and Regulations

CTA definition includes the attraction of new ‘‘Futures Trading Entails Substantial Risk staff have found that initiating customers. and May Not be for Everyone.’’ LMN is in telephone contacts to identify persons (11) (Gratuitous Leads, Discussions in Chat violation of Commission Rule 4.41(b), which interested in receiving information Rooms) Sally Smith, an accountant, requires that hypothetical or simulated about futures trading 77 and frequently interacts with other persons via a performance be accompanied by the legend financial investment ‘‘chat room’’ on a major set forth in Rule 4.41(b)(i) or prescribed by introduction of potential investors to a 78 on-line service. During the course of these the NFA pursuant to 4.41(b)(ii). In order to CPO for compensation, may constitute interactions, she advises other persons in the comply with Rule 4.41(b), LMN is required solicitation activity requiring chat room concerning a recent investment to post either the CFTC’s or NFA’s legend registration. The breadth of the media she made in a commodity pool. She informs regarding hypothetical performance on the encompassed by the definition of others in the chat room that she is same webpage as, and presented so as to ‘‘solicitation’’ is comparable to that of exceptionally pleased with the returns on her ‘‘prominently’’ accompany, the presentation the underlying CTA and CPO investment and that she believes that the of the hypothetical performance. LMN also definitions, which are written broadly to CPO is an excellent investment manager. In may be in violation of the antifraud reach all modes of communication and support of her remarks, she also provides the provisions of Section 4o the CEA. pool’s performance data. Neither the CPO, its (15) (Editing Unfavorable Comments From conduct. For instance, the CPO principals or anyone involved in the pool’s Guestbook May Violate Rule 4.41) ABC is a definition uses several alternative operation is affiliated with Sally Smith or her CTA who maintains as part of its website an formulations of the transfer of employer. She does not receive any interactive guestbook on which individuals consideration to the CPO, i.e., ‘‘solicit,’’ compensation or other consideration for her post comments or questions concerning ‘‘accept’’ and ‘‘receive’’ funds, participation in the chat room, from the CPO, ABC’s trading system. ABC, which operates securities, or property for the purpose of others in the chat room, the site provider, or the website, has the ability to edit the trading in futures contracts. As stated by otherwise, whether directly or indirectly. comments received. ABC’s website CFTC staff, these formulations indicate Sally Smith would not be required to register description of the guestbook implies that any that Congress ‘‘intended to achieve the with the Commission as her chat room person can post comments on the guestbook, activity and the information that she is both favorable or unfavorable. If ABC then broadest possible effect—namely, to providing is strictly gratuitous. edits any unfavorable comments he receives cover all of the means by which a (12) (Compensated Leads, Discussions in without indicating this fact to visitors, ABC person can obtain control over pool Chat Rooms) If in the same factual scenario may violate Rule 4.41. ABC also may be in participants funds.’’ 79 Similarly, as as above in Example (11), Sally Smith is violation of the antifraud provisions of compensated by the CPO for soliciting Section 4o of the CEA. In Congressional discussions occurring prior to the members from the chat room, then Sally establishment of the Commission as an independent Smith would be required to register as an AP B. Solicitation Activity regulatory authority, the Subcommittee on Special Business Problems of the Permanent Committee on of the CPO. 1. Registration (13) (Use of Aliases, if Undisclosed, May Be Small Business noted that: Fraudulent) In the same factual scenario as Other types of communication by In order to adequately protect the investing means of electronic media may public, the subcommittee feels that registration Example (11), Dave Doe, the CPO for the requirements and fitness checks should be imposed ‘‘Futures Pool,’’ is also in the chat room. constitute solicitation activity, which on commodity solicitors, advisors, and all other Unlike Sally Smith, Dave Doe does not use gives rise to both registration and individuals who are involved either directly or his real name when communicating with disclosure duties. Section 4k(3) of the indirectly in influencing or advising the investment others in chat rooms; he uses the alias Act requires registration as an AP of a of customers’ funds in commodities. This would include any individuals or organizations identified ‘‘HonestMan.’’ Under this alias, Dave Doe CTA of any person associated with a tells others in the chat room that he has as influencing or actually investing funds in the heard that the ‘‘Futures Pool’’ is an ideal pool CTA ‘‘as a partner, officer, employee, commodities markets. for first time investors because it offers consultant, or agent (or any person Subcommittee on Special Business Problems of occupying a similar status or performing the House Permanent Select Committee on Small excellent performance and low fees. In Business, H.R. Rep. No. 93–963, 93d Cong., 2d Sess. response to an inquiry from someone in the similar functions), in any capacity at 36–37 (1974) (emphasis added). chat room, ‘‘HonestMan’’ also states that ‘‘he which involves (i) the solicitation of a 77 See Division of Trading and Markets has never heard of anyone losing money who client’s or prospective client’s Interpretative Letter No. 90–11, [1990–1992 invested in the Futures Pool,’’ which he discretionary account or (ii) the Transfer Binder] Comm. Fut. L. Rep. (CCH) ¶ knows to be untrue. Dave Doe is in violation supervision of any person or persons so 24,872 (June 12, 1990); Division of Trading and Markets Interpretative Letter 90–8, [1990–1992 of the antifraud provisions of Section 4o of engaged.’’ 74 Similarly, Section 4k(2) the CEA and Commission Rule 4.41. Transfer Binder] Comm. Fut. L. Rep. (CCH) ¶ 24,831 Additionally, Dave Doe has violated requires the registration as APs of (May 7, 1990). The Commission’s Office of the General Counsel (‘‘OGC’’) has stated that employees Commission Rule 4.21(a) because he has persons associated with a commodity pool operator ‘‘as a partner, officer, of a registered FCM are required to register as APs solicited prospective pool participants for the if they initiate customer contact by telephoning ‘‘Futures Pool’’ but has not delivered its employee, consultant, or agent (or any prospective customers even if their responsibilities Disclosure Document. person occupying a similar status or are limited to determining customer interest in (14) (Hypothetical Performance Must Be performing similar functions), in any speaking with a registered representative or Accompanied by Cautionary Statement of capacity that involves (i) the solicitation receiving promotional literature and referring interested customers to a registered AP. OGC Rule 4.41(b)) LMN is a registered CTA who of funds, securities, or property for a operates a website. LMN’s website contains concluded that the initiation of telephone contact participation in a commodity pool or (ii) constituted a solicitation requiring registration as an a table of contents. One of the items listed AP. CFTC Interpretative Letter No. 77–8, [1977– is a hyperlink to ‘‘Hypothetical the supervision of any person or persons so engaged.’’ 75 1980 Transfer Binder] Comm. Fut. L. Rep. (CCH) Performance.’’ On the Hypothetical ¶ 20,430 (Office of the General Counsel, May 16, Performance section of its website, which can ‘‘Solicitation’’ activity has been 1977). be accessed only after a person has received construed by Commission staff to 78 See, e.g., Division of Trading and Markets a copy of LMN’s Disclosure Document, LMN include conduct that ‘‘influences even Interpretative Letter No. 90–4, [1987–1990 Transfer demonstrates that based upon hypothetical indirectly the investment of customer Binder] Comm. Fut. L. Rep. (CCH) ¶ 24,588 (January performance results, its trading program funds.’’ 76 For example, Commission 31, 1990)(a person who introduces a potential yields an annualized return of in excess of 60 investor to a CPO and who is compensated as a ‘‘finder’’ would be soliciting on behalf of the CPO percent. LMN does not provide any 74 7 U.S.C. 6k(3). and thus required to register as an AP thereof). statements about the significance of 75 7 U.S.C. 6k(2). 79 CFTC Interpretative Letter No. 75–17, [1975– hypothetical performance. LMN only states, 76 Division of Trading and Markets Interpretative 1977 Transfer Binder] Comm. Fut. L. Rep. (CCH) in bold faced type, that ‘‘Past Performance is Letter No. 90–11, [1990–1992 Transfer Binder] ¶ 20,112 (Office of the General Counsel, Trading No Guarantee of Futures Results’’ and Comm. Fut. L. Rep. (CCH) ¶ 24,872 (June 12, 1990). and Markets, November 4, 1975). Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Rules and Regulations 42157 noted above, the CTA definition refers directly or indirectly solic its, accepts or ‘‘guide’’ in implementing regulations to multiple types of media, including receives funds from a pool participant,82 requiring the delivery of a Disclosure electronic media, as vehicles for such CTA or CPO must ‘‘deliver or Document by CTAs.87 In that release, providing trading advice. cause to be delivered’’ to the the Commission stated that Rule 4.31 The Internet provides a medium for a prospective client or pool participant a ‘‘established disclosure requirements for potentially broad range of solicitation Disclosure Document that conforms to CTAs that seek to control clients’ and promotional activity, as well as for the applicable rules.83 The requirement accounts (e.g., through managed conveying trading advice. Plainly, CTAs to deliver a Disclosure Document accounts) or influence clients’ and CPOs who use electronic media to attaches irrespective of the medium commodity interest trading by means of inform members of the public of their through which solicitation occurs. a systematic advisory program (e.g., futures activities are engaged in the Consequently, a CTA or CPO soliciting through guided accounts).’’ 88 Thus, solicitation of prospective customers. prospective customers or pool CTAs who solicit actual or prospective Thus, most websites of CTAs and CPOs participants by means of electronic clients through electronic media for on the World Wide Web are forms of media must ‘‘delive[r] or caus[e] to be purposes of directing or guiding solicitation. This is true even if the delivered’’ a required Disclosure customer accounts must provide each website is limited to biographical or Document prior to such solicitation by such customer with a Disclosure descriptive information, for such data prominently providing a copy of that Document at or before the time of announces the CTA’s or CPO’s business document at, or through hyperlinks solicitation. CTAs who do not direct or to prospective clientele and can with, the same site at which the guide customer accounts, e.g., those reasonably be assumed to elicit the solicitation occurs or by delivering a who provide trading advice in a interest of potential customers. hardcopy Disclosure Document to a newsletter, would not be required to Similarly, a website that is not prospective customer prior to providing provide prospective clients with a operated by a CTA or CPO, but which access to any electronic solicitation.84 Disclosure Document. identifies potential customers for one or Application of the delivery requirement The following examples are more CTAs or CPOs or evokes potential in the context of electronic media is illustrative of the requirements customer interest in such CTAs or CPOs discussed below in the following discussed above. generally would constitute a section. (16) (Posting Promotional Materials is a solicitation. For example, a website With respect to CTAs, the Solicitation Requiring Disclosure Document marketing the trading programs of requirement to deliver a Disclosure Delivery) XYZ is a CTA who operates a site selected CTAs would constitute a Document applies only where the CTA on the World Wide Web. On its website, XYZ solicitation on behalf of such CTAs. solicits a prospective client to ‘‘direct’’ provides a description of its principals and Likewise, the operator of a website that or ‘‘guide’’ his account.85 The term a brief summary of its trading strategy and accepts and forwards to a CTA or CPO ‘‘direct’’ as used in Rule 4.31 refers ‘‘to the types of accounts it manages. XYZ also the names and addresses of potential agreements whereby a person is provides its phone number and electronic customers, and receives compensation authorized to cause transactions to be mail address for interested persons to contact for such referrals from the CTA or CPO, it. XYZ does not provide a copy of its effected for a client’s commodity Disclosure Document. In this case, XYZ is would be soliciting on behalf of the CTA interest account without the client’s violating Rule 4.31(a) because it is soliciting or CPO. Consequently, the operators of specific authorization.’’ 86 Although the prospective clients without delivering a such sites may be required to register as term ‘‘guide’’ is not defined in Part 4, Disclosure Document.89 APs of the CTA on whose behalf the the Commission referred to the term (17) (Posting Descriptive Performance solicitation was undertaken,80 and as an Information or Performance Data is a AP of the CPO on whose behalf the agreement (whichever is earlier), delivers or causes Solicitation Requiring Disclosure Document solicitation occurs. to be delivered to the prospective client a Delivery). JKL, a registered CPO, operates a Disclosure Document for the trading program site on the World Wide Web. The website 2. Required Delivery of Disclosure pursuant to which the trading advisor seeks to provides biographical information about the Document direct the client’s account or to guide the client’s principals of the CPO and investment trading, containing the information set forth in Commission regulations require that §§ 4.34 and 4.35. opportunities that the CPO offers, including various commodity pools with differing risk at or before the time a CTA solicits or 17 CFR 4.31(a). 82 Rule 4.21(a) provides: parameters and performance histories. JKL’s enters into an agreement to direct or website also posts summary performance 81 No commodity pool operator registered or guide a customer’s account, or a CPO required to be registered under the Act may, information for the various commodity pools. directly or indirectly, solicit, accept or receive The posting of biographical and investment 80 If such persons are already registered as CTAs funds, securities or other property from a information operates as a solicitation, as does or CPOs, registration as an AP of that registration prospective participant in a pool that it operates or posting of summary performance data. Thus, category is not required. Further, the definition of that it intends to operate unless, on or before the JKL would be required to provide the date it engages in that activity, the commodity pool an AP of a CTA includes only persons who are Disclosure Documents for its various pools to involved in ‘‘(i) the solicitation of a client’s or operator delivers or causes to be delivered to the prospective client’s discretionary account or (ii) the prospective participant a Disclosure Document for the website visitors at or before the time it supervision of any person or persons so engaged.’’ the pool containing the information set forth in engages in the solicitation. JKL must provide 7 U.S.C. 6k(3). Thus, the appropriate registration § 4.24; * * *. its Disclosure Documents either directly on category for persons who solicit on behalf of CTAs 17 CFR 4.21(a). its website or by means of prominently who do not manage accounts is that of CTA, as they 83 The Disclosure Document required to be highlighted hyperlinks from its website and are providing trading advice by advising concerning furnished by a CTA must contain the information ensure that visitors receive the Disclosure or marketing the services of certain CTAs. set forth in Rules 4.34 and 4.35. The Disclosure Documents at the same time as or before their 81 Rule 4.31(a) provides: Document required to be furnished by a CPO must viewing of other website materials, i.e., the contain the information set forth in Rules 4.24 and No commodity trading advisor registered or time at which the solicitation occurs. The required to be registered under the Act may solicit 4.25. a prospective client, or enter into an agreement with 84 As discussed below, CTAs and CPOs may a prospective client to direct the client’s commodity provide an outline or table of contents of the 87 44 FR 1918, 1923 (January 8, 1979). interest account or to guide the client’s commodity website prior to the reader receiving a Disclosure 88 Id. interest trading by means of a systematic program Document. 89 Guidance regarding the manner by which CTAs that recommends specific transactions, unless the 85 See discussion of managing customer accounts, and CPOs may deliver Disclosure Documents by commodity trading advisor, at or before the time it supra note 50. means of a website is provided in the following engages in the solicitation or enters into the 86 17 CFR 4.10(f). section. 42158 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Rules and Regulations reader must review the Disclosure Document prospective clients by means of electronic electronic and non-electronic media. before being permitted access to the mail unless it has previously delivered its Information conveyed electronically biographical and other information. JKL also Disclosure Document to them. Failure to must achieve the same objectives as must inform visitors that, in addition to deliver a Disclosure Document to persons paper-based communications. Further, reviewing the various Disclosure Documents whom it solicits by electronic mail would on-line, they may obtain printed copies of the constitute a violation of Rule 4.31. the rules applicable to such Disclosure Documents upon request. ABC may periodically send electronic mail communications should not favor one (18) Same facts as above, except JKL’s to prospective clients after they have form of communication over another; to website does not provide a copy of JKL’s received a copy of its Disclosure Document the extent possible, they should be Disclosure Documents or hyperlink to them. for as long as that Disclosure Document ‘‘form neutral.’’ The medium for Rather, following the performance data, the remains valid. If, however, ABC revises its providing required information should website provides a telephone number that Disclosure Document to reflect changes in its be selected based upon the relative persons can call to request the delivery of trading program, or the Document becomes merits of the two methods of specific commodity pool Disclosure out of date, ABC would be required to cease Documents. The placement of performance sending electronic mail to prospective clients communication, not the application of information on a website followed by a until after it has delivered to each such client the Commission’s regulations. telephone number that visitors can call to a copy of its new Disclosure Document. Choice/Consent. Although the request a Disclosure Document would be Commission supports the use of insufficient to satisfy the requirements of III. Electronic Delivery of Disclosure electronic media to enhance the speed Rule 4.21(a) as delivery of the Disclosure Documents and efficiency of communications by Document would not accompany or precede The Commission is cognizant of the futures professionals with market the solicitation. potential benefits of electronic participants, it recognizes that even (19) (Delivering a Disclosure Document communication of information among among those persons who have access to Necessary for Solicitation of Prospective Pool Participants) ABC is a registered CPO who participants in the futures markets electronic delivery, many may prefer to operates a website on the World Wide Web. generally and in the managed futures receive information in paper form. On its website, ABC provides a brief marketplace in particular. Electronic Accordingly, a CTA or CPO may use description of the various commodity pools technology may enhance information electronic delivery in lieu of traditional it offers. ABC also provides copies of each of access by market users and facilitate paper-based delivery of a Disclosure its Disclosure Documents, in an acceptable communication by brokers and other Document only where the intended format, which visitors to its website must commodity professionals. A number of recipient provides informed consent to access from a menu of options at the CTAs and CPOs have expressed interest receipt of the document by means of beginning of its homepage, before proceeding in using electronic media to provide electronic delivery. Similarly, informed to any further information concerning one of the offered commodity pools. By providing existing and prospective clients or pool consent also must be obtained from a access to each of its Disclosure Documents participants with Disclosure Documents pool participant if a CPO plans to use and assuring that the prospective participant and other required disclosures. A electronic media to deliver monthly or accessed the relevant Document before central goal of this release is to provide quarterly account statements required receiving any information other than a brief guidance as to the circumstances in under Rule 4.22.91 description of the pool, ABC has complied which electronic media may be used for CTAs and CPOs who intend to make with Rule 4.21(a), which requires that at or these purposes. electronic delivery must inform before the time a CPO solicits a prospective The Commission believes that, as a potential recipients concerning: (1) the participant, the CPO deliver to the general matter, the requirements that requirement that prospective managed prospective client a Disclosure Document for CTAs and CPOs deliver Disclosure account customers and commodity pool such commodity pool. (20) (Term Sheet Cannot Replace Documents to prospective clients and participants receive a Disclosure Disclosure Document) In the same example pool participants, respectively, may be Document for the relevant trading as above, instead of providing the Disclosure satisfied by the use of electronic media, program or commodity pool at or prior Documents for each of the pools, ABC provided appropriate measures are to the time of solicitation and such other provides a notice of intended offering and taken to assure that the purposes of the documents as the CTA or CPO seeks statement of the terms of the intended delivery requirement are achieved. By consent to deliver by electronic media; offering (‘‘term sheet’’). ABC’s pools do not this release, the Commission is giving (2) their right to elect to receive the accept investors who are not ‘‘accredited notice that CTAs and CPOs may use Disclosure Document (and other investors,’’ as defined in 17 CFR 230.501(a). electronic media in accordance with the Nevertheless, ABC has not satisfied the 90 91 criteria of Rule 4.21(a). Since ABC’s term criteria discussed below to satisfy the The requirement of a manual signature on such Disclosure Document delivery statements pursuant to Rule 4.22(h) may be satisfied sheet can be accessed by persons who are not if the CPO keeps a manually signed copy at its place ‘‘accredited investors,’’ ABC is soliciting requirement as to consenting of business in accordance with Rule 4.23. See such persons without having provided a copy prospective customers and pool Division of Trading and Markets Interpretative of its Disclosure Document. participants and to provide certain Letter No. 93–61, [1992–1994 Transfer Binder] (21) (Distribution of Promotional Materials related documents, as specified below. Comm. Fut. L. Rep. (CCH) ¶ 25,780 (June 24, 1993) Through Personal Electronic Mail is a (CPO may use facsimile signature pursuant to Rule The Commission invites comment on 4.22(h) provided CPO retains the Account Solicitation Requiring Disclosure Document these criteria and any additional criteria Delivery) ABC is a CTA who operates a site Statement from which facsimile is made in that commenters believe to be relevant accordance with Rule 4.23); cf. Advisory No. 28– on the World Wide Web. Visitors to ABC’s in this context. 96 [Current Transfer Binder] Comm. Fut. L. Rep. website, who may not have reviewed ABC’s (CCH) ¶ 26,711 (May 28, 1996) (use of personal Disclosure Document, are invited to give A. Criteria identification number may be deemed equivalent of their electronic mail address so that ABC can manual signature for purposes of attestation under put them on its electronic mailing list. Consistency. The Commission Commission Rule 1.10(d)(4)), supra note 25. Periodically, ABC sends to those persons believes that it is important to maintain Commission regulations do not currently permit who have provided electronic mail addresses consistency in the application of CPOs to deliver Annual Reports by electronic information concerning ABC’s monthly means. However, the Commission invites comment regulatory requirements as between from CPOs, accounting professionals, and other performance results. Use of electronic mail in interested persons regarding the advisability of this manner operates as a form of solicitation. 90 Some of these criteria have been noted by the amending Rule 1.16 to allow for certification of Accordingly, ABC may not send performance SEC in its releases on electronic media. See 61 FR Annual Reports by independent public accountants data or comparable information to 24644; 60 FR 53458. by means of electronic media. Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Rules and Regulations 42159 specified documents to the extent When a person delivers a document by through presentation of an outline or consent is sought for electronic delivery means of postal mail or provides the table of contents for the website, with of other communications) in hardcopy document personally, the recipient the Disclosure Document listed as the form or by electronic means; (3) the simultaneously has notice of the first item in the outline or table of specific medium and method by which delivery of the document and receives contents. The outline or table of electronic delivery will be made (for the actual document. By contrast, when contents may include topic headings example, whether delivery will be a person distributes a document by that are neutrally stated, such as limited to users of a particular means of electronic media, the ‘‘Disclosure Document’’, ‘‘Background proprietary on-line system, will be made document (a) will be available only to of CTAs’’ and ‘‘How to Contact Us.’’ available on the World Wide Web, or persons who possess the necessary Icons or images also may accompany will be made as an attachment to computer equipment and software to such topic headings, but both the topic electronic mail); (4) the potential costs receive it, (b) must be brought to the headings and any icons or images must associated with receiving or accessing intended recipient’s attention and (c) be presented neutrally. electronically delivered documents, will be accessible only to recipients who The website must be constructed so such as costs relating to on-line access take certain actions in order to access that the reader may not proceed to charges, the requirement to maintain an and review the document. subsequent sections of the site until he electronic mail account, or the need to The prospective client or pool has first accessed and proceeded possess certain proprietary software participant must be provided the through the Disclosure Document. Thus, packages (such as a particular word relevant Disclosure Document prior to if an outline or table of contents is used, processing program or operating or at the time of solicitation. In general, the only active hyperlink should be to system); (5) the types of documents that the breadth of the term ‘‘solicitation,’’ the Disclosure Document. For example, will be delivered electronically, i.e., combined with the requirement to if a visitor attempts to view another documents in addition to the Disclosure deliver a Disclosure Document at the portion of the website, the website Document, such as supplements to time of or prior to solicitation, should inform the visitor that he must Disclosure Documents and pool account significantly restricts the information first access the Disclosure Document statements, and the form in which they that CTAs or CPOs may present about before he will be allowed elsewhere in will be delivered; and (6) the their services prior to delivering a the website. Only after a visitor has been prospective customers’ right to revoke Disclosure Document. As discussed delivered a Disclosure Document and their consent to electronic delivery at above, even preliminary contacts or affirmed that he has reviewed it may any time and the period of time during communication of basic information hyperlinks to other sections of the which the consent to electronic delivery may constitute a solicitation. Indeed, a website be activated. will be effective, absent revocation. website operated by a CTA who simply Delivery of a Disclosure Document for Notification concerning at least each of identifies himself as such may operate purposes of solicitation, i.e., these factors is necessary to the receipt as a solicitation, even without other Commission Rules 4.21(a) and 4.31(a), of informed consent from the intended content. Consequently, if for example, a will be complete when the recipient recipient. As informed consent must be CTA’s Disclosure Document is scrolls down to the end of the revocable at any time, if a person presented at the end of the CTA’s Disclosure Document and confirms that initially agrees to receive certain website, or made available only at the he has received the Document. Many required disclosures electronically, he option of the reader, delivery of the website operators currently employ similar designs, for example, in must be permitted to revoke such Disclosure Document may occur only requiring persons to agree to a set of consent at any time, and the CTA or after the solicitation has occurred, if at terms and conditions before proceeding CPO must then provide him with all. In such instances, the CTA operating in a website or to acknowledge that they disclosures in hardcopy form. Potential the website would be in violation of are of a certain age. This confirmation recipients of electronic communication Commission rules with respect to of delivery is for the purpose of may provide their informed consent delivery of Disclosure Documents prior complying with the requirement that the either in writing or by electronic means. to or at the time of solicitation. To Disclosure Document be provided at or Delivery and Access. As noted facilitate the operation of websites by before the time of solicitation. This previously, Commission rules require CTAs and CPOs in a manner consistent confirmation, which is required in the that at or before the time at which a with Commission rules and without CTA or CPO solicits a prospective client context of electronic presentations of unduly burdening the use of this solicitation material, is distinct from the or pool participant, respectively, he medium, the Commission provides the must deliver, or cause to be delivered, receipt of acknowledgment that is following guidance. required before a prospective pool the applicable Disclosure Document.92 First, a website must provide access to participant or client may open an the Disclosure Document prior to any 92 account pursuant to Rules 4.21(b) and As noted by example above, a CPO may not content other than de minimis 4.31(b). The requirements for obtaining satisfy the requirements of Rule 4.21(a) by introductory material. For example, a electronically posting a ‘‘term sheet.’’ Rule 4.21(a) a receipt of acknowledgment under provides that ‘‘where the prospective participant is visitor may be given a general Rules 4.21(b) and 4.31(b) are discussed an accredited investor, as defined in 17 CFR description of the contents of a website below in the acknowledgment section. 230.501(a), a notice of intended offering and before reviewing the Disclosure statement of the terms of the intended offering may Websites that contain multiple trading be provided prior to delivery of a Disclosure Document. This may be accomplished programs or commodity pools may Document * * *.’’ In posting a term sheet on a contain a separate Disclosure Document public electronic forum, a CPO is soliciting all CPO intends the offering to be an exempt private persons who are able to access such term sheet, offering under SEC Regulation D, such CPO must for each such program or pool. CTAs or many of whom may not be ‘‘accredited investors.’’ comply with the solicitation and advertising CPOs, however, are not required to Consequently, unless a CPO restricts access to its restrictions in SEC Rule 502(c). See 60 FR at 53463– deliver a Disclosure Document for every term sheet to ‘‘accredited investors’’ only, a CPO 64 (in which example (20) of SEC’s release indicates trading program or commodity pool must also provide a copy of its Disclosure that placing offering materials on Internet would Document in accordance with the criteria set forth not be consistent with prohibition against general before allowing a potential client or herein in order to comply with the requirements of solicitation or advertising in Rule 502(c) of pool participant access to all portions of Rule 4.21(a). In any event, to the extent that the Regulation D). a website. Rather, a CTA or CPO may 42160 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Rules and Regulations allow a prospective investor to select a delivery should be made in a manner Before a CTA may enter into an particular trading program or that is not unduly burdensome to the agreement with a prospective client to commodity pool, and following delivery recipient of the document. In cases direct or guide his account, or before a of the Disclosure Document for such where information is unduly CPO may accept or receive funds, program or pool, the prospective burdensome to access, the Commission securities or property from a prospective investor may access general information will deem such delivery to be pool participant, such CTA or CPO must or material specific to such program or ineffective unless the party making receive a signed and dated pool. CTAs or CPOs who operate several delivery can demonstrate that the acknowledgment from the prospective trading programs or commodity pools recipient actually accessed the client or pool participant confirming must ensure that there is no solicitation document. In the case of a Disclosure receipt of the Disclosure Document for on behalf of programs or pools for Document, an acknowledgment of the trading program or pool, which a Disclosure Document has not receipt, provided that it is fully respectively.95 A CPO or CTA may not been delivered and reviewed. For informed and voluntary, should suffice rely solely on the fact that a prospective example, a CPO who delivers a for this purpose. investor may have visited the Disclosure prospective pool participant a However, electronic media present Document while reviewing a CPO’s or Disclosure Document for ‘‘Pool A’’ must special concerns with respect to access CTA’s homepage or consented to receive not allow such prospective pool because an acknowledgment of receipt a Disclosure Document by electronic participant to access materials on his in this context does not evidence the media.96 The signed and dated website pertaining to ‘‘Pool B.’’ ability to access the document over acknowledgment is a certification by the Commission rules require that a CPO time. The Commission believes that the prospective investor that he has or CTA deliver a particular Disclosure recipient of electronically delivered received the required Disclosure Document only once; consequently, documents should be able to have Document and is among the items with respect to ‘‘repeat visitors,’’ repeated access to the document required to be kept by CPOs and CTAs separate delivery is not required for following delivery. Such accessibility under the Part 4 recordkeeping subsequent solicitations for the same should be comparable to that of a paper requirements.97 pool or trading program so long as the document that can be read and re-read The Commission supports the use of Disclosure Document has not changed over time.94 The ability to re-read a electronic media to obtain customer or expired. Thus, CTAs and CPOs may document, such as a Disclosure acknowledgments but believes that design websites systems that allow Document, is often necessary to a measures must be taken to assure an ‘‘repeat visitors’’ who have already careful evaluation of the risks and adequate level of verification of the reviewed a Disclosure Document to benefits of a particular investment or a authenticity of such acknowledgments. bypass the requirement to receive that meaningful comparison of Disclosure Requiring the reader to send an Disclosure Document again. For Documents of different pools or trading electronic mail message or click on an example, a prospective investor, after programs. Accordingly, in order for the ‘‘acknowledgment button’’ on a website receiving the required Disclosure electronic delivery of Disclosure would not, without more, be sufficient Document(s), may be given a password Documents to satisfy the Commission’s for this purpose. As discussed above, or PIN to enter at the beginning of a requirements, the recipient must be able the Division of Trading and Markets has CTA’s or CPO’s homepage to allow him to access the document upon receipt permitted the use of a personal to bypass the consent and Disclosure and continually thereafter. If the method identification number (‘‘PIN’’) to Document delivery portions of the of electronic delivery of a Disclosure represent a manual signature for the website for the trading program(s) or Document requires the reader to transmission of certain financial reports download a file to a permanent storage in which a manual signature normally is pool(s) for which he has already 98 recieved a Disclosure Document. device (such as a hard drive) and to required. The use of a PIN serves two However, in order to comply with confirm that he has done so, the important objectives. First, it enables accessibility concern may be addressed. Commission Rules 4.26 and 4.36, the the recipient, to the extent practicable, However, in other circumstances, such password or PIN must expire once the to verify the identity of the person as where a Disclosure Document is not CPO or CTA amends his Disclosure sending the electronic communication. downloaded, the Commission believes Document(s) or the effective period of If an electronic transmission is that accessibility of the Disclosure the Disclosure Documents expires. Document to the prospective (or actual) 95 Documents can be delivered See Rule 4.31(b) and Rule 4.21(b) for CTAs and CTA client or commodity pool CPOs, respectively. electronically in a variety of ways; some participant for a period of nine months 96 As noted previously, the requirement of a of these methods require very little after the solicitation occurs would be signed acknowledgment of receipt is distinct from effort on the part of the recipient, that of delivery, i.e., an adequate delivery sufficient but requests comment on this whereas others demand substantial mechanism may be implemented without receipt of issue. a signed acknowledgment of receipt. In the recent computer expertise or lengthy download Acknowledgments. The requirement revisions to Part 4, 60 FR 38146 (July 25, 1995), the times.93 The Commission believes that to deliver a Disclosure Document is only Commission confirmed the importance of the requirement that the prospective investor separately part of a CTA’s or CPO’s obligation. 93 Certain methods of delivery require relatively acknowledge receipt of the required Disclosure little sophistication on the part of the user. For Document but commented that ‘‘an instance, the content of a site on the World Wide does not necessarily intend to preclude any acknowledgment may be included in the Web can be accessed simply by entering that particular types of electronic transfer but, instead, subscription documents for a pool, provided that address into a ‘‘web browser’’ program. Similarly, is seeking to ensure that the recipient is able to the text of the acknowledgment is prominently the contents of an electronic mail message are access the information communicated without captioned and distinguished from the subscription viewed simply by reading the electronic mail screen substantial burden. agreement and that there is a separate line for the or by viewing an attachment to electronic mail that 94 For example, a ‘‘one-time’’ or ‘‘live’’ broadcast acknowledgment signature and date thereof.’’ 60 FR is formatted for a widely available word processing over the Internet generally does not allow a at 38181. program. On the other hand, where a party must recipient repeated access to the information. In the 97 See Commission Rules 4.23(a)(3) and 4.33(a)(2), download a file and also a program to decode that absence of adequate evidence that the intended respectively. file (e.g., ‘‘unzip’’ programs), it is less certain that recipient actually recorded or stored the 98 Advisory No. 28–96, [Current Transfer Binder] such party will ultimately be able to access the information, this method of presentation would not Comm. Fut. L. Rep. (CCH) ¶ 26,711 (May 28, 1996), document. In raising this concern, the Commission satisfy the access concerns identified above. discussed supra note 25. Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Rules and Regulations 42161 accompanied by a unique and valid PIN, form may be sent to prospective the requirements of Commission rules and the recipient knows the identity of investors by mail, facsimile, or through regarding the order of presentation and the person who requested and received the Internet. the relative prominence of such PIN, it then may confirm the Format. The Commission’s rules information.103 Such material would identity of the sender of such message. contain a number of specific format constitute ‘‘supplemental Second, use of PINs helps to protect requirements relevant to Disclosure information’’ 104 and thus must be innocent persons from false claims that Documents, reflecting the Commission’s presented in the Disclosure Document they have sent a particular electronic determination that certain information in accordance with Rules 4.24(v) and communication. If a message is sent by should be accorded special prominence 4.34(n).105 Such material may not be one person claiming to be another, the in the Disclosure Document. Parameters presented in a manner that obscures or failure to include the valid PIN assigned for the order of presentation ensure that diminishes the prominence of any to such person would render the certain key information is presented required disclosures. If one version of a message invalid. Although the first, that important disclosures are not document contains audio, video, Commission invites comments from minimized or relegated to the end of the graphic or other material that cannot be interested parties generally on methods document, and that information of included in another version, e.g., if the to assure the validity of electronic lesser relevance is placed after matters electronic version of a Disclosure acknowledgments, it believes that a PIN of greater importance. The prescribed Document has an audio narration, such system similar to that used by FCMs for order also facilitates the comparison of material must be reproduced in the the filing of financial reports with documents by maintaining the same medium of the version that does not certain self-regulatory organizations sequence of topics across documents of actually contain the material.106 would provide an acceptable form of different registrants. For example, Rules Modifications. Commission Rules obtaining acknowledgments of receipt of 4.24, 4.25, 4.34 and 4.35 include 4.26 and 4.36 require that Disclosure Disclosure Documents. Under Rules specifications as to the placement in Documents be used for no more than 4.21(b) and 4.31(b), CPOs and CTAs Disclosure Documents of required risk nine months and that performance bear the burden of obtaining a valid disclosure and cautionary statements, information included therein be current acknowledgment of receipt from tables of contents, and supplemental as of a date not more than three months prospective pool participants and information, as well as the sequence of prior to the date of the Disclosure clients; they are thus responsible for various past performance records.100 In Document. Additionally, if at any time establishing procedures adequate to addition, certain items are required to the Disclosure Document becomes establish the authenticity of electronic be set forth in capital letters and bold- materially inaccurate or incomplete, the acknowledgments and to preserve face type, certain information is registrant must correct the defect and records thereof. Currently, in light of required to be accompanied by distribute the correction to, in the case this concern, if a CTA or CPO wishes to cautionary legends or disclaimers, and establish a system for the electronic in some contexts, page number cross- 103 For example, Rule 4.25(a)(3)(ii) requires that performance results for pools of a different class 101 acknowledgement of receipt of a references are required. from the offered pool be presented ‘‘less Disclosure Document, it must create a Where Commission rules specify the prominently’’ than the performance of pools of the procedure by which the prospective prominence, location, or other attributes same class. Audio, video or graphic devices may of the information required to be not be used in a manner that is inconsistent with client or pool participant requests and this requirement. Similarly, an audio voice-over receives by means of electronic or postal delivered, any acceptable electronic that asks a prospective client to turn directly to the mail an individualized PIN from the presentation of such information used to CTA’s performance tables, bypassing the cautionary CPO or CTA. Once a person receives a satisfy Commission rules must present and risk disclosure statements and the forepart the information in the same format and information required by Rule 4.34 (a), (b) and (d), PIN, he may then use that PIN in lieu is not permitted. of a manual signature to authenticate order as specified in Commission rules 104 ‘‘Supplemental information’’ refers to the acknowledgment of receipt.99 The and must reflect (if it does not actually ‘‘information not specifically called for by mechanics of using a PIN signature are replicate) the differences in emphasis Commission rules or federal or state securities laws illustrated by example below. The and prominence that would exist in the or regulations.’’ 60 FR at 38150. paper document.102 Further, the 105 Rules 4.24(v) and 4.34(n) specify that Commission welcomes comment supplemental performance information (not concerning other procedures for addition of any audio, video or graphic including proprietary, hypothetical, extracted, pro electronic acknowledgment that are material, whether included as separate forma or simulated trading results) must be placed consistent with the objectives stated sections or as enhancements or overlays after all required performance information in the to written text, must be consistent with Disclosure Document and that supplemental non- above. performance information relating to a required Of course, CTAs or CPOs, even those disclosure may be included with the related providing a Disclosure Document by 100 See Rules 4.24(a) through (d), 4.24(v), required disclosure. Other supplemental electronic media, are not required to 4.25(a)(2) and (3), 4.34(a) through (d), 4.34(n) and information may be included only after all required obtain acknowledgments of receipt 4.35(a)(2). disclosures. 17 CFR 4.24(v) and 4.34(n). Rules 101 See Rules 4.24 (a) and (b), 4.25 (a)(9) and (c), 4.24(v) and 4.34(n) also provide that supplemental electronically. A CTA or CPO may 4.34 (a) and (b), 4.35 (a)(8) and (b) and 4.41(b)(1). information may not be misleading in content or require that the prospective client or 102 For example, where text is required to be presentation or inconsistent with the required pool participant provide a signed and presented in bold-face type, acceptable on-screen disclosures and is subject to the antifraud dated paper acknowledgment by mail or presentation could be accomplished by changing provisions of the Act and Commission and NFA the color or shading of the text and/or the rules. facsimile, although the acknowledgment background in a prominent manner. In addition, 106 Commission Rules 4.26(d) and 4.36(d) require information such as the break-even point per unit that a CPO or CTA, respectively, file a Disclosure 99 The Commission notes that various states have of initial investment must be presented in the Document with the Commission prior to its use. To established or are developing requirements for forepart of the Disclosure Document and the Risk the extent that a Disclosure Document contains any ‘‘digital signatures.’’ See, e.g., ‘‘Utah Digital Disclosure Statement, which must appear audio, video, or graphic material, the CPO or CTA Signature Act,’’ Utah Code Ann. 46–3–101 et seq. immediately following disclosures required to be on must file that version as well as any paper version. (1995). To the extent that a particular state the cover of the Disclosure Document, must CPOs and CTAs who are required to file a recognizes as valid only certain digital signatures, highlight the page (or highlight the link) where the Disclosure Document that contains audio, video, or it is the responsibility of the registrant to ensure break-even point is presented. If the document is graphic portions should contact the Division of compliance with such rules in order to comply with not paginated, a registrant may use hyperlinks in Trading and Markets to establish a method whereby state law requirements. lieu of page numbers. the Commission may receive such documents. 42162 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Rules and Regulations of a CPO, all existing pool participants or a copy of each report, letter, circular, account clients must receive a Disclosure and previously solicited pool memorandum, publication, writing, Document; (b) they can receive the participants prior to accepting or advertisement or other literature or Disclosure Document in hardcopy if they receiving funds from such prospective advice (including the texts of prefer; (c) the electronic version of the 107 Disclosure Document will be contained in a participants, and in the case of a standardized oral presentations and of portion of GHJ’s website; (d) persons CTA, all existing clients in the trading radio, television, seminar or similar accessing the electronic version of the program and each previously solicited mass media presentations) distributed Disclosure Document may incur charges client for the trading program prior to or caused to be delivered * ** relating to on-line access fees; (e) the original entering into an agreement to manage showing the first date of distribution or Disclosure Document as well as any such prospective client’s account.108 For receipt if not otherwise shown on the amendments thereto will be provided on the persons who have consented to receive document.’’ 111 The Commission’s Part 4 website; and (f) visitors have the right to such information electronically, recordkeeping requirements thus extend revoke their consent to receive electronic registrants may provide amendments delivery at any time. At the bottom of the to the contents of CTA and CPO webpage is a button for visitors to ‘‘click’’ if and updates in the same manner, websites and related electronic mail they consent to receive electronic delivery of provided that such recipients’ consent messages. The Commission’s rules GHJ’s Disclosure Document and any to the use of electronic media extends concerning the use of electronic media amendments thereto. If a visitor ‘‘clicks’’ on to amendments and updates. for recordkeeping, e.g., optical disk or the acknowledgment button, he is One of the salient features of CD-ROM storage, permit storage of hyperlinked to a copy of GHJ’s Disclosure electronic media is the ability to modify computer generated records in ASCII or Document. If a visitor ‘‘clicks’’ on a button or update information more simply and EBCDIC format only.112 These formats signifying that he does not provide his consent to receive a Disclosure Document by more frequently than in a paper generally do not allow storage of paper environment. On the Internet, many electronic means, he is then hyperlinked to records or electronic images, such as a form asking for his name and postal financial service providers update their webpages, since such records or images address, which will be used to send a performance on a daily basis, a practical are normally not written in ASCII or hardcopy Disclosure Document through impossibility using conventional postal EBCDIC format. Therefore, these records postal mail and is not allowed to view any mail.109 The Commission believes that would be required to be retained in other portions of the website. GHJ’s website the greater timeliness of information hardcopy form. The Commission invites properly obtains informed consent from that electronic media is capable of interested parties to comment visitors. Before engaging in any solicitation providing is an important benefit. concerning whether these rules, and in activity, GHJ obtains informed consent to deliver the Disclosure Document Certainly, therefore, information particular, Rule 1.31, are sufficient to contained in electronic form can be electronically. Then, immediately upon address record retention in the current receipt of such consent, visitors are delivered expected to be at least as current as that electronic environment. the Disclosure Document. Once a visitor in paper form. Consequently, where a The following examples are scrolls down to the end of the Disclosure registrant employs electronic and paper illustrative of the requirements Document and acknowledges that he has media, the electronic version of any discussed above. received the Disclosure Document, he may publicly disseminated document must (22) (Hyperlink to Disclosure Document view other data on the site. However, before be at least as current as any paper-based From Homepage Satisfies Delivery the visitor may open a managed account with version. If registrants elect to update Obligation) RST is a CTA who operates a site GHJ, an acknowledgment of receipt of the their performance more frequently than on the World Wide Web. RST provides Disclosure Document in accordance with is required, any such performance copies of its Disclosure Documents, in an Rule 4.31(b) must be obtained, either acceptable format, which visitors to its electronically (see example 25 below) or in history must be calculated and hardcopy. presented in accordance with website can access from a menu of options at the beginning of its website. Before the (24) (Registrant May Require Commission rules. visitor may access data on the website other Acknowledgment to be Returned by Postal Record Retention. Another important than the menu or table of contents, such as Mail) X, a registered CTA, has established a area of regulatory concern in the context a description of RST’s principals and site on the World Wide Web. After users of electronic media is that of summaries of its trading programs, review X’s Disclosure Document, they may recordkeeping, as provided by performance data, or other matters, visitors access other portions of X’s website. In the Commission Rules 4.23 and 4.33.110 must select and view a Disclosure Document section dealing with opening an account, These rules require that CPOs and CTAs for the trading program(s) in which they are users are informed that before a trading keep, among other records, ‘‘the original interested. By providing access to each of account may be opened with X, a prospective these Disclosure Documents and assuring client must download X’s Disclosure Document and return a signed 107 that the visitor has reviewed the Disclosure 17 CFR 4.26(c)(1). Document prior to proceeding, RST has acknowledgment of receipt thereof. On X’s 108 17 CFR 4.36(c)(1). complied with Rule 4.31(a), which requires website is a form receipt of acknowledgment, 109 Indeed, by the time the recipient received such that at or before the time a CTA solicits a with a statement informing the user that the updated information, it would already be out of acknowledgment must be printed, and date. prospective client, the CTA deliver to the signed, dated and returned to X by postal 110 For instance, Rule 4.23(a)(9) provides that a prospective client a Disclosure Document for CPO must keep: the trading program pursuant to which the mail before X will open an account for the The original or a copy of each report, letter, CTA will direct or guide the account. user. Receipt of such an acknowledgment circular, memorandum, publication, writing, (23) (Obtaining Informed Consent) GHJ is would comply with Rule 4.31(b). Registrants advertisement or other literature or advice a CTA with a site on the World Wide Web. are permitted to distribute Disclosure (including the texts of standardized oral On the first page of GHJ’s website, and before Documents to prospective clients presentations and of radio, television, seminar or any solicitation materials are presented, is a electronically and may obtain similar mass media presentations) distributed or page requesting informed consent from acknowledgments of receipt electronically. caused to be distributed by the commodity pool visitors to receive GHJ’s Disclosure However, they are not required to do so. A operator to any existing or prospective pool Document by electronic means. This page CTA operating a site on the World Wide Web participant or received by the pool operator from any commodity trading advisor of the pool, informs visitors that: (a) prospective managed may require that acknowledgments be signed, showing the first date of distribution or receipt if dated and returned by postal mail. not otherwise shown on the document. 111 Commission Rules 4.23(a)(9) and 4.33(a)(7). (25) (Acknowledgments May Be Signed Analogous requirements for CTAs are found in 112 17 CFR 1.31(d). See 58 FR 27458, 27462–63 Electronically With a Personal Identification Rule 4.33(a)(7). (May 10, 1993). Number) LMN, a registered CTA, operates a Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Rules and Regulations 42163 site on the World Wide Web. LMN’s website (28) (Use of Hyperlinks in Table of its Disclosure Document and also operates a permits prospective clients to acknowledge Contents Acceptable) WXY, a CPO, posts her website with an electronic version of its receipt of its Disclosure Document by Disclosure Document on the World Wide Disclosure Document. DEF solicits through electronic media. Jill Doe visits LMN’s Web. As it appears on the World Wide Web, its website but also sends each prospective website and wishes to open a managed the Disclosure Document is without any client a hardcopy of its Disclosure Document futures account. LMN’s website instructs Jill ‘‘pages;’’ instead it is a continuous stream of via postal mail. The Disclosure Document Doe that in order for her to acknowledge HTML text, which contains all of the DEF sends its prospective clients has been receipt of its Disclosure Document, she must required disclosures. In lieu of page numbers updated to reflect some material changes, but receive a PIN. LMN’s website asks Jill Doe to as contemplated by Rule 4.24, WXY has the electronic version on the Internet has not. provide her electronic mail address, to which placed in the table of contents a series of DEF is in violation of Rule 4.36. Even though a PIN may be sent. Upon receipt of Jill Doe’s hyperlinks, i.e., subject headings which DEF provides its prospective customers with electronic mail address, LMN then sends her trigger access to the various sections of the a current version of its Disclosure Document, a PIN. Jill Doe may then use that PIN in lieu Disclosure Document. In addition, in the Risk it may not solicit customers using a of a manual signature required under Disclosure statement, where page numbers superseded or out-of-date Disclosure Commission Rule 4.31(b). are required for the discussion of expenses, Document. (26) (Consent To Receive Monthly break-even point and principal risk factors, (32) (Outdated Disclosure Documents May Statements Electronically Can Be Withdrawn) WXY has provided hyperlinks to those Not Be Used on Electronic Media) ABC is a JKL is the registered CPO of the Fund. John sections. This would comply with the format CTA who operates a site on the World Wide Smith and Jane Doe are both participants in requirements of Rule 4.24. Where a Web. ABC’s website contains a Disclosure the Fund. In September, JKL sends a notice Disclosure Document is posted on the World Document that is more than nine months old. to participants indicating that it will be Wide Web without pages, the CPO may use The website also contains a form that allows sending monthly account statements to readily comprehensible hyperlinks instead of persons to request a current version of ABC’s participants via electronic mail through the page numbers to denote specific sections. Disclosure Document. ABC is in violation of Internet, as Microsoft Word documents. JKL Both page numbers and hyperlinks allow the Rule 4.36. Even though ABC allows informs all pool participants that persons reader to locate a particular section. prospective clients to obtain a current wishing to receive monthly account (29) (Electronic Version Identical to Paper version of its Disclosure Document, ABC may statements by means of electronic mail may Version) ABC is a CTA who operates a not continue to provide its out-of-date incur costs relating to on-line access time, homepage on the World Wide Web, with a Disclosure Document on the World Wide maintaining an electronic mail account, and hyperlink to enable visitors to download her Web. owning a licensed copy of Microsoft Word. Disclosure Document. The Disclosure (33) (Outdated Disclosure Document Further, JKL informs pool participants that Document can be downloaded in a form Contained on CD–ROM Cannot Be Used To Solicit Clients) RST is a CTA who has created electronic delivery of the monthly account compatible with Microsoft Word for a CD–ROM containing promotional materials statements will begin in January 1997. At the Windows or WordPerfect for DOS. Once and a Disclosure Document. The date of the bottom of the notice is a form for participants downloaded, the Disclosure Document is in Disclosure Document on the CD–ROM is to complete if they are interested in receiving all respects identical to the paper version, January 15, 1995. On December 15, 1995, monthly account statements electronically. including page numbers, bold-faced text and RST provides a prospective client with a The form asks for the participant’s electronic capsule performance information. In this copy of his CD–ROM but at the same time mail address and for the participant’s case, ABC has met the format requirements provides the client with a revised Disclosure signature agreeing to the conditions of the of Rules 4.34. Document dated October 1, 1995, which electronic delivery. (30) (Electronic Version of Disclosure reflects certain material changes. Even John Smith and Jane Doe complete the Document May Include More Recent though RST has provided the prospective form and mail it back to JKL in November. Performance Data) ABC is a CTA who client with a revised Disclosure Document, In December, John Smith decides that he operates a website. ABC’s hardcopy RST is in violation of Rule 4.36(b) because prefers to receive monthly account Disclosure Document is dated August 1 and the CD–ROM contains a Disclosure statements by means of postal mail and reflects the ABC’s performance through July Document dated more then nine months notifies JKL that he no longer agrees to 31. It is now October 1, and ABC wants to prior to its use. After October 15, 1995, RST electronic delivery. In January, JKL can send amend the performance section of its may no longer distribute the CD–ROM with monthly account statements to Jane Doe by Disclosure Document that appears on the the Disclosure Document dated January 15, means of electronic mail but must send such website to include performance through 1995. statements to John Smith by means of postal September 30. ABC may amend the mail. The requirements for manual signatures performance section of the website IV. Electronic Filing With the under 4.22(h) for these reports will be Disclosure Document to include more recent Commission satisfied if JKL keeps such signed reports in performance data. However, the calculation A. Pilot Program Commencing October paper form at its place of business. and presentation of such recent performance (27) (Registrant Must Abide by Parameters data must be in accordance with Commission 15, 1996 of Consent) In the same example as above, rules. ABC is not required to amend its In response to numerous inquiries JKL now decides to post its monthly account hardcopy Disclosure Document, which still from managed futures professionals, the statements on its World Wide Web may reflect ABC’s performance through July Commission is evaluating the potential homepage. JKL sends electronic mail to Jane 31. Under Rule 4.26, ABC may solicit benefits and costs of electronic Doe informing her that the monthly account prospective clients with the October 1 statement can be accessed on JKL’s homepage Disclosure Document and the version on its document filing, both to registrants and on the World Wide Web. This form of website with more recent performance data. to the Commission’s regulatory program. delivery would not satisfy the requirements However, on May 1 of the next year (i.e., nine The Commission is also considering the of Rule 4.22. Jane Doe has only consented to months after date of the hardcopy Disclosure relative merits of several alternatives for receive monthly account statements as Document), ABC may no longer use the implementing an electronic filing Microsoft Word attachments to Internet hardcopy Disclosure Document. Beginning system. In furtherance of this objective, electronic mail. If JKL changes its method of May 1, ABC must use a new Disclosure the Commission is announcing a pilot electronic delivery, it must again obtain Document. In addition, the Disclosure program for optional electronic filing of informed consent from pool participants. Document used on the website, which Disclosure Documents and is requesting Jane Doe’s consent to receive monthly contains updated performance data, must account statements was limited to the means also be amended to conform to any other comments concerning the standards and specified in the September notice. JKL cannot changes reflected in the new hardcopy specifications that should be utilized if assume that Jane Doe has access to the World Disclosure Document. the Commission elects to establish a Wide Web or that she will agree to receive (31) (Disclosure Documents Delivered permanent program for electronic filing. her monthly account statements by viewing Electronically Must Be Current and Updated) The Commission has determined to them on JKL’s homepage. DEF is a CTA who distributes a hardcopy of initiate a six-month pilot program for 42164 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Rules and Regulations electronic filing of CPO and CTA formatting of numerical tables. At the by Commission staff to the electronic Disclosure Documents, commencing outset, Documents filed under the mail address supplied by the October 15, 1996. Participation in the Commission’s pilot program will not be participating registrant, and the pilot program will be voluntary and will made publicly available in an electronic Disclosure Document will undergo the be open to all registered CPOs and CTAs equivalent of a public reference room, as customary review process. Following who are members of NFA. The pilot is currently the case with the document review of the filed document, staff program will be conducted by the dissemination function of the EDGAR comments also will be transmitted to Commission’s Division of Trading and system; however, this enhancement may the participating registrant’s electronic Markets and will be restricted (at least be considered in the future.114 mail address as an electronic mail initially) to electronic submission of attachment in Microsoft Word for B. Filing Procedure Under the Pilot Disclosure Documents (and Windows or WordPerfect 5.1 for DOS Program amendments thereto) which CTAs and format. CPOs are required to file with the The Commission is establishing the 4. Submit the registrant’s response to Commission pursuant to Rules 4.36 and following procedures for CTAs and staff comments by electronic mail 4.26, respectively. Electronic filing of CPOs seeking to employ electronic filing message to the Commission’s electronic other documents, such as annual reports under the pilot program. The mail filing address. The message should for commodity pools required to be filed Commission welcomes comments indicate the date of the staff comment pursuant to Rule 4.22, and documents concerning the adequacy and message, and any revised text or pages filed to obtain relief available under appropriateness of these requirements, should be attached in the same manner certain Commission rules, such as and suggestions concerning any as the original filing (using the notices of eligibility under Rule 4.5, additional criteria that the Commission registrant’s NFA identification number notices of claims of exemption under should consider in the pilot program. and the appropriate sequential file Rule 4.7, claims of exemption under Beginning October 15, 1996, a CPO or extension as described in No. 2, above). Rule 4.12(b) and notices of exemption CTA may file a Disclosure Document (or For purposes of the pilot program, a under Rule 4.14(a)(8), may be amendment) by taking the following document of up to one megabyte implemented in the future.113 steps: (approximately 230 pages) can be Participation in the pilot program will 1. Save the Disclosure Document as a received as an electronic mail not obligate a registrant to provide its WordPerfect for DOS (version 5.1 or attachment. If a participating registrant’s Disclosure Documents to prospective earlier) or a Microsoft Word for Disclosure Document exceeds one clients or pool participants by electronic Windows (version 6.0 or earlier) file. megabyte, the registrant should contact means. Retain both a hardcopy and a diskette or the Division of Trading and Markets, Under the pilot program as currently tape backup. Managed Funds Branch, for guidance. envisioned, a partici-pating registrant 2. Use the participating registrant’s NFA identification number as the file C. Expansion of Pilot Program; Request will transmit its Disclosure Document, for Comments as an attachment to electronic mail, to name for the saved Disclosure Document, and add a file extension an address specified by the Commission The Commission intends to use its (DD1, DD2, DD3, . . . D10, D11, etc.) for purposes of this program. Receipt of experience with the pilot program to indicating whether the submission is the filed document will be develop and implement a permanent sequentially the first, second, etc. acknowledged by electronic mail, system for electronic filing of Disclosure submission by the registrant.115 Documents. As stated previously, the followed by the customary review 3. Add the file as an attachment to an process conducted by Commission staff. Commission will also consider electronic mail message addressed to permitting electronic filing of other Electronic mail also may be used by [email protected] Persons Commission staff for providing types of required documents (e.g., who participate in the pilot program annual reports to commodity pool comments on the filed Disclosure must agree to receive comments from Document and by the registrant to participants, and notices of claims of Commission staff by electronic mail. exemption filed pursuant to submit document revisions in response Accordingly, the message text should to staff comments. Commission rules), as well as include the electronic mail address permanent implementation of electronic The Commission’s pilot program will where comments, if any, may be sent. accommodate use of two widely utilized filing of CPO and CTA Disclosure Confirmation of receipt of the filed Documents, either as an alternative to commercial word processing systems Disclosure Document will be provided without the need for extensive paper filing or as the sole filing method. formatting specifications, and it will not Interested persons are invited to 114 Persons may, of course, obtain hardcopies of comment on the proposed structure of require specialized coding and Disclosure Documents filed under the pilot program through a request made under the Freedom of the pilot program, as well as the 113 The Commission is considering electronic Information Act, 5 U.S.C. 552 (1994), as contemplated adoption of a permanent filing of the entire range of documents and reports implemented in Part 145 of the Commission rules. electronic filing system. Specifically, covered by the Act and Commission rules, 115 For example, XYZ, whose NFA identification the Commission seeks comment on: (1) including without limitation, Forms 1–FR for FCMs number is 99999999, is a CTA with separate whether it is preferable to retain the and IBs, Form 103 (Large Trader Reporting Form), Disclosure Documents for two trading programs. and Form 40 (Statement of Reporting Trader). As XYZ names one Disclosure Document option for registrants to submit noted in Section I, the Commission has approved ‘‘99999999.DD1’’ and the other ‘‘99999999.DD2.’’ documents in paper form or to eliminate self-regulatory organization (‘‘SRO’’) programs The first amendment to either Disclosure Document that alternative in favor of a universal (notably those of the CBT and the CME) permitting will be named ‘‘99999999.DD3,’’ and each requirement to file electronically; (2) FCMs and IBs to file electronically with such SROs subsequent submission will follow the same the periodic financial reports on Form 1–FR pattern. In the event that a registrant has more than whether security concerns make it required by Commission Rule 1.10. In Advisory 28– one version of the Disclosure Document for a advisable to require that filings be 96, [Current Transfer Binder] Comm. Fut. L. Rep. particular trading program or pool offering, each encrypted or otherwise protected from (CCH) ¶ 26,711 (May 28, 1996), the Commission version would similarly be given a separate file unauthorized interception and use, and noted its intention to implement procedures to extension. permit FCMs and IBs that file electronically with 116 Persons participating in the pilot program are if so, what measures would be SROs also to file their financial reports not required to make duplicate filings under Rules appropriate (e.g., commercially electronically with the Commission. 4.26(d) or 4.36(d). available encryption software); (3) Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Rules and Regulations 42165 whether there is a need for a graphics processing and telecommunication relating to the distribution of stock and capability (beyond that currently offered systems with respect to developing and securities under section 355 of the by the WordPerfect 5.1 for DOS and implementing a system to accept, track Internal Revenue Code of 1986 by a Microsoft Word for Windows programs) and control electronically-filed domestic corporation to a person that is to permit transmission of pictorial or documents, as well as incoming and not a United States person. These graphic material included in Disclosure outgoing correspondence in connection regulations are necessary to implement Documents or in other documents with such documents. section 367(e)(1) as added by the Tax required to be filed with the Comment is sought regarding the Reform Act of 1986. The text of these Commission; (4) whether the advisability of the Commission’s regulations also serves as the text of the Commission should specify uniform selecting and entering into a contractual proposed regulations set forth in the formatting requirements for relationship with one or more notice of proposed rulemaking on this electronically-filed documents (e.g., independent vendors to facilitate subject in the Proposed Rules section of margin dimensions, type font and point electronic filing of documents on behalf this issue of the Federal Register. size, pagination, etc.) and if so, what the of the Commission, and/or to serve as a EFFECTIVE DATE: These regulations are appropriate requirements would be; and repository or dissemination point to effective September 13, 1996. (5) whether the selection of word provide public access to electronically- FOR FURTHER INFORMATION CONTACT: processing formats currently being filed documents. Finally, to the extent Philip L. Tretiak at (202) 622–3860 (not considered by the Commission for use that a filing fee would be necessary to a toll-free number). in the pilot program (WordPerfect 5.1 cover the operating and development for DOS or Microsoft Word for costs of Vendor’s system, the SUPPLEMENTARY INFORMATION: Windows) is adequate, and if not, which Commission seeks comment on the Paperwork Reduction Act additional word processing programs or willingness of registrants to bear such text formats registrants should be costs and suggestions concerning how These regulations are being issued permitted to use. such fees should be calculated. without prior notice and public procedure pursuant to the D. Unsolicited Proposal Recently E. Future Releases Administrative Procedure Act (5 U.S.C. Presented to the Commission The Commission invites comment not 553). For this reason, the collection of The Commission has been only on the specific issues discussed in information contained in these approached by a prospective vendor this release, but also on any other regulations has been reviewed and, (‘‘Vendor’’) with a proposal to approaches or issues that should be pending receipt and evaluation of implement a system to permit electronic considered in connection with public comments, approved by the filing of Disclosure Documents utilizing facilitating the use of electronic media. Office of Management and Budget under a computer system developed by In the future, the Commission may issue control number 1545–1487. Responses Vendor. The Vendor’s prototype system further releases, as may be suitable to to this collection of information are assumes use of a WordPerfect or expand or provide additional guidance required in order for a U.S. corporation Microsoft Word word processing system regarding the pilot program; to propose that distributes domestic stock or in a Microsoft Windows operating and adopt rules and amendments to securities to a foreign person to qualify system environment. Registrants would existing rules to implement electronic for an exception to the general rule of download from the Commission’s filing procedures; or to give guidance taxation provided by the regulations Internet website a document generally with respect to the use of under section 367(e)(1). ‘‘packaging’’ program, which would electronic media in the context of the An agency may not conduct or prompt the registrant to provide Commission’s regulatory program. sponsor, and a person is not required to identifying information and facilitate respond to, a collection of information secure uploading of the registrant’s Issued in Washington, DC, on May 8, 1996, unless the collection of information Disclosure Document to Vendor’s by the Commission. displays a valid control number. system.117 Vendor has offered to Catherine D. Dixon, For further information concerning develop a separate program for Assistant to the Secretary of the Commission. this collection of information, and Commission staff handling and tracking [FR Doc. 96–20691 Filed 8–13–96; 8:45 am] where to submit comments on the of filed Disclosure Documents during BILLING CODE 6351±01±P collection of information and the the review process. Vendor’s system, if accuracy of the estimated burden, and implemented, may be designed to suggestions for reducing this burden, accommodate other required DEPARTMENT OF THE TREASURY please refer to the preamble to the cross- Commission filings, including CPO referencing notice of proposed annual reports to pool participants. Internal Revenue Service rulemaking published in the Proposed Under one variation of Vendor’s system, Rules section of this issue of the Federal filed Disclosure Documents would 26 CFR Part 1 Register. ‘‘reside’’ electronically on a server [TD 8682] Books or records relating to a located at Vendor’s offices, rather than collection of information must be at the Commission’s headquarters. RIN 1545±AU23 retained as long as their contents may The Commission plans to publish in Treatment of Section 355 Distributions become material in the administration Commerce Business Daily a notice of any internal revenue law. Generally, seeking information and indications of by U.S. Corporations to Foreign Persons tax returns and tax return information interest on the part of proprietary are confidential, as required by 26 vendors and developers of data AGENCY: Internal Revenue Service (IRS), U.S.C. 6103. Treasury. 117 The document packaging software includes a Background ACTION: Temporary regulations. scrambling or encryption function enabling On January 16, 1990, temporary transmission of the document over phone lines without permitting unauthorized persons to read or SUMMARY: These temporary regulations regulations under section 367(e)(1) and alter the text. amend the Income Tax Regulations 367(e)(2) were published in the Federal 42166 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Rules and Regulations

Register (55 FR 1406). A cross- both Distributing and Controlled are triggered if Distributee transfers the referenced Notice of Proposed U.S. real property holding corporations stock of either Distributing or Controlled Rulemaking was published on that same (as defined in section 897(c)(2)) at the in certain nonrecognition transactions date (55 FR 1472). These regulations time of the distribution, (ii) a publicly (permitted transactions). The transfer of were proposed to implement section traded exception in certain cases where the stock of either company in a 367(e) of the Internal Revenue Code of Distributing is publicly traded in the (second) section 355 distribution, 1986 (Code), as revised by sections United States at the time of the however, is not permitted. 631(d)(1) and 1810(g) of the Tax Reform distribution, and (iii) a gain recognition In the case of a permitted transaction, Act of 1986 (100 Stat. 2085, 2272, Public agreement (GRA) exception described in the existing regulations provide special Law 99–514 [1986–3 C.B. (Vol. 1) 1, 189, detail below. successor-in-interest rules under which 745]). On January 15, 1993, final The new temporary regulations retain the deferred gain generally will be regulations under section 367(e)(1) were the general framework of the existing taxable unless Distributee maintains a published in the Federal Register. regulations by permitting no exceptions direct or indirect 80 percent interest in in the case of an outbound section 355 the stock of Distributing and Controlled Need for Temporary Regulations distribution of foreign stock and the that it owned immediately after the Under the current regulations, in same three exceptions in the case of an distribution. For example, if certain circumstances the gain outbound section 355 distribution of Distributing distributed the stock of recognition exception may be domestic stock. However, the new Controlled in an outbound section 355 dependent on the form rather than the temporary regulations substantially distribution that qualified for the GRA substance of a taxpayer’s transaction. As modify the GRA exception. exception and, within the term of the a result, certain taxpayers may be The temporary regulations retain GRA, Distributee then contributed the subject to strict restrictions under this many of the provisions from the existing stock of Distributing to a new company exception, while other taxpayers regulations. However, the IRS and (Newco) in a section 351 exchange and arguably may avoid the restrictions by Treasury have decided to reissue all of received 100 percent of Newco, the structuring their transactions in a the regulations under section 367(e)(1) successor-in-interest rules apply. Thus, different fashion (even though the as temporary regulations to obtain a Distributee generally would be required substance of the transactions is similar). uniform set of regulations. to maintain an 80 percent indirect Based on these considerations, it is GRA Exception Under the Existing interest in Distributing. Under these determined that immediate regulatory Regulations rules, (i) Distributee’s sale of up to 20 guidance will ensure the efficient percent of the stock of Newco, or (ii) administration of the tax laws and that The GRA exception in the existing Newco’s sale of up to 20 percent of the it would be impracticable and contrary regulations contains a number of stock of Distributing would result in a to the public interest to issue this specific requirements, all of which must corresponding trigger of the deferred Treasury decision with prior notice be satisfied for the distributing gain. The issuance of new stock by under section 553(b). corporation to defer taxation under the Newco or Distributing of up to 20 exception. Explanation of Provisions percent to unrelated persons, however, In general, if Distributee is a resident would not result in any trigger of the Section 355 provides that, if certain of a country that has an income tax GRA. If, however, Newco (or requirements are met, a distributing treaty with the United States and meets Distributing) issued more than 20 corporation (Distributing) does not certain other requirements, Distributing percent of its stock to unrelated persons recognize gain or loss on the can defer its gain by entering into a (or any other nonrecognition transaction distribution of the stock or securities of GRA. Under the GRA, if a (foreign) reduced Distributee’s indirect interest in a controlled corporation (Controlled) to Distributee sells all or a portion of the Distributing to below 80 percent as a Distributing’s shareholder or stock of either Distributing or Controlled result of a nonrecognition transaction), shareholders (Distributee(s)). However, within 60 months after the close of the the entire gain would be triggered. section 367(e)(1) provides that, in the taxable year in which the distribution case of any distribution described in occurs, Distributing agrees to amend its Reasons for Change/Overview of section 355 (or so much of section 356 return and include the deferred gain in Temporary Regulations as relates to section 355) by a domestic income based upon the proportion of The treatment of non pro rata corporation to a Distributee who is not the stock that is sold by Distributee. outbound section 355 distributions is a United States person (an outbound Thus, for example, if Distributee sells 10 not adequately addressed in the existing section 355 distribution), to the extent percent of its stock of Distributing or regulations. For example, assume that a provided in regulations, gain shall be Controlled, Distributing is required to foreign parent (FP) owns all of the stock recognized under principles similar to amend its return to include 10 percent of Distributing, a domestic corporation, the principles of section 367. of the deferred gain. There is no special which, in turn, owns all of the stock of The existing regulations under section rule (i.e., no full trigger of the deferred Controlled, also a domestic corporation. 367(e)(1) provide different tax treatment gain) if Distributee sells a substantial Assume that the distribution of to Distributing in an outbound section amount of its stock of either company. Controlled by Distributing to FP 355 distribution depending upon In addition, there is no special rule that qualifies for the GRA exception. If FP whether Controlled is a foreign triggers gain in the case of a then contributes all of the stock of corporation or a domestic corporation. If nonrecognition transaction (such as the Distributing to a newly formed foreign Controlled is a foreign corporation, an issuance of additional stock by either corporation (Newco), the successor rules outbound section 355 distribution by Distributing or Controlled to third would apply, and FP would be required Distributing is taxable, with no parties through a public offering) that to maintain a direct or indirect 80 exceptions. If Controlled is a domestic results in a substantial reduction of the percent interest in Distributing. corporation, however, the existing percentage of stock owned by The outcome under the existing regulations provide that the distribution Distributee(s). regulations arguably is substantially is taxable, but permit three exceptions: The existing regulations generally different, however, if the corporations (i) a FIRPTA exception in cases where provide that the GRA will not be structured the distribution as a non pro Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Rules and Regulations 42167 rata distribution. For example, assume taxpayers could be subject to the stricter Substitute Distributee) that receives that FP first forms Newco and transfers successor-in-interest rules if their stock of Distributing and/or Controlled to Newco a percentage of the transactions were structured in a qualifies as a Qualified Foreign Distributing stock (the percentage equal particular way, but might be subject to Distributee. In such case, the Substitute to the value of Distributing (without the the more liberal distributee rules if the Distributee will replace the initial Controlled stock) divided by the order of the steps of the particular Qualified Foreign Distributee as the combined value of Distributing and transaction are reversed. person whose ownership interest is Controlled) in an exchange under In the preamble to the existing considered for purposes of determining section 351. Distributing then regulations, the IRS and Treasury stated whether a disposition or substantial distributes the stock of Controlled to FP that the successor-in-interest rules were transformation has occurred (on a in exchange for FP’s stock of ‘‘designed to provide taxpayers with cumulative, aggregate basis) with Distributing (a non pro rata section 355 flexibility to restructure their respect to such stock. distribution). After the distribution, FP operations, without imposing undue In addition, the temporary regulations owns all of the stock of Controlled and administrative burdens on the Service.’’ provide that foreign persons that owned all of the stock of Newco; Newco owns The IRS solicited taxpayer comments on stock or securities of Distributing within all of the stock of Distributing. Under the scope of these rules. A number of two years prior to the distribution and the existing regulations, FP is a commentators have stated that the rules that own (directly, indirectly, or Distributee. However, because FP has no are overly restrictive. constructively) 50 percent or more of direct interest in Distributing after the The temporary regulations harmonize the stock of Distributing or Controlled distribution, the regulations effectively the treatment of the distributee and immediately after the distribution will treat FP as a Distributee only with successor-in-interest rules in order to also be considered Foreign Distributees. respect to Controlled. Moreover, minimize the importance of the form of Thus, for example, if F1, a foreign because Newco does not actually a particular transaction. In addition, as corporation, transfers the stock of US1 receive stock of Controlled in the discussed below, the temporary to F2 in exchange for all of the stock of distribution (even though its percentage regulations liberalize the strict successor F2 in a section 351 exchange and, ownership interest in Distributing rules by replacing the 80-percent within two years after the transfer, US1 increases as a result of the distribution), threshold (computed on an individual distributes all of the stock of US2, its it is arguably not a Distributee with Distributee basis) with a 50-percent wholly owned subsidiary, to F2 in a respect to the Distributing stock. As a threshold (computed with reference to section 355 exchange, F1 is also treated result, because the taxpayer structures all Qualified Foreign Distributees as a as a Foreign Distributee under this rule. the transaction in this manner (rather group). (F1 would have been treated as a than a section 355 distribution followed The temporary regulations follow the Foreign Distributee without the by a section 351 exchange as in the first existing regulations by providing that a operation of this rule if the section 355 hypothetical), if the steps of the sale by a Qualified Foreign Distributee distribution occurred prior to the transaction are respected and in the of the stock of either Controlled or section 351 exchange.) absence of the application of other Distributing triggers gain in the same The IRS and the Treasury also believe sections of the Code, Distributing could proportion as the percentage of stock that certain procedural aspects of the take the position that there are no that is sold. However, the temporary GRA exception need modification. The restrictions in the existing regulations regulations provide that a sale by temporary regulations enhance with respect to (i) the sale by FP of Qualified Foreign Distributee(s) of either reporting and security requirements, Newco stock, or (ii) the sale by Newco Distributing or Controlled that results in extend the term of the GRA from 5 to of Distributing stock. a substantial transformation results in a 10 years, and delete other requirements To remedy this potential disparity in trigger of the full amount of the deferred that are believed to be unnecessary in treatment between pro rata and non pro gain. A substantial transformation is light of the modifications herein. rata distributions, the temporary defined as a greater than 50-percent To address the security concerns of regulations expand the definition of (direct or indirect) reduction, on an the IRS resulting from the liberalization Distributee in the GRA exception aggregate basis, in either the total voting of the successor-in-interest rules and the (referred to as Foreign Distributee under power or the total value of the stock of expansion of permissible post- such exception) to include all persons Controlled or Distributing held by distribution nonrecognition transactions that were shareholders of Distributing Qualified Foreign Distributee(s) to include section 355 distributions, the immediately prior to the distribution. immediately after the distribution. The assets of Distributing are more closely Thus, for example, in the second new temporary regulations also provide monitored to insure that such hypothetical above, Newco and FP that a nonrecognition transaction that corporation has sufficient funds to pay would both be Foreign Distributees. results in a substantial transformation a potential tax on the deferred gain. In Provided that nonrecognition treatment (such as the issuance of stock by addition, Controlled must agree to be is claimed under the GRA exception Distributing or Controlled in a public secondarily liable (after Distributing) for with respect to Newco and FP (referred offering) generally causes a trigger of the the tax on the deferred gain. to as Qualified Foreign Distributees in full amount of the deferred gain. No Moreover, the new temporary the case of Foreign Distributees for gain will be triggered if a regulations extend the term of the GRA which nonrecognition may be claimed), nonrecognition transaction does not from 5 to 10 years in order to conform the GRA would be triggered by either (i) result in a substantial transformation. the GRA term under section 367(e)(1) to the sale by FP of Newco stock, or (ii) the The temporary regulations also the GRA term under section 367(a). sale by Newco of Distributing stock. expand the types of post-distribution Under section 367(a), the GRA term in Second, even in the case of pro rata nonrecognition transactions that are the case of outbound stock transfers is distributions, the IRS and Treasury permitted transactions to include 10 years when U.S. transferors own at believe that the results obtained under section 355 distributions. A post- least 50 percent of the stock of a foreign the existing regulations are too distribution section 355 transaction may transferee company. See § 1.367(a)– dependent upon the form of the qualify for nonrecognition treatment if 3T(c)(3) and Notice 87–85 (1987–2 C.B. transaction. This is principally because the foreign distributee (referred to as a 395). The IRS and Treasury believe that 42168 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Rules and Regulations the GRA term under section 367(e)(1) (C) Value of Distributing (H) Annual Certifications should be no less than the term under The existing regulations provide that section 367(a) when U.S. transferors The existing regulations provide that, Distributees must provide their control the transferee because, once the immediately after the distribution, the certifications directly to Distributing. GRA under section 367(e)(1) expires, the value of Distributing must be at least Under the temporary regulations, sale of Distributing or Controlled stock equal to the value of the distributed Controlled also must provide an annual by a Qualified Foreign Distributee likely stock and securities. This requirement is statement to Distributing, containing will not be subject to Federal income waived by the existing regulations if information regarding whether any of its taxation. In contrast, under section Distributing and Controlled are Qualified Foreign Distributees have 367(a), even if the GRA lapses, an members of the same consolidated disposed of their stock in Controlled amount approximating the deferred gain group at the time of the distribution. during the relevant taxable year. likely will be subject to Federal income This requirement is revised in the taxation if the U.S. transferor later sells temporary regulations to provide that Special Analyses the stock of the transferee foreign the value of Distributing (the value of its corporation. assets less all of its liabilities) must be It has been determined that this at least equal to the amount of the temporary regulation is not a significant Finally, the IRS and Treasury believe deferred gain on all testing dates during regulatory action as defined in EO that section 367(e)(1) distributions the GRA period. (Alternatively, 12866. Therefore, a regulatory should be subject to some form of Distributing may satisfy this test using assessment is not required. It is hereby section 6038B reporting, as are transfers the adjusted basis of its assets instead of certified that this regulation does not described under sections 367(a) and fair market value.) A testing date is the have a significant impact on a 367(d). Thus, the temporary regulations last day of each taxable year of substantial number of small entities. extend limited section 6038B reporting Distributing and any day in which This certification is based on the fact to section 367(e)(1) transactions. The Distributing distributes money or that the number of corporations that reporting requirements under section property to its shareholders (regardless distribute stock or securities to foreign 6038B will be deemed satisfied in the of whether such distribution is treated persons in transactions that qualify case of a taxpayer that qualifies for one as a dividend). The waiver in the under section 355, and thus become of the three exceptions to taxation under existing regulations if Distributing and subject to the collection of information the regulations if the taxpayer complies Controlled are members of the same contained in these regulations, is with the applicable reporting consolidated group is eliminated in the estimated to be only 260 per year. requirements relating to the relevant temporary regulations. Moreover, because these regulations exception. This change is also intended will primarily affect large multinational to extend the statute of limitations (D) Treaty Residence corporations with foreign shareholders, under section 6501(c)(8) in cases where The existing regulations provide that it is estimated that out of the 260 annual distributing corporations do not all Distributees are required to be transactions subject to reporting, very properly report their outbound section residents of a country that maintains a few, if any, will involve small entities. 355 distributions. Separately, the comprehensive income tax treaty with Therefore, the regulations do not temporary regulations provide new the United States that contains an significantly alter the reporting or notice and reporting rules in cases exchange of information provision. This recordkeeping duties of small entities. where Distributing qualifies for either requirement is not changed in the Thus, a Regulatory Flexibility Analysis the FIRPTA or publicly traded temporary regulations. under the Regulatory Flexibility Act (5 exception. U.S.C. chapter 6) is not required. (E) Continuity of Interest Rule Specific changes to GRA Exception in Pursuant to section 7805(f) of the Temporary Regulations The existing regulations provide that Internal Revenue Code, a copy of these the Distributee is required to continue to temporary regulations will be submitted The specific requirements of the GRA own, for a 60-month period, all of the to the Chief Counsel for Advocacy of the exception, as amended, are as follows: stock of Distributing and Controlled that Small Business Administration for it owns at the time of the distribution. comment on their impact on small (A) Ten or Fewer Qualified Foreign business. Distributees This requirement is maintained, but the period is increased to 120 months. Drafting Information The existing regulations provide that (F) Distributing Must Remain in Distributing is permitted to claim The principal author of these Existence nonrecognition with respect to 10 or regulations is Philip L. Tretiak of the fewer individual or corporate foreign The existing regulations provide that Office of Associate Chief Counsel distributees. A ruling is required in the Distributing cannot go out of existence (International), within the Office of case of a foreign distributee that holds pursuant to the distribution. This Chief Counsel, IRS. However, other its interest in Distributing through a requirement is maintained in the personnel from the IRS and Treasury partnership, trust, or estate (whether temporary regulations. Department participated in their foreign or domestic). This requirement development. (G) GRA is unchanged in the temporary List of Subjects regulations. The existing regulations provide that 26 CFR Part 1 (B) Active Trade or Business Distributing is required to enter into a 5-year GRA and receive annual Income taxes, Reporting and The existing regulations provide that, certifications from Distributees, stating recordkeeping requirements. if Distributee is a foreign corporation, it that they continue to own the stock that 26 CFR Part 602 must be engaged in an active trade or they held immediately after the business. This requirement is removed distribution. The temporary regulations Reporting and recordkeeping in the temporary regulations. increase the GRA term to 10 years. requirements. Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Rules and Regulations 42169

Adoption of Amendments to the (3) Distribution of stock of a passive foreign purposes of the preceding sentence, the Regulations investment company. [Reserved] distributing corporation’s adjusted basis (4) Reporting under section 6038B. Accordingly, 26 CFR parts 1 and 602 in each unit of each class of stock or (e) Examples. securities distributed to a distributee are amended as follows: (f) Effective date. shall be equal to the distributing PART 1ÐINCOME TAXES § 1.367(e)±1T Treatment of section 355 corporation’s total adjusted basis in all distributions by U.S. corporations to foreign of the units of the respective class of Paragraph 1. The authority citation persons (temporary). stock or securities owned immediately for part 1 is amended by removing the (a) Purpose and scope. This section before the distribution, divided by the entry for § 1.367(e)–1 and adding an provides rules concerning the total number of units of the class of entry in numerical order to read as recognition of gain by a domestic stock or securities owned immediately follows: corporation on a distribution that before the distribution. Authority: 26 U.S.C. 7805 * * * qualifies for nonrecognition under (3) Treatment of distributee. If the section 355 of stock or securities of a distribution otherwise qualifies for Section 1.367(e)–1T also issued under domestic or foreign corporation to a nonrecognition under section 355, each 26 U.S.C. 367(e)(1) * ** person who is not a U.S. person. distributee shall be considered to have § 1.367 [Amended] Paragraph (b) of this section states as a received stock or securities in a Par. 2. Sections 1.367(e)–0 and general rule that gain recognition is distribution qualifying for 1.367(e)–1 are removed. required on the distribution. Paragraph nonrecognition under section 355, even Par. 3. Sections 1.367(e)–0T and (c) of this section provides exceptions to though the distributing corporation may 1.367(e)–1T are added to read as the gain recognition rule for certain recognize gain on the distribution under follows: distributions of stock or securities of a this section. Thus, the distributee shall domestic corporation. Paragraph (d) of not be considered to have received a § 1.367(e)±0T Treatment of section 355 this section refers to other consequences distribution described in section 301 or distributions by U.S. corporations to foreign of distributions described in this a distribution in an exchange described persons; table of contents. section. Paragraph (e) of this section in section 302(b) upon the receipt of the This section lists captioned provides examples of these rules. stock or securities of the controlled paragraphs contained in § 1.367(e)–1T. Finally, paragraph (f) of this section corporation. Except where section specifies the effective date of this 897(e)(1) and the regulations thereunder § 1.367(e)±1T Treatment of section 355 cause gain to be recognized by the distributions by U.S. corporations to foreign section. persons. (b) Recognition of gain required—(1) distributee, the basis of the distributed In general. (i) If a domestic corporation domestic or foreign corporation stock in (a) Purpose and scope. (distributing corporation) makes a the hands of the foreign distributee shall (b) Recognition of gain required. (1) In general. distribution that qualifies for be the basis of the distributed stock (2) Computation of gain of the distributing nonrecognition under section 355 of determined under section 358 without corporation. stock or securities of a domestic or any increase for any gain recognized by (3) Treatment of foreign distributee. foreign corporation (controlled the domestic corporation on the (4) Nonapplication of section 367(a) corporation) to a person who is not a distribution. principles that provide for exceptions to qualified U.S. person, then, except as (4) Nonapplication of section 367(a) gain recognition. provided in paragraph (c) of this principles that provide for exceptions to (5) Partnerships, trusts, and estates. section, the distributing corporation gain recognition. Paragraph (b)(1) of this (i) In general. shall recognize gain (but not loss) on the section requires recognition of gain (ii) Written statement. distribution under section 367(e)(1). No notwithstanding the application of any (6) Anti-abuse rule. principles contained in section 367(a) or (c) Nonrecognition of gain. gain is required to be recognized under (1) Distribution by a U.S. real property this section with respect to a the regulations thereunder. The only holding corporation of stock in a second distribution to a qualified U.S. person of exceptions to paragraph (b)(1) of this U.S. real property holding corporation. stock or securities that qualifies for section are contained in paragraph (c) of (2) Distribution by a publicly traded nonrecognition under section 355. For this section. None of these exceptions corporation. purposes of this section, a qualified U.S. applies to distributions of stock or (i) Conditions for nonrecognition. person is— securities of a foreign corporation. (ii) Recognition of gain if foreign distributee (A) A citizen or resident of the United (5) Partnerships, trusts, and estates— owns 5 percent of distributing corporation. States; and (i) In general. (iii) Reporting requirements. (B) A domestic corporation. For purposes of this section, stock or (iv) Timely filed return. (ii) In the case of stock or securities securities owned by or for a partnership (v) Relation to other nonrecognition (whether foreign or domestic) shall be provisions. owned through a partnership, trust, or (3) Distribution of certain domestic stock to estate, see paragraph (b)(5) of this considered to be owned proportionately 10 or fewer qualified foreign distributees. section. by its partners. In applying this (i) In general. (2) Computation of gain of the principle, the proportionate share of the (ii) Conditions for nonrecognition. distributing corporation. The gain stock or securities of the distributing (iii) Agreement to recognize gain. recognized by the distributing corporation considered to be owned by (iv) Waiver of period of limitation. corporation under paragraph (b)(1) of a partner of the partnership at the time (v) Annual certifications and other reporting this section shall be equal to the excess of the distribution shall equal the requirements. of the fair market value of the stock or partner’s distributive share of gain that (vi) Special rule for nonrecognition securities distributed to persons who are would be realized by the partnership transactions. (vii) Recognition of gain. not qualified U.S. persons (determined from a sale of stock of the distributing (viii) Failure to comply. as of the time of the distribution) over corporation immediately before the (d) Other consequences. the distributing corporation’s adjusted distribution (without regard to whether, (1) Exchange under section 897(e)(1). basis in the stock or securities under the particular facts, any gain (2) Dividend treatment under section 1248. distributed to such distributees. For would actually be realized on the sale 42170 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Rules and Regulations for U.S. tax purposes), determined calendar years following the close of the corporation in a transaction that is under the rules and principles of last calendar year in which the described under section 355. sections 701 through 761 and the corporation relied upon the statement. (iii) For purposes of this paragraph regulations thereunder. For purposes of (6) Anti-abuse rule. If a domestic (c)(1), an income tax return (including this section, stock or securities owned corporation is directly or indirectly an amended return) will be considered by or for a trust or estate (whether formed or availed of by one or more a timely filed Federal income tax return foreign or domestic) shall be considered foreign persons to hold the stock of a if it is filed prior to the time that the to be owned proportionately by the second domestic corporation for a Internal Revenue Service discovers that persons who would be treated as principal purpose of avoiding the the reporting requirements of this owning such stock or securities under application of section 367(e)(1) and the paragraph have not been satisfied. sections 318(a)(2)(A) and (B). In requirements of this section, any (2) Distribution by a publicly traded applying section 318(a)(2)(B), if a trust distribution of stock or securities to corporation—(i) Conditions for includes interests that are not which section 355 applies by such nonrecognition. Except as provided by actuarially ascertainable and a principal second domestic corporation shall be paragraph (c)(2)(ii) of this section, gain purpose of the inclusion of the interests treated for Federal income tax purposes shall not be recognized under paragraph is the avoidance of section 367(e)(1), all as a distribution to such foreign person (b) of this section by a domestic such interests shall be considered to be or persons, followed by a transfer of the corporation making a distribution that owned by foreign persons. In a case stock or securities to the first domestic qualifies for nonrecognition under where an interest holder in a corporation. The qualification of the section 355 of stock or securities of a partnership, trust, or estate that owns distribution to the foreign person for an domestic controlled corporation to a stock of the distributing corporation is exception to the general gain person who is not a qualified U.S. itself a partnership, trust, or estate, the recognition rule of paragraph (b)(1) of person (as defined in paragraph (b)(1)(i) rules of this paragraph (b)(5) apply to this section, and the consequences of of this section) if both of the following individuals or corporations that own the transfer to the first domestic conditions are satisfied: (direct or indirect) interests in the corporation under this section, shall be upper-tier partnership, trust or estate. determined in accordance with all of the (A) Stock of the domestic controlled corporation with a value of more than (ii) Written statement. If, prior to the facts and circumstances. 80 percent of the outstanding stock of date on which the distributing (c) Nonrecognition of gain—(1) the corporation is distributed with corporation must file its income tax Distribution by a U.S. real property respect to one or more classes of the return for the year of the distribution, holding corporation of stock in a second outstanding stock of the distributing the corporation obtains a written U.S. real property holding corporation. corporation that are regularly traded on statement, signed under penalties of Gain shall not be recognized under an established securities market, as perjury by an interest holder in a paragraph (b) of this section by a defined in § 1.897–1(m) (1) and (3), partnership, trust, or estate that receives domestic corporation making a located in the United States. Stock is a distribution described in paragraph distribution that qualifies for considered to be regularly traded if it is (b)(1) of this section from the nonrecognition under section 355 of regularly quoted by brokers or dealers corporation, which statement certifies stock or securities of a domestic making a market in such interests. A that the interest holder is a qualified controlled corporation to a person who broker or dealer is considered to make U.S. person (as defined in paragraph is not a qualified U.S. person (as defined a market only if the broker or dealer (b)(1)(i) of this section), no liability shall in paragraph (b)(1)(i) of this section) if holds himself out to buy or sell interests be imposed under paragraph (b)(1) of the conditions specified in paragraphs in the stock at the quoted price. this section with respect to the (c)(1) (i) and (ii) of this section are both distribution to the partnership, trust, or satisfied: (B) The distributing corporation estate to the extent of the interest (i) Immediately after the distribution, satisfies the reporting requirements holder’s interest in the partnership, both the distributing and controlled contained in paragraph (c)(2)(iii) of this trust, or estate, unless the distributing corporations are U.S. real property section. corporation knows or has reason to holding corporations (as defined in (ii) Recognition of gain if distributee know that the statement is false, or it is section 897(c)(2)). For the treatment of owns 5 percent of distributing subsequently determined that the the distribution under section 897, see corporation. If, at the time of the interest holder, in fact, was not a section 897(e)(1) and the regulations distribution, the distributing qualified U.S. person at the time of the thereunder. corporation knows or has reason to distribution. The written statement must (ii) The distributing corporation know that any distributee who is not a set forth the amount of the interest attaches to its timely filed Federal qualified U.S. person (as defined in holder’s proportionate interest in the income tax return for the taxable year in paragraph (b)(1)(i) of this section) owns, partnership, trust, or estate as which the distribution occurs a directly, indirectly, or constructively determined under paragraph (b)(5)(i) of statement titled ‘‘Section 367(e)(1)— (using the rules of sections 897(c)(3) and this section and must set forth the Reporting of Section 355 Distribution by (c)(6)(C), but subject to the rules of amount of such entity’s proportionate U.S. Real Property Holding paragraph (b)(5) of this section), more interest in the distributing and Corporation’’, signed under penalties of than 5 percent (by value) of a class of controlled corporation, as well as the perjury by an officer of the corporation, stock or securities of the distributing interest holder’s name, taxpayer disclosing the following information— corporation with respect to which the identification number, home address (in (A) A statement that the distribution stock or securities of the controlled the case of an individual) or office is one to which paragraph (c)(1) of this corporation is distributed (a 5-percent address and place of incorporation (in section applies; and shareholder), the distributing the case of a corporation). The written (B) A description of the transaction in corporation will qualify for statement must be retained by the which one U.S. real property holding nonrecognition under paragraph (c)(2)(i) distributing corporation with its books corporation distributes the stock of of this section if, with respect to such and records for a period of three another U.S. real property holding 5-percent shareholder, either— Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Rules and Regulations 42171

(A) The distribution qualifies for of this section and not this paragraph distributees (including any transferee or nonrecognition under paragraph (c)(3) (c)(2). substitute distributees as defined in of this section; or (3) Distribution of certain domestic paragraph (c)(3)(vi) (C) or (D) of this (B) The distributing corporation stock to 10 or fewer qualified foreign section) during the entire term of the recognizes gain (but not loss) on the distributees—(i) In general. (A) Gain gain recognition agreement. See, distribution under paragraph (b) of this shall not be recognized under paragraph however, paragraph (c)(3)(vi)(G) of this section. (b) of this section by a domestic section for special rules applicable to (iii) Reporting Requirements. To corporation making a distribution that substitute distributees. qualify for nonrecognition treatment qualifies for nonrecognition under (D) Unless the distributing under paragraph (c)(2)(i) of this section, section 355 of stock or securities of a corporation obtains a ruling from the the distributing corporation must attach domestic controlled corporation with Internal Revenue Service to the to its timely filed Federal income tax respect to a foreign distributee (defined contrary, no foreign distributee shall be return, for the taxable year in which the in paragraph (c)(3)(i)(B) of this section) treated as a qualified foreign distributee distribution occurs a statement titled that is a qualified foreign distributee if it holds its interest in the distributing ‘‘Section 367(e)(1)—Reporting of (defined in paragraph (c)(3)(i)(C) of this corporation through a partnership, trust Section 355 Distribution by U.S. section), provided that each of the or estate, characterized as such under Publicly Traded Corporation to Foreign conditions contained in paragraph the taxation laws of the United States or Persons,’’ signed under penalties of (c)(3)(ii) of this section is satisfied. If any entity that is treated as fiscally perjury by an officer of the corporation, one or more foreign distributees are not transparent under the taxation laws of disclosing the following information: treated as qualified foreign distributees, the foreign country in which it is a (A) A statement that the distribution the distributing corporation shall resident if such country maintains a is one to which paragraph (c)(2) of this recognize a percentage of the gain comprehensive income tax treaty with section applies. realized on the distribution, equal to the the United States which contains an (B) A description of the transaction in percentage of its stock owned information exchange provision. which the distributing corporation that immediately before the distribution, (ii) Conditions for nonrecognition. A is publicly traded on a U.S. securities directly or indirectly, by foreign distribution of stock or securities market distributed stock or securities of distributees who are not qualified described in paragraph (c)(3)(i) of this a domestic controlled corporation. foreign distributees. See paragraph (b)(5) section to a qualified foreign distributee (C) The U.S. securities market on of this section for rules regarding the shall not result in the recognition of which the stock of the distributing ownership of stock held by a gain if each of the following conditions corporation is publicly traded. partnership, trust, or estate. is satisfied: (D) A statement that, at the time of the (B) For purposes of this paragraph (A) If more than ten foreign distribution, either— (c)(3), the term foreign distributee is any (1) The distributing corporation does person who is not a qualified U.S. distributees, at any time during the not know or have reason to know that person (as defined in paragraph (b)(1)(i) entire term of the gain recognition any distributee who is not a qualified of this section) if such person— agreement, are eligible to be qualified U.S. shareholder (as defined in (1) Owned stock or securities of the foreign distributees, the distributing paragraph (b)(1)(i) of this section) is a 5- distributing corporation immediately corporation shall designate the foreign percent shareholder; or prior to the distribution; distributees to be considered qualified (2) The distributing corporation (2) Owned stock or securities of the foreign distributees for which knows or has reason to know that one distributing corporation within two nonrecognition is claimed under this or more distributees who are not years prior to the distribution and paragraph (c)(3). qualified U.S. persons are 5-percent directly, indirectly, or constructively (B) Immediately after the distribution shareholders, and, that with respect to (using the rules of section 318) owns 50 and on each testing date beginning after each such 5-percent shareholder, percent or more of either the total voting the distribution and during the period either— power or the total value of the stock of that the agreement to recognize gain (i) Gain will not be recognized the distributing or controlled (described in paragraph (c)(3)(iii) of this because the requirements of paragraph corporation immediately after the section) is in effect, the value of the (c)(3) of this section are satisfied; or distribution; or distributing corporation (that is, the fair (ii) Gain (but not loss) will be (3) Is a transferee or substitute market value of the assets of the recognized in accordance with distributee, as defined in paragraph distributing corporation, less all paragraph (b) of this section. (c)(3)(vi) (C) or (D) of this section. liabilities of the distributing (iv) Timely filed return. For purposes (C) For purposes of this section, corporation) must exceed the amount of of this paragraph (c)(2), an income tax except as provided by paragraph gain that the distributing corporation return (including an amended return) (c)(3)(i)(D) of this section, the term realized, but did not recognize (on or will be considered a timely filed Federal qualified foreign distributee is a foreign after the distribution) under this income tax return if it was received distributee that, during the entire period paragraph (c)(3), as a consequence of the prior to the time that the Internal for which the agreement to recognize distribution with respect to qualified Revenue Service discovers that the gain (described in paragraph (c)(3)(iii) of foreign distributees. This requirement reporting requirements of this paragraph this section) is in effect with respect to will be deemed satisfied for any testing (c)(2) have not been satisfied. the distributee, is either an individual or date upon which the adjusted basis of (v) Relation to other nonrecognition a corporation (as defined in section the distributing corporation’s assets, less provisions. If the distribution of the 7701(a)(3)), resident of a foreign country all liabilities of the distributing stock and securities of the controlled that maintains a comprehensive income corporation, exceeds the amount of the corporation also qualifies for tax treaty with the United States which deferred gain. A testing date is— nonrecognition under paragraph (c)(1) contains an information exchange (1) The last day of any taxable year of of this section, the distributing provision. However, no more than ten the distributing corporation during corporation shall be entitled to foreign distributees in total may be which the agreement to recognize gain nonrecognition under paragraph (c)(1) current or former qualified foreign is in effect; and 42172 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Rules and Regulations

(2) Any date upon which the the agreement under penalties of the fair market values required by this distributing corporation distributes perjury, agreeing to extend the statute of paragraph (c)(3)(iii). property to its shareholders under limitations and accept liability for the (D) The distributing corporation’s section 301(a). tax in the event that the distributing agreement to recognize gain in (C) At all times until the close of the corporation fails to pay the tax upon a accordance with paragraph (c)(3)(vii) of 120-month period following the end of recognition event. The agreement this section. the taxable year of the distributing provided by the distributing corporation (E) The controlled corporation’s corporation in which the distribution shall set forth the following items, agreement to be secondarily liable for was made, except under the under the heading ‘‘GAIN the distributing corporation’s tax circumstances and subject to the RECOGNITION AGREEMENT UNDER liability, pursuant to the gain consequences prescribed in paragraphs § 1.367(e)–1T(c)(3)(iii)’’, with recognition agreement described in this (c)(3) (vi) and (vii) of this section, all paragraphs labeled to correspond with paragraph (c)(3)(iii). qualified foreign distributees must such items: (F) A waiver of the period of continue to own, directly or indirectly, (A) A declaration that the distribution limitations by both the distributing and all of the stock and securities of the is one to which paragraph (c)(3) of this controlled corporation as described in distributing and controlled corporations section applies. paragraph (c)(3)(iv) of this section. that the qualified foreign distributee (B) A description of each qualified (G) An attached statement from each owned, directly or indirectly, foreign distributee, which shall include qualified foreign distributee declaring immediately after the distribution the qualified foreign distributee’s— that the qualified foreign distributee (including any stock and securities of (1) Name; will provide to the distributing the distributing or controlled (2) Address; corporation the annual certifications corporation later acquired from the (3) Taxpayer identification number (if described in paragraph (c)(3)(v)(A) of distributing or controlled corporation any); and this section for each of the taxable years for which the distributee has a holding (4) Residence and citizenship (in the of the distributing corporation, period determined under section 1223 case of an individual) or place of beginning with the taxable year of the by reference to the stock or securities). incorporation and country of residence distribution and ending with the taxable (D) The distribution of stock or (in the case of a qualified foreign year that includes the close of the 120- securities described in paragraph distributee that is a corporation for month period following the taxable year (c)(3)(i) of this section must not be a Federal income tax purposes under of the distributing corporation in which distribution pursuant to which the section 7701(a)(3)). the distribution was made. The attached distributing corporation goes out of (C) A description of the stock and statements shall be signed under existence. securities of the distributing and penalties of perjury by an authorized (E) The distributing corporation must controlled corporations owned (directly officer in the case of any qualified file an agreement to recognize gain, and or indirectly) by each qualified foreign foreign distributee that is a corporation the controlled corporation must agree to distributee, including— for Federal income tax purposes or by be secondarily liable in the event that (1) The number or amount of shares; the individual in the case of a qualified the distributing corporation does not (2) The type of stock or securities; foreign distributee that is an individual. pay the tax due upon a recognition (3) The fair market values of the stock (H) An attached statement from the event described in paragraph (c)(3)(vii) and securities of the controlled controlled corporation declaring that it of this section. The agreement is corporation owned (directly or will provide to the distributing described in paragraph (c)(3)(iii) of this indirectly) by the qualified foreign corporation the annual certifications section and filed by the distributing distributee(s), determined immediately described in paragraph (c)(3)(v)(B) of corporation with its Federal income tax before and immediately after the this section. return for its taxable year in which the distribution; (I) An agreement by the distributing distribution is made. (4) The distributing corporation’s corporation to attach to its tax returns (F) For each of the taxable years of the adjusted basis (immediately before the the annual certifications of the qualified distributing corporation, beginning with distribution) in the stock and securities foreign distributees and the controlled the taxable year of the distribution and of the controlled corporation distributed corporation described in paragraphs ending with the taxable year that to the qualified foreign distributees; (c)(3)(v)(A) and (B) of this section, includes the close of the 120-month (5) The fair market value of the respectively, and to meet any other period following the end of the taxable distributing corporation (fair market reporting requirement in accordance year of the distributing corporation in value of its assets, less all liabilities of with paragraph (c)(3)(v) of this section. which the distribution was made, all the distributing corporation) (iv) Waiver of period of limitation. qualified foreign distributees and the immediately after the distribution. Such The distributing corporation and the controlled corporation must provide to amount must exceed the amount of gain controlled corporation must file, with the distributing corporation the annual that the distributing corporation the gain recognition agreement certifications described in paragraph realized, but did not recognize under described in paragraph (c)(3)(iii) of this (c)(3)(v) of this section, and the this paragraph (c)(3), on the distribution section, a waiver of the period of distributing corporation must file the to qualified foreign distributees. limitation on the assessment of tax upon certifications with its tax return. Alternatively, the fair market value the gain realized on the distribution to (iii) Agreement to recognize gain. The standard will be deemed satisfied if the the qualified foreign distributee(s). The agreement to recognize gain required by adjusted basis of the assets of the waiver shall be executed on Form 8838, this paragraph (c)(3)(iii) shall be distributing corporation, less all substitute form, or such other form as prepared by or on behalf of the liabilities of the distributing may be prescribed by the Commissioner distributing corporation and signed corporation, exceeds the amount of the for this purpose and shall extend the under penalties of perjury by an deferred gain. period for assessment of such tax to a authorized officer of the distributing (6) For each applicable valuation, a date not earlier than the close of the corporation. An authorized officer of the summary of the method (including thirteenth full year following the taxable controlled corporation must also sign appraisals, if any) used for determining year that includes the distribution. A Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Rules and Regulations 42173 properly executed Form 8838, substitute the best of its knowledge, the annual securities of the distributing or form, or such other form authorized by certifications are true. controlled corporation (or a successor- this paragraph (c)(3)(iv) shall be deemed (D) The distributing corporation must in-interest), or of a qualified foreign to be consented to and signed by a also attach to the annual certifications a distributee, in a section 355 Service Center Director or the Assistant separate statement indicating— distribution. Commissioner (International) for (1) The names and addresses of each (E) Gain shall not be recognized under purposes of § 301.6501(c)–1(d) of this current and each former qualified paragraph (c)(3)(vii) of this section in a chapter. foreign distributee; transaction involving a transfer of the (v) Annual certifications and other (2) The percentage of direct or assets of the distributing or controlled reporting requirements. For each of the indirect ownership that the qualified corporation to a successor-in-interest, taxable years of the distributing foreign distributees retain in the only if the following information and corporation, beginning with the taxable distributing corporation at year-end; and agreements are included with the first year of the distribution and ending with (3) A certification that the value of the annual certification thereafter filed the taxable year that includes the close distributing corporation (or the adjusted under paragraph (c)(3)(v) of this section: of the 120-month period following the basis of its assets), less all of the (1) A description of the transaction end of the taxable year of the liabilities of the distributing corporation (including a statement of applicable distributing corporation in which the on all testing dates, exceeded the Internal Revenue Code provisions, and distribution was made, the distributing amount of the gain deferred as of the a description of stock or securities corporation must file with its Federal testing date. transferred, exchanged, or received in income tax return the annual (vi) Special rule for nonrecognition the transaction). certifications for that year described in transactions. (A) Gain shall not be (2) A description of the successor-in- this paragraph (c)(3)(v). recognized under paragraph (c)(3)(vii) of interest (including the name, address, (A) Each current qualified foreign this section if the distributing or taxpayer identification number, and distributee must provide to the controlled corporation is acquired by a place of incorporation of the successor distributing corporation an annual successor-in-interest (described in in interest). certification, signed under penalties of paragraph (c)(3)(vi)(B) of this section), (3) An agreement of the successor-in- perjury by an authorized officer of the or upon a direct or indirect disposition interest, signed under penalties of qualified foreign distributee that is a by a qualified foreign distributee of perjury by an authorized officer of the corporation or by the qualified foreign stock or securities of a distributing or successor-in-interest corporation, to distributee that is an individual (as the controlled corporation (or a successor- succeed to all of the responsibilities and case may be). Each annual certification in-interest) that is subject to a gain duties of the distributing corporation or must identify the distribution with recognition agreement described in the controlled corporation (as the case respect to which it is given by setting paragraph (c)(3)(iii) of this section, if the may be) under this paragraph (c)(3) as forth the date and a summary requirements of this paragraph (c)(3)(vi) if the successor-in-interest were the description of the distribution. In the are satisfied and the disposition consists distributing or controlled corporation. annual certification, the qualified of a transfer described in section 332, (F) Gain shall not be recognized under foreign distributee must declare that— 337, 351, 354, 355, 356, or 361 that does paragraph (c)(3)(vii) of this section in a (1) The qualified foreign distributee not result in a substantial transaction described in paragraph continues to satisfy paragraph transformation (as defined in paragraph (c)(3)(vi)(A) of this section in which a (c)(3)(i)(C) of this section; and (c)(3)(vii)(B) of this section). For special qualified foreign distributee, directly or (2) The qualified foreign distributee rules regarding transfers described in indirectly, disposes of, and a transferee continues to own, directly or indirectly, section 355, see paragraph (c)(3)(vi)(G) distributee acquires, stock or securities without interruption, the stock and of this section. of the distributing or controlled securities of the distributing and (B) For purposes of this section, the corporation (or a successor-in-interest), controlled corporations (except to the term successor-in-interest refers to any or another transferee distributee, only if extent the stock or securities have been domestic corporation that acquires the the transferee distributee is either a disposed of in a transfer described in assets of the distributing or controlled qualified U.S. person or qualifies as a paragraph (c)(3)(vi) of this section). corporation in a transaction described in qualified foreign distributee under this (B) The controlled corporation must section 381(a) to which this paragraph paragraph (c)(3) and the following provide a certification to the (c)(3)(vi) applies. information and agreements are distributing corporation, signed under (C) For purposes of this section, the included with the first annual penalties of perjury by an authorized term transferee distributee refers to: certification thereafter filed under officer of the corporation, that lists each (1) Any corporation whose stock or paragraph (c)(3)(v) of this section: current qualified foreign distributee securities are exchanged for the stock or (1) A description of the transaction holding (directly or indirectly) stock of securities of the distributing or (including a statement of applicable the controlled corporation and its direct controlled corporation (or a successor- Internal Revenue Code provisions, and or indirect ownership interest in the in-interest), or of another transferee a description of the stock or securities controlled corporation at both the first distributee, in a transaction described in of the distributing or controlled day and the last day of the taxable year section 351, 354, or sections 361 and corporation (or a successor-in-interest) for which the distributing corporation 381(a)(2), to which this paragraph owned, directly or indirectly, by files its Federal income tax return, and (c)(3)(vi) applies. qualified foreign distributees certifies the accuracy of that list. (2) Any corporation that acquires the immediately after the transaction). (C) The distributing corporation must assets of any qualified foreign (2) An agreement of the distributing attach to the annual certifications distributee, transferee distributee or corporation and the controlled described in paragraphs (c)(3)(v)(A) and substitute distributee in a transaction corporation (amending the agreement (B) of this section, a statement signed described in section 381(a). described in paragraph (c)(3)(iii) of this under penalties of perjury by an (D) For purposes of this section, the section), signed under penalties of authorized officer of the corporation, in term substitute distributee refers to any perjury by an authorized officer of the which the corporation declares that, to person that acquires the stock or corporation, to recognize gain (in the 42174 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Rules and Regulations case of the distributing corporation) and the controlled corporation) in distributees owned immediately after to be secondarily liable (in the case of accordance with the provisions of this the distribution. the controlled corporation) in paragraph (c)(3) upon the occurrence of (C) In the case of a sale (or similar accordance with the provisions of this a disposition, directly or indirectly, by disposition), directly or indirectly, by a paragraph (c)(3) upon the occurrence of a foreign substitute distributee of any qualified foreign distributee of the stock a disposition, directly or indirectly, by stock or securities received by the or securities of the distributing or the foreign transferee distributee of any substitute distributee in the transaction. controlled corporation (or a successor- stock or securities of the distributing or (3) An agreement of each foreign in-interest) that does not result in a controlled corporation (or a successor- substitute distributee, signed under substantial transformation, the in-interest) (other than a disposition that penalties of perjury by the individual or distributing corporation shall be itself satisfies the requirements of this authorized officer of the corporation, to required to recognize a proportionate paragraph (c)(3)(vi)). succeed to all of the responsibilities, amount of the gain realized but not (3) An agreement of each foreign qualifications and duties of a qualified recognized under this paragraph (c)(3), transferee distributee, signed under foreign distributee under this paragraph equal to the percentage of stock of the penalties of perjury by the individual or (c)(3), with respect to the stock or distributing or controlled corporation, an authorized officer of the corporation, securities of the distributing or as the case may be, sold (or otherwise to comply with all of the controlled corporation (or a successor- disposed of), directly or indirectly, by responsibilities, qualifications and in-interest) received by such substitute the qualified foreign distributee. duties of a qualified foreign distributee distributee. However, if the sale (or other under this paragraph (c)(3), with respect (vii) Recognition of gain. (A) (1) The disposition) of stock or securities by a to the stock or securities of the distributing corporation must file, qualified foreign distributee results in a distributing or controlled corporation within 90 days of a transaction substantial transformation, the (or a successor-in-interest) owned, described in this paragraph distributing corporation (or its directly or indirectly, by the transferee (c)(3)(vii)(A), an amended return for the successor-in-interest) must recognize distributee. year of the distribution and recognize the entire deferred gain that has not (G) Gain shall not be recognized gain realized but not recognized upon already been recognized under under paragraph (c)(3)(vii) of this such distribution, if, prior to the close paragraph (c)(3)(vii) of this section. section in the case of a section 355 of the 120-month period following the (D) In the case of a nonrecognition distribution by a qualified foreign end of the taxable year of the transaction that results in a substantial distributee of stock or securities of the distributing corporation in which the transformation, the distributing distributing or controlled corporation distribution was made, either— corporation must recognize the entire (or a successor-in-interest), or of another (i) A qualified foreign distributee sells deferred gain that has not already been qualified foreign distributee. The (or otherwise disposes of) the stock or recognized under paragraph (c)(3)(vii) of qualified foreign distributee that securities of the distributing or distributed the stock or securities is no controlled corporation that the qualified this section. If a nonrecognition longer required to comply with the rules foreign distributee owned (directly or transaction does not result in a of this section applicable to qualified indirectly) (other than pursuant to a substantial transformation, the foreign distributees, provided such transfer described in paragraph (c)(3)(vi) distributing corporation does not person no longer has any interest, of this section); or recognize any gain provided that the directly or indirectly, in the distributing (ii) Any other transaction (e.g., a requirements of paragraph (c)(3)(vi) of and controlled corporation. Thus, for public offering or reorganization) results this section are satisfied. example, such person is not counted as in a substantial transformation (as (E) A sale (or other disposition), a qualified foreign distributee for defined in paragraph (c)(3)(vii)(B) of this directly or indirectly, by a substitute purposes of limiting gain recognition to section) in either the distributing or distributee, of all or a portion of the 10 or fewer foreign distributees. In order controlled corporation (or both). stock or securities of the distributing or for this provision to apply, the (2) For purposes of this paragraph controlled corporation (or a successor- substitute distributee must either be a (c)(3)(vii)(A), a disposition includes, but in-interest) that the substitute qualified U.S. person or satisfy the is not limited to, any disposition treated distributee received in the section 355 requirements applicable to qualified as a sale or exchange under this subtitle distribution shall be treated as a foreign distributees contained in this (e.g., section 301(c)(3)(A), 302(a), 351(b) disposition of such stock or securities paragraph (c)(3) and must include with or 356(a)(1)). For the computation of by a qualified foreign distributee (in the first annual certification thereafter gain in the case of a sale (or similar accordance with paragraph (c)(3)(vii)(C) filed under paragraph (c)(3)(v) of this disposition), see paragraph (c)(3)(vii)(C) of this section) for purposes of section the following information and of this section. For the computation of computing gain under this paragraph agreements: gain in the case of other transactions, (c)(3)(vii). (1) A description of the transaction see paragraphs (c)(3)(vii) (D) and (F) of (F) Other transactions or events shall (including a statement of applicable this section. For special rules regarding trigger gain under this paragraph Internal Revenue Code sections, and a substitute distributees, see paragraph (c)(3)(vii) as follows: description of the stock or securities (c)(3)(vii)(E) of this section. (1) If a qualified foreign distributee distributed in the transaction). (B) A transaction is treated as a ceases to satisfy the requirements for a (2) An agreement of the distributing substantial transformation if, as a result qualified foreign distributee contained corporation and the controlled of such transaction, the qualified foreign in paragraph (c)(3)(i)(C) of this section corporation (amending the agreement distributees, transferee distributees and (or any other specified requirements in described in paragraph (c)(3)(iii) of this substitute distributees own, in the paragraph (c)(3) of this section), the section), signed under penalties of aggregate, less than 50 percent of either qualified foreign distributee shall be perjury by an authorized officer of the the total voting power or the total value treated as if it sold all of the stock and corporation, to recognize gain (in the of the stock of the distributing or the securities that it owned, directly or case of the distributing corporation) and controlled corporation, directly or indirectly, in the distributing and to be secondarily liable (in the case of indirectly, that the qualified foreign controlled corporation (or a successor- Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Rules and Regulations 42175 in-interest), on the date that such person (H) If additional tax is required to be 897(e)(1) of a foreign distributee on the ceased to meet the requirements. paid by the distributing corporation (or receipt of stock or securities of a (2) If a substitute distributee ceases to a successor-in-interest) for the year of domestic or foreign corporation where satisfy the requirements for a qualified the distribution, interest must be paid the foreign distributee’s interest in the foreign distributee contained in by the distributing corporation (or the distributing domestic corporation is a paragraph (c)(3)(i)(C) of this section (or controlled corporation if the distributing United States real property interest, see any other specified requirements in corporation fails to pay the tax due) on section 897(e)(1) and the regulations paragraph (c)(3) of this section), the that amount at the rates determined thereunder. substitute distributee shall be treated as under section 6621(a)(2) with respect to (2) Dividend treatment under section if it sold all of the stock and securities the period between the date that was 1248. With respect to the treatment as of the distributing or controlled prescribed for filing the distributing a dividend of a portion of the gain corporation (or a successor-in-interest) corporation’s original income tax return recognized by the domestic corporation that it received in the distribution, on for the year of the distribution and the on the distribution of the stock of the date that it ceased to meet the date on which the additional tax for that certain foreign corporations, see requirements. year is paid. sections 1248(a) and (f) and the (3) If the distributing corporation (or (I) Net operating losses, capital losses, regulations thereunder. a successor-in-interest) fails to satisfy or credits against tax that were available (3) Distribution of stock of a passive the requirement contained in paragraph in the year of the distribution and that foreign investment company. [Reserved] (c)(3)(ii)(B) of this section on any testing are unused (whether or not they have (4) Reporting under section 6038B. date during which the agreement to expired since the distribution) at the Notice shall be required under section recognize gain is in effect, such failure time of gain recognition described in 6038B with respect to a distribution will be treated as if a substantial this paragraph (c)(3)(vii) may be applied described in this section. See § 1.6038B– transformation has occurred on such (respectively) by the distributing 1T(e). date. corporation against any gain recognized (e) Examples. The rules of paragraphs or tax owed by reason of this provision, (b), (c), and (d) of this section are (4) If either the distributing or but no other adjustments shall be made illustrated by the examples below. In all controlled corporation (or a successor- with respect to any other items of examples, assume that all foreign in-interest) is acquired in a section income or deduction in the year of companies are treated as corporations 381(a) exchange and the acquirer is not distribution or other years. for Federal income tax purposes and are a successor-in-interest that satisfies the (viii) Failure to comply. (A) Except as not treated as fiscally transparent under requirements of paragraph (c)(3)(vi)(E), otherwise provided in paragraph the taxation laws of the relevant foreign such acquisition will be treated as if a (c)(3)(viii)(B) of this section, if the country. substantial transformation has occurred distributing corporation or the Example 1. (i) FC, a Country Z company, on the date of the acquisition. controlled corporation fails to comply in (G) A qualified foreign distributee that owns all of the outstanding stock of DC1, a any material respect with the domestic corporation. DC1 owns all of the sells (or otherwise disposes of) all of its requirements of this paragraph (c)(3) or outstanding stock of DC2, another domestic interest, directly or indirectly, in the with the terms of an agreement corporation. The fair market value of the DC1 distributing and controlled corporation submitted pursuant hereto, or if the stock is 300x, and FC has a 100x basis in the ceases thereafter to be a qualified distributing corporation knows or has DC1 stock. The fair market value of the DC2 foreign distributee. In addition, where reason to know of any failure of another stock is 180x, and DC1 has a 80x basis in the one qualified foreign distributee owns DC2 stock. Neither DC1 nor DC2 is a U.S. real person to so comply, the distributing property holding corporation. Country Z does all of the stock of another qualified corporation shall treat the initial foreign distributee, and both persons not maintain an income tax treaty with the distribution of the stock or securities of United States. have identical direct or indirect the controlled corporation as a taxable (ii) In a transaction qualifying for interests in the distributing or exchange in the year of the distribution. nonrecognition under section 355, DC1 controlled corporation, the direct or In such event, the period for assessment distributes all of the stock of DC2 to FC. After indirect sale (or other disposition) by of tax shall be extended until three years the distribution, the DC1 stock has a fair one qualified foreign distributee of all of after the date on which the Internal market value of 120x. its interest in the distributing or Revenue Service receives actual notice (iii) Under paragraphs (b) (1) and (2) of this controlled corporation (under paragraph section, DC1 recognizes gain of 100x, which of such failure to comply. is the difference between the fair market (c)(3)(vii) of this section) will terminate (B) If a person fails to comply in any value (180x) and the adjusted basis (80x) of the qualified foreign distributee status material respect with the requirements the stock distributed. Under paragraph (d)(1) for the second qualified foreign of this paragraph or with the terms of an of this section and section 358, FC takes a distributee. The principles of this agreement submitted pursuant thereto, basis of 40x in the DC1 stock, and a basis of paragraph (c)(3)(vii) shall generally be the provisions of paragraph 60x in the DC2 stock. applied so that any gain relating to the (c)(3)(viii)(A) of this section shall not Example 2. (i) C, a citizen and resident of same stock of the distributing or apply if the person is able to show that Country F, owns all of the stock of DC1, a domestic corporation. DC1, in turn, owns all controlled corporation by more than one such failure was due to reasonable cause of the stock of DC2, also a domestic person is not taxed more than once and not willful neglect, provided that corporation. The fair market value of the DC1 under this paragraph (c)(3)(vii). In any the person achieves compliance as soon stock is 500x, and C has a 100x basis in the event, gain recognized pursuant to this as the person becomes aware of the DC1 stock. The DC2 stock has a fair market paragraph (c)(3)(vii), on a cumulative failure. Whether a failure to materially value of 200x, and DC1 has a 180x basis in basis, shall not exceed the amount of comply was due to reasonable cause the DC2 stock. gain that the distributing corporation shall be determined by the district (ii) In a transaction qualifying for would have recognized under section nonrecognition under section 355, DC1 director under all the facts and distributes to C all of the stock of DC2. DC1 367(e)(1) if its initial distribution of the circumstances. and DC2 are U.S. real property holding stock or securities of the controlled (d) Other consequences—(1) corporations immediately after the corporation was fully taxable under Exchange under section 897(e)(1). With distribution. After the distribution, the DC1 paragraph (b) of this section. respect to the treatment under section stock has a fair market value of 300x. 42176 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Rules and Regulations

(iii) Under paragraph (c)(1) of this section, section 358, FC will take a 400x basis in the stock is 600x and DC1 has a 400x basis in provided that DC1 complies with the DC2 stock and FC’s basis in the DC1 stock the DC2 stock. Neither DC1 nor DC2 is a U.S. reporting requirements contained in will be reduced to 400x. real property holding corporation. paragraph (c)(1)(ii) of this section, DC1 does Example 5. (i) Assume the same facts as in (ii) FC, a company resident in country X, not recognize gain on the distribution of the Example 4. In addition, two years after DC1’s and USP, a U.S. corporation, are the sole DC2 stock because DC1 and DC2 are U.S. real distribution of DC2 stock to FC, FC sells 25 partners of P1. Under the rules and property holding corporations immediately percent of the DC2 stock to Y, an unrelated principles of sections 701 through 761, FC is after the distribution. corporation. One year later, FC sells an entitled to a 60 percent, and USP is entitled (iv) Under section 897(e) and the additional 30 percent of its DC2 stock to Z, to a 40 percent, distributive share of each regulations thereunder, C is considered to another unrelated corporation. item of P1 income and loss. Country X have exchanged DC1 stock with a fair market (ii) Under paragraph (c)(3)(vii) of this maintains an income tax treaty with the value of 200x and an adjusted basis of 40x section, upon FC’s sale of 25 percent of its United States that includes an information for DC2 stock with a fair market value of DC2 stock, DC1 is required to file an exchange provision. 200x. Because DC2 is a U.S. real property amended return for the year in which the (iii) In a distribution qualifying for holding corporation, and its stock is a U.S. DC2 stock was distributed to FC, and nonrecognition under section 355, DC1 real property interest, C does not recognize recognize 100x of gain, which represents 25 distributes all of the stock of DC2 to P1. any gain under section 897(e) on the percent of the gain realized but not Paragraph (b)(5)(i) of this section provides distribution. C takes a basis of 40x in the DC2 recognized on the distribution. that stock owned by a partnership is stock, and its basis in the DC1 stock is (iii) Upon FC’s second sale of 30 percent considered to be owned proportionately by reduced to 60x pursuant to section 358. of its DC1 stock, DC1 is required to file its partners. Under paragraph (b)(5)(ii) of this Example 3. (i) All of the outstanding another amended return for the year of the section, if USP certifies to DC1 that it is a common stock of DC, a domestic corporation distribution and recognize the balance of the qualified U.S. person (and DC1 does not that is not a U.S. real property holding deferred gain, or 300x, because such sale know or have reason to know that the corporation, is regularly traded on an results in a substantial transformation certification is false), no Federal income tax established securities market located in the (within the meaning of paragraph shall be imposed with respect to the United States. None of the foreign (c)(3)(vii)(B) of this section). distribution by DC1 of DC2 to P1, to the shareholders of DC (directly, indirectly, or Example 6. (i) Assume the same facts as in extent of USP’s 40 percent interest in P1. constructively) owns more than five percent Example 5, except that FC did not sell an (iv) Paragraph (c)(3)(i)(D) of this section of the common stock of DC. DC owns all of additional 30 percent of its DC2 stock. provides that no foreign distributee may be the stock of DS, a domestic corporation. The Instead, DC2 issued additional stock in a treated as a qualified foreign distributee with stock of DS has appreciated in the hands of public offering that reduced FC’s interest in respect to stock of the distributing DC. DC2 to less than 50 percent. corporation owned through a partnership, (ii) In a transaction qualifying for (ii) The public offering caused a substantial unless the distributing corporation receives a nonrecognition under section 355, DC transformation because, as a result of the ruling from the Internal Revenue Service to distributes all of the stock of DS to the public offering, the interest of FC in DC2 was the contrary. Thus, DC1 may not avoid common shareholders of DC. reduced to less than 50 percent of the amount recognition of the remaining 60 percent of (iii) Under paragraph (c)(2) of this section, of stock that FC owned in DC2 immediately the realized gain (relating to the interest of DC does not recognize gain on the after the distribution. Thus, the result is the P1 owned by FC) by entering into a gain distribution of the DS stock to any foreign same as in Example 5. recognition agreement pursuant to paragraph distributee, provided that DC complies with Example 7. (i) Assume the same facts as in (c)(3) of this section, unless DC1 obtains a the reporting requirements contained in Example 4 In addition, one year after DC1’s ruling to the contrary. paragraph (c)(2)(iii) of this section. Each distribution of DC2 stock to FC, FC transfers Example 9. (i) DC1, a domestic shareholder’s basis in the DC and DS stock all of the DC2 stock to FS, a company corporation, owns all of the stock of DC2, is determined pursuant to section 358. resident in Country X, in exchange for all of also a domestic corporation. The stock of Example 4. (i) FC, a company resident in the FS stock, in a transaction described in DC1 is owned equally by three shareholders: Country X, owns all of the stock of DC1, a section 351. A, a domestic corporation, B, a U.S. citizen, domestic corporation. DC1, in turn, owns all (ii) FS is described as a transferee and FB, a Country Y company. of the stock of DC2, a domestic corporation. distributee under paragraph (c)(3)(vi)(C) of (ii) A short time before DC1 adopted a plan The fair market value of the DC1 stock is this section. The transfer by FC of DC2 stock to distribute the stock of DC2 to its 1,000x, and FC has a basis in the DC1 stock to FS is a nonrecognition transaction under shareholders, but after the board of directors of 800x. The DC2 stock has a fair market paragraph (c)(3)(vi) of this section provided of DC1 began contemplating the distribution, value of 500x at the time of the distribution, all of the requirements in paragraph FB formed Newco, a domestic corporation, and DC1 has a 100x basis in the DC2 stock. (c)(3)(vi)(F) of this section are satisfied. (FS and contributed its DC1 stock to Newco in a Neither DC1 nor DC2 is a U.S. real property is counted, together with FC, for purposes of transaction qualifying for nonrecognition holding corporation. Country X maintains an limiting nonrecognition treatment to up to under section 351. A valid business purpose income tax treaty with the United States that ten qualified foreign distributees during the existed for FB’s transfer of the DC1 stock to includes an information exchange provision. time that the gain recognition agreement is in Newco, but this purpose would have been (ii) In a transaction qualifying for effect.) DC1 will not recognize gain under the fulfilled irrespective of whether FB nonrecognition under section 355, DC1 gain recognition agreement upon FC’s transferred the DC1 stock to Newco before distributes to FC all of the stock of DC2. transfer of the stock of DC2 to FS if DC1 the distribution of DC2, or after the Immediately after the distribution, the DC1 enters into a new agreement, agreeing to distribution of DC2 (in which case FB would stock has a fair market value of 500x. Thus, recognize gain if FS sells DC2 stock, and the have transferred the stock of DC1 and DC2 to the value of DC1 exceeds 400x, the amount provisions of paragraph (c)(3)(vi) of this Newco). of the deferred gain on the distribution. section are satisfied. A sale by FC of FS stock (iii) Pursuant to paragraph (b)(6) of this (iii) Under paragraph (c)(3) of this section, would be treated as a recognition event under section, the District Director may determine DC1 will not recognize gain on the paragraph (c)(3)(vii) because such sale would that FB formed Newco for a principal distribution of the DC2 stock to (foreign constitute an indirect disposition by FC of purpose of avoiding section 367(e)(1). In such distributee) FC if FC is a qualified foreign the DC2 stock. case, for Federal income tax purposes, FB distributee (as described in paragraph Example 8. (i) P1, an entity treated as a will be treated as having received the stock (c)(3)(i)(C) of this section) and DC1 enters partnership for Federal income tax purposes, of DC2 in a section 355 distribution, and then into a gain recognition agreement (in which owns all of the outstanding stock of DC1, a as having transferred the stock to Newco in DC2 agrees to be secondarily liable), as domestic corporation. DC1 owns all of the a section 351 transaction. described in paragraph (c)(3)(iii) of this outstanding stock of DC2, another domestic (iv) If B was not a shareholder of DC1 so section, and DC1, DC2 and FC otherwise corporation. The fair market value of the DC1 that A and FB were equal (50 percent) comply with all of the provisions of stock is 900x and P1 has an 900x basis in the shareholders, FB would be treated as a paragraph (c)(3) of this section. Pursuant to DC1 stock. The fair market value of the DC2 foreign distributee within the meaning of Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Rules and Regulations 42177 paragraph (c)(3)(i)(B) of this section without Example 12. (i) FC, a company resident in a qualified foreign distributee because FP and the application of paragraph (b)(6) of this Country X, owns all of the stock of DC1, a FS had identical 25 percent ownership section. In such case, DC1 would recognize domestic corporation (and has owned DC1 interests in DC1, and DC1 is taxable with 50 percent of the gain realized on the for many years). Country X maintains an respect to such 25 percent interest. Thus, distribution of the DC2 stock, unless FB was income tax treaty with the United States that under paragraph (c)(3)(vii)(G) of this section, a qualified foreign distributee within the includes an information exchange provision. a sale by FS of its DC1 or DC2 stock will not meaning of paragraph (c)(3)(i) of this section DC1, in turn, owns all of the stock of DC2, result in an additional trigger of the gain and the conditions under paragraph (c)(3)(ii) a domestic corporation. DC1 has a basis of recognition agreement under paragraph of this section were satisfied. 200x in the DC2 stock, and the DC2 stock has (c)(3)(vii) of this section. Example 10. (i) DC1, a domestic a value of 500x. Immediately after the (iv) If FP was instead a resident of Country corporation, owns all of the stock of DC2, distribution of DC2 described below, DC1 has X, DC1 could defer its entire realized gain if also a domestic corporation. The stock of a value of more than 300x. both FP and FS were qualified foreign DC1 is owned by FP, a company resident in (ii) DC1 distributes all of the stock of DC2 distributees. In such case, DC1 would have Country X. Country X maintains in income to FC (a qualified foreign distributee) in a three qualified foreign distributees. (DC1 is tax treaty with the United States that transaction described under section 355, and limited to ten qualified foreign distributees, includes an information exchange provision. satisfies all of the requirements of paragraph including transferee and substitute The DC2 stock has a fair market value of 500x (c)(3) of this section to qualify for an distributees during the term of the gain at the time of the distribution, and DC1 has exception to the general rule of taxation recognition agreement.) If FS sold its entire a basis of 100x in the DC2 stock. The stock under section 367(e)(1). Two years after the interest in either DC1 or DC2, DC1 would be of DC1 has a value of 500x (excluding DC1’s initial distribution, FC distributes all of the required to amend its Federal income tax investment in DC2). Neither DC1 nor DC2 is stock of DC2 to its sole shareholder, FP, a return for the year of the transfer and include a U.S. real property holding corporation. resident of Country X, in a transaction 100x in income. In such case, neither FP nor (ii) FP forms a holding company resident described under section 355. FS would be considered a qualified foreign in Country X, Newco, and transfers 50 (iii) Under paragraph (c)(3)(vi)(D) of this distributee immediately after the sale (and, as percent of its DC1 stock to Newco in an section, FP is a substitute distributee with a result, FP’s sale of its FS stock would not exchange described in section 351. respect to the DC2 stock. Provided that the trigger additional gain under paragraph Immediately after those transactions, DC1 requirements of paragraph (c)(3)(vi)(G) of this (c)(3)(vii)(G) of this section). The result distributes all of its DC2 stock to FP in section are satisfied, FP replaces FC as a would be the same if FP sold all of the stock exchange for FP’s stock of DC1 in a qualified foreign distributee with respect to of FS (as such sale is an indirect disposition transaction described in section 355. Thus, the DC2 stock (although FC is still a qualified by FP of all its stock of DC1 and DC2). (In after the non pro rata distribution, FP owns foreign distributee with respect to the DC1 such case, the sale by FS of its stock of DC1 all of the stock of DC2, and FP also owns all stock). FC is no longer required to maintain or DC2 would not trigger additional gain of the stock of Newco, which, in turn, owns an interest in DC2 for purposes of under paragraph (c)(3)(vii)(G) of this section.) all of the stock of DC1. determining whether a substantial (f) Effective date. This section shall be (iii) Newco and FP are foreign distributees transformation occurs. Thus, a sale by FP of effective with respect to distributions (under paragraph (c)(3)(i)(B)(1) of this the stock of FC would not trigger gain under section) because they owned stock of DC1 paragraph (c)(3)(vii) of this section. occurring on or after September 13, immediately prior to the distribution. Example 13. (i) DC1, a domestic 1996. However, taxpayers may elect to Assuming that all of the requirements of the corporation, owns all of the stock of DC2, apply the rules of this section with gain recognition agreement exception under also a domestic corporation. The stock of respect to distributions occurring on or paragraph (c)(3) of this section are satisfied DC1 is owned by two shareholders: FP and after December 31, 1995. (so that both FP and Newco are qualified FX. FP, a company resident in Country Z, Par. 4. Section 1.6038B–1T is foreign distributees under paragraph owns 25 percent of the stock of DC1. FX, a amended by revising the second (c)(3)(i)(C) of this section), DC1 will not be company resident in Country X, owns 75 sentence of paragraph (b)(2)(i) and immediately taxable on the 400x gain percent of the stock of DC1. Country X adding the text of paragraph (e) to read realized on the distribution of the stock of maintains an income tax treaty with the as follows: DC2. Gain will be triggered under the gain United States that includes an information recognition agreement under paragraph exchange provision; Country Z does not. The § 1.6038B±1T Reporting of transfers (c)(3)(vii) of this section if FP sells stock of fair market value of DC2 is 500x and DC1 has described in section 367 (temporary). Newco (because such sale would be an a basis of 100x in the DC2 stock. Immediately indirect disposition by FP of the stock of after the distribution described below, DC1 * * * * * DC1), if Newco sells stock of DC1, or if FP has a value in excess of 400x. (b) * * * sells stock of DC2. (ii) FP formed FS, a company resident in (2) * * * (i) * * * For special reporting Example 11. (i) Assume the same facts as Country X, and transferred its 25 percent rules applicable to transfers described in Example 10, except that Newco is a interest in DC1 to FS in exchange for all of under section 367(e)(1), see paragraph company resident of Country Z, and Country the stock of FS in an exchange described in (e) of this section; no reporting is Z does not maintain an income tax treaty section 351. Within two years of the required for transfers described in with the United States that includes an exchange, DC1 distributed all of the stock of section 367(e)(2). * ** information exchange provision. DC2 to its shareholders. * * * * * (ii) DC1 may still enter into a gain (iii) Under paragraph (c)(3) of this section, recognition agreement under paragraph (c)(3) DC1 may defer a portion of its gain realized (e) * * * (1) In general. If a domestic of this section. Both FP and Newco are on the distribution of DC2. DC1 must corporation (distributing corporation) foreign distributees, but Newco is not a immediately recognize 25 percent of the makes a distribution described in qualified foreign distributee. Thus, DC1 must realized gain, or 100x, because FP, a 25 section 367(e)(1), the distributing recognize 50 percent, or 200x, of the 400x percent (indirect) shareholder is a foreign corporation must comply with the deferred gain on the distribution of DC2 distributee (within the meaning of paragraph reporting requirements under this stock. Such (50 percent) portion equals the (c)(3)(i)(B) of this section), but may not be paragraph (e)(1). Form 926 and other percentage of the DC1 stock owned by foreign treated as a qualified foreign distributee requirements described in this section distributees that are not qualified foreign (within the meaning of paragraph (c)(3)(i)(C) need not be met by the distributing distributees (the 50 percent of the stock of this section). DC1 may defer 75 percent of owned by Newco). DC1 may defer 50 percent its realized gain if FX is a qualified foreign corporation in the case of a distribution of the gain, with respect to the portion of its distributee and DC1 enters into a gain described in section 367(e)(1). stock owned by FP, a qualified foreign recognition agreement (in which DC2 agrees (2) Reporting requirements if distributee, provided that it meets the to be secondarily liable), and the provisions transaction is taxable under section requirements of paragraph (c)(3) of this of paragraph (c)(3) of this section are 367(e)(1). If the distribution is taxable to section. otherwise met. DC1 need not include FS as the distributing corporation under 42178 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Rules and Regulations section 367(e)(1) and the regulations Margaret Milner Richardson, or requested. After consideration of the thereunder, the distributing corporation Commissioner of Internal Revenue. comments, which are addressed below, must attach to its Federal income tax Approved: the proposed regulations under section return for the taxable year that includes Donald C. Lubick, 7503 are adopted as published in the the date of the transfer a statement titled notice. ‘‘Section 367(e)(1) Reporting— Acting Assistant Secretary of the Treasury. Compliance With Section 6038B’’, [FR Doc. 96–20663 Filed 8–09–96; 12:19 pm] Explanation of Provisions and signed under penalties of perjury by an BILLING CODE 4830±01±U Summary of Comments officer of the corporation, disclosing the In response to the notice of proposed following information: (i) A description of the transaction in 26 CFR Part 301 rulemaking for the regulations under which the U.S. distributing corporation [TD 8681] section 7503, three categories of comments were received. First, there distributed stock or securities of a RIN 1545±AT22 controlled corporation (whether was some concern that replacing the list domestic or foreign) to one or more Time for Performance of Acts Where of legal holidays with a citation to the foreign distributees. Last Day Falls on Saturday, Sunday, or law in the District of Columbia would (ii) The basis and fair market value of Legal Holiday mean the list of holidays would no the stock and securities that were longer be accessible. It was suggested distributed by the distributing AGENCY: Internal Revenue Service (IRS), that the IRS annually publish the corporation in the transaction. Treasury. holidays by announcement or some (3) Reporting requirements if ACTION: Final regulations. other method. The final regulations do transaction qualifies for an exception to SUMMARY: This document contains final not retain the list of holidays because section 367(e)(1). If the distributing regulations relating to the time for such a list requires regulatory revision corporation qualifies for an exception performance of acts by taxpayers and by whenever a change in the law occurs under § 1.367(e)–1T(c)(1), the the Commissioner, a district director, or with respect to the holidays. However, requirements of section 6038B are the director of a regional service center, a tax calendar that lists the legal satisfied if the distributing corporation when the last day for performance falls holidays is annually made available complies with the reporting on a Saturday, Sunday, or legal holiday. through IRS Publication 509. This free requirements contained in § 1.367(e)– In particular, these regulations replace publication can be obtained by calling 1T(c)(1)(ii). If the distributing the list of legal holidays with a citation the toll free telephone number 1–800– corporation qualifies for an exception to the District of Columbia law that is TAX-FORM (1–800–829–3676), or by under § 1.367(e)–1T(c)(2), the the source of the list. contacting an IRS Forms Distribution requirements of section 6038B are EFFECTIVE DATE: These regulations are Center. satisfied if the distributing corporation effective August 14, 1996. complies with the reporting Second, it was requested that the IRS FOR FURTHER INFORMATION CONTACT: address the impact of a federal requirements contained in § 1.367(e)– Judith A. Lintz (202) 622–6232 (not a government shutdown on the time for 1T(c)(2)(iii). If the distributing toll-free number). corporation qualifies for an exception performance of acts when the last day under § 1.367(e)–1T(c)(3), the SUPPLEMENTARY INFORMATION: for performance is a day when the requirements of section 6038B are Background government is closed. Section 7503 of satisfied if the distributing corporation the Code is limited to extending the On September 25, 1995, the IRS complies with the reporting time for performance of acts when the requirements contained in § 1.367(e)– published in the Federal Register (60 FR 49356) a notice of proposed last day for performance falls on a 1T(c)(3). Saturday, Sunday, or legal holiday. * * * * * rulemaking (IA–36–91 [1995–2 C.B. 470]) relating to the time for Therefore, the regulations for section PART 602ÐOMB CONTROL NUMBERS performance of acts when the last day 7503 are not appropriate for clarifying UNDER THE PAPERWORK for performance falls on a Saturday, the effect of a federal government REDUCTION ACT Sunday, or legal holiday. When the last shutdown on the time allowed for Par. 5. The authority for citation for day for performance of an act by a performance of an act. part 602 continues to read as follows: taxpayer or an employee or Third and last, it was requested that Authority: 26 U.S.C. 7805. administrator of the IRS falls on a the regulations outline the kinds of acts Par. 6. In § 602.101, paragraph (c) is Saturday, Sunday, or legal holiday, to which the extension of time provided amended by removing the entry for section 7503 of the Internal Revenue under section 7503 applies. The final ‘‘1.367(e)-1’’ and adding an entry in Code (Code) extends the time for regulations do not include this numerical order to read as follows: performing the act. Under the extension, information. The purpose of the current the act must be performed by the next § 602.101 OMB Control numbers. regulatory project is to replace the list day that is not a Saturday, Sunday, or * * * * * of holidays and revise other outdated (c) * * * legal holiday. The current regulations material in the regulations. Outlining explain and supplement section 7503. the kinds of acts to which section 7503 This document contains final Current applies is not within the scope of the CFR part or section where regulations that simplify and update the identified and described OMB current project. control No. current regulations. In particular, the final regulations replace the list of ***** holidays, which are determined by 1.367(e)±1T ...... 1545±1487 reference to the law in the District of Columbia, with a citation to that law. ***** The IRS received oral and written comments on the notice of proposed rulemaking. No public hearing was held Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Rules and Regulations 42179

Special Analyses § 301.7503±1 Time for performance of acts rule, the suspension will be withdrawn where last day falls on Saturday, Sunday, or by publication in the Federal Register. It has been determined that this legal holiday. EFFECTIVE DATE: The effective date of Treasury decision is not a significant * * * * * each community’s suspension is the regulatory action as defined in EO (b) Legal holidays. For the purpose of third date (‘‘Susp.’’) listed in the third 12866. Therefore, a regulatory section 7503, the term legal holiday column of the following tables. assessment is not required. It also has includes the legal holidays in the ADDRESSES: If you wish to determine been determined that section 553(b) of District of Columbia as found in D.C. whether a particular community was the Administrative Procedure Act (5 Code Ann. 28–2701. In the case of any suspended on the suspension date, U.S.C. chapter 5) and the Regulatory return, statement, or other document contact the appropriate FEMA Regional Flexibility Act (5 U.S.C. chapter 6) do required to be filed, or any other act Office or the NFIP servicing contractor. not apply to these regulations, and, required under the authority of the FOR FURTHER INFORMATION CONTACT: therefore, a Regulatory Flexibility internal revenue laws to be performed, Robert F. Shea, Jr., Division Director, Analysis is not required. Pursuant to at an office of the Internal Revenue Program Implementation Division, section 7805(f) of the Internal Revenue Service, or any other office or agency of Mitigation Directorate, 500 C Street, Code, the notice of proposed rulemaking the United States, located outside the preceding these regulations was SW., Room 417, Washington, DC 20472, District of Columbia but within an (202) 646–3619. submitted to the Chief Counsel for internal revenue district, the term legal SUPPLEMENTARY INFORMATION: Advocacy of the Small Business holiday includes, in addition to the legal The NFIP enables property owners to purchase Administration for comment on its holidays in the District of Columbia, any flood insurance which is generally not impact on small business. statewide legal holiday of the state otherwise available. In return, where the act is required to be Drafting Information communities agree to adopt and performed. If the act is performed in administer local floodplain management accordance with law at an office of the The principal author of these aimed at protecting lives and new Internal Revenue Service or any other regulations is Judith A. Lintz, Office of construction from future flooding. office or agency of the United States Assistant Chief Counsel (Income Tax & Section 1315 of the National Flood located in a territory or possession of Accounting), Internal Revenue Service. Insurance Act of 1968, as amended, 42 the United States, the term legal holiday However, other personnel from the IRS U.S.C. 4022, prohibits flood insurance includes, in addition to the legal and Treasury Department participated coverage as authorized under the holidays in the District of Columbia, any in their development. National Flood Insurance Program, 42 legal holiday that is recognized U.S.C. 4001 et seq., unless an List of Subjects in 26 CFR Part 301 throughout the territory or possession in appropriate public body adopts which the office is located. Employment taxes, Estate taxes, adequate floodplain management Excise taxes, Gift taxes, Income taxes, Margaret Milner Richardson, measures with effective enforcement Penalties, Reporting and recordkeeping Commissioner of Internal Revenue. measures. The communities listed in requirements. Approved: June 20, 1996. this document no longer meet that Adoption of Amendments to the Donald C. Lubick, statutory requirement for compliance Regulations Acting Assistant Secretary of the Treasury. with program regulations, 44 CFR part 59 et seq. Accordingly, the communities [FR Doc. 96–20625 Filed 8–13–96; 8:45 am] Accordingly, 26 CFR part 301 is will be suspended on the effective date amended as follows: BILLING CODE 4830±01±U in the third column. As of that date, flood insurance will no longer be PART 301ÐPROCEDURE AND available in the community. However, ADMINISTRATION FEDERAL EMERGENCY some of these communities may adopt MANAGEMENT AGENCY and submit the required documentation Paragraph 1. The authority citation 44 CFR Part 64 of legally enforceable floodplain for part 301 continues to read in part as management measures after this rule is follows: [Docket No. FEMA±7646] published but prior to the actual Authority: 26 U.S.C. 7805 * * * suspension date. These communities Suspension of Community Eligibility will not be suspended and will continue Par. 2. Section 301.7503–1 is AGENCY: Federal Emergency their eligibility for the sale of insurance. amended as follows: Management Agency, FEMA. A notice withdrawing the suspension of 1. In the fourth sentence of paragraph ACTION: Final rule. the communities will be published in (a), the language ‘‘Thursday, November the Federal Register. SUMMARY: 22, 1956 (Thanksgiving Day), the suit This rule identifies In addition, the Federal Emergency will be timely if filed on Friday, communities, where the sale of flood Management Agency has identified the November 23, 1956, in the Court of insurance has been authorized under special flood hazard areas in these Claims’’ is removed and the language the National Flood Insurance Program communities by publishing a Flood ‘‘Thursday, November 23, 1995 (NFIP), that are suspended on the Insurance Rate Map (FIRM). The date of (Thanksgiving Day), the suit will be effective dates listed within this rule the FIRM if one has been published, is timely if filed on Friday, November 24, because of noncompliance with the indicated in the fourth column of the 1995, in the Court of Federal Claims’’ is floodplain management requirements of table. No direct Federal financial added in its place. the program. If the Federal Emergency assistance (except assistance pursuant to Management Agency (FEMA) receives the Robert T. Stafford Disaster Relief 2. Paragraph (b) is revised as set forth documentation that the community has and Emergency Assistance Act not in below. adopted the required floodplain connection with a flood) may legally be 3. Paragraph (c) is removed. The management measures prior to the provided for construction or acquisition revision reads as follows: effective suspension date given in this of buildings in the identified special 42180 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Rules and Regulations flood hazard area of communities not 10, Environmental Considerations. No Executive Order 12612, Federalism participating in the NFIP and identified environmental impact assessment has for more than a year, on the Federal been prepared. This rule involves no policies that Emergency Management Agency’s have federalism implications under Regulatory Flexibility Act initial flood insurance map of the Executive Order 12612, Federalism, community as having flood-prone areas The Acting Associate Director has October 26, 1987, 3 CFR, 1987 Comp., (section 202(a) of the Flood Disaster determined that this rule is exempt from p. 252. Protection Act of 1973, 42 U.S.C. the requirements of the Regulatory Executive Order 12778, Civil Justice 4106(a), as amended). This prohibition Flexibility Act because the National Reform against certain types of Federal Flood Insurance Act of 1968, as assistance becomes effective for the amended, 42 U.S.C. 4022, prohibits This rule meets the applicable communities listed on the date shown flood insurance coverage unless an standards of section 2(b)(2) of Executive in the last column. appropriate public body adopts Order 12778, October 25, 1991, 56 FR The Acting Associate Director finds adequate floodplain management 55195, 3 CFR, 1991 Comp., p. 309. measures with effective enforcement that notice and public comment under List of Subjects in 44 CFR Part 64 5 U.S.C. 553(b) are impracticable and measures. The communities listed no unnecessary because communities listed longer comply with the statutory Flood insurance, Floodplains. requirements, and after the effective in this final rule have been adequately Accordingly, 44 CFR part 64 is notified. date, flood insurance will no longer be available in the communities unless amended as follows: Each community receives a 6-month, they take remedial action. 90-day, and 30-day notification PART 64Ð[AMENDED] addressed to the Chief Executive Officer Regulatory Classification that the community will be suspended This final rule is not a significant 1. The authority citation for Part 64 unless the required floodplain regulatory action under the criteria of continues to read as follows: management measures are met prior to section 3(f) of Executive Order 12866 of Authority: 42 U.S.C. 4001 et seq.; the effective suspension date. Since September 30, 1993, Regulatory Reorganization Plan No. 3 of 1978, 3 CFR, these notifications have been made, this Planning and Review, 58 FR 51735. 1978 Comp., p. 329; E.O. 12127, 44 FR 19367, final rule may take effect within less 3 CFR, 1979 Comp., p. 376. than 30 days. Paperwork Reduction Act § 64.6 [Amended] This rule does not involve any National Environmental Policy Act collection of information for purposes of 2. The tables published under the This rule is categorically excluded the Paperwork Reduction Act, 44 U.S.C. authority of § 64.6 are amended as from the requirements of 44 CFR Part 3501 et seq. follows:

Date certain fed- eral assistance Community Effective date of Current effective no longer avail- State/Location No. eligibility map date able in special flood hazard areas

Region II New York: Bolton, town of, Warren County ...... 360869 July 23, 1975, Emerg.; July 3, 1996, Reg.; August 16, 1996 August 16, August 16, 1996, Susp. 1996. Lake George, town of, Warren County ... 360876 August 7, 1978, Emerg.; April 30, 1986, ...... do ...... Do. Reg.; August 16, 1996, Susp. Queensbury, town of, Warren County .... 360879 September 8, 1975, Emerg.; July 16, 1984, ...... do ...... Do. Reg.; August 16, 1996, Susp. Region V Illinois: Central, city of , Marion and Clinton 170453 July 2, 1975, Emerg.; December 19, 1984, ...... do ...... Do. Counties. Reg.; August 16, 1996, Susp. Indiana: Seymour, city of, Jackson County ... 180099 April 3, 1975, Emerg.; November 2, 1983, ...... do ...... Do. August 16, 1996, Susp. Michigan: Coldwater, city of, Branch County ...... 260813 February 10, 1989, Emerg.; August 16, ...... do ...... Do. 1996, Reg.; August 16, 1996, Susp. Coldwater, township of, Branch County 260826 September 26, 1989, Emerg.; August 16, ...... do ...... Do. 1996, Reg.; August 16, 1996, Susp. Wisconsin: Dunn County, unincorporated 550118 March 26, 1971, Emerg.; October 15, 1981, ...... do ...... Do. areas. Reg.; August 16, 1996, Susp. Region VII Missouri: Howard County, unincorporated 290162 July 25, 1984, Emerg.; January 5, 1989, ...... do ...... Do. areas. Reg.; August 16, 1996, Susp. Region X Washington: Ferry County, unincorporated areas ...... 530041 August 7, 1975, Emerg.; April 17, 1985, ...... do ...... Do. Reg.; August 16, 1996 Susp. Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Rules and Regulations 42181

Date certain fed- eral assistance Community Effective date of Current effective no longer avail- State/Location No. eligibility map date able in special flood hazard areas

Stevens County, unincorporated areas 530185 July 24, 1975, Emerg.; September 14, 1990, ...... do ...... Do. Reg.; August 16, 1996 Susp. Code for reading third column: Emerg.ÐEmergency; Reg.ÐRegular; Rein.ÐReinstatement; Susp.ÐSuspension.

(Catalog of Federal Domestic Assistance No. ACTION: Final rule. 202/418–2345, TTY 202/418–0484, 83.100, ‘‘Flood Insurance.’’) [email protected], Network Services Issued: July 31, 1996. SUMMARY: This action requires that all Division, Common Carrier Bureau. wireline telephones in the workplace, Richard W. Krimm, SUPPLEMENTARY INFORMATION: This confined settings (e.g., hospitals, Acting Associate Director, Mitigation summarizes the Commission’s Report nursing homes) and hotels and motels Directorate. and Order (R&O) in the matter of Access eventually be hearing aid compatible [FR Doc. 96–20720 Filed 8–13–96; 8:45 am] to Telecommunications Equipment and and have volume control. As of April 1, BILLING CODE 6718±05±P Services by Persons With Disabilities, 1997, hearing aid compatible telephones (CC Docket 87–124, adopted June 27, manufactured or imported for use in the 1996, and released July 3, 1996. The file United States must have the letters is available for inspection and copying ‘‘HAC’’ permanently affixed to them, FEDERAL COMMUNICATIONS during the weekday hours of 9 a.m. to and, as of November 1, 1998, have COMMISSION 4:30 p.m. in the Commission’s volume control. The intent of these Reference Center, Room 239, 1919 M 47 CFR Parts 64 and 68 requirements is to increase access to Street, N.W., or copies may be telephone service by persons with purchased from the Commission’s [CC Docket No. 87±124; FCC 96±285] impaired hearing. duplicating contractor, ITS, Inc., 2100 M EFFECTIVE DATE: October 23, 1996. The Access to Telecommunications Street, NW., Suite 240, Washington, DC incorporation by reference of certain 20037, phone 202/857–3800. Equipment and Services by Persons publications listed in the regulations is With Disabilities (Hearing Aid approved by the Director of the Federal Paperwork Reduction Act Compatibility) Register October 23, 1996. Public reporting burden for the AGENCY: Federal Communications FOR FURTHER INFORMATION CONTACT: Greg collections of information is estimated Commission. Lipscomb, Attorney, 202/418–2340, Fax as follows:

Hours Annual Rule sections per re- re- Total bur- sponse sponses den

68.112(b)(3)(E) ...... 2 805,000 1,610,000 68.224(a) ...... 11.36 1,100 12,500 68.300(c) ...... 11.36 1,100 12,500 Total Annual Burden: 1,635,000

Frequency of Response: On occasion. Commission suspended portions of the persons with disabilities. The The foregoing estimates include the 1992 rules because petitions filed by Committee’s recommendations, adopted time for reviewing instructions, establishments affected by the by unanimous consent, were filed with searching existing data sources, regulations stated that the the Commission in the Committee’s gathering and maintaining the data establishments were encountering Final Report of August, 1995. On needed, and completing and reviewing serious difficulties in their attempts to November 28, 1995, the Commission the collections of information. Send comply. (Order, 8 FCC Rcd 4958 (1993), adopted and released a Notice of comments regarding this burden 58 FR 26692 (May 5, 1993)). On March Proposed Rulemaking (Notice of estimate or any other aspect of the 27, 1995, the Commission announced Proposed Rulemaking, 11 FCC Rcd 4338 collections of information including that an advisory committee, the Hearing (1995) (NPRM)) that reflected the suggestions for reducing the burden to Aid Compatibility Negotiated recommendations of the Committee (See the Federal Communications Rulemaking Committee (Committee), 60 FR 63667 (December 12, 1995); 61 FR Commission, Records Management would consider whether the rule 1887 (January 24, 1996)). On June 27, Branch, Paperwork Reduction Project suspension should be lifted and 1996, the Commission adopted a R&O (3060–0687), Washington, DC 20554, whether new rules should be proposed. (FCC 96–285), which was released on and to the Office of Management and (See 59 FR 60343 (Nov. 23, 1994); 58 FR July 3, 1996. Budget, Paperwork Reduction Project 1539 (March 27, 1995); and 60 FR 27945 The R&O requires that wireline (3060–0687). Washington, DC 20503. (May 26, 1995)). The Committee telephones in (1) the non-common areas Analysis of Proceeding: In 1992, the represented the views and interests of of the workplace; (2) the patient and Commission adopted rules all interested parties, including those of residential rooms of confined settings, implementing the Hearing Aid the Commission, telephone equipment such as hospitals and nursing homes; Compatibility Act of 1988, 47 U.S.C. manufacturers, employers, hospitals, and (3) the guest rooms of hotels and § 610 (HAC Act). In 1993, the nursing homes, hotels and motels, and motels eventually be hearing aid 42182 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Rules and Regulations compatible, as defined at 47 CFR hearing aid compatible by November 1, b. Summary of significant issues Section 68.316 (electro-magnetic coil 1997, while those with fewer than fifty raised by the public comments in compatibility). The R&O also requires beds would have to comply by response to the initial regulatory that, as of November 1, 1998, all November 1, 1998. Telephones in all flexibility analysis. There were no replacement telephones and all newly confined setting establishments would comments submitted in direct response purchased telephones be equipped with be exempt if alternate signalling devices to the Regulatory Flexibility Analysis in volume control, in addition to having were available, monitored and working, the NPRM. In general comments on the electro-magnetic coil hearing aid- or if a resident brought in and NPRM, however, a number of compatibility. The R&O also requires maintained his or her own telephone commenters raised issues that might that, as of November 1, 1998, all equipment. affect small entities. Several telephones manufactured or imported The rules require that hotels and commenters stated that the for use in the United States have a motels with eighty or more guest rooms Commission’s proposed rules would volume control feature. The R&O to provide hearing aid compatible duplicate the provisions of the includes a technical specification for telephones by November 1, 1998, while Americans With Disabilities Act of 1990 volume control. The R&O modifies our those with fewer than eighty guest (ADA), or exceed the Commission’s rules governing telephone equipment rooms have until November 1, 1999 to authority under the HAC Act, thus labeling, and requires that, as of April do so. As of April 1, 1997, generally unnecessarily burdening 1, 1997, all telephones manufactured or twenty percent of guest rooms must establishments. A number of hotel and imported for use in the United States have telephones that are hearing aid motel owners said the costs to replace that are hearing aid compatible have the compatible. telephones would be burdensome. One letters ‘‘HAC’’ permanently affixed to The rules do not address wireless manufacturer said the volume control them. The R&O implements additional telephone hearing aid compatible manufacturing requirement could cost recommendations of the Committee issues, because those are being ‘‘millions of dollars’’ in start-up costs. regarding consumer education. Finally, addressed by the Commission’s Wireless An association of manufacturers stated the R&O adopts other amendments to Telecommunications Bureau. that the proposed one-year phase-in of existing hearing aid compatibility rules the volume control manufacturing for the purpose of clarification. Final Regulatory Flexibility Analysis requirement was too short. Several The new rules require no testing or Pursuant to the Regulatory Flexibility organizations representing persons with retrofitting of existing workplace Act of 1980, 5 U.S.C. Section 601, et hearing disabilities said that stamping telephones. Instead, the rules set seq., the Commission’s final analysis in the letters ‘‘HAC’’ on a telephone would deadlines that are beyond the normal this R&O is as follows: be more informative than stamping the life-cycle times for the telephones to be date of manufacture. 1. Final Regulatory Analysis: As replaced in these establishments. The c. Description and estimate of number required by Section 603 of the rules also require volume control for of small businesses to which rules will Regulatory Flexibility Act, 5 U.S.C. newly acquired and replacement apply. (1) The RFA generally defines the telephones in these establishments, but § 603 (RFA), an Initial Regulatory term ‘‘small business’’ as having the replacement or retrofitting for volume Flexibility Analysis (IRFA) was same meaning as the term ‘‘small control are not required, and existing incorporated in the NPRM. The business concern’’ under the Small inventories of telephones are not be Commission sought written public Business Act, 15 U.S.C. § 632. A small affected by the volume control comments on the proposals in the business concern is one which (1) is requirement. The new rules will NPRM, including on the IRFA. The independently owned and operated; (2) increase access by persons with hearing Commission’s Final Regulatory is not dominant in its field of operation; disabilities to telephones provided for Flexibility Analysis (FRFA) in this R&O and (3) satisfies any additional criteria emergency use and are necessary to is as follows: established by the Small Business implement the Hearing Aid a. Need for, and objectives of, this Administration (SBA). Id. The RFA Compatibility Act of 1988. action. This R&O amends the Small Business Regulatory Enforcement Under the rules, most workplace Commission’s rules to require that Fairness Act of 1996 (SBREFA) telephones will be required to be eventually all wireline telephones in provisions also apply to nonprofit hearing aid compatible by January 1, workplaces, confined settings and hotels organizations and to governmental 2000. In harmony with the provisions of and motels be hearing aid compatible organizations. the Americans With Disabilities Act of and have volume control. The R&O also (2) The rules in this Report and Order 1990, establishments with fewer than requires that as of November 1, 1998 all apply to four industry categories: (a) fifteen employees will be exempt from wireline telephones manufactured or workplaces; (b) confined settings, such these requirements. After the applicable imported for use in the United States as hospitals and nursing homes; (c) date for having hearing aid compatible must have volume control. These hotels and motels; and (d) importers and telephones, employers can presume that actions are needed to provide greater manufacturers of telephones for use in their telephones are hearing aid access to the telephone network by the United States. There is little overlap compatible. Any person legitimately on persons with hearing disabilities, among these categories because the the premises can challenge this pursuant to the requirements of the Commission’s workplace rules affect presumption with a good faith request Hearing Aid Compatibility Act of 1988 workplace noncommon areas, while the for a hearing aid compatible telephone. (HAC Act). The HAC Act directs the rules that apply to confined settings and Upon receipt of such a request, the Commission to take affirmative and hotels and motels affect other than the employer will have fifteen working days specific steps to increase such access. workplaces of those establishments. to replace any particular telephone that The objectives of these rules are to Telephone manufacturers would be turns out not to be hearing aid provide the needed greater access, while affected as workplaces, but separately compatible. at the same time balancing the needs of affected by the requirement to affix the For confined settings, the new rules establishments that must provide the letters ‘‘HAC’’ to telephones and by the require that establishments with fifty or hearing aid compatible and volume volume control manufacturing more beds make their telephones control telephones. requirement. The determination of Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Rules and Regulations 42183 whether or not an entity within these (5) Hotels and Motels: According to of workplaces, confined settings and industry groups is small is made by the the SBA’s regulations, hotels and motels hotels and motels provide telephones Small Business Administration (SBA). must have annual gross receipts of $5 that have electro-magnetic coil hearing These standards also apply in million or less in order to qualify as a aid compatibility and volume control. determining whether an entity is a small small business concern. 13 CFR These requirements will affect owners business for purposes of the RFA. § 121.201. There are approximately of workplaces, confined settings, and (3) Workplaces: Workplaces 34,671 hotel and motel firms in the hotels and motels. encompass establishments for profit and United States. Of those, approximately (b) The rules also require importers nonprofit, plus local, state and federal 31,382 have gross receipts of $5 million and manufacturers of telephones for use governmental entities. Establishments or less. in the United States to provide with fewer than fifteen employees (6) Telephone Manufacturers and telephones with volume control, generally would be excluded, because Importers: According to the SBA’s beginning November 1, 1998. These they are exempt from the Commission’s regulations, telephone apparatus firms rules would affect small as well as large new rules, except for the work station must have 1,000 or fewer employees in domestic manufacturers of telephones. requirement. SBA guidelines to the order to qualify as a small business e. Commission efforts to learn of, and SBREFA state that about 99.7 percent of concern. 13 CFR § 121.201. There are respond to, the views of small business. all firms are small and have fewer than approximately 456 telephone apparatus In 1992 the Commission adopted rules 500 employees and less than $25 firms in the nation. Figures are not requiring hearing aid compatible million in sales or assets. There are available on how many of these firms telephones in workplaces, confined approximately 6.3 million have 1,000 or fewer employees, but 401 settings and hotels and motels. As the establishments in the SBA database. We of the firms have 500 or fewer time to implement the rules estimate that our rules would affect employees. It is probable that the great approached, businesses, including small fewer than 6.3 million establishments, bulk of the 456 firms have 1,000 or businesses, stated that they were having because our rules exclude fewer employees, and would be difficulty implementing the rules. In establishments with fewer than fifteen classified as small entities. In addition response, the Commission suspended employees. However, we have not been to telephone apparatus firms, there are the rules in 1993. Subsequently, the able to determine what portion of the approximately 12,654 wholesale Commission formed the nineteen- 6.3 million establishments have fewer electronic parts and equipment firms in member Hearing Aid Compatibility than fifteen employees. The SBA data the nation. Many of these firms serve as Negotiated Rulemaking Committee. base does include nonprofit importers of telephones. According to Among the Committee’s membership establishments, but it does not include the SBA’s regulations, wholesale were representatives of small business. governmental entities. SBREFA requires electronic parts and equipment firms Both the hotel and motel representatives us to estimate the number of such must have 100 or fewer employees in (American Hotel and Motel Association) entities with populations of less than order to qualify as a small business and the confined setting representatives 50,000 that would be affected by our entity. 13 CFR § 121.201. Of the 12,654 (American Health Care Association) new rules. There are 85,006 firms, 12,161 have fewer than 100 have many small members. In addition, governmental entities in the nation. employees, and would be classified as the Tele-Communications Association This number includes such entities as small entities. (now known as The Information states, counties, cities, utility districts d. Description of projected reporting, Technology and Telecommunications and school districts. There are no recordkeeping and other compliance Association, or ITTA), a broadly based figures available on what portion of this requirements of the rules. (1) Reporting end-users group, was a member. ITTA number has populations of fewer than and Recordkeeping: This R&O involves has approximately 1,000 members, 50,000. However, this number includes three reporting requirements. First, as of including small entities as members. 38,978 counties, cities and towns, and April 1, 1997, importers and f. Commission efforts to minimize of those, 37,566, or 96 percent, have manufacturers of telephones for use in burdens on small business. (1) In populations of fewer than 50,000. The the United States must stamp their applying the new rules, the Commission Census Bureau estimates that this ratio telephones with the letters ‘‘HAC.’’ The has sought to minimize any is approximately accurate for all potential respondents to this disproportionate burden on small governmental entities. Thus, of the requirement are importers and entities. The workplace requirements, 85,006 governmental entities, we manufactures of telephones for use in for example, generally exempt estimate that 96 percent, or 81,600, are the United States. Second, until the workplaces of fewer than fifteen small entities that would be affected by rules for all workplace telephones go employees. The Commission provided our rules. into effect, employers are required to this exemption because small employers (4) Confined Settings: According to designate certain hearing aid compatible have smaller budgets, which can make the SBA’s regulations, nursing homes telephones for emergency use. The installation of new telephones and hospitals must have annual gross potential respondents to this disproportionately more burdensome for receipts of $5 million or less in order to requirement are owners of workplaces those employers. This is the same qualify as a small business concern. 13 with fifteen or more employees. Third, coverage cutoff standard used in the CFR § 121.201. There are approximately a Commission rule regarding packaging ADA. In calculating the number of 11,471 nursing care firms in the nation, is amended to clarify that the type of ‘‘employees’’ for purposes of of which 7,953 have annual gross hearing aid compatibility referred to is compliance, the total employment force receipts of $5 million or less. There are electro-magnetic coil compatibility. The of an establishment, not the number of approximately 3,856 hospital firms in potential respondents to this employees an employer may have at a the nation, of which 294 have gross requirement are importers and particular site, is the determining factor. receipts of $5 million or less. Thus, the manufacturers of telephones for use in This distinction emphasizes that it is approximate number of small confined the United States. the overall size of the entity, not the setting entities to which the (2) Other Compliance Requirements: circumstance of the deployment of its Commission’s new rules will apply is (a) The rules adopted in this R&O employees, that determines the impact 8,247. require that as of certain dates, owners of the Commission’s requirements. 42184 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Rules and Regulations

(2) The Commission also took into costs to establishments of providing obliged under the HAC Act to encourage account the needs of small entities in volume control and hearing aid the use of currently available technology setting the compliance deadlines for compatible telephones. After reviewing in fulfilling the act’s mandates. Through workplaces. The Committee determined the comments, the Commission the conclusions of its advisory that the average useful life of a concluded that the new rules will not committee, the Hearing Aid workplace telephone is seven years. impose significant additional costs on Compatibility Negotiated Rulemaking Almost all telephones manufactured or telephone users, manufacturers or Committee, the Commission determined imported for use in the United States establishments, and that any costs are that volume control is a currently since August 16, 1989 have had to be significantly outweighed by the benefits available technology that would help hearing aid compatible. Thus, at the to be achieved. give many persons with hearing present time, any workplace telephone g. Commission efforts to maximize disabilities increased access to the is most likely to be hearing aid benefits. Small entities will be among telephone network. compatible. As a margin of flexibility, the beneficiaries of the Commission’s i. Summary of paperwork, however, the Commission set the new rules. Under the new rules, recordkeeping, and other compliance workplace compliance deadline for telephones in workplaces, confined requirements for wireline telephones. November 1, 2005 for telephones settings and hotels and motels will be (a) Paperwork requirements: As of April purchased between January 1, 1985 more accessible to persons with hearing 1, 1997, importers and manufacturers of through December 31, 1989, and disabilities. These changes may lead to telephones for use in the United States November 1, 2000 for all other new business for hotels and motels and must stamp their telephones with the telephones. Even after those dates, small confined settings, and workplaces may letters ‘‘HAC.’’ Until the rules for all entities are allowed to exercise the be able to hire better employees, since workplace telephones go into effect, rebuttable presumption, so that they do the pool of potential employees will be employers are required to designate not have to test and replace their widened to include persons with certain hearing aid compatible telephones. Before those dates, hearing disabilities. In addition, the telephones for emergency use. A workplaces may use existing stored level of public safety will increase in all Commission rule regarding packaging is telephone inventories as replacements, three settings, thereby benefitting both amended to clarify that the type of subject to a rebuttable presumption. the business setting and the public at hearing aid compatibility referred to is Thus, the stored inventories of small large. Telephones also will be easier to electro-magnetic coil compatibility. entities are not rendered obsolete. identify by installers, many of whom (b) Recordkeeping requirements: (3) The requirements for confined will be small entities, as hearing aid NONE. settings and hotels and motels also compatible, once they are stamped (c) Other compliance requirements: make distinctions in the size of ‘‘HAC.’’ Finally, the volume control As of the effective date of this order, establishment. Smaller establishments requirement probably will increase the telephones, including headsets, made are given more time to comply. consumer demand for volume control available to an employee with a hearing Confined setting establishments with telephones, benefitting large and small disability for use by that employee in fewer than fifty beds are given an extra manufacturers alike. his or her employment duty shall be year, until November 1, 1998, to h. Significant alternatives minimizing hearing aid compatible; comply, and hotels and motels with impact on small entities that were fewer than eighty rooms also are given rejected. (1) The Commission As of the effective date of this order, an extra year, until November 1, 1999, considered not including within the newly purchased or replacement to comply. purview of ‘‘telephones provided for telephones in workplaces, confined (4) The Commission also took into emergency use’’ telephones in settings and hotels and motels must be account the needs of small entities in workplace non-common areas, hearing aid compatible. In workplaces, the terms of the volume control telephones in confined settings and if the replacement telephone is from manufacturing requirement. The telephones in hotels and motels. inventory existing before the effective Commission had proposed, in the However, the Commission concluded date of this order, any person may make NPRM, a one-year deadline for this that given the nature of such settings, a bona fide request that such telephone requirement, but after receiving and the needs of persons in such be hearing aid compatible, and, after comment from organizations settings, telephones in workplace November 1, 1998, have volume control. representing large and small noncommon areas, confined settings As of the effective date of this order, manufacturers, the Commission and hotels and motels should be if a hotel or motel room is renovated or extended the period to two-years, until considered telephones provided for newly constructed, or the telephone in November 1, 1998, before compliance emergency use. The Commission noted a hotel or motel room is replaced or with the volume control rule is that persons with hearing disabilities substantially, internally repaired, the required. Similarly, the requirement that are particularly vulnerable in confined telephone must be hearing aid manufacturers affix the letters ‘‘HAC’’ to settings and hotels and motels because compatible. new telephones does not go into effect the persons may be unfamiliar with the As of the effective date of this order, upon the effective date of the new rules, settings and isolated in the event of an and until the applicable workplace but six months later, on April 1, 1997. emergency. dates of January 1, 2000 or 2005, Current small manufacturer telephone (2) Similarly, the Commission workplaces of fifteen or more employees inventories are not affected by this considered not adding a requirement for must provide and designate telephones requirement. volume control, but concluded that for emergency use by employees with (5) Under Section 610(e) of the HAC volume control should be required. The hearing disabilities by providing a Act, the Commission must consider the HAC Act defines telephone hearing aid hearing aid compatible telephone costs, as well as the benefits, of the compatibility as ‘‘an internal means for within a reasonable and accessible proposed rules to all telephone users, effective use with hearing aids,’’ and the distance for an individual searching for including persons with and without legislative history cites amplification, or a telephone from any point in the hearing disabilities. In the NPRM, the volume control, as one such type of workplace, or by providing hearing aid Commission solicited comment on the internal means. The Commission is compatible wireless telephones. Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Rules and Regulations 42185

As of April 1, 1997, the telephones in through December 31, 1989, the in order to incorporate minor changes at least twenty percent of hotel and telephones in one hundred percent of made in the relevant industry standards. motel guest rooms must be hearing aid hotel and motel guest rooms must be List of Subjects compatible. hearing aid compatible, if the hotel or As of November 1, 1997 telephones motel has eighty or more guest rooms. 47 CFR Part 64 (except telephones purchased and As of January 1, 2004, where a hotel Communications common carriers, maintained by a resident for use in that or motel uses telephones purchased Federal Communications Commission, resident’s room, and except where a during the period January 1, 1985 Hearing aid compatibility, Individuals confined establishment has an alternate through December 31, 1989, the with disabilities, Telephone. means of signalling life-threatening or telephones in one hundred percent of emergency situations that is available, hotel and motel guest rooms must be 47 CFR Part 68 working and monitored) in confined hearing aid compatible, if the hotel or Administrative practice and settings with fifty or more beds must be motel has fewer than eighty guest procedure, Communications common hearing aid compatible; rooms. carriers, Communications equipment, As of November 1, 1998, telephones As of January 1, 2005, non-common Federal Communications Commission, (except telephones purchased and area telephones (except headsets, and Hearing aid compatibility, Incorporation maintained by a resident for use in that except for telephones made available to by reference, Reporting and resident’s room, and except where a an employee with a hearing disability recordkeeping requirements, Telephone, confined establishment has an alternate under Section 68.112(b)(3)(A)) Volume control. means of signalling life-threatening or purchased between January 1, 1985 and Federal Communications Commission emergency situations that is available, January 1, 1989 in workplace working and monitored) in confined Shirley Suggs, establishments of fifteen or more Chief, Publications Branch. settings with fewer than fifty beds must employees must be hearing aid be hearing aid compatible; compatible. There shall be a rebuttable Rule Changes As of November 1, 1998, the presumption that, as of January 1, 2005, telephones in hotels and motels with Parts 64 and 68 of Title 47 of the Code all such telephones located in the eighty or more guest rooms must be of Federal Regulations are amended as workplace are hearing aid compatible. hearing aid compatible; follows: As of November 1, 1998 telephones j. Report to Congress. The Secretary shall send a copy of this Final PART 64ÐMISCELLANEOUS RULES for use in the United States provided by RELATING TO COMMON CARRIERS importers and manufacturers must have Regulatory Flexibility Analysis along volume control, and newly purchased with this R&O in a report to Congress 1. The authority citation for Part 64 and replacement telephones in pursuant to Section 251 of the Small continues to read as follows: workplaces, confined settings and hotels Business Regulatory Enforcement Fairness Act of 1996, codified at 5 Authority: Sec. 4, 48 Stat. 1066, as and motels must have volume control. amended; 47 U.S.C. 154, unless otherwise In addition, in hotels and motels, where U.S.C. Section 801(a)(1)(A). A copy of noted. Interpret or apply secs. 201, 218, 226, a hotel or motel room is renovated or this RFA will also be published in the 228, 48 Stat. 1070, as amended, 1077; 47 newly constructed, or the telephone is Federal Register. U.S.C. §§ 201, 218, 226, 228, 610 unless otherwise noted. replaced or substantially, internally Ordering Clauses repaired, the telephone in that room 2. Section 64.607 is revised to read as must have volume control. 1. Accordingly, it is ordered that, follows: As of November 1, 1999, the pursuant to Sections 1, 4, 201–205, 218, telephones in hotels and motels with 220 and 610 of the Communications Act § 64.607 Provision of hearing aid of 1934, as amended, 47 U.S.C. §§ 151, compatible telephones by exchange fewer than eighty guest rooms must be carriers. hearing aid compatible. 154, 201–205, 218, 220, and 610, and 5 As of November 1, 1999, where a U.S.C. §§ 552 and 553, this Report and In the absence of alternative suppliers hotel or motel uses telephones Order is adopted, and Parts 64 and 68 in an exchange area, an exchange carrier purchased during the period January 1, of the Commission’s Rules are amended must provide a hearing aid compatible 1985 through December 31, 1989, the as set forth below. telephone, as defined in § 68.316 of this chapter, and provide related installation telephones in at least twenty-five 2. It is further ordered that the rule and maintenance services for such percent of hotel and motel guest rooms amendments set forth below shall be telephones on a detariffed basis to any must be hearing aid compatible. effective October 23, 1996. As of January 1, 2000, non-common 3. It is further ordered that the customer with a hearing disability who area telephones (except headsets, and Emergency Request to Reinstate requests such equipment or services. Enforcement of the Hearing Aid except for telephones purchased PART 68ÐCONNECTION OF Compatibility Rules, dated May 12, between January 1, 1985 and December TERMINAL EQUIPMENT TO THE 1993, by Alexander Graham Bell 31, 1989, and except for telephones TELEPHONE NETWORK made available to an employee with a Association for the Deaf, et al, is hearing disability under Section dismissed. 1. The authority citation for Part 68 68.112(b)(3)(A)) in workplace 4. It is further ordered that, pursuant continues to read as follows: establishments of fifteen or more to Section 5(c)(1) of the Authority: Secs. 1, 4, 5, 201–5, 208, 215, employees must be hearing aid Communications Act of 1934, as 218, 226, 227, 303, 313, 314, 403, 404, 410, compatible. There shall be a rebuttable amended, 47 U.S.C. § 155(c)(1), 602 of the Communications Act of 1934, as presumption that, as of January 1, 2000, authority is delegated to the Chief, amended, 47 U.S.C. §§ 151, 154, 155, 201–5, all such telephones located in the Common Carrier Bureau, to make minor 208, 215, 218, 226, 227, 303, 313, 314, 403, workplace are hearing aid compatible. changes, pursuant to the Administrative 404, 410, 602, 610. As of January 1, 2001, where a hotel Procedure Act procedures, in the 2. Section 68.3 is amended by adding or motel uses telephones purchased technical standards specified in the following definition in alphabetical during the period January 1, 1985 Sections 68.316 and 68.317 of the rules, order to read as follows: 42186 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Rules and Regulations

§ 68.3 Definitions. automobile, railway or subway, and (v) During the period from October 23, * * * * * workplace common areas. 1996, until the applicable date of Hearing aid compatible: Except as Note to paragraph (b)(1): Examples of January 1, 2000 or January 1, 2005, used at §§ 68.4(a)(3) and 68.414, the workplace common areas include workplaces of fifteen or more employees terms hearing aid compatible or hearing libraries, reception areas and similar also must provide and designate aid compatibility are used as defined in locations where employees are telephones for emergency use by § 68.316, unless it is specifically stated reasonably expected to congregate. employees with hearing disabilities that hearing aid compatibility volume * * * * * through one or more of the following control, as defined in § 68.317, is (3) Telephones, except headsets, in means: intended or is included in the workplace non-common areas. Note: (A) By having at least one coin- definition. Examples of workplace non-common operated telephone, one common area * * * * * areas include private enclosed offices, telephone or one other designated open area individual work stations and hearing aid compatible telephone 3. Section 68.4 is amended by revising mail rooms. Such non-common area within a reasonable and accessible paragraphs (a)(1) and (a)(2) to read as telephones are required to be hearing distance for an individual searching for follows: aid compatible, as defined in § 68.316, a telephone from any point in the § 68.4 Hearing aid compatible telephones. by January 1, 2000, except for those workplace; or (a)(1) Except for telephones used with telephones located in establishments (B) By providing wireless telephones public mobile services, telephones used with fewer than fifteen employees; and that meet the definition for hearing aid with private radio services, and cordless those telephones purchased between compatible for wireline telephones, as and secure telephones, every telephone January 1, 1985 through December 31, defined in § 68.316, for use by manufactured in the United States 1989, which are not required to be employees in their employment duty (other than for export) or imported for hearing aid compatible, as defined in outside common areas and outside the use in the United States after August 16, § 68.316, until January 1, 2005. offices of employees with hearing (i) Telephones, including headsets, 1989, must be hearing aid compatible, disabilities. made available to an employee with a (4) All credit card operated as defined in § 68.316. Every cordless hearing disability for use by that telephones, whether located on public telephone manufactured in the United employee in his or her employment property or in a semipublic location States (other than for export) or duty, shall, however, be hearing aid (e.g. drugstore, gas station, private club), imported into the United States after compatible, as defined in § 68.316. unless a hearing aid compatible (as August 16, 1991, must be hearing aid (ii) As of January 1, 2000 or January defined in § 68.316) coin-operated compatible, as defined in § 68.316. 1, 2005, whichever date is applicable, telephone providing similar services is (2) Unless otherwise stated and except there shall be a rebuttable presumption nearby and readily available. However, for telephones used with public mobile that all telephones located in the regardless of coin-operated telephone services, telephones used with private workplace are hearing aid compatible, availability, all credit card operated radio services and secure telephones, as defined in § 68.316. Any person who telephones must be made hearing aid- every telephone listed in § 68.112 must identifies a telephone as non-hearing compatible, as defined in § 68.316, be hearing aid compatible, as defined in aid-compatible, as defined in § 68.316, when replaced, or by May 1, 1991, § 68.316. may rebut this presumption. Such which ever comes sooner. * * * * * telephone must be replaced within (5) Telephones needed to signal life 4. A new Section 68.6 is added to read fifteen working days with a hearing aid threatening or emergency situations in as follows: compatible telephone, as defined in confined settings, including but not § 68.316, including, as of November 1, § 68.6 Telephones with volume control. limited to, rooms in hospitals, 1998, with volume control, as defined in residential health care facilities for As of November 1, 1998, all § 68.317. senior citizens, and convalescent telephones, including cordless (iii) Telephones, not including homes: telephones, as defined in § 15.3(j) of this headsets, except those headsets (i) A telephone that is hearing aid chapter, manufactured in the United furnished under paragraph (b)(3)(i) of compatible, as defined in § 68.316, is States (other than for export) or this section, that are purchased, or not required until: imported for use in the United States, replaced with newly acquired (A) November 1, 1997, for must have volume control in accordance telephones, must be: establishments with fifty or more beds, with § 68.317. Secure telephones, as (A) Hearing aid compatible, as unless replaced before that time; and defined by § 68.3, are exempt from this defined in § 68.316, after October 23, (B) November 1, 1998, for all other section, as are telephones used with 1996; and establishments with fewer than fifty public mobile services or private radio (B) Including, as of November 1, 1998, beds, unless replaced before that time. services. with volume control, as defined in (ii) Telephones that are purchased, or 5. Section 68.112 is amended by § 68.317. replaced with newly acquired revising paragraphs (b)(1), (b)(3), (b)(4), (iv) When a telephone under telephones, must be: (b)(5) and (c), and adding paragraph paragraph (b)(3)(iii) of this section is (A) Hearing aid compatible, as (b)(6), as follows: replaced with a telephone from defined in § 68.116, after October 23, inventory existing before October 23, 1996; § 68.112 Hearing aid compatibility. 1996, any person may make a bona fide (B) Including, as of November 1, 1998, * * * * * request that such telephone be hearing with volume control, as defined in (b) * * * aid compatible, as defined in § 68.316. § 68.317. (1) Telephones, except headsets, in If the replacement occurs as of (iii) Unless a telephone in a confined places where a person with a hearing November 1, 1998, the telephone must setting is replaced pursuant to disability might be isolated in an have volume control, as defined in paragraph (b)(5)(ii) of this section, a emergency, including, but not limited § 68.317. The telephone shall be hearing aid compatible telephone shall to, elevators, highways, and tunnels for provided within fifteen working days. not be required if: Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Rules and Regulations 42187

(A) A telephone is both purchased (c) Telephones frequently needed by Telecommunications Industry and maintained by a resident for use in the hearing impaired. Closed circuit Association: that resident’s room in the telephones, i.e., telephones which * * * * * establishment; or cannot directly access the public 9. A new Section 68.317 is added to (B) The confined setting has an switched network, such as telephones read as follows: alternative means of signalling life- located in lobbies of hotels or apartment threatening or emergency situations that buildings; telephones in stores which § 68.317 Hearing aid compatibility volume is available, working and monitored. are used by patrons to order control: technical standards. (6) Telephones in hotel and motel merchandise; telephones in public (a) An analog telephone complies guest rooms, and in any other transportation terminals which are used with the Commission’s volume control establishment open to the general public to call taxis or to reserve rental requirements if the telephone is for the purpose of overnight automobiles, need not be hearing aid equipped with a receive volume control accommodation for a fee. Such compatible, as defined in § 68.316, until that provides, through the receiver in telephones are required to be hearing replaced. the handset or headset of the telephone, aid compatible, as defined in § 68.316, 6. Section 68.224 is amended by 12 dB of gain minimum and up to 18 dB except that, for establishments with revising paragraph (a) to read as follows: of gain maximum, when measured in eighty or more guest rooms, the terms of Receive Objective Loudness telephones are not required to be § 68.224 Notice of non-hearing aid Rating (ROLR), as defined in paragraph hearing aid compatible, as defined in compatibility. 4.1.2 of ANSI/EIA–470–A–1987 § 68.316, until November 1, 1998; and * * * * * (Telephone Instruments With Loop for establishments with fewer than (a) Contain in a conspicuous location Signaling) . The 12 dB of gain minimum eighty guest rooms, the telephones are on the surface of its packaging a must be achieved without significant not required to be hearing aid statement that the telephone is not clipping of the test signal. The compatible, as defined in § 68.316, until hearing aid compatible, as is defined in telephone also shall comply with the November 1, 1999. §§ 68.4(a)(3) and 68.316, or if offered for upper and lower limits for ROLR given (i) Anytime after October 23, 1996, if in Table 4.4 of ANSI/EIA–470–A–1987 a hotel or motel room is renovated or sale without a surrounding package, shall be affixed with a written statement when the receive volume control is set newly constructed, or the telephone in to its normal unamplified level. a hotel or motel room is replaced or that the telephone is not hearing aid- substantially, internally repaired, the compatible, as defined in §§ 68.4(a)(3) Note to paragraph (a): Paragraph 4.1.2 of ANSI/EIA–470–A–1987 identifies several telephone in that room must be: and 68.316; and * * * * * characteristics related to the receive response (A) Hearing aid compatible, as of a telephone. It is only the normal defined in § 68.316, after October 23, 7. Section 68.300 is amended by unamplified ROLR level and the change in 1996; adding a new paragraph (c) to read as ROLR as a function of the volume control (B) Including, as of November 1, 1998, follows: setting that are relevant to the specification with volume control, as defined in of volume control as required by this section. § 68.317. § 68.300 Labelling requirements. (b) The ROLR of an analog telephone (ii) The telephones in at least twenty * * * * * percent of the guest rooms in a hotel or shall be determined over the frequency (c) As of April 1, 1997, all registered motel must be hearing aid compatible, range from 300 to 3300 HZ for short, telephones, including cordless as defined in § 68.316, as of April 1, average, and long loop conditions telephones, as defined in § 15.3(j) of this 1997. represented by 0, 2.7, and 4.6 km of 26 chapter, manufactured in the United (iii) Notwithstanding the AWG nonloaded cable, respectively. States (other than for export) or requirements of paragraph (b)(6) of this The specified length of cable will be imported for use in the United States, section, hotels and motels which use simulated by a complex impedance. that are hearing aid compatible, as telephones purchased during the period (See Figure A.) The input level to the defined in § 68.316, shall have the January 1, 1985 through December 31, cable simulator shall be ¥10 dB with letters ‘‘HAC’’ permanently affixed 1989 may provide telephones that are respect to 1 V open circuit from a 900 thereto. ‘‘Permanently affixed’’ shall be hearing aid compatible, as defined in ohm source. defined as in § 68.300(b)(5). Telephones § 68.316, in guest rooms according to (c) A digital telephone complies with used with public mobile services or the following schedule: the Commission’s volume control (A) The telephones in at least twenty private radio services, and secure requirements if the telephone is percent of the guest rooms in a hotel or telephones, as defined by § 68.3, are equipped with a receive volume control motel must be hearing aid compatible, exempt from this requirement. that provides, through the receiver of as defined in § 68.316, as of April 1, 8. Section 68.316 is amended by the handset or headset of the telephone, 1997; revising the section heading and the 12 dB of gain minimum and up to 18 dB (B) The telephones in at least twenty- introductory paragraph to read as of gain maximum, when measured in five percent of the guest rooms in a follows: terms of Receive Objective Loudness hotel or motel must be hearing aid Rating (ROLR), as defined in paragraph compatible, as defined in § 68.316, by § 68.316 Hearing aid compatibility 4.3.2 of ANSI/EIA/TIA–579–1991 magnetic field intensity requirements: (Acoustic-To-Digital and Digital-To- November 1, 1999; and technical standards. (C) The telephones in one-hundred Acoustic Transmission Requirements percent of the guest rooms in a hotel or A telephone handset is hearing aid for ISDN Terminals). The 12 dB of gain motel must be hearing aid compatible, compatible for the purposes of this minimum must be achieved without as defined in § 68.316, by January 1, section if it complies with the following significant clipping of the test signal. 2001 for establishments with eighty or standard, published by the The telephone also shall comply with more guest rooms, and by January 1, Telecommunications Industry the limits on the range for ROLR given 2004 for establishments with fewer than Association, copyright 1983, and in paragraph 4.3.2.2 of ANSI/EIA/TIA– eighty guest rooms. reproduced by permission of the 579–1991 when the receive volume 42188 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Rules and Regulations control is set to its normal unamplified control at its maximum volume setting. Institute (ANSI) Standard ANSI/EIA– level. Since ROLR is a loudness rating value 470–A–1987 and paragraph 4.3.2 of (d) The ROLR of a digital telephone expressed in dB of loss, more positive ANSI/EIA/TIA–579–1991 were shall be determined over the frequency values of ROLR represent lower receive approved by the Director of the Federal range from 300 to 3300 Hz using the levels. Therefore, the ROLR value Register in accordance with 5 U.S.C. method described in paragraph 4.3.2.1 determined for the maximum volume 552(a) and 1 CFR Part 51. Copies of of ANSI/EIA/TIA–579–1991. No control setting should be subtracted these publications may be purchased variation in loop conditions is required from that determined for the nominal from the American National Standards for this measurement since the receive volume control setting to determine Institute (ANSI), Sales Department, 11 level of a digital telephone is compliance with the gain requirement. West 42nd Street, 13th Floor, New York, independent of loop length. (f) The 18 dB of receive gain may be NY 10036, (212) 642–4900. Copies also (e) The ROLR for either an analog or exceeded provided that the amplified may be inspected during normal digital telephone shall first be receive capability automatically resets business hours at the following determined with the receive volume to nominal gain when the telephone is locations: Federal Communications control at its normal unamplified level. caused to pass through a proper on-hook Commission, 2000 M Street, N.W., The minimum volume control setting transition in order to minimize the Public Reference Room, Room 220, shall be used for this measurement likelihood of damage to individuals Washington, D.C. 20554; and Office of unless the manufacturer identifies a with normal hearing. the Federal Register, 800 N. Capitol different setting for the nominal volume (g) These incorporations by reference Street, N.W., suite 700, Washington, level. The ROLR shall then be of paragraph 4.1.2 (including Table 4.4) D.C. determined with the receive volume of American National Standards BILLING CODE 6712±01±P Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Rules and Regulations 42189

[FR Doc. 96–20705 Filed 8–13–96; 8:45 am] Channel 270C3 at Monticello, Florida, at Transcription Services, Inc., 2100 M BILLING CODE 6712±01±C coordinates 30–25–05 and 83–50–18, Street, NW., Suite 140, Washington, DC substituting Channel 221A for Channel 20037, (202) 857–3800. 288A at Perry, Florida, at coordinates List of Subjects in 47 CFR Part 73 47 CFR Part 73 30–06–27 and 83–34–00, and [MM Docket No. 95±82; RM±8630 and RM± substituting Channel 266A for Channel Radio broadcasting. 267A at Springfield, Florida, at 8743] Part 73 of title 47 of the Code of coordinates 30–12–12 and 85–36–57. Federal Regulations is amended as With this action this proceeding is Radio Broadcasting Services; follows: Monticello, Perry, Quincy, and terminated. Springfield, FL EFFECTIVE DATE: September 16, 1996. PART 73Ð[AMENDED] FOR FURTHER INFORMATION CONTACT: AGENCY: Federal Communications 1. The authority citation for part 73 Kathleen Scheuerle, Mass Media Commission. continues to read as follows: Bureau, (202) 418–2180. ACTION: Final rule. Authority: Secs. 303, 48 Stat., as amended, SUPPLEMENTARY INFORMATION: This is a 1082; 47 U.S.C. 154, as amended. SUMMARY: This document substitutes synopsis of the Commission’s Report Channel 268C1 for Channel 268C2 at and Order, MM Docket No. 95–82, § 73.202 [Amended] Quincy, Florida, and modifies the adopted July 26, 1996, and released 2. Section 73.202(b), the Table of FM license for Station WXSR(FM) to specify August 2, 1996. The full text of this Allotments under Florida, is amended operation on Channel 268C1, in Commission decision is available for by removing Channel 268C2 and adding response to a counterproposal filed by inspection and copying during normal Channel 268C1 at Quincy, by removing Great South Broadcasting, Inc. See 60 business hours in the Commission’s Channel 270C3 and adding Channel FR 32934, June 26, 1995. The Reference Center (Room 239), 1919 M 289C3 at Monticello, by removing coordinates for Channel 268C1 at Street, NW., Washington, DC. The Channel 288A and adding Channel Quincy are 30–10–22 and 84–26–52. To complete text of this decision may also 221A at Perry and by removing Channel accommodate the upgrade at Quincy, be purchased from the Commission’s 267A and adding Channel 266A at we are substituting Channel 289C3 for copy contractors, International Springfield. 42190 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Rules and Regulations

Federal Communications Commission. § 73.202 [Amended] DEPARTMENT OF TRANSPORTATION John A. Karousos, 2. Section 73.202(b), the Table of FM Chief, Allocations Branch, Policy and Rules Allotments under Nevada, is amended Surface Transportation Board Division, Mass Media Bureau. by removing Carson City, Channel 234C. 49 CFR Part 1002 [FR Doc. 96–20081 Filed 8–13–96; 8:45 am] 3. Section 73.202(b), the Table of FM BILLING CODE 6712±01±F Allotments under Nevada, is amended [STB Ex Parte No. 542] by adding Sun Valley, Channel 233C2. 4. Section 73.202(b), the FM Table of Regulations Governing Fees for 47 CFR Part 73 Allotments under California, is Services Performed in Connection amended by adding Fair Oaks, Channel With Licensing and Related ServicesÐ [MM Docket 90±189; RM±6904, RM±7114, RM±7186, RM±7415, RM±7298] 234B1. 1996 Update Federal Communications Commission. AGENCY: Surface Transportation Board. Radio Broadcasting Services; John A Karousos, ACTION: Final rules. Farmington, Grass Valley, Jackson, Chief, Allocations Branch, Policy and Rules Linden, Placerville, and Fair Oaks, CA, Division, Mass Media Bureau. SUMMARY: In compliance with its fee Carson City and Sun Valley, NV [FR Doc. 96–20646 Filed 8–13–96; 8:45 am] update regulations, the Surface Transportation Board (Board) adopts its AGENCY: Federal Communications BILLING CODE 6712±01±F Commission. 1996 User Fee Update and revises its fee schedule at this time to recover the costs ACTION: Final rule. GENERAL SERVICES associated with providing services to SUMMARY: This document reallots ADMINISTRATION the public. Channel 234C from Carson City, EFFECTIVE DATE: September 16, 1996. Nevada, to Fair Oaks, California, as 48 CFR Parts 506, 547 and 552 FOR FURTHER INFORMATION CONTACT: Channel 234B1. In doing so, it also [APD 2800.12A, CHGE 72] Kathleen M. King, (202) 927–5249 or modifies the license of Station KIZS, David T. Groves, (202) 927–6395. [TDD Channel 234C, Carson City, to specify RIN 3090±AF97 for the hearing impaired: (202) 927– operation on Channel 234B1 at Fair 5721.] Oaks. This action also makes possible General Services Administration Acquisition Regulation; SUPPLEMENTARY INFORMATION: The the allotment of Channel 233C2 to Sun Board’s regulations in 49 CFR 1002.3 Valley, Nevada. The reference Implementation of FAC 90±39 and Miscellaneous Changes require the Board to update its user fee coordinates for Channel 234B1 at Fair schedule annually. By notice of Oaks, California, are 38–40–22 and 121– AGENCY: Office of Acquisition Policy, proposed rulemaking published on 19–47. The reference coordinates for GSA. April 5, 1996, at 61 FR 15208, the Board Channel 233C2 at Sun Valley, Nevada, ACTION: Correction to final regulation. requested comments on its 1996 are 39–40–3 and 119–30–21. proposed fee schedule. Upon reviewing EFFECTIVE DATE: August 29, 1996. SUMMARY: This document corrects the the comments, the Board is adopting the FOR FURTHER INFORMATION CONTACT: effective date of final regulation (APD proposed fee schedule with the Robert Hayne, Mass Media Bureau, 2800.12A, CHGE 72), which was following modifications: (1) Fee Item (202) 418–2177. published Friday, July 26, 1996 (61 FR (27)—Trails use requests is established 39088). The regulation related to the SUPPLEMENTARY INFORMATION: This is a at $150; (2) Fee Item (47)—National approval levels for the justification of synopsis of the Commission’s Second Railroad Passenger Corporation other than full and open competition in Report and Order in MM Docket No.90– conveyance proceeding is established at part 506 and made editorial changes in 189, adopted July 5, 1996, and released $150; (3) Fee Item (48)—National parts 547 and 552. July 12, 1996. The full text of this Railroad Passenger Corporation Commission decision is available for EFFECTIVE DATE: August 19, 1996. compensation proceeding is established inspection and copying during normal FOR FURTHER INFORMATION CONTACT: at $150; (4) Fee Item (56)(i)—Formal business hours in the FCC Reference Ed McAndrew, Office of GSA complaints filed under the coal rate Center (Room 239), 1919 M street, NW., Acquisition Policy (202) 501–1224. guidelines is tentatively set at $23,300, Washington, DC. The complete text of SUPPLEMENTARY INFORMATION: Fee Item (56)(ii)—All other formal this decision may also be purchased complaints is tentatively set at $2,300; 1 from the Commission’s copy contractor, Background (5) Fee Item (58)(i)—A petition for International Transcription Service, As published, the effective date of the declaratory order involving an existing Inc., (202) 857–3800, 1919 M Street, regulation is incorrect. rate or practice remains at $1,000, and NW., Room 246, or 2100 M Street, NW., Accordingly, the publication on July Fee Item (58)(ii)—All other petitions for Washington, DC 20037. 26, 1996, of the final regulation (APD declaratory order remains at $1,400; (6) 2800.12A CHGE 72), which was the Fee Item (61)—Appeals to Board List of Subjects in 47 CFR Part 73 subject of FR Doc. 96–18987, is decisions and petitions to revoke an Radio broadcasting. corrected as follows: On page 39088, exemption is established at $150; and Part 73 of title 47 of the Code of second column, the effective date is (7) Fee Item (62)—Motor carrier Federal Regulations is amended as corrected to read ‘‘EFFECTIVE DATE: undercharge proceeding is established follows: August 19, 1996.’’ at $150. In addition, Fee Item (12)—Petition Dated: August 8, 1996. PART 73Ð[AMENDED] 1 Fee items 56(i) and 56(ii) are currently the Ida M. Ustad, subject of legislative debate. Therefore, these items 1. The authority citation for part 73 Deputy Associate Administrator for are being set tentatively, but will not take effect at continues to read as follows: Acquisition Policy. this time. The Board will issue a further decision addressing these items after the legislative debate is Authority: Secs. 303, 48 Stat., as amended, [FR Doc. 96–20670 Filed 8–13–96; 8:45 am] concluded. In the meantime, they will remain at 1082; 47 U.S.C. 154, as amended. BILLING CODE 6820±61±M $1,000 each in the Board’s fee schedule. Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Rules and Regulations 42191 for exemption involving construction of § 1002.1 [Amended] Grade Rate a rail line is modified so that the 2. Section 1002.1 is amended as $41,700 fee also applies to construction follows: GS±10 ...... 18.33 applications. a. In the introductory paragraph GS±11 ...... 20.14 We note that in Class Exemption For remove the words ‘‘Interstate Commerce GS±12 ...... 24.14 Acquisition or Operation of Rail Lines Commission’’ and add in their place the GS±13 ...... 28.71 GS±14 ...... 33.93 By Class III Rail Carriers Under 49 words ‘‘Surface Transportation Board’’. GS±15 and over ...... 39.91 U.S.C. 10902, STB Ex Parte No. 529, b. In paragraph (e)(2) remove the word published in the Federal Register on ‘‘Commission’s’’ and add in its place the * * * * * June 24, 1996 at 61 FR 32355, the Board word ‘‘Board’s’’; remove the words adopted Fee Item 36, Notice of ‘‘Section of Systems Development, § 1002.2 [Amended] exemption under 49 CFR 1150.41– Interstate Commerce Commission,’’ and 3. Section 1002.2 is amended as 1150.45, with a fee of $950. To be add in their place the words ‘‘System follows: consistent with the revisions that are Services Branch, Surface Transportation a. In paragraph (a)(2) introductory text being made to the fee schedule in this Board,’’. remove the word ‘‘Commission’s’’ and proceeding, that fee item will be c. In paragraph (f)(11) remove the add in its place the word ‘‘Board’s’’. renumbered as Fee Item 14(ii) and the word ‘‘Commission’s’’ and add in its b. In paragraph (a)(2)(ii) after the fee item [proposed Fee Item 14(ii)] for place the word ‘‘Board’s’’. words ‘‘Debt Collection Act’’ add the petition for exemption under 49 U.S.C. d. In the concluding text of paragraph words ‘‘of 1982’’, remove the word 10502 relating to an exemption from the (f)(14) remove the phrase ‘‘ICC’s ‘‘Commission’s’’ and add in its place the provisions of 49 U.S.C. 10902 will be Freedom of Information Office, 12th and word ‘‘Board’s’’. renumbered as Fee Item 14(iii). Constitution Avenue N.W. Room 3132, c. In paragraph (a)(2)(iii) remove the The Board also adopts the proposed Washington, DC 20423.’’ and add in words ‘‘room 1330, Interstate Commerce modifications to update these their place the words ‘‘Surface Commission, Washington, DC 20423:’’ regulations to reflect the recent Transportation Board’s Freedom of and add in their place the words enactment of the ICC Termination Act of Information Office, Washington, DC ‘‘Surface Transportation Board, 1995, Pub. L. No. 104–88, 109 Stat. 803. 20423.’’. Washington, DC:’’. The Board certifies that the fee e. In paragraph (g) remove the words d. In paragraph (a)(3) remove the changes adopted here will not have a ‘‘Interstate Commerce Commission,’’ words ‘‘Interstate Commerce significant economic impact on a and in their place add the words Commission’’ and add in their place the substantial number of small entities ‘‘Surface Transportation Board,’’. words ‘‘Surface Transportation Board’’. because the modifications made in these f. In paragraph (h) remove the word e. In paragraphs (b), (c), and (d)(4) rules and the Board’s regulations in 49 ‘‘Commission’s’’ and in its place add the remove the word ‘‘Commission’’ CFR 1002.2(e) provide for waiver of word ‘‘Board’s’’; remove the words wherever it appears and add in its place filing fees for those entities which can ‘‘Interstate Commerce Commission,’’ the word ‘‘Board’’. make the required showing of financial and in their place add the words f. In paragraph (e), the heading, hardship. ‘‘Surface Transportation Board,’’ remove the first ‘‘of’’ and add in its Additional information is contained g. Paragraphs (b), (e)(1) and the chart place the word ‘‘or’’. Also, in the in the Board’s decision. To obtain a in paragraph (f)(6) are revised to read as introductory text, paragraphs (e)(2), copy of the full decision, write, call, or follow: (e)(2)(i), and in the heading of paragraph pick up in person from DC News & Data, (e)(2)(iii) remove the word Inc., Room 2229, 1201 Constitution Ave. § 1002.1 Fees for records search, review, ‘‘Commission’’ and add in its place the copying, certification, and related services. NW., Washington, DC 20423. word ‘‘Board’’. Telephone: (202) 289–4357/4359. * * * * * g. In paragraphs (g)(1), (g)(1)(ii), [Assistance for the hearing impaired is (b) Service involved in examination of (g)(1)(iii) and (g)(2) remove the word available through TDD services (202) tariffs or schedules for preparation of ‘‘Commission’’ wherever it appears and 927–5721.] certified copies of tariffs or schedules or add in its place the word ‘‘Board’’. extracts therefrom at the rate of $24.00 h. In § 1002.2, paragraphs (a)(1), (d), List of Subjects in 49 CFR Part 1002 per hour. and (f) are revised to read as follows: Administrative practice and * * * * * procedure, Common carriers, Freedom (e) * * * § 1002.2 Filing fees. of information, User fees. (1) A fee of $42.00 per hour for (a) Manner of payment. (1) Except as specified in this section, all filing fees Decided: August 2, 1996. professional staff time will be charged when it is required to fulfill a request will be payable at the time and place the By the Board, Chairman Morgan, Vice application, petition, notice, tariff, Chairman Simmons, and Commissioner for ADP data. Owen. * * * * * contract summary, or other document is Vernon A. Williams, (f) * * * tendered for filing. The filing fee for tariffs, including schedules, and Secretary. (6) * * * contracts summaries including For the reasons set forth in the Grade Rate supplements (Item 78) may be charged preamble, title 49, chapter X, part 1002, to tariff filing fee accounts established of the Code of Federal Regulations is GS±1 ...... $7.13 by the Board in accordance with amended as follows: GS±2 ...... 7.76 paragraph (a)(2) of this section. GS±3 ...... 8.75 PART 1002ÐFEES GS±4 ...... 9.82 * * * * * GS±5 ...... 10.99 (d) Related or consolidated 1. The authority citation for part 1002 GS±6 ...... 12.25 proceedings. (1) Separate fees need not continues to read as follows: GS±7 ...... 13.61 be paid for related applications filed by Authority: 5 U.S.C. 552(a)(4)(A) and 553; GS±8 ...... 15.07 the same applicant which would be the 31 U.S.C. 9701 and 49 U.S.C. 721(a). GS±9 ...... $16.65 subject of one proceeding. 42192 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Rules and Regulations

(2) A separate fee will be assessed for is related to a corresponding transfer to be related and refund the filing fee if, the filing of an application for proceeding as provided for in paragraph in its judgment, they embrace two or temporary authority to operate a motor (f)(2) of this section. more severable matters which should be carrier of passengers as provided for in (3) The Board may reject concurrently the subject of separate proceedings. paragraph (f)(5) of this section filed applications, petitions, notices, * * * * * regardless of whether such application contracts, or other documents asserted (f) Schedule of filing fees.

Type of proceeding Fee

Part I: Non-Rail Applications or Proceedings to Enter Upon a Particular Financial Transaction or Joint Arrangement: (1) An application for the pooling or division of traffic ...... $2,400. (2) An application involving the purchase, lease, consolidation, merger, or acquisition of control of a motor carrier of $1,100. passengers under 49 U.S.C. 14303. (3) An application for approval of a non-rail rate association agreement. 49 U.S.C. 13706 ...... $15,400. (4) An application for approval of an amendment to a non-rail rate association agreement: (i) Significant amendment ...... $2,500. (ii) Minor amendment ...... $50. (5) An application for temporary authority to operate a motor carrier of passengers. 49 U.S.C. 14303(i) ...... $250. (6)±(10) [Reserved] Part II: Rail Licensing Proceedings other than Abandonment or Discontinuance Proceedings: (11) (i) An application for a certificate authorizing the extension, acquisition, or operation of lines of railroad. 49 $4,000. U.S.C. 10901. (ii) Notice of exemption under 49 CFR 1150.31±1150.35 ...... $1,000. (iii) Petition for exemption under 49 U.S.C. 10502 (except petitions involving construction of a rail line) ...... $7,000. (12) An application or a petition for exemption under 49 U.S.C. 10502 involving the construction of a rail line ...... $41,700. (13) A Feeder Line Development Program application filed under 49 U.S.C. 10907(b)(1)(A)(i) or 10907(b)(1)(A)(ii) ..... $2,600. (14) (i) An application of a class II or class III carrier to acquire an extended or additional rail line under 49 U.S.C. $3,400 10902.. (ii) Notice of exemption under 49 CFR 1150.41±1150.45 ...... $950. (iii) Petition for exemption under 49 U.S.C. 10502 relating to an exemption from the provisions of 49 U.S.C. $3,700. 10902. (15) A notice of a modified certificate of public convenience and necessity under 49 CFR 1150.21±1150.24 ...... $950. (16)±(20) [Reserved] Part III: Rail Abandonment or Discontinuance of Transportation Services Proceedings: (21) (i) An application for authority to abandon all or a portion of a line of railroad or discontinue operation thereof $12,400. filed by a railroad (except applications filed by Consolidated Rail Corporation pursuant to the Northeast Rail Serv- ice Act [Subtitle E of Title XI of Pub. L. 97±35], bankrupt railroads, or exempt abandonments). (ii) Notice of an exempt abandonment or discontinuance under 49 CFR 1152.50 ...... $2,000. (iii) A petition for exemption under 49 U.S.C. 10502 ...... $3,500. (22) An application for authority to abandon all or a portion of a line of a railroad or operation thereof filed by Consoli- $250. dated Rail Corporation pursuant to Northeast Rail Service Act. (23) Abandonments filed by bankrupt railroads ...... $1,000. (24) A request for waiver of filing requirements for abandonment application proceedings ...... $1,000. (25) An offer of financial assistance under 49 U.S.C. 10904 relating to the purchase of or subsidy for a rail line pro- $900. posed for abandonment. (26) A request to set terms and conditions for the sale of or subsidy for a rail line proposed to be abandoned ...... $12,700. (27) A request for a trail use condition in an abandonment proceeding under 16 U.S.C. 1247(d) ...... $150. (28)±(35) [Reserved] Part IV: Rail Applications to Enter Upon a Particular Financial Transaction or Joint Arrangement: (36) An application for use of terminal facilities or other applications under 49 U.S.C. 11102 ...... $10,600. (37) An application for the pooling or division of traffic. 49 U.S.C. 11322 ...... $5,700. (38) An application for two or more carriers to consolidate or merge their properties or franchises (or a part thereof) into one corporation for ownership, management, and operation of the properties previously in separate ownership. 49 U.S.C. 11324: (i) Major transaction ...... $830,500. (ii) Significant transaction ...... $166,100. (iii) Minor transaction ...... $3,400. (iv) Notice of an exempt transaction under 49 CFR 1180.2(d) ...... $950. (v) Responsive application ...... $3,400. (vi) Petition for exemption under 49 U.S.C. 10502 ...... $5,200. (39) An application of a non-carrier to acquire control of two or more carriers through ownership of stock or other- wise. 49 U.S.C. 11324: (i) Major transaction ...... $830,500. (ii) Significant transaction ...... $166,100. (iii) Minor transaction ...... $3,400. (iv) A notice of an exempt transaction under 49 CFR 1180.2(d) ...... $750. (v) Responsive application ...... $3,400. (vi) Petition for exemption under 49 U.S.C. 10502 ...... $5,200. (40) An application to acquire trackage rights over, joint ownership in, or joint use of any railroad lines owned and op- erated by any other carrier and terminals incidental thereto. 49 U.S.C. 11324: (i) Major transaction ...... $830,500. (ii) Significant transaction ...... $166,100. (iii) Minor transaction ...... $3,400. (iv) Notice of an exempt transaction under 49 CFR 1180.2(d) ...... $650. (v) Responsive application ...... $3,400. Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Rules and Regulations 42193

Type of proceeding Fee

(vi) Petition for exemption under 49 U.S.C. 10502 ...... $5,200. (41) An application of a carrier or carriers to purchase, lease, or contract to operate the properties of another, or to acquire control of another by purchase of stock or otherwise. 49 U.S.C. 11324: (i) Major transaction ...... $830,500. (ii) Significant transaction ...... $166,100. (iii) Minor transaction ...... $3,400. (iv) Notice of an exempt transaction under 49 CFR 1180.2(d) ...... $800. (v) Responsive application ...... $3,400. (vi) Petition for exemption under 49 U.S.C. 10502 ...... $3,700. (42) Notice of a joint project involving relocation of a rail line under 49 CFR 1180.2(d)(5) ...... $1,300. (43) An application for approval of a rail rate association agreement. 49 U.S.C. 10706 ...... $39,000. (44) An application for approval of an amendment to a rail rate association agreement. 49 U.S.C. 10706: (i) Significant amendment ...... $7,200. (ii) Minor amendment ...... $50 (45) An application for authority to hold a position as officer or director under 49 U.S.C. 11328 ...... $400. (46) A petition for exemption under 49 U.S.C. 10502 (other than a rulemaking) filed by rail carrier not otherwise cov- $4,400. ered. (47) National Railroad Passenger Corporation (Amtrak) conveyance proceeding under 45 U.S.C. 562 ...... $150. (48) National Railroad Passenger Corporation (Amtrak) compensation proceeding under Section 402(a) of the Rail $150. PassengerService Act. (49)±(55) [Reserved] Part V: Formal Proceedings: (56) A formal complaint alleging unlawful rates or practices of rail carriers, motor carriers of passengers or motor car- riers of household goods: (i) A formal complaint filed under the coal rate guidelines (Stand-Alone Cost Methodology) alleging unlawful rates $1,000. and/or practices of rail carriers under 49 U.S.C. 10704(c)(1). (ii) All other formal complaints ...... $1,000. (57) A complaint seeking or a petition requesting institution of an investigation seeking the prescription or division of $4,900. joint rates, or charges. 49 U.S.C. 10705. (58) A petition for declaratory order: (i) A petition for declaratory order involving a dispute over an existing rate or practice which is comparable to a $1,000. complaint proceeding. (ii) All other petitions for declaratory order ...... $1,400. (59) An application for shipper antitrust immunity. 49 U.S.C. 10706(a)(5)(A) ...... $3,900. (60) Labor arbitration proceedings ...... $7,600. (61) Appeals to a Surface Transportation Board decision and petitions to revoke an exemption pursuant to 49 U.S.C. $150. 10502(d). (62) Motor carrier undercharge proceedings ...... $150. (63)±(75) [Reserved] Part VI: Informal Proceedings: (76) An application for authority to establish released value rates or ratings for motor carriers and freight forwarders $650. of household goods under 49 U.S.C. 14706. (77) An application for special permission for short notice or the waiver of other tariff publishing requirements ...... $70. (78) (i) The filing of tariffs, including supplements, or contract summaries ...... $1 per page. ($13 minimum charge). (ii) Tariffs transmitted by fax ...... $1 per page. (79) Special docket applications from rail and water carriers: (i) Applications involving $25,000 or less ...... $40. (ii) Applications involving over $25,000 ...... $80. (80) Informal complaint about rail rate applications ...... $300. (81) Tariff reconciliation petitions from motor common carriers: (i) Petitions involving $25,000 or less ...... $40. (ii) Petitions involving over $25,000 ...... $80. (82) Request for a determination of the applicability or reasonableness of motor carrier rates under 49 U.S.C. $100. 13710(a) (2) and (3). (83) Filing of documents for recordation. 49 U.S.C. 11301 and 49 CFR 1177.3(c) ...... $22 per document. (84) Informal opinions about rate applications (all modes) ...... $100. (85) A railroad accounting interpretation ...... $600. (86) An operational interpretation ...... $800. (87)±(95) [Reserved] Part VII: Services: (96) Messenger delivery of decision to a railroad carrier's Washington, DC, agent ...... $17 per delivery. (97) Request for service or pleading list for proceedings ...... $13 per list. (98) (i) Processing the paperwork related to a request for the Carload Waybill Sample to be used in a Surface Trans- $150. portation Board or State proceeding that does not require a Federal Register notice. (ii) Processing the paperwork related to a request for Carload Waybill Sample to be used for reasons other than $350. a Surface Transportation Board or State proceeding that requires a Federal Register notice. (99) (i) Application fee for the Surface Transportation Board's Practitioners' Exam ...... $100 (ii) Practitioners' Exam Information Package ...... $25. (100) Uniform Railroad Costing System (URCS) software and information: (i) Initial PC version URCS Phase III software program and manual ...... $50. (ii) Updated URCS PC version Phase III cost file, if computer disk provided by requestor ...... $10. (iii) Updated URCS PC version Phase III cost file, if computer disk provided by the Board ...... $20. (iv) Public requests for Source Codes to the PC version URCS Phase III ...... $500. 42194 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Rules and Regulations

Type of proceeding Fee

(v) PC version or mainframe version URCS Phase II ...... $400. (vi) PC version or mainframe version Updated Phase II databases ...... $50. (vii) Public requests for Source Codes to PC version URCS Phase II ...... $1,500. (101) Carload Waybill Sample data on recordable compact disk (R±CD): (i) Requests for Public Use File on R±CDÐFirst Year ...... $450. (ii) Requests for Public Use File on R±CD Each Additional Year ...... $150. (iii) WaybillÐSurface Transportation Board or State proceedings on R±CDÐFirst Year ...... $650. (iv) WaybillÐSurface Transportation Board or State proceedings on R±CDÐSecond Year on same R±CD ...... $450. (v) WaybillÐSurface Transportation Board of State proceeding on R±CDÐSecond Year on different R±CD ...... $500. (vi) User Guide for latest available Carload Waybill Sample ...... $50.

§ 1002.3 [Amended] phrase ‘‘the Commission’s FY 1983– d. In paragraph (d)(3)(ii) remove the 4. Section § 1002.3 is amended as 1984 User Fee Cost Study.’’ and add in word ‘‘Commission’’ wherever it follows: its place the phrase ‘‘the cost study set appears and add in its place the word a. In paragraph (a) remove the word forth in Revision of Fees For Services, 1 ‘‘Board’’. ‘‘Commission’’ and add in its place the I.C.C.2d 60 (1984) or subsequent cost e. In paragraph (d)(4) add a period word ‘‘Board’’. studies.’’. after the words ‘‘Federal Register’’ and remove the remainder of the sentence. b. In paragraph (d)(1) remove the c. In paragraph (d)(3)(i) remove the word ‘‘Commission’’ and add in its words ‘‘and Bureaus’’ following the [FR Doc. 96–20647 Filed 8–13–96; 8:45 am] place the word ‘‘Board’’; remove the words ‘‘the Offices’’. 42195

Proposed Rules Federal Register Vol. 61, No. 158

Wednesday, August 14, 1996

This section of the FEDERAL REGISTER 98124–2207. This information may be override/jettison pumps on Boeing contains notices to the public of the proposed examined at the FAA, Transport Model 747 series airplanes. As a result issuance of rules and regulations. The Airplane Directorate, 1601 Lind of these incidents, the fuel pumps were purpose of these notices is to give interested Avenue, SW., Renton, Washington. removed from these airplanes. These persons an opportunity to participate in the pumps had accumulated between rule making prior to the adoption of the final FOR FURTHER INFORMATION CONTACT: G. rules. Michael Collins, Aerospace Engineer, 34,000 to 67,000 total hours since new Seattle Aircraft Certification Office, or since overhaul. Propulsion Branch, ANM–140S, FAA, Analyses of the removed pumps DEPARTMENT OF TRANSPORTATION Transport Airplane Directorate, 1601 revealed that moisture ingression Lind Avenue, SW., Renton, Washington around the potting of the wire terminal Federal Aviation Administration 98055–4056; telephone (206) 227–2689; assembly can cause corrosion in the fax (206) 227–1181. wire terminal assembly. (Variation in 14 CFR Part 39 SUPPLEMENTARY INFORMATION: the manufacturing of the connectors and [Docket No. 96±NM±57±AD] exposure of an airplane to different Comments Invited RIN 2120±AA64 operational environments can affect the Interested persons are invited to time required to form the corrosion.) Airworthiness Directives; Boeing participate in the making of the Such corrosion can lead to electrical Model 747 and 757 Series Airplanes proposed rule by submitting such arcing between the power pins and the written data, views, or arguments as pump case. The arcing could then cause AGENCY: Federal Aviation they may desire. Communications shall deterioration of the terminal pins and Administration, DOT. identify the Rules Docket number and thermal expansion of the material inside ACTION: Notice of proposed rulemaking be submitted in triplicate to the address the cap. Thermal expansion can cause (NPRM). specified above. All communications failure of the cap attachment flange or attaching screws, and, consequently SUMMARY: This document proposes the received on or before the closing date lead to a fuel leak. A high current adoption of a new airworthiness for comments, specified above, will be during arcing also could melt a hole directive (AD) that is applicable to all considered before taking action on the through the end case and connector of Boeing Model 747 and 757 series proposed rule. The proposals contained the fuel pump, which also could result airplanes. This proposal would require in this notice may be changed in light in a fuel leak. repetitive visual inspections to detect of the comments received. discrepancies of the wire terminal Comments are specifically invited on Fuel leakage at the fuel boost and assembly, electrical connector, and wire the overall regulatory, economic, override/jettison pumps, if not detected insulation on the fuel pump; and environmental, and energy aspects of and corrected, could result in a fire at replacement of the fuel pump with a the proposed rule. All comments the location of the affected fuel pump. submitted will be available, both before new fuel pump, if necessary. The The fuel boost and override/jettison and after the closing date for comments, proposed AD also would require pumps of Model 747 series airplanes are in the Rules Docket for examination by repetitive insulation resistance tests of similar in design to those of Model 757 interested persons. A report the fuel pump wiring. This proposal is series airplanes. Therefore, the FAA has summarizing each FAA-public contact prompted by reports of fuel leaks at the determined that Model 757 series concerned with the substance of this fuel boost and override/jettison pumps airplanes may be subject to the same proposal will be filed in the Rules due to corrosion. The actions specified fuel leakage problem. by the proposed AD are intended to Docket. Commenters wishing the FAA to Explanation of Relevant Service prevent such a fuel leakage, which acknowledge receipt of their comments Information could result in a fire at the location of submitted in response to this notice the affected fuel pump. must submit a self-addressed, stamped The FAA has reviewed and approved DATES: Comments must be received by postcard on which the following Boeing Service Bulletin 747–28A2194, September 16, 1996. statement is made: ‘‘Comments to Revision 1, dated January 18, 1996 (for ADDRESSES: Submit comments in Docket Number 96–NM–57–AD.’’ The Model 747 series airplanes), and Boeing triplicate to the Federal Aviation postcard will be date stamped and Service Bulletin 757–28A0043, Revision Administration (FAA), Transport returned to the commenter. 1, dated January 18, 1996 (for Model 757 Airplane Directorate, ANM–103, series airplanes). These service bulletins Attention: Rules Docket No. 96–NM– Availability of NPRMs describe procedures for repetitive visual 57–AD, 1601 Lind Avenue, SW., Any person may obtain a copy of this inspections to detect discrepancies (i.e., Renton, Washington 98055–4056. NPRM by submitting a request to the fuel leak, heat discoloration, and Comments may be inspected at this FAA, Transport Airplane Directorate, damage) of the wire terminal assembly, location between 9:00 a.m. and 3:00 ANM–103, Attention: Rules Docket No. electrical connector, and wire insulation p.m., Monday through Friday, except 96–NM–57–AD, 1601 Lind Avenue, on the fuel pump; and replacement of Federal holidays. SW., Renton, Washington 98055–4056. the fuel pump with a new fuel pump, The service information referenced in if necessary. These service bulletins also the proposed rule may be obtained from Discussion describe procedures for repetitive Boeing Commercial Airplane Group, The FAA has received several reports insulation resistance tests of the fuel P.O. Box 3707, Seattle, Washington of fuel leaks at the fuel boost and pump wiring. 42196 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Proposed Rules

Explanation of Requirements of 12612, it is determined that this result in a fire at the location of the affected Proposed Rule proposal would not have sufficient fuel pump, accomplish the following: (a) Within 120 days after the effective date Since an unsafe condition has been federalism implications to warrant the preparation of a Federalism Assessment. of this AD, perform a visual inspection to identified that is likely to exist or detect discrepancies (i.e., fuel leak, heat develop on other products of this same For the reasons discussed above, I discoloration, and damage) of the wire type design, the proposed AD would certify that this proposed regulation (1) terminal assembly, electrical connector, and require a visual inspection to detect is not a ‘‘significant regulatory action’’ wire insulation on the fuel pump, in discrepancies of the wire terminal under Executive Order 12866; (2) is not accordance with Boeing Service Bulletin assembly, electrical connector, and wire a ‘‘significant rule’’ under the DOT 747–28A2194, Revision 1, dated January 18, insulation on the fuel pump; and Regulatory Policies and Procedures (44 1996 (for Model 747 series airplanes), or FR 11034, February 26, 1979); and (3) if Boeing Service Bulletin 757–28A0043, replacement of the fuel pump with a Revision 1, dated January 18, 1996 (for Model new fuel pump, if necessary. The promulgated, will not have a significant 757 series airplanes), as applicable. proposed AD also would require economic impact, positive or negative, (1) If no discrepancy is detected, prior to repetitive insulation resistance tests of on a substantial number of small entities further flight, perform an insulation the fuel pump wiring. The actions under the criteria of the Regulatory resistance test of the fuel pump wiring, in would be required to be accomplished Flexibility Act. A copy of the draft accordance with the Accomplishment in accordance with the service bulletins regulatory evaluation prepared for this Instructions of the applicable service described previously. action is contained in the Rules Docket. bulletin. A copy of it may be obtained by (i) If any resistance measurement is less Interim Action contacting the Rules Docket at the than or equal to 1 megohms, prior to further This is considered to be interim flight, replace the fuel pump with a new fuel location provided under the caption pump, in accordance with the applicable action until final action is identified, at ADDRESSES. service bulletin. Prior to further flight which time the FAA may consider List of Subjects in 14 CFR Part 39 following accomplishment of the further rulemaking. replacement, repeat the insulation resistance Cost Impact Air transportation, Aircraft, Aviation test. safety, Safety. (ii) If any resistance measurement is greater There are approximately 1,084 Model than 1 megohms but less than 5 megohms: 747 series airplanes and 716 Model 757 The Proposed Amendment Repeat the visual inspection and insulation series airplanes of the affected design in Accordingly, pursuant to the resistance test within 500 hours, or replace the fuel pump with a new fuel pump. Prior the worldwide fleet. Of these airplanes, authority delegated to me by the 242 Model 747 series airplanes and 462 to further flight following accomplishment of Administrator, the Federal Aviation the replacement, repeat the insulation Model 757 series airplanes are of U.S. Administration proposes to amend part registry and would be affected by this resistance test. 39 of the Federal Aviation Regulations (iii) If any resistance measurement is proposed AD. (14 CFR part 39) as follows: greater than or equal to 5 megohms, repeat For 242 Model 747 series airplanes, it the visual inspection and insulation would take approximately 18 work PART 39ÐAIRWORTHINESS resistance test within 5,000 hours or 18 hours per airplane to accomplish the DIRECTIVES months, whichever occur first. proposed actions, at an average labor (2) If any discrepancy is detected, prior to rate of $60 per work hour. Based on 1. The authority citation for part 39 further flight, replace the fuel pump with a these figures, the cost impact of the continues to read as follows: new fuel pump, in accordance with the applicable service bulletin. Prior to further proposed AD on U.S. operators of Model Authority: 49 U.S.C. 106(g), 40113, 44701. 747 series airplanes is estimated to be flight following accomplishment of the $261,360, or $1,080 per airplane. § 39.13 [Amended] replacement, perform an insulation resistance test of the fuel pump wiring, in For the 462 Model 757 series 2. Section 39.13 is amended by accordance with the Accomplishment airplanes, it would take approximately adding the following new airworthiness Instructions of the applicable service 12 work hours per airplane to directive: bulletin. accomplish the proposed actions, at an Boeing: Docket 96–NM–57–AD. (i) If any resistance measurement is less average labor rate of $60 per work hour. than or equal to 1 megohms, prior to further Applicability: All Model 747 and 757 series flight, replace the fuel pump with a new fuel Based on these figures, the cost impact airplanes, certificated in any category. of the proposed AD on U.S. operators of pump, in accordance with the applicable Note 1: This AD applies to each airplane Model 757 series airplanes is estimated service bulletin. Prior to further flight identified in the preceding applicability following accomplishment of the to be $332,640, or $720 per airplane. provision, regardless of whether it has been The cost impact figures discussed replacement, repeat the insulation resistance modified, altered, or repaired in the area test. above are based on assumptions that no subject to the requirements of this AD. For (ii) If any resistance measurement is greater operator has yet accomplished any of airplanes that have been modified, altered, or than 1 megohms but less than 5 megohms: the proposed requirements of this AD repaired so that the performance of the Repeat the visual inspection and insulation action, and that no operator would requirements of this AD is affected, the resistance test within 500 hours, or replace accomplish those actions in the future if owner/operator must request approval for an the fuel pump with a new fuel pump. Prior this AD were not adopted. alternative method of compliance in to further flight following accomplishment of accordance with paragraph (c) of this AD. the replacement, repeat the insulation Regulatory Impact The request should include an assessment of resistance test. The regulations proposed herein the effect of the modification, alteration, or (iii) If any resistance measurement is repair on the unsafe condition addressed by greater than or equal to 5 megohms, repeat would not have substantial direct effects this AD; and, if the unsafe condition has not on the States, on the relationship the visual inspection and insulation been eliminated, the request should include resistance test within 5,000 hours or 18 between the national government and specific proposed actions to address it. months, whichever occur first. the States, or on the distribution of Compliance: Required as indicated, unless (b) Within 10 days after accomplishing the power and responsibilities among the accomplished previously. initial visual inspection required by various levels of government. Therefore, To prevent fuel leakage at the fuel boost paragraph (a) of this AD, submit a report of in accordance with Executive Order and override/jettison pumps, which could the inspection results (both positive and Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Proposed Rules 42197 negative findings) to the Manager, Seattle prohibition so that a CRS could enforce Like the Board, we based our Aircraft Certification Office (ACO), 1601 Lind such a clause against an airline that adoption of CRS regulations primarily Avenue, SW., Renton, Washington 98055– owns or markets a competing CRS. The on our authority to prevent unfair 4056; telephone (206) 227–2689; fax (206) Department is acting on a rulemaking methods of competition and unfair and 227–1181. Information collection petition filed by Alaska Airlines. deceptive practices in the marketing of requirements contained in this regulation have been approved by the Office of DATES: Comments must be submitted on airline transportation under 49 U.S.C. Management and Budget (OMB) under the or before September 13, 1996. Reply 41712, formerly section 411 of the provisions of the Paperwork Reduction Act of comments must be submitted on or Federal Aviation Act, codified then as 1980 (44 U.S.C. 3501 et seq.) and have been before October 3, 1996. We are 49 U.S.C. 1381. 57 FR at 43789–43791. assigned OMB Control Number 2120–0056. shortening the comment period because Alaska Airlines has petitioned us to (c) An alternative method of compliance or our decision on Alaska’s rulemaking adopt a rule barring each CRS vendor adjustment of the compliance time that petition will resolve an existing (the owner of a system) from imposing provides an acceptable level of safety may be controversy between Sabre and many of contract terms on participating carriers used if approved by the Manager, Seattle its participating airlines, including that limit a carrier’s ability to choose the Aircraft Certification Office (ACO), FAA, level at which it will participate in a Transport Airplane Directorate. Operators Alaska, and because our request for shall submit their requests through an comments on Alaska’s petition has system. Alaska wished to consider appropriate FAA Principal Maintenance already given the public an opportunity lowering its level of participation in Inspector, who may add comments and then to comment on Alaska’s proposal. Sabre, the largest CRS, but Sabre send it to the Manager, Seattle ACO. ADDRESSES: Comments must be filed in claimed that its contract with Alaska Note 2: Information concerning the Room PL–401, Docket OST–96–1145 barred that airline from reducing its existence of approved alternative methods of (49812), U.S. Department of level of participation in Sabre as long as compliance with this AD, if any, may be Transportation, 400 7th St. SW., it planned to continue participating in obtained from the Seattle ACO. Washington, DC 20590. Late filed any other system at a higher level. (d) Special flight permits may be issued in comments will be considered to the Alaska contends that Sabre’s contract accordance with sections 21.197 and 21.199 extent possible. To facilitate clause—and similar clauses imposed by of the Federal Aviation Regulations (14 CFR consideration of comments, each Worldspan and System One—are 21.197 and 21.199) to operate the airplane to contrary to our policies on CRS and a location where the requirements of this AD commenter should file six copies of its comments. airline competition and should be can be accomplished. proscribed (we will refer to these FOR FURTHER INFORMATION CONTACT: Issued in Renton, Washington, on August contract clauses as parity clauses). Thomas Ray, Office of the General 7, 1996. Alaska’s proposed rule would protect Counsel, 400 Seventh St. SW., Darrell M. Pederson, non-vendor airlines (airlines holding no Washington, DC 20590, (202) 366–4731. Acting Manager, Transport Airplane significant CRS ownership interest) but Directorate, Aircraft Certification Service. SUPPLEMENTARY INFORMATION: Travel would not affect the participation [FR Doc. 96–20671 Filed 8–13–96; 12:33 pm] agents in the United States largely rely obligations of vendor airlines under upon CRSs to determine what airline BILLING CODE 4910±13±U section 255.7(a) of our rules. services and fares are available in a We issued a notice inviting comments market, to book seats, and to issue on Alaska’s petition. 59 FR 63736 Office of the Secretary tickets for their customers, because (December 9, 1994). We received CRSs can perform these functions much comments opposing the petition from 14 CFR Part 255 more efficiently than any other means American Airlines; two other CRS currently available for gathering [Docket No. OST±96±1145 [49812]; Notice vendors, Worldspan and System One No. 96±22] information on airline services, making Information Management; the two major bookings, and issuing tickets. Each of travel agency trade associations, the RIN 2105±AC35 the CRSs operating in the United States American Society of Travel Agents is owned by or affiliated with one or (ASTA) and the Association of Retail Computer Reservations System (CRS) more airlines, each of which has the Regulations Travel Agents (ARTA); and three travel incentive to use its control of a system agencies. Alaska and Galileo AGENCY: Office of the Secretary, to prejudice the competitive position of International Partnership each Transportation. other airlines. We found it necessary to submitted reply comments accompanied ACTION: Notice of proposed rulemaking adopt regulations governing CRS by a motion for leave to file the reply operations, 14 CFR Part 255, in order to comments late. We will grant the SUMMARY: The Department is proposing protect competition in the airline motions. to adopt a rule that would prohibit each industry (and to help ensure that As described below, our staff has met computer reservations system (CRS) consumers obtain accurate and with two system owners—American from adopting or enforcing contract complete information on airline Airlines and Galileo—and with Alaska clauses that bar a non-vendor carrier services). 14 CFR Part 255, adopted by and another carrier affected by Sabre’s from choosing a level of participation in 57 FR 43780 (September 22, 1992), after parity clause, Midwest Express Airlines. that system that would be lower than publication of a notice of proposed In considering the issues raised by the carrier’s level of participation in any rulemaking, 56 FR 12586 (March 26, Alaska’s petition, we are relying on the other system. The Department believes 1991). In adopting those rules, we comments filed in response to the that this rule is necessary to promote followed the similar findings made by petition, as well as Alaska’s own competition in the CRS and airline the Civil Aeronautics Board (‘‘the arguments in support of its rule industries, since the contract clauses at Board’’), the agency that formerly proposal. However, we have also relied issue appear to unreasonably limit an administered the economic regulatory on our findings in our 1991–1992 airline’s ability to choose how to provisions of the Federal Aviation Act rulemaking and in our last study of the distribute its services through travel (‘‘the Act’’), now Subtitle VII of Title 49 CRS business, Airline Marketing agencies. The Department will consider of the U.S. Code. 49 FR 11644 (March Practices: Travel Agencies, Frequent- creating an exception from this 27, 1984). Flyer Programs, and Computer 42198 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Proposed Rules

Reservation Systems, prepared by the obtain information and make bookings operated by U.S. airlines. And even Secretary’s Task Force on Competition on a carrier even if the carrier Southwest has found it necessary to in the Domestic Airline Industry participated in only some of the four participate in Sabre, albeit at a low level (February 1990) (Airline Marketing systems. Each travel agency office, (formerly ‘‘call direct’’ and now Basic Practices). however, generally uses only one Booking Request). We are proposing to adopt the rule system for the great majority of its Moreover, for a number of years, requested by Alaska, since the vendor bookings. Southwest’s refusal to participate in any contract clauses at issue appear to us to An airline’s ability to sell its services system but Sabre did not entirely be fundamentally inconsistent with our will be significantly impaired if its prevent travel agents using those goals of eliminating unreasonably services are not readily available systems from obtaining some restrictive practices in the CRS business through a CRS used by a significant information on Southwest’s services and that limit competition. By denying each number of travel agents. If the airline using the systems to write tickets on non-vendor airline an opportunity to does not participate in one system, the Southwest. In 1994, however, the other change its level of participation in a travel agents using that system can three systems—Apollo, Worldspan, and system in response to the quality and obtain information and make bookings System One—changed their policies on price of the services offered by each on that carrier only by calling the the treatment of non-participating vendor and the airline’s own marketing carrier, which is substantially less carriers in ways which made the sale of and operating needs, the contract efficient than using a CRS. The carrier’s tickets on Southwest much harder for clauses unreasonably restrict sales accordingly will be lower than travel agents using one of those systems. competition in the CRS and airline they would otherwise be. Because of the While section 255.11 of our rules states businesses. However, an airline owning importance of marginal revenues in the that a system must treat all non-paying or marketing a system may choose to airline industry, a loss of a few bookings airlines the same, an airline that refuses limit its participation in a competing on each flight is likely to substantially to participate in a system has no right system in order to make its own system reduce the airline’s profitability. under our rules to obtain CRS services. more attractive to travel agencies. Finally, the airline could not practicably Apollo, Worldspan, and System One We are asking for comments on enter the CRS business on its own, for each changed its policies on non-paying whether the proposed rule should allow entry would be extremely costly and the carriers so that travel agents using the systems to use the contract clauses to airline would have difficulty obtaining system no longer had ready access to the deter such conduct by airlines that own a significant market share. 57 FR at schedules offered by any non-paying or market a CRS. 43782–43784. carrier and, as to two of the systems, Each carrier’s need to participate in Background could no longer use the system to write each system is reflected in the vendors’ tickets on such carriers. As a result, Four CRSs operate in the United conduct and the terms imposed by each agents using these systems could no States. The largest system, Sabre, is for participation in its system. Since a longer efficiently serve customers who owned by the parent corporation of vendor has little need to compete with wanted to fly on Southwest. ASTA American Airlines. Apollo, the second other systems for airline participants, Answer at 2–3. This experience is largest system, is operated by Galileo the terms for airline participation are relevant to several issues raised by International Partnership, which is not significantly affected by market Alaska’s petition, as explained below. owned by United Air Lines, USAir, Air forces. Among other things, market Canada, and several European airlines. forces do not discipline the booking fees Regulatory Background Worldspan is owned by Delta Air Lines, charged by each system. 57 FR 43784– Because each vendor has the power Northwest Airlines, Trans World 43785. and the incentive to deny competing Airlines, and Abacus, a group of Asian Since each system is entirely or carriers access to its system except on airlines. System One was formerly largely owned by one or more airlines, terms which will prejudice the controlled by an affiliate of Continental each system’s owners also have an competitive position of those carriers, Air Lines, but recently Amadeus, a incentive to use the system to prejudice we and the Board determined that major European system, acquired the competitive position of competing regulations restricting the discretion of control of the system. airlines. Otherwise, CRS business CRS owners were necessary to protect With the exception of Southwest practices would present little airline competition and to ensure that Airlines and several low-fare carriers, competitive concern. For example, the consumers obtain accurate, complete, virtually all U.S. airlines have found it treatment of rental car companies and and unbiased information on airline essential to distribute their services hotel companies by the CRSs had not services. 14 CFR Part 255, originally through each of the four CRSs operating led to any claims that the vendors’ adopted by the Board, Regulation ER– in the United States due to two factors: conduct was contrary to antitrust law 1385, 49 FR 32540 (August 15, 1984), the importance of travel agencies in the principles. 57 FR 43784. and readopted by us, 57 FR 43780 distribution of airline services and each We recognize, however, that some (September 22, 1992), after the travel agency’s predominant use of a recently-established low-fare airlines publication of a notice of proposed single system. compete successfully while rulemaking, 56 FR 12586 (March 26, As we explained in our last CRS participating in none of the systems and 1991). Those rules regulate several rulemaking, at least seventy percent of that Southwest Airlines has succeeded aspects of CRS operations, including all airline bookings are made by travel without participating in any system CRS contracts between vendors and agencies, and travel agencies rely almost except Sabre. Nonetheless we believe participating carriers and between entirely on CRSs to determine what that the systems still have market power vendors and subscribers (subscribers are airline services are available and to with regard to the major portion of the the travel agencies using a system by make bookings for their customers. airline industry. Despite the growing contract with the system), although they Travel agencies rely so much on CRSs number of low-fare airlines, the more do not address the issue raised by because of their efficiency. If travel established airlines provide the great Alaska’s petition. When we readopted agency offices commonly used several majority of domestic airline service and and modified those rules in 1992, one CRSs, travel agents would be able to virtually all of the international service of our goals was to give carriers (and Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Proposed Rules 42199 travel agencies) a greater ability to when Alaska filed its petition a carrier of one system, that airline, deemed a choose alternative means of could participate in Sabre at the ‘‘call ‘‘system owner’’ under 14 CFR 255.3, electronically transmitting information direct’’ level, where the system must participate in each other system and making airline bookings. We displayed the carrier’s schedules but and its enhancements if the airline reasoned that this would promote neither showed whether seats are participates in such enhancements in its competition in the airline and CRS available nor enabled the agent to make own system, if the other systems offer businesses. 57 FR at 43781, 43797. a booking on the carrier. When a carrier commercially reasonable terms for such To advance this goal, we adopted a participates at the ‘‘full availability’’ participation. 14 CFR 255.7 (for the rule (section 255.9) giving travel agency level, travel agents can use the system rationale for this rule see 57 FR 43800– subscribers the right to use CRS to learn whether seats are available on 43801). Nothing in our rules requires terminals not owned by a vendor to the carrier and make a booking. When other airlines to participate in any access other systems and databases with Alaska filed its complaint, Sabre’s system, although in some circumstances airline service information. We expected charge for the full availability level of an airline’s refusal to participate could that this rule would make it practicable service was $2.43 per segment booked be an unfair method of competition or for carriers to create direct links and $1.25 per segment for the call direct a form of discrimination prohibited by between the carriers’ internal level of service. Alaska Petition at 7. the United States’ bilateral air services reservations systems and CRS terminals After Alaska filed its petition, Sabre agreements. at travel agencies, which would enable changed its participation levels by carriers to bypass CRSs for some eliminating the call direct level and Alaska’s Rulemaking Petition transactions. 57 FR at 43796–43798. We creating a new level of service, Basic Alaska’s rulemaking petition stems also prohibited certain types of contract Booking Request, which allows travel from American’s efforts to keep Alaska clauses imposed by vendors on agents to make a reservation with the from lowering its level of participation subscribers—rollover clauses, minimum participating airline through Sabre; in in Sabre, the system affiliated with use clauses, and parity clauses—that contrast to the call direct level, the agent American, while maintaining a higher unreasonably restricted the agency’s does not need to call the airline by level of participation in other systems. ability to use more than one system or telephone to make a booking. Sabre does American contends that the parity to replace one system with another as its not display availability information for clause included in Alaska’s primary system. 57 FR at 43823–43824. carriers participating at the Basic participation contract with Sabre bars We are proposing to grant Alaska’s Booking Request level, and any booking Alaska from reducing its level of rulemaking petition, because we believe request made by a travel agent will take participation in Sabre unless Alaska that the airline parity clauses challenged longer to process than it would for similarly reduces its level of by Alaska resemble the types of carriers participating at the full participation in all other systems. restrictive practices currently prohibited availability level. The fee charged the Alaska was considering reducing its by our rules: the airline parity clauses airline is $1.60 per segment booked. participation in Sabre from the full seemingly lack a legitimate business Alaska Reply Comments at 15. availability level to the call direct level justification, and they unduly restrict In addition to the different levels of in order to reduce its costs. Alaska has the business options of the firms on participation, systems separately offer generally become increasingly which they are imposed. While section different enhancements, such as the dissatisfied with CRS services, in part 255.7 of our rules requires each airline ability to display a seat map of the due to increased booking fees and in with a significant ownership share in a aircraft used for the flight being booked part due to the ways in which the CRS to participate in other systems at by a travel agent or to issue a boarding airlines owning the systems allegedly the level in which it participates in its pass. discriminate against other airlines. own system, the rationale for that rule Almost all major carriers have Alaska Petition at 6–7. One of Alaska’s does not apply to non-vendor airlines. participated in each system at the full major competitors, Southwest, availability level or at a higher level participates in Sabre at a low level and The Vendor Contract Clauses involving some form of direct access. thus incurs lower CRS costs than Alaska Sabre, System One and Worldspan, However, in the past some U.S. carriers for Sabre bookings. As explained above, but not Apollo, each requires every have limited their participation in a Sabre charges higher booking fees when carrier participating in the system to system in order to save money by a carrier participates in the system at a agree that it will participate at as least avoiding the higher booking fees higher level. Alaska Petition at 7, 17. as high a level of service as it charged for higher levels of Although Sabre has eliminated the participates in any other system. These participation. Airline Marketing call direct level and replaced it with the parity clauses do not excuse the airline Practices at 68. Galileo represents that Basic Booking Request level, Alaska was from this requirement if the service more than one hundred airlines still considering reducing its offered by the system imposing the participate in Apollo at a higher level participation in Sabre. If Alaska clause is inferior or more expensive than they do in Sabre. Galileo participated in Sabre at the Basic than the similar level of service being Comments at 3. Thus, while Booking Request level, travel agents purchased by the participating airline participation at some level in each could not obtain availability from another system (the Appendix to system appears to be essential for almost information on Alaska through the CRS, Alaska’s Petition sets forth each all U.S. airlines, airlines may be able to but they could make bookings system’s contract terms on this issue). compete without using all of the service electronically. Alaska Reply Comments Each CRS offers carriers several levels features offered by a system. at 5, 7. of participation in its system. The If a system did not impose a parity American told Alaska that reducing vendors obtain payments from clause, an airline that had no significant its participation level would violate the participating carriers for CRS services ownership affiliation with a CRS could parity clause in Alaska’s Sabre contract by charging them a fee for each booking participate at a lower level in that if Alaska continued to participate at a made through the system. The booking system and at a higher level in other higher level in any other system, as fee increases as the carrier’s level of systems. If an airline and its affiliates Alaska had planned. American filed suit participation increases. For example, own five percent or more of the equity against Alaska to enforce the parity 42200 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Proposed Rules clause. American Airlines v. Alaska Comments on Alaska’s Petition airline information, ASTA opposes Airlines, N.D. Texas Civ. Action No. 4– In response to our request for Alaska’s petition because travel agencies 94CV–595–Y. comments on Alaska’s petition, we still must depend on the systems for In addition to defending itself in that received comments opposing Alaska’s airline information and booking suit, Alaska has asked us to adopt a rule petition from the three vendors that use capabilities. If an airline does not fully invalidating the parity clauses. Alaska’s parity clauses, the two major travel participate in the system used by an proposed rule reads as follows: agency trade associations, and three agency, the agency’s alternatives for travel agencies. Galileo filed a late obtaining information and making No system may claim discrimination or bookings on that airline are quite require participating carriers which are not comment supporting Alaska’s petition. Our staff has met with American, burdensome, as shown by the recent system owners to maintain any particular experience of many agencies when the Galileo, Alaska, and Midwest Express level of participation in its system on the policy changes by Apollo, Worldspan, on the petition and American’s basis of participation levels selected by and System One made it more difficult enforcement of the parity clause earlier participating carriers in any other system. for agents to book customers on this year, as discussed below. Midwest Southwest. ASTA accordingly cannot To support its petition, Alaska first Express supported Alaska’s opposition support a rule which would make it notes that we adopted a rule, section to Sabre’s parity clause. easier for other airlines to reduce their American argues that its contract 255.9, in our last CRS rulemaking which level of participation in the CRSs. gives travel agencies the right to use clause is necessary to prevent a carrier Furthermore, ASTA points out that their CRS terminals, if not owned by the like Alaska from discriminating in favor travel agencies would have a limited vendor, to access other systems and of one system by reducing its level of ability to switch to another system if a databases. We thereby intended to give participation in other systems, that major airline in their region stopped non-vendor airlines some ability to Alaska unfairly intends to get the fully participating in the agencies’ CRS. avoid CRS fees by creating direct links benefits of Sabre participation without Most travel agency contracts for CRS between travel agencies and their paying for them, that travel agencies services have five-year terms, so an internal reservations systems. Alaska would be hurt if they could not make agency probably would be forced to argues that the vendors’ parity clauses bookings on Alaska through their CRS, continue using a system even if the will discourage carriers from creating and that the contract clause prevents airline’s reduced level of participation direct links, by keeping them from foreign airlines from discriminating substantially reduced the value of the reducing their level of participation in against a U.S. system in favor of a system used by an agency. As a result, one system unless they do so in all system with which they have ownership ASTA contends that we should allow systems, which would be too risky for or marketing ties. American also argues travel agencies to cancel their CRS most carriers. According to Alaska, if a that the clause does not unfairly restrict contracts on short notice if we grant carrier cannot reduce its booking fee Alaska’s distribution options, since Alaska’s rulemaking petition. costs by reducing its participation level, Alaska is always free to quit ARTA similarly argues that Alaska’s it will have little incentive to incur the participating in Sabre. Furthermore, proposal would injure travel agencies. costs of creating direct links between some of Alaska’s major competitors According to ARTA, over one-third of the agencies using that system and the participate in Sabre at the full the agencies in the Pacific Northwest carrier’s own internal reservations availability level. And, according to and Alaska—the regions where Alaska system. Alaska Petition at 10–11. American, the Sabre contract clause is principally operates—use Sabre, and similar to other contract clauses which Secondly, Alaska contends that the those agencies will be at a considerable the courts have found permissible under competitive disadvantage if Alaska parity clauses limit a non-vendor the antitrust laws. carrier’s ability to respond to reduces its participation in Sabre. Worldspan argues that we should not Three travel agencies—Carlson unacceptable CRS service or pricing. If attempt to regulate the kind of contract Wagonlit Travel of Minneapolis, Austin a carrier wished to reduce its level of issue raised by Alaska and that in any Travel of Melville, New York, and Tyee participation in one system because the event no rule should be proposed until Travel of Wrangell, Alaska—wrote to system’s service was poor or too after the completion of our current oppose Alaska’s petition. Tyee Travel, a expensive, the carrier could not do so investigation into the CRS business and Sabre subscriber, states that Alaska’s unless it simultaneously reduced its airline marketing practices. Worldspan reduction in the level of participation in level of participation in other systems, also asserts that the rule proposed by Sabre would seriously damage the even if the other systems’ service and Alaska would harm the smaller systems, agency’s ability to operate and survive. pricing were superior. Alaska Petition at because carriers would be more likely to Carlson Wagonlit Travel and Austin 13. Alaska, however, has not alleged withdraw from those systems than from Travel contend that a rule allowing that Sabre’s service and pricing are in the largest two systems. In opposing airlines to reduce their participation in fact inferior to the service and pricing Alaska’s petition, System One one system would injure travel agencies. offered by other systems. Information Management focuses on the Apollo Travel Services (ATS), which In response to the argument of the harm Alaska’s business proposal would distributes Apollo in the United States, parties opposing the petition that Alaska cause travel agencies and the Mexico, and the Caribbean and manages could avoid the effects of the Sabre competitive position of the smaller the system’s distribution in Japan, filed clause by suspending entirely its CRSs. System One Information a comment opposing ASTA’s requested participation in Sabre, Alaska claims it Management further asserts that the rule giving travel agencies the right to could never afford to do that. Alaska parity clauses are consistent with terminate a CRS contract before it relies on travel agencies for 85 percent antitrust principles and do not unduly expires. ATS claims that its ability to of its bookings, so it could not afford to restrict Alaska’s response to offer travel agencies contracts with take any action that would alienate the unsatisfactory CRS service and fees. terms as long as five years gives it the travel agency community. Alaska Reply While ASTA has supported rules ability to recover its costs over a longer Comments at 19–20; Alaska Reply giving travel agencies and airlines more period and thus enables it to offer lower Comments at 3. flexibility in receiving and sending prices to travel agencies. ATS would Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Proposed Rules 42201 have to increase its charges to travel participation in Galileo rather than in its Apollo system due to Sabre’s agencies if subscribers had the freedom increasing their level of participation in threats to enforce the parity clause and to cancel contracts before the end of Sabre. Galileo thereafter filed a that Galileo believed more carriers their term. comment supporting Alaska’s petition. would do so since Sabre had given a No one else submitted comments to Galileo complains that Sabre’s parity number of carriers more time to decide us on Alaska’s petition until Sabre clause restricts CRS competition, since how to respond to Sabre’s demands to recently enforced the parity clause the clause prevents airlines from either upgrade their participation in against many of the airlines choosing their participation level and Sabre or downgrade their participation participating in its system, as described other features in each system on the in Apollo. Galileo believes that it is a next. basis of price and quality. Since an leader in developing higher-level Sabre’s Recent Enforcement of Its airline’s Sabre fee expenses will functionality and that many airlines Parity Clause increase if the airline increases its therefore will choose to participate in participation level in Sabre, an airline Apollo at a higher level than in other While we were considering Alaska’s will be reluctant to maintain a higher systems if they are free to do so. petition, Sabre notified its participating level of participation in Apollo (or The Need for a Rule Barring Airline airlines that Sabre was revising its another system) if the airline must then Parity Clauses contractual terms and that each increase its participation level in Sabre participating airline had to sign the and thereby incur higher CRS costs. As After considering the comments, we contract amendment. Sabre’s letter to a result, Sabre’s threats have forced have determined to propose the rule many of these airlines additionally some airlines to reduce the amount of requested by Alaska. As shown in our stated that Sabre would eliminate the services they are purchasing from last rulemaking (and in the Board’s airline’s services from Sabre’s display Galileo, which reduces Galileo’s rulemaking), the CRSs have a on February 1, 1996, unless the airline revenues, even though those airlines substantial ability to impose onerous upgraded its participation level in would prefer to buy a higher level of contract terms on participating airlines, Sabre, since the airline allegedly was CRS services from Galileo. for the systems have little need to participating at a higher level in another In response to Mr. Murphy’s letter, compete for airline participants. Almost system than it was participating in American and Sabre met with him and all major airlines are compelled to Sabre. Department staff members to discuss participate in each system, even if the Two of the airlines receiving this American’s rationale for the parity CRS imposes unreasonable terms for letter were Alaska and Midwest Express, clause. Sabre stated that it had begun participation. Thus a participating each of which uses Sabre as its internal requiring parity and non-discrimination carrier has little, if any, bargaining reservations system. Since they are clauses in its participation agreements power on contract issues like the airline ‘‘hosted’’ in Sabre, they thought that with several European airlines, since the parity clause demanded by Sabre. Sabre provided its subscribers at least as refusal of some European carriers to We believe that the use of parity much functionality for information participate in Sabre at the full clauses should be resolved through a requests and booking transactions on availability level had injured Sabre’s rulemaking proceeding, rather than themselves as was provided by any marketing efforts with European travel through enforcement. Since three of the other system. In their view, accordingly, agencies. Sabre also feared that some four CRSs in the United States use they were already in compliance with foreign airlines might otherwise deny parity clauses, the question of the Sabre’s parity clause. They asked us to commissions to travel agencies in the legality of their use raises an industry- stop Sabre from compelling them to airlines’ homelands if they used Sabre wide issue more appropriately purchase additional services from Sabre, to make bookings on the foreign flag considered in a rulemaking proceeding. a demand that they estimated would carrier. Within the past year Sabre has In a rulemaking all potentially raise their booking fee expenses by over successfully invoked the parity clause interested persons can submit factual ten percent. After meeting with these against several foreign airlines that information and legal and policy two airlines, Patrick V. Murphy, the participated at a high level in a arguments. Deputy Assistant Secretary for Aviation competing system marketed by those While we have been reluctant to and International Affairs, wrote Sabre carriers while participating in Sabre at regulate CRS contracts in detail, the and obtained its agreement that Sabre a relatively low level. parity clauses substantially—and temporarily would not compel either Although Sabre developed the parity unfairly—restrict a non-vendor airline’s airline (or any other airline hosted in and non-discrimination clauses to ability to choose the level at which it is Sabre) to upgrade its participation level. protect its ability to market its services willing to participate in a system. Under Although Alaska and Midwest focused in foreign countries, Sabre believes that those clauses, each vendor in effect is at the meeting on Sabre’s demands that a U.S. airline like Alaska with a large stating that it refuses to do business each airline upgrade its participation in market share in some regions could with a customer unless that customer Sabre, Alaska also noted that it was no distort CRS competition by reducing its buys the same level of services from it longer considering reducing its level of level of participation in some systems that the customer buys from any participation in Sabre. Alaska still asked but not others. If a carrier did that, competing system. Furthermore, the us to prohibit parity clauses, since it did travel agencies in regions where that clauses used by some systems bar an not wish to be compelled by contract to airline was a major airline would be airline like Alaska from reducing its buy CRS services that it preferred not to compelled to choose a system where the level of participation even if the system use. airline participated at a higher level. imposing that requirement offers lower Soon after Alaska and Midwest American claimed, for example, that quality service or charges higher prices. Express had presented their complaint, Sabre would have to abandon the If Worldspan’s charges for participation Galileo complained in writing to Mr. Seattle market if Alaska did not at the full availability level, for example, Murphy that Sabre’s threats to participate fully in the system. were much higher than Apollo’s charges participating airlines were causing some In a later meeting with our staff on the for the same level of service, the airlines to comply with Sabre’s issue, Galileo stated that four carriers Worldspan contract would still compel demands by reducing their level of had lowered their level of participation Alaska to maintain its Worldspan 42202 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Proposed Rules participation at the full availability agencies from the loss of functionality a number of terminals for one system level, as long as Alaska participated at in booking airlines important to an comparable to the number of terminals that level in Apollo. agency’s business. Obviously travel used to access other systems. In our The contract clauses, moreover, agencies will become much more rulemaking we found that the clauses unreasonably restrict Alaska’s ability to inefficient if such an airline withdraws discouraged agencies from using more choose its participation level in completely from a system than if it than one system. We therefore different systems. Sabre’s contract with lowers its level of participation in the prohibited such clauses. 56 FR at Alaska, for example, gives Alaska only system. Non-vendor airlines should be 12624–12625; 57 FR at 43826. three choices: it can maintain its free to make their own decisions on Finally, we doubt that firms in any participation at the full availability their level of participation in each competitive industry could unilaterally level, since it participates in other system. In making such decisions, those impose any similar requirement on their systems at that level; it can maintain its airlines will consider the impact of their customers. While purchasers often agree participation at the full availability level choices about CRS participation on the with suppliers in competitive industries in one or more of the other systems and travel agencies’ ability to market their to requirements contracts or contracts withdraw entirely from Sabre; or it can services. requiring purchases in large quantities reduce its level of participation in every Furthermore, the parity clauses or over long periods of time, in those system below the full availability level. discourage airlines from creating direct situations the purchaser typically Alaska thus cannot respond to its electronic links between their own obtains offsetting benefits, such as a changing distribution needs by lowering reservations systems and travel guaranteed supply or a lower price. Cf. its participation level in Sabre (and agencies. As Alaska explains, if an Barry Wright Corp. v. ITT Grinnell hence its costs) while maintaining its airline otherwise willing to bear the Corp., 724 F.2d 227, 237 (1st Cir. 1983) participation at the full availability level costs of establishing such links still had (Breyer, J.). Here the commenters claim in one or more other systems. to pay the costs of CRS participation at neither that participating airlines obtain Although the commenters claim that a high level, the airline would have less any benefit from the clauses nor that Alaska could easily resolve its alleged economic incentive to create direct such airlines have obtained other dissatisfaction with Sabre’s full links. Alaska Petition at 10–11. By benefits in exchange for accepting the availability level service by discouraging airlines from creating clauses. withdrawing entirely from Sabre, see, direct links between travel agencies and e.g., American Response at 16, Alaska their internal reservations systems, the Legal Authority for Adopting the explains that this is not a realistic parity clauses frustrate one of the major Proposed Rule option. Alaska depends on travel agency goals of our last rulemaking, making it Under 49 U.S.C. 41712, formerly bookings for the great majority of its possible for airlines and travel agencies section 411 of the Federal Aviation Act total revenues, and, if it withdrew to develop alternative means of (and codified then as 49 U.S.C. 1381), entirely from Sabre, the many travel transmitting airline information and we may investigate and determine agencies using Sabre as their primary making bookings. 57 FR at 43781, whether any air carrier or ticket agent system would find it so difficult to 43797. The parity clauses, moreover, has been or is engaged in unfair obtain information on Alaska’s services reduce airline competition, since the methods of competition in the sale of air that its bookings from those agencies carriers owning the systems are transportation. That section, modelled would fall sharply. Alaska Reply restricting other airlines from reducing on section 5 of the Federal Trade Comments at 7–8. We found in our last their distribution costs by creating Commission Act, 15 U.S.C. 45, does not rulemaking that few carriers could alternatives to full CRS participation. If confine unfair methods of competition afford to stop participating entirely in a other airlines could reduce their to those practices constituting a system, since a carrier taking that action participation in one or more systems, violation of the antitrust laws. For would lose a substantial portion of its they would reduce their booking fee example, we have the authority to ban bookings from that system’s subscribers. costs. The parity clauses prevent practices well before they become 57 Fed. Reg. at 43783. None of the airlines like Alaska from lowering their serious enough to violate the antitrust parties opposing Alaska’s petition has costs and improving their distribution laws, as the Seventh Circuit held when shown that complete withdrawal from methods by restricting their ability to it affirmed the Board’s adoption of CRS Sabre would be an acceptable business choose the level of CRS services best rules, United Air Lines, 766 F.2d 1107, option for an airline like Alaska. suited to their needs. 1114 (7th Cir. 1985): While complete withdrawal from a In addition to injuring non-vendor system is not a practicable option for a participating airlines like Alaska, the Although none of the airline owners of non-vendor airline, a reduction in its parity clauses also injure CRS computerized reservation systems has a level of participation might be a competition. As shown by Galileo’s conventional monopoly position in the reasonable business strategy. While no market for that service, and they are not comments, a system offering more accused of colluding, the Board found that major airline except Southwest has attractive prices and services may obtain some of them, anyway, had substantial chosen not to participate at all in one or less business than it otherwise would, market power. This finding * * * would more systems, some major airlines have because some airlines will be unwilling bring their competitive practices within the limited their participation in CRSs. to purchase a higher level of that broad reach of section 411. We know from Airline Marketing Practices at 68. The system’s services when doing so will many decisions under both that section and parity clauses, as shown, unreasonably force them to increase their purchases its progenitor, section 5 of the Federal Trade restrict an airline’s ability to choose this from other systems, even if the latter Commission Act, that the Board can forbid option. offer lower quality services or charge anticompetitive practices before they become American’s claim that complete higher fees. serious enough to violate the Sherman Act. withdrawal from a system is an Indeed, the parity clauses imposed on We may therefore define a practice as acceptable alternative for a dissatisfied participating airlines are quite similar in an unfair method of competition and participating airline is inconsistent with effect to the parity clauses formerly prohibit it without finding that it is in American’s other claim that parity imposed on travel agency subscribers. fact a violation of the antitrust laws. clauses are needed to protect travel Those clauses required an agency to use Nonetheless, we doubt that we could Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Proposed Rules 42203 prohibit a business practice on development of improvements that reduces its subscribers’ incentives to use competitive grounds unless the practice benefit participating airlines along with alternative channels. Sabre achieves this is comparable to practices that would travel agents does not disprove our goal by requiring the airline to purchase violate the spirit or the letter of the finding that each system has market a specified level of services from Sabre antitrust laws. power. Cf. 57 FR at 43781. without regard to price or quality. As a See, e.g., E.I. Du Pont de Nemours & As noted earlier, some recently- result, the parity clause helps to Co. v. FTC, 729 F.2d 128 (2d Cir. 1984). established low-fare carriers compete maintain Sabre’s existing monopoly Here we find that we may proscribe the while participating in none of the over electronic access to its subscribers. parity clauses, because these clauses systems. The systems nonetheless still The clause accordingly is comparable to appear comparable to impermissible have market power with regard to more conduct designed to maintain or create tying arrangements, violations of the established airlines. And even a monopoly, which would be unlawful essential facility doctrine, and attempts Southwest apparently has found it under section 2 of the Sherman Act. to monopolize the electronic necessary to participate in one system, The Essential Facility Doctrine. Under distribution of information on airline Sabre, albeit at a low level. the essential facility doctrine, a firm that services to travel agencies. Tying Arrangements. Parity clauses controls a facility essential for CRS Market Power. As the predicate are analogous to the kind of tying competition must give its competitors for the findings that the contract clauses contracts prohibited by the antitrust access to the facility on reasonable are similar to conduct prohibited by the laws, since they result from a system’s terms. The firm’s denial of access will antitrust laws, we find that each of the use of its market power to force each violate section 2 of the Sherman Act. A systems has market power, which the participating airline to purchase facility is essential if it cannot be Supreme Court has defined as the power services that it may not want as a feasibly duplicated by a competitor and ‘‘to force a purchaser to do something condition to obtaining any services. The if the competitor’s inability to use it will that he would not do in a competitive Supreme Court held in Eastman Kodak severely handicap its ability to compete. market,’’ Jefferson Parish Hospital v. Co., supra, 504 U.S. at 461–462 (1992), See, e.g., Aspen Skiing Co. v. Aspen Hyde, 466 U.S. 2, 14 (1984); Eastman that a tying arrangement—a seller’s Highlands Skiing Corp., 472 U.S. 585 Kodak Co. v. Image Technical Services, agreement to sell one product only on (1985); Delaware & Hudson Ry. v. 504 U.S. 451, 464 (1992). condition that the buyer purchase a Consolidated Rail Corp., 902 F.2d 174 Each vendor has market power over second product from the seller (or (2d Cir. 1990), cert. denied, 111 S. Ct. other carriers, because most carriers promise not to buy the product from 2041. have no adequate alternative to the another seller)—is a per se violation of We concluded in our rulemaking that travel agency system for efficiently the Sherman Act if the seller has each of the systems is comparable to an distributing their services, because appreciable market power in the tying essential facility. Each system must travel agents have no alternative to CRSs product and if the arrangement affects a therefore offer airlines access to its for quickly and efficiently obtaining substantial volume of commerce in the services on reasonable terms. 57 FR at information and bookings on airline tied product. Tying arrangements are 43790. While the Ninth Circuit ruled in services, because the great majority of objectionable because they force buyers a private antitrust suit, Alaska Airlines agencies use only one system (or to accept conditions that they would not v. United Air Lines, 948 F.2d 536 (9th predominantly only one system) at each accept in a competitive market. See, e.g., Cir. 1991), that CRSs were not essential location, and because entry into the CRS Jefferson Parish Hospital, 466 U.S. at facilities, its decision appeared to be business under current conditions 12–15. inconsistent with decisions by other would be extremely difficult. As the As a result of the parity clause, a circuits and in any event did not limit Department of Justice explained in our system like Sabre will provide no CRS our authority to determine that CRS earlier rulemaking, each system as a services to a participating airline unless practices constitute unfair methods of practical matter holds a monopoly over the airline purchases at least as high a competition which we may prohibit, as the carriers’ access to its subscribers. level of services from Sabre as it we explained in our last rulemaking. 57 See 57 FR at 43783–43784, quoting the purchases from other systems. Sabre, for FR 43791. Justice Department’s comments on the example, would not allow Alaska to buy We believe that a system is denying advanced notice of proposed any CRS services unless Alaska buys access on reasonable terms if it makes rulemaking at 10–11. Since the services at the full availability level, as a non-owner airline’s participation economics of the airline business make long as Alaska participates at the full contingent on the airline’s agreement to it difficult for a carrier to operate availability level of service in any other purchase at least as high a level of successfully if its services cannot be system. Sabre has taken that position services from that system as it does from readily marketed by a significant group even though Sabre marketed the call any other system, without regard for the of distributors, each major airline must direct level—and now Basic Booking price or quality of the system’s services. participate in each system. 57 FR Request—as a separate product and sold 43783–43784. it to other airlines, most notably The Commenters’ Defenses for the And, as discussed above, we believe Southwest. Airline Parity Clauses the systems’ ability to impose the type Monopolization. A vendor like Sabre The commenters opposing Alaska’s of contract clause challenged by Alaska essentially holds a monopoly over the rulemaking petition argue that we is itself evidence of their market power. electronic provision of information and should not prohibit parity clauses, since We recognize, however, that each booking capabilities on airline services they allegedly promote CRS competition vendor has made major improvements to its subscribers, as explained above. 57 and benefit travel agencies. American, to its system in recent years and that FR 43783; ASTA Answer at 2–3. By supported by Worldspan and System those improvements have benefited requiring an airline to participate in One Information Management, also participating airlines by giving travel Sabre at a higher level than it prefers, contends that the clauses are consistent agents a greater ability to obtain current Sabre simultaneously discourages the with the antitrust laws. We have information and to complete bookings airline from creating alternative carefully considered these parties’ and other transactions without errors or electronic channels for information and arguments, particularly those relating to delays. Nonetheless, the systems’ bookings for Sabre subscribers and the proposed rule’s impact on travel 42204 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Proposed Rules agencies, but we believe that these used Sabre to issue a ticket on Alaska, 1406, 1415 (7th Cir. 1995), cert. denied, arguments do not outweigh the reasons even if the booking was initially made 64 U.S.L.W. 3624 (March 19, 1996). for granting Alaska’s petition. We will through a direct link. Alaska Reply at American’s reliance on Ocean State discuss first American’s antitrust 16. Alaska therefore will not be getting Physicians appears to be misplaced. arguments and then the arguments that a free ride. Indeed Alaska would only be First, as Alaska has pointed out, the the rule would be harmful. doing what other airlines using the court’s decision is inconsistent with the Before addressing these arguments, lower level of participation are already Justice Department’s position in two we will address the claims made by doing. recent cases that ‘‘most favored nation’’ American and other commenters that American’s ‘‘free riding’’ argument is clauses of the type at issue in Ocean the clauses prevent ‘‘discrimination’’ thus refuted by its own conduct. If State Physicians are anticompetitive and ‘‘free-riding’’ by participating American really thought carriers using because they reduce price competition. airlines. In making these claims, these the call direct level of participation Alaska Reply Comments at 27, citing the commenters are effectively arguing that were free riders—carriers obtaining proposed consent decrees in United any firm choosing one supplier over valuable CRS services without paying States v. Vision Service Plan and United another is ‘‘discriminating’’ against their share of the system’s costs—then States v. Delta Dental Plan of Arizona, other suppliers and that a firm engages American presumably would never have published respectively at 60 F.R. 5210 in ‘‘free-riding’’ by choosing to buy one offered that level of service or would (January 26, 1995) and 60 F.R. 47349 level of service offered by a supplier have charged carriers higher fees for (September 15, 1994). rather than a more expensive level of using it. Furthermore, the parity clauses are service. Furthermore, while Sabre will not not like the ‘‘most favored nation’’ The discrimination claim is based on obtain the higher fee payable for clause upheld in Ocean State the theory that an airline like Alaska participation at the full availability level Physicians. The court held that the would choose to distort CRS if Alaska lowers its level of conduct challenged in Ocean State competition by participating in a participation, Sabre also will not incur Physicians was not exclusionary favored system at a higher level than it the cost of transmitting booking because it represented a buyer’s participates in one or more other messages. The systems must believe insistence on obtaining the lowest price, systems. See, e.g., American Response at there is a significant cost created by a practice which tended to further 27. This could be of concern, of course, such message transmissions, since most competition on the merits. 883 F.2d at if the airline were trying to promote the U.S. systems now charge participating 1110. The court additionally noted that market position of a system which it carriers fees based on separate Blue Cross’ conduct benefited owned or marketed. That type of transactions rather than a single fee per consumers by giving them lower prices. discrimination caused us to adopt the booking. Sabre in fact recently imposed 883 F.2d at 1111. Cf. Blue Cross & Blue mandatory participation rule for carriers a cancellation charge for all levels of Shield, supra, 65 F.3d at 1415. Here, in that directly or through an affiliate hold participation except Basic Booking contrast, the parity clauses are imposed a significant ownership position in a Request. As a result, the ‘‘free riding’’ by sellers, not by buyers, and the CRS. claim is unpersuasive. clauses do not act as a means of Alaska, however, neither owns any American’s Antitrust Defense. In providing low prices to the affected share of a CRS nor promotes the arguing that the parity clauses are consumers, which here are the marketing of any CRS. Thus Alaska’s so- consistent with the antitrust laws, participating airlines. Instead, as shown, called ‘‘discrimination’’ is only its wish American claims that the clauses are not the clauses require airlines to to exercise the normal freedom of a unusual, that they prevent participate at a high level in a vendor’s purchaser in a competitive market to discrimination, and that they are pro- system, merely because they participate choose its suppliers and the quantity of competitive. American Response at 24. in other systems at that level. goods or services that it will buy from American contends that the clauses are American’s other antitrust arguments each. This does not constitute legitimate even if analyzed under our are also unpersuasive. American discrimination. past findings on the CRS business and correctly notes that a firm with market In an effort to cast doubt on the each vendor’s market power, findings power may legitimately seek to increase legitimacy of Alaska’s approach on with which American disagrees. its market share; a firm will not violate reducing its distribution costs, American Response at 24. the antitrust laws, for example, by American and System One Information In defending the parity clauses, developing new products. See, e.g., Management accused Alaska of ‘‘free- American primarily relies upon a Foremost Pro Color v. Eastman Kodak riding’’. According to them, when decision holding that a monopolist Co., 703 F.2d 534, 544–546 (9th Cir. Alaska planned to participate in Sabre health insurance company did not 1983), cert. denied, 465 U.S. 1038. But only at the call direct level and to violate the antitrust laws when it a firm with market power may not provide direct electronic links between required physicians to give its strengthen its market position by Sabre subscribers and its internal customers prices as low as those given engaging in coercive conduct. The reservations system, Alaska sought to customers of a rival insurance firm. parity clauses appear comparable to the use Sabre to provide schedule and fare Ocean State Physicians Health Plan v. kind of coercive conduct prohibited by information to travel agencies while Blue Cross, 883 F.2d 1101 (1st Cir. the antitrust laws. In contrast, of course, avoiding any booking fee obligation, 1989), cert. denied, 494 U.S. 1027. On American is free to continue improving since the bookings would be made the theory that the Blue Cross conduct Sabre without running the risk of through the direct link. American at issue represented a firm’s efforts to antitrust liability. Response at 13–14, 18; System One prevent discrimination against it, Furthermore, while American claims Reply at 3–4. This argument has an American alleges that its parity clause is the clauses are not unusual, it has cited obvious flaw—Alaska must pay fees set equally valid, since the clause is no examples of similar contract by American for its participation in designed only to prevent discrimination restrictions in other industries. Sabre at the call direct level. According against Sabre. American Response at The Commenters’ Other Justifications to Alaska, Sabre would then receive a 25–26. See also Blue Cross & Blue for Airline Parity Clauses: CRS Industry booking fee whenever a travel agent Shield v. Marshfield Clinic, 65 F.3d Effects. In defending the parity clauses, Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Proposed Rules 42205 the commenters opposing Alaska’s system could cause them significant full availability level and thereby injure petition argue that the clauses promote competitive harm. travel agencies by making their competition, at least in the CRS and The Commenters’ Other Justifications operations less efficient, as explained travel agency businesses, and benefit the for Parity Clauses: Travel Agency above. An agency using a system which public. We find these arguments Effects. The parties opposing Alaska’s no longer provides the ability to unpersuasive. petition generally argue that Alaska’s conveniently make bookings on a Worldspan and System One proposed rule would harm many travel significant airline in the agency’s Information Management claim the agencies. If a major airline decided to business area will be less able to airline parity clauses promote CRS reduce its level of participation in a compete with agencies using other competition by keeping airlines from system, travel agencies using that systems. reducing their level of participation in system will have more difficulty Tyee Travel, a travel agency in the smaller systems, Worldspan and obtaining information and making Wrangell, Alaska, complains that System One. According to their bookings on that airline through their Alaska’s proposed reduction in Sabre comments, if a smaller system could not system. If, for example, Alaska participation to the call direct level impose contract terms preventing a participated in Sabre at the Basic would be devastating for it. Tyee Travel participating airline from reducing its Booking Request level, a travel agency has three years left on its Sabre contract participation in that system, some in Alaska or the Pacific Northwest using and cannot switch to another system. It airlines would reduce their level of Sabre will have higher costs booking also makes many more bookings on participation in the smaller systems Alaska, an airline used by many of its Alaska Airlines than it does on all other while maintaining a higher level of customers, since Alaska bookings would airlines combined. If the agency were participation in the larger systems, take longer and since the CRS would no forced to make its bookings on Alaska Sabre and Apollo. The smaller systems longer display availability information by telephone, the agency’s expenses would then be unable to offer for Alaska. If Alaska reduced its would be much higher. subscribers as complete a coverage of participation in another system to the We are sympathetic to these concerns. the airline industry as the larger systems equivalent of the call direct level However, we believe that travel agencies and would therefore lose subscribers to formerly offered by Sabre, an agency will ultimately benefit if airlines—and one of the larger systems. using that system could not book Alaska travel agencies—have a variety of However, the airline participants in a through the CRS at all and therefore options for electronic communications smaller system will continue purchasing would operate less efficiently than between airline reservations systems a high level of service from that system competing agencies using other systems. and airline and travel databases, on the if it offered attractive service and prices. The increased difficulty of obtaining one hand, and travel agencies, on the Furthermore, even if an airline reduces information and conducting other hand. The rule proposed by its participation in a system, the system transactions would not matter much if Alaska will promote that goal in the presumably would still provide travel agencies commonly used more long run, since it will make it easier for information on the airline’s schedules than one system or if the vendors airlines to set up alternative methods of and other capabilities, such as the offered them short-term contracts. providing information and transactional ability to write tickets through the CRS. Short-term contracts would enable capabilities to travel agencies. Although The smaller vendors’ own conduct agencies to switch systems relatively ASTA opposes Alaska’s proposal, it indicates that the loss of subscriber soon after deciding that other vendors agrees with the principle that travel access to booking and ticketing offered better service. However, the agencies will benefit if they have more capabilities on some airlines may not vendors have traditionally insisted on alternatives for obtaining travel damage CRS competition. As discussed long-term contracts (usually five-year information and making airline earlier, in 1994 System One, Worldspan, contracts) and on other contractual transactions electronically. ASTA and Apollo each changed its policies on restrictions which discourage the use of Answer at 2. Alaska, moreover, states the treatment of carriers that chose not multiple systems. In particular, most that its dependence on travel agencies to participate in the system. As a result, travel agencies obtain their CRS for bookings will ensure that it takes their subscribers found it much more terminals from a vendor, and each steps to offset the impact of its reduced difficult to obtain information and make vendor commonly bars its subscribers level of participation. Alaska Reply bookings on non-participating airlines. from using the terminals to access any Comments at 2, 3. Alaska notes that 85 Southwest, a major airline in many other system or database. 57 F.R. at percent of its bookings came from travel markets, does not participate in these 43796, 43822–43824; Airline Marketing agencies in 1994. Id. at 22, n. 9. systems (but does participate in Sabre). Practices at 85–91. While travel Insofar as travel agencies using Sabre Southwest accounts for more than ten agencies would be reluctant in any are concerned, Sabre’s replacement of percent of domestic enplanements, event to switch systems or to use the call direct level of service with Basic although its share of travel agency multiple systems due to the cost of Booking Request will substantially bookings for domestic travel is lower. doing so, Airline Marketing Practices at alleviate the loss of efficiency when a The policy change by Apollo, 26, 87, the vendor contract clauses major airline lowers its participation Worldspan, and System One should additionally discourage travel agencies from the full availability level. If the have made those systems much less from switching systems or using several airline participates at the Basic Booking attractive than Sabre for many travel systems. Request level, an agent using Sabre can agencies. Even though Southwest, the ASTA and ARTA specifically still obtain a display of the airline’s major non-participating airline, complain that a rule barring airline schedules and can book the airline continued to refuse to participate in parity clauses will impair competition electronically. This is more efficient for these systems, the smaller systems—and in the travel agency industry and injure travel agents than direct call would have Apollo—nonetheless went ahead with the business position of many agencies. been. Moreover, although not critical to the change in policy. If the smaller They base this contention on their our analysis, Alaska has advised us that systems were willing to take that action, expectation that the rule will cause it is not planning to reduce the level of we do not see how allowing airlines to some airlines to reduce their its participation in Sabre, although it reduce their level of participation in a participation in some systems below the does wish to avoid purchasing some 42206 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Proposed Rules features from Sabre that it apparently call direct level while participating in a except insofar as they apply to a carrier purchases from other systems. competing system at the full availability affiliated with another system as an In addition, travel agencies using level, allegedly in order to promote the owner or marketer. In addition, Apollo, Worldspan, or System One other system that Avensa is marketing commenters should address whether the recently had similar difficulties when in Venezuela. This will cause rule should exclude any airline with a each of those systems changed its Venezuelan agencies to prefer the latter CRS ownership interest rather than only policies on non-participating carriers system over Sabre. American Response system owners, carriers defined by our and thereby made it harder for those at 9–10. rules as owning directly or indirectly agencies to obtain information and make When American met with our staff, it five percent or more of the equity of a bookings on Southwest. Southwest stated that Sabre has recently invoked CRS that operates in the United States. created direct electronic links with the parity clause to resolve problems Allowing a CRS to enforce a parity some of the affected travel agencies and with some other Latin American airlines clause against an airline that owns or has changed its procedures in other that were marketing competing CRSs. markets a competing CRS would be ways (for example, by creating ticketless As in the Avensa example, the airlines consistent with one of our rules, section travel) to offset the impact of its non- participated in Sabre at a low level 255.7(a). That rule requires carriers with participation in the systems besides while participating at a substantially a significant ownership interest in a Sabre. Even so, Southwest’s non- higher level in the systems they U.S. CRS to participate in each other participation reduces the efficiency of sponsored in their home countries. After system and each of its enhancements (to travel agencies using Apollo, Sabre invoked the parity clause, these the extent that such carrier participates Worldspan, or System One. airlines upgraded their participation in those features in its own system). Our Nonetheless, we have never required level in Sabre. adoption of a rule barring a system from non-vendor airlines to participate in We sympathize with this effect of the contractually requiring airlines that CRSs, even though an airline’s non- parity clause, for several foreign airlines neither own nor market a system to participation will decrease the in the past have limited their participate in the system at a higher efficiency of travel agency operations. participation in a U.S. system in an level would not conflict with our We do not believe that we should allow apparent effort to deny the U.S. system existing mandatory participation rule, a CRS to dictate a non-vendor airline’s a fair opportunity to compete in their which covers only airlines with level of participation, even though that homelands against systems they owned. significant CRS ownership interests. could benefit travel agencies using that The foreign airlines’ conduct injured the American accordingly is completely system. competitive position of the U.S. airline wrong in suggesting that we excluded In any event, we currently believe that marketing its system. See, e.g., airlines with a small ownership share we should not protect the short-term Complaint of American Airlines against from the mandatory participation rule interests of travel agencies by allowing British Airways, Order 88–7–11 (July 8, since the vendors through contractual vendors to restrict the distribution 1988). While the past cases each means could prevent such airlines from options of non-vendor airlines. We are involved a foreign airline with an discriminating against a system. also unwilling at this point to propose ownership interest in the CRS, a foreign American Response at 8. We instead ASTA’s solution for this problem, a rule airline responsible for marketing a stated that an airline with a small giving travel agencies the right to system in its homeland would have the ownership share in one system should terminate their CRS contract on short same incentive to reduce its have little incentive or ability to limit its notice so they can switch to a system participation in the U.S. system. participation in a competing system in offering better service. We recognize Although we may impose order to promote the marketing of the that longterm subscriber contracts keep countermeasures under the former system. 57 FR at 43795. travel agencies from switching systems International Air Transportation Fair even if their existing system becomes Competitive Practices Act against a Evidentiary Basis for Our Proposed less desirable for any reason. However, foreign airline whose discrimination Rule we considered this issue at length in our denies a U.S. airline a fair and equal As noted above, we are relying in part last rulemaking and determined that opportunity to compete, a vendor’s use on our last study of airline marketing longer term contracts could be of contract terms preventing that kind of issues, Airline Marketing Practices, and economically efficient and enable travel discrimination can be more effective our findings in our last CRS rulemaking. agency subscribers to obtain lower CRS and more likely to prevent disputes We believe that the CRS and airline prices. 57 FR at 43825. We prefer not to between the United States and foreign businesses have not changed in ways reopen that issue, at least not until after governments. 57 FR at 43819. Our that would undermine the findings we complete our current study of the mandatory participation rule, moreover, made in the study and the rulemaking CRS business and related airline only covers airlines owning five percent that are relevant to this rulemaking. We marketing issues. or more of the equity of a system note, moreover, that none of the Potential Unfair Conduct by Foreign operating in the United States. comments in this proceeding contends Airlines. American has raised a We are unwilling to deny Alaska’s that changes in these industries have legitimate concern over one possible petition to preserve Sabre’s ability to affected our earlier conclusions. If any effect of Alaska’s rule proposal. prevent unfair practices by foreign parties believe that developments over American contends that the parity airlines, since the parity clauses injure the last three years have affected those clauses increase CRS competition in CRS and airline competition within the findings, they may, of course, say so in international markets by keeping foreign United States. Nonetheless, allowing a their comments. airlines from reducing their system to enforce a parity clause against We have also decided to act on participation in a U.S. system in order airlines that own or market a competing Alaska’s petition without waiting for the to promote the marketing of systems CRS may be reasonable. We ask for completion of our current study of affiliated with those foreign airlines. As comments on whether the proposed rule airline marketing practices, the CRS an example, American cites Avensa, a should be modified to prevent the business, and the rules adopted in 1992, major Venezuelan airline, which is potential harm cited by American, which was begun by Order 94–9–35 reducing its participation in Sabre to the perhaps by barring airline parity clauses (September 26, 1994). Since the parity Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Proposed Rules 42207 clauses seem to frustrate competition participation in Sabre, although it and conduct transactions as efficiently without a legitimate reason, we doubt prefers not to purchase some as before. That loss in efficiency would that our ultimate decision on Alaska’s enhancements from Sabre that it may be significant for an agency only if the petition would be affected by the wish to purchase from other systems. airline provided a substantial amount of findings of our study. Any party, of The Department does not believe that the airline service in the area where the course, may present any relevant there are any alternatives to this agency conducts its business. Since the information to us in its comments. proposed rule which would accomplish system almost certainly would still be the goal of giving each participating able to provide some information and Regulatory Process Matters carrier (other than carriers with a enable the agency to conduct some Regulatory Assessment significant ownership interest in a CRS, transactions through the system, the which remain bound by section This rule is a significant regulatory agency would still obtain some of the 255.7(a)) the ability to choose its level action under section 3(f) of Executive efficiency advantages of using a CRS as of participation in each system. to that carrier. Furthermore, we do not Order 12866 and has been reviewed by The costs and benefits of the proposed the Office of Management and Budget expect many airlines to substantially rule appear to be unquantifiable. The reduce their participation level, so the under that order. Executive Order 12866 Department asks interested persons to requires each executive agency to likelihood that many travel agencies provide information on the costs and would be significantly affected appears prepare an assessment of costs and benefits. benefits under section 6(a)(3) of that small. This rule does not impose unfunded In addition, the proposed rule should order. The proposal is also significant mandates or requirements that will have under the regulatory policies and encourage airlines and other firms to any impact on the quality of the human develop alternative means of procedures of the Department of environment. Transportation, 44 FR 11034. transmitting information on airline The proposed rule should benefit Initial Regulatory Flexibility Analysis services and enabling travel agencies to carry out booking transactions. In the competition and innovation. It would The Regulatory Flexibility Act of long term these developments would give non-owner participating airlines a 1980, 5 U.S.C. 601 et seq., was enacted greater ability to choose the distribution by Congress to ensure that small entities benefit travel agencies. Our proposed rule contains no direct methods that best meet their needs. The are not unnecessarily and reporting, record-keeping, or other proposed rule also would not require disproportionately burdened by compliance requirements that would any CRS to change its business methods government regulations. The act affect small entities. There are no other in a way which impose a significant cost requires agencies to review proposed federal rules that duplicate, overlap, or burden on the system. The rule would regulations that may have a significant merely give participating carriers more conflict with our proposed rules. economic impact on a substantial Interested persons may address our flexibility in choosing among the number of small entities. For purposes tentative conclusions under the participation levels offered by a vendor, of this rule, small entities include Regulatory Flexibility Act in their although the exercise of that flexibility smaller U.S. and foreign airlines and comments submitted in response to this could reduce the revenues of a system. smaller travel agencies. Our notice of notice of proposed rulemaking. We doubt that our rule will significantly proposed rulemaking sets forth the The Department certifies under affect the vendors’ revenues, since an reasons for our consideration of Alaska’s section 605(b) of the Regulatory airline lowering its level of participation rule proposal and the objectives and Flexibility Act (5 U.S.C. et seq.) that this in a system will still be paying fees to legal basis for our proposed rule. regulation will not have a significant that system, and the system will incur The proposed rule will, as explained economic impact on a substantial lower costs serving that airline. It also above, give more flexibility to smaller number of small entities. seems unlikely that many airlines will non-owner airlines by barring the use of choose to radically lower their airline parity clauses. When a system Paperwork Reduction Act participation level in some but not all imposes a parity clause, the clause This proposal contains no collection- systems. prevents an airline participating in the of-information requirements subject to If some airlines used the rule to system from participating in that system the Paperwork Reduction Act, Public reduce their level of participation in one at a lower level than its participation Law No. 96–511, 44 U.S.C. Chapter 35. or more systems, the travel agencies level in any other system. If we make using those systems would be affected, the clauses unlawful, airlines could Federalism Implications since their operations would be choose different levels of participation The rule proposed by this notice will somewhat less efficient. However, we in different systems. Smaller non-owner have no substantial direct effects on the expect that an airline reducing its level airlines would then have a better States, on the relationship between the of participation will take steps to offset opportunity to choose how they will national government and the States, or much of the impact on travel agencies. distribute their services and thus a on the distribution of power and If a system offers a level of service like greater ability to control their costs. responsibilities among the various Sabre’s Basic Booking Request, Although the proposed rule would levels of government. Therefore, in moreover, the agencies using that CRS not directly affect travel agencies, it accordance with Executive Order 12812, could still make bookings through the could affect the operations of smaller we have determined that the proposed CRS on the airline. The only agencies travel agencies. If an airline reduces its rule does not have sufficient federalism that would be seriously affected would level of participation in one or more implications to warrant preparation of a be agencies in regions where the airline systems without reducing its level of Federalism Assessment. accounts for a substantial portion of the participation in all of the systems, area’s airline service. And again, we agencies using a system in which the List of Subjects in 14 CFR Part 255 doubt that many airlines will choose to airline reduced its level of participation Air carriers, Antitrust, Reporting and exercise this option to drastically reduce would not be able to operate as recordkeeping requirements. their level of participation. Alaska itself efficiently as before, since they will be Accordingly, the Department of has decided not to reduce its level of unable to obtain as much information Transportation proposes to amend 14 42208 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Proposed Rules

CFR part 255, Carrier-owned Computer Airlines, Alaska Airlines, and Midwest owner. Our rules, like the Board’s rules, Reservations Systems as follows: Express Airlines. accordingly prohibit each CRS from DATES: Comments must be submitted on using factors related to carrier identity PART 255Ð[AMENDED] or before October 15, 1996. Reply in editing and ranking airline services in 1.The authority citation for part 255 comments must be submitted on or its displays. Section 255.4. While our display rules also impose continues to read as follows: Authority: before November 12, 1996. some other restrictions on CRS displays 49 U.S.C. 1301, 1302, 1324, 1381, 1502. ADDRESSES: Comments must be filed in Room PL–401, Docket OST–96–1145 in order to reduce the likelihood of bias, 2. Section 255.6 is amended by our rules generally do not regulate the adding paragraph (e) to read as follows: (49812), U.S. Department of Transportation, 400 7th St. SW., criteria used by each system to edit and § 255.6 Contracts with participating Washington, DC 20590. Late filed rank the airline services shown in its carriers. comments will be considered to the displays. In particular, we have not * * * * * extent possible. To facilitate prescribed the display algorithm that (e) No system may require a carrier to consideration of comments, each each system must use (the algorithm is maintain any particular level of commenter should file twelve copies of the set of rules for editing and ranking participation in its system on the basis its comments. airline services in a particular display). In our last CRS rulemaking we declined of participation levels selected by that FOR FURTHER INFORMATION CONTACT: to adopt stronger rules on CRS displays, carrier in any other system. Thomas Ray, Office of the General in part because we believed that the Counsel, 400 Seventh St. SW., Issued in Washington, DC, on August 8, systems’ competition for subscribers Washington, DC 20590, (202) 366–4731. 1996. (the travel agencies using a CRS) would Federico F. Pen˜ a, SUPPLEMENTARY INFORMATION: Airline keep each system from offering Secretary of Transportation. travelers in the United States usually irrational displays designed to gain [FR Doc. 96–20737 Filed 8–13–96; 8:45 am] rely upon travel agents to advise them additional bookings for its owner on airline service options and to book BILLING CODE 4910±62±P airlines. airline seats. Travel agents in turn Recent experience suggests that the largely depend on CRSs to determine systems’ competition for subscribers 14 CFR Part 255 what airline services and fares are may not adequately check the desire of available in a market, to book seats, and the airline owners of each system to [Docket No. OST±96±1145 [49812]; Notice to issue tickets for their customers. create displays that will increase their No. 96±21] Travel agents rely so much on CRSs airline bookings, even if those displays because they can perform these RIN 2105±AC56 list airline services in a way that is functions much more efficiently than contrary to consumer preferences. We Fair Displays of Airline Services in any other means currently available. are therefore proposing to revise our Computer Reservations Systems Each of the CRSs operating in the rules on CRS displays. One rule would (CRSs) United States is owned by, or is require each CRS to offer a display that affiliated with, one or more airlines, does not give on-line connections a AGENCY: Office of the Secretary, each of which has the incentive to use preference over interline connections. Transportation. its control of a system to prejudice the The other rule would require that any ACTION: Notice of proposed rulemaking. competitive position of other airlines. display offered by a system be based on We therefore found it necessary to adopt criteria rationally related to consumer SUMMARY: The Department is proposing regulations governing CRS operations, preferences. As an alternative to the to adopt two rules to further ensure that 14 CFR Part 255, in order to protect latter proposal (or as an additional rule), travel agents using computer competition in the airline industry and we are also asking for comments on a reservations systems (CRSs) can better to help ensure that consumers obtain possible rule prohibiting displays that obtain a fair and complete display of accurate and complete information on neither use elapsed time as a significant airline services. One proposed rule airline services. 14 CFR Part 255, factor in selecting flights from the data would require each CRS to offer a adopted by 57 FR 43780 (September 22, base nor give single-plane flights a display that lists flights without giving 1992), after publication of a notice of preference over connecting services in on-line connections any preference over proposed rulemaking, 56 FR 12586 ranking flights. interline connections. The second (March 26, 1991). Our rules readopted In considering these issues, we are proposed rule would require that any and strengthened the rules originally relying in large part on the findings display offered by a system be based on adopted by the Civil Aeronautics Board made in our 1991–1992 rulemaking, in criteria rationally related to consumer (‘‘the Board’’) and published at 49 FR the Board’s rulemaking, and in our last preferences. As an alternative to the 11644 (March 27, 1984) (the Board was study of the CRS business, Airline latter proposal (or as an additional rule), the agency that formerly administered Marketing Practices: Travel Agencies, the Department is also proposing to bar the economic regulatory provisions of Frequent-Flyer Programs, and Computer systems from creating displays that the Federal Aviation Act, now Subtitle Reservation Systems, prepared by the neither use elapsed time as a significant VII of Title 49 of the U.S. Code). Secretary’s Task Force on Competition factor in selecting flights from the data One of our major goals in adopting the in the Domestic Airline Industry base nor give single-plane flights a rules was to assure that CRS displays (February 1990) (Airline Marketing preference over connecting services in would provide an accurate and Practices). That study and our ranking flights. The Department believes complete display of airline services rulemaking notices present a detailed that these rules are necessary to promote when a travel agency customer analysis of CRS operations and their airline competition and ensure that requested airline information. When the impact on airline competition and travel agents and consumers can obtain CRSs were unregulated, each system consumers. We are proposing to impose a reasonable display of airline services. biased its display of airline services in additional requirements on CRS The Department is acting on the basis of favor of its airline owner’s flights in displays because our reexamination of informal complaints made by Frontier order to generate more bookings for its CRS issues and further experience with Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Proposed Rules 42209

CRS practices have caused us to believe additional screens of information. The airline services, the Board adopted that further regulation is necessary, CRS therefore must use some method several other rules related to CRS despite our finding to the contrary in for ranking flights. displays. These rules required each the previous rulemaking. Travel agents are more likely to book system, among other things, to use a We have also relied on the pleadings a flight when it appears on the first minimum number of connect points in filed in Docket 48671 in connection screen of the display, and the flight constructing displays of connecting with Galileo’s use of its exemption most often booked is the first flight services for any market and, on request, authority to change the display of shown on the first screen. The first to give participating airlines and single-plane flights in a way that flights displayed are booked more subscribers a description of its display assertedly benefits the interests of frequently in part because those flights algorithms. Galileo’s principal owners, United Air are likely to be the flights that best meet The Board determined that these rules Lines and USAir, at the expense of the customer’s needs, but, as the airlines were necessary because travel agencies competing airlines like Alaska Airlines owning the systems have long known, and their customers could neither and Midwest Express Airlines, and those flights will also be booked more prevent the systems from offering biased denies travel agents using Galileo and often merely because of their better displays nor offset the effect of bias. The their customers a useful display of display position. 56 FR at 12608. airlines participating in a system—the airline services. Given the importance of CRSs to airlines which paid fees in order to have airline marketing, the airlines owning their services displayed and available Background each system have an incentive to use it for sale through a CRS—also did not We have found it necessary to to prejudice the competitive position of have the power to keep the systems regulate CRSs because of their rival airlines. Downgrading the display from biasing their displays. 49 FR at predominant role in the marketing of position of the flights operated by 32543–32544, 32547–32548. airline services to consumers. Travel competing airlines would be an effective The Board’s rules did not end efforts agents sell about 70 percent of all airline method of distorting airline competition by the airlines controlling the CRSs to tickets sold in the United States. Travel if there were no CRS rules. As the Board improve the display position of their agencies generally hold themselves out found, before CRS displays were own flights at the expense of the flights as neutral sources of travel information regulated, each of the airline-owned operated by competitors. First, the rather than as promoters of the services systems biased its displays in favor of Board’s rules applied only to each of one or a few airlines, so travelers rely the owner airline. At least one of the system’s principal display and did not on them for impartial advice on airline systems, Apollo, was attempting to regulate other displays offered by a CRS. service options. 57 FR at 43782. make its bias both more effective and Some systems created biased secondary To determine what airline services are less visible to travel agents. Systems displays in order to regain the benefits available when a customer requests sometimes used display bias to of display bias. This caused the information, travel agents usually rely prejudice specific airline competitors as Department to obtain each system’s on a CRS, because the CRSs provide well. For example, Sabre had imposed agreement not to offer biased secondary information on the services offered by a substantial display penalty on all of displays. Marketing Practices at 81–82. the great majority of airlines more New York Air’s flights in order to force We later amended the rules to extend efficiently than any other source. 56 FR New York Air out of one important the prohibition on display bias so that at 12587. Most travel agency offices, American market. 56 FR at 11656, it barred biased secondary displays. 57 moreover, rely entirely or 12593. Consumers obviously suffer FR at 43802. predominantly on one CRS rather than when a system hides or eliminates Another example of CRS use multiple CRSs. 57 FR 43783. information on potentially attractive manipulation involved flight times. Each of the four CRSs operating in the service options. Since the systems commonly ranked United States is owned by one or more flights on the basis of elapsed time, airlines or airline affiliates. The parent Regulatory Background: The Board’s some airlines allegedly began corporation of American Airlines owns Rulemaking and Subsequent Events publishing schedules with the largest system, Sabre. Apollo, the The injuries caused consumers and unrealistically short elapsed times so second largest system, is operated by airline competition by display bias were that their nonstop flights would be Galileo International Partnership, which among the factors that caused the Board displayed before the flights of airlines is owned by United Air Lines, USAir, to adopt rules regulating CRS using accurate schedules. To stop this Air Canada, and several European operations. In adopting its rules the abuse each system agreed that it would airlines. Worldspan is owned by Delta Board relied primarily on its authority no longer rank nonstop flights on the Air Lines, Northwest Airlines, Trans to prevent unfair methods of basis of elapsed time. Airline Marketing World Airlines, and Abacus, a group of competition and unfair and deceptive Practices at 83. Asian airlines. System One is controlled practices in the marketing of airline Despite the Board’s prohibition of by Amadeus, a major European CRS transportation under section 411 of the carrier-specific display bias and our firm, in which Continental Air Lines has Federal Aviation Act, codified then as later actions on displays, an airline with an ownership interest. 49 U.S.C. 1381, since recodified as 49 an ownership interest in a system could The editing and ranking of airline U.S.C. 41712. 57 FR at 43789–43791. On still give its own flights better display flights in creating CRS displays are review the Seventh Circuit affirmed the positions by choosing facially-neutral important because a flight’s display Board’s prohibition of display bias (and display criteria matching the position affects the number of bookings its other CRS rules). United Air Lines v. predominant characteristics of its airline made on the flight. No system can CAB, 766 F.2d 1107 (7th Cir. 1985). operations. While other airlines with display all of the available airline The Board’s principal rule on CRS similar operational characteristics services in most markets on a single displays prohibited each system from would also benefit, those airlines that screen, for a CRS can display only five using carrier identity as a factor for had chosen different strategies would or six flights on each screen. If a travel editing and ranking airline services. To suffer, although that result was not agent wants to see additional service reduce the likelihood of bias and inevitably unfair. The Justice options, the agent must call up incomplete or misleading displays of Department thus stated in its initial 42210 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Proposed Rules comments in our last reexamination of creating the best possible display. We review and second-guess system the CRS rules, Comments of the also believed that the vendors’ ability to decisions on display criteria. We also Department of Justice on the Advanced choose their display criteria was not considered the proposal unnecessary, Notice of Proposed Rulemaking at 17: causing significant competitive harm in since it ‘‘would be unlikely to lead to [V]endors continue to manipulate their the airline industry. 56 FR. at 12609. significant changes in the vendors’ algorithms to improve their own flights’ While we did not propose a rule display algorithms.’’ 57 FR at 43803. display relative to that of other carriers. The banning the use of an on-line But, while we chose not to require CRS vendors select for their algorithm the preference, we invited the parties to vendors to demonstrate that they were particular non-carrier-specific criteria, such comment on whether the preference basing their algorithms on consumer as elapsed time, departure time, circuitry, should be banned. We noted that giving preferences, we expressly stated that the and connect time, that due to differences in on-line connections a preference over vendors would not have unlimited the route configurations and schedules of carriers, optimize the position of their interline connections was consistent discretion to select display criteria. An airlines’ flights in the display. with consumer preferences, since airline dissatisfied with a vendor’s travellers generally preferred on-line algorithm could complain to us. 57 FR While the Board chose not to adopt service. 56 FR at 12609. Nonetheless, we at 43803. detailed rules on CRS displays, also recognized that the systems’ use of In addition, we found that our new European governments took a different the preference could overstate travellers’ rule on third-party hardware and approach when they adopted their own usual preference for on-line service. We software, § 255.9, would give travel CRS rules. The European Union’s rules, further noted that the systems’ use of agencies the ability to use software which were derived from guidelines on-line preferences could put small programs that could improve the quality adopted by the European Civil Aviation airlines at a competitive disadvantage, of airline service displays. If travel Conference (‘‘ECAC’’), impose more 56 FR at 12610: agencies obtained programs that detailed regulations than did either the reconfigure the information provided by The on-line preference may also unduly Board in its rulemaking or we when we a system, they could create displays that revised the Board’s rules in 1992. strengthen the vendor carriers’ competitive position against smaller U.S. carriers, since might be more useful for their customers Insofar as displays are concerned, the the vendors have nationwide route systems by better reflecting consumer travel European Union rules allow each with several hubs that enable them to offer preferences. 57 FR at 43797. system to offer only one display, the so- on-line service to points throughout the As explained below, recent called ECAC display, unless the travel nation. Smaller carriers, on the other hand, developments in the CRS business have agency customer’s needs require the use cannot match that service since they have caused us to question the validity of our of a different display. The ECAC display few hubs and often operate only in one previous finding that no additional lists all nonstop flights first, followed by region. regulation of CRS displays was needed. single-plane flights (such as one-stop In their comments on our notice of But before explaining the basis for our flights), with connecting services being proposed rulemaking, some airlines doubts, we will describe the algorithms shown last. The display may not use an argued that stricter display rules were offered by each system. on-line preference. essential because the systems’ owners With respect to one provision in the were using ranking and editing criteria rules, we have allowed three of the Regulatory Background: The that favored their own services at the systems to provide a display that differs Department’s Rulemaking expense of competing services. from the rules’ requirements. We have Several years ago we held a ECAC and three airlines asked us to given several systems exemptions from proceeding to reexamine the Board’s prescribe the algorithm that would be one provision of our rules, § 255.4(b)(1), CRS rules. We determined to readopt used for all CRS displays. We declined which requires that the system use the them with several changes designed to to take such action, largely on the basis same algorithm for displaying services promote competition in the airline and of the reasoning set forth in the notice in all markets. Orders 90–8–32 (August CRS businesses. 57 FR 43780 of proposed rulemaking. However, we 14, 1990) and 94–3–44 (March 24, 1994) (September 22, 1992) and 56 FR 12586 also noted that the systems’ competition (Sabre); Order 93–8–2 (August 13, 1993) (March 26, 1991). Like the Board, we for travel agency subscribers appeared (Galileo); Order 91–7–41 (July 26, 1991) adopted the CRS rules under our to make additional display regulation (Worldspan). As a result, as described authority to prevent unfair methods of unnecessary: ‘‘[S]ubscriber demands below, some of the systems use one competition and unfair and deceptive seem to be causing vendors to offer algorithm for airline services within practices in the marketing of airline travel agents alternative displays using North America and a different algorithm transportation under section 411 of the some algorithms similar to European for services not entirely within North Federal Aviation Act, now 49 U.S.C. standards.’’ 57 FR at 43803. America, such as transatlantic flights. 41712. 57 FR at 43789–43791. We also decided not to prohibit the Among the issues considered in our use of an on-line preference. Despite our The Vendors’ Current Algorithms rulemaking were CRS display issues. concern with the preference’s potential Sabre. Sabre offers two displays, a Our notice of proposed rulemaking impact on U.S. airline competition, no category display and an integrated recognized, as the Department of Justice U.S. airline filed comments opposing display. Sabre’s category display ranks pointed out, that vendors could be the preference, and one smaller airline services as follows: nonstop choosing seemingly neutral display airline—Alaska Airlines—filed flights are listed first, direct flights criteria in order to improve the display comments supporting the preference. 57 (single-plane flights) are listed second, position of their own flights. However, FR at 43804. and connections are listed last. Sabre we did not propose a rule prescribing Finally, we declined to adopt the uses several factors to rank flights the ranking and editing criteria that proposal by the Orient Airlines within each category, such as must be used in CRS displays. We Association that we require each system displacement time (the difference doubted that there was a single best way to demonstrate that its ranking and between the flight’s departure time and for displaying airline services, and we editing criteria met consumer demands. the traveller’s requested departure time). agreed with the Justice Department that We thought that that specific proposal Sabre also uses elapsed time to a limited it would be inefficient for us to try was unwise, since it could require us to extent in ranking airline services other Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Proposed Rules 42211 than nonstop flights (and in selecting The display offered travel agents in these complaints only involve Apollo, flights from the data base for the Europe using Apollo’s affiliated system, we believe that a rulemaking is display), although flights whose elapsed Galileo, complies with the ECAC appropriate because other systems may time does not exceed the elapsed time display guidelines. Like Apollo’s U.S. be considering the adoption of similar of the fastest service in that category by ECAC display, it lists all nonstop flights display practices. Apollo’s conduct more than 90 minutes are treated as first, but, unlike the U.S. display, it then suggests that travel agent and consumer having the same elapsed time as the lists all single-plane flights before desires for reasonable displays do not fastest service. Sabre uses this display showing any connecting services. provide as much of a check on for both international and domestic Some airlines and many travel agents unreasonable CRS displays as we had services, and the display has used an believe that both of the Apollo displays thought and that systems may therefore on-line preference only for ranking offered U.S. travel agents unreasonably create displays that serve the interests of connecting services within North rank airline services in order to give their airline owners while possibly America. April 20, 1994 letter of David Apollo’s airline owners a competitive denying the system’s users a reasonable Schwarte, Associate General Counsel, advantage over other airlines. These ranking and display of airline services. Docket 49318. airlines and travel agents consider the We will discuss first the on-line Sabre’s other display—the integrated algorithms unreasonable because they preference used by Apollo and other display—is available only if both the give no preference to single-plane flights systems and then the problems caused origin and the destination of the over connecting services and select by Apollo’s other display practices. traveller’s itinerary are within North flights from the database in a manner The Systems’ On-line Preference America. Like the category display’s which gives a better display position to algorithm, the algorithm uses factors flights with less displacement time, as Frontier Airlines has complained that like displacement time and elapsed time explained below. As a result, two Apollo’s display algorithm gives an to rank flights and to determine which airlines—Alaska and Midwest Express— unreasonable preference to on-line flights in the data base are displayed, and a major travel agency trade connections and that this preference is but it does not automatically show association have complained about the worsened because connections between connecting services after all nonstop Apollo displays, as described below. code-sharing partners (two airlines flights and single-plane flights. The Worldspan. Worldspan also offers using one airline’s code for both algorithm ranks each service on the U.S. subscribers two types of displays, airlines’ service) are treated as on-line basis of the penalty points assigned the one referred to as an EEC display, the connections. Frontier considered flight on the basis of how well the flight other referred to as a U.S. display. The Apollo’s display unfair because it satisfies the ranking criteria; for so-called EEC display is consistent with injured Frontier’s ability to compete in example, a flight with a departure time the European CRS rules (and so has no North Dakota markets. Frontier was close to the traveller’s requested on-line preference). The U.S. display offering jet service from North Dakota departure time will receive fewer that comes in two variants. In one points to Denver in competition with a penalty points than a flight with a variant of the U.S. display (and the only commuter airline operating under departure time that is farther away from version available for airline services not United’s code. Since the commuter the requested departure time. When a entirely within North America), the airline’s flights were listed in CRSs connecting service has fewer penalty display ranks airline services by under United’s two-letter code, points than a nonstop flight, the category but uses an on-line preference. connections between the commuter algorithm will display it before the In the other variant, which can be airline and United at Denver, United’s nonstop flight. The integrated display used only for services entirely within hub, were treated as on-line connections uses an on-line preference. North America, the algorithm assigns and given preference in Apollo’s display Apollo. Apollo also offers travel penalty points to different services on over connections between Frontier and agents in the United States two displays, the basis of such factors as displacement United at Denver. United had provided the Basic Display and the U.S. ECAC time, elapsed time (except that all most of the nonstop service to points Display. The Basic Display ranks flights nonstop flights are treated as having the beyond Denver, so the poor display by category—first nonstop flights, then same elapsed time), numbers of stops, position given the connections between single-carrier ‘‘one-stop service’’ (Apollo and number of connections required. Frontier and United made it difficult for treats as one-stop service both one-stop The algorithm uses an on-line Frontier to obtain bookings from flights and single connections between preference. consumers who travelled to or from two nonstop flights), then interline System One. System One, like North Dakota points over Denver. Since ‘‘one-stop service’’, then on-line ‘‘two- Worldspan, offers an ECAC display that Frontier, unlike the United commuter stop service’’, then interline ‘‘two-stop is consistent with the European CRS airline, used jet aircraft to serve the service’’, then on-line service with three rules. System One also offers a second Denver-North Dakota routes, Frontier or more stops, and finally interline display, the departure time display, considered its service more attractive to service with three or more stops. which is also a category display. The travellers. According to Frontier, Despite its name, Apollo’s U.S. ECAC departure time display ranks airline travellers nonetheless often were Display does not apply ECAC’s display services in the following order: nonstop unaware of Frontier’s service because guidelines. Like the Basic Display, the flights, then single-plane flights, then Apollo’s penalty for interline U.S. ECAC Display displays flights by two-segment nonstop on-line connections gave an unreasonably poor category: nonstop flights are listed first, connections, then two-segment nonstop display position to connections over then one-stop services (that is, one-stop interline connections, and so on. Denver between Frontier and United or single-plane flights and connections another airline. between two nonstop flights) are Problems With Current CRS Displays While a system’s use of an on-line displayed, followed by two-stop As noted, several airlines and a major preference is usually consistent with the services, with services involving three travel agency trade association, the preferences of many travellers, an on- or more stops being shown last. This American Society of Travel Agents line preference also benefits the airlines display does not use an on-line (‘‘ASTA’’), have complained about with CRS ownership interests, since it preference. Apollo’s display practices. Although reflects the characteristics of their 42212 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Proposed Rules services. Each of those U.S. airlines is that always give on-line connections a only elapsed time in the U.S. ECAC one of the largest U.S. airlines and preference over interline connections Display. operates a hub-and-spoke route system, will at times interfere with a travel The current Apollo algorithms replace that is, it operates a large number of agent’s ability to find the best service for algorithms that placed nonstop flights flights connecting over a hub and the agent’s customers. and single-plane flights in the top relatively few point-to-point flights that category and connecting services in a do not either depart from or arrive at a Apollo’s Treatment of Single-Plane lower category. Since Apollo now puts hub. An airline operating a hub-and- Flights single-plane flights in the same category spoke route system has little interest in The other complaint involving as connecting services and uses a capturing interline traffic, since its route Apollo’s displays originated in the method for selecting flights from the structure and flight schedules are dissatisfaction of Alaska Airlines, database for each playpen that gives designed to keep travellers on its own Midwest Express Airlines, and the heavy weight to displacement time, connecting flights when nonstop and American Society of Travel Agents Apollo’s current displays give a single-plane flights are unavailable. (‘‘ASTA’’), the largest travel agent trade relatively high display position to Such an airline benefits from CRS association, with Apollo’s treatment of connecting services leaving close to the displays that show on-line connections single-plane services. In essence, Apollo traveller’s requested departure time and before interline connections. has created displays that give a better a low position to single-plane flights We recognize, as we have stated display position to the hub-and-spoke involving a greater displacement time, before, that consumers generally prefer operations of its major U.S. owners, even if the latter involve less elapsed on-line services over interline services. United and USAir, and a poorer time. 56 FR at 12609. However, a system’s use position to the services of carriers like When Apollo downgraded the of an on-line preference also promotes Alaska Airlines and Midwest Express position of single-plane flights, two the interests of its airline owners, and a Airlines that do not operate a hub-and- airlines that operate a relatively large system’s preference may overstate the spoke route system. number of single-plane flights and do desirability of on-line service. Apollo’s algorithms often give an not have large hub-and-spoke systems, Alaska Airlines and Midwest Express We believe that Apollo’s treatment of unreasonably low display position to interline connections, in combination Airlines, urged us to compel Apollo to single-plane flights that are more with Apollo’s other ranking and editing restore its earlier placement of single- convenient for the traveller than criteria, may cause consumer harm. The plane flights in the same category as connecting services given a better on-line preference used in the Apollo nonstop flights. ASTA supported their display position. This results from the Basic Display makes it harder for travel request. They alleged that Galileo undue importance given displacement agents to find interline connections, changed the displays in order to benefit time (the time difference between the even though such connections at times its U.S. airline owners, United and traveller’s requested departure time and may offer the best service for USAir. Those two airlines rely on hub- the departure time of the flight being consumers, since the display shows all and-spoke systems. In the markets they displayed) in ranking flights. on-line connections in a category (for serve, some of their flights will example, services involving a single Although the complaint involves only inevitably have departure times close to connection) before displaying any Apollo’s displays, the material any traveller’s requested departure time interline connections in that category. submitted by vendors and airlines in and thus will gain a high display Since consumers usually prefer on-line our current CRS study suggests that position solely because of the undue connections, giving on-line connections another vendor may be considering weight given displacement time when a preference in CRS displays will often creating a similar display, a factor that flights are selected from the database. be rational. In some markets, however, makes it appropriate to address this Alaska and Midwest Express, on the many consumers may consider an issue (and the issue informally raised by other hand, operate a smaller number of interline connection the best service. Frontier) through a rulemaking single-plane flights that may not depart Frontier, for example, was offering proceeding. as close to a traveller’s requested service with jet aircraft, which many Apollo offers U.S. travel agents two departure time but which would still be travellers prefer to the commuter aircraft different displays, the Basic Display and preferred by most travellers if their operated by United’s code-sharing the U.S. ECAC Display. The algorithms arrival times are comparable to those of affiliate (of course, other travellers may for both displays build displays in the competing connecting services. prefer the more frequent flights and on- groups (work areas or ‘‘playpens’’) of Travellers tend to prefer the single- line service offered by United’s code- sixteen flight items (a flight item is a plane flights because they typically sharing partner). In addition, as we nonstop flight, a single-plane flight, or require less travel time than connecting discussed in our last rulemaking, the one of two or more connecting flights). services and because they avoid the systems’ on-line preferences may well In creating the group of sixteen flight inconveniences and risks of missed overstate the attractiveness of on-line items, Apollo proceeds first by category. connections and lost baggage that can connections. On-line connections Thus all nonstop flights are displayed arise when travellers use connecting should normally appear before interline before any other services. The next services. Alaska estimated that it may connections in a display that uses category includes both one-stop flights lose $15 million in potential revenues elapsed time as a principal ranking and single connections. Within each each year as a result of the new Apollo factor, even without an on-line category the system uses only displays, while Midwest Express preference, because the airline offering displacement time (the time difference estimated that its annual revenue losses on-line connecting service usually between the traveller’s requested would equal several million dollars. See coordinates the flight arrival and departure time and the flight’s departure Order 94–8–5 (August 3, 1994) at 17. departure times to minimize layover time) in selecting flights from the As a result of the initial complaints time at the intermediate airport. 56 FR database for each work area. In ranking made by Alaska and Midwest Express, at 12609. Since on-line connections do the flight items within each work area, we partially revoked the exemption that not necessarily offer the best service, Apollo uses both displacement time and Galileo had obtained in order to make however, the systems’ use of algorithms elapsed time in the Basic Display and the Basic Display usable only for Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Proposed Rules 42213 services within North America, Order screens after the less convenient connections. known to the agent at all.’’ ASTA Reply 94–8–5 (August 3, 1994). When Apollo Midwest Express Comments (December 5, (December 19, 1994) at 2–3, Docket responded to that order with display 1994) at 5. 48671. Orange County to Seattle. Alaska operated We directed Galileo to support its changes that generated further a one-stop flight that departed at 1:59 p.m. complaints from Alaska, Midwest and arrived at 5:42 p.m., while Reno Air claims that it changed the Apollo Express, and ASTA, we required Galileo operated a one-stop flight that departed at displays in order to benefit travel agents to provide information on its 2:10 p.m. and arrived at 6 p.m. An agent and their customers. Order 94–1–9 justification for changing the treatment using the Apollo Basic Display to see what (November 15, 1994) at 5. Galileo of single-plane flights and on related service was available with a 1 p.m. departure primarily claims that travel agents issues. Order 94–11–9 (November 15, time would not see either of those flights would be disadvantaged if all single- 1994). until the fifth screen, after the display of over plane flights were listed before all three screens of connecting services. The first connecting services, because an agent We have tentatively determined that connecting service listed consisted of a 1:30 Galileo’s ability and willingness to p.m. United flight to Los Angeles connecting must then scroll through the complete create seemingly unreasonable and with a second United flight arriving at Seattle listing of single-plane flights before unfair displays requires us to propose at 6:01 p.m. Among the other connecting seeing any connecting services, even an additional rule on CRS displays. Our services given preference over the two one- though few, if any, of the single-plane proposal, as explained below, would stop flights were connections over Salt Lake flights leave at the time desired by the require CRSs to use editing and ranking City and Phoenix, each of which departed agency customer. Galileo Response to criteria in their displays that reasonably from Orange County about one hour before Order 94–11–19 at 8–9. Galileo, either one-stop flight and arrived at Seattle at however, provided no evidence that reflect consumer preferences. Before least 55 minutes after Reno’s flight. Galileo discussing our proposal we will explain Response to Order 94–11–9 (November 23, travel agents complained when its why Apollo’s displays appear to be so 1994). displays listed all single-plane flights before displaying any connections. troublesome. In cases like these examples, the First, the information submitted by Moreover, as we noted earlier in that Apollo displays harm competition by the parties in Docket 48671 included the proceeding, few markets have many favoring the services offered by the following four examples where Galileo’s single-plane flights, according to the carriers that rely on hub-and-spoke algorithm for the Apollo Basic Display statistics provided by Galileo itself. networks, which are usually the largest produced an unreasonable display of Airlines operate an average of only 1.5 carriers, and disfavoring the flights airline services. single-plane flights each day in each of offered by airlines that do not rely so the hundred largest domestic city-pair Seattle to Burbank. Alaska operated two much on hub-and-spoke networks. markets. Order 94–8–5 at 16. Since so one-stop flights that each had an elapsed When the better single-plane service is 1 few single-plane flights are offered in time of about 3 ⁄4 hours and left Seattle at displayed after less convenient 1:40 p.m. and 4:15 p.m. However, if a travel most markets, a travel agent wishing to agent requested a display of services in that connecting services, airlines will have see connecting flights instead of single- market with a departure time of 3 p.m., the more difficulty competing for plane flights could easily get to the Alaska flights appeared only on the third passengers on the basis of the merits of connecting service listings. Thus the screen after the display of seven on-line their service. earlier inclusion of single-plane flights connections. The first screen showed three The displays also harm consumers in the same display category as nonstop connections, one operated by Alaska and two and travel agents by making it difficult by United. One of the two United connecting flights could have caused little, if any, for agents to find single-plane flights inconvenience for travel agents. While services left Seattle almost two hours before that are likely to be more attractive for Alaska’s 4:15 flight and arrived at Burbank Galileo cites three markets— sixteen minutes after the Alaska flight. consumers than the connecting services Washington, D.C.-San Francisco, Another United connection given a higher given a better display position. ASTA, a Phoenix-Washington, D.C., and Boston- display position left Seattle more than one major spokesman for travel agents, Greensboro—as examples of how its hour before the 4:15 Alaska flight and arrived states that Galileo’s displays ‘‘make it new displays are easier for travel agents at Burbank almost one hour later than the harder for travel agents to find flights to use, we believe these examples are Alaska flight. October 5, 1994 Letter of meeting the priority goals of air travel unrepresentative and cannot show that Marshall Sinick. consumers.’’ ASTA continues, ‘‘We San Francisco to New Orleans. A travel the new displays’ treatment of single- agent using the Apollo Basic Display with a have never heard or seen an argument plane flights provides better displays in requested departure time of 8 a.m. would not that would overcome the consumer general. see an 8:40 one-stop Delta flight until the benefits of one-stop single-plane service sixth screen; the earlier screens listed over on-line connections and * ** Our Proposed Revisions to the CRS nineteen on-line connections, 18 of which only a compelling reason (which is Display Rules had a longer elapsed time than the Delta difficult to imagine) would warrant Given the apparent unreasonableness flight. One of the connecting services listed displacing such superior services in of Apollo’s current displays, the on the third screen was an 8 a.m. connection favor of on-line connections of longer possibility that other systems may adopt over O’Hare that arrived at New Orleans elapsed time.’’ According to ASTA, similar displays, and the likelihood that more than one hour after the Delta flight. January 12, 1995 Letter of Marshall Sinick. ‘‘[t]ravel agents should not have to every system has created an algorithm Milwaukee to Los Angeles. If a travel agent search through five screens of designed in part to benefit the services requested a display of service departing at 8 information to find a one-stop single of airline owners, we have decided to a.m., the first screen offered by the Apollo plane service with superior elapsed consider changes to the CRS display Basic Display showed two United times to intervening connections,’’ and rules that should give non-vendor connections that arrived at 11:52 a.m. and ‘‘[t]his waste of time is a disservice to airlines (and travel agents) a greater 12:49 p.m. and had elapsed times of 5:42 and agents and their clients with no assurance that they can obtain a fair and 6:39, respectively. Midwest Express operated apparent offsetting benefit.’’ adequate display of airline services. At a single-plane flight in the market that arrived at 11:45 a.m., earlier than either Furthermore, when single-plane flights the same time, however, we do not want United connection, and had a shorter elapsed receive the poor display position cited to limit each system’s ability to offer time, 5:05. That flight, however, did not in Alaska’s examples, ‘‘the existence of different displays to travel agents, since appear until Galileo’s fourth screen, three the one-stop flight may not become travel agents are likely to disagree on 42214 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Proposed Rules the factors that should be emphasized in preference, if, as has been the case, consider complaints that an algorithm’s editing and ranking airline services. Sabre’s displays for services within ranking and editing criteria violate this Travel agents, moreover, must respond North America all use an on-line proposed rule if the system using the to the preferences of their customers, preference. criteria can make a showing that the and different customers will consider The second rule—the requirement challenged criteria are consistent with different factors important in judging that a system’s display criteria be the preferences of a substantial portion the quality of airline services. As rationally related to consumer of travellers. For example, we would not explained, we also do not intend to preferences—should keep systems from investigate complaints that an on-line tightly regulate CRS algorithms. offering unjustifiable displays. Although preference violated the rule, since, as Nonetheless, even though travellers we are proposing to require the criteria shown, an on-line preference is often and their travel agents will disagree on used by a system in constructing an (but not always) consistent with which factors are the most important in algorithm to be rationally related to consumer preferences. Similarly, we choosing airline flights, we think that consumer preferences, we do not intend would be unlikely to investigate a any display made available to travel to embark on an extensive review of complaint that an algorithm was agents should be based on rational CRS editing and ranking criteria. We unreasonable where the displays did not criteria and that at least one display would expect to take enforcement action seem to provide any competitive should rank airline services in a manner under the rule only in cases where a advantage for the airlines controlling the which does not favor the service system was using an algorithm that was system. And on some issues any characteristics of the biggest airlines, likely to mislead a significant number of algorithm’s choice is likely to be which happen to be the owners of each consumers by causing services that arbitrary—one possible example is the of the U.S. systems. would meet the consumers’ travel needs choice of a default time for use as the We propose to revise our current significantly better than other services departure time when the travel agent display rules in two respects. First, we to be displayed after the inferior does not specify a departure time in propose to require each system to offer services, if those criteria appear submitting a customer’s request for a display that does not use an on-line designed to improve the display flight information. Because no algorithm preference in ranking and editing position of the services of the system’s can result in a perfect display of airline connecting services. This display must airline owners. services for every market, we would be be at least as easy to use as any other This proposal should benefit smaller satisfied if there is a rough correlation display offered by the system. We are airlines like Alaska and Midwest between consumer travel preferences proposing to make this display an Express that do not own a CRS and and an algorithm’s editing and ranking alternative to the other displays offered cannot cause a system to adopt criteria. A system could use such by a system, not the primary or default algorithms using ranking criteria evidence as travel agent and traveller display. Secondly, we propose to consistent with the nature of their own surveys or the results of focus groups to require that the criteria used by a system airline operations and inconsistent with demonstrate that the algorithm’s criteria for editing and ranking airline services the nature of competitors’ airline reflect consumer preferences, although in any integrated display be rationally operations. More importantly, the rule we assume that less evidence would related to consumer preferences (under should benefit travel agents and their often be needed to show that the display section 255.4(a), every integrated customers by barring systems from was reasonable. display offered by a CRS must comply using algorithms that make it with our display rules). As noted, unreasonably difficult for travel agents While we find it necessary to consider however, we also request comments on to find the best service for their stricter rules for CRS displays, we a possible alternative (or addition) to customers. That rule, if adopted, should believe it would be unwise for us to this rule, which would prohibit systems force Apollo to change its algorithms, attempt to regulate CRS displays more from creating displays that neither use for we do not see in light of our current closely. Each of the vendors currently elapsed time as a significant factor in knowledge how that system’s current offers different displays to its selecting flights from the data base nor displays could satisfy the rule’s subscribers, and we are unwilling to give single-plane flights a preference requirements. reduce the choices currently available to over connecting services in ranking We do not intend to use our proposed travel agents. Moreover, as we stated in flights. rule requiring displays to be based on our last rulemaking, we doubt that we Our proposal to require each system rational criteria to second-guess all could create a display that would be the to offer a display without an on-line algorithm criteria that airlines find best possible display for all markets. 56 preference will eliminate the ability of objectionable. We would likely find that FR at 12609. one of the large airlines owning a CRS a system had violated the rule only if Our proposal to require that the to force the system to use an on-line the algorithm’s unreasonable ranking of editing and ranking criteria used by preference in all displays of domestic airline flights was likely to cause a each algorithm be rationally related to airline services. That will benefit number of travellers in a number of consumer preferences reverses our airlines like Frontier that depend more markets to choose flights that normal decision in our last rulemaking on a on obtaining interline passengers. As travellers (and travel agents) would similar proposal made by the Orient indicated, Apollo—the target of consider significantly inferior to flights Airlines Association. Our experience Frontier’s complaints—already offers a given a lower display position and if the with Apollo’s displays has convinced display without an on-line preference, display seemed designed to benefit the us, however, that neither the vendors’ the U.S. ECAC Display. However, that competitive position of the system’s competition for subscribers nor other display’s seemingly unreasonable airline owners. The comments filed by factors may be strong enough to keep treatment of single-plane flights and its U.S. and foreign airlines in our last systems from creating unfair displays in heavy reliance on displacement time as major CRS rulemaking demonstrate that order to increase their airline owners’ the basis for pulling services out of the airlines often disagree over which airline revenues. We also doubt that our data base make the display difficult to characteristics of airline services should proposal, if adopted, would use. The rule will also require Sabre to be emphasized in editing and ranking substantially increase our workload or create a new display without an on-line airline services. We probably would not our oversight of CRS operations. Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Proposed Rules 42215

As an alternative to, or in addition to, violate such a requirement, and Apollo’s another system offers lower CRS prices the proposal that editing and ranking own willingness to change displays in or better service. Airline Marketing criteria be based on consumer recent years suggests that Practices at 24–26. preferences, we are also considering the reprogramming would not be costly. When we reexamined CRS regulation addition to the CRS rule of a specific in our last rulemaking, we adopted a Alternatives to Rulemaking prohibition against the kinds of unfair rule, section 255.9, which allows travel displays created by Apollo’s algorithm. As discussed above, we believe that agencies to use third-party software and Under this alternative, the CRS rules vendors can use—and apparently have hardware in conjunction with CRS would prohibit an algorithm that neither used—their discretion to create displays services, subject to certain conditions to uses elapsed time as a significant factor that injure consumers and airline protect the integrity of the system. This in selecting service options from the competition. If consumers, travel rule enables travel agencies to use database nor gives single-plane flights a agencies, and participating airlines programs that can reconfigure the preference over connections in ranking could easily avoid the harm caused by system’s information on airline services. services in displays. Other CRS editing these displays, we would not propose Travel agencies dissatisfied with a and ranking abuses, if not covered by new rules on CRS displays. We system’s display algorithms accordingly the rule, could be pursued in an tentatively find, however, that CRS can purchase software that would create enforcement context under the general users cannot readily do so. a more satisfactory display. 56 FR at prohibition against unfair and deceptive Travel agents could overcome 12605–12606. However, we have no practices and unfair methods of Apollo’s unreasonable ranking of airline evidence that many travel agencies have competition in 49 U.S.C. 41712. services by carefully searching through chosen to use programs that will create Since, to date, the Apollo editing and several screens for each market before displays more useful for consumers. ranking criteria are the only ones on recommending a flight to their customer More importantly, a system’s use of which we have received specific (or by requesting a display of single- an unreasonable and unfair display complaints that they result in unfair plane flights). Travel agents are often harms two other groups—participating displays, it may be wise to limit our pressed for time, however, and do not airlines and consumers—who have no proscription to the immediate and more believe they can afford to spend a lot of ability to offset the harm caused by clear-cut problem. This proposal would time looking for the best service when unreasonable CRS displays. Travel require Apollo to change its displays, doing so involves looking at several agency customers rely on the travel since its current displays do not use screens or taking extra steps. Cf. Airline agent to tell them what services are elapsed time as a factor in selecting Marketing Practices at 69–70. And available, and other airlines have little flights from the database yet give single- Apollo’s treatment of single-plane control over the recommendations made plane flights no preference over flights at times causes one-stop flights to by an agent. As we have found in our connecting services. If Apollo used receive such a poor display position that earlier examinations of the CRS elapsed time as a significant factor in even a diligent agent is unlikely to business, most airlines find it essential selecting flights from the database, search long enough to find the flight, to participate in each system and single-plane flights would receive a especially since the agent may not know therefore have no ability to bargain for better display position since such flights that the single-plane flight even exists. reasonable participation terms. generally require less travel time than ASTA Reply at 2–3. Travel agents could also avoid the Legal Authority for Adopting the connecting services. This proposal Proposed Rules accordingly would no longer cause problem if they requested a display of significantly inferior connecting direct flights only or asked for display Our governing statute authorizes us to services to be given a better display with different departure times. Taking investigate and determine whether any position than single-plane flights these steps, however, involves air carrier or ticket agent has been or is requiring substantially less travel time. additional work that the agent prefers to engaged in unfair methods of Comments on the merits and avoid. Apollo’s owners benefit from the competition or unfair or deceptive drawbacks of the combined displays precisely because they know practices in the sale of air requirements or each alternative, that travel agents often will not transportation. 49 U.S.C. 41712, including the language of the specific undertake the additional work needed formerly section 411 of the Federal prohibition against an algorithm that to offset the unreasonable ranking of Aviation Act (and codified then as 49 does not use elapsed time as a flights offered by Apollo. U.S.C. 1381). Our authority, modelled significant factor in selecting flights Travel agents also cannot avoid one on the Federal Trade Commission’s from the database and does not give system’s poor displays by switching to comparable powers under section 5 of single-plane flights a preference over another system that provides a more the Federal Trade Commission Act, 15 connecting services, are invited. reasonable ranking of airline services. U.S.C. 45, allows us to define practices Since each system provides a display First, the CRS firms’ contracts with that do not violate the antitrust laws as without an on-line preference, at least travel agencies make it difficult for an unfair methods of competition, if they for flights not entirely within North agency to switch systems or to use an violate the spirit of the antitrust laws. America, we doubt that requiring a additional system. The contracts The same statutory provision gives us display without an on-line preference typically last for five years, and an broad authority to prohibit deceptive would impose significant programming agency terminating the contract before practices in the sale of air costs on the U.S. systems. Only Sabre the end of the five-year term must pay transportation. In adopting the original apparently offers no display of North substantial damages to the system. The CRS rules, the Board relied upon both American services without an on-line systems’ contracts use pricing formulas its authority to prohibit deceptive preference. We also do not expect the which give travel agencies lower prices practices and its authority to prohibit proposed requirement that displays be for the CRS but discourage them from unfair methods of competition. The reasonably related to consumer using additional systems. In addition, Seventh Circuit affirmed the Board’s preferences to increase system costs travel agencies often consider it adoption of those rules under what was significantly. Only Apollo currently necessary to use the system of the major then section 411 of the Federal Aviation offers displays that would seem to airline in the agency’s area, even if Act. United Air Lines, 766 F.2d 1107 42216 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Proposed Rules

(7th Cir. 1985). As a result, we may consumers by making it more likely that the goal of giving each participating clearly regulate CRS display practices travel agencies will recommend more carrier a greater opportunity to have its that create a risk that consumers will be convenient airline service. By services fairly displayed in CRSs. deceived. 57 FR at 43791. promoting airline competition, the rule The Department asks interested We are proposing these rules in order would produce additional savings and persons to provide information on the to prevent travel agency customers from other benefits for consumers. costs and benefits. being deceived and to keep the airlines The Department does not have controlling the systems from using their adequate information to enable it to Initial Regulatory Flexibility Analysis control over CRS displays to quantify the potential benefits of the The Regulatory Flexibility Act of unreasonably prejudice the competitive proposed rule. However, giving travel 1980, 5 U.S.C. 601 et seq., was enacted position of other airlines. The proposed agents and their customers a better by Congress to ensure that small entities rules would promote airline ability to find the best available airline are not unnecessarily and competition by ensuring that CRS service can result in substantial disproportionately burdened by displays provide a reasonable and fair consumer savings, as the Justice government regulations. The act ranking of airline services. When a CRS Department noted in its comments in requires agencies to review proposed offers a display that irrationally ranks our last CRS rulemaking. 56 FR 12606. regulations that may have a significant airline services for the benefit of its Moreover, Alaska and Midwest Express economic impact on a substantial airline owners, the CRS makes it more have estimated that Apollo’s display number of small entities. For purposes difficult for airlines to compete on the reduces their revenues by millions of of this rule, small entities include basis of price and service with the dollars each year. If their estimates are smaller U.S. and foreign airlines and airlines controlling the system. The valid, the revised Apollo display is also smaller travel agencies. Our notice of revenue loss estimates provided by causing many travellers to take proposed rulemaking sets forth the Alaska and Midwest Express with connecting services instead of one-stop reasons for our proposal of additional respect to Apollo’s changed displays, if flights that may be more convenient. CRS display rules and the objectives accurate, additionally suggest that an While the Department expects the and legal basis for our proposed rule. unreasonable and unfair display can rule to provide significant benefits, it The proposed rule would, as cause substantial damage to competing does not expect the rule to increase CRS explained above, give smaller airlines a airlines. costs significantly. The Department does better opportunity to obtain a fair When consumers book airline flights not have sufficient information to display position in CRSs, all of which on the basis of information provided by estimate the systems’ programming are currently owned or affiliated with an irrational display of airline services, expenses for complying with the one or more large U.S. and foreign they are likely to book inferior airline proposed rules. However, a rule airlines. Smaller airlines would then be services because the display has hidden requiring each system to offer a display likely to obtain more bookings and superior services. Our statute gives us without an on-line preference should therefore compete more successfully the authority to prohibit conduct which not impose significant programming with larger airlines. has the potential to cause this kind of expenses on the systems, since each The proposed rule would also benefit consumer deception. system currently has a display, at least smaller travel agencies by making it We believe our tentative findings in for international services, that does not easier for them to serve their customers this notice are sufficient to support our have such a preference. more efficiently and to give them better adoption of our proposed rules on CRS A rule requiring systems to use advice on airline service options. displays. rational criteria for editing and ranking Our proposed rule contains no direct flights would only impose significant Regulatory Assessment reporting, record-keeping, or other costs on a system if an airline or travel compliance requirements that would This rule may be a significant agency subscriber submitted a justified affect small entities. There are no other regulatory action under section 3(f) of complaint about its displays. If the federal rules that duplicate, overlap, or Executive Order 12866 and has been complaint were invalid, it would likely conflict with our proposed rules. reviewed by the Office of Management be dismissed without a hearing. Only in Interested persons may address our and Budget under that order. Executive cases where the display appeared to be tentative conclusions under the Order 12866 requires each executive unreasonable would the system be Regulatory Flexibility Act in their agency to prepare an assessment of costs exposed to an enforcement proceeding, comments submitted in response to this and benefits under section 6(a)(3) of that which could include a formal hearing, notice of proposed rulemaking. order. The proposal is also significant and to potential liability. The Department certifies under under the regulatory policies and The other proposal, which would bar section 605(b) of the Regulatory procedures of the Department of systems from using displays that neither Flexibility Act (5 U.S.C. et seq.) that this Transportation, 44 FR 11034. use elapsed time as a significant factor regulation would not have a significant The proposed rule should benefit in selecting flights from the data base economic impact on a substantial airline competition and consumers. It nor give single-plane flights a preference number of small entities. will provide airlines a greater over connecting services in ranking opportunity to obtain passengers on the flights, should impose no costs on any Paperwork Reduction Act basis of the quality of their service and system, except the cost of This proposal contains no collection- their fares by reducing the possibility reprogramming displays that do not of-information requirements subject to that unreasonable CRS display positions comply with the proposal. At this time the Paperwork Reduction Act, Pub.L. will determine the number of bookings Apollo appears to be the only system 96–511, 44 U.S.C. Chapter 35. received by an airline. In addition, by that would incur such costs. We doubt giving travel agents a better ability to that the reprogramming costs would be Federalism Implications obtain useful displays rationally related significant. The rule proposed by this notice to traveller preferences, the rule would The Department does not believe that would have no substantial direct effects make travel agency operations more there are any alternatives to this on the States, on the relationship efficient. The rule would benefit proposed rule which would accomplish between the national government and Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Proposed Rules 42217 the States, or on the distribution of consumers’ travel needs significantly DEPARTMENT OF THE TREASURY power and responsibilities among the better than other services to be various levels of government. Therefore, displayed after the inferior services and Internal Revenue Service in accordance with Executive Order whether those criteria seem designed 26 CFR Part 1 12812, we have determined that the systematically to improve the display proposed rule does not have sufficient position of the system owners’ airline [REG±209827±96] federalism implications to warrant services at the expense of the services RIN 1545±AU22 preparation of a Federalism Assessment. offered by other airlines. List of Subjects in 14 CFR Part 255 * * * * * Treatment of Section 355 Distributions by U.S. Corporations to Foreign Air carriers, Antitrust, Reporting and [Alternative 2] Persons recordkeeping requirements. Accordingly, the Department of (a) All systems shall provide at least AGENCY: Internal Revenue Service (IRS), Transportation proposes to amend 14 one integrated display that includes the Treasury. CFR Part 255, Carrier-owned Computer schedules, fares, rules and availability ACTION: Notice of proposed rulemaking Reservations Systems as follows: of all participating carriers in by cross-reference to temporary accordance with the provisions of this regulations and notice of public hearing. PART 255Ð[AMENDED] section. This display shall be at least as SUMMARY: In the Rules and Regulations useful for subscribers, in terms of 1. The authority citation for part 255 section of this issue of the Federal functions or enhancements offered and continues to read as follows: Register, the IRS is issuing temporary the ease with which such functions or Authority: 49 U.S.C. 1302, 1324, 1381, regulations revising the final regulations 1502. enhancements can be performed or under section 367(e)(1) with respect to implemented, as any other displays section 355 distributions of stock or 2. Section 255.4(a) is revised to read maintained by the system vendor. No as follows: securities by domestic corporations to system shall make available to foreign persons. The IRS is also § 255.4 Display of information. subscribers any integrated display modifying the temporary regulations unless that display complies with the [Alternative 1] under section 6038B to provide that requirements of this section. distributions described under section (a) All systems shall provide at least (1) Each system must offer an 367(e)(1) are subject to rules under one integrated display that includes the integrated display that uses the same section 6038B. The text of those schedules, fares, rules and availability temporary regulations also serves as the of all participating carriers in editing and ranking criteria for both on- line and interline connections and does text of these proposed regulations. This accordance with the provisions of this document also provides notice of a section. This display shall be at least as not give on-line connections a system- imposed preference over interline public hearing on these proposed useful for subscribers, in terms of regulations. functions or enhancements offered and connections. This display shall be at DATES: Written comments must be the ease with which such functions or least as useful for subscribers, in terms received by November 7, 1996. Outlines enhancements can be performed or of functions or enhancements offered of topics to be discussed at the public implemented, as any other displays and the ease with which such functions hearing scheduled for November 20, maintained by the system vendor. No or enhancements can be performed or 1996, at 10 a.m. must be received by system shall make available to implemented, as any other display October 31, 1996. subscribers any integrated display maintained by the system vendor. ADDRESSES: Send submissions to: unless that display complies with the (2) A system may not offer an requirements of this section. CC:DOM:CORP:R (INTL 0020–96), room integrated display that neither uses 5228, Internal Revenue Service, POB (1) Each system must offer an elapsed time as a significant factor in integrated display that uses the same 7604, Ben Franklin Station, Washington, selecting service options from the editing and ranking criteria for both on- DC 20044. In the alternative, database nor gives single-plane flights a line and interline connections and does submissions may be hand delivered preference over connecting services in not give on-line connections a system- between the hours of 8 a.m. and 5 p.m. imposed preference over interline ranking services in displays. to: CC:DOM:CORP:R (INTL–0020–96), connections. This display shall be at * * * * * Courier’s Desk, Internal Revenue least as useful for subscribers, in terms Issued in Washington, DC, on August 8, Service, 1111 Constitution Ave. NW., of functions or enhancements offered 1996. Washington, DC. The public hearing and the ease with which such functions Federico F. Pen˜ a, will be held in the IRS Auditorium, or enhancements can be performed or Internal Revenue Building, 1111 Secretary of Transportation. Constitution Avenue NW., Washington, implemented, as any other display [FR Doc. 96–20736 Filed 8–13–96; 8:45 am] maintained by the system vendor. DC. (2) The criteria used by a system for BILLING CODE 4910±62±P FOR FURTHER INFORMATION CONTACT: editing and ranking airline services in Concerning the regulations, Philip L. any integrated display must be Tretiak at (202) 622–3860; concerning rationally related to consumer submissions and the hearing, preferences. In considering whether an Evangelista Lee at (202) 622–7180 (not algorithm violates this provision, the toll-free numbers). Department shall consider, among other SUPPLEMENTARY INFORMATION: things, whether the editing and ranking criteria are likely to mislead a Paperwork Reduction Act significant number of consumers by The collection of information causing services that would meet the contained in this notice of proposed 42218 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Proposed Rules rulemaking has been submitted to the retained as long as their contents may Business Administration for comment Office of Management and Budget for become material in the administration on their impact on small business. review in accordance with the of any internal revenue law. Generally, Comments and Notice of Public Hearing Paperwork Reduction Act of 1995 (44 tax returns and tax return information U.S.C. 3507). are confidential, as required by 26 Before these proposed regulations are Comments on the collection of U.S.C. 6103. adopted as final regulations, information should be sent to the Office Estimated total annual reporting consideration will be given to any of Management and Budget, Attn: Desk burden: 2,124 hours. (This equals the written comments (a signed original and Officer for the Department of Treasury, sum of (i) the prior burden of 1,604 eight (8) copies) that are submitted Office of Information and Regulatory hours, and (ii) the additional burden of timely to the Internal Revenue Service. Affairs, Washington, DC 20503, with 520 hours contained in the new All comments will be available for copies to the Internal Revenue Service, regulations.) The estimated annual public inspection and copying. Attn: IRS Reports Clearance Officer, burden per respondent varies from 1 A public hearing has been scheduled T:FP, Washington, DC 20224. hour to 8 hours, depending on for November 20, 1996, at 10 a.m. in the Alternatively, taxpayers may submit individual circumstances, with an IRS Auditorium. Because of access comments electronically via the Internet estimated average of 2 hours. restrictions, visitors will not be by selecting the ‘‘Tax Regs’’ option on Estimated number of respondents: admitted beyond the building lobby the IRS Home Page, or by submitting 462. more than 15 minutes before the hearing comments directly to the IRS Internet Estimated annual frequency of starts. site at http://www.irs.ustreas.gov/prod/ responses: Once (in the case of The rules of 26 CFR 601.601(a)(3) tax regs/comments.html. Comments on taxpayers that qualify for the U.S. real apply to the hearing. the collection of information should be property holding company exception Persons that wish to present oral received by October 15, 1996. and the publicly traded company comments at the hearing must submit An agency may not conduct or exception). Annually (in the case of written comments by November 7, 1996, sponsor, and a person is not required to taxpayers that qualify for the gain and submit an outline of the topics to respond to, a collection of information recognition agreement exception). be discussed and the time to be devoted unless the collection of information Background to each topic (signed original and eight displays a valid control number. (8) copies) by October 31, 1996. The collection of information under The temporary regulations published A period of 10 minutes will be section 367(e)(1) is in § 1.367(e)–1T(c) in the Rules and Regulations section of allotted to each person for making (1)(ii), (2)(i)(C) and (3). The temporary this issue of the Federal Register amend comments. regulations provide that in order for the Income Tax Regulations (26 CFR An agenda showing the scheduling of taxpayers to qualify for either the ‘‘U.S. part 1) under section 367(e)(1). The the speakers will be prepared after the real property holding corporation temporary regulations under section deadline for receiving outlines has exception’’ or the ‘‘publicly traded 367(e)(1) contain rules relating to the passed. Copies of the agenda will be corporation’’ exception, taxpayers must distribution of stock or securities under available free of charge at the hearing. comply with the reporting requirements section 355 by a domestic corporation to contained in § 1.367(e)–1T(c)(1)(ii) and a person that is not a U.S. person. Drafting Information § 1.367(e)–1T(c)(2)(i)(C), respectively. The text of those temporary The principal author of these The temporary regulations also modify regulations also serves as the text of proposed regulations is Philip L. Tretiak the reporting requirements under the these proposed regulations. The of the Office of Associate Chief Counsel ‘‘gain recognition agreement’’ exception preamble to the temporary regulations (International), IRS. However, other (§ 1.367(e)–1T(c)(3)). Under the explains the reasons for the personnel from the IRS and Treasury temporary regulations, the controlled modifications to the final regulations Department participated in their corporation, in addition to the contained in the temporary regulations. development. distributing corporation, must sign the Special Analyses gain recognition agreement (§ 1.367(e)– List of Subjects in 26 CFR Part 1 1T(c)(3) (ii)(F) and (iii)), extend the It has been determined that this notice Income tax, Reporting and statute of limitations accordingly of proposed rulemaking is not a recordkeeping requirements. (§ 1.367(e)–1T(c)(3) (ii)(F) and (iv)), and significant regulatory action as defined annually report its distributees to the in EO 12866. Therefore, a regulatory Proposed Amendments to the distributing corporation but not the assessment is not required. It is hereby Regulations Service (§ 1.367(e)–1T(c)(3)(v)(B)). This certified that these regulations do not Accordingly, 26 CFR part 1 is information is required by the IRS as a have a significant impact on a proposed to be amended as follows: condition for a taxpayer to qualify for an substantial number of small entities. exception to the general rule of taxation This certification is based on the fact PART 1ÐINCOME TAXES under section 367(e)(1), and to avoid the that these regulations will primarily penalties contained under section affect large multinational corporations Paragraph 1. The authority citation 6038B. This information will be used to with foreign shareholders. The for part 1 continues to read in part as determine whether a taxpayer properly regulations do not significantly alter the follows: qualifies for a claimed exception. The reporting or recordkeeping duties of Authority: 26 U.S.C. 7805. * * * respondents generally will be U.S. small entities. Therefore, a Regulatory Par. 2. Section 1.367(e)–1 is added to corporations, probably subsidiaries of Flexibility Analysis under the read as follows: foreign multinationals, that are either Regulatory Flexibility Act (5 U.S.C. distributing another corporation or chapter 6) is not required. Pursuant to § 1.367(e)±1 Treatment of section 355 being distributed under section 355, section 7805(f) of the Internal Revenue distributions by U.S. corporations to foreign pursuant to a corporate restructuring. Code, this notice of proposed persons. Books or records relating to a rulemaking will be submitted to the [The text of this proposed section is collection of information must be Chief Counsel for Advocacy of the Small the same as the text of § 1.367(e)–1T Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Proposed Rules 42219 published elsewhere in this issue of the SUPPLEMENTARY INFORMATION: To further extended if necessary to achieve more Federal Register]. its mission of ‘‘binding the Nation complete test results. Par. 3. Section 1.6038B–1, as together through the correspondence of Although exempt from the notice and proposed on May 16, 1986, at 51 FR the people,’’ 39 U.S.C. 101, the United comment requirements of the 17990, is amended by revising the States Postal Service is developing Administrative Procedure Act (5 U.S.C. second sentence of paragraph (b)(2)(i) services which, through an extension of §§ 553 (b), (c)) regarding proposed and adding the text of paragraph (e) to its traditional paper mail services, will rulemaking by 39 U.S.C. § 410(a), the read as follows: enable and enhance the development of Postal Service invites public comment commerce by electronic means. These on the following revisions to the Title § 1.6038B±1 Reporting of transfers 39 of the Code of Federal Regulations. described in section 367. ‘‘Postal Electronic Commerce Services’’ will provide security and integrity to List of Subjects in 39 CFR Part 701 [The text of proposed paragraphs electronic correspondence and (b)(2)(i) and (e) are the same as the text transactions, giving them attributes Communications, Electronic of § 1.6038B–1T (b)(2)(i) and (e) usually associated with First-Class Mail. Commerce Services, Postal Service, published elsewhere in this issue of the As a first step in this effort, the Postal Telecommunications. Federal Register]. Service is testing a limited prototype It is proposed that chapter I of title 39 Margaret Milner Richardson, pilot of an ‘‘Electronic Postmarking be amended as set forth below. Commissioner of Internal Revenue. Service.’’ Under this new service, the SUBCHAPTER IÐELECTRONIC AND [FR Doc. 96–20631 Filed 8–9–96; 12:19 pm] Postal Service will apply a trusted time COMPUTER-BASED SERVICES BILLING CODE 4830±01±U and date stamp to a document that has Part 701 in Subchapter I will be added been electronically submitted to the to read as follows: Postal Service (‘‘Electronic Postmark’’), POSTAL SERVICE and then digitally signs the document PART 701ÐPOSTAL ELECTRONIC with a Postal Service private key POSTMARK 39 CFR Part 701 (defined by a CCITT×.500 § 509 Version Authority: 5 U.S.C. 552(a); 39 U.S.C. 101, 3 certificate). This Electronic Postmark 401, 403, 404, 3001–3011. Postal Electronic Commerce Service provides evidence of the document’s AGENCY: Postal Service. existence at a specific point in time, § 701.1 Policy and objective. ACTION: Proposed rule electronic allows any subsequent change in the The Postal Service seeks to offer postmark test; request for comments. document to be identified, and shows Electronic Postmark Services that will that the Electronic Postmarked version offer Senders of Messages a third-party SUMMARY: The United States Postal of the document was no longer in the validation of the time and date that the Service is developing ‘‘Postal Electronic possession of the originator at the time Message was received by the Postal Commerce Services’’ that will provide of marking. Service, and that will validate the security and integrity to electronic This Electronic Postmark is a valuable existence of the Message by enabling correspondence and transactions, giving third-party validation of the official Recipients to determine whether it was them attributes usually associated with character of some documents. For users changed after its handling by the Postal First-Class Mail. As part of this effort, of electronic commerce, the Electronic Service. the United States Postal Service is Postmark is a way to send important § 701.2 Trial period. testing a limited prototype of an information in a manner that combines Electronic Postmarking Service that will the security of postmarked paper with The Electronic Postmarking Services offer customers a third-party validation the speed and convenience of an (defined in § 701.4) are being provided of the time and date that an electronic electronic network. Further, the via a prototype system and will be made mail document was received by the Electronic Postmark, if offered in available to selected Senders as part of Postal Service, and validate the combination with a public key a pilot test that is intended to be existence of a document by ensuring infrastructure, can be used to validate concluded within 60 days of its start, that it was not changed after its the digital signature of a sender of although it may be extended if handling by the Postal Service. The test documents. At this time, this necessary to achieve more complete test is intended to be concluded within 60 certification capability is an additional results. The Regulations in this part will days of its start, although it may be service that the Postal Service will offer govern that pilot test. extended. To provide guidance for only in the event that there is clear § 701.3 Definitions. implementing the test, the Postal demand from its customers. Service is proposing to add new For purposes of this part, the Although the prototype system for the following definitions shall apply: regulations to title 39 of the Code of Electronic Postmark is still in Federal Regulations. (a) Authorized Computer Service development, it will be FIPS 140–1 Provider means a third party authorized DATES: Comments must be received on complaint and will incorporate U.S. by the Postal Service to accept and or before September 13, 1996. Postal Service Software Process process Messages to be Electronically ADDRESSES: Written comments should Standards and Security Management Postmarked and to forward the be directed to the Manager, Electronic Procedures. The Electronic Postmark Postmarked Messages to the Commerce Services, Room 5636, 475 will use Digital Signature Standard Recipient(s). L’Enfant Plaza, SW., Washington, DC (DSS) as the signing algorithm. Future (b) Authorized Value-Added Network 20260–2427. Copies of all written implementations may incorporate means a private computer-based value- documents will be available at that additional or different algorithms. For added network designated by the Postal address for inspection and the prototype test, the service will be Service as authorized to carry Messages photocopying between 9 a.m. and 4 provided by contract with an to the Postal Service for Electronic p.m., Monday through Friday. Authorized Computer Service Provider. Postmarking. FOR FURTHER INFORMATION CONTACT: Leo This prototype pilot test is intended (c) Certificate means a computer- Campbell (202) 268–6837. to last 60 days, although it may be based record that identifies the Postal 42220 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Proposed Rules

Service public key to be used for behalf of the Postal Service for the the United States may submit a Message purposes of authenticating Postal purpose of applying an Electronic to the Postal Service to be Electronically Service Electronic Postmarks. The Postmark to a Message. Postmarked in accordance with these certificate will be in CCITT X.500 § 509 (n) Recipient(s) means the person(s) Regulations, provided the following version 3 format. designated by an Electronic Address in requirements are met: (d) Digital Signature means a a Message prepared by the Sender to (a) the Message must be in the format transformation of a Message using the receive the Electronic Postmarked prescribed by § 701.6; Digital Signature Standard (DSS) and Message. (b) the Message must be submitted to the DSA algorithm that allows (o) Sender means an individual or the Postmark Address at the Postal recipients of the Message to authenticate entity that submits a Message to the Service Mail Processor via an the Message and determine whether the Postal Service via an Authorized Value- Authorized Value-Added Network; and Message has been altered since it was Added Network for Electronic (c) the Sender must have an account received by the Postal Service. Postmarking under part 701. with an Authorized Computer Service (e) Digitally Sign means to apply a (p) USPS Mail Reader means software Provider for the purpose of obtaining Digital Signature to a Message. developed or licensed by the Postal Electronic Postmarks, and must pay the (f) Electronic Address means an Service that enables a Recipient to view fee provided in § 701.8 to such alphanumeric or other designation an Electronic Postmarked Message, view Authorized Computer Service Provider. corresponding a location on a computer the Electronic Postmark, and network. authenticate the Electronic Postmark for § 701.6 Message format. (g) Electronic Mail Software means such Message. (a) Messages shall be submitted any commercially available software electronically in a binary-encoded file. product capable of sending and § 701.4 Description of Electronic Postmark (b) Messages must include: (i) the receiving electronic mail Messages. Services. Postmark Address at the Postal Service’s (h) Electronic Postmark means data (a) The Postal Service will provide the Mail Processor; (ii) a valid account incorporated within a Message by the following Electronic Postmark Services number against which the Authorized Postal Service that includes the for Messages sent to the Postmark Computer Service Provider may charge following information: Address at its Mail Processor via an applicable fees for Electronic (1) Postal Service branding. Authorized Value-Added Network: Postmarking Services, and (iii) the (2) Date and time in Greenwich Mean (1) The Postal Service will apply an Electronic Addresses of any Recipients Time (GMT) down to the second the Electronic Postmark to the Message to whom the Electronic Postmarked Message was received by the Postal using a private key corresponding to the Message should be forwarded after the Service Mail Processor, as determined public key specified in its Certificate. Electronic Postmark is applied. by the Mail Processor’s internal clock. (2) The Postal Service will forward (c) For the purposes of this test, the (3) Postal Service Certificate serial the Postmarked Message to the specific format shall be specified by the number. recipient(s) designated by the Sender, Authorized Computer Service Provider. (4) Postal Service’s distinguished using the same Authorized Value- name. Added Network from which the § 701.7 Authorized Value-Added Network and Authorized Computer Service Provider. (5) Postal Service’s Digital Signature Message was originally received. consisting of the DSA R component and (b) The Electronic Postmarking (a) All Messages to be Electronically the DSA S component. Services will be available on demand, Postmarked must be submitted to the (i) Mail Processor means the computer on a 24-hour, 7-day-a-week basis, Postmark Address through an system operated by an Authorized subject to equipment, software, and Authorized Value-Added Network, and Computer Service Provider that is communications problems. the corresponding Electronic designed to handle the processing of (c) The Electronic Postmarking Postmarked Message will be forwarded Messages intended to be Electronically Services do not include any undertaking to the Recipient(s) by the Postal Service Postmarked in accordance with this by the Postal Service to deliver using the same Authorized Value- Regulation. Messages to any intended Recipient. Added Network. Senders must make (j) Message means any data in The Postal Service’s obligation is necessary arrangements with the electronic machine-readable form limited to communicating the Electronic Authorized Value-Added Network. directed to one or more Electronic Postmarked Message, using each (b) The Authorized Computer Service Addresses to which it can be Recipient’s Electronic Address as Provider is responsible for issuing communicated via a computer network. specified by the Sender, to the account numbers, billing Senders for the A ‘‘Message’’ is not a ‘‘letter’’ for Authorized Value-Added Network from Electronic Postmarking Services, and purposes of part 310. which it was received, for further supplying Senders and Recipients with (k) Postmark Address means the e- communication to the intended the USPS Mail Reader software. mail address to which a Message must Recipient by such Authorized Value- (c) The Authorized Computer Service be sent in order to obtain an Electronic Added Network. The Postal Service Provider and Authorized Value-Added Postmark. shall have no obligation or liability with Networks may by contract or otherwise (l) Postmarked Message means a respect to the performance of any specify other protocols, formats, Message, submitted to the Postal Service Authorized Value-Added Network. procedures, terms, conditions, and by a Sender in accordance with these (d) The Postal Service may requirements not inconsistent with Regulations, to which an Electronic subcontract the foregoing Electronic these Regulations with respect to the Postmark has been added to the body of Postmark Services to an Authorized generation, structure, submission and the Message as text, and which is Computer Service Provider. receipt of Messages, the assignment, attached to another Message containing use, and authentication of account a graphical representation of the § 701.5 Requirements for submitting numbers, and the payment of charges Electronic Postmark. messages to be postmarked. assessed against account numbers. (m) Postmark Processor means the Any person whether or not a U.S. (d) A list of Authorized Computer computer system operated by or on citizen and whether or not located in Service Providers and Authorized Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Proposed Rules 42221

Value-Added Networks may be obtained the Message. It will then create a new originally received by the Mail by contacting the Postal Service via Message, with the body being a Processor. The Postal Service shall have electronic mail at: graphical representation of the no responsibility for delivery of the [email protected], or by Electronic Postmark and with the Message by the Authorized Value- writing to: Leo Campbell, New original Message attached to the new Added Network. Electronic Businesses, 475 L’Enfant Message using Mime base 64. The new Plaza SW, Room 5670, Washington, DC Message, with attachment, is then sent § 701.13 Terms and condition of service. 20260–2427. Requests sent by regular back to the Mail Processor as the (a) The Electronic Postmark Services mail should include a self-addressed Postmarked Message. are offered subject to the terms of this stamped return envelope. (4) The Mail Processor will then part, which Senders are deemed to forward the Electronic Postmarked accept by submitting any Message to the § 701.8 Fees. Message to the Recipient(s) designated Postmark Address at the Postal Service (a) Senders submitting Messages shall in the original Message via the same Mail Processor. be charged in accordance with fee Authorized Value-Added Network from (b) The Postal Service shall have no schedules to be developed by the Postal which it was received. liability to the Sender or any Recipient Service. The fee shall be assessed (b) Security Policy. The Electronic for any indirect, incidental, special, or against the Sender account number. Postmark will be FIPS 140–1 complaint consequential damages (including Sender will be billed for the amount of and will incorporate U.S. Postal Service damages for loss of profits or revenue by the fee by the Authorized Computer Software Process Standards and the Sender, Recipient, or any third Service Provider that issued the account Security Management Procedures. party), or for damages arising from lost number. Implementation of the Electronic or corrupted Messages or other data, (b) A person submitting an account Postmark will also be governed by the delayed or incorrect forwarding of number in connection with a Message is Postal Services Electronic Commerce Messages, or any other failure or error representing to the Postal Service that Services Security Policy. The Electronic on the part of the Postal Service, he or she has authority to use the Postmark will use Digital Signature whether in an action in contract or tort, account number to pay for the Standard (DSS) as the signing algorithm. even if the Postal Service has been Electronic Postmarking of the Message. advised of the possibility of such Persons using account numbers without § 701.11 Digital signatures and damages. proper authority may be subject to fines certificates. (c) The Postal Service’s entire liability and imprisonment. (a) All Postmarked Messages will be for any damages claim (regardless of Digitally Signed by the Postal Service. legal theory) arising from the provision § 701.9 Specifications for recipients. (b) The Digital Signature shall be of Electronic Postmarking Services shall (a) When a Recipient receives a based on the original Message, plus the not exceed the amount of fees paid by Postmarked Message, Recipient will Electronic Postmark, using the Digital the applicable Sender for the Electronic need a USPS Mail Reader to read it. The Signature Standard (DSS). Postmarking Services giving rise to the USPS Mail Reader will include the (c) All Digital Signatures will be liability. public key file (and may include the generated using a private key held by (d) Each Sender shall indemnify and Postal Service Certificate) for verifying the Postal Service corresponding to a hold the Postal Service and its the Postal Service Digital Signature on public key specified in the Certificate Governors, officers, employees, the Electronic Postmarked Message. located in the United States Postal subcontractors and agents (the (b) The USPS Mail Reader is available Service Prototype Certificate Authority ‘‘Indemnified Parties’’) harmless from from the Authorized Service Provider in the Information Systems Service and against any and all liabilities, and will be licensed to Recipients on Center (ISSC) in San Mateo, CA. losses, damages, costs, and expenses terms specified by the Authorized (including legal fees and expenses) Service Provider. Use of the USPS Mail § 701.12 Message handling generally. associated with, or incurred as a result Reader constitutes acceptance of these (a) Except as provided in § 701.10, the of, any claim or action brought against terms. Postal Service will not undertake to an Indemnified Party either for actual or verify the format or integrity of any alleged infringement of any patent, § 701.10 Electronic Postmark. Message received for Electronic copyright, trademark, service mark, (a) Application of Electronic Postmark Processing. Messages shall be trade secret, or other property right Postmark. Messages submitted for Postmarked as received, regardless of based on the processing, or Electronic Postmarks will be processed condition. communication of any Message substantially as follows: (b) Messages will be processed for submitted to the Postal Service by the (1) Upon receipt of the Message by the Electronic Postmarking and forwarding Sender. Mail Processor, the format of the to the intended Recipient within a (e) A Sender shall not submit information specified in § 701.6 and the reasonable time after receipt by the Mail Messages or otherwise use Electronic Sender’s account with the Authorized Processor. However, the Postal Service Postmarking Services in any manner Computer Service Provider is verified. does not guarantee any specific that violates any federal or state law or Messages that are not in proper format, response time. regulations. and Messages received from Senders (c) Messages with invalid account who do not designate valid account numbers will not be Electronic § 701.14 Security provisions. numbers, will be returned. Postmarked or forwarded to the (a) Policy. The Postal Service will (2) Messages received in proper Recipient. They will be returned to preserve and protect the security of all format from Senders with valid Sender. Messages and Postmarked Messages in accounts will be readdressed to the (d) Electronic Postmarked Messages its custody from unauthorized intended Recipient(s) and passed to the will be forwarded to the Recipient interception, inspection or reading of Electronic Postmark Processor. identified by the Sender using the same contents, or tampering, delay, or other (3) The Electronic Postmark Processor Authorized Value-Added Network as unauthorized acts. Any postal employee will create an Electronic Postmark for that from which the Message was committing or allowing any of these 42222 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Proposed Rules unauthorized acts is subject to ENVIRONMENTAL PROTECTION these operating permits to all major administrative discipline and may be AGENCY stationary sources and to certain other subject to criminal prosecution leading sources. to fine, imprisonment, or both. An 40 CFR Part 70 The Act requires that States develop employee having a question about [AD±FRL±5552±7] and submit these programs to EPA by proper security procedures that is not November 15, 1993, and that EPA act to clearly and specifically answered by Clean Air Act Proposed Interim approve or disapprove each program postal regulations or by written Approval of Operating Permits within 1 year after receiving the direction of the Inspection Service or Program; Delegation of Section 112 submittal. The EPA’s program review Law Department shall resolve the Standards; State of New Hampshire occurs pursuant to section 502 of the question by protecting the Messages in Act and the Part 70 regulations, which AGENCY: Environmental Protection together outline criteria for approval or all respects and delivering them, or Agency (EPA). letting them be delivered, without disapproval. Where a program ACTION: Proposed interim approval. interruption to their destination. substantially, but not fully, meets the requirements of Part 70, EPA may grant SUMMARY: The EPA is promulgating (b) Interception, Searching, or the program interim approval for a interim approval of the Operating Reading of Messages Generally period of up to 2 years. If EPA has not Permits Program submitted by the State Prohibited. fully approved a program by 2 years of New Hampshire for the purpose of (1) General. after the November 15, 1993 date, or by complying with Federal requirements the end of an interim program, it must In general, no employee may for an approvable State program to issue establish and implement a Federal intercept, search, read, or divulge the operating permits to all major stationary program. contents of any Message submitted for sources, and to certain other sources. Electronic Postmarking, even though EPA is also approving the State’s B. Federal Oversight and Sanctions such Message may be believed to authority to implement hazardous air contain criminal matter or evidence of pollutant requirements. If EPA were to finalize this proposed interim approval, it will extend for two the commission of a crime. The only DATES: Comments on this proposed years following the effective date of exception to this general rule is for a action must be received in writing by person executing a search warrant duly final interim approval, and cannot be September 13, 1996. renewed. During the interim approval issued under Rule 41 of the Federal ADDRESSES: Comments should be period, the State of New Hampshire is Rules of Criminal Procedure. Usually, a addressed to Ida E. Gagnon, Air Permits protected from sanctions, and EPA is warrant issued by a Federal Court or Program, CAP, U.S. Environmental not obligated to promulgate, administer service by a Federal Officer is issued Protection Agency, Region I, JFK and enforce a Federal permits program under Rule 41, and is duly issued if Federal Building, Boston, MA 02203– for the State of New Hampshire. Permits signed and dated within the past 10 2211. issued under a program with interim days. No employee shall permit the Copies of the State’s submittal and approval have full standing with respect execution of a search warrant issued by other supporting information relevant to to Part 70, and the 1-year time period for a state court and served by a state this action are available for inspection submittal of permit applications by officer. during normal business hours at the subject sources specified in section (2) Disclosure of Information following location: U.S. Environmental 503(c) of the Act begins upon the Collected from Messages Sent or Protection Agency, Region 1, One effective date of interim approval, as Congress Street, 11th floor, Boston, MA Received by Customers. Except as does the 3-year time period for 02203. provided in § 701.14(b)(1), no employee processing the initial permit 1 in the performance of official duties FOR FURTHER INFORMATION CONTACT: Ida applications. may disclose information collected from E. Gagnon, Air Permits Program, CAP, Following final interim approval, if Messages processed by the Postal U.S. Environmental Protection Agency, the State of New Hampshire fails to Region 1, JFK Federal Building, Boston, Service Electronic Postmark Processor, submit a complete corrective program MA 02203–2211, (617) 565–3500. including any information about a for full approval by the date 6 months Message processed by the Postal SUPPLEMENTARY INFORMATION: before expiration of the interim Service. approval, EPA will start an 18-month I. Background and Purpose clock for mandatory sanctions. If the (3) Interference with Operation of A. Introduction State of New Hampshire then fails to Postal Computers. submit a corrective program that EPA As required under title V of the 1990 Interference by any person with the finds complete before the expiration of Clean Air Act Amendments (sections operation of Postal Service data that 18-month period, EPA will be 501–507 of the Clean Air Act (‘‘the required to apply one of the sanctions processing equipment, including the Act’’)), EPA has promulgated rules in section 179(b) of the Act, which will Postmark Processor, is strictly which define the minimum elements of remain in effect until EPA determines prohibited. an approvable State operating permits that the State of New Hampshire has Stanley F. Mires, program and the corresponding corrected the deficiency by submitting a Chief Counsel, Legislative. standards and procedures by which the complete corrective program. If, six EPA will approve, oversee, and [FR Doc. 96–19102 Filed 8–13–96; 8:45 am] months after application of the first withdraw approval of State operating BILLING CODE 7710±12±P sanction, the State of New Hampshire permits programs (see 57 FR 32250 (July still has not submitted a corrective 21, 1992)). These rules are codified at 40 Code of Federal Regulations (CFR) Part 1 Note that states may require applications to be 70. Title V requires States to develop, submitted earlier than required under section and submit to EPA, programs for issuing 503(c). See Env-A 609.05(d). Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Proposed Rules 42223 program that EPA finds complete, a out in EPA’s Part 70 operating permits given this is a distinct reporting second sanction will be required. program review are addressed in obligation under § 70.6(a)(3)(iii)(A). If, following final interim approval, Section III of the State’s submittal. Where ‘‘prompt’’ is defined in the EPA disapproves the State of New The New Hampshire PROGRAM, individual permit but not in the Hampshire’s complete corrective including the operating permits program regulations, EPA may veto program, EPA will be required to apply regulations, substantially meets the permits that do not contain sufficiently one of the section 179(b) sanctions on requirements of 40 CFR Part 70, prompt reporting of deviations. the date 18 months after the effective including §§ 70.2 and 70.3 with respect date of the disapproval, unless prior to to applicability; §§ 70.4, 70.5 and 70.6 Definition of ‘‘Title I Modification’’ that date the State of New Hampshire with respect to permit content and New Hampshire’s definition of ‘‘title has submitted a revised program and operational flexibility; §§ 70.5 with I modification’’ does not include EPA has determined that it corrected the respect to complete application forms changes reviewed under a minor source deficiencies that prompted the and criteria which define insignificant preconstruction review program disapproval. If, six months after EPA activities; §§ 70.7 and 70.8 with respect (‘‘minor NSR changes’’). In an August applies the first sanction, the State of to public participation, minor permit 29, 1994 rulemaking proposal, EPA New Hampshire has not submitted a modifications, and review by affected explained its view that the better revised program that EPA has states and EPA; and § 70.11 with respect reading of ‘‘title I modifications’’ determined corrected the deficiencies to requirements for enforcement includes minor NSR. However, the that prompted disapproval, a second authority. Although the PROGRAM Agency solicited public comment on sanction will be required. substantially meets Part 70 whether the phrase should be Moreover, if EPA has not granted full requirements, there are program interpreted to mean literally any change approval to a State of New Hampshire deficiencies that are outlined in section at a source that would trigger permitting program by the expiration of an interim II.B. below as Interim Approval issues. authority review under regulations approval and that expiration occurs Those Interim Approval issues are more approved or promulgated under Title I after November 15, 1995, EPA must fully discussed in the Technical of the Act. (59 FR 44572, 44573). This promulgate, administer and enforce a Support Document, dated November 6, would include State preconstruction Federal permits program for the State of 1995 and entitled ‘‘Technical Support review programs approved by EPA as New Hampshire upon interim approval Document—New Hampshire Operating part of the State Implementation Plan expiration. Permits Program’’ (‘‘TSD’’). The TSD under section 110(a)(2)(C) of the Clean also contains a detailed discussion of Air Act. II. Proposed Action and Implications elements of Part 70 that appear in New The EPA has not yet taken final action A. Analysis of State Submission Hampshire’s title V program regulations on the August 29, 1994 proposal. but which are in need of some However, in response to public 1. Support Materials clarification. That clarification is comment on that proposal, the Agency The Air Resource Division Director of provided by EPA in the TSD and by the has decided that the definition of ‘‘title the State of New Hampshire (Designee New Hampshire Attorney General’s I modifications’’ is best interpreted as of the Governor) submitted an Office by a legal Opinion supplementing not including changes reviewed under administratively complete title V the State’s original submittal. minor NSR programs. EPA included this Operating Permits Program (PROGRAM) interpretation in a supplemental on October 26, 1995. EPA deemed the Prompt Reporting of Deviations From rulemaking proposal published on Permit Requirements PROGRAM administratively complete August 31, 1995. 60 FR 45530, 545–546. in a letter to the Commissioner dated Part 70 of the operating permits Thus, New Hampshire’s definition of November 22, 1995. The PROGRAM regulation requires prompt reporting of ‘‘title I modification’’ is fully consistent submittal includes a description of how deviations from the permit with EPA’s current interpretation of Part the State intends to implement the requirements. Section 70.6(a)(3)(iii)(B) 70. PROGRAM and legal opinions from the requires the permitting authority to In the August 29, 1994 proposal (59 Attorney General of New Hampshire define prompt in relation to the degree FR 44572) the Agency stated that if, stating that the laws of the State provide and type of deviation likely to occur and after considering the public comments, adequate authority to carry out the the applicable requirements. The State it determined that the phrase ‘‘title I PROGRAM. The submittal additionally of New Hampshire has not defined modifications’’ should be interpreted as contains evidence of proper adoption of ‘‘prompt’’ in its program with respect to including minor NSR changes, the the PROGRAM regulations, permit reporting of deviations. Although the Agency would revise the interim application forms, a data management permit program regulations should approval criteria as needed to allow system and a fee adequacy define prompt for purposes of states with a narrower definition to be demonstration. administrative efficiency and clarity, an eligible for interim approval. If EPA acceptable alternative is to define should conclude, during the final 2. Regulations and Program prompt in each individual permit. The rulemaking on the August 29, 1994 (59 Implementation EPA believes that prompt should FR 44572) and August 31, 1995 (60 FR The State of New Hampshire has generally be defined as requiring 45530, 545–546) proposals, that Title I submitted Env-A 600 entitled reporting within two to ten days of the modifications should be read to include ‘‘Statewide Permit System’’ for deviation. Two to ten days is sufficient minor NSR, it will identify the narrow implementing the State Part 70 program time in most cases to protect public definition of Title I modification as an as required by 40 CFR 70.4(b)(2). health and safety as well as to provide interim approval condition on New Sufficient evidence of procedurally a forewarning of potential problems. For Hampshire’s program at the appropriate correct adoption is included in Section sources with a low level of excess time. III of the submittal. emissions, a longer time period may be The New Hampshire operating acceptable. However, prompt reporting Variances permits regulations follow Part 70 very must be more frequent than the New Hampshire has the authority to closely. The following requirements, set semiannual reporting requirement, issue a variance from certain regulatory 42224 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Proposed Rules requirements imposed by State law. See requirements, including those under disclosed to the State. Another category Env-A 207 and RSA 125–C:16. The EPA title V of the CAA. Based on review and excluded from the scope of the penalty regards New Hampshire’s variance consideration of the statutory and waiver is violations that result in provisions as wholly external to the regulatory provisions discussed above, serious harm to human health or the program submitted for approval under EPA issued guidance on April 5, 1996, environment. Although the list of Part 70 and consequently is proposing entitled ‘‘Effect of Audit Immunity/ excluded violations does not explicitly to take no action on these provisions of Privilege Laws on States’ Ability to contain violations that result in a State law. The EPA has no authority to Enforce Title V Requirements’’ to significant economic benefit, violations approve provisions of State law that are address these concerns. This guidance that are required to be disclosed by law, inconsistent with the Act. The EPA does outlines certain elements of State audit or violations that result in a serious risk not recognize the ability of a permitting immunity and privilege laws which, in of harm to human health or the authority to grant relief from the duty to EPA’s view, may so hamper the State’s environment, New Hampshire’s comply with a federally enforceable Part ability to enforce as to preclude Attorney General Opinion explains that 70 permit, except where such relief is approval of the State’s title V operating in the context of New Hampshire’s title granted through procedures allowed by permits program. V operating permit program such Part 70. A Part 70 permit may be issued New Hampshire has adopted violations could not qualify for the or revised (consistent with Part 70 legislation that would provide, subject penalty waiver. In essence, the Attorney procedures), to incorporate those terms to certain conditions, for an General Opinion states that violations of of a variance that are consistent with environmental audit ‘‘privilege’’ for the terms and conditions of State-issued applicable requirements. A Part 70 voluntary compliance evaluations title V permits are excluded from the permit may also incorporate, via Part 70 performed by a regulated entity. New penalty waiver provision because any permit issuance or revision procedures, Hampshire’s legislation also provides, such violations would be required to be the schedule of compliance set forth in subject to certain conditions, for a disclosed by the title V permit itself a variance. However, EPA reserves the penalty waiver for violations of pursuant to at least one, and possibly right to pursue enforcement of environmental laws when a regulated all, of the following requirements in applicable requirements entity discovers such violations New Hampshire’s program: (1) the notwithstanding the existence of a pursuant to a voluntary compliance obligation to report promptly any compliance schedule in a permit to evaluation and voluntarily discloses deviations from the terms and operate. This is consistent with 40 CFR such violations to the State and takes conditions of the permit; (2) the 70.5(c)(8)(iii)(C), which states that a prompt and appropriate measures to obligation to submit monitoring reports schedule of compliance ‘‘shall be remedy the violations. no less frequently than semi-annually; supplemental to, and shall not sanction New Hampshire’s audit privilege and (3) the obligation to submit annual legislation excludes from the scope of noncompliance with, the applicable compliance certifications. Hence, these the privilege all ‘‘[d]ocuments, requirements on which it is based.’’ requirements would preclude a title V communications, data, reports, or other source from asserting that it ‘‘elected’’ Audit Privilege and Penalty Waiver information required to be collected, (the term used in New Hampshire’s Legislation developed, maintained, reported, or legislation) to disclose any such The Clean Air Act sets forth the otherwise made available to a regulatory violations to the State, i.e. such minimum elements required for agency pursuant to an environment disclosure could not be voluntary under approval of a State operating permits law.’’ Such information is ‘‘non- State law, a precondition for the program, including the requirement that privileged’’ under the terms of the applicability of the penalty waiver the permitting authority has adequate legislation. Thus, EPA is not listing any authority to assure that sources comply conditions on New Hampshire’s title V provisions. with all applicable CAA requirements as program approval for this issue because With regard to violations of the well as authority to enforce permits the legislation will not preclude the requirement to apply for a title V through recovery of minimum civil State from enforcing its title V permit permit, the Attorney General opines that penalties and appropriate criminal program requirements consistent with a title V source could not ‘‘elect,’’ or penalties. Section 502(b)(5) (A) and (E) the requirements of the CAA. New volunteer, to disclose the application of the CAA. EPA’s implementing Hampshire’s Attorney General has violation, and so the penalty waiver regulations, which further specify the submitted a legal opinion which provisions would not apply. The required elements of State operating supports EPA’s understanding that the reasoning in the Attorney General permits programs (40 CFR Part 70), State title V program requirements for Opinion is as follows. A source is under explicitly require States to have certain compliance monitoring, reporting of a continuing obligation, even when enforcement authorities, including violations, recordkeeping, and failing to apply for a permit on time, to authority to seek injunctive relief to compliance certification, together submit to the State information enjoin a violation, to bring suit to render the privilege inapplicable to sufficient to enable the State to issue a restrain violations imposing an compliance evaluations, at a title V title V permit. Such information would imminent and substantial endangerment source, of the State’s title V necessarily contain, or at least include to public health or welfare, and to requirements. a reference to, information relating to all recover appropriate criminal and civil New Hampshire’s Attorney General construction permits and non-title V penalties. 40 CFR 70.11. In addition, Opinion also addresses the penalty State operating permits already issued section 113(e) of the CAA sets forth waiver provisions of the audit to the source. This information would penalty factors for EPA or a court to legislation. Section 147–E:9, II of the indicate when the source became a consider for assessing penalties for civil legislation excludes certain violations ‘‘major source.’’ Moreover, the State and criminal violations of title V from the scope of the penalty waiver already possesses extensive permits. EPA is concerned about the provision. For example, criminal acts computerized emissions data on each potential impact of some State privilege committed knowingly, purposefully, or source in the State. These sources of and immunity laws on the ability of recklessly are not covered by the emissions information would enable the such States to enforce federal penalty waiver provision when State to deduce that the source had Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Proposed Rules 42225 failed to apply for a title V permit in a with regard to these issues. However, if presumptive minimum criteria. For timely manner. Thus, there is no New Hampshire’s implementation of its more information, see Attachment E of meaningful sense in which a source title V program is inconsistent with the New Hampshire’s title V program could ‘‘elect’’ to disclose, or voluntarily Attorney General’s Opinion or the submittal. disclose, the application violation State’s audit legislation is held by the 4. Provisions Implementing the because the source was required by New Hampshire State courts to be virtue of the permit application applicable to title V violations, EPA Requirements of Other Titles of the Act requirement of the State’s regulations to reserves its rights to address what a. Authority and/or Commitments for submit the source’s emissions would in that event be the State’s Section 112 Implementation information (or at least reference inability to enforce its title V program New Hampshire has demonstrated in existing permits that contain such consistent with the requirements of the its title V program submittal adequate information) from which the State could CAA. legal authority to implement and The complete program submittal, the deduce on its own that the violation enforce all section 112 requirements for TSD, and New Hampshire’s Attorney occurred. hazardous air pollutants through the The Attorney General Opinion adds General Opinion are available in the title V permit. This legal authority is that as a practical matter New docket for review. The TSD includes a contained in New Hampshire’s enabling Hampshire will be aware of a source’s detailed analysis, including a program legislation and in regulatory provisions failure to apply for a title V permit checklist, of how the State’s program defining ‘‘applicable requirements’’ and before the source submits a belated and regulations compare with EPA’s permit application. The Attorney requirements and regulations. requiring that the permit must General Opinion asserts that the State incorporate all applicable requirements. 3. Permit Fee Demonstration has, based on its existing emissions EPA has determined that this legal inventory, already identified all sources Section 502(b)(3) of the Act requires authority is sufficient to allow New in the State subject to title V and has that each permitting authority collect Hampshire to issue permits that assure notified them of their obligation to fees sufficient to cover all reasonable compliance with all section 112 apply for a title V permit, and will direct and indirect costs required to requirements. therefore independently know of any develop and administer its title V Therefore, the State of New permit application violation that occurs. operating permit program. Each title V Hampshire’s legal authority is sufficient The Attorney General argues that since program submittal must contain either a to allow the State to issue permits that New Hampshire’s legislation excludes detailed demonstration of fee adequacy assure compliance with all section 112 from the scope of the penalty waiver or a demonstration that the fees requirements, and to carry out all provisions those violations collected exceed $25 per ton of actual section 112 activities at Part 70 sources. independently discovered by the State, emissions per year, adjusted from the For further rationale on this the waiver provisions would not apply August, 1989 consumer price index. The interpretation, please refer to the to permit application violations because $25 per ton was presumed by Congress Technical Support Document referenced the State would already know of the to cover all reasonable direct and above and the April 13, 1993 guidance violation at the time the source indirect costs to an operating permit memorandum titled ‘‘Title V Program belatedly applied. program. This minimum amount is Approval Criteria for Section 112 The Attorney General Opinion also referred to as the ‘‘presumptive Activities,’’ signed by John Seitz. addresses certain hypothetical factual minimum.’’ b. Implementation of 112(g) Upon New Hampshire has opted to make a situations and explains why the penalty Program Approval waiver and privilege provisions of the presumptive minimum fee State legislation would not apply. Those demonstration. In the fee regulation, the On February 14, 1995 EPA published situations involve instances in which a State proposes an emission based fee for an interpretive notice (see 60 FR 8333) title V source evaluates compliance with calculating the operating permit that postpones the effective date of a title V permit term or condition in a program fees. This fee is equivalent to section 112(g) until after EPA has method different from the compliance at least the Part 70 presumptive promulgated a rule addressing that method specified in the permit, or minimum fee of $25 per ton of regulated provision. The section 112(g) evaluates compliance at more frequent air pollutants, adjusted per the interpretive notice explains that EPA is time intervals than required by the title consumer price index (CPI). Using New still considering whether the effective V permit. In essence, since any Hampshire’s emission based fee date of section 112(g) should be delayed violations discovered in either of the approach, the State is charging a dollar beyond the date of promulgation of the two situations described above would per ton fee of $43.30 starting in 1995 Federal rule so as to allow states time be required to be reported under the and adjusting it annually by the CPI and to adopt rules implementing the Federal terms and conditions of the permit, an inventory stabilization factor (ISF). rule, and that EPA will provide for any disclosure of such violations could not The ISF is the quotient of the total such additional delay in the final be voluntary and hence could not statewide stationary source actual section 112(g) rulemaking. Unless and qualify for the penalty waiver or the emissions as determined from the until EPA provides for such an privilege. revised 1993 inventory divided by the additional postponement of section New Hampshire’s Attorney General total statewide stationary source actual 112(g) New Hampshire must be able to Opinion concludes that the privilege emissions from the previous calendar implement section 112(g) during the and penalty waiver provisions of New year. If the ISF computes to a number period between promulgation of the Hampshire’s audit legislation are not less than 1, then 1 shall be used as the Federal section 112(g) rule and adoption available to title V permit holders for ISF. New Hampshire’s average rate is of implementing State regulations. EPA violations of title V requirements. Based above the presumptive minimum believes that New Hampshire can utilize on the Attorney General’s discussion of adjusted by the CPI. its preconstruction permitting program the issues as described above, EPA is Therefore, New Hampshire has to serve as a procedural vehicle for not listing conditions on New demonstrated that the state is collecting implementing section 112(g) rule and Hampshire’s title V program approval sufficient permit fees to meet EPA’s making these requirements Federally 42226 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Proposed Rules enforceable between promulgation of regulations.3 EPA is delegating the 40 flexibility. However, the Agency solicited the Federal section 112(g) rule and CFR part 63 standards as indicated in comment on the rationale for this proposed adoption of implementing State Table II to the extent they apply to elimination. If EPA should conclude, during sources subject to New Hampshire’s title a final rulemaking, that section 502(b)(10) regulations. For this reason, EPA is changes are no longer required as a approving New Hampshire’s V program regulations. mechanism for operational flexibility, then preconstruction permitting program New Hampshire has informed EPA New Hampshire will not be required to found in Env-A 600, Statewide Permit that it intends to accept future address 502(b)(10) changes in its rule. delegation of section 112 standards by System, under the authority of title V This interim approval, which may not checking the appropriate boxes on a and Part 70 solely for the purpose of be renewed, extends for a period of up standardized checklist. The checklist implementing section 112(g) during the to two years. During the interim will list applicable regulations and will transition period between title V approval period, the State is protected be sent by the EPA Regional Office to approval and adoption of a State rule from sanctions for failure to have a New Hampshire. New Hampshire will implementing EPA’s section 112(g) program, and EPA is not obligated to accept delegation by checking the regulations. promulgate a Federal permits program appropriate box and returning the in the State. Permits issued under a Since the approval would be for the checklist to EPA Region I. The details of program with interim approval have full single purpose of providing a this delegation mechanism are set forth standing with respect to Part 70, and the mechanism to implement section 112(g) in the May 30, 1996 Memorandum of 1-year time period for submittal of during the transition period, the Agreement between New Hampshire permit applications by subject sources approval would be without effect if EPA and EPA. This program applies to both begins upon interim approval, as does decides in the final section 112(g) rule existing and future standards but is the 3-year time period for processing the that sources are not subject to the limited to sources covered by the Part requirements of the rule until State initial permit applications. 70 program. The original delegation The scope of the State of New regulations are adopted. Also, since the agreement between EPA and New Hampshire’s Part 70 program that EPA approval would be for the limited Hampshire was set forth in a letter to is proposing in this notice would apply purpose of allowing the State sufficient Dennis R. Lunderville dated September to all Part 70 sources (as defined in the time to adopt regulations, EPA is 30, 1982. approved program) within the State of limiting the duration of the approval to New Hampshire, except any sources of 18 months following promulgation by d. Commitment to Implement Title IV of the Act air pollution over which an Indian Tribe EPA of its section 112(g) rule. has jurisdiction. See, e.g., 59 FR 55813, New Hampshire has committed to 55815–55818 (Nov. 9, 1994). The term c. Program for Straight Delegation of take action, following promulgation by ‘‘Indian Tribe’’ is defined under the Act Section 111 and 112 Standards EPA of regulations implementing as ‘‘any Indian tribe, band, nation, or section 407 and 410 of the Act, or Requirements for operating permit other organized group or community, revisions to either Parts 72, 74, or 76 or program approval, specified in 40 CFR including any Alaska Native village, the regulations implementing section 70.4(b), encompass section 112(l)(5) which is Federally recognized as 407 or 410, to either incorporate by requirements for approval of a program eligible for the special programs and reference or submit, for EPA approval, for delegation of hazardous air pollutant services provided by the United States New Hampshire Department of requirements under section 112 and to Indians because of their status as Environmental Protection (DEP) standards as promulgated by EPA as Indians.’’ See section 302(r) of the CAA; regulations implementing these they apply to Part 70 sources. Section see also 59 FR 43956, 43962 (Aug. 25, provisions. 112(l)(5) requires that the State’s 1994); 58 FR 54364 (Oct. 21, 1993). program contain adequate authorities, B. Proposed Action Requirements for approval, specified adequate resources for implementation, The EPA is proposing to grant interim in 40 CFR 70.4(b), encompass section and an expeditious compliance approval to the operating permits 112(l)(5) requirements for approval of a schedule, which are also requirements program submitted by New Hampshire program for delegation of section 112 under Part 70. EPA is also granting on October 26, 1995. If promulgated, the standards as promulgated by EPA as approval under section 112(l)(5) and 40 State must make the following change to they apply to Part 70 sources. Section CFR 63.91 of the State’s program for receive full approval: 112(l)(5) requires that the State’s receiving delegation of section 112 program contain adequate authorities, 1. New Hampshire does not allow for standards that are unchanged from the adequate resources for implementation, ‘‘section 502(b)(10)’’ changes at a title V and an expeditious compliance Federal standards as promulgated, and source. In an August 29, 1994 (59 FR 44572) section 112 infrastructure programs rulemaking proposal, EPA proposed to schedule, which are also requirements such as those programs authorized eliminate section 502(b)(10) changes as a under Part 70. EPA is granting approval under sections 112(i)(5), 112(g), 112(j) mechanism for implementing operational under section 112(l)(5) and 40 CFR and 112(r) to the extent they apply to 63.91 of the State’s program for sources subject to New Hampshire’s title 3 The radionuclide National Emission Standards receiving delegation of section 112 V program regulations. EPA is for Hazardous Air Pollutant (NESHAP) is a section standards that are unchanged from 112 regulation and therefore, also an applicable Federal standards as promulgated. This reconfirming the 40 CFR parts 60 and 61 requirement under the State operating permits standards currently delegated to New program for Part 70 sources. There is not yet a program for delegations only applies to Hampshire as indicated in Table I.2 In Federal definition of ‘‘major’’ for radionuclide sources covered by the Part 70 program. sources. Therefore, until a major source definition addition, EPA is proposing to delegate for radionuclide is promulgated, no source would III. Administrative Requirements all future 40 CFR part 63 standards to be a major section 112 source solely due to its the extent they apply to sources subject radionuclide emissions. However, a radionuclide A. Opportunity for Public Comments to New Hampshire’s title V program source may, in the interim, be a major source under The EPA is requesting comments on Part 70 for another reason, thus requiring a Part 70 permit. The EPA will work with the State in the all aspects of the proposed interim 2 Please note that federal rulemaking is not development of its radionuclide program to ensure approval. Copies of the State’s submittal required for delegation of section 111 standards. that permits are issued in a timely manner. and other information relied upon for Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Proposed Rules 42227 the interim approval are contained in a to satisfy the requirements of 40 CFR EPA has determined that the action docket maintained at the EPA Regional Part 70. Because this action does not proposed today does not include a Office. The docket is an organized and impose any new requirements, it does Federal mandate that may result in complete file of all the information not have a significant impact on a estimated costs of $100 million or more submitted to, or otherwise considered substantial number of small entities. to either State, local, or tribal by, EPA in the development of this D. Unfunded Mandates governments in the aggregate, or to the interim approval. The principal private sector. This Federal action purposes of the docket are: Under Section 202 of the Unfunded proposes approving preexisting (1) to allow interested parties a means Mandates Reform Act of 1995 requirements under State or local law, to identify and locate documents so that (‘‘Unfunded Mandates Act’’), signed and imposes no new Federal they can effectively participate in the into law on March 22, 1995, EPA must requirements. Accordingly, no approval process, and prepare a budgetary impact statement to additional costs to State, local, or tribal (2) to serve as the record in case of accompany any proposed or final rule governments, or to the private sector, judicial review. The EPA will consider that includes a Federal mandate that result from this action. any comments received by September may result in estimated costs to State, 13, 1996. local, or tribal governments in the List of Subjects in 40 CFR Part 70 aggregate; or to the private sector, of B. Executive Order 12866 Administrative practice and $100 million or more. Under Section procedure, Air pollution control, The Office of Management and Budget 205, EPA must select the most cost- Environmental protection, has exempted this action from Executive effective and least burdensome Intergovernmental relations, Operating Order 12866 review. alternative that achieves the objectives permits, Reporting and recordkeeping of the rule and is consistent with requirements. C. Regulatory Flexibility Act statutory requirements. Section 203 The EPA’s actions under section 502 requires EPA to establish a plan for Authority: 42 U.S.C. 7401–7671q. of the Act do not create any new informing and advising any small Dated: July 22, 1996. requirements, but simply address governments that may be significantly John P. DeVillars, operating permits programs submitted or uniquely impacted by the rule. Regional Administrator, Region I.

TABLE I.Ð RECONFIRMATION OF PART 60 AND 61 DELEGATIONS

Part 60 Subpart Categories

D Fossil-Fuel Fired Steam Generators. Da Electric Utility Steam Generators. Db Industrial-Commercial-Institutional Steam Generating Unit. Dc Small Industrial-Commercial-Institutional Steam Generating Unit. E Incinerators. Ea Municipal Waste Combustors. I Asphalt Concrete Plants. J Petroleum Refineries. K Petroleum Liquid Storage Vessels. Ka Petroleum Liquid Storage Vessels. Kb Petroleum Liquid Storage Vessels. L Secondary Lead Smelters. M Secondary Brass and Bronze Production Plants. N Basic Oxygen Process Furnaces Primary Emissions. O Sewage Treatment Plants. AA Steel Plants-Electric Arc Furnaces. BB Kraft Pulp Mills. DD Grain Elevators. EE Surface Coating of Metal Furniture. GG Stationary Gas Turbines. KK Lead-Acid Battery Manufacturing. LL Metallic Mineral Processing Plants. QQ Graphic Arts-Rotogravure Printing. RR Tape and Label Surface Coatings. TT Metal Coil Surface Coating. VV Equipment Leaks of Voc in Socmi. WW Beverage Can Surface Coating. XX Bulk Gasoline Terminals. BBB Rubber Tire Manufacturing. FFF Flexible Vinyl and Urethan Coating and Printing. GGG Equipment Leaks of Voc in Petroleum Refineries. HHH Synthetic Fiber Production. JJJ Petroleum Dry Cleaners. OOO Nonmetallic Mineral Plants. QQQ Voc From Petroleum Refinery Waste Water Systems. SSS Magnetic Tape Coating. TTT Surface Coating of Plastic Parts For Business Machines. UUU Calciners and Dryers in the Mineral Industry. VVV Polymetric Coating of Supporting Substrates. 42228 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Proposed Rules

TABLE I.Ð RECONFIRMATION OF PART 60 AND 61 DELEGATIONSÐContinued

Part 61 Subpart Categories

C Beryllium. E Mercury. J Equipment Leaks of Benzene. M Asbestos. V Equipment Leaks (Fugitive Emission Sources).

TABLE II.ÐDELEGATION OF PART 63 STANDARDS AS THEY APPLY TO NEW HAMPSHIRE'S TITLE V OPERATING PERMITS PROGRAM

Part 63 Subpart Categories

A General Provisions. B Equivalent Emission Limitation by Permit. D Compliance Extensions for Early Reductions. F National Emission Standards for Organic Hazardous Air Pollutants From the Synthetic Organic Chemical Manufacturing Industry. G National Emission Standards for Organic Hazardous Air Pollutants From the Synthetic Organic Chemical Manufacturing Industry Process Vents, Storage Vessels, Transfer Operations, and Wastewater. H National Emission Standards for Organic Hazardous Air Pollutants for Equipment Leaks. I National Emission Standards for Organic Hazardous Air Pollutants for Certain Processes Subject to the Negotiated Regulation for Equipment Leaks. M National Perchloroethylene Air Emission Standards for Dry Cleaning Facilities. N National Emission Standards for Chromium Emissions from Hard and Decorative Electroplating and Chromium Anodizing Tanks. O Ethylene Oxide Emission Standards for Sterilization Facilities. Q National Emission Standards for Hazardous Air Pollutants for Industrial Cooling Towers. R National Emission Standards for Organic Hazardous Air Pollutants for Source Categories: Gasoline Distribution (Stage I). T National Emission Standards for Halogenated Solvent Cleaning. W National Emission Standards for Organic Hazardous Air Pollutants for Epoxy Resins Production and Non-Nylon Polyamides Pro- duction. X National Emission Standards for Organic Hazardous Air Pollutants From Secondary Lead Smelting. Y National Emission Standards for Organic Hazardous Air Pollutants for Marine Tank Vessel Loading Operations. CC National Emission Standards for Organic Hazardous Air Pollutants: Petroleum Refineries. GG National Emission Standards for Organic Hazardous Air Pollutants for source categories: Aerospace Manufacturing and Rework. JJ National Emission Standards for Wood Furniture Manufacturing Operations. KK National Emission Standards for Printing and Publishing.

[FR Doc. 96–20591 Filed 8–13–96; 8:45 am] dismiss the petitioner’s proposal. With Federal Communications Commission. BILLING CODE 6560±50±P this action, this proceeding is John A. Karousos, terminated. Chief, Allocations Branch, Policy and Rules Division, Mass Media Bureau. FOR FURTHER INFORMATION CONTACT: [FR Doc. 96–20641 Filed 8–13–96; 8:45 am] FEDERAL COMMUNICATIONS Sharon P. McDonald, Mass Media COMMISSION Bureau, (202) 418–2180. BILLING CODE 6712±01±F 47 CFR Part 73 SUPPLEMENTARY INFORMATION: This is a synopsis of the Commission’s Report 47 CFR Part 73 [MM Docket No. 96±26; RM±8749] and Order, MM Docket No. 96–26, [MM Docket No. 94±70; RM±8474; 8706] Radio Broadcasting Services; adopted July 3, 1996, and released July Booneville, KY 12, 1996. The full text of this Radio Broadcasting Services; Moncks Commission decision is available for Corner, Kiawah Island, and Sampit, SC AGENCY: Federal Communications inspection and copying during normal Commission. business hours in the FCC Reference AGENCY: Federal Communications ACTION: Proposed rule; dismissal of. Center (Room 239), 1919 M Street, NW., Commission. Washington, DC. The complete text of ACTION: Proposed rule; denial of. SUMMARY: The Commission, at the this decision may also be purchased request of James P. Gray, dismisses the SUMMARY: The Commission denies the from the Commission’s copy petition for rule making proposing the petition for rule making filed by Ceder allotment of Channel 287A at contractors, International Transcription Carolina Limited Partnership proposing Booneville, Kentucky, as the Service, Inc., (202) 857–3800, 2100 M the substitution of Channel 288C2 for community’s first local aural Street, NW., Suite 140, Washington, DC Channel 287C3 at Moncks Corner, South transmission service See 61 FR 9411, 20037. Carolina, the reallotment of Channel March 8, 1996. It is the Commission’s List of Subjects in 47 CFR Part 73 288C2 from Moncks Corner to Kiawah policy to refrain from making allotments Island, and the modification of Station to a community absent an expression of Radio broadcasting. WNST(FM)’s license accordingly (RM– interest. Therefore, since there has been 8474). See 59 FR 35082, July 8, 1994. no such interest expressed here, we We also deny the counterproposal filed Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Proposed Rules 42229 by Sampit Broadcasting proposing the Channel 264C3 can be allotted to Irvine parte contacts are prohibited in allotment of Channel 289A at Sampit, with a site restriction of 7.7 kilometers Commission proceedings, such as this South Carolina (RM–8706). The (4.8 miles) west to avoid short-spacings one, which involve channel allotments. Commission finds that the Kiawah and to the licensed sites of Station See 47 CFR 1.1204(b) for rules Sampit proposals are technically and/or WWYC(FM), Channel 261C2, governing permissible ex parte contacts. legally deficient, and are therefore not Winchester, Kentucky, and Station For information regarding proper grantable. With action this action, WSGS(FM) Channel 266C, Hazard, filing procedures for comments, see 47 proceeding is terminated. Kentucky. The coordinates for Channel CFR 1.415 and 1.420. 264C3 at Irvine are North Latitude 37– FOR FURTHER INFORMATION CONTACT: List of Subjects in 47 CFR Part 73 Sharon P. McDonald, Mass Media 43–27 and West Longitude 84–02–38. Bureau, (202) 418–2180. See Supplementary Information, infra. Radio broadcasting. SUPPLEMENTARY INFORMATION: This is a DATES: Comments must be filed on or Federal Communications Commission. synopsis of the Commission’s Report before September 23, 1996, and reply John A. Karousos, and Order, MM Docket No. 94–70, comments on or before October 8, 1996. Chief, Allocations Branch, Policy and Rules adopted July 17, 1996, and released July ADDRESSES: Federal Communications Division, Mass Media Bureau. 19, 1996. The full text of this Commission, Washington, DC 20554. In [FR Doc. 96–20642 Filed 8–13–96; 8:45 am] Commission decision is available for addition to filing comments with the BILLING CODE 6712±01±F inspection and copying during normal FCC, interested parties should serve the business hours in the FCC Reference petitioner, or its counsel or consultant, Center (Room 239), 1919 M Street, NW., as follows: John S. Neely, Esq., Miller & 47 CFR Part 73 Washington, DC. The complete text of Miller, P.C, P.O. Box 33003, [MM Docket No. 96±141; RM±8835] this decision may also be purchased Washington, DC 20033 (Counsel for from the Commission’s copy Petitioners). Radio Broadcasting Services; Lupton, contractors, International Transcription FOR FURTHER INFORMATION CONTACT: MI Service, Inc., (202) 857–3800, 2100 M Sharon P. McDonald, Mass Media Street, NW., Suite 140, Washington, DC Bureau, (202) 418–2180. AGENCY: Federal Communications Commission. 20037. SUPPLEMENTARY INFORMATION: This is a ACTION: Proposed rule. List of Subjects in 47 CFR Part 73 synopsis of the Commission’s Notice of Proposed Rule Making, MM Docket No. SUMMARY: Radio broadcasting. This document requests 96–161, adopted July 26, 1996, and comments on a petition filed by Bible Federal Communications Commission. released August 2, 1996. The full text of Baptist Church requesting the allotment John A. Karousos, this Commission decision is available of Channel 272A to Lupton, Michigan, Chief, Allocations Branch, Policy and Rules for inspection and copying during and reservation of the channel for Division, Mass Media Bureau. normal business hours in the FCC noncommercial educational use. The [FR Doc. 96–20709 Filed 8–13–96; 8:45 am] Reference Center (Room 239), 1919 M coordinates for Channel *272A at BILLING CODE 6712±01±F Street, NW., Washington, DC. The Lupton are 44–30–25 and 84–08–12. complete text of this decision may also There is a site restriction 12.2 be purchased from the Commission’s kilometers (7.6 miles) northwest of the 47 CFR Part 73 copy contractor, International community. Canadian concurrence will Transcription Service, Inc., (202) 857– [MM Docket No. 96±161; RM±8842] be requested for this allotment. 3800, 2100 M Street, NW., Suite 140, DATES: Comments must be filed on or Radio Broadcasting Services; Carlisle, Washington, DC 20037. before September 9, 1996, and reply Channel 291C3 can be allotted to Irvine and Morehead, KY comments on or before September 24, Morehead with a site restriction of 3.6 1996. AGENCY: Federal Communications kilometers (2.3 miles) west to avoid a ADDRESSES: Commission. short-spacing to the licensed site of Federal Communications Commission, Washington, DC 20554. In ACTION: Proposed rule. Station WMST-FM, Channel 288A, Mount Sterling, Kentucky. The addition to filing comments with the SUMMARY: The Commission requests coordinates for Channel 291C3 at FCC, interested parties should serve the comments on a petition jointly filed by Morehead are North Latitude 38–11–17 petitioner’s counsel, as follows: Dennis James P. Gray, Kentucky River and West Longitude 83–28–37. In F. Begley, Reddy, Begley & McCormick, Broadcasting Company, and WMOR, accordance with Section 1.420(g)(3) of 1001 - 22nd Street, NW., Suite 350, Inc., proposing the substitution of the Commission’s Rules, these proposals Washington, DC 20037–1803. Channel 221C3 for Channel 264A at constitute ‘‘incompatible channels FOR FURTHER INFORMATION CONTACT: Carlisle, Kentucky; the substitution of swaps.’’ Therefore, any persons Kathleen Scheuerle, Mass Media Channel 264C3 for Channel 291A at expressing interest in the respective Bureau, (202) 418–2180. Irvine, Kentucky; the substitution of channels should demonstrate why these SUPPLEMENTARY INFORMATION: This is a Channel 291C3 for Channel 221A at proposals are not ‘‘incompatible synopsis of the Commission’s Notice of Morehead, Kentucky, and the channel swaps’’ such that their Proposed Rule Making, MM Docket No. modification of the stations’ respective expressions of interest are foreclosed. 96–141, adopted July 12, 1996, and licenses accordingly. Channel 221C3 Provisions of the Regulatory released July 19, 1996. The full text of can be allotted to Carlisle in compliance Flexibility Act of 1980 do not apply to this Commission decision is available with the Commission’s minimum this proceeding. for inspection and copying during distance separation requirements with a Members of the public should note normal business hours in the site restriction of 13.1 kilometers (8.1 that from the time a Notice of Proposed Commission’s Reference Center (Room miles) east. The coordinates for Channel Rule Making is issued until the matter 239), 1919 M Street, NW., Washington, 221C3 at Carlisle are North Latitude 38– is no longer subject to Commission DC. The complete text of this decision 17–42 and West Longitude 83–52–32. consideration or court review, all ex may also be purchased from the 42230 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Proposed Rules

Commission’s copy contractors, FCC, interested parties should serve the the Commission’s minimum distance International Transcription Services, petitioner, or its counsel or consultant, separation requirements with a site Inc., 2100 M Street, NW., Suite 140, as follows: J.J. McVeigh, Bernstein and restriction of 10.6 kilometers (6.6 miles) Washington, DC 20037, (202) 857–3800. McVeigh, 1818 N Street, Northwest, northwest in order to avoid a short- Provisions of the Regulatory Suite 700, Washington, DC 20036 spacing conflict with the licensed site of Flexibility Act of l980 do not apply to (Counsel for petitioner). Station WBTG(FM), Channel 292C3, this proceeding. FOR FURTHER INFORMATION CONTACT: Pam Sheffield, Alabama. The coordinates for Members of the public should note Blumenthal, Mass Media Bureau, (202) Channel 293A at Clifton are 35–28–01 that from the time a Notice of Proposed 418–2180. and 88–03–11. Rule Making is issued until the matter SUPPLEMENTARY INFORMATION: This is a DATES: Comments must be filed on or is no longer subject to Commission synopsis of the Commission’s Further before September 23, 1996, and reply consideration or court review, all ex Notice of Proposed Rule Making, MM comments on or before October 8, 1996. parte contacts are prohibited in Docket No. 95–49, adopted July 26, ADDRESSES: Commission proceedings, such as this 1996, and released August 2, 1996. The Federal Communications one, which involve channel allotments. full text of this Commission decision is Commission, Washington, DC 20554. In See 47 CFR 1.1204(b) for rules available for inspection and copying addition to filing comments with the governing permissible ex parte contact. during normal business hours in the FCC, interested parties should serve the For information regarding proper FCC’s Reference Center (Room 239), petitioner, or its counsel or consultant, filing procedures for comments, see 47 1919 M Street, NW., Washington, DC. as follows: Frank R.Jazzo, Fletcher, CFR 1.415 and 1.420. The complete text of this decision may Heald & Hildreth, P.L.C., 11th Floor, 1300 North 17th Street, Rosslyn, List of Subjects in 47 CFR Part 73 also be purchased from the Virginia 22209–3801 (Counsel for Radio broadcasting. Commission’s copy contractor, ITS, Inc., (202) 857–3800, 2100 M Street, NW., petitioner). Federal Communications Commission. Suite 140, Washington, DC 20037. FOR FURTHER INFORMATION CONTACT: Pam John A. Karousos Provisions of the Regulatory Blumenthal, Mass Media Bureau, (202) Chief, Allocations Branch, Policy and Rules Flexibility Act of 1980 do not apply to 418–2180. Division, Mass Media Bureau. this proceeding. SUPPLEMENTARY INFORMATION: This is a [FR Doc. 96–20643 Filed 8–13–96; 8:45 am] Members of the public should note synopsis of the Commission’s Notice of that from the time a Notice of Proposed BILLING CODE 6712±01±F Proposed Rule Making, MM Docket No. Rule Making is issued until the matter 96–163, adopted July 26, 1996, and is no longer subject to Commission released August 2, 1996. The full text of 47 CFR Part 73 consideration or court review, all ex this Commission decision is available parte contacts are prohibited in [MM Docket No. 95±49; RM±8558] for inspection and copying during Commission proceedings, such as this normal business hours in the FCC’s one, which involve channel allotments. Radio Broadcasting Services; Llano Reference Center (Room 239), 1919 M See 47 CFR 1.1204(b) for rules and Marble Falls, TX Street, NW., Washington, DC. The governing permissible ex parte contacts. complete text of this decision may also AGENCY: Federal Communications For information regarding proper be purchased from the Commission’s Commission. filing procedures for comments, see 47 copy contractor, ITS, Inc., (202) 857– ACTION: Proposed rule. CFR 1.415 and 1.420. 3800, 2100 M Street, NW., Suite 140, SUMMARY: The Commission is issuing List of Subjects in 47 CFR Part 73 Washington, DC 20037. this Further Notice to solicit comments Radio broadcasting. Provisions of the Regulatory on the proposal to allot Channel 242A Federal Communications Commission. Flexibility Act of 1980 do not apply to at Llano, Texas, as requested by this proceeding. Maxagrid Broadcasting Corporation, John A. Karousos, Chief, Allocations Branch, Policy and Rules Members of the public should note licensee of Station KLKM(FM), Channel that from the time a Notice of Proposed 284C3, Llano, Texas. See 60 Fr 22021, Division, Mass Media Bureau. [FR Doc. 96–20644 Filed 8–13–96; 8:45 am] Rule Making is issued until the matter May 4, 1995. Channel 242A can be is no longer subject to Commission BILLING CODE 6712±01±F allotted to Llano in compliance with the consideration or court review, all ex Commission’ minimum separation parte contacts are prohibited in requirements with a site restriction of 47 CFR Part 73 Commission proceedings, such as this 9.1 kilometers (5.7 miles) north to avoid one, which involve channel allotments. a short-spacing conflict with the [MM Docket No.96±163, RM±8841] See 47 CFR 1.1204(b) for rules licensed site of Station KSJL(FM), governing permissible ex parte contacts. Channel 241C1, San Antonio, Texas. Radio Broadcasting Services; Clifton, The coordinates for Channel 242A are TN For information regarding proper 30–49–57 and 98–40–44. Since Llano is filing procedures for comments, see 47 AGENCY: Federal Communications located within 320 kilometers (199 CFR 1.415 and 1.420. Commission. miles) of the U.S.-Mexican border, List of Subjects in 47 CFR Part 73 concurrence of the Mexican government ACTION: Proposed rule. Radio broadcasting. has been requested. SUMMARY: The Commission requests DATES: Comments must be filed on or comments on a petition by D. Mitchell Federal Communications Commission. before September 23, 1996, and reply Self Broadcasting, Inc. proposing the John A. Karousos, comments on or before October 8, 1996. allotment of Channel 293A at Clifton, Chief, Allocations Branch, Policy and Rules ADDRESSES: Federal Communications Tennessee, as the community’s first Division, Mass Media Bureau. Commission, Washington, DC 20554. In local FM service. Channel 293A can be [FR Doc. 96–20645 Filed 8–13–96; 8:45 am] addition to filing comments with the allotted to Clifton in compliance with BILLING CODE 6712±01±F 42231

Notices Federal Register Vol. 61, No. 158

Wednesday, August 14, 1996

This section of the FEDERAL REGISTER Records Inspection Facility, Room 6020, containing up to two percent egg white. contains documents other than rules or U.S. Department of Commerce, Also excluded are imports of organic proposed rules that are applicable to the Washington, D.C. For further pasta from Italy that are accompanied by public. Notices of hearings and investigations, information, contact Ms. Lee Ann the appropriate certificate issued by the committee meetings, agency decisions and Carpenter on (202) 482–2583. Associazione Marchigiana Agricultura rulings, delegations of authority, filing of petitions and applications and agency Dated: August 8, 1996. Biologica (AMAB) or by Bioagricoop statements of organization and functions are Iain S. Baird, scrl. On July 9, 1996, after the date of our examples of documents appearing in this Deputy Assistant Secretary for Export section. Administration. final antidumping duty determination, Euro-USA Trading Co., Inc., of [FR Doc. 96–20683 Filed 8–13–96; 8:45 am] Pawcatuck, CT, submitted materials to DEPARTMENT OF COMMERCE BILLING CODE 3510±DT±M the Department supporting its request for an exclusion for pasta certified to be Bureau of Export Administration International Trade Administration ‘‘organic pasta.’’ Among the documents submitted are a decree from the Italian President's Export Council [A±475±818] Ministry of Agriculture and Forestry Subcommittee On Export authorizing Bioagricoop scrl to certify Administration; Notice of Partially Notice of Second Amendment to the foodstuffs as organic for the Closed Meeting Final Determination and Antidumping implementation of EEC Regulation Duty Order: Certain Pasta From Italy A partially closed meeting of the 2029/91. Also submitted is a letter (with President’s Export Council AGENCY: Import Administration, an accompanying translation into Subcommittee on Export International Trade Administration, English) from the Director of Controls of Administration (PECSEA) will be held Department of Commerce. Processing and Marketing Firms at September 6, 1996, 9:30 a.m., at the U.S. EFFECTIVE DATE: August 14, 1996. Bioagricoop stating that the organization Department of Commerce, Herbert C. FOR FURTHER INFORMATION CONTACT: John will take responsibility for its organic Hoover Building, Room 4830, 14th Brinkmann at (202) 482–5288, Jennifer pasta certificates and will supply Street between Pennsylvania and Katt at (202) 482–0498, or Greg necessary documentation to U.S. Constitution Avenues, N.W., Thompson at (202) 482–3003, Office of authorities. On this basis, imports of Washington, D.C. The Subcommittee AD/CVD Duty Enforcement II, Import organic pasta from Italy that are provides advice on matters pertinent to Administration, International Trade accompanied by the appropriate those portions of the Export Administration, U.S. Department of certificate issued by Bioagricoop scrl are Administration Act, as amended, that Commerce, 14th Street and Constitution excluded from the scope of this order. deal with United States policies of Avenue, N.W., Washington, D.C. 20230. The merchandise under order is encouraging trade with all countries currently classifiable under items with which the United States has Applicable Statute and Regulations 1902.19.20 of the Harmonized Tariff diplomatic or trading relations and of Unless otherwise indicated, all Schedule of the United States (HTSUS). controlling trade for national security citations to the statute are references to Although the HTSUS subheadings are and foreign policy reasons. the provisions effective January 1, 1995, provided for convenience and customs purposes, our written description of the Public Session the effective date of the amendments made to the Tariff Act of 1930 by the scope of this order is dispositive. 1. Opening remarks by the Chairman. Uruguay Round Agreements Act Second Amendment to the Final 2. Presentation of papers or comments (URAA). Determination and Antidumping Duty by the public. Order 3. Update on Administration export Scope of Order control initiatives. The scope of this order consists of In accordance with section 735(a) of 4. Task Force reports. certain non-egg dry pasta in packages of the Tariff Act of 1930, as amended (the five pounds (or 2.27 kilograms) or less, Act), on July 17, 1996, the Department Closed Session whether or not enriched or fortified or amended its final determination and 5. Discussion of matters properly containing milk or other optional released an order that certain pasta classified under Executive Order 12958, ingredients such as chopped vegetables, (pasta) from Italy is being, or is likely to dealing with the U.S. export control vegetable purees, milk, gluten, diastases, be, sold in the United States at less than program and strategic criteria related vitamins, coloring and flavorings, and fair value (61 FR 38547 (July 24, 1996)). thereto. up to two percent egg white. The pasta On July 26, 1996, we received a A notice of Determination to close covered by this scope is typically sold submission from one of the respondents meetings, or portions of meetings, of the in the retail market, in fiberboard or to the antidumping investigation, Subcommittee to the public on the basis cardboard cartons or polyethylene or Liguori Pastificio dal 1820, SpA, of 5 U.S.C. 522(c)(1) was approved polypropylene bags, of varying (Liguori), alleging an error in the October 27, 1995, in accordance with dimensions. Department’s calculation of the the Federal Advisory Committee Act. A Excluded from the scope of this order company’s antidumping duty deposit copy of the Notice of Determination is are refrigerated, frozen, or canned rate. Specifically, Liguori argued that available for public inspection and pastas, as well as all forms of egg pasta, the Department failed to take into copying in the Central Reference and with the exception of non-egg dry pasta account the fact that the company is 42232 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices depositing estimated countervailing operate the Minority Business CLOSING DATE: SEPTEMBER 20, duties at the ‘‘All Others’’ rate listed in Development Centers (MBDC) listed in 1996. the Countervailing Duty (CVD) Order. this document. PRE-APPLICATION CONFERENCE: Liguori contends that 0.83 percent of The purpose of the MBDC Program is Wednesday, August 28, 1996, 9:00 a.m., this CVD deposit rate reflects export to provide business development Pena Business Plaza, 930 West 7th subsidies. We have reviewed Liguori’s assistance to persons who are members Avenue, Conference Room, Denver, argument and agree, pursuant to Article of groups determined by MBDA to be Colorado 80202. VI (5) of the General Agreement on socially or economically disadvantaged, FOR FURTHER INFORMATION AND Tariffs and Trade (1947) which and to business concerns owned and AN APPLICATION PACKAGE, prohibits assessing dumping duties on controlled by such individuals. To this CONTACT: Bobby Jefferson, Acting the portion of the CVD margin end, MBDA funds organizations to Regional Director, at (214) 767–8001. attributable to an export subsidy, that identify and coordinate public and COST OF PERFORMANCE the Department did not deduct the private sector resources on behalf of INFORMATION: Contingent upon the export subsidy portion of the ‘‘All minority individuals and firms; to offer availability of Federal funds, the cost of Others’’ rate in calculating the a full range of client services to minority performance for the first budget period antidumping deposit rate for Ligouri. In entrepreneurs; and to serve as a conduit (13 months) from December 1, 1996 to addition, the Department noted this of information and assistance regarding December 31, 1997, is estimated at same correction will apply to another minority business. $314,778. The total Federal amount is respondent, Pastificio Fratelli Pagani In accordance with the Interim Final $188,867 and is composed of $184,260 S.p.A. Correction of these errors results Policy published in the Federal Register plus the Audit Fee amount of $4,607. in the following cash deposits for the on May 31, 1996, the cost-share The application must include a subject merchandise: requirement for the MBDCs listed in this minimum cost share of 40%, $125,911 notice has been increased to 40%. The in non-federal (cost-sharing) Cash Department of Commerce will fund up contributions for a total project cost of Manufacturer/producer/exporter deposit $314,778. rate to 60% of the total cost of operating an MBDC on an annual basis. The MBDC 2. MBDC APPLICATION: Dallas/Ft. Arrighi/Italpasta ...... 19.09 operator is required to contribute at Worth/Arlington De Cecco ...... 46.67 least 40% of the total project cost (the De Matteis ...... 0.00 ‘‘cost-share requirement’’). METROPOLITAN AREA SERVICED: Delverde/Tamma ...... 1.68 Cost-sharing contributions may be in Dallas/Ft. Worth/Arlington, Texas. La Molisana ...... 14.73 the form of cash, client fees, third party AWARD NUMBER: 06–10–97003–01. CLOSING DATE: SEPTEMBER 20, Liguori ...... 11.58 in-kind contributions, non-cash Pagani ...... 17.47 1996. applicant contributions or combinations All Others ...... 11.26 PRE-APPLICATION CONFERENCE: thereof. In addition to the traditional Thursday, August 22, 1996, 9:00 a.m., sources of an MBDC’s cost-share This notice constitutes the second Earl Cable Federal Building, U.S. contribution, the 40% may be amendment to the final determination Department of Commerce, Minority contributed by local, state and private and antidumping duty order with Business Development Agency, 1100 sector organizations. It is anticipated respect to pasta from Italy, pursuant to Commerce Street, Room 7B23, Dallas, that some organizations may apply section 736(a) of the Act. Interested Texas 75242. parties may contact the Central Records jointly for an award to operate the FOR FURTHER INFORMATION AND Unit, Room B–099 of the Main center. For administrative purposes, one AN APPLICATION PACKAGE, Commerce Building, for copies of an organization must be designated as the CONTACT: Bobby Jefferson, Acting updated list of antidumping duty orders recipient organization. Regional Director, at (214) 767–8001. currently in effect. Pre-Application Conference: A pre- COST OF PERFORMANCE This order is published pursuant to application conference will be held. The INFORMATION: Contingent upon the section 736(a) of the Act (19 USC 1673e date, time, and location is listed below availability of Federal funds, the cost of (a)) and 19 CFR 353.21. for each Center. performance for the first budget period Dated: August 8, 1996. (Proper Identification Is Required for (13 months) from December 1, 1996 to Robert S. LaRussa, Entrance Into any Federal Building). December 31, 1997, is estimated at $628,702. The total Federal amount is Acting Assistant Secretary for Import ADDRESSES: Completed application $377,221 and is composed of $368,020 Administration. packages MUST be submitted to the [FR Doc. 96–20749 Filed 8–13–96; 8:45 am] plus the Audit Fee amount of $9,201. U.S. DEPARTMENT OF COMMERCE, The application must include a BILLING CODE 3510±DS±P MINORITY BUSINESS DEVELOPMENT minimum cost share of 40%, $251,481 AGENCY, MBDA EXECUTIVE in non-federal (cost-sharing) SECRETARIAT, 14TH AND Minority Business Development contributions for a total project cost of CONSTITUTION AVENUE, N.W., $628,702. Agency ROOM 5073, WASHINGTON, D.C. 20230, TELEPHONE NUMBER (202) 3. MBDC APPLICATION: Anaheim Notice; Solicitation of Business 482–3763. Development Center Applications for METROPOLITAN AREA SERVICED: Denver, Dallas/Ft. Worth/Arlington and SUPPLEMENTARY INFORMATION: The Anaheim, California. Anaheim following are MBDCs for which AWARD NUMBER: 09–10–97006–01. applications are solicited: CLOSING DATE: SEPTEMBER 27, SUMMARY: In accordance with Executive 1996. Order 11625 and 15 U.S.C. 1512, the 1. MBDC APPLICATION: Denver PRE-APPLICATION CONFERENCE: A Minority Business Development Agency METROPOLITAN AREA SERVICED: pre-application will be held. For the (MBDA) is soliciting competitive Denver, Colorado. exact date, time, and location, contact applications from organizations to AWARD NUMBER: 08–10–97001–01. the San Francisco Regional Office. Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices 42233

FOR FURTHER INFORMATION AND the solicitation for the award. Where an of the PRA, unless that collection of AN APPLICATION PACKAGE, applicant organization has been in information displays a currently valid CONTACT: Melda Cabrera, Regional existence for fewer than five years or OMB Control Number. The collection of Director, at (415) 744–3001. has been present in the geographic information requirements for this COST OF PERFORMANCE service area for fewer than five years, project have been approved by the INFORMATION: Contingent upon the the individual years of experience of the Office of Management and Budget availability of Federal funds, the cost of applicant organization’s principals may (OMB) and assigned OMB control performance for the first budget period be applied toward the requirement of number 0640–0006. (13 months) from January 1, 1997 to five years of organization experience. Awards under this program shall be January 31, 1998, is estimated at The individual years of experience must subject to all Federal laws, and Federal $550,938. The Total Federal amount is have been acquired in the geographic and Departmental regulations, policies, $330,563 and is composed of $322,500 service area which is the subject of the and procedures applicable to Federal plus the Audit Fee amount of $8,063. solicitation. An application must financial assistance awards. The application must include a receive at least 70% of the points Pre-Award Cost—Applicants are minimum cost share of 40%, $220,375 assigned to each evaluation criteria hereby notified that if they incur any in non-federal (cost-sharing) category to be considered costs prior to an award being made, they contributions for a total project cost of programmatically acceptable and do so solely at their own risk of not $550,938. responsive. Those applications being reimbursed by the Government. Standard Paragraphs determined to be acceptable and Notwithstanding any verbal assurance responsive will then be evaluated by the that an applicant may have received, The following information and Director of MBDA. Final award there is no obligation on the part of the requirements are applicable to the listed selections shall be based on the number Department of Commerce to cover pre- MBDCs: Denver, Dallas/Ft. Worth/ of points received, the demonstrated award costs. Arlington and Anaheim. responsibility of the applicant, and the Outstanding Account Receivable—No The funding instrument for this determination of those most likely to project will be a cooperative agreement. award of Federal Funds shall be made further the purpose of the MBDA to an applicant who has an outstanding If the recommended applicant is the program. Negative audit findings and current incumbent organization, the delinquent Federal debt until either the recommendations and unsatisfactory delinquent account is paid in full, award will be for 12 months. For those performance under prior Federal awards applicants who are not incumbent repayment schedule is established and may result in an application not being at least one payment is received, or organizations or who are incumbents considered for award. The applicant that have experienced closure due to a other arrangements satisfactory to the with the highest point score will not Department of Commerce are made. break in service, a 30-day start-up necessarily receive the award. Periodic Name Check Policy—All non-profit period will be added to their first budget reviews culminating in year-to-date and for-profit applicants are subject to a period, making it a 13-month award. evaluations will be conducted to name check review process. Name Competition is open to individuals, determine if finding for the project checks are intended to reveal if any key non-profit and for-profit organizations, should continue. Continued funding individuals associated with the state and local governments, American will be at the total discretion of MBDA applicant have been convicted of or are Indian tribes and educational based on such factors as the MBDC’s presently facing criminal charges such institutions. performance, the availability of funds as fraud, theft, perjury or other matters Applications will be evaluated on the and Agency priorities. following criteria: the knowledge, The MBDC shall be required to which significantly reflect on the background and/or capabilities of the contribute at least 40% of the total applicant’s management honesty or firm and its staff in addressing the needs project cost through non-federal financial integrity. of the business community in general contributions. To assist in this effort, the Award Termination—The and, specifically, the special needs of MBDC may charge client fees for Departmental Grants Officer may minority businesses, individuals and services rendered. Fees may range from terminate any grant/cooperative organizations (45 points), the resources $10 to $60 per hour based on the gross agreement in whole or in part at any available to the firm in providing receipts of the client’s business. time before the date of completion business development services (10 Anticipated processing time of this whenever it is determined that the points); the firm’s approach (techniques award is 120 days. Executive order award recipient has failed to comply and methodologies) to performing the 12372, ‘‘Intergovernmental Review of with the conditions of the grant/ work requirements included in the Federal Programs,’’ is not applicable to cooperative agreement. Examples of application (25 points); and the firm’s this program. Federal funds for this some of the conditions which can cause estimated cost for providing such project include audit funds for non-CPA termination are failure to meet cost- assistance (20 points). In accordance recipients. In the event that a CPA firm sharing requirements; unsatisfactory with Interim Final Policy published in wins the competition, the funds performance of the MBDC work the Federal Register on May 31, 1996, allocated for audits are not applicable. requirements; and reporting inaccurate the scoring system will be revised to Questions concerning the preceding or inflated claims of client assistance. add ten (10) bonus points to the information can be answered by the Such inaccurate or inflated claims may application of community-based contact person indicated above, and be deemed illegal and punishable by organizations. Each qualifying copies of application kits and applicable law. application will receive the full ten regulations can be obtained at the above False Statements—A false statement points. Community-based applicant address. Notwithstanding any other on an application for Federal financial organizations are those organizations provision of the law, no person is assistance is grounds for denial or whose headquarters and/or principal required to respond to, nor shall any termination of funds, and grounds for place of business within the last five person be subject to a penalty for failure possible punishment by a fine or years have been located within the to comply with a collection of imprisonment as provided in 18 U.S.C. geographic service area designated in information, subject to the requirements 1001. 42234 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices

Primary Applicant Certifications—All 11.800 Minority Business Development ACTION: Notice of regional public primary applicants must submit a Center hearings. completed Form CD–511, (Catalog of Federal Domestic Assistance) ‘‘Certifications Regarding Debarment, Dated: August 9, 1996. SUMMARY: On Monday, June 17, 1996, Suspension and Other Responsibility Donald L. Powers, Corps published a proposal to reissue Matters; Drug-Free Workplace Federal Register Liaison Officer, Minority the existing nationwide permits (NWPs) Requirements and Lobbying.’’ Business Development Agency. and conditions, with some Nonprocurement Debarment and [FR Doc. 96–20740 Filed 8–13–96; 8:45 am] modifications, issue four new NWPs, and proposed options for the threshold Suspension—Prospective participants BILLING CODE 3510±21±M (as defined at 15 CFR Part 26, Section limits for NWP 26 (61 FR 30780). The 26.105) are subject to 15 CFR Part 26, Corps is conducting six regional public hearings to address regional issues on ‘‘Nonprocurement Debarment and DEPARTMENT OF DEFENSE Suspension’’ and the related section of these NWP proposals. the certification form prescribed above Corps of Engineers, Department of the DATES: See SUPPLEMENTARY INFORMATION applies. Army below for dates, times, locations, and Drug Free Workplace—Grantees (as points of contact for these hearings. defined at 15 CFR Part 26, Section Proposal to Issue, Reissue, and Modify FOR FURTHER INFORMATION CONTACT: 26.605) are subject to 15 CFR Part 26, Nationwide Permits Mr. Tim Zimmerman or Mr. Sam Subpart F, ‘‘Government-wide Collinson, Regulatory Branch, (Office of AGENCY: Requirements for Drug-Free Workplace U.S. Army Corps of Engineers, DoD. the Chief of Engineers) at (202) 761– (Grants)’’ and the related section of the 0199. ACTION: Notice of time extension for certification form prescribed above SUPPLEMENTARY INFORMATION: receipt of comments. The applies. regional hearings will be held at the Anti-Lobbying—Persons (as defined at SUMMARY: On Monday, June 17, 1996, following locations during the times and 15 CFR Part 28, Section 28.105) are the Corps of Engineers published a dates specified below: subject to the lobbying provisions of 31 proposal to reissue the existing U.S.C. 1352, ‘‘Limitation on use of Atlanta, GA nationwide permits (NWPs) and appropriated funds to influence certain conditions, with some modifications, Thurs. Aug. 29, 1996; 10:00 a.m. Federal contracting and financial issue four new NWPs, and proposed transactions,’’ and the lobbying section Strom Auditorium, Richard B. Russell options for the threshold limits for NWP of the certification form prescribed Federal Building, 75 Spring Street, 26 (61 FR 30780). The public is invited above applies to applications/bids for SW to provide comments on these grants, cooperative agreements, and POC: Pat Bevel (404) 331–6744 proposals. contracts for more than $100,000, and Chicago, IL loans and loan guarantees for more than DATES: The closing date for receipt of $150,000 or the single family maximum comments regarding this proposed rule Tues. Aug. 27, 1996; 10 a.m.–12 p.m., 1 mortgage limit for affected programs, is hereby being extended from August p.m.–4 p.m. whichever is greater. 16, 1996, as originally published, to Lobby Conference Center, River Center Anti-Lobbying Disclosures—Any September 3, 1996. Building, 111 North Canal Street applicant that has paid or will pay for ADDRESSES: Comments should be POC: Mitch Isoe (312) 353–6428 submitted in writing to : HQUSACE, lobbying using any funds must submit Dallas-Fort Worth, TX an SF–LLL, ‘‘Disclosure of Lobbying ATTN: CECW–OR, 20 Massachusetts Activities,’’ as required under 15 CFR Avenue, N.W., Washington, D.C. 20314– Wed. Aug. 21, 1996; 1:30 p.m.–4 p.m. Part 28, Appendix B. 1000. Comments will be available for Hyatt Regency Hotel, West Tower, Lower Tier Certifications—Recipients examination at the HQUSACE, Room Dallas-Fort Worth International shall require applications/bidders for 6225, Pulaski Building, 20 Airport subgrants, contracts, subcontracts, or Massachusetts Avenue, N.W., POC: Vicki Dixon (214) 767–2436 other lower tier covered transactions at Washington, D.C. 20314–1000 after the any tier under the award to submit, if close of the comment period. New York City, NY applicable, a completed Form CD–512, FOR FURTHER INFORMATION CONTACT: Wed. Aug. 28, 1996; 10 a.m.–12 p.m., 1 ‘‘Certifications Regarding Debarment, Mr. Tim Zimmerman or Mr. Sam p.m.–5 p.m. Suspension, Ineligibility and Voluntary Collinson, Regulatory Branch, Office of U.S. Customs House Bankruptcy Court, Exclusion-Lower Tier Covered the Chief of Engineers at (202) 761– 1 Bowling Green, Basement Transactions and Lobbying’’ and 0199. Auditorium, Broadway, Lower disclosure form, SF–LLL, ‘‘Disclosure of Dated: August 8, 1996. Manhattan Lobbying Activities.’’ Form CD–512 is Approved: POC: Mark Roth (212) 264–0184 intended for the use of recipients and Robert W. Burkhardt, Col, should not be transmitted to DOC. SF– San Francisco, CA LLL submitted by any tier recipient or Asst Chief, Operations, Construction and Readiness Division, Directorate of Civil Thur. Sept. 5, 1996; 3 p.m.–9 p.m. subrecipient should be submitted to Works. DOC in accordance with the Holiday Inn, Financial District, 750 [FR Doc. 96–20748 Filed 8–13–96; 8:45 am] instructions contained in the award Kearny Street document. BILLING CODE 3710±92±M POC: Calvin Fong (415) 977–8460 Buy American-made Equipment or Seattle, WA Products—Applicants are hereby Proposal to Issue, Reissue, and Modify Wed. Aug. 21, 1996; 1:30 p.m.–4:30 p.m. notified that they are encouraged, to the Nationwide Permits extent feasible, to purchase American- Joint Use Auditorium North, South made equipment and products with AGENCY: U.S. Army Corps of Engineers, Federal Center, 4735 East Marginal funding provided under this program. DoD. Way South Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices 42235

POC: Bob Martin (206) 764–34 or reinstatement; (2) Title; (3) Summary 10(a)(2) of the Federal Advisory Dated: August 8, 1996. of the collection; (4) Description of the Committee Act. Approved: need for, and proposed use of, the DATES: 1. Wednesday, September 4, information; (5) Respondents and Robert W. Burkhardt, Col, 1996, 2:00 p.m. (est) to 5:00 p.m. (est); frequency of collection; and (6) 2. Thursday, September 5, 1996, 9:00 Asst Chief, Operations, Construction and Reporting and/or Recordkeeping Readiness Division, Directorate of Civil a.m. (est) to 5:00 p.m. (est). Works. burden. OMB invites public comment at ADDRESSES: Call Vanessa Rini at (202) the address specified above. Copies of [FR Doc. 96–20747 Filed 8–13–96; 8:45 am] 401–2147. the requests are available from Patrick J. BILLING CODE 3710±92±M FOR FURTHER INFORMATION CONTACT: Sherrill at the address specified above. Vanessa Rini, Special Assistant, White The Department of Education is House Initiative on Educational especially interested in public comment DEPARTMENT OF EDUCATION Excellence for Hispanic Americans. Her addressing the following issues: (1) is mailing address is U.S. Department of Notice of Proposed Information this collection necessary to the proper Education, 600 Independence Ave SW, Collection Requests functions of the Department, (2) will RM 2115, Washington, DC 20202–3601 this information be processed and used and her e-mail address is AGENCY: Department of Education. in a timely manner, (3) is the estimate [email protected]. ACTION: Proposed collection; comment of burden accurate, (4) how might the SUPPLEMENTARY INFORMATION: The request. Department enhance the quality, utility, President’s Advisory Commission on and clarity of the information to be SUMMARY: The Director, Information Educational Excellence for Hispanic collected, and (5) how might the Americans was established under Resources Group, invites comments on Department minimize the burden of this the proposed information collection Executive Order 12900, which was collection on the respondents, including effective on February 22, 1994. The requests as required by the Paperwork through the use of information Reduction Act of 1995. Commission was established to provide technology. the President and the Secretary of DATES: Interested persons are invited to Dated: August 8, 1996. Education with advice on (a) the submit comments on or before October progress of Hispanic Americans toward 15, 1996. Gloria Parker, Director, Information Resources Group. achievement of the National Goals and ADDRESSES: Written comments and other standards of educational requests for copies of the proposed Office of Postsecondary Education accomplishment; (b) the development, information collection requests should Type of Review: EXTENSION. monitoring, and education for Hispanic be addressed to Patrick J. Sherrill, Title: The State Student Incentive Americans; (c) ways to increase State, Department of Education, 600 Grant Program. private sector, and community Independence Avenue, S.W., Room Frequency: Annually. involvement in improving education; 5624, Regional Office Building 3, Affected Public: State, local or Tribal and (d) ways to expand and Washington, DC 20202–4651. Government, SEAs or LEAs. complement Federal education FOR FURTHER INFORMATION CONTACT: Annual Reporting and Recordkeeping initiatives. Patrick J. Sherrill (202) 708–8196. Hour Burden: This meeting is open to the public. Individuals who use a Responses: 57. The Commission will be formulating a telecommunications device for the deaf Burden Hours: 570. plan to ensure the recommendations in (TDD) may call the Federal Information Abstract: The SSIG Program uses its annual report to the President are Relay Service (FIRS) at 1–800–877–8339 matching Federal and State funds to carried out and planning its course of between 8 a.m. and 8 p.m., Eastern time, provide a nationwide system of grants to action for the upcoming year. Monday through Friday. assist postsecondary education students Records are kept of all Council SUPPLEMENTARY INFORMATION: Section with substantial financial need. State proceedings, and are available for public 3506 of the Paperwork Reduction Act of agencies use this performance report to inspection at the office of the White 1995 (44 U. S. C. Chapter 35) requires account for yearly program House Initiative on Educational that the Office of Management and performance. The Department uses the Excellence for Hispanic Americans from Budget (OMB) provide interested information collected to assess the the hours of 9 a.m. to 5 p.m. (est). Federal agencies and the public an early accomplishment of the program goals G. Mario Moreno, opportunity to comment on information and objectives and to aid in program Assistant Secretary. collection requests. OMB may amend or management and compliance assurance. [FR Doc. 96–20734 Filed 8–13–96; 8:45 am] waive the requirement for public [FR Doc. 96–20648 Filed 8–13–96; 8:45 am] BILLING CODE 4000±01±M consultation to the extent that public participation in the approval process BILLING CODE 4000±01±P would defeat the purpose of the DEPARTMENT OF ENERGY information collection, violate State or President's Advisory Commission on Federal law, or substantially interfere Educational Excellence for Hispanic Federal Energy Regulatory with any agency’s ability to perform its Americans; Notice of Meeting Commission statutory obligations. The Director of the [Docket No. TM96±14±23±000] Information Resources Group publishes SUMMARY: This notice sets forth the this notice containing proposed schedule and proposed agenda of a Eastern Shore Natural Gas Company; information collection requests prior to forthcoming meeting of the President’s Notice of Proposed Changes in FERC submission of these requests to OMB. Advisory Commission on Educational Gas Tariff Each proposed information collection, Excellence for Hispanic Americans. grouped by office, contains the This notice also describes the functions August 8, 1996. following: (1) Type of review requested, of the Commission. Notice of this Take notice that on August 5, 1996, e.g., new, revision, extension, existing meeting is required under Section Eastern Shore Natural Gas Company 42236 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices

(ESNG) tendered for filing as part of its 497 et seq.1 and Order No. 566–A,2 and [Docket No. GT96±94±000] FERC Gas Tariff, First Revised Volume a report in response to the No. 1, with proposed effective dates of Commission’s July 2, 1996 order.3 K N Interstate Gas Transmission April 1, 1996 and August 1, 1996, Company; Notice of Refund Report Granite State states that copies of this Filing respectively. filing have been mailed to all parties on ESNG states that the purpose of the the official service list compiled by the August 8, 1996. instant filing is to track rate changes Secretary in this proceeding. Take notice that on August 6, 1996, K attributable to storage service purchased Any person desiring to be heard or to N Interstate Gas Transmission Co. (KNI) from Transcontinental Gas Pipe Line protest said filing should file a motion filed a refund report pursuant to the Corporation (Transco) under Transco’s to intervene or protest with the Federal Commission’s October 13, 1995 order Rate Schedule LSS the costs of which Energy Regulatory Commission, 888 issued in Docket No. RP96–271–000. are included in the rates and charges First Street, N.E., Washington, D.C. payable under ESNG’s Rate Schedule KNI states that the refund report 20426, in accordance with Rules 211 or shows the refund received by KNI from LSS effective April 1, 1996 and August 214 of the Commission’s Rules of 1, 1996, respectively. This tracking Gas Research Institute over-collections Practice and Procedure (18 CFR 385.211 in the amount of $206,062 and the pro filing is being filed pursuant to Section or 385.214). All such motions to 24 of the General Terms and Conditions rata allocation of that refund amount to intervene or protest should be filed on KNI’s eligible firm customers. of ESNG’s FERC Gas Tariff to reflect or before August 23, 1996. Protests will changes in ESNG’s jurisdictional rates. be considered by the Commission in KNI states that copies of the filing ESNG states that copies of the filing determining the appropriate action to be were served upon all affected firm have been served upon its jurisdictional taken but will not serve to make customers of KNI and applicable state customers and interested State protestants parties to the proceeding. agencies. Commissions. Any person wishing to become a party Any person desiring to be heard or to Any person desiring to be heard or to must file a motion to intervene. Copies protest said filing should file a motion protest said filing should file a motion of this filing are on file with the to intervene or protest with the Federal to intervene or protest with the Federal Commission and are available for public Energy Regulatory Commission, 888 Energy Regulatory Commission, 888 inspection. First Street NE., Washington, DC 20426, First Street, NE., Washington, DC 20426, Lois D. Cashell, in accordance with Section 385.211 and in accordance with Rule 211 and Rule Secretary. 385.214 of the Commission’s Rules and 214 of the Commission’s Rules of [FR Doc. 96–20650 Filed 8–13–96; 8:45 am] Regulations. All such motions or protests should be filed on or before Practice and Procedure (18 CFR Section BILLING CODE 6717±01±M 385.211 and Section 385.214). All such August 15, 1996. Protests will be considered by the Commission in motions or protests must be filed as 1 Order No. 497, 53 FR 22139 (June 14, 1988), determining the appropriate action to be provided in Section 154.210 of the FERC Stats. & Regs. ¶ 30,820 (1988) (Regulations Commission’s Regulations. Protests will Preambles 1986–1990); Order No. 497–A order on taken, but will not serve to make any be considered by the Commission in rehearing, 54 FR 52781 (December 22, 1989), FERC protestants parties to the proceeding. determining the appropriate action to be Stats. & Regs. 30,868 (1989) (Regulations Preambles Copies of this filing are on file with the taken, but will not serve to make 1986–1990); Order No. 497–B, order extending Commission and are available for public sunset date, 55 FR 53291 (December 28, 1990), inspection in the Public Reference protestants parties to the proceeding. FERC Stats. & Regs. ¶ 30,908 (1990) (Regulations Any person wishing to become a party Preambles 1986–1990); Order No. 497–C, order Room. must file a motion to intervene. Copies extending sunset date, 57 FR 9 (January 2, 1992), Lois D. Cashell, of this filing are on file with the III FERC Stats. & Regs. ¶ 30,934 (1991), rehearing Secretary. denied, 57 FR 5815 (February 18, 1992), 58 FERC Commission and are available for public [FR Doc. 96–20649 Filed 8–13–96; 8:45 am] ¶ 61,139 (1992); Tenneco Gas v. FERC (affirmed in inspection. part and remanded in part), 969 F.2d 1187 (D.C. Cir. BILLING CODE 6717±01±M Lois D. Cashell, 1992); Order No. 497–D, order on remand and Secretary. extending sunset date, III FERC Stats. & Regs. ¶ 30,958 (December 4, 1992), 57 FR 58978 (December [Docket No. MG96±12±001] [FR Doc. 96–20654 Filed 8–13–96; 8:45 am] 14, 1992); Order No. 497–E, order on rehearing and BILLING CODE 6717±01±M extending sunset date, 59 FR 243 (January 4, 1994), 65 FERC ¶ 61,381 (December 23, 1993); Order No. Texas Eastern Transmission 497–F, order denying rehearing and granting Corporation; Notice of Filing clarification, 59 FR 15336 (April 1, 1994), 66 FERC [Docket No. MG96±11±001] ¶ 61,347 (March 24, 1994); and Order No. 497–G, August 8, 1996. order extending sunset date, 59 FR 32884 (June 27, Take notice that on July 25, 1996, Granite State Gas Transmission; 1994), III FERC Stats. & Regs. ¶ 30,996 (June 17, Notice of Filing 1994). Texas Eastern Transmission Corporation 2 Standards of Conduct and Reporting (Texas Eastern) submitted revised August 8, 1996. Requirements for Transportation and Affiliate standards of conduct under Order Nos. Take notice that on August 1, 1996, Transactions, Order No. 566, 59 FR 32885 (June 27, Granite State Gas Transmission, Inc. 1994), III FERC Stats. & Regs. ¶ 30,997 (June 17, 1994); Order No. 566–A, order on rehearing, 59 FR (Granite State) submitted revised 52896 (October 20, 1994), 69 FERC ¶ 61,044 standards of conduct under Order Nos. (October 14, 1994); Order No. 566–B, order on rehearing, 59 FR 65707 (December 21, 1994); 69 FERC ¶ 61,334 (December 14, 1994); appeal docketed, Conoco, Inc. v. FERC, D.C. Cir. Docket No. 94–1745 (December 14, 1994). 3 76 FERC ¶ 61,014 (1996). Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices 42237

497 et seq.1 and Order No. 566–A.2 [Docket No. TM96±6±18±000] [Docket No. RP96±305±001] Texas Eastern states that it is revising its standards of conduct to reflect that it Texas Gas Transmission Corporation; Williston Basin Interstate Pipeline has three marketing affiliates, Altra Notice of Proposed Changes in FERC Company; Notice of Compliance Filing Gas Tariff Streamline L.L.C., PanEnergy Gas August 8, 1996. Services, Inc. and Energy Plus August 5, 1996. Marketing Company. Texas Eastern Take notice that on August 6, 1996, states that it does not share any office Take notice that on July 31, 1996, Williston Basin Interstate Pipeline space with its marketing affiliates. Texas Gas Transmission Corporation Company (Williston Basin), tendered for Texas Eastern states that copies of this (Texas Gas) tendered for filing, as part filing as part of its FERC Gas Tariff the filing have been mailed to all parties on of its FERC Gas Tariff, First Revised following revised tariff sheets: the official service list compiled by the Volume No. 1 and Original Volume No. Second Revised Volume No. 1 Secretary in this proceeding. 2, the revised tariff sheets contained in Second Revised Sheet No. 120 Any person desiring to be heard or to Appendix A to the filing. Third Revised Sheet No. 122 protest said filing should file a motion Texas Gas states that the proposed Williston Basin states that it is to intervene or protest with the Federal tariff sheets reflect changes to its Base resubmitting the above tariff sheets Energy Regulatory Commission, 888 Tariff Rates pursuant to the because they were inadvertently omitted First Street, N.E., Washington, D.C., Transportation Cost Adjustment from the list of approved tariff sheets in 20426, in accordance with Rules 211 provisions included as a part of the the August 1, 1996, Order in Docket No. and 214 of the Commission’s Rules of RP96–305–000. Williston Basin requests Practice and Procedure (18 CFR 385.211 Stipulation and Agreement in Docket No. RP94–423, and contained in Section that the Commission grant waiver of the or 385.214). All such motions to 30-day notice requirement of Section intervene or protest should be filed on 39 of the General Terms and Conditions of its FERC Gas Tariff, First Revised 154.207 so as to allow the above tariff or before August 23, 1996. Protests will sheets to become effective on August 2, be considered by the Commission in Volume No. 1, as filed on February 23, 1996. The net rate change proposed by 1996, the effective date of the other determining the appropriate action to be approved tariff sheets. taken but will not serve to make this filing is a reduction of $(0.0147) in protestants parties to the proceeding. the FT and NNS daily demand rates, Williston Basin states that the tariff Any person wishing to become a party $(0.0029) in the FT and NNS sheets are revised to delete subsections must file a motion to intervene. Copies commodity rates, $(0.0323) in the SGT which pertain to Rate Schedule S–3 as of this filing are on file with the rates for Zones 1–4, and $(0.0255) for the Commission accepted Williston Commission and are available for public SGT–SL. Interruptible transportation Basin’s filing to terminate the last Rate inspection. and overrun rates are also generally Schedule S–3 Service Agreement on July 21, 1995, in Docket No. CP83–1– Lois D. Cashell, reduced by $(0.0176). 113. Secretary. Texas Gas respectfully requests that Any person desiring to protest said [FR Doc. 96–20651 Filed 8–13–96; 8:45 am] the revised tariff sheets reflecting a net filing should file a protest with the BILLING CODE 6717±01±M reduction in its rates become effective Federal Energy Regulatory Commission, September 1, 1996. 888 First Street N.E., Washington, D.C. 1 Order No. 497, 53 FR 22139 (June 14, 1988), FERC Stats. & Regs. ¶ 30,820 (1988) (Regulations Texas Gas states that copies of the 20246, in accordance with Rule 211 of Preambles 1986–1990); Order No. 497–A, order on filing have been served upon Texas the Commission’s Rules of Practice and rehearing, 54 FR 52781 (December 22, 1989), FERC Gas’s jurisdictional customers and Procedure (18 CFR 385.211). All such Stats. & Regs. 30, 868 (1989) (Regulations Preambles interested state commissions. protests must be filed as provided in 1986–1990); Order No. 497–B, order extending sunset date, 55 FR 53291 (December 28, 1990), Any person desiring to be heard or to Section 154.210 of the Commission’s FERC Stats. & Regs. ¶ 30,908 (1990) (Regulations protest said filing should file a motion Regulations. Protests will be considered Preambles 1986–1990); Order No. 497–C, order to intervene or protest with the Federal by the Commission in determining the extending sunset date, 57 FR 9 (January 2, 1992), appropriate action to be taken, but will III FERC Stats. & Regs. ¶ 30,934 (1991), rehearing Energy Regulatory Commission, 888 denied, 57 FR 5815 (February 18, 1992), 58 FERC First Street, NE., Washington, DC 20426, not serve to make the protestants parties to the proceeding. Copies of the filing ¶ 61,139 (1992); Tenneco Gas v. FERC (affirmed in in accordance with Sections 385.211 part and remanded in part), 969 F.2d 1187 (D.C. Cir. are on file with the Commission and are and 385.214 of the Commission’s Rules 1992); Order No. 497–D, order on remand and available for public inspection. extending sunset date, III FERC Stats. & Regs. and Regulations. All such motions or ¶ 30,958 (December 4, 1992), 57 FR 58978 protests must be filed as provided in Lois D. Cashell, (December 14, 1992); Order No. 497–E, order on Section 154.210 of the Commission’s Secretary. rehearing and extending sunset date, 59 FR 243 [FR Doc. 96–20652 Filed 8–13–96; 8:45 am] (January 4, 1994), 65 FERC ¶ 61,381 (December 23, Regulations. Protests will be considered 1993); Order No. 497–F, order denying rehearing by the Commission in determining the BILLING CODE 6717±01±M and granting clarification, 59 FR 15336 (April 1, appropriate action to be taken, but will 1994), 66 FERC ¶ 61,347 (March 24, 1994); and Order No. 497–G, order extending sunset date, 59 not serve to make protestants parties to FR 32884 (June 27, 1994), III FERC Stats. & Regs. the proceeding. Any person wishing to [Docket No. RP96±332±000] ¶ 30,996 (June 17, 1994). become a party to the proceeding must 2 Standards of Conduct and Reporting file a motion to intervene. Copies of this Williston Basin Interstate Pipeline Requirements for Transportation and Affiliate Company; Notice of Compliance Filing Transactions, Order No. 566, 59 FR 32885 (June 27, filing are on file with the Commission 1994), III FERC Stats. & Regs. ¶ 30,997 (June 17, and are available for public inspection August 8, 1996. 1994); Order No. 566–A, order on rehearing, 59 FR in the Public Reference Room. 52896 (October 20, 1994), 69 FERC ¶ 61,044 Take notice that on August 6, 1996, (October 14, 1994); Order No. 566–B, order on Lois D. Cashell, Williston Basin Interstate Pipeline rehearing, 59 FR 65707 (December 21, 1994); 69 Secretary. FERC ¶ 61,334 (December 14, 1994); appeal Company (Williston Basin), tendered for docketed, Conoco, Inc. v. FERC, D.C. Cir. Docket [FR Doc. 96–20306 Filed 8–13–96; 8:45 am] filing as part of its FERC Gas Tariff the No. 94–1745 (December 14, 1994). BILLING CODE 6717±01±M following revised tariff sheets: 42238 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices

Second Revised Volume No. 1 Regulations. Protests will be considered On July 31, 1996, Tenneco Energy Title Page by the Commission in determining the Marketing, Inc. filed certain information Second Revised Sheet No. 2 appropriate action to be taken, but will as required by the Commission’s March Third Revised Sheet No. 252 not serve to make the protestants parties 30, 1995, order in Docket No. ER95– Second Revised Sheet No. 263 to the proceeding. Any person wishing 428–000. Second Revised Sheet No. 286 to become a party to the proceeding On July 19, 1996, J Anthony & First Revised Sheet No. 288A must file a motion to intervene. Copies Associates Ltd. filed certain information Fourth Revised Sheet No. 300 of the filing are on file with the as required by the Commission’s May Second Revised Sheet No. 301 Commission and are available for public 31, 1995, order in Docket No. ER95– Second Revised Sheet No. 304 784–000. Second Revised Sheet No. 306 inspection. Lois D. Cashell, On July 31, 1996, Citizens Lehman Second Revised Sheet No. 307 Power Sales filed certain information as Second Revised Sheet No. 310 Secretary. required by the Commission’s June 8, Second Revised Sheet No. 312 [FR Doc. 96–20653 Filed 8–13–96; 8:45 am] Second Revised Sheet No. 313 1995, order in Docket No. ER95–892– BILLING CODE 6717±01±M Second Revised Sheet No. 315 000. Second Revised Sheet No. 318 On July 31, 1996, Federal Energy Second Revised Sheet No. 319 [Docket No. ER95±1295±000, et al.] Sales, Inc. filed certain information as Second Revised Sheet No. 332 required by the Commission’s March 1, Second Revised Sheet No. 336 Market Responsive Energy, Inc., et al.; 1996, order in Docket No. ER96–918– Second Revised Sheet No. 340 Electric Rate and Corporate Regulation 000. Second Revised Sheet No. 343 Filings Fourth Revised Sheet No. 344 3. Howell Power Systems, Inc., Texican Second Revised Sheet No. 345A August 7, 1996. Energy Ventures, Inc., Koch Power Sixth Revised Sheet No. 350 Services, Inc., Southern Energy Sixth Revised Sheet No. 351 Take notice that the following filings have been made with the Commission: Marketing, Inc., IGI Resources, Inc., Fifth Revised Sheet No. 351A Hinson Power Company, ANP Energy Second Revised Sheet No. 353 1. Market Responsive Energy, Inc. Second Revised Sheet No. 355 Direct Company Second Revised Sheet No. 362 [Docket No. ER95–1295–000] [Docket No. ER94–178–010, Docket No. Second Revised Sheet No. 368 Take notice that on July 29, 1996, ER94–1362–005, Docket No. ER95–218–006, Second Revised Sheet No. 369 Market Responsive Energy, Inc. Docket No. ER95–976–005, Docket No. ER95– Second Revised Sheet No. 370 tendered for filing an amendment in the 1034–004, Docket No. ER95–1314–005, Williston Basin states that it is Docket No. ER96–1195–001 (not above-referenced docket. consolidated)] submitting the following revisions to Comment date: August 20, 1996, in Take notice that the following comply with Commission Order Nos. accordance with Standard Paragraph E informational filings have been made 582 and 582–A in Docket Nos. RM95– at the end of this notice. 3–000 and RM95–3–001, respectively. with the Commission and are on file The revisions reflect a title page to 2. Heartland Energy Services, Inc., and available for public inspection and include a telephone and fax number in Valero Power Srvices Company, copying in the Commission’s Public compliance with Section 154.102 of the Illinova Power Marketing, Inc., Reference Room: On July 3, 1996, Howell Power Commission’s Regulations; numerous Tenneco Energy Marketing, Inc., J Systems, Inc. filed certain information tariff sheets to reflect the correct Anthony & Associates Ltd., Citizens as required by the Commission’s carrying charge reference to Section Lehman Power Sales, Federal Energy January 14, 1994, order in Docket No. 154.501 of the Commission’s Sales, Inc. ER94–178–000. Regulations; and Sheet No. 362 to reflect [Docket No. ER94–108–009, Docket No. On July 30, 1996, Texican Energy the correct Annual Charge Adjustment ER94–1394–008, Docket No. ER94–1475–005, Ventures, Inc. filed certain information Docket No. ER95–428–006, Docket No. ER95– reference to Section 154.402 of the as required by the Commission’s July Commission’s Regulations. 784–004, Docket No. ER95–892–005, Docket No. ER96–918–002 (not consolidated)] 25, 1994, order in Docket No. ER94– Williston Basin states that in addition 1362–000. to the above revisions, it has added Take notice that the following On July 30, 1996, Koch Power language to its FERC Gas Tariff in informational filings have been made Services, Inc. filed certain information compliance with Section 154.109 (b) with the Commission and are on file as required by the Commission’s and (c) of the Commission’s and available for public inspection and January 4, 1995, order in Docket No. Regulations, specify the order in which copying in the Commission’s Public ER95–218–000. each component of Williston Basin’s Reference Room: On July 30, 1996, Southern Energy rates will be discounted and stating On July 30, 1996, Heartland Energy Marketing Inc. filed certain information Williston Basin’s policy with respect to Services, Inc. filed certain information as required by the Commission’s June the financing and construction of as required by the Commission’s August 27, 1995, order in Docket No. ER95– laterals. 9, 1994, order in Docket No. ER94–108– 976–000. Any person desiring to be heard or to 000. On July 30, 1996, IGI Resources, Inc. protest said filing should file a motion On July 30, 1996, Valero Power filed certain information as required by to intervene or protest with the Federal Services Company filed certain the Commission’s July 11, 1995, order in Energy Regulatory Commission, 888 information as required by the Docket No. ER95–1034–000. First Street N.E., Washington, D.C. Commission’s August 24, 1994, order in On July 29, 1996, Hinson Power 20246, in accordance with Rules 211 Docket No. ER94–1394–000. Company filed certain information as and 214 of the Commission’s Rules of On July 31, 1996, Illinova Power required by the Commission’s August Practice and Procedure (18 CFR 385.211 Marketing, Inc. filed certain information 29, 1995, order in Docket No. ER95– and 385.214). All such motions or as required by the Commission’s May 1314–000. protests must be filed as provided in 18, 1995, order in Docket No. ER94– On July 29, 1996, ANP Energy Direct Section 154.210 of the Commission’s 1475–000. Company filed certain information as Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices 42239 required by the Commission’s May 3, 8. Tampa Electric Company (‘‘Commission’’) Regulations, 18 CFR 1996, order in Docket No. ER96–1195– [Docket No. ER96–2227–000] 35.13, and in compliance with the 000. Commission’s Final Rule In Docket Nos. Take notice that on July 30, 1996, RM95–8–000 and RM94–7–001, 4. Northeast Utilities Service Company Tampa Electric Company (Tampa ‘‘Promoting Wholesale Competition [Docket No. ER96–858–000] Electric) amended its filing in this Through Open Access Non- docket, which concerns amendment of a discriminatory Transmission Services Take notice that on July 29, 1996, Letter of Commitment between Tampa Northeast Utilities Service Company by Public Utilities; Recovery of Electric and the Utilities Commission, Stranded Costs by Public Utilities and (NUSCO) on behalf of Western City of New Smyrna Beach, Florida Massachusetts Electric Company Transmitting Utilities,’’ II FERC Stats. & (New Smyrna Beach) under interchange Regs. ¶ 31,036 (Order No. 888), Revised (WMECO) tendered for filing an Service Schedule D. amendment to the Third Amendment to Sheet Nos. 34 through 36 of its Open Copies of the amendatory filing have Access Transmission Tariff (Tariff) Distribution and Transformation Service been served on New Smyrna Beach and Agreement originally filed by NUSCO which TEP filed on July 9, 1996. the Florida Public Service Commission. TEP has requested waiver of the on January 10, 1996, for service to New Comment date: August 20, 1996, in England Power Company (NEP). The Commission’s notice requirements of accordance with Standard Paragraph E Section 35.7 of the Commission’s amendment revises certain appendices at the end of this notice. and tables in response to concerns Regulations, to the extent necessary to raised by FERC staff on the initial filing. 9. Central Vermont Public Service allow the Revised Sheet Nos. 34, 35, and 36 filed in this docket to go into effect NUSCO requests the Third Corporation on July 10, 1996, for good cause shown. Amendment be permitted to become [Docket No. ER96–2256–000] TEP served copies of the filing upon effective on February 1, 1996 or, the day Take notice that on July 29, 1996, the persons listed on a service list following the date of receipt of this Central Vermont Public Service submitted with its filing, including each amendment by the Commission. Corporation (Central Vermont) tendered of its existing wholesale customers and Comment date: August 20, 1996, in for filing additional information in the the state regulatory authority for each accordance with Standard Paragraph E above-mentioned docket. state in which its existing wholesale at the end of this notice. Central Vermont requests the customers are served. Commission to waiver its filing 5. New England Power Company Comment date: August 21, 1996, in requirements to permit the amendment accordance with Standard Paragraph E [Docket No. ER96–1585–000] to become effective according to its at the end of this notice. terms. Take notice that on July 29, 1996, 13. Maine Electric Power Company New England Power Company tendered Comment date: August 20, 1996, in for filing an amendment in the above- accordance with Standard Paragraph E [Docket No. ER96–2379–000] referenced docket. at the end of this notice. Take notice that on July 9, 1996, Comment date: August 21, 1996, in 10. EMC Gas Transmission Company Maine Electric Power Company accordance with Standard Paragraph E (MEPCO) tendered for filing Service at the end of this notice. [Docket No. ER96–2320–000] Agreements for Non-Firm Point-to-Point Take notice that on July 26, 1996, Transmission Service, the form of which 6. Growth Unlimited Investments, Inc. EMC Gas Transmission Company is contained as Attachment B of [Docket No. ER96–1774–000] tendered for filing an amendment in the MEPCO’s pro forma tariff for open above-referenced docket. Take notice that on July 17, 1996, access transmission service. Comment date: August 21, 1996, in Comment date: August 20, 1996, in Growth Unlimited Investments, Inc. accordance with Standard Paragraph E accordance with Standard Paragraph E tendered for filing an amendment in the at the end of this notice. at the end of this notice. above-referenced docket. Comment date: August 21, 1996, in 11. Washington Water Power Company 14. Montaup Electric Company accordance with Standard Paragraph E [Docket No. ER96–2351–000] [Docket No. ER96–2380–000] at the end of this notice. Take notice that on July 29, 1996, Take notice that on July 9, 1996, 7. Wisconsin Electric Power Company Washington Water Power Company Montaup Electric Company (Montaup) (WWP) tendered for filing a request to tendered for filing unexecuted service [Docket No. ER96–2106–000] withdraw its earlier filing (FERC Docket agreements for non-firm transmission Take notice that Wisconsin Electric No. ER96–2351–000) of Amendment No. service under the open access Power Company on July 30, 1996, 1 to Agreement for purchase and sale of transmission tariff filed the same day. tendered for filing an amendment to its summer capacity and energy and the Montaup requests that these service June 10, 1996, filing of revisions to its seasonal exchange of capacity and agreements be allowed to become FERC Electric Tariff, Volume 1, Service energy between WWP and Pacificorp. effective July 9, 1996. Montaup will Agreement No. 27. The submittal Comment date: August 20, 1996, in substitute executed service agreements provides further information responsive accordance with Standard Paragraph E once signatures are obtained. to questions from FERC staff. at the end of this notice. Comment date: August 20, 1996, in Wisconsin Electric again requests accordance with Standard Paragraph E 12. Tucson Electric Power Company waiver of the notice requirements and at the end of this notice. an effective date of May 15, 1996, in [Docket No. ER96–2362–000] 15. Minnesota Power & Light Company order to implement the Agreement’s Take notice that on July 10, 1996, modifications, which do not result in Tucson Electric Power Company (TEP) [Docket No. ER96–2382–000] revenue increases. tendered for filing pursuant to Section Take notice that on July 11, 1996, Comment date: August 20, 1996, in 206 of the Federal Power Act (FPA), Minnesota Power & Light Company accordance with Standard Paragraph E Section 35.13 of the Federal Energy tendered for filing signed Service at the end of this notice. Regulatory Commission’s Agreements with the following: 42240 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices

Commonwealth Edison Company to New York State Electric & Gas Comment date: August 21, 1996, in Cinergy Services, Inc. (as Agent for and on Corporation and Niagara Mohawk accordance with Standard Paragraph E behalf of The Cincinnati Gas & Electric Power Corporation. RG&E is filing the at the end of this notice. Company and PSI Energy, Inc.) information pursuant to § 35.13 of the The Empire District Electric Co. Commission’s Rules of Practice and 23. West Texas Utilities Company JPower Inc. NORAM Energy Services, Inc. Procedure, 18 CFR 35.13. RG&E is [Docket No. ER96–2597–000] requesting an effective date of July 1, Pan Energy Power Services Take notice that on August 1, 1996, WPS Energy Services, Inc. 1996, for the rate changes. Accordingly, RG&E has requested waiver of the West Texas Utilities Company (WTU) under its Wholesale Coordination Sales Commission’s notice requirements for submitted a service agreement, dated Tariff to satisfy its filing requirements good cause shown. July 9, 1996, establishing NorAm Energy under this tariff. Copies of the filing have been served Services, Inc. (NorAm) as a customer Comment date: August 21, 1996, in on New York State Electric & Gas under the terms of WTU’s umbrella accordance with Standard Paragraph E Corporation, Niagara Mohawk Power at the end of this notice. Coordination Sales Tariff CST–1 (CST– Corporation and the Public Service 1 Tariff). 16. Maine Public Service Company Commission of the State of New York. Comment date: August 21, 1996, in WTU requests an effective date of July [Docket No. ER96–2410–000] accordance with Standard Paragraph E 9, 1996 and accordingly, seeks waiver of Take notice that on July 9, 1996, at the end of this notice. the Commission’s notice requirements. Maine Public Service Company (MPS) Copies of this filing were served upon tendered for filing pursuant to Order 20. Niagara Mohawk Power NorAm and the Public Utility No. 888, Section 205 of the Federal Corporation Commission of Texas. Power Act, 16 U.S.C. § 824d, and [Docket No. ER96–2585–000] Comment date: August 21, 1996, in Section 35.13 of the Regulations of the Take notice that on July 31, 1996, accordance with Standard Paragraph E Federal Energy Regulatory Commission, Niagara Mohawk Power Corporation at the end of this notice. 18 CFR 35.13, its Open Access Pro (NMPC), tendered for filing with the Forma Transmission Tariff. Federal Energy Regulatory Commission 24. Central Power and Light Company, Comment date: August 20, 1996, in NMPC’s Market-Based Rate Power Sales West Texas Utilities Company accordance with Standard Paragraph E Tariff, which permits NMPC to make [Docket No. ER96–2598–000] at the end of this notice. wholesale power sales at market-based 17. Maine Public Service Company rates. Take notice that on August 1, 1996, Comment date: August 21, 1996, in Central Power and Light Company and [Docket No. ER96–2455–000] accordance with Standard Paragraph E West Texas Utilities Company, (jointly, Take notice that on July 16, 1996, at the end of this notice. the Companies) tendered for filing a Maine Public Service Company service agreement under which they tendered for filing a Quarterly Report of 21. Wisconsin Power and Light Company will provide transmission service to Transactions for the Period April 1 Entergy Services, Inc. (Entergy) under through June 30, 1996. This filing was [Docket No. ER96–2586–000] their point-to-point transmission service made in compliance with Commission Take notice that on July 31, 1996, tariff. orders dated May 31, 1995 (Docket No. Wisconsin Power and Light Company ER95–851) and April 30, 1996 (Docket (WP&L), tendered for filing a signed The Companies state that copies of No. ER96–780). Service Agreement under WP&L’s Bulk the filing have been served on Entergy. Comment date: August 20, 1996, in Power Tariff between itself and VTEC Comment date: August 21, 1996, in accordance with Standard Paragraph E Energy Inc., Delhi Energy Services Inc., accordance with Standard Paragraph E at the end of this notice. Coral Power L.L.C., and Illinova Power at the end of this notice. Marketing Inc. WP&L respectfully 18. Puget Sound Power & Light 25. Commonwealth Edison Company Company requests a waiver of the Commission’s notice requirements, and an effective [Docket No. ER96–2599–000] [Docket No. ER96–2474–000] date of July 1, 1996. Take notice that on July 9, 1996, Puget Comment date: August 21, 1996, in Take notice that on August 1, 1996, Sound Power & Light Company, as accordance with Standard Paragraph E Commonwealth Edison Company Transmission Provider, tendered for at the end of this notice. (ComEd), tendered for filing an filing a Service Agreement for Non-Firm amendment to its contract with the City 22. Central Power and Light Company Point-To-Point Transmission Service of St. Charles, Illinois (St. Charles). The (‘‘Service Agreement) with Puget Sound [Docket No. ER96–2596–000] amendment will permit St. Charles to Power & Light Company, as Take notice that on August 1, 1996, receive curtailable service at selected Transmission Customer (Puget). A copy Central Power and Light Company premises within St. Charles’ service of the filing was served upon Puget. (CPL), submitted a service agreement, territory. Comment date: August 20, 1996, in dated July 9, 1996, establishing NorAm ComEd requests an effective date of accordance with Standard Paragraph E Energy Services, Inc. (NorAm) as a August 2, 1996, and has, therefore, at the end of this notice. customer under the terms of CPL’s requested that the Commission waive 19. Rochester Gas and Electric umbrella Coordination Sales Tariff the Commission’s notice requirement. Corporation CST–1 (CST–1 Tariff). CPL requests an effective date of July Copies of this filing have been served on [Docket No. ER96–2584–000] 9, 1996, and accordingly, seeks waiver St. Charles and the Illinois Commerce Take notice that on July 31, 1996, of the Commission’s notice Commission. Rochester Gas and Electric Corporation requirements. Copies of this filing were Comment date: August 21, 1996, in (RG&E), tendered for filing proposed served upon NorAm and the Public accordance with Standard Paragraph E changes in its rates for borderline sales Utility Commission of Texas. at the end of this notice. Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices 42241

26. Public Service Company of open access tariff and cost information Commission and are available for public Oklahoma, Southwestern Electric to support its ancillary services charges. inspection. Power Company Comment date: August 21, 1996, in Lois D. Cashell, [Docket No. ER96–2600–000] accordance with Standard Paragraph E Secretary. Take notice that on August 1, 1996, at the end of this notice. [FR Doc. 96–20655 Filed 8–13–96; 8:45 am] Public Service Company of Oklahoma 30. Interstate Energy Corporation BILLING CODE 6717±01±P and Southwestern Electric Power [Docket No. OA96–133–000] Company (collectively, the Companies) [Docket No. CP96±667±000, et al.] tendered for filing a service agreement Take notice that on July 29, 1996, under which they will provide pursuant to Section 205 of the Federal Columbia Gas Transmission transmission service to Entergy Power Act and Part 35 of the Corporation, et al.; Natural Gas Services, Inc. (Entergy) under their Commission’s Regulations, IES Utilities Certificate Filings point-to-point transmission service Inc. (IES), Interstate Power Company tariff. (IPC), Wisconsin Power & Light August 8, 1996. The Companies state that a copy of Company (WPL) and South Beloit Take notice that the following filings the filing has been served on Entergy. Water, Gas & Electric Company (South have been made with the Commission: Comment date: August 21, 1996, in Beloit) (collectively, the Applicants) 1. Columbia Gas Transmission accordance with Standard Paragraph E submitted for filing a single Open Corporation at the end of this notice. Access Transmission Tariff based on the [Docket No. CP96–667–000] 27. DPL Energy, Inc. pro forma tariff included by the Commission in Order No. 888. Take notice that on July 25, 1996, [Docket No. ER96–2601–000] The Applicants state that they are Columbia Gas Transmission Corporation Take notice that on August 1, 1996, making this filing in connection with (Columbia), 1700 MacCorkle Avenue, DPL Energy, Inc. (DPL Energy), filed the proposed merger of WPL Holdings, S.E., Charleston, West Virginia 25314, with the Federal Energy Regulatory Inc. (the holding company parent of filed in Docket No. CP96–667–000 an Commission an application seeking WPL and, indirectly, South Beloit), IES application pursuant to Section 7(b) of authorization to engage in power Industries Inc. (the holding company the Natural Gas Act for permission and marketing transactions as an affiliated parent of IES) and IPC. The transmission approval to abandon a transportation power marketer subject to the service will be provided on the service which was authorized in Docket Commission’s established policies and combined transmission systems of the Nos. CP76–492 and CP77–519, all as precedents. Applicants under a single-system rate. more fully set forth in the application DPL Energy requests that it be The Applicants state that they are filing on file with the Commission and open permitted to engage in marketing and this tariff on behalf of the proposed new to public inspection. brokering activities as soon as possible holding company, Interstate Energy It is stated that Columbia proposes to but in no event later than October 1, Corporation. The Applicants request abandon transportation service which 1996. that the Commission waive the 120-day was once required for the transportation Comment date: August 21, 1996, in notice requirement contained in section of gas by Columbia for Orange and accordance with Standard Paragraph E 35.3 of the Commission’s regulations to Rockland Utilities, Inc. (Orange and at the end of this notice. allow the tariff to be accepted for filing Rockland). This service which was performed under Columbia’s Rate 28. Dayton Power & Light Company and put into effect on the date that the merger transactions are consummated. Schedule X–97, was authorized by the [Docket No. ER96–2602–000] Commission’s Opinion and Order Take notice that on August 1, 1996, Comment date: August 28, 1996, in issued June 21, 1979, at 7 FERC 61,278 the Dayton Power and Light Company accordance with Standard Paragraph E (1979) at Docket No. CP76–492, et al., (DP&L), filed with the Federal Energy at the end of this notice. which included, inter alia, Columbia’s Regulatory Commission a market-based The prior notice of filing setting an Docket No. CP77–519. sales tariff. August 8, 1996 comment date in Docket Pursuant to the terms of a DP&L requests that its tariff be No. OA96–133–000 is hereby rescinded. transportation agreement dated April 4, accepted for filing and allowed to Standard Paragraph 1977, Columbia agreed to deliver up to become effective as soon as possible but 1,000,000 Mcf of natural gas annually to in no event later than October 1, 1996. E. Any person desiring to be heard or Tennessee Gas Pipeline Company Comment date: August 21, 1996, in to protest said filing should file a (Tennessee) for the account of Orange accordance with Standard Paragraph E motion to intervene or protest with the and Rockland for storage injection. This at the end of this notice. Federal Energy Regulatory Commission, gas was purchased by Orange and 888 First Street, N.E., Washington, D.C. 29. South Carolina Public Service Rockland from Columbia under its CDS 20426, in accordance with Rules 211 Authority Rate Schedule and was delivered by and 214 of the Commission’s Rules of Columbia to Tennessee during the [Docket No. NJ96–1–000] Practice and Procedure (18 CFR 385.211 summer injection period at Tennessee’s Take notice that on July 9, 1996, the and 18 CFR 385.214). All such motions existing South Ceredo, West Virginia South Carolina Public Service Authority or protests should be filed on or before sales meter station delivery point to (Authority) tendered for filing a the comment date. Protests will be Columbia or at other mutually agreeable compliance filing in the above considered by the Commission in points of interconnection. referenced docket. The Authority determining the appropriate action to be Columbia further agreed to receive requests that the Commission issue an taken, but will not serve to make during the winter withdrawal period up order finding that its open access protestants parties to the proceeding. to 10,000 Mcf of gas per day (up to transmission tariff is an acceptable Any person wishing to become a party 1,000,000 Mcf annually) from Tennessee reciprocity tariff. The Authority must file a motion to intervene. Copies at Tennessee’s existing Milford, submitted with its compliance filing its of this filing are on file with the Pennsylvania sales meter station 42242 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices delivery point to Columbia or at other 3. Texas Eastern Transmission measurement at low volumes. WNG mutually agreeable points of Corporation, CNG Transmission estimates that the cost to replace the interconnection. Columbia transported Corporation Oswego town border setting to be the withdrawal gas on an interruptible [Docket No. CP96–681–000] $50,786 and the sales price of the 4-inch basis and redelivered it to Orange and lateral pipeline to be $10,000. Take notice that on July 30, 1996, Rockland at existing points of delivery Comment date: September 23, 1996, Texas Eastern Transmission Corporation in eastern New York. in accordance with Standard Paragraph (Texas Eastern), P.O. Box 1642, G at the end of this notice. Orange and Rockland agreed to pay Houston, Texas 77251–1642 and CNG Columbia a transportation charge which Transmission Corporation (CNG), 445 5. Colorado Interstate Gas Company reflected Columbia’s average system- West Main Street, Clarksburg, West [Docket No. CP96–689–000] wide unit storage and transmission Virginia 26302–2450, herein referred to costs, exclusive of company-use and as Applicants, filed in Docket No. Take notice that on August 2, 1996, unaccounted for gas, as reflected in rate CP96–681–000, a joint abbreviated Colorado Interstate Gas Company (CIG), filings of Columbia. The charges were application pursuant to Section 7(b) of P.O. Box 1087, Colorado Springs, subject to adjustment as reflected in the Natural Gas Act and Part 157 of the Colorado 80944, filed in Docket No. pending and future rate filings. Also, Commission’s Regulations, for an order CP96–689–000 an application pursuant Columbia retained for company-use and granting permission and approval to to Section 7(c) of the Natural Gas Act for unaccounted-for gas a percentage of the abandon an exchange service agreement authorization to operate in interstate total gas volumes received by Columbia between the Applicants, all as more commerce certain existing gathering for transportation to Orange and fully set forth in the application which lines located in Potter, Moore and Rockland. This percentage of retention is on file with the Commission and open Hartley Counties, Texas, for the purpose was adjusted from time to time to reflect to public inspection. of providing fuel gas from CIG’s changes in its operation. Applicants state that the exchange transmission system to three field Comment date: August 29, 1996, in service is governed by Rate Schedules compressor stations, all as more fully set accordance with Standard Paragraph F X–54 for Texas Eastern and X–3 for forth in the application on file with the at the end of this notice. CNG. Applicants further state that they Commission and open to public have agreed to terminate the exchange inspection. 2. CNG Transmission Corporation service pursuant to the terms and CIG requests authorization to operate [Docket No. CP96–674–000] conditions of a termination agreement existing nonjurisdictional gathering lines consisting of approximately 10.0 Take notice that on July 29, 1996, dated March 7, 1995. Comment date: August 29, 1996, in miles of 10-inch-diameter and 1.3 miles CNG Transmission Corporation (CNG), accordance with Standard Paragraph F of 14-inch-diameter pipelines. The lines P.O. Box 2450, Clarksburg, West at the end of this notice. will be used to provide processed gas Virginia, 26302–2450, filed in Docket from CIG’s transmission system for use No. CP96–674–000 a request pursuant to 4. Williams Natural Gas Company as fuel gas to nonjurisdictional field §§ 157.205 and 157.211 of the [Docket No. CP96–685–000] compressors No. 3, No. 25 and No. 27 Commission’s Regulations under the Take notice that on July 31, 1996, located in the Panhandle Field of Texas. Natural Gas Act (18 CFR 157.205 and Williams Natural Gas Company (WNG), CIG states that the three field 157.211) for approval and permission to P.O. Box 3288, Tulsa, Oklahoma 74101, compressors are currently using install a new delivery point, under the filed in Docket No. CP96–685–000 a unprocessed fuel which is resulting in blanket certificate issued in Docket No. request pursuant to §§ 157.205, 157.212 a loss of efficiency and increased CP82–537–000, pursuant to Section 7(c) and 157.216 of the Commission’s maintenance. CIG believes that of the Natural Gas Act (NGA), all as Regulations under the Natural Gas Act providing processed gas to the field more fully set forth in the request which (18 CFR 157.205, 157.212, 157.216) for compressors will provide for more is on file with the Commission and open authorization: (1) To replace and efficient operation of these compressor to public inspection. relocate the Oswego town border meter stations and decrease maintenance CNG states that it proposes to install setting and, after the relocation and requirements. CIG states that there are a tap and appurtenant facilities to serve replacement, (2) to abandon by sale to no new facilities proposed except for as a new delivery point to T. W. Phillips Western Resources, Inc. approximately minor yard piping to connect the Gas and Oil Company, a local 1.2 miles of 4-inch lateral pipeline processed gas to the compressor units. distribution company in Allegany downstream of the new meter site, all CIG proposes to backflow processed County, Pennsylvania. It is indicated located in Labette County, Kansas, gas from its transmission system that Phillips will install meter and under WNG’s blanket certificate issued through an existing certificated line of regulation equipment adjacent to CNG’s in Docket No. CP82–479–000 pursuant approximately 2.55 miles that will Line TL–469 for Phillips’ system supply to Section 7 of the Natural Gas Act, all connect with the existing 14-inch- obligations. It is further indicated that as more fully set forth in the request that diameter line for the delivery of the fuel the annual deliveries through the is on file with the Commission and open gas to the three field compressors. proposed facilities will not exceed to public inspection. Comment date: August 29, 1996, in 3,650,000 Mcf. CNG asserts that it will WNG proposes to reclaim the Oswego accordance with Standard Paragraph F transport natural gas to Phillips under double run 3-inch orifice meter and at the end of this notice. existing, certificated transportation regulator setting and to relocate and 6. Texas Gas Transmission Corporation arrangements with Phillips. CNG further install a new dual 3-inch rotary meter asserts that the estimated construction and regulator setting in Labette County, [Docket No. CP96–693–000] costs of the proposed facilities is Kansas. WNG states that the Oswego Take notice that on August 5, 1996, $75,000. town border meter setting was originally Texas Gas Transmission Corporation Comment date: September 23, 1996, installed in 1932 and that the (Texas Gas), 3800 Frederica Street, in accordance with Standard Paragraph installation of a new rotary meter setting Owensboro, Kentucky 42301, filed in G at the end of this notice. will provide for more accurate Docket No. CP96–693–000 an Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices 42243 application pursuant to Section 7(b) of in accordance with the Commission’s 3501 et seq.), this notice announces that the Natural Gas Act for permission and Rules. the Information Collection Request (ICR) approval to abandon a transportation Take further notice that, pursuant to listed below is coming up for renewal. service provided for Louisville Gas and the authority contained in and subject to Before submitting the renewal package Electric Company (LG&E) by Texas Gas, jurisdiction conferred upon the Federal to the Office of Management and Budget all as more fully set forth in the Energy Regulatory Commission by (OMB), EPA is soliciting comments on application on file with the Commission Sections 7 and 15 of the Natural Gas Act specific aspects of the collection as and open to public inspection. and the Commission’s Rules of Practice described below. Texas Gas proposes to abandon a and Procedure, a hearing will be held DATES: Comments must be submitted on transportation service performed for without further notice before the or before October 15, 1996. Commission or its designee on this LG&E pursuant to a contract between ADDRESSES: United States Texas Gas and LG&E dated November 1, filing if no motion to intervene is filed Environmental Protection Agency, 1993 (Agreement). Texas Gas states the within the time required herein, if the Office of Enforcement and Compliance Agreement provides for Texas Gas to Commission on its own review of the Assurance, Office of Compliance, matter finds that a grant of the transport up to 30,000 MMBtu per day Manufacturing, Energy and certificate is required by the public (winter and summer) for LG&E on a firm Transportation Division, Energy and convenience and necessity. If a motion basis under Rate Schedule FT, and is Transportation Branch (2223A), 401 M for leave to intervene is timely filed, or authorized pursuant to Section 284.223 Street, S.W. Washington, D.C. 20460. if the Commission on its own motion of the Commission’s regulations and the FOR FURTHER INFORMATION CONTACT: Mr. blanket certificate issued to Texas Gas believes that a formal hearing is required, further notice of such hearing Rafael Sa´nchez, United States in Docket No. CP88–686–000. Environmental Protection Agency, Texas Gas states that by letter dated will be duly given. Under the procedure herein provided Office of Enforcement and Compliance October 23, 1995, LG&E notified Texas for, unless otherwise advised, it will be Assurance, Office of Compliance, Gas of its desire to terminate the unnecessary for the applicant to appear Manufacturing, Energy and Agreement effective November 1, 1996, or be represented at the hearing. Transportation Division, Energy and at the end of its first roll-over term. G. Any person or the Commission’s Transportation Branch (2223A), 401 M Texas Gas states that in its Order No. staff may, within 45 days after the Street, S.W. Telephone: (202) 564–7028. 636 restructuring case (Docket No. issuance of the instant notice by the Facsimile: (202)564–0039. Internet: RS92–24), the Commission approved Commission, file pursuant to Rule 214 [email protected]. the designation by Texas Gas of a of the Commission’s Procedural Rules SUPPLEMENTARY INFORMATION: certain class of transportation (18 CFR 385.214) a motion to intervene Affected entities: Entities affected by agreements which would not be or notice of intervention and pursuant this action are those steam generating terminated without prior Commission to § 157.205 of the Regulations under units for which construction, approval, and that the subject the Natural Gas Act (18 CFR 157.205) a modification or reconstruction is Agreement is one of those listed in protest to the request. If no protest is commenced after June 29, 1989, and Section 32.3 of Texas Gas’s FERC Gas filed within the time allowed therefore, that has a maximum design heat input Tariff as requiring specific prior the proposed activity shall be deemed to capacity of 29 megawatts (MW) (100 Commission approval before be authorized effective the day after the million Btu per hour(Btu/hr)) or less, abandonment would be authorized. time allowed for filing a protest. If a but greater than or equal to 2.9 MW (10 Thus, by this application, Texas Gas protest is filed and not withdrawn million Btu/hr). seeks authority to abandon service to within 30 days after the time allowed Title: New Source Performance LG&E under the Agreement effective for filing a protest, the instant request Standards (NSPS) for Small Industrial- November 1, 1996. shall be treated as an application for Commercial-Institutional Steam Comment date: August 29, 1996, in authorization pursuant to Section 7 of Generating Units—40 CFR Part 60, accordance with Standard Paragraph F the Natural Gas Act. Subpart Dc, OMB No. 2060–0202, at the end of this notice. Lois D. Cashell, Expiration Date: 9/30/96. Abstract: The NSPS for Subpart Dc Standard Paragraphs Secretary. [FR Doc. 96–20689 Filed 8–13–96; 8:45 am] were proposed on June 9, 1989 and F. Any person desiring to be heard or promulgated on September 12, 1990. BILLING CODE 6717±01±P make any protest with reference to said These standards apply to steam filing should on or before the comment generating units with a maximum date file with the Federal Energy ENVIRONMENTAL PROTECTION design heat input capacity of 29 Regulatory Commission, 888 First AGENCY megawatts (MW) (100 million Btu per Street, N.E., Washington, D.C. 20426, a hour(Btu/hr)) or less, but greater than or motion to intervene or a protest in [FRL±5553±4; OMB No. 2060±0202] equal to 2.9 MW (10 million Btu/hr) accordance with the requirements of the commencing construction, modification Commission’s Rules of Practice and Agency Information Collection or reconstruction after the date of Procedure (18 CFR 385.211 and Activities Up For Renewal; New Source proposal. The pollutants regulated 385.214) and the Regulations under the Performance Standards For Small under this subpart include sulfur Industrial-Commercial-Institutional Natural Gas Act (18 CFR 157.10). All dioxide (SO2) and particulate matter protests filed with the Commission will Steam Generating Units, Expiration (PM). be considered by it in determining the Date 9/30/96 Owners or operators of the affected appropriate action to be taken but will AGENCY: Environmental Protection facilities described must make the not serve to make the protestants parties Agency (EPA). following one time-only reports: to the proceeding. Any person wishing ACTION: Notice. notification of the date of construction to become a party to a proceeding or to or reconstruction; notification of the participate as a party in any hearing SUMMARY: In compliance with the anticipated and actual dates of startup; therein must file a motion to intervene Paperwork Reduction Act (44 U.S.C. notification of any physical or 42244 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices operational change to an existing facility the nature and cause of the malfunction [OPP±30000/18F; FRL±5386±5] which may increase the regulated (if known) and corrective measures pollutant emission rate; notification of taken, and identification of the time Ethylene Bisdithiocarbamates demonstration of the continuous period during which the CMS was (EBDCs); Announcement of monitoring system (CMS); notification inoperative (this does not include zero Modifications to Existing EBDC of the date of the initial performance and span checks nor typical repairs/ Cancellation Orders and Issuance of test; and the results of the initial adjustments). New Cancellation Orders for Four Crops performance test. The EPA would like to solicit Owners or operators are also required comments to: AGENCY to maintain records of the occurrence : Environmental Protection and duration of any startup, shutdown, (i) Evaluate whether the proposed Agency (EPA). or malfunction in the operation of an collection of information is necessary ACTION: Announcement of Two affected facility, or any period during for the proper performance of the Modifications to EBDC Cancellation which the monitoring system is functions of the agency, including Orders and Issuance of New inoperative. These notifications, reports, whether the information will have Cancellation Orders. and records are required, in general, of practical utility; SUMMARY: The EBDC Notice of Intent to all sources subject to NSPS. (ii) Evaluate the accuracy of the The standards require reporting of the Cancel (NOIC) (PD 4) was published in Agency’s estimate of the burden of the the Federal Register of March 2, 1992 results of the initial performance test to proposed collection of information; determine compliance with the (57 FR 7484) and announced the Agency’s intent to cancel certain EBDC applicable SO2 and/or PM standards. (iii) Enhance the quality, utility, and For units using a continuous emission clarity of the information to be product registrations. This document monitoring system (CEMS) to determine collected; and announces three actions which have occurred since the publication of the compliance with the SO2 standard, the (iv) Minimize the burden of the NOIC. The three actions are: (1) May 28, regulation requires submittal of the collection of information on those who 1992 modification of the pre-harvest results of the CEMS demonstration. are to respond, including through the interval on potatoes, (2) August 3, 1994 After the initial report, the standard use of appropriate automated collection modification allowing the use of more for SO2 requires each affected facility to techniques or other forms of information submit quarterly compliance reports. than one EBDC per crop per season, and technology, e.g., permitting electronic (3) February 1, 1996 issuance of the After the initial report, the standard for submission of responses. PM requires quarterly reports to be Cancellation Order for four leafy green submitted to notify of any emissions Burden Statement crops - collards, mustard greens, exceeding the applicable opacity limit. turnips, and spinach -except for limited If there are no excess emissions, a Most of the industry costs associated use in Georgia and Tennessee. semiannual report stating that no with the information collection activity FOR FURTHER INFORMATION CONTACT: exceedences occurred may be in the standards are labor costs. The Amy Porter, Special Review and submitted. current average annual burden to Reregistration Division (7508W), Office The recordkeeping requirements for industry from these record keeping and of Pesticide Programs, Environmental small industrial-commercial- reporting requirements is estimated at Protection Agency, 401 M St., S.W., institutional steam generating units 229,674 person-hours. The respondent Washington, DC 20460. Telephone: consist of the occurrence and duration costs have been calculated based on (703) 308–8054, e-mail: of any startup and malfunctions as $14.50 per hour plus 110 percent [email protected]. described. They include the initial overhead. The current average annual SUPPLEMENTARY INFORMATION: This performance test results including burden to industry is estimated to be document announces two previous information necessary to determine the $6,993,568. modifications to the EBDC Cancellation conditions of the performance test, and Based upon available information, it Order and the issuance of an additional performance test measurements and has been estimated that approximately Cancellation Order cited in the results, including the applicable sulfur 212 sources are currently subject to the summary above. This document is dioxide and/or particulate matter standard, and it is estimated that an organized into four units. Unit I is the results. Records of startups, shutdowns, additional 71 sources per year will Regulatory Background. Unit II is the and malfunctions should be noted as become subject to the standard. announcement of a previous they occur. Any owner or operator modification to the Cancellation Order No person is required to respond to a subject to the provisions of this part related to the use of EBDCs on Potatoes. collection of information unless it shall maintain a file of these Unit III is the announcement of a displays a currently valid OMB control measurements, and retain the file for at previous modification to the number. The OMB control numbers for least two years following the date of Cancellation Order related to the use of EPA’s regulations are displayed in 40 such measurements. more than one EBDC on one crop during CFR Part 9. The reporting requirements for this one season. Unit IV announces the type of facility currently include the Send comments regarding these issuance of a Cancellation Order for initial notifications listed, the initial matters, or any other aspect of the Collards, Mustard Greens, Turnips, and performance test results, and quarterly information collection, including Spinach. report of SO2 emissions, and instances suggestions for reducing the burden, to of excess opacity. Semiannual opacity the address listed above. I. Regulatory Background reports are required when there is no Dated: August 1, 1996. The EBDCs are a group of pesticides excess opacity. Semiannual excess consisting of four registered active emission reports and monitoring system Elaine Stanley, ingredients: mancozeb, maneb, metiram, performance reports shall include the Director, Office of Compliance. and nabam. They are used primarily as magnitude of excess emissions, the date [FR Doc. 96–20700 Filed 8–13–96; 8:45 am] protectants against fungal pathogens on and time of the exceedence or deviance, BILLING CODE 6560±50±P apples, cucurbits (i.e., cucumbers, Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices 42245 melons, pumpkins and squash), lettuce, additional uses were proposed for registrations for potato use had to satisfy onions, potatoes, small grains, sweet cancellation by the Agency. to avoid cancellation. For a product to corn, and fungal and bacterial pathogens On May 16, 1990 (55 FR 20416) EPA remain registered for potato use, the on tomatoes. Nabam is currently issued a proposal to revoke and reduce registrations had to be amended to registered as an industrial biocide; all tolerances for the 42 deleted uses plus include directions for use including registrations of nabam for agricultural the three additional uses proposed for maximum application rates, maximum uses have been voluntarily canceled (54 cancellation. number of applications per season, FR 50020) and currently there are no On March 2, 1992 (57 FR 7484) EPA application interval, and pre-harvest established tolerances. published in the Federal Register a interval (PHI). The Agency allowed a The regulatory history of the EBDCs is Notice of Intent to Cancel and minimum 3–day PHI in Connecticut, described in detail in the March 2, 1992 Conclusion of Special Review (PD 4). Florida, Maine, Massachusetts, New Notice of Intent to Cancel and Based on information and comments Hampshire, New York, Pennsylvania, Conclusion of Special Review (57 FR received in response to the PD 2/3 and Vermont, and Wisconsin due to disease 7484), the PD 4. In brief, EPA has twice data submitted by registrants in pressures caused by late blight. A 14– initiated a Special Review of the EBDCs. response to a March 10, 1989 Data Call- day PHI was required in all other states. In 1977, EPA initiated a Rebuttable In, EPA revised its risk and benefits At the time the NOIC was issued, the Presumption Against Registration, or assessments. EPA determined that 45 of Agency had no information suggesting RPAR, (later referred to as a Special the 56 uses posed acceptable risks and that Delaware, Michigan and Ohio had Review) based on the presumption that 11 of the 56 crops posed unreasonable a late blight problem and included those the EBDCs and ETU, a common risks. (The 56 uses referred to in the PD states among the states subject to a contaminant, metabolite, and 4 were inadvertently referred to as 55 in minimum 14–day PHI. Subsequent to degradation product of EBDCs, posed the PD 2/3.) All maneb, mancozeb, and the NOIC being issued, a group of the following potential risks to humans metiram registrations for products with registrants and growers submitted to the and/or the environment: these 11 uses would be canceled unless Agency information on late blight carcinogenicity, developmental toxicity, these uses were deleted from all EBDC supporting a minimum 3–day PHI for and acute toxicity to aquatic organisms. labels. The 11 food uses were: apricots, Delaware, Michigan and Ohio. This In 1982, EPA concluded this RPAR by carrots, celery, nectarines, peaches, group (petitioners) requested a hearing issuing a PD 4, which announced rhubarb, succulent beans, collards, to add these three states to the list of measures designed to preclude mustard greens, spinach, and turnips. states for which a 3–day PHI was unreasonable adverse effects pending Since publication of the NOIC, all permitted. development of additional data needed product registrations with one or more Additionally, at the time the Agency to arrive at a more realistic assessment of the following eight food uses have issued the NOIC, it understood that the of the risks. At that time, EPA deferred been canceled or amended to delete the ‘‘New England’’ states as well as some a decision on carcinogenic effects affected uses: apricots, carrots, celery, other states had a late blight problem because of the lack of sufficient nectarines, peaches, rhubarb, succulent and allowed a minimum three day PHI information to estimate risk. beans, and spinach. (Collards, mustard for those states. Rhode Island was On July 17, 1987, EPA initiated a greens, and turnips were not canceled, erroneously omitted from the list of second Special Review by issuing a but use has been modified as per a states. Notice of Initiation of Special Review of settlement agreement. See Unit IV of B. Potato--Pre-harvest Interval the EBDC pesticides because of this notice for discussion.) carcinogenic, developmental, and Further, EPA determined that the 1. Risks. Based on data received after thyroid effects caused by ETU (52 FR remaining 45 food uses did not pose an the publication of the PD 4 and the PD 21772). unreasonable risk provided certain use 4 risk estimates, the Agency determined On September 6, 1989, the four restrictions specified in the PD 4 were that the changes proposed would not technical registrants of mancozeb, incorporated into all EBDC product result in any significant changes in risk maneb, and metiram (Elf Atochem, registrations and labeling. The 45 uses caused by EBDC/ETU. BASF, DuPont, and Rohm and Haas) 2. Benefits. The Agency understood subject to the specified modifications to requested that EPA amend their that quality and yield impacts were terms and conditions of registrations registrations to delete 42 of the 55 likely to occur in potato growing states were: almonds, apples, asparagus, registered food uses and to restrict where late blight was present. Prior to bananas, barley, broccoli, Brussels formulation of their technical products the publication of the PD 4, the Agency sprouts, cabbage, cauliflower, corn only into products labeled for the 13 was not aware of the existence of late (field, sweet and pop), cotton, retained uses. These amendments were blight on potatoes in Delaware, cranberries, crabapples/quince, accepted on December 4, 1989 (54 FR Michigan, or Ohio. When the Agency cucumbers, dry beans, eggplant, endive, 50020) and made effective December 14, became aware of the late blight fennel, grapes, kadota figs, kale, 1989. The thirteen remaining uses on problems in these states, the Agency kohlrabi, lettuce (head and leaf), affected EBDC labels were: almonds, determined that quality and yield melons: cantaloupe, casaba, crenshaw, asparagus, bananas, caprifigs, impacts would likely occur. cranberries, grapes, onions, peanuts, honeydew, watermelon, oats, onions 3. Risk/benefit conclusion. The potatoes, sugar beets, sweet corn, (dry bulb and green), papayas, peanuts, Agency determined that in the states tomatoes, and wheat. pears, pecans, peppers, potatoes, with substantial late blight occurrence, EPA issued a Notice of Preliminary pumpkins, rye, squash, sugar beets, the benefits outweigh the risk associated Determination (also known as a PD 2/3) tomatoes, and wheat. with a 3–day PHI. on December 20, 1989 (54 FR 52158) II. Modified Cancellation Order 4. Provisions of use. On May 28, 1992, announcing its proposed decision to Regarding the Use of EBDCs on Potatoes a settlement agreement was reached cancel all but 10 uses on the basis of allowing a 3–day PHI in Delaware, unreasonable risk and a lack of support A. Background Michigan and Ohio on the basis of late by the registrants. Forty-two of these The 1992 NOIC included certain blight problems in those states. The were deleted by the registrants and three requirements which product Agreement also included the addition of 42246 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices

Rhode Island to the list of other New evidence and reasoning, the the remainder of the season—even England states for which a 3–day PHI Administrator modified the though it may not have been the most was allowed. (Ref. 1) Cancellation Order on July 8, 1994 to effective treatment for the pest. The reflect the proposed language. (Refs. 2 Agency agreed with petitioners that III. Modified Cancellation Order and 3) there is increased risk of resistance Regarding the Use of More Than One Estimated risks/label change. The when the range of active ingredients is EBDC on One Crop During One Season petitioners did not submit any new limited. A. Background information which would affect the Fungal problems associated with validity of the Agency’s analysis of the potatoes include root rot or late blight The March 2, 1992 NOIC contained a toxicity of EBDCs or the methodology which is commonly treated with a requirement that, to avoid cancellation, used to estimate exposure to EBDCs. metalaxyl product that is considered all EBDC labels and product The petitioners asserted that the most effective when it is used in a registrations bearing agricultural uses proposed language did not increase the metalaxyl/EBDC mix. Product mixes (as must be amended to include the individual or seasonal application limits opposed to tank mixes) are preferred following label statement: ‘‘If this and provided equivalent protection in because of their convenience, ease in product is used on a crop, no other terms of limiting exposure while handling, reduced potential exposure, product containing a different EBDC addressing the Agency’s concerns about and reduced costs. Post PD 4 labeling active ingredient may be used on the multiple EBDC use as well as having the precluded growers from using same crop during the same growing added advantage of being more easily metalaxyl/EBDC mixes such as Ridomil season.’’ This requirement prohibited understood. The petitioners further Mz (metalaxyl and mancozeb) if they the use of more than one EBDC active asserted that the decision to restrict had used maneb earlier in the season. ingredient per crop per season. EBDC use as per the restrictive language This limited growers to using metalaxyl Although the reason for this of the NOIC was not based on specific without an EBDC which may be a less requirement was not stated in the NOIC, risk concerns but on concerns of effective treatment and may have the Agency’s decision to limit EBDC exceeding maximum amount of product limited the potatoes’ marketability. application as such was to avoid the allowed per crop per season. The Reliability of supply was of concern potential overuse of EBDC’s through Agency agreed with the petitioner’s for growers. All EBDC active ingredients active ingredient switching. The assertions, and agreed that there are are manufactured abroad and domestic decision was not based on specific risk other disincentives to growers that suppliers have little control over concerns or on the risk calculations should dissuade them from engaging in ensuring their steady supply. The underlying the Agency’s EBDC that type of practice, such as the risk of failure of a foreign supplier or regulatory decision. having crops with over-tolerance manufacturer to deliver the active Subsequent to the NOIC becoming an residues. The Agency concluded that ingredients as scheduled can result in effective order of cancellation, the the proposed label change would not the shortage of a particular formulation. Agency received a request for a hearing result in a change in EBDC risk. This was creating problems for growers from Elf Atochem and Griffin Estimated benefits/label restriction. who were bound by post PD 4 label Corporations (petitioners) with The petitioner’s submission included specifications to use a specific active supporting letters from the Florida Fruit information and evidence on the ingredient. and Vegetable Association and the benefits of using more than one EBDC The submission provided evidence of National Potato Council to replace the active ingredient per crop per season the registrant/marketplace/grower label requirement which allowed the which was not available to or confusion that resulted from the post PD use of only one EBDC per crop per considered by the Agency prior to the 4 language that was not available at the season and prohibited certain seed final Cancellation Order. The petitioners time of the NOIC. The submission treatment applications. asserted that the current label restriction provided examples in which A hearing was granted under subpart had a substantial impact on the misinterpretations of the language were D of 40 CFR part 164, 40 CFR 164.130 industry, including negative effects on printed in a grower group newsletter - 164.133. 40 CFR part 164, subpart D competition, industry-wide confusion, and a journal. allows the Administrator to consider and hardship for suppliers and growers The misinterpretations of the modifying a prior cancellation decision alike. The Agency agreed with the language differed substantially from the if the petitioner presents substantial points included in the submission EPA’s post-cancellation order new evidence which may materially which are summarized below: interpretation which was explained in a affect the prior cancellation order and The post PD 4 label specification 5/26/92 letter from Jack Housenger/EPA which was not available to the precluded growers from switching to Janet Ollinger (Ref. 4) which clearly Administrator at the time the final among EBDCs for any reason, even if a limited only switching among active cancellation determination was made, particular product was high priced due ingredients and did not restrict and this evidence could not, even with to limited availability or if a particular switching among different brands of the due diligence, have been discovered by product was unavailable. same EBDC active ingredient. the petitioner prior to the issuance of Many potato growers were required Petitioners asserted that this confusion the final order. by contract with food processors or was likely to influence purchasing The petitioner’s hearing request was packers to make pre-storage applications decisions and create unfair advantages found to meet these criteria and a of Ridomil (metalaxyl) which contains for certain products while undermining hearing was held on June 20, 1994. At mancozeb, because consultants and integrated pest control practices. this hearing, the petitioners successfully researchers have strongly recommended Risk/benefit conclusion. The Agency demonstrated that since the issuance of this as a way to prevent root rot or late had attempted to clarify this issue, but the NOIC, there had been considerable blight. This, coupled with the post PD even with clarification, unintended confusion in the marketplace and an 4 prohibition on switching among EBDC impacts continued. The Agency unexpected impact on the benefits of active ingredients, precluded any potato recognized that the label language use. (See detailed discussion of benefits grower under such a contract from using required by the NOIC created confusion below.) In light of the petitioners’ any EBDC but mancozeb on that crop for and therefore there were Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices 42247 implementation problems in the IV. Cancellation Order for Collards, field trials conducted on collards, marketplace and at the grower level. It Mustard Greens, Turnips, and Spinach mustard greens, and turnips in Georgia is obvious from the information Background. As discussed above, the and Tennessee. These data reflect use provided at the hearing that the NOIC of March 2, 1992 announced the rates lower than those previously confusion continued even after the Agency’s decision to cancel 11 uses allowed. Post PD 4 risk assessment. The field Agency attempted to clarify the including collards, mustard greens, trial data were reviewed on January 25, requirement and its intent. The Agency turnips (includes tops), and spinach. 1994. (Ref. 7) Using the cancer potency agreed that the previous label restriction The NOIC stated that under FIFRA factor (Q *) of 0.11 (mg/kg/day)-1 as had was inconsistent with the nature of section 6(b), persons adversely affected 1 been used for the PD 4, and assuming Integrated Pest Management (IPM) by the Notice could request a hearing 100% crop treated, risk was estimated programs which are based on selective within 30 days of receipt of the Notice for a variety of registration scenarios use of different classes of pesticides, or 30 days from the date of publication. and recognized letters of support from and population groups (Refs. 8, 9, 10, A hearing request was submitted by the and 11). The risk from treated greens to the Florida Fruit and Vegetable American Food Security Coalition Association and the National Potato the general population was estimated to (AFSC), a group of Georgia leafy greens be 1.0 × 10-6 and risk to non-Hispanic Council for changing the EBDC label growers, and United Foods, Inc. (the language. The Agency agreed that the blacks (the most sensitive sub- petitioners) regarding cancellation of the × revised language adequately addressed population) was estimated to be 5.8 use of EBDCs on collards, mustard -6 × -6 the objective of the original language, 10 . (A cancer risk of 5.8 10 greens, turnips, and spinach. (Ref. 5) indicates that the individual has an did not increase risk from EBDCs, and On June 25, 1993, the Court granted reduced impacts to growers. estimated 5.8 out of 1 million chance of a motion which stated that the Agency developing cancer over a lifetime due to Provisions of use/label change. The and the petitioners had initiated exposure to the chemical.) The risk to language proposed by the petitioners settlement discussions and that the Non-Hispanic Blacks is higher than the allowed the use of more than one EBDC petitioners had developed new general population because of higher active ingredient per crop per season, scientific data that the Agency would reported consumption. The Agency specified formulas to follow for review. The parties were required to file considered the risk to non-Hispanic maximum poundage allowed when monthly status reports while reviews blacks to be unacceptable. different EBDCs are used, and allowed and negotiations were conducted. The Agency met with the petitioners for a single seed treatment per crop per The petitioners conducted field trial in September 1994 to convey the season in addition to the foliar residue studies for maneb on collards, determination that risk continued to applications where the crop has a mustard greens and turnips at use rates outweigh benefits. registered seed treatment use. The lower than those previously allowed. Revised Post PD 4 risk assessment. language approved by the Agency to These reports were submitted to the Subsequent to the September 1994 replace the previous statement, if Agency in December of 1993. Reviews meeting with the petitioners, two requested, is as follows: of these studies and negotiations significant factors led the Agency to Foliar Applications: continued through February 1, 1996 reassess the risk of these uses — a Where EBDC Products Used Allow the when the proceedings were concluded revised interspecies scaling factor was Same Maximum Poundage of Active with the Settlement Agreement between adopted by the Agency, and additional Ingredient Per Acre Per Season: the petitioners and the Agency. (Refs. 5 information was submitted regarding If more than one product containing an and 6) This agreement canceled all percent crop treated. EBDC active ingredient (maneb, mancozeb, or EBDC uses on collards, mustard greens, In late 1994, the Agency adopted the metiram) is used on a crop during the same turnips, and spinach - except limited Unified Interspecies Scaling Factor for growing season and the EBDC products used use on collards, mustard greens, and translation of animal bio-assays to allow the same maximum poundage of active turnips in Georgia and Tennessee, and humans. Because this factor is used in ingredient per acre per season, then the total announced the petitioners’ withdrawal calculating the Q1*, the Agency adjusted poundage of all such EBDC products used of their hearing request. the Q1* from 0.11 to 0.06. The revised must not exceed any one of the specified Treated greens-risks. The Agency Q1* resulted in a revised risk estimate individual EBDC product maximum seasonal determined in the PD 4/NOIC that the for the 45 retained uses, which poundage of active ingredient allowed per dietary risk of continued use of EBDCs decreased from 1.6 × 10-6 to 0.9 × 10-6 acre. on collards, mustard greens, and turnips for the general population. Risk Where EBDC Products Used Allow exceeded the benefits based on the estimates for greens for the general Different Maximum Poundage of Active evidence available at the time. The PD population decreased from 1.0 × 10-6 to Ingredient Per Acre Per Season: 4 risk assessment for these crops was 4.6 × 10-7 and for non-Hispanic blacks If more than one product containing an based on pre-PD 4 labels which allowed decreased from 5.8 × 10-6 to 2.6 × 10-6. EBDC active ingredient is used on a crop an unlimited number of applications during the same growing season and the (Ref. 12) Percent crop treated is the number of EBDC products used allow different with no application intervals, required a acres of treated crop divided by the total maximum poundage of active ingredient per 10–day pre-harvest interval, limited the acre per season, then the total poundage of maximum rate per application to 2.4 lbs number of acres of a crop grown in the all such EBDC products used must not a.i., and permitted nationwide use. United States if a crop is only treated in exceed the lowest specified individual EBDC The petitioners claimed that the certain areas of the United States, then product maximum seasonal poundage of dietary exposure estimates used for the the Agency would normally assume that active ingredient allowed per acre. leafy greens in the PD 4 (field trial data) the percent crop treated was the same as Seed Treatment: were based on residue estimates the percent of nationwide acreage grown In addition to the maximum number of significantly higher than the estimates in a particular area. Originally, EPA foliar applications permitted by the formula that would be expected from market used the conservative assumption that stated above, a single application for seed basket data, with adjustments for in certain areas all of the leafy greens treatment may be made on crops which have washing and processing. The petitioners being marketed would have been treated registered seed treatment uses. submitted residue data from new maneb with maneb (100% crop treated). This 42248 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices was based on EPA’s belief at the time percent of crop treated of 22% for cost per cancer case avoided for a that leafy greens markets were relatively turnips, 31% of collards, and 36% of specific use. Although the cost estimates static and that certain supermarket mustard greens. for the greens have not changed since chains or regions would tend to sell, The Agency’s final risk assessment the PD 4, the risk estimates have over long periods of time, leafy greens based on the 1993 leafy greens data is decreased significantly, bringing the grown in the same area. presented in detail in the Health Effects cost-effectiveness ratios to an acceptable Division’s 2/21/95 Review of Potential In May, 1995, however, the range. The current cost-effectiveness Section 18 use, and the corresponding petitioners argued that a better way to estimates for collards, mustard greens, DRES Analysis dated 3/23/95. (Refs. 12 and turnips are consistent with the PD estimate the percent crop treated with and 13) The final risk estimate for maneb would be to take into account the 4 estimates for the other retained uses. maneb on greens only with the revised The revised risk from all EBDC treated relative percentage of the leafy green Q * and the 22/31/36 Georgia and crops grown in Georgia and Tennessee. 1 crops combined, including the addition Tennessee percent crop treated of Georgia and Tennessee treated greens, Turnips, collards, and mustard greens × -7 assumption, is 1.3 10 for the general is estimated to be 1.6 × 10-6 for non- grown in these states represents 22%, population and 7.1 × 10-7 for non- 31%, and 36% of national production, Hispanic blacks — the level determined Hispanic blacks. to be acceptable at the PD 4, with respectively. In support of this request, Treated greens--benefits. At the time comparable cost-effectiveness ratios. petitioners provided market distribution of the PD 4, the Agency anticipated data for Georgia and Tennessee grown The revised risk to the general significant impacts from the loss of use × -6 greens. The information submitted of EBDC on the three greens. The population is 1.0 10 which is lower demonstrated that Georgia and estimated impacts were $13 - $31 than risk estimated at the PD 4. Based Tennessee greens are distributed million, and this was confirmed by on current estimates, EPA concludes nationally, as are greens from other yield loss information reported after the that risk does not outweigh benefits, states, and that in any given region the PD 4. The current estimates are provided that the use is limited to the source of greens varies with the season consistent with those from the PD 4. use of maneb on leafy greens in Georgia and with changes in marketing Treated greens--risk/benefit and Tennessee only at the use rates contracts. This information convinced conclusion. In the PD 4, the Agency specified below. the Agency that there was no need to used cost-effectiveness to compare risks Treated greens--provisions of use. As assume that individuals would be and benefits among uses. Cost- finalized by the February 1, 1996 exposed to 100% maneb-treated leafy effectiveness is a tool used to compare Settlement Agreement, all EBDC/maneb greens over their lifetime. Instead, the the impact to society associated with the uses on collards, mustard greens, Agency assumed that 100% of these loss of use (cost) on a particular site to turnips, and spinach other than the uses leafy greens grown in Georgia and the estimated reduction in risk of that in the following Table 1 for Maneb 75DF Tennessee (and 0% elsewhere) would site (effectiveness). For the EBDCs, the or Maneb 80WP in Georgia and be treated, resulting in a nationwide cost-effectiveness refers to the societal Tennessee only, are now canceled:

TABLE 1.ÐAPPLICATION RATES FOR MANEB 75DF AND MANEB 80WP (Georgia and Tennessee only)

Crop Collards Turnips (Varieties grown for greens only) MustardGreens

Number of Applications 3 1 2 Per Cutting. Interval between Applica- 14 days N/A 14 days tions. Pre-Harvest Interval ...... 14 days 14 days 14 days Rate Per Application ...... 1.2 lb active ingredient 1.2 lb active ingredient per acre 1.2 lb active ingredient per acre per acre Rate Per Cutting ...... 3.6 lb active ingredient 1.2 lb active ingredient per acre 2.4 lb active ingredient per acre per acre

References Statement Required in the PD 4.’’ May 26, Based on New Residue Studies. February 3, 1992. 1994. The following sources are referenced 5. IN RE: American Food Security 9. Griffin, Richard. EBDC/ETU Special in this document. Coalition (AFSC), et al. Joint Motion for an Review. DRES Dietary Exposure and Risk 1. IN RE: American Food Security Accelerated Decision and Order and Estimates for Use of Maneb on Collards, Coalition (AFSC), et al. Joint Motion for Settlement Agreement. January 31, 1996. Mustard Greens, and Turnip Tops. March 11, Accelerated Decision and Settlement FIFRA Hearing Docket 646. 1994. Agreement. May 28, 1992. FIFRA Hearing 6. IN RE: American Food Security 10. Griffin, Richard. EBDC/ETU Special Docket 646. Coalition (AFSC), et al. Accelerated Decision Review. DRES Dietary Exposure and Risk 2. IN RE: Elf Atochem of North America, and Order. February 1, 1996. FIFRA Hearing Estimates for Use of Maneb on Collards, Inc. and Griffin Corporation. Initial Decision, Docket 646. Mustard Greens, and Turnip Tops. March 18, Recommended Order. July 8, 1994. FIFRA 7. Hummel, Susan V. Maneb on Collards/ 1994. Hearing Docket 657. Field Trials, Residue Decline Studies, 11. Griffin, Richard. Special Review for 3. IN RE: Elf Atochem of North America, Reduction of Residue Study, Final Reports. Maneb (EBDC) Use on Turnips, Collards, and Inc. and Griffin Corporation. Order Declining January 25, 1994. Mustard Greens. DRES Dietary Exposure and Review. August 3, 1994. FIFRA Hearing 8. Griffin, Richard. EBDC/ETU Special Risk Estimates. June 3, 1994. Docket 657. Review. DRES Dietary Exposure and Risk 12. Griffin, Richard. Special Review. DRES 4. Housenger, Jack. Response to April 14, Estimates for Use of Maneb on Collards, Dietary Exposure and Risk Estimates for 1992 letter regarding the ‘‘Restriction Mustard Greens, and Turnip Tops. Estimates Proposed Section 18 Use of Formulations Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices 42249

Containing Metalaxyl, Maneb, Mancozeb, July 29, 1996. The full text of the Report comment on a wide range of issues and Chlorothalonil. March 23, 1995. is available for inspection and copying relating to closed captioning and video 13. Hummel, Susan V. Potential Section 18 during normal business hours in the description of video programming and use on Turnip, Mustard, and Collards. FCC Reference Center (Room 239), 1919 publicly available information. February 21, 1995. M Street, N.W., Washington, D.C., 5. Key findings of the Report include: List of subjects 20554, and may also be purchased from Closed Captioning the Commission’s copy contractor, Environmental protection, • International Transcription Service The primary beneficiaries of closed Administrative practice and procedure, (‘‘ITS, Inc.’’), (202) 857–3800, 2100 M captioning are the approximately 22.4 Pesticides and pest, Reporting and Street, N.W., Suite 140, Washington, million persons who are hearing recording requirements. D.C. 20037. disabled. Dated: July 31, 1996. • Between 50 and 60 million U.S. Synopsis of the Order homes have access to closed captioning. Daniel M. Barolo, 1. Section 305 of the As a result of the Television Decoder Director, Office of Pesticide Programs. Telecommunications Act of 1996, Circuitry Act of 1990 and the [FR Doc. 96–20458 Filed 8–13–96; 8:45 am] Public Law 104–104, 110 Stat. 56 Commission’s implementing rules, all BILLING CODE 6560±50±F (1996), adds a new section 713, Video television receivers with screen sizes 13 Programming Accessibility, to the inches or larger must be capable of Communications Act of 1934, as receiving and displaying closed amended. Section 713(a) requires the captions. FEDERAL COMMUNICATIONS • COMMISSION Commission to report to Congress by Through the efforts of Congress, August 6, 1996, on the results of an government agencies and a variety of [MM Docket No. 95±176, FCC 96±318] inquiry conducted to ascertain the level private parties, captioned video at which video programming is closed programming has grown over the past Closed Captioning and Video captioned. Specifically, Section 713(a) 25 years and is now a common feature Description of Video Programming directs the Commission to examine the of many video programming types. Most AGENCY: Federal Communications extent to which existing or previously nationally broadcast prime time Commission. published programming is closed television programming and nationally broadcast children’s programming news, ACTION: Notice; Report to Congress. captioned, the size of the video programming provider or programming daytime programming and some sports SUMMARY: Section 305 of the owner providing closed captioning, the programming, both commercial and Telecommunications Act of 1996 adds a size of the market served, the relative noncommercial, is now captioned. New new section 713, Video Programming audience shares achieved and any other feature films produced in the U.S. that Accessibility, to the Communications related factors. will be distributed by broadcast Act of 1934, as amended. Section 713 2. The Commission also is required to networks, cable networks, syndicators directs the Commission to conduct establish regulations and and local stations following their inquiries and report to Congress on the implementation schedules to ensure theatrical release are now captioned at accessibility of video programming to that video programming is fully the production stage. Local broadcast persons with hearing and visual accessible through closed captioning stations also frequently caption the disabilities. On July 29, 1996, the within 18 months of the enactment of portions of their local newscasts that are Commission submitted its Report to the section on February 8, 1996. The scripted in advance. Many of the Congress. As required by Section 713, Commission will initiate a rulemaking national satellite cable programming the Report provides information on the proceeding to implement this provision networks distribute programming within the next several months with the containing closed captions. availability of closed captioning for • persons with hearing impairments and issuance of a notice of proposed Certain types of programming, assesses the appropriate methods for rulemaking in order to prescribe however, are unlikely to be captioned, phasing video description into the regulations by August 8, 1997. including non-English language marketplace to benefit persons with 3. Section 713(f) requires the programming, home shopping visual disabilities. The Report is based Commission to commence an inquiry programming, weather programming on information submitted by within six months after the date of that includes a large amount of visual commenters in response to a Notice of enactment to examine the use of video and graphic information, live sports, Inquiry in this docket and publicly descriptions on video programming to and music programming. Captions are available information. The Report is ensure the accessibility of video less likely to be included in intended to provide Congress with the programming to persons with visual programming intended to serve smaller impairments. It requires the or specialized audience markets. Commission’s findings regarding closed • captioning and video description of Commission to report to Congress on its There is a wide range in the costs video programming as mandated by findings, including an assessment of the of closed captioning that reflects the Section 713. appropriate methods and schedules for method of adding the captions, the phasing video descriptions into the quality of the captions and the entity ADDRESSES: Federal Communications marketplace, technical and quality providing the captions. For pre-recorded Commission, 1919 M Street, N.W., standards for video descriptions, a programming, estimates of the cost of Washington, D.C. 20554. definition of programming for which captioning range from $800 to $2500 per FOR FURTHER INFORMATION CONTACT: video descriptions would apply, and hour of programming. Estimates for the Marcia Glauberman or John Adams, other technical and legal issues that the costs of captioning live programming Cable Services Bureau (202) 418–7200. Commission deems appropriate. range from $150 to $1200 per hour. The SUPPLEMENTARY INFORMATION: This is a 4. The Report is based on comments Department of Education provided synopsis of the Commission’s Report in filed in response to a Notice of Inquiry about $7.9 million for closed captioning MM Docket No. 95–176, FCC 96–318, in this docket, summarized at 60 FR last year, which represents roughly 40% adopted July 25, 1996, and released on 65052 (December 18, 1995), that sought of the total amount spent on captioning. 42250 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices

Video Description 403 and 713 of the Communications Act Carolina (FEMA–1127–DR), dated July • Video description is an emerging of 1934, as amended, 47 U.S.C. 18, 1996, and related determinations. service with only limited availability §§ 154(i), 154(j), 403 and 613. EFFECTIVE DATE: August 2, 1996. 7. It is ordered that the Secretary shall today. In contrast with the widespread FOR FURTHER INFORMATION CONTACT: availability of closed captioning, video send copies of this Report to the appropriate committees and Pauline C. Campbell, Response and descriptions are transmitted with only a Recovery Directorate, Federal small number of programs. As a subcommittees of the United States House of Representatives and United Emergency Management Agency, consequence, the present record on Washington, DC 20472, (202) 646–3606. which to assess video description is States Senate. SUPPLEMENTARY INFORMATION: The notice limited and the emerging nature of the Federal Communications Commission. of a major disaster for the State of North service renders definitive conclusions William F. Caton, Carolina, is hereby amended to include difficult. The general accessibility of Acting Secretary. the following areas among those areas video description is dependent on the [FR Doc. 96–20640 Filed 8–13–96; 8:45 am] determined to have been adversely resolution of certain technical, legal and BILLING CODE 6712±01±U affected by the catastrophe declared a cost issues. major disaster by the President in his • There are approximately 8.6 million declaration of July 18, 1996: individuals who are blind or visually disabled, according to the National FEDERAL EMERGENCY Bladen and Greene Counties for Individual Center for Health Statistics, who might MANAGEMENT AGENCY Assistance, Public Assistance and Hazard Mitigation. benefit from video description. [FEMA±1128±DR] • Not all broadcast stations or other Chowan County for Public Assistance and video distributors are able to transmit Michigan; Amendment to Notice of a Hazard Mitigation. (Catalog of Federal Domestic Assistance No. the secondary audio programming or Major Disaster Declaration 83.516, Disaster Assistance) ‘‘SAP’’ channel needed to provide video Dennis H. Kwiatkowski, description and only about half of the AGENCY: Federal Emergency nation’s homes have a television with Management Agency (FEMA). Deputy Associate Director, Response and Recovery Directorate. the capability to receive the SAP ACTION: Notice. channel. Currently, video description is [FR Doc. 96–20722 Filed 8–13–96; 8:45 am] SUMMARY: only available on some Public This notice amends the notice BILLING CODE 6718±02±P Broadcasting Service (‘‘PBS’’) of a major disaster for the State of programming and a limited number of Michigan (FEMA–1128–DR), dated July cable satellite programming networks. 23, 1996, and related determinations. [FEMA±1122±DR] • Video description requires the EFFECTIVE DATE: July 31, 1996. development of a second script FOR FURTHER INFORMATION CONTACT: Ohio; Amendment to Notice of a Major containing the narration of actions Pauline C. Campbell, Response and Disaster Declaration taking place in the video programming Recovery Directorate, Federal AGENCY: Federal Emergency that are not reflected in the existing Emergency Management Agency, Management Agency (FEMA). dialogue. The cost of video description Washington, DC 20472, (202) 646–3606. ACTION: Notice. are approximately one and a half times SUPPLEMENTARY INFORMATION: The notice the costs associated with closed of a major disaster for the State of SUMMARY: captioning similar programming. This notice amends the notice Michigan, is hereby amended to include of a major disaster for the State of Ohio • Obstacles to the development of the following area among those areas video description have been the limited (FEMA–1122–DR), dated June 24, 1996, determined to have been adversely and related determinations. availability of SAP channels, the use of affected by the catastrophe declared a SAP channels for other audio tracks, major disaster by the President in his EFFECTIVE DATE: August 2, 1996. including non-English language declaration of July 23, 1996: FOR FURTHER INFORMATION CONTACT: programming, limited funding by Midland County for Public Assistance and Pauline C. Campbell, Response and government and other sources and Hazard Mitigation. Recovery Directorate, Federal unresolved copyright issues related to (Catalog of Federal Domestic Assistance No. Emergency Management Agency, the creation of a second script. Washington, DC 20472, (202) 646–3606. • 83.516, Disaster Assistance) The Commission will continue to SUPPLEMENTARY INFORMATION: The notice monitor the deployment of video William C. Tidball, Associate Director, Response and Recovery of a major disaster for the State of Ohio, description and the development of is hereby amended to include the standards for new video technologies Directorate. [FR Doc. 96–20721 Filed 8–13–96; 8:45 am] following areas among those areas that will afford greater accessibility of determined to have been adversely video description. Specifically, the BILLING CODE 6718±02±P affected by the catastrophe declared a Commission will seek additional major disaster by the President in his information that will permit a better declaration of June 24, 1996: assessment of video description in [FEMA±1127±DR] conjunction with its 1997 report to Hocking and Vinton Counties for Public North Carolina; Amendment to Notice Assistance and Hazard Mitigation. Congress assessing competition in the of a Major Disaster Declaration video market place that is required by (Catalog of Federal Domestic Assistance No. Section 628(g) of the Communications AGENCY: Federal Emergency 83.516, Disaster Assistance.) Act. Management Agency (FEMA). Dennis H. Kwiatkowski, ACTION: Notice. Deputy Associate Director, Response and Ordering Clauses Recovery Directorate. 6. This Report is issued pursuant to SUMMARY: This notice amends the notice [FR Doc. 96–20741 Filed 8–13–96; 8:45 am] authority contained in Sections 4(i), 4(j), of a major disaster for the State of North BILLING CODE 6718±02±P Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices 42251

FEDERAL MARITIME COMMISSION nonbanking company can ‘‘reasonably Oklahoma National Bank of Duncan, be expected to produce benefits to the Duncan, Oklahoma. Ocean Freight Forwarder License public, such as greater convenience, 2. Chester Bancorp, Inc., Chester, Applicants increased competition, or gains in Illinois; to become a bank holding company by acquiring 100 percent of Notice is hereby given that the efficiency, that outweigh possible the voting shares of Chester National following applicants have filed with the adverse effects, such as undue Bank, Chester, Illinois, a proposed de Federal Maritime Commission concentration of resources, decreased or novo bank and successor to the applications for licenses as ocean freight unfair competition, conflicts of conversion of Chester Savings Bank, forwarders pursuant to section 19 of the interests, or unsound banking practices’’ FSB, Chester, Illinois, and Chester Shipping Act of 1984 (46 U.S.C. app. (12 U.S.C. 1843). Any request for National Bank of Missouri, Perryville, 1718 and 46 CFR 510). a hearing must be accompanied by a Persons knowing of any reason why statement of the reasons a written Missouri, a proposed de novo bank that any of the following applicants should presentation would not suffice in lieu of will purchase the assets and assume the liabilities of Chester Savings Bank, FSB, not receive a license are requested to a hearing, identifying specifically any Perryville, Missouri. contact the Office of Freight Forwarders, questions of fact that are in dispute, summarizing the evidence that would 3. First Commercial Corporation, Federal Maritime Commission, Little Rock, Arkansas; to acquire 50 Washington, D.C. 20573. be presented at a hearing, and indicating how the party commenting would be percent of the voting shares of The Ian International, Inc., 7466 New Ridge Oklahoma National Bank of Duncan, Road, Hanover, MD 21076, Officer: aggrieved by approval of the proposal. Unless otherwise noted, nonbanking Duncan, Oklahoma. Glenn L. Lobas, President 4. TRH Oklahoma, Inc., Norman, South East Forwarding, Inc., d/b/a/ activities will be conducted throughout the United States. Oklahoma; to become a bank holding SEFF, Inc., 3252 Village Green Drive, company by acquiring 100 percent of Miami, FL 33175, Officers: Lorraine S. Unless otherwise noted, comments regarding each of these applications the voting shares of The Oklahoma Lowd, President/Secretary, George L. National Bank of Duncan, Duncan, Lowd, Jr., Vice President/Treasurer must be received at the Reserve Bank indicated or the offices of the Board of Oklahoma. D. Federal Reserve Bank of Dallas Dated: August 8, 1996. Governors not later than September 6, (Genie D. Short, Vice President) 2200 Joseph C. Polking, 1996. North Pearl Street, Dallas, Texas 75201- Secretary. A. Federal Reserve Bank of Atlanta [FR Doc. 96–20682 Filed 8–13–96; 8:45 am] 2272: (Zane R. Kelley, Vice President) 104 1. Rotan Bancshares, Inc., Rotan, BILLING CODE 6730±01±M Marietta Street, N.W., Atlanta, Georgia Texas; and Rotan Delaware Bancshares, 30303: Inc., Dover, Delaware, to become bank 1. Whitney Holding Corporation, New holding companies by acquiring 100 FEDERAL RESERVE SYSTEM Orleans, Louisiana; to merge with percent of the voting shares of First Liberty Holding Company, Pensacola, Formations of, Acquisitions by, and National Bank, Rotan, Texas, a de novo Florida, and thereby indirectly acquire bank. Mergers of Bank Holding Companies Liberty Bank, Pensacola, Florida. 2. Whitney Holding Corporation, New Board of Governors of the Federal Reserve The companies listed in this notice System, August 8, 1996. Orleans, Louisiana; to acquire 100 have applied to the Board for approval, Jennifer J. Johnson, pursuant to the Bank Holding Company percent of the voting shares of Whitney Deputy Secretary of the Board. Act of 1956 (12 U.S.C. 1841 et seq.) National Bank of Florida, Pensacola, (BHC Act), Regulation Y (12 CFR Part Florida, a de novo national bank. [FR Doc. 96–20677 Filed 8-13-96; 8:45 am] 225), and all other applicable statutes B. Federal Reserve Bank of Cleveland BILLING CODE 6210-01-F and regulations to become a bank (R. Chris Moore, Senior Vice President) 1455 East Sixth Street, Cleveland, Ohio holding company and/or to acquire the Notice of Proposals to Engage in assets or the ownership of, control of, or 44101: 1. Classic Bancshares, Inc., Ashland, Permissible Nonbanking Activities or the power to vote shares of a bank or to Acquire Companies that are bank holding company and all of the Kentucky; to become a bank holding company by acquiring 100 percent of Engaged in Permissible Nonbanking banks and nonbanking companies Activities owned by the bank holding company, the voting shares of First Paintsville including the companies listed below. Bancshares, Inc., Paintsville, Kentucky, The companies listed in this notice The applications listed below, as well and thereby indirectly acquire First have given notice under section 4 of the as other related filings required by the National Bank of Paintsville, Paintsville, Bank Holding Company Act (12 U.S.C. Board, are available for immediate Kentucky. 1843) (BHC Act) and Regulation inspection at the Federal Reserve Bank In connection with this application, Y, (12 CFR Part 225) to engage de novo, indicated. Once the application has Classic Bancshares, Inc., also has or to acquire or control voting securities been accepted for processing, it will also applied to retain 100 percent of the or assets of a company that engages be available for inspection at the offices voting shares of Ashland Federal either directly or through a subsidiary or of the Board of Governors. Interested Savings Bank, Ashland, Kentucky, and other company, in a nonbanking activity persons may express their views in thereby engage in permissible savings that is listed in § 225.25 of Regulation writing on the standards enumerated in association activities pursuant to § Y (12 CFR 225.25) or that the Board has the BHC Act (12 U.S.C. 1842(c)). If the 225.25(b)(9) of the Board’s Regulation Y. determined by Order to be closely proposal also involves the acquisition of C. Federal Reserve Bank of St. Louis related to banking and permissible for a nonbanking company, the review also (Randall C. Sumner, Vice President) 411 bank holding companies. Unless includes whether the acquisition of the Locust Street, St. Louis, Missouri 63166: otherwise noted, these activities will be nonbanking company complies with the 1. Arvest Bank Group, Inc., conducted throughout the United States. standards in section 4 of the BHC Act, Bentonville, Arkansas; to acquire 50 Each notice is available for inspection including whether the acquisition of the percent of the voting shares of The at the Federal Reserve Bank indicated. 42252 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices

Once the notice has been accepted for Board of Governors of the Federal Reserve the Proposed Action, with the processing, it will also be available for System, August 8, 1996. remaining portion being used for surface inspection at the offices of the Board of Jennifer J. Johnson parking in anticipation of future Governors. Interested persons may Deputy Secretary of the Board expansion to meet the United States express their views in writing on the [FR Doc. 96–20678 Filed 8-13-96; 8:45 am] District Court’s proposed long-range question whether the proposal complies BILLING CODE 6210-01-F space requirements. Under this with the standards of section 4 of the alternative, both 5th and 6th Avenues BHC Act, including whether between Washington and Jefferson consummation of the proposal can GENERAL SERVICES Streets would be closed to vehicular ‘‘reasonably be expected to produce ADMINISTRATION traffic and much of the abandoned benefits to the public, such as greater roadway area included into the GSA- convenience, increased competition, or Public Buildings Service; Record of proposed development area. gains in efficiency, that outweigh Decision; Federal BuildingÐUnited Alternative 2 (‘‘The 5th Avenue possible adverse effects, such as undue States Courthouse, Phoenix, Arizona Alternative’’) concentration of resources, decreased or The United States General Services The proposed site under this unfair competition, conflicts of Administration (GSA) announces its alternative would be the same as for the interests, or unsound banking practices’’ decision, in accordance with the Proposed Action. The site is bound by (12 U.S.C. 1843). Any request for a National Environmental Policy Act Washington Street (north), 4th Avenue hearing on this question must be (NEPA) and the Regulations issued by (east), Jefferson Street (south), and 6th accompanied by a statement of the the Council on Environmental Quality, Avenue (west). The difference between reasons a written presentation would November 29, 1978, to construct a new this alternative and Proposed Action is not suffice in lieu of a hearing, Federal Building—United States the closure of project area roadways. identifying specifically any questions of Courthouse (FB–CT) in Phoenix, Under this alternative, 5th Avenue fact that are in dispute, summarizing the Arizona. would be closed and utilized as part of evidence that would be presented at a The new FB–CT would consist of the project site, while 6th Avenue hearing, and indicating how the party approximately 515,000 gross square feet would remain open to through traffic. (GSF) of building space and 380 parking commenting would be aggrieved by Alternative 3 (‘‘The Alternative Site’’) approval of the proposal. spaces (totaling 40,800 GSF). The This alternative proposes developing Unless otherwise noted, comments project, designed to relieve overcrowded conditions at the existing court facilities 4.5 acres of a 8.5 acre site bounded by regarding the applications must be in Phoenix, is to be sited within the West Woodland Avenue (north), 7th received at the Reserve Bank indicated Central Business Area (CBA) of the City Avenue (east), West Adams Street or the offices of the Board of Governors of Phoenix, Arizona and is anticipated (south) and 9th Avenue (east). Portions not later than August 28, 1996. to be ready for occupancy in the year of this property are owned by the A. Federal Reserve Bank of Chicago 2000. The federal agencies proposed to Monroe School Association, Phoenix (James A. Bluemle, Vice President) 230 utilize the new FB–CT are currently Automatic Machine Products, and by South LaSalle Street, Chicago, Illinois housed within the existing Phoenix FB– several private individuals. Site 60690: CT, located at 230 1st Avenue, and in improvements currently include an 1. BancSecurity Corporation, leased commercial space in the Phoenix abandoned 3-story building (Grace Marshalltown, Iowa; to acquire area. An objective of this project is to Court School), two abandoned single- Marshalltown Financial Corporation, consolidate these federal agencies into a story auxiliary school buildings, four Marshalltown, Iowa, and thereby single structure within the City’s CBA. single-family residences, an abandoned indirectly acquire Marshalltown Savings The consolidation would promote commercial building, and an auto parts store. This site is listed on the National Bank, FSB, Marshalltown, Iowa, and efficiency in operations for agencies Register of Historic Places (NHRP) as engage in operating a savings housed within several downtown part of the Woodland Historic District. association pursuant to § 225.25(b)(9) of locations. The three onsite school buildings and the Board’s Regulation Y. Alternatives Considered four residences are considered 2. Capitol Bankshares, Inc., Madison, The GSA has considered a range of contributors to the district, while the Wisconsin; to engage de novo through alternatives that could feasibly attain commercial structures are considered its subsidiary Capitol Mortgage the objectives of the proposed project. noncontributors. Corporation, Madison, Wisconsin, in NEPA does not require that an agency No Action Alternative making and servicing loans pursuant to consider every possibility, but requires § 225.25(b)(1) of the Board’s Regulation that the range of alternatives be NEPA Section 1502.14(d) requires an Y. comprehensive, so that the agency can alternative of No Action be included in the Environmental Impact Statement C. Federal Reserve Bank of make a ‘‘reasoned choice’’ among them. (EIS) analysis. The ‘‘No Action’’ Minneapolis (James M. Lyon, Vice Alternatives considered are as follows: Alternative would preclude President) 250 Marquette Avenue, Alternative 1 (‘‘The Proposed Action’’) development of the Phoenix FB–CT on Minneapolis, Minnesota 55480: The proposed project site to be any of the proposed project sites, 1. St. Clair Agency, Inc., St. Clair, donated to the federal government by therefore, property used for the project Minnesota; to retain Clarice Germo the City of Phoenix encompasses two would be retained by the current Agency, St. Clair, Minnesota, and city blocks and has an area of owners. Under this alternative, U.S. thereby engage in general insurance approximately 4.5 acres. The project site Court and executive agencies and agency activities in a place with a is bound by Washington Street (north), Congressional offices would continue to population not exceeding 5,000 4th Avenue (east), Jefferson Street be housed in the existing Phoenix FB– pursuant to § 225.25(b)(8)(iii)(A) of the (south), and 6th Avenue (west). Only a CT at 230 North 1st Avenue and at Board’s Regulation Y. portion of this site would be utilized for various leased locations in Phoenix. The Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices 42253 projected increase in federal presence in Proposed Action. However, project emissions, meteorology and resulting the Phoenix area is not contingent on implementation is not anticipated to CO concentrations in each grid square. the construction of the proposed project, significantly affect this species. No other Since regional modeling is not therefore, the rate of growth in federal rare, threatened, or endangered species conducted for project-level analysis, this employment levels in both the judicial occur in the area. data is not available as input to the and executive branches is projected to Mitigation Measures: None required. intersection modeling. occur regardless of whether the Air Quality. Short-term emissions Because regional attainment analysis proposed building is constructed. associated with construction activities uses actual meteorology and background would not exceed Clean Air Act CO concentrations for the grid square in Alternatives Examined But Not thresholds and would be less than which the intersection is located, Considered in the EIS significant. Long-term emissions of regional attainment analysis is expected In addition to the alternatives volatile organic compounds (VOC) and to more realistically represent future described above, several options were carbon monoxide (CO) associated with conditions. Project-level analysis is considered to fulfill the needs of the vehicle trips and onsite energy expected to produce higher CO U.S. District Courts. These included the consumption would not exceed the 100 concentrations because receptors are examination of several alternative sites tons per year significance thresholds much closer to the intersection, and beyond those considered within the EIS, and are, therefore, considered less than worst-case meteorology and background the acquisition of Base Realignment and significant. Project vehicle trips would, CO concentrations are used in the Closure Act properties, Resolution Trust however, result in exceedances of the 8- analysis. Worst-case meteorology Corporation (RTC) properties, the hour Federal CO standard at several includes using a wind direction that potential leasing of building space, and project analyzed intersections. blows emissions directly by at each the expansion of the existing FB–CT. Exceedances are predicted to occur receptor. These alternatives were eliminated from immediately adjacent to congested Modeling conducted for the proposed further consideration due to a number of intersections, even if the project is not project should be considered as a reasons, including but not limited to: implemented. These exceedances screening method to identify problem fiscal cost, remote location, appear inconsistent with the Maricopa intersections and not refuting the nonconforming lot configuration, and/or Association of Governments (MAG) attainment demonstration of MAG’s CO deficiencies in security and court Carbon Monoxide Plan (MAG 1993, Plan. Over-prediction of exceedances operations. 1994), which predicts regional provides a margin of safety such that all attainment of the standard by 1995. Impacts/Mitigation Measures potential impacts are identified and However, the focus of project-level mitigated. The proposed construction of the FB– analysis is purposely different from Mitigation Measures: Although short- CT at the site of the Proposed Action regional attainment analysis. Project- term air quality impacts are considered would result in several significant level analysis is designed to detect local less than significant, the following environmental impacts. These impacts associated with increasing mitigation measures will be significant adverse impacts will be traffic volumes, changing traffic implemented by GSA to further reduce reduced through incorporation of the distribution pattern and reducing impacts. following proposed mitigation distances of receptors to congested • A construction traffic management measures. intersections. The focus of regional plan will be developed to: Geology and Landforms. Project attainment analysis is to identify areas construction at the site of the Proposed in violation of the standard, determine —Restrict construction activities that Action would have the potential to the effect of control strategies and to significantly affect traffic flow to off- cause short-term soil instability erosion. determine population exposure. peak hours (7 p.m. to 6 a.m. and 10 Potential long-term geologic impacts However, both analyses utilize the a.m. to 3 p.m.). include the potential for subsidence and intersection model CAL3QHC. —Route construction trips to avoid soil expansion. A guidance document developed by congested streets. Mitigation Measures: These impacts the U.S. Environmental Protection —Provide dedicated turn lanes for would be mitigated through Agency titled ‘‘Guideline for Modeling movement of construction equipment implementation of a stormwater Carbon Monoxide from Roadway onsite and offsite. pollution prevention plan, as well as Intersections’’ (1992) provides distinctly • Electrical power for construction compliance with the requirements of the different guidance for the two types of activities will be obtained from power City of Phoenix Grading and Drainage analysis. The primary differences in this poles instead of electrical generators Ordinance and a site-specific guidance are the use of receptors (when feasible). geotechnical investigation to be immediately adjacent to congested • Methanol of natural gas will be conducted prior to construction. intersections and worst-case used for mobile construction equipment Surface Hydrology. Offside movement meteorological default values for instead of diesel (when feasible). of disturbed soils during construction at project-level analysis. Regional • Active portions of the project site the site may result in short-term attainment analysis is required to use will be watered as needed to prevent deposition in area storms drains. No existing air quality monitoring stations excessive fugitive dust. long-term impacts to area drainage are as receptors since attainment is based • Non-toxic soil stabilizers will be anticipated. upon concentrations measured at these applied to graded areas inactive for 10 Mitigation Measures: Construction- stations. Regional attainment analysis is days or more. related impacts would be mitigated by also required to use actual • Excavation and grading will be development of a stormwater pollution meteorological data and background CO suspended when the wind speed (as prevention plan. concentrations obtained from regional instantaneous gusts) exceeds 25 miles Vegetation and Wildlife. The Mexican modeling (i.e.: Urban Airshed Model). per hour. free-tailed bat, a Department of Forestry Regional modeling is complex, • Trucks transporting earth material special status species, has been involving dividing the non-attainment offsite will be covered or maintain at documented in the vicinity of the area into grid squares and estimating least 2 feet of freeboard.– 42254 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices

• Paved streets adjacent to the contamination of both onsite soils and the Native American Graves Protection construction site will be swept as groundwater exist at the site of the and Repatriation Act. needed to remove dust and silt that may Proposed Action. Because of these Public Utilities have accumulated as a result of findings, some level of environmental construction activities. remediation will be required; however, Gas and Electric. Short-term service • All construction requiring heavy implementation of these interruption impacts associated with equipment will be curtailed during recommendations mitigate any impacts. extension of electric and natural gas ozone alerts (e.g. hourly ozone Long-term operation of the new FB–CT systems could occur, but are considered concentrations which exceed 0.20 ppm). is not expected to contribute to any insignificant due to their temporary GSA will insure that the following ground water contamination problems nature. The local electricity and natural measures are implemented to reduce in the area.– gas distribution networks can serve the long-term air quality impacts associated Mitigation Measures: GSA will adhere proposed FB–CT. Project design would with the FB–CT project: to and implement the recommendations be in accordance with applicable energy • GSA will develop a transportation of the Phase II Environmental Site conservation codes. Thus, electricity management plan which will include: Assessment. and natural gas service impacts are —Providing carpool matching services Land Use, Socioeconomics and Visual considered less than significant. and preferential parking spaces for Resources. The height of the proposed Mitigation Measures: None required. carpool vehicles. federal courthouse may be greater than Solid Waste. Short- and long-term —Offering alternative work hours and that allowed by City of Phoenix land use impacts to solid waste collection and alternative work weeks (i.e. 9 days/80 policy. Such impacts would be reduced disposal service would be less than through compliance with City of hours, 4 days/40 hours, etc.). significant and would be further Phoenix design policies and —Providing teleconferencing facilities. reduced through implementation of the incorporation of site amenities. Project recommended waste reduction Noise. Project implementation at the implementation would have the measures. site of the Proposed Action could result beneficial effects of generating short- Mitigation Measures: None required. in short-term noise and vibration term construction jobs and retaining Water and Sewer. Short-term impacts from construction activities. federal employment opportunities in the interruptions to water or sewer service, Long-term impacts associated with the downtown area. No significant adverse if any, are anticipated to be less than Proposed Action would be less than impacts to the local housing or real significant. Water demand and significant and would be further estate markets are anticipated with wastewater flow created by project reduced through implementation of implementation of the Proposed Action. operation would not significantly affect appropriate design guidelines. Mitigation Measures: None required. local water supply or water/wastewater Mitigation Measures: Although the Cultural Resources. The Proposed systems. Water and wastewater impacts following mitigation measures would Action would not result in any impacts are, therefore, considered less than reduce short-term noise impacts, it is to standing historic structures, as no significant. anticipated that noise levels would such resources would be destroyed, Mitigation Measures: None required. remain above significance threshold damaged, altered, or impacted in any levels, and therefore, significant and way. Two prehistoric Hohokam sites, Microwave Communication unavoidable. To reduce impacts from Pueblo Patricia and La Villa, have been Microwave communication services nonpile driver construction noise, the recorded near the site of the Proposed could be affected within the downtown GSA will implement the following: Action. The Pueblo Patricia site is area due to the construction of the • Schedule operations to coincide approximately four blocks from the Proposed Action. Both the County of with periods when people would least proposed site, while the La Villa Site is Maricopa and KSAZ–TV have expressed likely be affected; less than two blocks from the site. In concern regarding the proposed • Muffle and shield construction addition, the proposed project site was project’s impact to the integrity of their equipment intakes and exhausts; part of the Original Townsite of microwave signals. Impacts would, • Shroud or shield impact tools such Phoenix. Consequently, there is a high however, be reduced to a less than as jackhammers and use electric- probability that prehistoric and historic significant level through relocation of powered rather than diesel-powered cultural resources are present onsite, the microwave path. GSA has been construction equipment as feasible; including the possibility of human informed by KSAZ–TV that they intend • Utilize portable noise barriers remains. GSA will consult with the to construct a new 150-foot tall tower so within the area of equipment areas and Arizona State Historic Preservation that its microwave signal will not be around stationary noise source such as Office, City of Phoenix, and Advisory compromised by the construction of compressors; and Council on Historic Preservation to mid-rise buildings in the Governmental • Locate stationary equipment in pit develop a Memorandum of Agreement Mall area. areas or excavated areas as such siting which will outline procedures to be Mitigation Measures: None required. would create noise barriers. adhered to as GSA pursues a data Public Services. Project Natural or Depletable Resources. recovery program to mitigate potential implementation would not be expected Project implementation would not impacts. to generate a significant increase in substantially impact available energy Mitigation Measures: GSA will work police service calls or affect Phoenix supplies or affect access to any natural with the Arizona State Historic Police Department response times. resources. Therefore, impacts to natural Preservation Office, City of Phoenix, Although building height might and depletable resources would be less Advisory Council on Historic complicate fire protection services, the than significant. Preservation, and affected Native Phoenix Fire Department is equipped to Mitigation Measures: None required. American organizations to insure that serve high rise structures. Project Public Health and Safety. The testing any prehistoric and/or historic cultural implementation would not substantially portion of a Phase II Environmental Site resources identified onsite are recovered affect emergency response times and Assessment has recently been and stored in accordance with the building design is expected to comply completed and has determined that National Historic Preservation Act and with applicable building and fire codes. Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices 42255

Public service impacts are, therefore, length which results in the lowest As stated previously, however, the considered less than significant. average delay for vehicles being served above mitigation measures will not be Mitigation Measures: None required. by the intersection. In the case of the sufficient to improve the 3rd/Jefferson Transportation and Parking. In the individual intersection of Jefferson intersection to an acceptable Level of EIS, traffic growth was estimated using Street and Third Avenue, GSA believes Service. a two percent annual growth rate. This that the optimum signal cycle length in growth rate was applied to the existing the future analysis years would be Significant Unavoidable Impacts traffic counts to estimate future within the range of 95 to 100 seconds. The following impacts associated background traffic conditions. In The result of not being able to use the with the Proposed Action are addition, eight projects in the signal cycle time in an efficient manner considered significant and unavoidable: Downtown area were identified by City at the Jefferson/Third Avenue • Development of the project would of Phoenix staff and included in the intersection is an afternoon peak hour result in an increase in long-term evaluation of cumulative traffic growth. Level of Service ‘‘F’’ for both the 2000 pollutant emissions within the project These projects include: Arizona and 2010 forecast years with the area, thus exacerbating the existing Museum of Science and Technology, Proposed Action project scenario. inability of the air basin to attain the Phoenix Museum of History, Heritage Future service levels for the national standards for ozone, carbon and Science Parking Garage, Downtown Washington/Third Avenue intersection monoxide, and PM–10. Phoenix Transit Center, Maricopa were found to be ‘‘C’’ or better. The • Construction activities would result County Office Complex, City of Phoenix analysis assumes that GSA will provide in short-term noise increases in excess Office Development, the Baseball a double left turn at the eastbound of acceptable levels. Stadium, and the Parking Facility Jefferson Street approach to Third • The project will result in an located between 6th and 7th Avenues Avenue and at the northbound Third afternoon peak hour Level of Service F and between Washington and Jefferson Avenue approach to Washington Street. at the Jefferson/Third Avenue Streets. Mitigation opportunities provided intersection. The sum of existing traffic volumes, within the EIS would not be not The General Services Administration growth in existing traffic volumes due to sufficient to improve the future traffic believes that there are no additional general background development service level to ‘‘D’’ or better with the outstanding issues to be resolved with occurring in the area by the year 2000 Proposed Action scenario (the City of respect to the proposed project. (for one scenario) and year 2010 (for a Phoenix considers LOS D the limit of Additional information regarding the second scenario), and incremental tolerable traffic congestion during peak new Federal Building—United States traffic increases related to the eight traffic periods). Courthouse—may be directed to Mr. specific development projects identified Mitigation Measures: Short-term Alan Campbell, Portfolio Management in the study area represents projected impacts in the project area (during Division (9PT), U.S. General Services year 2000 and year 2010 traffic construction) would be reduced through Administration, 450 Golden Gate conditions without the proposed implementation of the following Avenue, San Francisco, CA 94102, (415) courthouse project. The year 2000 and mitigation measures: 522–3491. year 2010 analyses presented in the EIS • Heavy construction equipment such Dated: August 6, 1996. assumes recommended mitigation as bulldozers and large loaders would measures are incorporated. No be moved onsite prior to construction Kenn N. Kojima, assumptions have been made regarding and realignment activities and remain Regional Administrator (9A). responsibility for implementation of the until the equipment is no longer [FR Doc. 96–20667 Filed 8–13–96; 8:45 am] recommended mitigation measures. The needed; BILLING CODE 6820±23±M LOS levels contained in the EIS • Some minor disruption of traffic represent operating conditions in year flows would occur at this time; 2000 and year 2010 with necessary however, the short duration of activity DEPARTMENT OF HEALTH AND improvements in place. would minimize impacts; HUMAN SERVICES Because project implementation • Movement of construction vehicles would affect the closure of both 5th and and equipment onto and off of the site Agency for Toxic Substances and 6th Avenues between Washington and would be scheduled in a manner that Disease Registry Jefferson Streets, the project would would avoid the peak traffic periods on [ATSDR±107] generate a substantial increase in the adjacent street network; afternoon peak hour traffic at the • Construction employees traveling to Policy on Government-to-Government intersections of 3rd/Jefferson and 3rd/ and from the site on a daily basis will Relations With Native American Tribal Washington, resulting in an be scheduled to occur prior to the Governments unacceptable level of service for the morning and evening traffic peak. 3rd/Jefferson intersection and therefore Long-term impacts would be reduced AGENCY: Agency for Toxic Substances an unavoidable significant impact. through implementation of the and Disease Registry (ATSDR), Existing signal cycle lengths are fixed following mitigation measures: Department of Health and Human at 60 seconds for the inter-connected • GSA will develop a transportation Services (HHS). signal system along Jefferson and management plan which would reduce ACTION: Notice. Washington. The setting of signal cycle impacts to the local circulation system lengths are influenced by a number of by reducing the number of new motor SUMMARY: This notice announces the factors. The magnitude and distribution vehicle trips generated by the project. final ATSDR policy on conducting of peak period traffic flows at the • GSA will work with the City to government-to-government individual intersection approaches and provide a double left turn at the relationships with federally recognized the signal phases required to eastbound Jefferson Street approach to tribal governments. The draft policy was accommodate the various traffic Third Avenue and at the northbound published for public comment in the movements contribute to the Third Avenue approach to Washington Federal Register on August 1, 1995 [60 determination of the optimum cycle Street. FR 39176]. The public comment period 42256 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices ended August 31, 1995. Comments were decisions, or implements programs that Immunodeficiency Virus (HIV) received from 5 individuals may affect tribes; and Antibody or HIV Antigen (0920–0329). representing tribal governments and • Establish procedures to work In 1987, the President directed the intertribal councils. This document directly and effectively with tribal Department of Health and Human reflects finalization of the ATSDR policy governments. Services (DHHS) to determine the after consideration of those comments. (2) The needs and culture of nationwide incidence of, to predict the FOR FURTHER INFORMATION CONTACT: individual tribal governments; future of, and to determine the extent to (3) ATSDR’s prior and ongoing Dr. Mark M. Bashor, Associate which human immunodeficiency virus experience with tribal governments, and Administrator for Federal Programs, (HIV) is present in various segments of recognized organizations associated Office of Federal Programs, Agency for our population. In response, CDC with such governments; and formed an epidemiologic team to Toxic Substances and Disease Registry, (4) The need to enhance coordination summarize existing information. An 1600 Clifton Road, NE., Mailstop E–28, with other agencies with related areas of extensive review of published and Atlanta, Georgia 30333, telephone (404) responsibility. 639–0730. unpublished data led to the conclusion Dated: August 8, 1996. SUPPLEMENTARY INFORMATION: The that even though there is information Agency for Toxic Substances and Claire V. Broome, suggesting a very large number of Disease Registry issues the following Deputy Administrator, Agency for Toxic Americans were infected, there was no policy statement related to its Substances and Disease Registry. substitute for carefully and scientifically Government-to-Government Relations [FR Doc. 96–20702 Filed 8–13–96; 8:45 am] obtained incidence and prevalence data. with Native American Tribal BILLING CODE 4163±70±P The need to monitor HIV seroprevalence Governments: existed on the national and at the state The mission of ATSDR is to prevent and local levels for public health exposure and adverse human health Centers for Disease Control and management: targeting and evaluating Prevention effects and diminished quality of life prevention programs, planning future associated with exposure to hazardous [INFO±96±22] health care needs and determining substances from waste sites, unplanned health policy. Proposed Data Collections Submitted releases, and other sources of pollution On a national basis, HIV for Public Comment and present in the environment. In carrying seroprevalence projects in 1987 Recommendations out its programs, ATSDR works with consisted of monitoring the HIV status other Federal, State, and local In compliance with the requirement of: Civilian applicants for military government agencies, and tribal of Section 3506(c)(2)(A) of the service; blood donors, including follow- organizations to protect public health. Paperwork Reduction Act of 1995 for up risk factor evaluation in The U.S. Government has a unique opportunity for public comment on seropositives; and Job Corps entrants. government-to-government relationship proposed data collection projects, the HIV prevalence was studied in settings with tribal governments as established Centers for Disease Control and of special public health interest by the U.S. Constitution, by treaties, by Prevention (CDC) will publish periodic including selected colleges and prisons, statute, by court decisions, and by summaries of proposed projects. To among health care workers in hospital Executive Orders. This relationship request more information on the emergency rooms and among Native respects the U.S. Government’s trust proposed projects or to obtain a copy of Americans and homeless persons. Other responsibility to American Indians and the data collection plans and national data sources were examined, Alaskan Natives and their rights of self- instruments, call the CDC Reports such as cohort studies of groups at risk, government because of their sovereign Clearance Officer on (404) 639–7090. including homosexual and bisexual men status. ATSDR is strongly committed to Comments are invited on: (a) Whether and IV drug users, providing building a more effective day-to-day the proposed collection of information information on knowledge of AIDS and working relationship with tribal is necessary for the proper performance risk behaviors, changes in behavior, and governments. of the functions of the agency, including incidence of HIV infection. In fulfilling the commitment to whether the information shall have In 1987, OMB approved the ‘‘Family establish and maintain government-to- practical utility; (b) the accuracy of the of HIV Seroprevalence Surveys’’ (0920– government relations with federally agency’s estimate of the burden of the 0232). These surveys included seven recognized tribal governments, ATSDR proposed collection of information; (c) seroprevalence surveys which involved will be guided by: ways to enhance the quality, utility, and interaction with individuals (non- (1) Section 126 of the Comprehensive clarity of the information to be blinded surveys). One of these surveys Environmental Response, collected; and (d) ways to minimize the was the surveillance and evaluation of Compensation, and Liability Act burden of the collection of information blood donors positive for Human (CERCLA) and the principles set forth in on respondents, including through the Immunodeficiency Virus (HIV) the President’s ‘‘Memorandum for the use of automated collection techniques Antibody. Heads of Executive Departments and for other forms of information Agencies Regarding: Government-to- technology. Send comments to Wilma In 1993, OMB again approved for 3 Government Relations with Native Johnson, CDC Reports Clearance Officer, years the surveillance and evaluation of American Tribal Governments’’ (April 1600 Clifton Road, MS–D24, Atlanta, blood donors who test positive for 29, 1994). In particular, ATSDR will: GA 30333. Written comments should be Human Immunodeficiency Virus (HIV) • In a manner consistent with the received within 60 days of this notice. Antibody and their needle-sharing and protection of public health, consult with sexual partners (0920–0329). This tribal governments to ensure that tribal Proposed Projects request is for an additional 3-year rights and concerns are considered 1. Surveillance and Evaluation of approval. The total cost to respondents before ATSDR takes actions, makes Blood Donors Positive for Human is estimated at $3,784. Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices 42257

Aver- No. of age No. of re- bur- Total Respondents re- sponses/ den/re- burden spond- respond- sponse (in ents ent (in hrs.) hrs.)

Blood donors (interviews) ...... 160 1 1.0 160 Blood donors (refuse interview) ...... 120 1 0.1 12

Total ...... 172

Dated: August 8, 1996. lice infestation in salmon net-pens and requires the increase of third party Wilma G. Johnson, of the impacts of regulation by multiple resources to improve program Acting Associate Director for Policy Planning government entities on treatment and efficiencies and reduce Medicaid and Evaluation, Centers for Disease Control control of the disease. expenditures; Frequency: On occasion; and Prevention (CDC). Dated: August 7, 1996. Affected Public: Federal Government and State, local, or tribal government; [FR Doc. 96–20703 Filed 8–13–96; 8:45 am] William K. Hubbard. BILLING CODE 4163±18±P Number of Respondents: Varies; Total Associate Commissioner for Policy Annual Responses: Varies; Total Annual Coordination. Hours: 171,165. Food and Drug Administration [FR Doc. 96–20752 Filed 8–13–96; 8:45 am] 2. HCFA–R–188—Type of Information BILLING CODE 4160±01±F Collection Request: New collection; Jurisdiction of Sea Lice Treatment and Title of Information Collection: Control; Notice of Public Workshop Federally Qualified Health Center Health Care Financing Administration (FQHC) Survey; Form No.: HCFA–R– AGENCY: Food and Drug Administration, HHS. Proposals Submitted for Collection of 188; Use: This survey is needed and will ACTION: Notice of public workshop. Public Comment: Submission for OMB be used by HCFA to evaluate the FQHC Review Medicare benefit. Respondents will be SUMMARY: The Food and Drug all Medicare certified FQHC’s. Administration’s (FDA’s) Center for In compliance with the requirement Frequency: On occasion; Affected Veterinary Medicine is announcing a of section 3506(c)(2)(A) of the Public: Not-for-profit institutions, and Joint Canadian-United States Workshop Paperwork Reduction Act of 1995, the business or other for-profit; Number of on Jurisdiction of Sea Lice Treatment Health Care Financing Administration Respondents: 1,489; Total Annual and Control. The purpose of the (HCFA), Department of Health and Responses: 1,489; Total Annual Hours workshop is to provide a forum for Human Services, has submitted to the Requested: 496. discussion of the impact of various Office of Management and Budget 3. HCFA–R–193—Type of Information government entities within Canada and (OMB) the following proposals for the Collection Request: Existing collection the United States on present and collection of information. Interested in use without an OMB control number; proposed treatment and control persons are invited to send comments Title of Information Collection: An methods of sea lice. Also, scientific regarding this burden estimate or any Important Message from Medicare; Form aspects of sea lice drug treatment and other aspect of this collection of No.: HCFA–R–193; Use: Hospitals control will be discussed. The general information, including any of the participating in the Medicare program sea lice topic is of international concern following subjects: (1) The necessity and have agreed to distribute ‘‘An Important because of the location of salmon net- utility of the proposed information Message from Medicare’’ to beneficiaries pen culture facilities on the border collection for the proper performance of during each admission. Receiving this between the United States and Canada. the agency’s functions; (2) the accuracy information will provide the beneficiary DATES: The public workshop will be of the estimated burden; (3) ways to with some ability to participate and/or held on Monday, September 9, 1996, enhance the quality, utility, and clarity initiate discussions concerning from 8 a.m. to 6:30 p.m. of the information to be collected; and decisions affecting Medicare coverage or ADDRESSES: The public workshop will (4) the use of automated collection payment and about his or her appeal be held at the Doubletree Hotel, 300 techniques or other forms of information rights in response to any hospital’s Army Navy Dr., Crystal City, VA. technology to minimize the information notice to the effect that Medicare will no FOR FURTHER INFORMATION CONTACT: collection burden. longer cover continued care in the Carol J. Haley, Center for Veterinary 1. HCFA–R–107—Type of Request: hospital. Recordkeeping: As needed; Medicine (HFV–152), Food and Drug Extension of a currently approved Affected Public: Individuals or Administration, 7500 Standish Pl., collection; Title of Information Households, Business or other for-profit; Rockville, MD 20855, 301–594–1682. Collection: Medicaid—Determining Not-for-profit institutions, Federal Those persons interested in attending Liability of Third Parties and supporting Government, and State, Local or Tribal the workshop should call the regulation 42 CFR 433.138; Form No.: Government; Number of Respondents: information contact person listed above. HCFA–R–0107; Use: The information 6,700; Total Annual Responses: There is no registration fee for this collected from Medicaid applicants and 11,000,000; Total Annual Hours workshop, but advance registration is recipients as well as from State and Requested: 183,333. required due to space limitations. local agencies is necessary to determine 4. HCFA–R–194—Type of Information SUPPLEMENTARY INFORMATION: The the legal liability of third parties to pay Collection Request: New collection; agenda for the workshop will include for medical services in lieu of Medicaid Title of Information Collection: discussions of scientific aspects of sea payment. Regulation 42 CFR 4333.138 Medicare Disproportionate Share 42258 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices

Adjustment Procedure and Criteria; Dated: August 6, 1996. Subject, city, state Effective Form No.: HCFA–R–194; Use: Edwin J. Glatzel, date Regulation sets up an alternative Director, Management Planning and Analysis process for hospitals that choose to have Staff, Office of Financial and Human COCIVERA, JOHN, HUNTING- Resources. DON VALLEY, PA ...... 08/08/96 their disproportionate share adjustment CONDE, ANA, HIALEAH, FL ..... 08/06/96 statistics calculated based on their cost [FR Doc. 96–20668 Filed 8–13–96; 8:45 am] DAVIDSON, DENISE E., reporting periods rather than the BILLING CODE 4120±03±P OILTON, OK ...... 08/13/96 Federal fiscal year. Frequency: On DAVIDSON, CHORDE W., occasion; Affected Public: Business or OILTON, OK ...... 08/13/96 Office of Inspector General other for-profit, and Not-for-profit DESALVO, WENDY M., PHOE- NIX, AZ ...... 08/11/96 institutions; Number of Respondents: Program Exclusions: July 1996 DRUMHELLER, WILLIAM, HAN- 100; Total Annual Responses: 100; Total OVER, VA ...... 08/12/96 Annual Hours Requested: 100. AGENCY: Office of Inspector General, ESAU, PAUL A., OKLAHOMA 5. HCFA–319—Type of Request: HHS. CITY, OK ...... 08/13/96 GOINS, JUDITH, ERLANGER, Reinstatement, without change, of a ACTION: Notice of program exclusions. KY ...... 08/06/96 previously approved collection for HOECKLE, CATHERINE PAU- which approval has expired; Title of During the month of July 1996, the LETTE, MINNEAPOLIS, MN ... 08/12/96 Information Collection: State Medicaid HHS Office of Inspector General HOFFMAN, JAMES F. JR., Eligibility Quality Control Sample imposed exclusions in the cases set FORT COLLINS, CO ...... 08/13/96 Selection Lists; Form No.: HCFA–319; forth below. When an exclusion is HURLEY, CAROL, AUSTIN, TX 08/13/96 KAREFA-SMART, SUZANNE, Use: The State MEQC sampling list is imposed, no program payment is made to anyone for any items or services CHEVY CHASE, MD ...... 08/11/96 necessary for regional offices to control KARLAVAGE, JOHN J., and track State MEQC reviews. The (other than an emergency item or WATSONTOWN, PA ...... 08/08/96 sample selection lists contain service not provided in a hospital KARSCH, PAUL, BOCA identifying information on Medicaid emergency room) furnished, ordered or RATON, FL ...... 08/08/96 beneficiaries. Frequency: Monthly; prescribed by an excluded party under KEENE, DONALD R., the Medicare, Medicaid, Maternal and HINGHAM, MA ...... 08/13/96 Affected Public: State, local, or tribal Child Health Services Block Grant and KENTUCKY CONVALESCENT government; Number of Respondents: Block Grants to States for Social SUPPLY, CINCINNATI, OH .... 08/06/96 55; Total Annual Hours: 5,280. Services programs. In addition, no KIM, SANG LY, BELLFLOWER, 6. HCFA–856—Type of Information program payment is made to any CA ...... 08/11/96 Collection Request: New Collection; KLUMP, HOWARD, CIN- business or facility, e.g., a hospital, that CINNATI, OH ...... 08/06/96 Title of Information Collection: National submits bills for payment for items or LEALOFI, MALEKO I., KENT, Payer Identifier (PAYER-ID); Form No.: services provided by an excluded party. WA ...... 08/11/96 HCFA–856; Use: The PAYER-ID will Program beneficiaries remain free to LUTHER, ROBERT J., allow payers of health care claims to be decide for themselves whether they will HOLLIDAYSBURG, PA ...... 08/08/96 identified by a unique numeric continue to use the services of an MAKRIDAKIS, NIKOLAOS N., identifier. PAYER-ID numbers will be excluded party even though no program FORT WAYNE, IN ...... 08/12/96 payments will be made for items and MASSEY ANALYTICAL LABS, assigned, but not limited to the INC., BRIDGEPORT, CT ...... 08/13/96 following groups: Medicare, Medicaid, services provided by that excluded MAYORGA, SANDRA, MIAMI, VA, Public Health Service, large party. The exclusions have national FL ...... 08/06/96 employers and unions, HMOs, large effect and also apply to all Executive MCCLENDON, CARROLL insurers, etc.; Frequency: One time Branch procurement and non- LORENE, BLOOMBURG, TX 08/13/96 (reporting); Affected Public: Not for procurement programs and activities. MCMAHON, NONA DYER, MA- NASSAS, VA ...... 08/08/96 profit institutions, business or other for MID ATLANTIC HEALTH PROD- Subject, city, state Effective profit, Federal government, State, local date UCTS, HUNTINGDON VAL- or tribal government; Number of LEY, PA ...... 08/08/96 Respondents: 85,000; Total Annual PROGRAM-RELATED CONVICTIONS MILLS, ROBERT JACKSON, ST Responses: 85,000. Total Annual Hours: SIMONS ISLAND, GA ...... 08/06/96 85,000. AHUMADA, ABELARDO RAMI- MILLS, MARGIE B., ST SIMONS REZ, TUCSON, AZ ...... 08/11/96 ISLAND, GA ...... 08/06/96 To request copies of the proposed AMERICAN HEALTH PROD- MOHAMED, HASAPALL, EAST paperwork collection referenced above, UCTS INC., HUNTINGDON HARTFORD, CT ...... 08/12/96 E-mail your request, including your VALLEY, PA ...... 08/08/96 NORTH AMERICAN HEALTH address, to [email protected], or call ASSOCIATED HEALTH SERV- INDUST, HUNTINGDON VAL- ICES, MANASSAS, VA ...... 08/08/96 LEY, PA ...... 08/08/96 the Reports Clearance Office on (410) BARNES, CARNELL M., PARKE, DOTTY, CANADAIGUA, 786–4193. Written comments and HAWORTH, OK ...... 08/13/96 NY ...... 08/13/96 recommendations for the proposed BEALE STREET PHARMACY, REGESTER, YVONNE, BOCA information collections should be sent HINGHAM, MA ...... 08/13/96 RATON, FL ...... 08/08/96 within 30 days of this notice directly to BENEFICIAL HEALTH PROD- RICHARDS, CAROL E., PORT the OMB Desk Officer designated at the UCTS INC., HUNTINGDON ST LUCIE, FL ...... 08/12/96 VALLEY, PA ...... 08/08/96 following address: OMB Human ROOKS, SCOTT, GREENFIELD, BLANCHARD, LISA R., MIL- OH ...... 08/12/96 Resources and Housing Branch, WAUKEE, WI ...... 08/12/96 SHAW, DOROTHY, BRYAN, TX 08/13/96 Attention: Allison Eydt, New Executive BOYD, JOE T., BIG SPRING, SILVERSON, DANIEL W., Office Building, Room 10235, TX ...... 08/13/96 LEWISTON, ID ...... 08/11/96 Washington, D.C. 20503. BRAMBILA, KRISTINA ROW- TAUBES, HARVEY, GREAT LAND, RODEO, CA ...... 08/11/96 NECK, NY ...... 08/13/96 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices 42259

Effective Effective Effective Subject, city, state date Subject, city, state date Subject, city, state date

TE RONDE, CAROL J., JACK- LICENSE REVOCATION/SUSPENSION/ PETTIGREW, RUTH M., CRAN- SON, WI ...... 08/12/96 SURRENDER STON, RI ...... 08/13/96 TOWNSEND, BERNARD S., QUIMBY, SUSAN A., HOPKINS, SACRAMENTO, CA ...... 08/11/96 AHRENS, SHERRY M., MN ...... 08/12/96 U.S. HEALTH PRODUCTS INC., MARSHALLTOWN, IA ...... 08/12/96 ROSE, SHARON D., EAGLE HUNTINGDON VALLEY, PA 08/08/96 ANDERSON, CHERYLEE JAE, RIVER, AK ...... 08/11/96 UNIVERSAL MEDICAL COM- BURNSVILLE, MN ...... 08/12/96 RYAN, KENNETH J., ALEXAN- PANY INC., HUNTINGDON BAKONIS, WILLIAM L., AM- DRIA, MN ...... 08/12/96 VALLEY, PA ...... 08/08/96 STERDAM, NY ...... 08/13/96 SANTIAGO, PATRICIA A., CHI- VEGA, NORA, HIALEAH, FL ..... 08/06/96 BATES, WILBERT, DENVER, CAGO, IL ...... 08/12/96 WEBER, JAMES K., PITTS- CO ...... 08/13/96 SAPPINGTON, JOHN S., BURGH, PA ...... 08/08/96 BUSSE, VICKI L., ST LOUIS PROVIDENCE, RI ...... 08/13/96 PARK, MN ...... 08/12/96 SCHAFER, KENT LEE, NEW- PATIENT ABUSE/NEGLECT CONVICTIONS CHANCE, DARLENE M., DES PORT NEWS, VA ...... 08/08/96 MOINES, IA ...... 08/12/96 SHANGOLD, MARK, EASTON, BATES, PINKIE L., BIR- COCKS, JAMES ROBERT, CT ...... 08/13/96 MINGHAM, AL ...... 08/06/96 CUSHING, ME ...... 08/13/96 SIAHAAN, EDWARD BRADDOCK, KAREN SUE, COOK, WILLIAM H., STRAT- HALOMOAN, RANCHO ISSAQUAH, WA ...... 08/11/96 FORD, CT ...... 08/13/96 CUCAMONGA, CA ...... 08/11/96 DAILEY, MICHAEL JOSEPH, CROWE, RONNA, DURAND, MI 08/12/96 ST. HILL, GEORGE E., DOUGLAS, AZ ...... 08/11/96 HORTON, DONALD L., COM- PATERSON, NJ ...... 08/13/96 DAY, KELLY R., BRIGHTON, MERCE CITY, CO ...... 08/13/96 STOLOFF, HERBERT, BAN- CO ...... 08/13/96 MAXWELL, VIRGINIA L., BIR- TAM, CT ...... 08/13/96 MINGHAM, AL ...... 08/06/96 ELIAN, GILBERT J., SANTA CLARA, CA ...... 08/11/96 URELIUS, SCOTT N., WATER- PRIMUS, YVETTE, DECATUR, ELSASSER, MARK H., BROOM- LOO, IA ...... 08/12/96 AL ...... 08/06/96 FIELD, CO ...... 08/13/96 VERA, ALFONSO, PUEBLA, ROGERS, BOBBIE, WEST FELICI, SUSAN, WARWICK, RI 08/13/96 MEXICO ...... 08/13/96 BLOCTON, AL ...... 08/06/96 FOSTER, JOSEPHINE A., LAKE WALDROP, NONA D., STORM SAMPSON, GERALDINE CITY, MN ...... 08/12/96 LAKE, IA ...... 08/12/96 OLADOYE, NAPLES, TX ...... 08/13/96 GEER, SHARON R., BLOOM- WOODY, KATHLEEN J., THOMAS, STANLEY K. JR., INGTON, MN ...... 08/12/96 ANKENY, IA ...... 08/12/96 WARREN, MI ...... 08/12/96 GIBSON, ROBERT L., WARD, SABRINA F., MIDWEST LEDYARD, CT ...... 08/13/96 FEDERAL/STATE EXCLUSION/ CITY, OK ...... 08/13/96 HALLIDAY, RONALD K. III, MIN- SUSPENSION NEAPOLIS, MN ...... 08/12/96 CONVICTION FOR HEALTH CARE FRAUD HANING, RAY V., PROVI- HEINE, THOMAS J., GREEN- DENCE, RI ...... 08/13/96 DALE, WI ...... 08/12/96 BELONOS, STELLA E., PROVI- HUYNH, TUAN, ST PAUL, MN 08/12/96 KAUFOLD, ARTHUR S., DENCE, RI ...... 08/13/96 JUSTOFIN, MARK A., WEST BROOKLYN, NY ...... 08/13/96 CARPENTER, DARRELL G., HAZELTON, PA ...... 08/08/96 MASKARON, MICHAEL P., FAIRFIELD, ME ...... 08/13/96 KEITA, MAMADI, WASHING- BROOKLYN, NY ...... 08/13/96 DELIA, FRANK A., BLUE BELL, TON, DC ...... 08/08/96 PAAR, CHERYL L., ONALASKA, PA ...... 08/08/96 LEPLEY, CHARLES R., MOUNT WI ...... 08/12/96 EDGLEY, B. WILLIAM, PORT KISCO, NY ...... 08/13/96 TOWNSEND, WA ...... 08/11/96 LINDELIEN, KRYSTINE A., ST FRAUD/KICKBACKS FARRELL, TAMMY L., WELLS, PAUL, MN ...... 08/12/96 ME ...... 08/13/96 LIPEZKER, AMELIA SUSAN, MILLER, ANNE, BLUE BELL, GARFINKEL, BARRY, MIN- CHICAGO, IL ...... 08/12/96 PA ...... 06/05/96 NEAPOLIS, MN ...... 07/05/96 LIPOFF, DENNIS, NORTH- MILLER, ROBERT, BLUE BELL, LEIGHTON, HUGH M. JR., AU- BROOK, IL ...... 08/12/96 PA ...... 06/05/96 BURN, ME ...... 08/13/96 LOMBARDO, STEPHEN J., TALISMAN, HERBERT L., FORT MCCRILLIS, LISA M., PORT- STATEN ISLAND, NY ...... 08/13/96 LAUDERDALE, FL ...... 05/24/96 LAND, ME ...... 08/13/96 MACHECA, DEBRA LYNN, WOLK, ROBERT P., PHILADEL- MOORE, BONNIE FAYE, TUC- HUNTINGTON BCH, CA ...... 08/11/96 PHIA, PA ...... 06/10/96 SON, AZ ...... 08/11/96 MANGLA, JAGDISH CHAND, WOLK, HARRIET, PHILADEL- OLIVER, IRENE H., FARMING- PITTSFORD, NY ...... 08/13/96 PHIA, PA ...... 06/10/96 TON, ME ...... 08/13/96 MESSINA, SARA, CHESTER, SANDERSON, YOLANDA D., CT ...... 08/13/96 OWNED/CONTROLLED BY CONVICTED/ WINDHAM, ME ...... 08/13/96 MILLER, DONALD B., EDINA, EXCLUDED SCHEINER, DAVE E., PHILA- MN ...... 08/12/96 DELPHIA, PA ...... 08/08/96 MONROE, DANIEL, HARRISON, BOYD CHIROPRACTIC CLINIC, WRIGHT, KAREN S., NY ...... 08/13/96 BIG SPRING, TX ...... 08/13/96 WATERVILLE, ME ...... 08/13/96 NELSON, MARK V., CAREY, CLAY CHIROPRACTIC, BIR- NC ...... 08/06/96 MINGHAM, AL ...... 08/06/96 CONTROLLED SUBSTANCE CONVICTIONS NICHOPOULOS, GEORGE C., DERENZO AND ASSOCIATES, MEMPHIS, TN ...... 08/06/96 BERWYN, PA ...... 08/08/96 BELLUCCI, JOHN B., TREVOR, NOLL, RICHARD J., WIND GAP, HILLCREST CLINICS, INC., BIG WI ...... 08/12/96 PA ...... 08/08/96 SPRING, TX ...... 08/13/96 WAKHAM, GARY A., GILBERT, NOVEROSKE, SUSAN, W ELIZ- I.M.G. TESTING, INC., BIG WV ...... 08/08/96 ABETH, PA ...... 08/08/96 SPRING, TX ...... 08/13/96 OPPLINGER, GARRET L., LEONAS & ASSOCIATES, WESTMINSTER, CO ...... 08/13/96 PALOS HEIGHTS, IL ...... 08/12/96 42260 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices

Effective Effective National Institutes of Health Subject, city, state date Subject, city, state date Division of Research Grants; Notice of MED-AMERICA CLINICS, INC., KEE, VALLERIE B., FRED- Closed Meeting BIG SPRING, TX ...... 08/13/96 ERICK, MD ...... 08/08/96 MED-AMERICA HEALTH CEN- LACY, SHARON J., Pursuant to Section 10(d) of the TER, BIG SPRING, TX ...... 08/13/96 GUERNEVILLE, CA ...... 08/11/96 Federal Advisory Committee Act, as MEDICINE SHOPPE, COLO- LAMB, ROBERT D., amended (5 U.S.C. Appendix 2), notice RADO SPRINGS, CO ...... 08/13/96 SEBASTOPOL, CA ...... 08/11/96 is hereby given of the following Division MEDICINE SHOPPE, COLO- LAUGHTER, JAMES S., SAN of Research Grants Special Emphasis RADO SPRINGS, CO ...... 08/13/96 DIEGO, CA ...... 08/11/96 Panel (SEP) meeting: MID AMERICA DIAGNOSTICS, LEES, COREY R., HARRIS- INC., BIG SPRING, TX ...... 08/13/96 BURG, PA ...... 08/08/96 Purpose/Agenda: To review individual SAFETY MEDIAL TRANSPOR- LEWIS, EDWARD L., AUBURN, grant applications. TATION, BRYAN, TX ...... 08/13/96 CA ...... 08/11/96 Name of SEP: Biological and Physiological SCHAEFFER CHIROPRACTIC, MAST, BARRY C., CAMARILLO, Sciences. CORALVILLE, IA ...... 08/12/96 CA ...... 08/11/96 Date: August 16, 1996. Time: 1:00 p.m. MAYFIELD-ANDREWS, DEFAULT ON HEAL LOAN Place: NIH, Rockledge 2, Room 4142, SHERYL A., SAN DIEGO, CA 08/11/96 Telephone Conference. ABENDAN, MARILOU S., AL- MILLER, ALAN KENT, Contact Person: Dr. Edmund Copeland, BANY, CA ...... 08/11/96 MONROEVILLE, PA ...... 08/08/96 Scientific Review Administrator, 6701 ADEDARA, ISAAC O., HYATTS- MITCHELL, ALBERT, PHILA- Rockledge Drive, Room 4142, Bethesda, VILLE, MD ...... 08/08/96 DELPHIA, PA ...... 07/02/96 Maryland 20892, (301) 435–1715. ALSHOUSE-ELLIS, LUANNE S., NEIS-WHINERY, RAMONA, This notice is being published less than 15 TERRELL, TX ...... 08/13/96 KANSAS CITY, KS ...... 08/13/96 days prior to the above meeting due to the ANDERSON, ANGELA J., TOR- NICKELL, SCOTT B., FENTON, urgent need to meet timing limitations RANCE, CA ...... 08/11/96 MO ...... 08/12/96 imposed by the grant review and funding BARBALA, PATRICIA JEANNE, NORIE, JOHN B., PALM cycle. FRESNO, CA ...... 08/11/96 SPRINGS, CA ...... 08/11/96 The meeting will be closed in accordance BERG, TROY LYNN, HUNTING- OLIVER, MONTE B., LINDALE, with the provisions set forth in secs. TON BCH, CA ...... 08/11/96 TX ...... 08/13/96 552b(c)(4) and 552b(c)(6), Title 5, U.S.C. BRENT, GLORIA J., DETROIT, PLACIDE, FRANTZ, EL PASO, Applications and/or proposals and the MI ...... 08/12/96 TX ...... 08/13/96 discussions could reveal confidential trade BRINKER, RICHARD B., PORT PORADA, STANLEY L., CREST- secrets or commercial property such as HUENEME, CA ...... 08/11/96 WOOD, IL ...... 08/12/96 patentable material and personal information BROWN, DAVID A., ATHOL, MA 08/13/96 ROCHA, MARK W., ANZA, CA 08/11/96 concerning individuals associated with the BURNETT, KEVIN M., SOUTH SALMON, KEVIN M., PALOS applications and/or proposals, the disclosure BEND, IN ...... 08/12/96 HEIGHTS, IL ...... 08/12/96 of which would constitute a clearly CALHOUN, GEORGE W., AUS- SCHINKAI, DAVID JAMES, unwarranted invasion of personal privacy. TIN, TX ...... 08/13/96 LAKEPORT, MI ...... 08/12/96 (Catalog of Federal Domestic Assistance CANNON, FRED C., COLUM- SMITH, JONATHAN M., DECA- Program Nos. 93.306, 93.333, 93.337, 93.393– BUS, MO ...... 07/01/96 TUR, IN ...... 08/12/96 93.396, 93.837–93.844, 93.846–93.878, CATALFO, TIMOTHY L., SOHRAB, NEDA, COSTA 93.892, 93,893, National Institutes of Health, ALPHARETTA, GA ...... 08/06/96 MESA, CA ...... 08/11/96 HHS) COX, STEWART J., PLEASANT STRATTON, MARK W., Dated: August 7, 1996. HILL, CA ...... 08/11/96 DUQUOIN, IL ...... 08/12/96 Susan K. Feldman, CZEGLEDY, FERENC D., THOMPSON, SAM, ELMIRA, NY 08/13/96 PLANDOME, NY ...... 08/13/96 Committee Management Officer, NIH. URLING, WENDELL P., DHALIWAL, EMALINE K., [FR Doc. 96–20669 Filed 8–13–96; 8:45 am] CHESHIRE, CT ...... 08/13/96 MORENO VALLEY, CA ...... 08/11/96 BILLING CODE 4140±01±M DHARMA-HAYNES, GEETHA VON BRINCKEN, FREDERICK, ALICE, LOS ANGELES, CA ... 08/11/96 SEDONA, AZ ...... 08/11/96 DOBSON, JUSTINE E., FLOR- WAHL, DAVID G., MONTGOM- ERY, MN ...... 08/12/96 Division of Research Grants; Notice of ENCE, OR ...... 08/11/96 Closed Meetings DONE, BYRON H., WALNUT WALBURN, KEITH J., OCALA, CREEK, CA ...... 08/11/96 FL ...... 08/06/96 Pursuant to Section 10(d) of the WEBER, GEORGE L., DOSUNMU, BENZENA V., Federal Advisory Committee Act, as BROOKLYN, NY ...... 08/13/96 HORSHAM, PA ...... 08/08/96 WOYWOOD, ROGER B., DAL- amended (5 U.S.C. Appendix 2), notice ELI, DESIREE D., CAPITOLA, is hereby given of the following Division CA ...... 08/11/96 LAS, TX ...... 08/13/96 GARZA, RUDOLPH P., SAN of Research Grants Special Emphasis JOSE, CA ...... 08/11/96 SECTION 1128Aa Panel (SEP) meetings: GRAY, SCOTT D., HEMET, CA 08/11/96 Purpose/Agenda: To review individual HOLMAN, STANLEY F., LOUIS- BAILEY, JOHN L., grant applications. VILLE, KY ...... 08/06/96 CHANNELVIEW, TX ...... 08/13/96 Name of SEP: Microbiological and HOPFNER-KOZEL, NOREEN Immunological Sciences. V., POWDER SPRINGS, GA 08/06/96 Dated: August 2, 1996. Date: August 12, 1996. HORGASH, JOHN S., William M. Libercci, Time: 1:00 p.m. HORSHAM, PA ...... 08/08/96 Director, Health Care Administrative Place: NIH, Rockledge 2, Room 4210 JONES, THOMAS R., Sanctions, Office of Enforcement and (Telephone Conference). ELIZABETHTON, TN ...... 08/06/96 Compliance. Contact Person: Dr. Bruce Maurer, KAISER-COELLO, KAREN K., Scientific Review Administrator, 6701 PARKLAND, FL ...... 07/17/96 [FR Doc. 96–20664 Filed 8–13–96; 8:45 am] Rockledge Drive, Room 4210, Bethesda, KATZ, ALAN S., NEW CITY, NY 08/13/96 BILLING CODE 4150±04±P Maryland 20892, (301) 435–1225. Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices 42261

Name of SEP: Microbiological and Sec. 19, those lands south of Interstate 10 SUMMARY: The following public lands in Immunological Sciences. within lot 4, SE1⁄4SW1⁄4, S1⁄2SE1⁄4; Santa Fe County, New Mexico have Date: August 13, 1996. Sec. 30, lots 1 to 4, inclusive, E1⁄2, E1⁄2W1⁄2; been examined and found suitable for 1 1 1 Time: 1:00 p.m. Sec. 31, lots 1 to 4, inclusive, E ⁄2, E ⁄2W ⁄2. classification for lease or conveyance to Place: NIH, Rockledge 2, Room 4210 The area described contains approximately (Telephone Conference). 1,380 acres. the Royal City Radio Control Club, Inc., Contact Person: Dr. Bruce Maurer, under the provisions of the Recreation SUPPLEMENTARY INFORMATION: The land Scientific Review Administrator, 6701 and Public Purposes Act, as amended Rockledge Drive, Room 4210, Bethesda, is not required for any Federal purposes. (43 U.S.C. 869 et seq.). The Royal City Maryland 20892, (301) 435–1225. The lease is consistent with current Radio Control Club, Inc. proposes to use Name of SEP: Microbiological and Bureau planning for this area and would the lands for a radio controlled model Immunological Sciences. be in the public interest. The lease when aircraft flying site. Date: August 14, 1996. issued would be subject to the following Time: 1:00 p.m. terms, conditions, and reservations: New Mexico Principal Meridian Place: NIH, Rockledge 2, Room 4210 1. Provisions of the Airport Act of T. 16 N., R. 7 E., (Telephone Conference). May 24, 1928, and to all applicable Sec. 1: within Lot 7. Contact Person: Dr. Bruce Maurer, regulations of the Secretary of the Containing approximately 2 acres +/¥. Scientific Review Administrator, 6701 Interior. The lands are not needed for Federal Rockledge Drive, Room 4210, Bethesda, 2. A 15 foot wide right-of-way (AZA Maryland 20892, (301) 435–1225. purposes. Lease or conveyance is This notice is being published less than 15 22287) for a buried communication consistent with current BLM land use days prior to the above meetings due to the cable. planning and would be in the public 3. A road right-of-way (AZPHX urgent need to meet timing limitations interest. imposed by the grant review and funding 086772) for a county road. The lease/conveyance, when issued, 4. A 50 foot wide right-of-way (AZA cycle. will be subject to the following terms, 21968) for a natural gas pipeline. The meetings will be closed in accordance conditions and reservations: with the provisions set forth in secs. DATES: Upon publication of this notice 552b(c)(4) and 552b(c)(6), Title 5, U.S.C. 1. Provisions of the Recreation and in the Federal Register, the above Public Purposes Act and to all Applications and/or proposals and the described lands will be segregated from discussions could reveal confidential trade applicable regulations of the Secretary secrets or commercial property such as all forms of appropriation under the of the Interior. patentable material and personal information public land laws, including the general 2. A right-of-way for ditches and concerning individuals associated with the mining laws, except for lease under the canals constructed by the authority of applications and/or proposals, the disclosure Airport Act of May 24, 1928. The the United States. of which would constitute a clearly segregative effect will end upon 3. All minerals shall be reserved to unwarranted invasion of personal privacy. issuance of the lease or 1 year from the the United States, together with the (Catalog of Federal Domestic Assistance date of this publication, whichever right to prospect for, mine, and remove Program Nos. 93.306, 93.333, 93.337, 93.393– occurs first. the minerals. 93.396, 93.837–93.844, 93.846–93.878, For a period of 45 days from the date Detailed information concerning this 93.892, 93.893, National Institutes of Health, of publication of this notice in the HHS) action is available for review at the Federal Register, interested parties may office of the Bureau of Land Dated: August 8, 1996. submit comments regarding the Management, Taos Resource Area, 226 Susan K. Feldman, proposed lease of the lands to the Cruz Alta, Taos, NM 87571. NIH Committee Management Officer. District Manager, Yuma District Office, Upon publication of this notice in the [FR Doc. 96–20765 Filed 8–9–96; 3:12 pm] 2555 East Gila Ridge Road, Yuma, Federal Register, the lands will be BILLING CODE 4140±01±M Arizona 85365. segregated from all other forms of EFFECTIVE DATE: In the absence of any appropriation under the public land objections, the decision to approve this laws, including the general mining laws, DEPARTMENT OF THE INTERIOR realty action will become the final except for lease or conveyance under determination of the Department of the the Recreation and Public Purposes Act Bureau of Land Management Interior. and leasing under the mineral leasing [AZ±055±06±1430±01; AZA±25117] FOR FURTHER INFORMATION CONTACT: laws. For a period of 45 days from the Realty Specialist Dave Curtis, Yuma date of publication of this notice in the Arizona: Notice of Realty Action; Lease Area Office, 2555 East Gila Ridge Road, Federal Register, interested persons of Public Lands for Airport Purposes in Yuma, Arizona 85365, telephone (520) may submit comments regarding the La Paz County, Arizona 317–3237. proposed lease/conveyance or classification of the lands to the District AGENCY: Dated: August 2, 1996. Bureau of Land Management, Manager, BLM Albuquerque District Interior. Gail Acheson, Acting District Manager. Office, 435 Montan˜ o NE, Albuquerque, ACTION: Notification of Public Lands for New Mexico 87107. Airport Purposes Lease. [FR Doc. 96–20656 Filed 8–13–96; 8:45 am] Classification Comments: Interested BILLING CODE 4310±32±M parties may submit comments involving SUMMARY: The following described public lands in La Paz County, Arizona, the suitability of the land for a radio have been examined and found suitable [NM±018±96±1430±02; NMNM 95860] controlled model aircraft flying site. Comments on the classification are for lease under the provisions of the Act Notice of Realty Action; Recreation of May 24, 1928 (49 U.S.C. Appendices restricted to whether the land is and Public Purposes (R&PP) Act physically suited for the proposal, 211–213). The Town of Quartzsite Classification; New Mexico proposes to use the land for a whether the use will maximize the Community Airport. AGENCY: Bureau of Land Management, future use or uses of the land, whether Interior. the use is consistent with local planning Gila and Salt River Meridian, Arizona and zoning, or if the use is consistent ACTION: Notice. T. 4 N., R. 18 W., with State and Federal programs. 42262 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices

Application Comments: Interested Secretary and, pursuant to the conference room, 1024 West Third parties may submit comments regarding provisions of Section 5 of the Act of Street, Dayton, Ohio 45407. the specific use proposed in the October 9, 1965 (79 Stat. 969; 16 U.S.C. AGENDA: This business meeting will be application and plan of development, 20), is entitled to a preference in the open to the public. Space and facilities whether the BLM followed proper extension of this contract. This means to accommodate members of the public administrative procedures in reaching that the extension will be awarded to are limited and persons accommodated the decision, or any other factor not the party submitting the best offer, on a first-come, first-served basis. The directly related to the suitability of the provided that if the best offer was not Chairman will permit attendees to land for a radio controlled model submitted by the existing concessioner, address the Commission, but may aircraft flying site. then the existing concessioner will be restrict the length of presentations. An Any adverse comments will be afforded the opportunity to match the agenda will be available from the reviewed by the State Director. In the best offer. Section 1307 of the Alaska Superintendent, Dayton Aviation, 1 absence of any adverse comments, the National Interest Lands Conservation week prior to the meeting. classification will become effective 60 Act established certain rights and days from the date of publication of this preferences for continuing and selecting FOR FURTHER INFORMATION CONTACT: notice in the Federal Register. visitor service providers. Consideration William Gibson, Superintendent, Dated: August 2, 1996. and application of Section 1307 will Dayton Aviation, National Park Service, Michael R. Ford, occur at the time of award. If the P.O. Box 9280, Wright Brothers Station, Dayton, Ohio 45409, or telephone 513– District Manager. existing concessioner does not agree to 225–7705. [FR Doc. 96–20746 Filed 8–13–96; 8:45 am] the terms of the extension, the right of preference shall be considered to have BILLING CODE 4310±FB±P SUPPLEMENTARY INFORMATION: The been waived, and the extension will Dayton Aviation Heritage Commission then be awarded to the party submitting was established by Public Law 102–419, National Park Service the best responsive offer. October 16, 1992. Because of the limited term of the Dated: July 25, 1996. Notice of Intention to Extend an proposed extension, the National Park William W. Schenk, Existing Concession Contract Service is not encouraging the submission of offers by anyone but the Field Director, Midwest Field Area. AGENCY: National Park Service, Interior. incumbent in response to this proposal, [FR Doc. 96–20732 Filed 8–13–96; 8:45 am] SUMMARY: Notice is hereby given that but plans to do so at the time the BILLING CODE 4310±70±P the National Park Service intends to contract is renewed for a longer term. extend the concession contract with However, as required by law, the National Park Service Katmailand, Inc., at Katmai National National Park Service will consider and Park for a period of approximately 3 evaluate all offers received in response Keweenaw National Historical Park years through December 31, 1999. to this notice. Anyone interested in Advisory Commission Meeting FOR FURTHER INFORMATION CONTACT: obtaining further information about this Rebecca Rhea, Acting Senior Contract proposed extension should contact AGENCY: National Park Service, Interior. Analyst, National Park Service, 2525 Rebecca Rhea, National Park Service, ACTION: Notice of meeting. Gambell Street, Room 107, Anchorage, 2525 Gambell Street, Room 107, Alaska 99503–2892. Phone (907) 257– Anchorage, Alaska 99503–2892 (phone SUMMARY: This notice announces an 2529. 907–257–2529) no later than 15 days upcoming meeting of the Keweenaw SUPPLEMENTARY INFORMATION: The following publication of this notice to National Historical Park Advisory concession contract with Katmailand, obtain a prospectus outlining the Commission. Notice of this meeting is Inc., authorizing it to provide lodging, requirements of the proposed extension. required under the Federal Advisory food service, transportation, and other Any offer submitted as a result of this Committee Act (Public Law 92–463). services within Katmai National Park notice must be received by the Alaska MEETING DATE AND TIME: expired by limitation of time on Field Office no later than 30 days after Tuesday, December 31, 1995, and was extended the date of publication of this notice. October 29, 1996; 8:30 a.m. until 4:30 until December 31, 1996. The National Robert D. Barbee, p.m. Park Service does not intend to issue a Alaska Field Director. ADDRESS: Keweenaw National Historical prospectus soliciting bids for a contract [FR Doc. 96–20632 Filed 8–13–96; 8:45 am] Park Headquarters, 100 Red Jacket Road for an extended period until planning BILLING CODE 4310±70±M (2nd floor), Calumet, Michigan 49913– can be conducted to determine the 0471. future direction for concession services AGENDA TOPICS INCLUDE: The Chairman’s at this site. The planning may affect the Dayton Aviation Heritage Commission welcome; minutes of the previous future of this operation, and may take as meeting; update on the general AGENCY: National Park Service, Interior. long as 3 years to complete. Until management plan; update on park planning is concluded, it is not in the ACTION: Notice of meeting. activities; old business; new business; best interest of the National Park Service next meeting date; adjournment. This SUMMARY: This notice sets the schedule to enter into a long-term concession meeting is open to the public. contract for this operation. This for the forthcoming meeting of the extension may be for a lesser period Dayton Aviation Heritage Commission. SUPPLEMENTARY INFORMATION: The should planning conclude and a Notice of this meeting is required under Keweenaw National Historical Park was renewal process be conducted which the Federal Advisory Committee Act established by Public Law 102–543 on results in the award of a new long-term (Public Law 92–463). October 27, 1992. concession contract. This existing MEETING DATE, TIME, AND ADDRESSES: FOR FURTHER INFORMATION CONTACT: concessioner has performed its Tuesday, September 3, 1996; 5:15 p.m. Superintendent, Keweenaw National obligations to the satisfaction of the to 6:30 p.m., Innerwest Priority Board Historical Park, William O. Fink, P.O. Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices 42263

Box 471, Calumet, Michigan 49913– City Hall Conference Room, Wagner, in the National Register were received 0471, 906–337–3168. South Dakota. by the National Park Service before Dated: July 25, 1996. AGENDA TOPICS INCLUDE: August 3, 1996. Pursuant to section William W. Schenk, 1. Review of changes incorporated 60.13 of 36 CFR Part 60 written into the draft general management plan comments concerning the significance Field Director, Midwest Field Area. for the recreational rivers. of these properties under the National [FR Doc. 96–20731 Filed 8–13–96; 8:45 am] 2. Review of public comments Register criteria for evaluation may be BILLING CODE 4310±70±P received regarding the 39-mile draft forwarded to the National Register, general management plan and National Park Service, P.O. Box 37127, environmental impact statement. Washington, DC 20013–7127. Written National Park Service 3. The opportunity for public comments should be submitted by Mississippi River Coordinating comment and proposed agenda, date, August 29, 1996. Commission Meeting and time of the next advisory group Carol D. Shull, meeting. Keeper of the National Register. AGENCY: National Park Service, Interior. The meeting is open to the public. ACTION: Notice of meeting. Interested persons may make oral/ Arkansas written presentation to the commission Pope County SUMMARY: This notice announces an or file written statements. Requests of upcoming meeting of the Mississippi time for making presentations may be Russellville Downtown Historic District, River Coordinating Commission. Notice made to the Superintendent prior to the Roughly bounded by W. 2nd St., of this meeting is required under the meeting or to the chairman at the Arkansas Ave., Missouri—Pacific RR Federal Advisory Committee Act (Public beginning of the meeting. In order to tracks and El Paso St., Russellville, Law 92–463). accomplish the agenda, the chairman 96000941 MEETING DATE, TIME, AND ADDRESS: may want to limit or schedule public Wednesday, September 11, 1996, 6:30 presentations. The meeting will be California recorded for documentation and a p.m. to 9:30 p.m.; Hastings City Hall, Sierra County Community Room, 101 Fourth Street summary in the form of minutes will be East, Hastings, Minnesota. transcribed for dissemination. Minutes Forest City, Off of Mountain House Rd., of the meeting will be made available to AGENDA: An agenda for the meeting will jct. of North and South Forks, Tahoe the public after approval by the National Forest, Forest City, 96000942 be available by September 4, 1996. commission members. Copies of the Contact the Superintendent of the minutes may be requested by contacting Florida Mississippi National River and the Superintendent. An audio tape of Dade County Recreation Area (MNRRA) at the the meeting will be available at the address listed below. Public statements headquarters office of the Niobrara/ McMinn—Horne House (Homestead about matters related to the MNRRA Missouri National Scenic Riverways in will be accepted at this time. MPS), 25 N.E. 12th St., Homestead, O’Neill, Nebraska. 96000943 SUPPLEMENTARY INFORMATION: The SUPPLEMENTARY INFORMATION: The Mississippi River Coordinating Advisory Group was established by the Idaho Commission was established by Public law that established the Missouri Bannock County Law 100–696, dated November 18, 1988. National Recreational River, Public Law FOR FURTHER INFORMATION CONTACT: 102–50. The purpose of the group, Pocatello Warehouse Historic District, Superintendent JoAnn Kyral, according to its charter, is to advise the Roughly bounded by S. 2nd Ave., E. Mississippi National River and Secretary of the Interior on matters Halliday, E. Sutter, and the OSL RR Recreation Area, 175 East Fifth Street, pertaining to the development of a tracks, Pocatello, 96000946 Suite 418, St. Paul, Minnesota 55101 management plan, and management and Latah County (612–290–4160). operation of the recreational river. The Dated: July 30, 1996. Missouri National Recreational River is Kappa Sigma Fraternity, Gamma Theta William W. Schenk, the 39-mile free flowing segment of the Chapter, 918 Blake St., Moscow, Field Director, Midwest Field Area. Missouri from Fort Randall Dam to the 96000945 vicinity of Springfield in South Dakota. [FR Doc. 96–20730 Filed 8–13–96; 8:45 am] FOR FURTHER INFORMATION CONTACT: Twin Falls County BILLING CODE 4310±70±P Warren Hill, Superintendent, Niobrara/ Twin Falls Canal Company Building, Missouri National Scenic Riverways, 162 2nd St., W, Twin Falls, 96000944 Missouri National Recreational River P.O. Box 591, O’Neill, Nebraska 68763– Advisory Group 0591, 402–336–3970. Kansas Dated: July 25, 1996. AGENCY: National Park Service, Interior. Douglas County William W. Schenk, ACTION: Notice of meeting. Field Director, Midwest Field Area. Snow House, 706 W. 12th St., Lawrence, 96000947 SUMMARY: This notice sets the schedule [FR Doc. 96–20733 Filed 8–13–96; 8:45 am] for the forthcoming meeting of the BILLING CODE 4310±70±P Maryland Missouri National Recreational River Worcester County Advisory Group. Notice of this meeting is required under the Federal Advisory National Register of Historic Places; Notification of Pending Nominations Simpson’s Grove, E side Downs Rd., Committee Act (Public Law 92–463). approximately 2 mi. SW of jct. of US MEETING DATE, TIME, AND ADDRESSES: Nominations for the following 50 and US 113, Ironshire vicinity, Thursday, August 22, 1996; 1:30 p.m.; properties being considered for listing 96000949 42264 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices

Young—Sartorius House, 405 Market York MPS), North St., jct. with Bridge increased quantities as to be a substantial St., Pocomoke City, 96000948 St., Cleveland, 96000958 cause of serious injury to the domestic industry producing an article like or directly Massachusetts North Carolina competitive with the imported article; and (2) find, pursuant to section 311(a) of the Hampshire County Guilford County North American Free-Trade Agreement The Town Farm, 75 Oliver St., Fisher Park Historic District (Boundary (NAFTA) Implementation Act, that imports Easthampton, 96000950 Increase), 507 N. Church St., of broom corn brooms produced in Mexico Greensboro, 96000963 account for a substantial share of total Nantucket County imports of such brooms and contribute Ohio importantly to the serious injury caused by Lynn Woods Historic District, Roughly imports; but find that imports of broom corn bounded by Lynnfield St., Bow Ridge, Cuyahoga County brooms produced in Canada do not account Great Woods Rd., Parkland Ave., Jones Home for Children (Brooklyn for a substantial share of total imports and Walnut St., Saugus Line, Lynn, Centre MRA), 3518 W. Twenty-fifth thus do not contribute importantly to the serious injury caused by imports. 96000951 St., Cleveland, 87002636 Munroe Street Historic District, Commissioners Crawford and Watson Bounded by Market, Oxford, Franklin County determine that broom corn brooms are Washington Sts. and MBTA Old North End Historic District, not being imported into the United Commuter Rail, Lynn, 96000952 Roughly bounded by I–670, Pearl St., States in such increased quantities as to New Hampshire E. 2nd Ave., and N. 4th St., be a substantial cause of serious injury Columbus, 96000964 or threat of serious injury to the Cheshire County domestic industry producing an article Pennsylvania Drewsville Mansion, Old Cheshire like or directly competitive with the Trnpke., S end of Drewsville Village Montgomery County imported article. common, Walpole, 96000953 Mill Creek Historic District (Boundary Findings and Recommendations With Rockingham County Increase), Roughly bounded by the Respect to Remedy Schuylkill River, Mill Cr., Righter’s John Elkins Farmstead, 156 Beach Plain Chairman Rohr and Commissioner Mill, Rose Glen, and Monk’s Rds., Newquist— Rd., Danville, 96000955 Lower Merion Township, Gladwyne, Portsmouth Cottage Hospital, Junkins 96000965 (1) Recommend that the President increase Ave., S side of South Mill Pond, the rate of duty, for a 4-year period, on each Portsmouth, 96000954 Tennessee of the categories of imports of broom corn brooms that are the subject of this New York Knox County investigation to a rate equal to the column 1 general rate of duty plus 12 percent ad Jefferson County Knoxville National Cemetery (Civil War National Cemeteries MPS), 939 Tyson valorem in the first year, 9 percent ad valorem in the second year, 6 percent ad St. Paul’s Church (Historic Churches of St., NW, Knoxville vicinity, 96000966 the Episcopal Diocese of Central New valorem in the third year, and 3 percent ad York MPS), 210 Washington St., Texas valorem in the fourth year; (2) having found that imports the product Brownville, 96000960 Travis County of Mexico account for a substantial share of Madison County total imports and have contributed Camp Mabry Historic District, 2210 W. importantly to the serious injury, recommend St. Paul’s Church (Historic Churches of 35th St., Austin, 96000967 that Mexico not be excluded from this relief the Episcopal Diocese of Central New [FR Doc. 96–20633 Filed 8–13–96; 8:45 am] action; but having made a negative finding York MPS), 204 Genesee St., BILLING CODE 4310±70±P with respect to imports the product of Chittenango, 96000956 Canada, recommend that such imports be excluded from any relief action; New York County (3) recommend that the President, for the INTERNATIONAL TRADE W. O. DECKER (tugboat), 207 Front St., duration of the relief action, suspend duty- COMMISSION free treatment on the subject articles entered Pier No. 16, South Street Seaport from Caribbean Basin and Andean countries Museum, New York, 96000962 Report to the President on and apply the column 1 general rate plus the Oneida County Investigations Nos. TA±201±65 and additional ad valorem rates of duty described NAFTA±302±1; Broom Corn Brooms 1 above to imports from such countries; and St. Mark’s Church (Historic Churches of (4) recommend that this import relief the Episcopal Diocese of Central New Investigation No. TA–201–65 action not apply to imports the product of York MPS), 19 White St., Clark Mills, Israel. Determinations and Findings With 96000957 They find that this remedy will Respect to Injury St. Paul’s Church and Cemetery address the serious injury that they have (Historic Churches of the Episcopal On the basis of the information in the found to exist and will be the most Diocese of Central New York MPS), investigation— effective in facilitating the efforts of the Rt. 12, jct. with Snowden Hill Rd., Chairman Rohr and Commissioners domestic industry to make a positive Paris Hill, 96000961 Newquist, Nuzum, and Bragg— adjustment to import competition. This St. Stephen’s Church (Historic Churches remedy recommendation incorporates of the Episcopal Diocese of Central (1) Determine that broom corn brooms are their separate recommendation with New York MPS) 22–27 Oxford St., being imported into the United States in such regard to NAFTA–302–1, discussed New Hartford, 96000959 below. 1 Broom corn brooms are provided for in Oswego County subheadings 9603.10.05, 9603.10.15, 9603.10.35, Commissioners Nuzum and Bragg— 9603.10.40, 9603.10.50, and 9603.10.60 of the St. James’ Church (Historic Churches of Harmonized Tariff Schedule of the United States (1) Recommend that the President impose the Episcopal Diocese of Central New (HTS). a rate of duty, in lieu of the current column Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices 42265

1 general rate of duty or preferential rate of duty currently imposed under the HTS By order of the Commission. duty in effect under NAFTA, the Caribbean on such brooms. This remedy Donna R. Koehnke, Basin Economic Recovery Act, or the Andean recommendation is incorporated into Secretary. Trade Preference Act, as the case may be, on Chairman Rohr’s and Commissioner imports of broom corn brooms other than [FR Doc. 96–20724 Filed 8–13–96; 8:45 am] whisk brooms, as follows— Newquist’s various recommendations BILLING CODE 7020±02±P with regard to TA–201–65, discussed 40 percent in the first year of relief; 32 percent in the second year of relief; above. Commissioner Bragg excludes 24 percent in the third year of relief; and whisk brooms from this remedy [Investigation No. 731±TA±556 (Final) 16 percent in the fourth year of relief. recommendation. (Remand)] Where a higher rate of duty would Commissioner Crawford finds and otherwise apply to imports from any country, recommends that, in order to remedy DRAMS of One Megabit and Above in any year, that higher rate would take serious injury, it is necessary for the From the Republic of Korea; Notice effect. President, for a 2-year period, to and Scheduling of Remand (2) Recommend that this import relief increase the rate of duty on imports of Proceedings action not apply to imports produced in Israel or Canada. broom corn brooms from Mexico AGENCY: United States International receiving tariff preferences under Trade Commission. They find that this remedy will NAFTA to the column 1 general rate of ACTION: address the serious injury that they have duty currently imposed under the HTS Notice. found to exist and will be the most on such brooms. SUMMARY: The U. S. International Trade effective in facilitating the efforts of the Commission (the Commission) hereby domestic industry to make a positive Commissioner Nuzum finds and gives notice of the Court-ordered adjustment to import competition. recommends that, in order to remedy serious injury, it is necessary for the remand of its final antidumping Investigation No. NAFTA–302–1 President, for a 3-year period, to investigation No. 731–TA–556 (Final) for reconsideration in light of the Determinations With Respect to Injury increase the rate of duty on imports of broom corn brooms, except whisk Department of Commerce’s revised final On the basis of the information in the brooms, from Mexico receiving tariff determination. investigation— preferences under NAFTA as follows— EFFECTIVE DATE: August 5, 1996. Chairman Rohr and Commissioners Newquist, Crawford, Nuzum, and Bragg (1) For the first 2 years, to the column 1 FOR FURTHER INFORMATION CONTACT: general rate of duty currently imposed under determine that, as a result of the Mary Messer, Office of Investigations, the HTS on such brooms; and telephone 202–205–3193 or Robin L. reduction or elimination of a duty (2) For the third year, to a rate that is one- provided for under the NAFTA, broom Turner, Office of General Counsel, half the difference between the current telephone 202–205–3103, U. S. corn brooms produced in Mexico are column 1 general rate of duty and the rate of International Trade Commission. being imported into the United States in duty that is currently scheduled to be in such increased quantities (in absolute effect at the end of the 3-year period. Hearing-impaired individuals are terms) and under such conditions so advised that information on this matter Background that imports of the article, alone, can be obtained by contacting the constitute a substantial cause of serious Commission’s TDD terminal on 202– Following receipt of petitions filed on 205–1810. injury to the domestic industry March 4, 1996, on behalf of the U.S. producing an article that is like, or Cornbroom Task Force and its SUPPLEMENTARY INFORMATION directly competitive with, the imported individual members, the Commission Background article. instituted Investigations Nos. TA–201– Commissioner Watson determines 65 and NAFTA–302–1. Notice of the On July 5, 1996, the Court of that broom corn brooms from Mexico institution of the Commission’s International Trade issued a remand are not, as a result of the reduction or investigations and of public hearings to Order to the Commission in Hyundai elimination of a duty provided for under be held in connection therewith was Electronics Industries v. U.S. the NAFTA, being imported into the given by posting copies of the notice in International Trade Commission, Ct. United States in such increased the Office of the Secretary, U.S. No. 93–06–00319, Slip. Op. 96–105. quantities (in absolute terms) and under International Trade Commission, That case involved review of the such conditions so that imports of the Washington, DC and by publishing the Commission’s May 1993 affirmative article, alone, constitute a substantial notice in the Federal Register of March determination in DRAMs of One cause of serious injury or threat of 18, 1996 (61 FR 11061). The hearings Megabit and Above from the Republic of serious injury to the domestic industry (May 30, 1996, for the injury phase and Korea, Inv. No. 731–TA–556 (Final). producing an article that is like, or July 11, 1996, for the remedy phase) The CIT ordered the Commission to directly competitive with, the imported were held in Washington, DC, and all reconsider its final determination in article. persons who requested the opportunity light of the Department of Commerce’s revised final determination, which Findings and Recommendations With were permitted to appear in person or found Samsung’s dumping margin to be Respect To Remedy by counsel. de minimis and, thus, its imports Chairman Rohr and Commissioners The Commission transmitted its excluded from the scope of the DRAM Newquist and Bragg find and determinations in these investigations to antidumping order. recommend that, in order to remedy the President on August 1, 1996. The serious injury, it is necessary for the views of the Commission are contained Reopening Record President, for a 3-year period, to in USITC Publication 2984 (August In order to assist it in making its increase the rate of duty on imports of 1996), entitled ‘‘Broom Corn Brooms: determination on remand, the broom corn brooms produced in Mexico Investigations Nos. TA–201–65 and Commission is reopening the record on receiving tariff preferences under NAFTA–302–1.’’ remand in this investigation to seek NAFTA to the column 1 general rate of Dated: Issued: August 7, 1996. clarification regarding data in importers 42266 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices questionnaires in the final investigation, not accept a document for filing without The complaint seeks injunctive relief and to permit parties to file briefs. a certificate of service. and civil penalties for violations of the Act and regulations promulgated Participation in the Proceedings Authority: This action is taken under the authority of the Tariff Act of 1930, title VII. thereunder at eighteen wood processing Only those persons who were Issued: August 7, 1996. facilities located in Alabama, Arkansas, interested parties to the original Florida, Georgia, Mississippi, North By order of the Commission. administrative proceedings (i.e., persons Carolina, South Carolina, and Virginia. listed on the Commission Secretary’s Donna R. Koehnke, The complaint alleged that Georgia- service list) may participate in these Secretary. Pacific Corporation (‘‘G-P’’) failed to remand proceedings. [FR Doc. 96–20723 Filed 8–13–96; 8:45 am] obtain permits required by the Limited Disclosure of Business BILLING CODE 7020±02±P Prevention of Significant Deterioration Proprietary Information (BPI) Under an (‘‘PSD’’) regulations prior to making major modifications at these facilities. Administrative Protective Order Sunshine Act Meeting (‘‘APO’’) and BPI Service List As a result, G-P’s facilities are emitting significant amounts of volatile organic Information obtained during the AGENCY HOLDING THE MEETING: United States International Trade Commission. compounds (‘‘VOCs’’). Alternatively, the remand investigation will be released to complaint alleges that even if the TIME AND DATE: August 21, 1996 at 10:00 parties under the administrative modifications at G-P’s facilities did not a.m. protective order (‘‘APO’’) in effect in the trigger PSD, G-P still had an obligation original investigation. Pursuant to PLACE: Room 101, 500 E Street S.W., to obtain construction permits for the section 207.7(a) of the Commission’s Washington, DC 20436. modifications. Finally, the complaint rules, the Secretary will make business STATUS: Open to the public. alleges that G-P violated provisions of proprietary information gathered in the MATTERS TO BE CONSIDERED: state implementation plans by failing to final investigation and this remand 1. Agenda for future meeting report VOC emissions on various permit investigation available to additional 2. Minutes applications. authorized applicants not covered under 3. Ratification List Under the terms of the settlement, G- the original APO, provided that 4. Inv. Nos. 731–TA–736–737 (Final) (Large P will apply for PSD or federally application is made not later than seven Newspaper Printing Presses and enforceable state minor source permits (7) days after publication of the Components Thereof Whether for modifications at the 18 facilities, Commission’s notice of reopening the Assembled or Unassembled from install state-of-the-art pollution control record on remand in the Federal Germany and Japan)—briefing and vote. equipment at 11 of those plants, and Register. Applications must be filed for 5. Outstanding action jackets: agree to strict production limits at 2 persons on the Judicial Protective Order 1. ID–96–014, Industry and Trade Summary: U.S. Radar and Certain Radio additional plants. The consent decree in the related CIT case, who are not Apparatus Industry Restructures in Light requires a 90% reduction of VOC under the original APO and wish to of Reduced Demand and Sustained emissions from G-P’s plywood and OSB participate in the remand investigation. Foreign Competition. dryers. In addition, for the remaining A separate service list will be plants where G-P made modifications to In accordance with Commission maintained by the Secretary for those its plywood presses, the consent decree policy, subject matter listed above, not parties authorized to receive BPI under obligates G-P to seek determinations disposed of at the scheduled meeting, the APO in this remand investigation. from the state in which the facility is may be carried over to the agenda of the located of Best Available Control Written Submissions following meeting. Technology for control of emissions Briefs should be concise, limited to By order of the Commission. resulting from the plywood presses. the issue of exclusion of Samsung’s Issued: August 12, 1996. The Consent Decree also requires G- imports, and thoroughly referenced to Donna R. Koehnke, P to conduct comprehensive Clean Air information on the record in the original Secretary. Act audits of all 26 of its wood product investigation or information obtained [FR Doc. 96–20876 Filed 8–12–96; 3:28 pm] facilities nationwide and to monitor during the remand investigation. compliance with emission limits on a BILLING CODE 7020±02±P Written briefs shall be limited to thirty daily basis. In addition, G-P will pay a (30) pages, and must be filed no later civil penalty of $6 million and perform than close of business on September 9, Supplemental Environmental Projects DEPARTMENT OF JUSTICE 1996. No further submissions will be that will cost $4.25 million. permitted unless otherwise ordered by Notice of Lodging of Settlement The Consent Decree provides that G- the Commission. Pursuant to the Clean Air Act P’s satisfaction of all of the requirements All written submissions must conform of the Decree will constitute full with the provisions of section 201.8 of In accordance with Department settlement of, and will resolve all civil the Commission’s rules; any policy, 28 CFR 50.7, notice is hereby and administrative liability of G-P to the submissions that contain business given that on July 18, 1996, a proposed United States for, PSD and minor source proprietary information (BPI) must also Consent Decree in United States v. permitting violations covering all conform with the requirements of Georgia-Pacific Corporation, (N.D.GA.) criteria pollutants for the modifications sections 201.6, 207.3, and 207.7 of the (Civil No. 1 96–CV–1818–FMH), was listed in Schedule C to the Consent Commission’s rules. In accordance with lodged with the U.S. District Court for Decree, and for any other violations sections 201.16(c) and 207.3 of the the Northern District of Georgia, Atlanta alleged in the Environmental Protection rules, each document filed by a party to Division. The United States filed its Agency’s August 5, 1994 and May 18, the investigation must be served on all compliant in this action simultaneously 1995 Notices of Violation, or in the other parties to the investigation (as with the consent decree, on behalf of the United States’ Complaint. identified by either the public or BPI Environmental Protection Agency The Department of Justice will receive service list), and a certificate of service (‘‘EPA’’) pursuant to Section 113(b) of for a period of thirty (30) days from the must be timely filed. The Secretary will the Clean Air Act, 42 U.S.C. § 7413(b). date of this publication comments Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices 42267 concerning the proposed Consent United States v. Dennis Gerbaz, et al., Building and Courthouse, Room 137, Decree. Comments should be addressed Civil No. 89–M–554 (D. Colo.). 6th and States Streets, Erie, to the Assistant Attorney General of the The Consent Judgment may be Pennsylvania, 15219; Region III Office Environment and Natural Resources examined at the Clerk’s Office, United of the Environmental Protection Division, U.S. Department of Justice, States District Court for the District of Agency, 841 Chestnut Building, Washington, D.C. 20530, and should Colorado, United States Court House, Philadelphia, Pennsylvania 19107; and refer to United States v. Georgia-Pacific 1929 Stout Street, Rm C–145, Denver, at the Consent Decree Library, 1120 G Corporation, D.J. ref. 90–5–2–1–1851. Colorado 80294. Street, N.W., 4th Floor, Washington, The proposed Consent Decree may be Anna Wolgast, D.C. 20005 (202) 624–0892). A copy of examined at the Office of the United Acting Chief, Environmental Defense Section, the proposed Decrees may be obtained States Attorney for the Northern District Environment and Natural Resources Division. in person or by mail from the Consent of Georgia, Atlanta Division, 1800 U.S. [FR Doc. 96–20688 Filed 8–13–96; 8:45 a.m.] Decree Library, 1120 G Street, N.W., 4th Courthouse, 75 Spring St., S.W., BILLING CODE 4410±01±M Floor, Washington, D.C. 20005. When Atlanta, Georgia 30335 and at the requesting a copy of the proposed Consent Decree Library, 1120 G Street, Consent Decrees, please enclose a check N.W., 4th Floor, Washington, D.C. Notice of Consent Decree in to cover the twenty-five cents per page 20005. A copy of the proposed Decree Comprehensive Environmental reproduction costs payable to the may be obtained in person or by mail Response, Compensation and Liability ‘‘Consent Decree Library’’ in the from the Consent Decree Library, 1120 Action following amounts: $6.00 for the Halmi/Tri-Penn Consent G Street, N.W., Washington, D.C. 20005. In accordance with the Departmental Decree In requesting a copy, please enclose a Policy, 28 C.F.R. § 50.7, notice is hereby check in the amount of $28.00 ($0.25 $6.00 for the Buffalo Molded Plastics given that two Consent Decrees in Consent Decree per page for reproduction costs) payable United States v. Ralph Riehl, et al., Civil Joel M. Gross, to: Consent Decree Library. Action No. 89–226(E), were lodged with Joel Gross, the United States District Court for the Chief, Environmental Enforcement Section, Environment and Natural Resources Division, Chief, Environmental Enforcement Section, Western District of Pennsylvania on U.S. Department of Justice. Environment and Natural Resources Division. August 1, 1996. [FR Doc. 96–20685 Filed 8–13–96; 8:45 am] [FR Doc. 96–20686 Filed 8–13–96; 8:45 am] On October 16, 1989, the United BILLING CODE 4410±01±M BILLING CODE 4410±01±M States filed a complaint against the owners and operator of, and certain transporters to, the Millcreek Dump Notice of Filing of Settlement Notice of Lodging of Consent Decree Superfund Site (the ‘‘Site’’), pursuant to Stipulation and Clarifying Amendment, Pursuant to the Clean Water Act Section 107(a) of the Comprehensive Regarding Matters Relating to Alleged Environmental Response, Compensation In accordance with Departmental Violations of Standards Regulating and Liability Act (CERCLA), 42 U.S.C. Underground Storage Tanks Policy, 28 CFR 50.7, notice is hereby § 9607(a). In September 1991, the given that a Consent Decree in United United States added additional In accordance with Departmental States v. Dennis Gerbaz, et al., Civil No. defendants to the action. The two policy, notice is hereby given that a 89–M–554 (D. Colo.), was lodged with proposed Consent Decrees resolve the proposed Environmental Cleanup the United States District Court for the liability of Joseph and Evelyn Halmi, Settlement Stipulation (‘‘Stipulation’’) District of Colorado on August 5, 1996. Tri-Penn Tool Company, and Buffalo in In re Yellow Cab Cooperative The Consent Decree concerns alleged Molded Plastics Company. These Association (‘‘Yellow Cab’’), Bankr. No. violations of section 301(a) of the Clean Consent Decrees resolve the liability of 93–23733 (D.Colo.), was filed on April Water Act, 33 U.S.C. 1311(a), resulting the above-named defendants and third- 25, 1996, with the United States from the defendants’ discharge of party defendant (Tri-Penn Tool Bankruptcy Court for the District of dredge and fill material into portions of Company) for the response costs Colorado. The Bankruptcy Court’s the Roaring Fork River without a permit incurred and to be incurred by the approval of the Stipulation is subject to from the U.S. Army Corps of Engineers. United States at the Site. Joseph and action by the United States in response The Under the Consent Decree, the Evelyn Halmi and Tri-Penn Tool to any comments which may be settling defendants will perform certain Company will pay $100,000 in response received from the public during a thirty river restoration and stabilization costs. Buffalo Molded Plastics Company day public comment period, required requirements for portions of the Roaring will pay $85,000 in response costs. under 28 CFR 50.7, which commences Fork River, in accordance with the The Department of Justice will accept with publication of this Notice. The Master Plan. The Master Plan written comments relating to these parties to the Stipulation, Yellow Cab establishes a river restoration and proposed Consent Decrees for thirty (30) (‘‘Debtor’’) and the United States, have stabilization plan for portions of the days from the date of publication of this also entered into a Clarifying Roaring Fork River. notice. Please address comments to the Amendment to Environmental Cleanup The Department of Justice will receive Assistant Attorney General, Settlement Stipulation. The Clarifying written comments relating to the Environment and Natural Resources Amendment was filed with the proposed Consent Decree for a period of Division, Department of Justice, P.O. Bankruptcy Court on July 31, 1996, and 30 days from the date of publication of Box 7611, Ben Franklin Station, is also subject to public comment. The this notice. Comments should be Washington, D.C. 20044 and refer to United States has entered into the addressed to David J. Kaplan, Attorney, United States v. Ralph Riehl, et al., DOJ Stipulation and Clarifying Amendment U.S. Department of Justice, No. 90–11–3–519. on behalf of the United States Environmental Defense Section, Copies of the proposed Consent Environmental Protection Agency Environment and Natural Resources Decrees may be examined at the Office (‘‘EPA’’). Division, P.O. Box 23986, Washington, of the United States Attorney, Western The Stipulation and Clarifying D.C. 20026–3986, and should refer to District of Pennsylvania, Federal Amendment resolve an adversary 42268 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices complaint and application for the examined at the Office of the United On December 21, 1984, MCC filed its allowance of an unliquidated States Attorney, 1961 Stout Street, Suite original notification pursuant to § 6(a) of administrative priority claim filed by 1100, Denver, CO 80294; the Region VIII the Act. The Department of Justice the United States against the Debtor as Office of the Environmental Protection published a notice in the Federal the result of Debtor’s alleged violations Agency, 999 18th Street, Suite 500, Register pursuant to § 6(b) of the Act on of standards regulating the usage and Denver, Colorado 80202; and at the January 17, 1985 (50 FR 2633). closure of underground storage tanks Consent Decree Library, 1120 G Street, The last notification was filed on (‘‘USTs’’), found at 40 CFR Part 280 and NW., 4th Floor, Washington, DC 20005, September 10, 1995. The Department of promulgated under Section 9003 of the (202) 624–0892. A copy of the proposed Justice published a notice in the Federal Resource Conservation and Recovery Stipulation and Clarifying Agreement Register on May 14, 1996 (61 FR 24332). Act (‘‘RCRA’’), 42 U.S.C. § 6991b. Under may be obtained in person or by mail Constance K. Robinson, the Stipulation and Clarifying from the Consent Decree Library, 1120 Director of Operations, Antitrust Division. Amendment, Debtor is required to G Street, NW., 4th Floor, Washington, [FR Doc. 96–20660 Filed 8–13–96; 8:45 am] escrow $400,000 which will be used to: DC 20005. The Stipulation and BILLING CODE 4410±01±M remove seven USTs at Debtor’s Clarifying Amendment total 20 pages property, properly dispose of the USTs altogether. The Exhibits to the Clarifying and any residual contents remaining in Amendment total 30 pages. To obtain a Notice Pursuant to the National them, conduct a site assessment (to be copy of the Stipulation and Clarifying Cooperative Research and Production reviewed by EPA and two Colorado Amendment without the Exhibits, Act of 1993ÐNetwork Management agencies) and, if necessary, perform please refer to the referenced case and Forum corrective action. If the site assessment enclose a check in the amount of $5.00 Notice is hereby given that, on June 6, suggests that corrective action likely (25 cents per page reproduction costs), will cost more than $400,000, Debtor is 1996, pursuant to Section 6(a) of the payable to the Consent Decree Library. National Cooperative Research and to focus its corrective action efforts To obtain the Exhibits in addition to the upon cleaning up petroleum based Production Act of 1993, 15 U.S.C. Stipulation and Clarifying Amendment, § 4301 et seq. (‘‘the Act’’), the Network contamination. If it develops that less please enclose a total of $12.50. than $400,000 is needed to abate the Management Forum (‘‘the Forum’’) has Bruce S. Gelber, UST violations, the unused funds will filed written notifications be returned to Debtor’s estate for the Deputy Chief, Environmental Enforcement simultaneously with the Attorney benefit of the unsecured creditors. In the Section, Environment and Natural Resources General and the Federal Trade Division. event that EPA, Colorado authorities, Commission disclosing additions to its and Debtor’s consultant are not able to [FR Doc. 96–20687 Filed 8–13–96; 8:45 am] membership. The additional agree within nine months of the entry of BILLING CODE 4410±01±M notifications were filed for the purpose the Stipulation on all terms of any of extending the Act’s provisions necessary corrective action plan, Debtor limiting the recovery of antitrust would perform corrective action Antitrust Division plaintiffs to actual damages under according to the draft plan most specified circumstances. Specifically, acceptable to EPA. Notice Pursuant to the National the identities of the new members to the The Clarifying Amendment states that Cooperative Research and Production venture are as follows: Cascade Debtor (or any trustee appointed to Act of 1993ÐMicroelectronics and Communications Corporation, Westford, liquidate Debtor’s assets under Chapter Computer Technology Corporation MA; and Pacific Bell, San Francisco, CA 11 of the Bankruptcy Code, or any are Corporate Members. Broadcom Chapter 7 trustee of the Debtor’s estate) Notice is hereby given that, on July Eireann Research, Ltd., Dublin, could be liable for contamination of 27, 1996, pursuant to § 6(a) of the IRELAND; CNet, Inc., Plano, TX; Debtor’s property that occurred after the National Cooperative Research and Hughes Network Systems, Germantown, date that the Stipulation was filed with Production Act of 1993, 15 U.S.C. MD; LINMOR Information Systems the Court and that the Stipulation does § 4301 et seq. (‘‘the Act’’), the Mgmt., Inc., Ottawa, Ontario, CANADA; not resolve or affect in any way any Microelectronics and Computer Metrica Systems Ltd., Richmond, criminal liability which may exist under Technology Corporation (‘‘MCC’’) has Surrey, ENGLAND; Network Designs any federal statute. Further, the filed written notifications Corporation, Redmond, WA; Clarifying Amendment states that the simultaneously with the Attorney Objectivity, Inc., Mountain View, CA; United States waives and withdraws its General and the Federal Trade Smart Com, Inc., Ljubljana, SLOVENIA; general unsecured claim for civil Commission disclosing changes in its Talarian Corporation, Mountain View, penalties in the approximate amount of membership. The notifications were CA; Telecommunications Techniques $48,000. filed for the purpose of extending the Corp. (TTC), Germantown, MD; Telops The Department of Justice will Act’s provisions limiting the recovery of Management, Inc., Los Angeles, CA; and receive, for a period of thirty (30) days antitrust plaintiffs to actual damages Texas Instruments Software, Wiesbaden, from the date of this publication, under specified circumstances. GERMANY are Associate Members. comments relating to the proposed Specifically, the changes are as follows: Military Communication Institute, Stipulation and Clarifying Amendment. Lockheed Martin, Orlando, FL, has Zegrze, POLAND; SHAPE Technical Comments should be addressed to the agreed to participate in the High Centre, The Hague, THE Assistant Attorney General for the Reliability (HRM) Project. Southwestern NETHERLANDS; and Soundview Environment and Natural Resources Bell Telephone Company, St. Louis, Financial Group, Inc., Stamford, CT are Division, Department of Justice, MO, has agreed to participate in the Affiliate Members. Washington, DC 20530, and should refer QUEST Project. Lucent Technologies, No other changes have been made to In re Yellow Cab Cooperative Murray Hill, NJ, has agreed to since the last notification filed with the Association, DOJ Ref. # 90–7–1–761. participate in the Low Cost Portables Department, in either the membership The proposed Stipulation and Project. Andersen Consulting has or planned activity of the group research Clarifying Amendment may be withdrawn from the venture. project. Membership in this group Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices 42269 research project remains open, and the Drug Enforcement Administration The purpose of this notice is to allow Forum intends to file additional written an additional 30 days for public notifications disclosing all changes in Importer of Controlled Substances; comments from the date listed at the top membership. Notice of Registration of this page in the Federal Register. On October 21, 1988, the Forum filed This process is conducted in accordance its original notification pursuant to By Notice dated June 18, 1996, and with 5 CFR 1320.10. Section 6(a) of the Act. The Department published in the Federal Register on Written comments and/or suggestions of Justice published a notice in the June 26, 1996, (61 FR 33139), Arenol regarding the item(s) contained in this Federal Register pursuant to Section Chemical Corporation, 189 Meister notice, especially regarding the 6(b) of the Act on December 8, 1988 (53 Avenue, Somerville, New Jersey 08876, estimated public burden and associated FR 49615). made application to the Drug response time, should be directed to the The last notification was filed with Enforcement Administration (DEA) to Office of Management and Budget, the Department on March 5, 1996. A be registered as an importer of the basic Office of Regulatory Affairs, Attention: notice was published in the Federal classes of controlled substances listed Department of Justice Desk Officer, Register pursuant to Section 6(b) of the below: Washington, DC, 20530. Additionally, Act on May 20, 1996 (61 FR 25243). comments may be submitted to OMB via Constance K. Robinson, Drug Schedule facsimile to 202–395–7285. Comments Director of Operations, Antitrust Division. Methamphetamine (1105) ...... II may also be submitted to the [FR Doc. 96–20658 Filed 8–13–96; 8:45 am] Phenylacetone (8501) ...... II Department of Justice (DOJ), Justice BILLING CODE 4410±01±M Management Division, Information No comments or objections have been Management and Security Staff, received. DEA has considered the Attention: Department Clearance Notice Pursuant to the National factors in Title 21, United States Code, Officer, Suite 850, 1001 G Street, NW, Cooperative Research and Production Section 823(a) and determined that the Washington, DC, 20530. Additionally, Act of 1993ÐOPC Foundation registration of Arenol Chemical comments may be submitted to DOJ via Notice is hereby given that, on July Corporation to import facsimile to 202–514–1534. Written comments and suggestions 15, 1996, pursuant to § 6(a) of the methamphetamine and phenylacetone is from the public and affected agencies National Cooperative Research and consistent with the public interest and should address one or more of the Production Act of 1993, 15 U.S.C. with United States obligations under following points: § 4301 et seq. (‘‘the Act’’), the OPC international treaties, conventions, or (1) Evaluate whether the proposed Foundation (‘‘OPCF’’) has filed written protocols in effect on May 1, 1971, at collection of information is necessary notifications simultaneously with the this time. Therefore, pursuant to Section for the proper performance of the Attorney General and the Federal Trade 1008(a) of the Controlled Substances functions of the agency/component, Commission disclosing (1) the identities Import and Export Act and in including whether the information will of the parties and (2) the nature and accordance with Title 21, Code of have practical utility; objectives of the venture. The Federal Regulations, Section 1311.42, (2) Evaluate the accuracy of the notifications were filed for the purpose the above firm is granted registration as agencies/components estimate of the of invoking the Act’s provisions limiting an importer of the basic classes of burden of the proposed collection of the recovery of antitrust plaintiffs to controlled substances listed above. information, including the validity of actual damages under specified Dated: August 7, 1996. the methodology and assumptions used; circumstances. Pursuant to § 6(b) of the (3) Enhance the quality, utility, and Act, the identities of the parties are: Gene R. Haislip, Deputy Assistant Administrator, Office of clarity of the information to be Fisher-Rosemount Systems, Inc., Austin, collected; and TX; Intellution, Norwood, MA; OPTO Diversion Control, Drug Enforcement Administration. (4) Minimize the burden of the 22, Temecula, CA; and Rockwell collection of information on those who Software, Inc., Milwaukee, WI. [FR Doc. 96–20727 Filed 8–13–96; 8:45 am] BILLING CODE 4410±-09±M are to respond, including through the OPCF’s area of planned activity is to use of appropriate automated, develop and publish an OPC Standard; electronic, mechanical, or other cooperate with OPCF members and technological collection techniques or third parties to develop software Immigration and Naturalization Service other forms of information technology, implementations of the OPC Standard; Agency Information Collection e.g., permitting electronic submission of develop engineer’s test tools, tests of Activities: New collection; Comment responses. The proposed collection is software implementations, and other Request listed below: services for OPCF members; sponsor (1) Type of Information Collection: interoperability tests and ACTION: Notice of information collection New Collection. demonstrations for products based on under review; Joint Employment (2) Title of the Form/Collection: Joint the OPC Standard; and keep the public Verification Pilot (JEVP). Employment Verification Pilot (JEVP). informed about the state of engineering, (3) Agency form number, if any, and application, and further developments Office of Management and Budget the applicable component of the concerning the OPC Standard. (OMB) approval is being sought for the Department of Justice sponsoring the Membership in OPCF will be open to information collection listed below. collection: Form G–963. Office of any individual or entity that supports This proposed information collection Management, SAVE, Immigration and the objectives of the Organization and was previously published in the Federal Naturalization Service. subscribes to its bylaws. Register on May 29, 1996, at 61 FR (4) Affected public who will be asked Constance K. Robinson, 26933, allowing for a 60-day public or required to respond, as well as a brief Director of Operations Antitrust Division. comment period. No comments were abstract: Primary: Business or other for- [FR Doc. 96–20659 Filed 8–13–96; 8:45 am] received by the Immigration and profit. The information collection will BILLING CODE 4410±01±M Naturalization Service. be used by the Immigration and 42270 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices

Naturalization Service and the Social e.g., permitting electronic submission of Office of Justice Programs Security Administration to verify response. Office of the Controller; Agency employment authorization for all new If you have additional comments, Information Collection Activities: employees regardless of citizenship for suggestions, or need a copy of the Proposed Collection; Comment those companies participating in the proposed information collection Request Joint Employment Verification Pilot.(5) instrument with instructions, or An estimate of the total number of additional information, please contact ACTION: Notice of information collection respondents and the amount of time Richard A. Sloan 202–616–7600, under review; U.S. Department of estimated for an average respondent to Director, Policy Directives and Justice insurance related criminal respond: 1,000 respondents at 3.5 hours referral form. per response, and 400,000 responses at Instructions Branch, Immigration and Naturalization Service, U.S. Department 5 minutes (.083) per response. The proposed information collection (6) An estimate of the total public of Justice, Room 5307, 425 I Street, NW., Washington, DC 20536. Additionally, is published to obtain comments from burden (in hours) associated with the the public and affected agencies. comments and/or suggestions regarding collection: 36,700 annual burden hours. Comments are encouraged and will be the item(s) contained in this notice, Public comments on this proposed accepted for 60 days from the date listed especially regarding the estimated information collection is strongly at the top of this page in the Federal encouraged. public burden and associated response Register. Request written comments and Robert B. Briggs, time may also be directed to Mr. suggestions from the public and affected Department Clearance Officer, United States Richard A. Sloan. agencies concerning the proposed Department of Justice. Overview of this informaiton collection of information. Your [FR Doc. 96–20693 Filed 8–13–96; 8:45 am] collection: comments should address one or more BILLING CODE 4410±18±M (1) Type of Information Collection: of the following four points: Extension of a currently approved (1) Evaluate whether the proposed collection. collection of information is necessary Agency Information Collection for the proper performance of the Activities: Extension of Currently (2) Title of the Form/Collection: functions of the agency, including Approved Collection; Comment Application for Advance Permission to whether the information will have Request Return to Unrelinquished Domicile. practical utility; (2) Evaluate the accuracy of the ACTION: Notice of information collection (3) Agency form number, if any, and under review; application for advance the applicable component of the agencies estimate of the burden of the permission to return to unrelinquished Department of Justice sponsoring the proposed collection of information, domicile. collection: Form I–191, Office of including the validity of the Examinations, Adjudications, methodology and assumptions used; The proposed information collection Immigration and Naturalization Service. (3) Enhance the quality, utility, and clarity of the information to be is published to obtain comments from (4) Affected public who will be asked the public and affected agencies. collected; and or required to respond, as well as a brief (4) Minimize the burden of the Comments are encouraged and will be abstract: Primary: Individuals or accepted for ‘‘sixty days’’ from the date collection of information on those who Households. The information collected listed at the top of this page in the are to respond, including through the on this form will be used by the Service Federal Register. use of appropriate automated, Request written comments and to determine whether an application is electronic, mechanical, or other suggestions from the public and affected eligible for discretionary relief under technological collection techniques or agencies concerning the proposed section 212(c) of the Act. other forms of information technology, collection of information. Your (5) An estimate of the total number of e.g., permitting electronic submission of comments should address one or more respondents and the amount of time responses. of the following four points: estimated for an average respondent to If you have additional comments, (1) Evaluate whether the proposed respond: 300 respondents 15 minutes suggestions, or need a copy of the collection of information is necessary (.250) per response. proposed information collection instrument with instructions, or for the proper performance of the (6) An estimate of the total public additional information, please contact functions of the agency, including burden (in hours) associated with the whether the information will have Maureen Smythe, 202–616–3505, Office collection: 75 annual burden hours. practical utility; of the Controller, Office of Justice (2) Evaluate the accuracy of the If additional information is required Programs, U.S. Department of Justice, agencies estimate of the burden of the contact: Mr. Robert B. Briggs, Clearance Room 942, 633 Indiana Avenue, NW., proposed collection of information, Officer, United States Department of Washington, DC 20531. Additionally, including the validity of the methodoly Justice, Information Management and comments and/or suggestions regarding and assumptions used; Security Staff, Justice Management the item(s) contained in this notice, (3) Enhance the quality, utility, and Division, Suite 850, Washington Center, especially regarding the estimated clarity of the information to be 1001 G Street, NW, Washington, DC public burden and associated response collected; and 20530. time should be directed to Cynthia J. (4) Minimize the burden of the Schwimer, 202–307–3186, Director, Dated: August 9, 1996. collection of information on those who Financial Management Division, Office are to respond, including through the Robert B. Briggs, of Justice Programs, U.S. Department of use of appropriate automated, Department Clearance Officer, United States Justice, 633 Indiana Avenue, NW., electronic, mechanical, or other Department of Justice. Washington, DC 20531. technological collection techniques or [FR Doc. 96–20694 Filed 8–13–96; 8:45 am] Overview of this information other forms of information technology, BILLING CODE 4410±18±M collection: Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices 42271

(1) Type of Information Collection: advises NARA on the full range of NATIONAL SCIENCE FOUNDATION Reinstatement, without change, of a programs, policies, and plans for the previously approved collection for Center for Legislative Archives in the Proposed Collection: Comment which approval has expired. Office of Special and Regional Archives. Request (2) Title of the Form/Collection: DATES: September 16, 1996, from 9:00 Title of Proposed Collection United States Department of Justice a.m. to 10:30 a.m. Insurance Related Criminal Referral National Science Foundation Proposal Form. ADDRESSES: United States Capitol Evaluation Process. (3) Agency form number, if any, and Building, LBJ Room (S–211). In compliance with the requirement of Section 3506(c)(2)(A) of the the applicable component of the FOR FURTHER INFORMATION CONTACT: Department of Justice sponsoring the Paperwork Reduction Act of 1995 for collection: Form: None. Office of the Michael L. Gillette, Director, Center for opportunity for public comment on Controller, Office of Justice Programs, Legislative Archives, (202) 501–5350. proposed data collection projects, the National Science Foundation (NSF) will United States Department of Justice. SUPPLEMENTARY INFORMATION: (4) Affected public who will be asked publish periodic summaries of proposed or required to respond, as well as a brief Agenda projects. To request more information abstract: State and local governments, on the proposed project or to obtain a National Archives and Records private non profit organizations, and copy of the data collection plans and Administration Strategic Plan businesses or other for profit instruments, call Herman Fleming, NSF organizations. Update—Center for Legislative Archives Clearance Officer at (703) 306–1243. This form is used to encourage state Archival Impact of Technology on Comments are invited on (a) whether and federal agencies, insurance congressional documentation the proposed collection of information companies, and insurance trade Other current issues and new business. is necessary for the proper performance associations to refer significant criminal of the functions of the agency, including The meeting is open to the public. activity for Federal prosecution. It will whether the information shall have enable the Department to ensure that all Dated: August 6, 1996. practical utility; (b) the accuracy of the cases are being investigated L. Reynolds Cahoon, agency’s estimate of the burden of the appropriately, and that all related Assistant Archivist for Policy and IRM proposed collection of information; (c) investigations are coordinated. Services. ways to enhance the quality, utility, and (5) An estimate of the total number of [FR Doc. 96–20657 Filed 8–13–96; 8:45 am] clarity of the information on respondents and the amount of time BILLING CODE 7515±01±M respondents, including through the use estimated for an average respondent to of automated collection techniques or respond: 200 respondents with an other forms of information technology. average of 1 hour per respondent. Proposed Project Proposal Evaluation (6) An estimate of the total public NATIONAL LABOR RELATIONS Process burden (in hours) associated with the BOARD collection: 200 annual burden hours. The missions of the NSF are to: If additional information is required Sunshine Act Meeting increase the Nation’s base of scientific contact: Mr. Robert B. Briggs, Clearance and engineering knowledge and Officer, United States Department of AGENCY HOLDING THE MEETING: National strengthen its ability to support research Justice, Information Management and Labor Relations Board. in all areas of science and engineering; Security Staff, Justice Management TIME AND DATE: 3:00 p.m. Thursday, promote innovative science and Division, Suite 850, Washington Center, August 8, 1996. engineering education programs that 1001 G Street NW., Washington, DC can better prepare the Nation to meet 20530. PLACE: Board Conference Room, the challenges of the future; and Eleventh Floor, 1099 Fourteenth St., Dated: August 8, 1996. promote international cooperation in N.W., Washington, D.C. 20570. science and engineering. The Robert B. Briggs, STATUS: Closed to public observation Foundation is also committed to Department Clearance Officer, United States ensuring the Nation’s supply of Department of Justice. pursuant to 5 U.S.C. Section 552b(c)(2) scientists, engineers and science [FR Doc. 96–20673 Filed 8–13–96; 8:45 am] (internal personnel rules and practices); (c)(6) (personal information where educators. In its role as leading Federal BILLING CODE 4410±18±M disclosure would constitute a clearly supporter of science and engineering, unwarranted invasion of personal NSF also has an important role in privacy). national policy planning. NATIONAL ARCHIVES AND RECORDS The Foundation fulfills this ADMINISTRATION MATTERS TO BE CONSIDERED: Personnel responsibility by initiating and Matters. supporting merit-selected research and Advisory Committee on the Records of CONTACT PERSON FOR MORE INFORMATION: education projects in all the scientific Congress; Meeting Hollace J. Enoch, Associate Executive and engineering disciplines. This AGENCY: National Archives and Records Secretary, Washington, D.C. 20570, support is made primarily through Administration. Telephone: (202) 273–1940. grants, contracts, and other agreements ACTION: Notice of meeting. By direction of the Board. awarded to approximately 2,800 Dated, Washington, D.C. August 9, 1996. colleges, universities, academic SUMMARY: In accordance with the consortia, nonprofit institutions, and Federal Advisory Committee Act, the Hollace J. Enoch, small businesses. National Archives and Records Associate Executive Secretary, National Labor The Foundation relies heavily on the Administration (NARA) announces a Relations Board. advice and assistance of external meeting of the Advisory Committee on [FR Doc. 96–20849 Filed 8–12–96; 3:28 pm] advisory committees, ad-hoc proposal the Records of Congress. The committee BILLING CODE 7545±01±M reviewers, and to other experts to ensure 42272 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices that the Foundation is able to reach fair Act, reviewers’ comments will be given the Federal Register on December 6, and knowledgeable judgments. These maximum protection from disclosure. 1995 (60 FR 62497). However, by letter scientists and educators come from While listings of panelists’ names are dated July 23, 1996, the licensee colleges and universities, nonprofit released, the names of individual withdrew the proposed change. research and education organizations, reviewers, associated with individual For further details with respect to this industry, and other Government proposals, are not released to anyone. action, see the application for agencies. Because the Foundation is committed amendment dated November 2, 1995, In making its decisions on proposals to monitoring and identifying any real and the licensee’s letter dated July 23, the counsel of these merit reviewers has or apparent inequities based on gender, 1996, which withdrew the application proven invaluable to the Foundation race, ethnicity, or disability of the for license amendment. The above both in the identification of meritorious proposed principal investigator(s)/ documents are available for public projects and in providing sound basis project director(s) or the co-principal inspection at the Commission’s Public for project restructuring. investigator(s)/co-project director(s), the Document Room, the Gelman Building, Review of proposals may involve Foundation also collects race, ethnicity, 2120 L Street, NW., Washington, DC, large panel sessions, small groups, or disability, and gender. This information and at the local public document room use of a mail-review system. Proposals is also protected by the Privacy Act. located at the Perry Public Library, 3753 are reviewed carefully by scientists or Main Street, Perry, Ohio. engineers who are expert in the Burden on the Public particular field represented by the The Foundation estimates that Dated at Rockville, Maryland, this 7th day of August 1996. proposal. About one-fourth are reviewed anywhere from one hour to twenty For the Nuclear Regulatory Commission. by mail reviewers alone. Another one- hours may be required to review a Jon B. Hopkins, fourth are reviewed exclusively by proposal. It is estimated that panels of reviewers who gather, usually approximately five hours are required to Sr. Project Manager, Project Directorate III– 3, Division of Reactor Projects—III/IV, Office in Washington, to discuss their advice review an average proposal. Each of Nuclear Reactor Regulation. as well as to deliver it. The remaining proposal receives an average of seven [FR Doc. 96–20680 Filed 8–13–96; 8:45 am] one-half are reviewed first by mail reviews. reviewers expert in the particular field, Send comments to Herman Fleming, BILLING CODE 7590±01±P then by panels, usually of persons with Clearance Officer, National Science more diverse expertise, who help the Foundation, 4201 Wilson Boulevard, [Docket No. 50±440] NSF decide among proposals from Suite 485, Arlington, VA 22230. Written multiple fields or sub-fields. comments should be received by The Cleveland Electric Illuminating October 4, 1996. Company, et al.; Notice of Withdrawal Use of the Information of Application for Amendment to Dated: August 8, 1996. The information collected is used to Facility Operating License support grant programs of the Herman G. Fleming, Foundation. Reports Clearance Officer. The U.S. Nuclear Regulatory The information collected on the [FR Doc. 96–20735 Filed 8–13–96; 8:45 am] Commission (the Commission) has proposal evaluation forms is used by the BILLING CODE 7555±01±M granted the request of The Cleveland Foundation to determine the following Electric Illuminating Company (the criteria when awarding or declining licensee) to withdraw its December 21, proposals submitted to the agency: (1) NUCLEAR REGULATORY 1994, application for proposed Research performance competence; (2) COMMISSION amendment to Facility Operating License No. NPF–58 for the Perry Intrinsic merit of the research; (3) Utility [Docket No. 50±440] or relevance of the research; and (4) Nuclear Power Plant, Unit 1, located in Lake County, Ohio. Effect of the research on the The Cleveland Electric Illuminating The proposed amendment would infrastructure of science and Company, et al.; Notice of Withdrawal have revised the technical specifications engineering. of Application for Amendment to pertaining to the Traversing In-Core The information collected on reviewer Facility Operating License background questionnaires is used by Probe System to allow the use of managers to maintain an automated data The U.S. Nuclear Regulatory substitute data generated from the base of reviewers for the many Commission (the Commission) has process computer, normalized with disciplines represented by the proposals granted the request of The Cleveland available operating measurements, to submitted to the Foundation. Electric Illuminating Company (the replace data from inoperable local Information collected on gender, race, licensee) to withdraw its November 2, power range monitor (LPRM) strings for ethnicity is used in meeting NSF needs 1995, application for proposed up to 10 LPRM strings. for data to permit response to amendment to Facility Operating The Commission had previously congressional and other queries into License No. NPF–58 for the Perry issued a Notice of Consideration of equity issues. These data are also used Nuclear Power Plant, Unit 1, located in Issuance of Amendment published in in the design, implementation, and Lake County, Ohio. the Federal Register on February 1, monitoring of NSF efforts to increase the The proposed amendment would 1995 (60 FR 6310). However, by letter participation of various groups in have revised the technical specifications dated July 23, 1996, the licensee science, engineering, and education. pertaining to the energization of 120 withdrew the proposed change. volt AC buses EV–1–A and EV–1–B For further details with respect to this Confidentiality from either their normal inverter power action, see the application for Verbatim but anonymous copies of supply or from their alternate power amendment dated December 21, 1994, reviews are sent to the principal supply. and the licensee’s letter dated July 23, investigators/project directors. Subject The Commission had previously 1996, which withdrew the application to this NSF policy and applicable laws, issued a Notice of Consideration of for license amendment. The above including the Freedom of Information Issuance of Amendment published in documents are available for public Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices 42273 inspection at the Commission’s Public be used for all individuals who are proposed system is only for individuals Document Room, the Gelman Building, authorized access to protected areas with authorized unescorted access and 2120 L Street, NW., Washington, DC, without escort.’’ It further indicates that will not be used for individuals and at the local public document room an individual not employed by the requiring escorts. located at the Perry Public Library, 3753 licensee (e.g., contractors) may be The underlying purpose for requiring Main Street, Perry, Ohio. authorized access to protected areas that individuals not employed by the Dated at Rockville, Maryland, this 7th day without an escort provided the licensees must receive and return their of August 1996. individual ‘‘receives a picture badge picture badges at the entrance/exit is to For the Nuclear Regulatory Commission upon entrance into the protected area provide reasonable assurance that the which must be returned upon exit from access badges could not be Jon B. Hopkins, the protected area.’’ compromised or stolen with a resulting Sr. Project Manager, Project Directorate III– Currently, unescorted access for both risk that an unauthorized individual 3, Division of Reactor Projects—III/IV, Office employee and contractor personnel into could potentially enter the protected of Nuclear Reactor Regulation. the DBNPS is controlled through the use area. Although the proposed exemption [FR Doc. 96–20681 Filed 8–13–96; 8:45 am] of picture badges. Positive identification will allow individuals to take their BILLING CODE 7590±01±P of personnel who are authorized and picture badges off site, the proposed request access into the protected area is measures require that not only the [Docket No. 50±346] established by security personnel picture badge be provided for access to making a visual comparison of the the protected area, but also that Environmental Assessment and individual requesting access and that verification of the hand geometry Finding of No Significant Impact individual’s picture badge. The picture registered with the badge be performed badges are issued, stored, and retrieved as discussed above. Thus, the proposed In the Matter of: Toledo Edison Company; at the entrance/exit location to the system provides an identity verification Centerior Service Company; and The Cleveland Electric Illuminating Company; protected area. In accordance with 10 process that is equivalent to the existing Davis-Besse Nuclear Power Station, Unit No. CFR 73.55(d)(5), contractor personnel process. 1. are not allowed to take their picture Accordingly, the Commission badges off site. In addition, in concludes that the proposed exemption The U.S. Nuclear Regulatory accordance with the plant’s physical to allow individuals not employed by Commission (the Commission) is security plan, the licensees’ employees the licensees to take their picture badges considering issuance of an exemption are also not allowed to take their picture off site will not result in an increase in from certain requirements of its badges off site. The licensees propose to the risk that an unauthorized individual regulations to Facility Operating License implement an alternative unescorted could potentially enter the protected No. NPF–3, issued to the Toledo Edison access control system which would area. Consequently, the Commission Company, Centerior Service Company eliminate the need to issue and retrieve concludes that granting the exemption and The Cleveland Electric Illuminating picture badges at the entrance/exit will not increase the probability or Company (the licensees), for operation location to the protected area. The consequences of accidents, will make no of the Davis-Besse Nuclear Power proposal would also allow contractors changes in the types of any effluents Station (DBNPS), located in Ottawa who have unescorted access to keep that may be released offsite, and will not County, Ohio. their picture badges in their possession significantly increase the allowable Environmental Assessment when departing the DBNPS site. In individual or cumulative occupational addition, the site security plans will be radiation exposure. Accordingly, the Identification of the Proposed Action revised to allow implementation of the Commission concludes that there are no The proposed action is in accordance hand geometry system and to allow significant radiological environmental with the licensees’ application dated employees and contractors with impacts associated with the proposed June 28, 1996, for an exemption from unescorted access to keep their picture action. certain requirements of 10 CFR 73.55, badges in their possession when leaving With regard to potential ‘‘Requirements for Physical Protection the DBNPS site. nonradiological impacts, the proposed of Licensed Activities in Nuclear Power action does involve features located Environmental Impacts of the Proposed Reactors Against Radiological entirely within the restricted area as Action Sabotage.’’ The requested exemption defined in 10 CFR Part 20. It does not would allow the implementation of a The Commission has completed its affect nonradiological plant effluents hand geometry biometric system of site evaluation of the proposed action. In and has no other environmental impact. access control in conjunction with addition to their picture badges, all Accordingly, the Commission concludes photograph identification badges and individuals with authorized unescorted that there are no significant would allow the badges to be taken off access will have the physical nonradiological environmental impacts site. characteristics of their hand (hand associated with the proposed action. geometry) registered with their picture The Need for the Proposed Action badge number in a computerized access Alternatives to the Proposed Action Pursuant to 10 CFR 73.55(a), the control system. Therefore, all authorized Since the Commission has concluded licensee is required to establish and individuals must have not only their there is no measurable environmental maintain an onsite physical protection picture badges to gain access into the impact associated with the proposed system and security organization. protected area, but must also have their action, any alternatives with equal or In 10 CFR 73.55(d), ‘‘Access hand geometry confirmed. greater environmental impact need not Requirements,’’ it specifies in part that All other access processes, including be evaluated. As an alternative to the ‘‘The licensee shall control all points of search function capability and access proposed action, the staff considered personnel and vehicle access into a revocation, will remain the same. A denial of the proposed action. Denial of protected area.’’ In 10 CFR 73.55(d)(5), security officer responsible for access the application would result in no it specifies in part that ‘‘A numbered control will continue to be positioned change in current environmental picture badge identification system shall within a bullet-resistant structure. The impacts. The environmental impacts of 42274 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices the proposed action and the alternative Week of August 19—Tentative Biweekly Notice action are similar. There are no meetings scheduled for Applications and Amendments to Alternative Use of Resources the Week of August 19. Facility Operating Licenses Involving This action does not involve the use Week of August 26—Tentative No Significant Hazards Considerations of any resources not previously I. Background Monday, August 26 considered in the Final Environmental Pursuant to Public Law 97-415, the Statement for the DBNPS. 2:00 p.m. Meeting with Chairman of U.S. Nuclear Regulatory Commission Agencies and Persons Consulted Nuclear Safety, Research Review (the Commission or NRC staff) is Committee (NSRRC) (public publishing this regular biweekly notice. In accordance with its stated policy, meeting), (Contact: Jose Cortez, Public Law 97-415 revised section 189 on July 22, 1996, the staff consulted 301–415–6596) of the Atomic Energy Act of 1954, as with the Ohio State official, Carol Tuesday, August 27 amended (the Act), to require the O’Claire of the Ohio Emergency Commission to publish notice of any Management Agency, regarding the 10:00 a.m. Briefing on Design amendments issued, or proposed to be environmental impact of the proposed Certification Issues (public issued, under a new provision of section action. The State official had no meeting), (Contact: Jerry Wilson, 189 of the Act. This provision grants the comments. 301–415–3145) Commission the authority to issue and Finding of no Significant Impact 2:00 p.m. Briefing on Annealing make immediately effective any Demonstration Project (public amendment to an operating license Based upon the environmental meeting), (Contact: Michael upon a determination by the assessment, the Commission concludes Mayfield, 301–415–6690) Commission that such amendment that the proposed action will not have involves no significant hazards a significant effect on the quality of the Wednesday, August 28 consideration, notwithstanding the human environment. Accordingly, the 10:00 a.m. Briefing on Certification of pendency before the Commission of a Commission has determined not to USEC (public meeting), (Contact: request for a hearing from any person. prepare an environmental impact John Hickey, 301–415–7192) This biweekly notice includes all statement for the proposed action. 11:30 a.m. Affirmation Session (public notices of amendments issued, or For further details with respect to the meeting) (if needed). proposed to be issued from July 20, proposed action, see the licensees’ letter 1996, through August 2, 1996. The last dated June 28, 1996, which is available Week of September 2—Tentative biweekly notice was published on July for public inspection at the Thursday, September 5 31, 1996 (61 FR 40013). Commission’s Public Document Room, Notice Of Consideration Of Issuance Of The Gelman Building, 2120 L Street, 10:30 a.m. Briefing by DOE on Status Amendments To Facility Operating NW., Washington, DC, and at the local of HLW Program (public meeting) Licenses, Proposed No Significant public document room located at the The schedule for commission Hazards Consideration Determination, University of Toledo, William Carlson meetings is subject to change on short And Opportunity For A Hearing Library, Government Documents notice. To verify the status of meetings The Commission has made a Collection, 2801 West Bancroft Avenue, call (recording)—(301) 415–1292. Toledo, Ohio 43606. proposed determination that the Contact person for more information: following amendment requests involve Dated at Rockville, Maryland, this 7th day Bill Hill (301) 415–1661. of August 1996. no significant hazards consideration. * * * * * Under the Commission’s regulations in For the Nuclear Regulatory Commission. The NRC Commission Meeting 10 CFR 50.92, this means that operation Linda L. Gundrum, Schedule can be found on the Internet of the facility in accordance with the Project Manager, Project Directorate III–3, at: http://www.nrc.gov/SECY/smj/ proposed amendment would not (1) Division of Reactor Projects—III/IV, Office of schedule.htm. involve a significant increase in the Nuclear Reactor Regulation. probability or consequences of an [FR Doc. 96–20679 Filed 8–13–96; 8:45 am] This notice is distributed by mail to several hundred subscribers; if you no accident previously evaluated; or (2) BILLING CODE 7590±01±P longer wish to receive it, or would like create the possibility of a new or to be added to it, please contact the different kind of accident from any accident previously evaluated; or (3) Sunshine Act Meeting Office of the Secretary, Attn: Operations Branch, Washington, D.C. 20555 (301– involve a significant reduction in a AGENCY HOLDING THE MEETING: Nuclear 415–1963). margin of safety. The basis for this Regulatory Commission. In addition, distribution of this proposed determination for each meeting notice over the internet system amendment request is shown below. DATES: Weeks of August 12, 19, 26, and The Commission is seeking public is available. If you are interested in September 2, 1996. comments on this proposed receiving this Commission meeting determination. Any comments received PLACE: Commissioners’ Conference schedule electronically, please send an within 30 days after the date of Room, 11555 Rockville Pike, Rockville, electronic message to [email protected] or publication of this notice will be Maryland. [email protected]. considered in making any final STATUS: Public and Closed. * * * * * determination. MATTERS TO BE CONSIDERED: William M. Hill, Jr., Normally, the Commission will not SECY Tracking Officer, Office of the Week of August 12 issue the amendment until the Secretary. expiration of the 30-day notice period. There are no meetings scheduled for [FR Doc. 96–20828 Filed 8–2–96; 11:03 am] However, should circumstances change the Week of August 12. BILLING CODE 7590±01±M during the notice period such that Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices 42275 failure to act in a timely way would designated Atomic Safety and Licensing Those permitted to intervene become result, for example, in derating or Board will issue a notice of a hearing or parties to the proceeding, subject to any shutdown of the facility, the an appropriate order. limitations in the order granting leave to Commission may issue the license As required by 10 CFR 2.714, a intervene, and have the opportunity to amendment before the expiration of the petition for leave to intervene shall set participate fully in the conduct of the 30-day notice period, provided that its forth with particularity the interest of hearing, including the opportunity to final determination is that the the petitioner in the proceeding, and present evidence and cross-examine amendment involves no significant how that interest may be affected by the witnesses. hazards consideration. The final results of the proceeding. The petition If a hearing is requested, the determination will consider all public should specifically explain the reasons Commission will make a final and State comments received before why intervention should be permitted determination on the issue of no action is taken. Should the Commission with particular reference to the significant hazards consideration. The take this action, it will publish in the following factors: (1) the nature of the final determination will serve to decide Federal Register a notice of issuance petitioner’s right under the Act to be when the hearing is held. and provide for opportunity for a made a party to the proceeding; (2) the If the final determination is that the hearing after issuance. The Commission nature and extent of the petitioner’s amendment request involves no expects that the need to take this action property, financial, or other interest in significant hazards consideration, the will occur very infrequently. the proceeding; and (3) the possible Commission may issue the amendment Written comments may be submitted effect of any order which may be and make it immediately effective, by mail to the Chief, Rules Review and entered in the proceeding on the notwithstanding the request for a Directives Branch, Division of Freedom petitioner’s interest. The petition should hearing. Any hearing held would take place after issuance of the amendment. of Information and Publications also identify the specific aspect(s) of the If the final determination is that the Services, Office of Administration, U.S. subject matter of the proceeding as to Nuclear Regulatory Commission, amendment request involves a which petitioner wishes to intervene. significant hazards consideration, any Washington, DC 20555-0001, and Any person who has filed a petition for should cite the publication date and hearing held would take place before leave to intervene or who has been the issuance of any amendment. page number of this Federal Register admitted as a party may amend the notice. Written comments may also be A request for a hearing or a petition petition without requesting leave of the for leave to intervene must be filed with delivered to Room 6D22, Two White Board up to 15 days prior to the first Flint North, 11545 Rockville Pike, the Secretary of the Commission, U.S. prehearing conference scheduled in the Rockville, Maryland from 7:30 a.m. to Nuclear Regulatory Commission, proceeding, but such an amended 4:15 p.m. Federal workdays. Copies of Washington, DC 20555-0001, Attention: petition must satisfy the specificity written comments received may be Docketing and Services Branch, or may requirements described above. examined at the NRC Public Document be delivered to the Commission’s Public Room, the Gelman Building, 2120 L Not later than 15 days prior to the first Document Room, the Gelman Building, Street, NW., Washington, DC. The filing prehearing conference scheduled in the 2120 L Street, NW., Washington DC, by of requests for a hearing and petitions proceeding, a petitioner shall file a the above date. Where petitions are filed for leave to intervene is discussed supplement to the petition to intervene during the last 10 days of the notice below. which must include a list of the period, it is requested that the petitioner By September 13, 1996, the licensee contentions which are sought to be promptly so inform the Commission by may file a request for a hearing with litigated in the matter. Each contention a toll-free telephone call to Western respect to issuance of the amendment to must consist of a specific statement of Union at 1-(800) 248-5100 (in Missouri the subject facility operating license and the issue of law or fact to be raised or 1-(800) 342-6700). The Western Union any person whose interest may be controverted. In addition, the petitioner operator should be given Datagram affected by this proceeding and who shall provide a brief explanation of the Identification Number N1023 and the wishes to participate as a party in the bases of the contention and a concise following message addressed to (Project proceeding must file a written request statement of the alleged facts or expert Director): petitioner’s name and for a hearing and a petition for leave to opinion which support the contention telephone number, date petition was intervene. Requests for a hearing and a and on which the petitioner intends to mailed, plant name, and publication petition for leave to intervene shall be rely in proving the contention at the date and page number of this Federal filed in accordance with the hearing. The petitioner must also Register notice. A copy of the petition Commission’s ‘‘Rules of Practice for provide references to those specific should also be sent to the Office of the Domestic Licensing Proceedings’’ in 10 sources and documents of which the General Counsel, U.S. Nuclear CFR Part 2. Interested persons should petitioner is aware and on which the Regulatory Commission, Washington, consult a current copy of 10 CFR 2.714 petitioner intends to rely to establish DC 20555-0001, and to the attorney for which is available at the Commission’s those facts or expert opinion. Petitioner the licensee. Public Document Room, the Gelman must provide sufficient information to Nontimely filings of petitions for Building, 2120 L Street, NW., show that a genuine dispute exists with leave to intervene, amended petitions, Washington, DC and at the local public the applicant on a material issue of law supplemental petitions and/or requests document room for the particular or fact. Contentions shall be limited to for a hearing will not be entertained facility involved. If a request for a matters within the scope of the absent a determination by the hearing or petition for leave to intervene amendment under consideration. The Commission, the presiding officer or the is filed by the above date, the contention must be one which, if Atomic Safety and Licensing Board that Commission or an Atomic Safety and proven, would entitle the petitioner to the petition and/or request should be Licensing Board, designated by the relief. A petitioner who fails to file such granted based upon a balancing of Commission or by the Chairman of the a supplement which satisfies these factors specified in 10 CFR Atomic Safety and Licensing Board requirements with respect to at least one 2.714(a)(1)(i)-(v) and 2.714(d). Panel, will rule on the request and/or contention will not be permitted to For further details with respect to this petition; and the Secretary or the participate as a party. action, see the application for 42276 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices amendment which is available for Burst testing of electrosleeved tubes has does not create the possibility of a new or public inspection at the Commission’s demonstrated that no unacceptable levels of different kind of accident from any Public Document Room, the Gelman primary-to-secondary leakage are expected previously evaluated. Building, 2120 L Street, NW., during any plant condition. 3. Would not involve a significant As in the original tube, the electrosleeve reduction in a margin of safety. Washington, DC, and at the local public Technical Specification depth-based The repair of degraded steam generator document room for the particular plugging limit is determined using the tubes via the use of the proposed facility involved. guidance of Regulatory Guide 1.121 and the electrosleeve restores the structural integrity pressure stress equation of Section III of the Baltimore Gas and Electric Company, of the faulted tube under normal operating ASME Code. A bounding tube wall and postulated accident conditions. The Docket Nos. 50-317 and 50-318, Calvert degradation growth rate per cycle and a design safety factors utilized for the Cliffs Nuclear Power Plant, Unit Nos. 1 nondestructive examination uncertainty has electrosleeve are consistent with the safety and 2, Calvert County, Maryland been assumed for determining the factors in the ASME Boiler and Pressure Date of amendments request: July 26, electrosleeve plugging limit. Vessel Code used in the original steam Evaluation of the proposed electrosleeved 1996 generator design. The repair limit for the tubes indicates no detrimental effects on the proposed electrosleeve is consistent with that Description of amendments request: electrosleeve or electrosleeve-tube assembly established for the steam generator tubes. The The proposed amendment will revise from reactor system flow, primary or portions of the installed electrosleeve the appropriate Technical Specifications secondary coolant chemistries, thermal assembly which represent the reactor coolant and their Bases to permit the conditions or transients, or pressure pressure boundary can be monitored for the electrosleeving repair technique conditions as may be experienced at Calvert initiation and progression of electrosleeve/ developed by Framatome Technologies, Cliffs. Corrosion testing of electrosleeve-tube tube wall degradation, thus satisfying the Inc. to be used at Calvert Cliffs Nuclear assemblies indicates no evidence of requirements of Regulatory Guide 1.83. Use electrosleeve or tube corrosion considered of the previously identified design criteria Power Plant (CCNPP). Electrosleeving is detrimental under anticipated service a steam generator tube repair method and design verification testing assures that conditions. the margin to safety with respect to the where an ultra-fine grained nickel is The implementation of the proposed implementation of the proposed electrosleeve electrochemically deposited on the electrosleeve has no significant effect on is not significantly different from the original inner surface of a tube to form a either the configuration of the plant, or the steam generator tubes. structural repair of the degraded tube. manner in which it is operated. The Therefore, BGE concludes that the The electrodeposition of nickel provides hypothetical consequences of failure of the proposed changes does not involve a a continuous metallurgical bond that electrosleeved tube is bounded by the current significant reduction in a margin of safety. eliminates all leak paths and macro- steam generator tube rupture analysis The NRC staff has reviewed the described in Section 14.15 of the Calvert crevices. The electroformed sleeve licensee’s analysis and, based on this Cliffs Updated Final Safety Analysis Report. review, it appears that the three provides a structural, leak-tight seal, Due to the slight reduction in diameter without deforming or changing the caused by the sleeve wall thickness, primary standards of 50.92(c) are satisfied. microstructure of the parent tube. Thus, coolant release rates would be slightly less Therefore, the NRC staff proposes to unlike the conventional welded sleeves, than assumed for the steam generator tube determine that the amendments request electrosleeving does not require a post- rupture analysis (depending on the break involves no significant hazards installation stress relief. location), and therefore, would result in consideration. Basis for proposed no significant lower total primary fluid mass release to the Local Public Document Room hazards consideration determination: secondary system. location: Calvert County Library, Prince Therefore, BGE [Baltimore Gas and As required by 10 CFR 50.91(a), the Frederick, Maryland 20678. Electric] has concluded that the proposed Attorney for licensee: Jay E. Silbert, licensee has provided its analysis of the change does not involve a significant issue of no significant hazards Esquire, Shaw, Pittman, Potts and increase in the probability or consequences Trowbridge, 2300 N Street, NW., consideration, which is presented of an accident previously evaluated. below: 2. Would not create the possibility of a new Washington, DC 20037. 1. The proposed amendment would not or different kind of accident from any other NRC Project Director: Jocelyn A. involve a significant increase in the accident previously evaluated. Mitchell, Acting Director probability or consequences of an accident As discussed above, the electrosleeve is Carolina Power & Light Company, et previously evaluated. designed using the applicable ASME Code as al., Docket No. 50-325, Brunswick The implementation of the proposed steam guidance; therefore, it meets the objectives of generator tube electrosleeving has been the original steam generator tubing. As a Steam Electric Plant, Unit 1, Brunswick reviewed for impact on the current CCNPP result, the functions of the steam generators County, North Carolina licensing basis. will not be significantly affected by the Date of amendment request: April 8, Since the electrosleeve is designed using installation of the proposed electrosleeve. 1996, as supplemented on July 30, 1996. the applicable American Society of Adhesion and ductility tests performed per This notice supersedes the Federal Mechanical Engineers (ASME) Boiler and ASTM [American Society for Testing and Pressure Vessel Code as guidance, it meets Materials] standards verified that the Register notice published on June 5, the objectives of the original steam generator electrosleeve will not fail by de-bonding or 1996 (61 FR 28607). tubing. The applied stresses and fatigue cracking. In addition, the proposed Description of amendment request: usage for the electrosleeve are bounded by electrosleeve does not interact with any other The licensee has proposed to revise the the limits established in the ASME Code. plant systems. Any accident as a result of Technical Specifications (TS) to include American Society of Mechanical Engineers potential tube or electrosleeve degradation in the following changes: 1. The Minimum Code minimum material property values are the repaired portion of the tube is bounded Critical Power Ratio (MCPR) Safety used for the structural and plugging limit by the existing tube rupture accident Limit specified in TS 2.1.2 from 1.07 to analysis. Mechanical testing has shown that analysis. The continued integrity of the 1.10 for Unit 1 Cycle 11 operation; TS the structural strength of nickel installed electrosleeve is periodically verified 5.3.1 to reflect the new fuel type (GE13) electrosleeves under normal, upset and by the Technical Specification requirements. faulted conditions provides margin to the The implementation of the proposed that will be inserted during Unit 1 acceptance limits. These acceptance limits electrosleeves has no significant effect on Refueling Outage 10; 2. The acceptable bound the most limiting (three times normal either the configuration of the plant, or the range of sodium pentaborate operating pressure differential) burst margin manner in which it is operated. Therefore, concentration for the standby liquid recommended by Regulatory Guide 1.121. BGE concludes that this proposed change control system shown in TS Figure Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices 42277

3.1.5-1 to reflect changes to poison control). The portion of the sodium systems and equipment, and does not permit material concentration needed to pentaborate concentration range shown in a new or different mode of plant operation. achieve reactor shutdown based on the Technical Specification Figure 3.1.5-1 As such, the proposed revision to the new GE13 fuel type. applicable to the lower range of tank volumes minimum pentaborate concentration value Basis for proposed no significant is being revised to increase the required does not create the possibility of a new or concentration of sodium pentaborate different kind of accident from any accident hazards consideration determination: solution. This change is needed to account previously evaluated. As required by 10 CFR 50.91(a), the for the additional shutdown reactivity 3. The proposed license amendment does licensee has provided its analysis of the needed based on the planned use of GE13 not involve a significant reduction in a issue of no significant hazards fuel assemblies as reload fuel for the Unit 1 margin of safety. consideration, which is presented reactor core. Since the standby liquid control Proposed Change 1: below: system is independent from the normal As previously discussed, the GE13 fuel 1. The proposed license amendment does means of controlling reactor core reactivity assembly design has been analyzed using not involve a significant increase in the and not used to control core reactivity during methods that have been previously approved probability or consequences of an accident normal plant operations, the proposed by the Nuclear Regulatory Commission and previously evaluated. revision to the sodium pentaborate documented in General Electric Nuclear Proposed Change 1: concentration curve for the standby liquid Energy’s reload licensing methodology The proposed license amendment will control system does not alter any plant Topical Report NEDE-24011, ‘‘General allow the loading and use of GE13 fuel safety-related equipment, safety function, or Electric Standard Application for Reactor assemblies in the Brunswick Unit 1 reactor plant operations that could change the Fuel (GESTAR II).‘‘The safety limit minimum core. The use of GE13 fuel assemblies probability of an accident. critical power ratio value is selected to requires that the safety limit minimum The current volume-concentration range of maintain the fuel cladding integrity safety critical power ratio value also be revised. The sodium pentaborate used in the standby limit (i.e., that 99.9 percent of all fuel rods safety limit minimum critical power ratio is liquid control system will achieve a in the core are expected to avoid boiling established to maintain fuel cladding sufficient concentration of boron in the transition during operational transients). integrity during operational transients. The reactor vessel to ensure reactor shutdown. Appropriate operating limit minimum GE13 fuel assembly design has been analyzed Based on the increased reactivity of the new critical power ratio values are established, using methods that have been previously GE13 reload fuel assemblies, the required based on the safety limit minimum critical approved by the Nuclear Regulatory sodium pentaborate volume-concentration power ratio value, to ensure that the fuel Commission and documented in General range is being revised to ensure sufficient cladding integrity safety limit is maintained. Electric Nuclear Energ’s reload licensing neutron absorbing solution is available to The operating limit minimum critical power methodology Topical Report NEDE-24011, achieve reactor shutdown; therefore, the ratio values are incorporated in the Core ‘‘General Electric Standard Application for consequences of an accident previously Operating limits Report as required by Reactor Fuel (GESTAR II).‘‘Based on a cycle- evaluated are not significantly increased. Technical Specification 6.9.3.1. specific calculation performed by General 2. The proposed amendment would not Based on the cycle-specific calculation Electric, a safety limit minimum critical create the possibility of a new or different performed by General Electric, a safety limit power ratio value of 1.10 has been kind of accident from any accident minimum critical power ratio value of 1.10 established for the GE13 fuel type for previously evaluated. has been established for the GE13 fuel type Brunswick Unit 1 Cycle 11 operation. The Proposed Change 1: for Unit 1 Cycle 11 operation. This cycle- cycle-specific calculation has been performed The GE13 fuel assembly has been designed specific calculation has been performed in accordance with the methodology in and complies with the acceptance criteria based on the methodology contained in Revision 12 of NEDE-24011. This cycle- contained in General Electric Nuclear Revision 12 of NEDE-24011-P-A. The new specific calculation has demonstrated that a Energy’s standard application for reactor fuel GE13 safety limit minimum critical power safety limit minimum critical power ratio (GESTAR-II), which provides the latest ratio value of 1.10 for Unit 1 Cycle 11 value of 1.10 will ensure that 99.9 percent of acceptance criteria for new General Electric operation is based on the same fuel cladding the fuel rods avoid boiling transition during fuel designs. The similarity of the GE13 fuel integrity safety limit criteria as that for the a transient event when all uncertainties are design to the previously accepted GE11 fuel GE11 safety limit minimum critical power considered. The safety limit minimum design, in conjunction with the increased ratio (i.e., that 99.9 percent of all fuel rods critical power ratio value of 1.10 assures that critical power capability of the GE13 fuel in the core are expected to avoid boiling fuel cladding protection equivalent to that design, ensure that no new mode or transition during operational transients); provided with the existing safety limit condition of plant operation is being therefore, the proposed change does not minimum critical power ratio value is authorized by the loading and use of the result in a significant reduction in the margin maintained. This ensures that the GE13 fuel type. The proposed revision of the of safety. consequences of previously evaluated safety limit minimum critical power ratio Proposed Change 2: accidents are not significantly increased. from 1.07 to 1.10 does not modify any plant As previously stated, the purpose of the The proposed revision of the safety limit controls or equipment that will change the standby liquid control is to inject a neutron minimum critical power ratio does not alter plant’s responses to any accident or transient absorbing solution into the reactor in the any plant safety-related equipment, safety as given in any current analysis. Therefore, event that a sufficient number of control rods function, or plant operations that could the proposed change to allow the loading and cannot be inserted to maintain subcriticality. change the probability of an accident. The use of the GE13 fuel type and the revision of Sufficient solution is to be injected such that change does not affect the design, materials, the safety limit minimum critical power ratio the reactor will be brought from maximum or construction standards applicable to the value from 1.07 to 1.10 will not create the rated power conditions to subcritical over the fuel bundles in a manner that could change possibility for a new or different kind of entire reactor temperature range from the probability of an accident. accident from any accident previously maximum operating to cold shutdown Proposed Change 2: evaluated. conditions. General Electric methodology The standby liquid control system provides Proposed Change 2: establishes a fuel type dependent standby a means of reactivity control that is As discussed above, the standby liquid liquid control system shutdown margin to independent of the normal reactivity control control system provides a means of reactivity account for calculational uncertainties. system. The standby liquid control system control that is independent of the normal General Electric calculations show that an in- must be capable of assuring that the reactor reactivity control system and is capable of vessel concentration of 660 ppm will provide core can be placed in a subcritical condition assuring that the reactor core can be placed a standby liquid control system minimum at any time during reactor core life. Technical in a subcritical condition at any time during shutdown margin in excess of the 3.2% delta Specification Figure 3.1.5-1 specifies the reactor core life. The proposed revision to the k value required for the GE13 fuel. To acceptable range of concentrations and sodium pentaborate concentration range does achieve an in-vessel concentration of 660 volumes for sodium pentaborate solution not modify the standby liquid control system ppm, the acceptable range of standby liquid used as a neutron absorber (i.e., for reactivity or its controls, does not modify other plant control system tank concentrations is being 42278 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices revised for the lower range of tank volumes. accident conditions. Therefore, this will be performed. This Technical Thus, the proposed revision of the standby Technical Specification change does not Specification change does not involve liquid control system sodium pentaborate increase the probability of occurrence of an components that are accident initiators and volume-concentration range ensures that accident previously evaluated. therefore will not create a new or different there will not be a significant reduction in CREFS trains A and B are utilized to kind of accident than those previously the amount of available shutdown margin control the onsite dose to personnel in the analyzed. and, therefore, not a significant reduction in Control Room. This Technical Specification 3) Involve a significant reduction in the the margin of safety. change extends the [Limiting Condition for margin of safety because: The NRC staff has reviewed the Operation] LCO duration for allowing each The purpose of CREFS trains A and B are licensee’s analysis and, based on this train to be inoperable one at a time from 7 to control the onsite dose to personnel in the review, it appears that the three days to 30 days total for the current Control Room following an accident that standards of 10 CFR 50.92(c) are surveillance interval. This change is a one involves a potential radiological release. time change to allow for the repair/ satisfied. Therefore, the NRC staff Redundant filter trains are utilized to ensure replacement work associated with the that a single active failure will not impact the proposes to determine that the corroded filter unit charcoal retaining screens ability of the system to perform its safety amendment request involves no in the high efficiency charcoal adsorber function. Since the probability of an accident significant hazards consideration. section of each train. The...normal occurring during the extended Technical Local Public Document Room preventative maintenance and testing [will] Specification LCO for the inoperable train in location: University of North Carolina at be performed on the operable CREFS train conjunction with the probability that the Wilmington, William Madison Randall just prior to taking the [opposite] filter train operable CREFS train will fail is the same Library, 601 S. College Road, out of service for the modification. This order of magnitude as for the current LCO, Wilmington, North Carolina 28403- action will ensure that the remaining then the proposed Technical Specification subsystem is operable and ensure maximum 3297. change has minimal impact on the safe reliability of the system. The Technical operation of the plant. The CREFS trains Attorney for licensee: William D. Specification change will not affect onsite Johnson, Vice President and Senior were both determined operable following dose if a [design-basis accident] DBA occurs their last surveillance and no events have Counsel, Carolina Power & Light and the operating filter unit does not fail. The occurred at the plant to indicate that they Company, Post Office Box 1551, operable filter unit will be sufficient to may be inoperable. Normal preventative Raleigh, North Carolina 27602 maintain the operating areas habitable. The maintenance and testing will be performed NRC Project Director: Eugene V. original LCO allowed 7 day operation with on the operable CREFS train just prior to Imbro only one operable train and is also taking the [opposite] filter train out of service susceptible to a single failure during the for the modification. This action will ensure Commonwealth Edison Company, Allowed Outage Time. The probability that a that the remaining subsystem is operable and Docket Nos. 50-373 and 50-374, LaSalle DBA will occur coupled with the single ensure maximum reliability of the system. County Station, Units 1 and 2, LaSalle failure of the operable train during the The change in surveillance intervals from 18 County, Illinois extended allowed outage time per the months to 24 months will not cause a Technical Specification change is the same significant reduction in the margin of safety, Date of amendment request: June 21, order of magnitude as for the current 7 day 1996 because the previous five surveillances have allowed outage time. Therefore, this change been satisfactory and the equipment/ Description of amendment request: does not increase the consequences of an components do not have a tendency to drift The proposed amendments would accident previously evaluated. over time. Therefore, the proposed extend the surveillance interval for TS The extension of the surveillance interval amendment will not significantly impact the 4.7.2.b and 4.7.2.d related to testing of from 18 months to 24 months extends the margin of safety. the Control Room Emergency Filtration maximum interval between TS surveillances The NRC staff has reviewed the System from 18 months to 24 months. of the filter trains from 22.5 months to 30 licensee’s analysis and, based on this The amendments would also include a months. The equipment that is affected are review, it appears that the three the CREFS filter trains A and B, which are one-time extension of the allowed comprised of HEPA filters, heaters, charcoal standards of 10 CFR 50.92(c) are outage time for the Control Room and adsorbers, and fans. This equipment has a satisfied. Therefore, the NRC staff Auxiliary Electric Equipment Room history of satisfactory surveillance testing (in- proposes to determine that the Emergency Filtration System to allow place testing and laboratory analysis of requested amendments involve no each subsystem to be inoperable for up charcoal), and has had little maintenance significant hazards consideration. to 30 days during modifications to problems for the past 5 years. Although the Local Public Document Room replace the existing deep bed charcoal SER Section 6.4.1 and the [Regulatory Guide] location: Jacobs Memorial Library, absorbers with tray-type units. RG 1.52 state that the units shall be tested Illinois Valley Community College, Basis for proposed no significant every 18 months, a review of the basis Oglesby, Illinois 61348. hazards consideration determination: documents for the testing (ANSI N510) shows Attorney for licensee: Michael I. that the 1975 edition recommended annual As required by 10 CFR 50.91(a), the testing and later editions (1980 and 1989) Miller, Esquire; Sidley and Austin, One licensee has provided its analysis of the state that testing be performed ‘‘at least once First National Plaza, Chicago, Illinois issue of no significant hazards every operating cycle’’. Therefore the 60603 consideration, which is presented extension of the surveillance intervals from NRC Project Director: Robert A. Capra below: 18 months to 24 months will not increase the Dairyland Power Cooperative (DPC), 1) Involve a significant increase in the consequences of an accident previously probability or consequences of an accident evaluated. Docket No. 50-409, LaCrosse Boiling previously evaluated because: 2) Create the possibility of a new or Water Reactor (LACBWR), Vernon This Technical Specification change does different kind of accident from any accident County, Wisconsin not involve accident initiators or initial previously evaluated because: Date of amendment request: April 10, accident assumptions. The Control Room and This Technical Specification change will 1996 Auxiliary Equipment Room Emergency allow each train of CREFS to be inoperable Description of amendment request: Filtration System (CREFS) trains A and B are one at a time for up to 30 days to repair/ post-accident atmospheric cleanup replace charcoal retaining screens and The proposed amendment would components that are designed to limit the changes surveillance intervals from 18 update the facility Possession Only radiation exposure to personnel occupying months to 24 months. Prior to the extended License and Technical Specifications to the Control Room to 5 rem or less whole LCO on a given train, the scheduled monthly reflect the permanently shutdown and body during and following all design basis surveillance and preventive maintenance defueled condition of the plant. Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices 42279

Basis for proposed no significant revises a previous submittal dated alter the scope of equipment currently hazards consideration determination: December 15, 1994 (NRC-94-0107), to required to be OPERABLE or subject to As required by 10 CFR 50.91(a), the modify the proposed TS change to be surveillance testing nor does the proposed licensee has provided its analysis of the consistent with NRC Administrative change affect any instrument setpoints or equipment safety functions. Therefore, the issue of no significant hazards Letter 95-06, ‘‘Relocation of Technical change does not involve a significant consideration, which is presented Specifications Administrative Controls reduction in a margin of safety. below: Related to Quality Assurance,’’ the DPC proposes to modify the LACBWR Improved Standard TS (ISTS), and The NRC staff has reviewed the Technical Specifications to more accurately pending changes to the ISTS. The licensee’s analysis and, based on this reflect the permanently shutdown, defueled, previous submittal was noticed in the review, it appears that the three possession-only status of the facility. Federal Register on June 6, 1995 (60 FR Analysis of no significant hazards standards of 10 CFR 50.92(c) are consideration: 29873). satisfied. Therefore, the NRC staff 1. The proposed changes do not create a Basis for proposed no significant proposes to determine that the significant increase in the probability or hazards consideration determination: amendment request involves no consequences of an accident previously As required by 10 CFR 50.91(a), the significant hazards consideration. evaluated. licensee has provided its analysis of the Local Public Document Room The proposed changes delete system issue of no significant hazards location: Monroe County Library requirements that are no longer necessary to consideration, which is presented System, 3700 South Custer Road, prevent, or mitigate the consequences of, a below: Monroe, Michigan 48161 credible SAFSTOR accident as described in 1. The proposed changes do not involve a our current SAFSTOR Accident Analysis. Attorney for licensee: John Flynn, significant increase in the probability or Esq., Detroit Edison Company, 2000 2. The proposed changes do not create the consequences of an accident previously possibility of a new or different kind of evaluated because the proposed changes are Second Avenue, Detroit, Michigan accident from any accident previously administrative in nature. None of the 48226 evaluated. proposed changes involve a physical NRC Project Director: Mark Reinhart The proposed changes are either modification to the plant, a new mode of administrative in nature or were made based operation or a change to the UFSAR Entergy Operations, Inc., Docket No. on the analysis of previously evaluated [Updated Final Safety Analysis Report] 50-313, Arkansas Nuclear One, Unit accident scenarios. In no other way do they transient analyses. No Limiting Condition for No. 1, Pope County, Arkansas change the design or operation of the facility Operation, ACTION statement or Date of amendment request: April 29, and therefore do not create the possibility of Surveillance Requirement is affected by any a new or different kind of accident from any 1996 of the proposed changes. Description of amendment request: previously evaluated. Also, these proposed changes, in 3. The proposed changes do not result in themselves, do not reduce the level of The proposed amendment revises the a significant reduction in the margin of qualification or training such that personnel permissible values of the maximum and safety. requirements would be decreased. Therefore, minimum pressurizer water levels and The changes incorporate into the proposed this change is administrative in nature and incorporates a graph to display these Technical Specifications the margin of safety does not involve a significant increase in the values for various operating conditions. associated with the current SAFSTOR probability or consequences of an accident The amendment also revises the Bases accident analysis and thus don’t involve a previously evaluated. Further, the proposed section of the Technical Specification. significant reduction in the margin of safety. changes do not alter the design, function, or The Bases changes revise the acceptable The NRC staff has reviewed the operation of any plant component and value of the as-found tolerance for the licensee’s analysis, and based on this therefore, do not affect the consequences of settings of the pressurizer safety valves review, it appears that the three any previously evaluated accident. and change the value of flowrate standards of 50.92(c) are satisfied. 2. The proposed changes do not create the through the pressurizer safety valves. Therefore, the NRC staff proposes to possibility of a new or different kind of accident from any accident previously The moderator temperature coefficient determine that the amendment request evaluated because the proposed changes do as described in the Bases Section is involves no significant hazards not introduce a new mode of plant operation, removed. consideration. surveillance requirement or involve a Basis for proposed no significant Local Public Document Room physical modification to the plant. The hazards consideration determination: location: LaCrosse Public Library, 800 proposed changes are administrative in As required by 10 CFR 50.91(a), the Main Street, LaCrosse, Wisconsin nature. The changes propose to revise, delete licensee has provided its analysis of the 54601. or relocate the stated administrative control issue of no significant hazards Attorney for licensee: Wheeler, Van provisions from the TS to the UFSAR, plant consideration, which is presented Sickle and Anderson, Suite 801, 25 procedures or the QA [Quality Assurance] Program whereby, adequate control of below: West Main Street, Madison, Wisconsin information is maintained. Further, as stated 1. Does not Involve a Significant Increase 53703-3398 above, the proposed changes do not alter the in the Probability or Consequences of an NRC Project Director: Seymour H. design, function, or operation of any plant Accident Previously Evaluated. Weiss components and therefore, no new accident The startup accident and the rod Detroit Edison Company, Docket No. scenarios are created. withdrawal accident have been reanalyzed to 3. The proposed changes do not involve a justify the proposed increase in pressurizer 50-341, Fermi-2, Monroe County, significant reduction in a margin of safety coder safety value as-found tolerance. The Michigan because they are administrative in nature. analyses establish more appropriate Date of amendment request: July 25, None of the proposed changes involve a boundaries and re-analyze the same initiators 1996 (NRC-96-0064) physical modification to the plant, a new as are currently found in the ANO-1 Safety Description of amendment request: mode of operation or a change to the UFSAR Analysis Report. Changing the as-found transient analyses. No Limiting Condition for setpoint tolerance does not change how the The proposed amendment would Operation, ACTION statement or pressurizer code safety valve operates as it relocate or delete a number of items Surveillance Requirement is affected. The will continue to be reset to 2500 psig plus or currently in the Administrative Controls proposed changes do not involve a minus 1% prior to reactor startup. Section (Section 6.0) of the technical significant reduction in a margin of safety. The acceptance criteria for these analyses specifications (TS). This submittal Additionally, the proposed change does not are that the reactor coolant system (RCS) 42280 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices pressure shall not exceed the safety limit of amendment request involves no Criterion 2 - Does Not Create the Possibility 2750 psig (110% of design pressure and that significant hazards consideration. of a New or Different Kind of Accident from the reactor thermal power remains below Local Public Document Room any Previously Evaluated. 112% Rated Power. The analyses using the location: Tomlinson Library, Arkansas The proposed change does not involve the proposed setpoint tolerance have shown that Tech University, Russellville, AR 72801. addition or modification of any plant the acceptance criteria were met and that the Attorney for licensee: Nicholas S. equipment. Also, the proposed change would consequences of the events were essentially not alter the design, configuration, or method the same as those in the ANO-1 SAR. Reynolds, Esquire, Winston and Strawn, of operation of the plant beyond the standard Analyses were performed to determine the 1400 L Street, N.W., Washington, DC functional capabilities of the equipment. pressurizer maximum water level that would 20005-3502 Therefore, this change does not create the prevent the RCS from exceeding the safety NRC Project Director: William D. possibility of a new or different kind of limit of 2750 psig in the event of either a Beckner accident from any previously evaluated. startup accident or a rod withdrawal Criterion 3 - Does Not Involve a Significant accident. More appropriate pressurizer level Entergy Operations, Inc., Docket Nos. Reduction in the Margin of Safety. requirements have been incorporated in 50-313 and 50-368, Arkansas Nuclear The proposed change does not have the accordance with these analyses. One, Unit Nos. 1 and 2 (ANO-1&2), potential for an increased dose at the site Therefore, this change does not involve a Pope County, Arkansas boundary due to a fuel handling accident. significant increase in the probability or Date of amendment request: June 28, The margin of safety as defined by 10 CFR consequences of any accident previously 1996 Part 100 has not been significantly reduced. evaluated. Closing the equipment hatch door following 2. Does Not Create the Possibility of a New Description of amendment request: an evacuation of containment further reduces or Different Kind of Accident from any The proposed amendments would the offsite doses in the event of a fuel Previously Evaluated. remove the Unit 1 and Unit 2 Technical handling accident and provides additional The proposed changes introduce no new Specification requirements to secure the margin to the calculated offsite doses. mode of plant operation. The reanalysis of containment equipment hatch during Therefore, this change does not involve a the startup accident and the rod withdrawal core alterations or fuel handling. significant reduction in the margin of safety. accident were performed using Basis for proposed no significant The NRC staff has reviewed the methodologies identical to that employed in hazards consideration determination: licensee’s analysis and, based on this the ANO-1 SAR and an improved computer As required by 10 CFR 50.91(a), the review, it appears that the three code (RELAP5/MOD2). The pressurizer code licensee has provided its analysis of the standards of 10 CFR 50.92(c) are safety valve setpoint will continue to be reset at 2500 psig plus or minus 1% prior to issue of no significant hazards satisfied. Therefore, the NRC staff reactor startup and will continue to function consideration, which is presented proposes to determine that the to maintain RCS pressure below the safety below: amendment request involves no limit of 2750 psig. Analyses were performed Criterion 1 - Does Not Involve a Significant significant hazards consideration. to determine the pressurizer maximum water Increase in the Probability or Consequences Local Public Document Room level that would prevent the RCS from of an Accident Previously Evaluated. location: Tomlinson Library, Arkansas exceeding the safety limit of 2750 psig in the The proposed change would allow the Tech University, Russellville, AR 72801 event of either a startup accident or a rod containment equipment hatch door to remain Attorney for licensee: Nicholas S. withdrawal accident. More appropriate open during fuel movement and core alterations. This door is normally closed Reynolds, Esquire, Winston and Strawn, pressurizer level requirements have been 1400 L Street, N.W., Washington, DC incorporated in accordance with these during this time period in order to prevent analyses. the escape of radioactive material in the 20005-3502 Therefore, this change does not create the event of a fuel handling accident. This door NRC Project Director: William D. possibility of a new or different kind of is not an initiator of any accident. The Beckner probability of a fuel handling accident is accident from any previously evaluated. Niagara Mohawk Power Corporation, 3. Does Not Involve a Significant unaffected by the position of the containment Reduction in the Margin of Safety. equipment hatch door. The current fuel Docket No. 50-220, Nine Mile Point The safety function of the pressurizer code handling analysis, which has been approved Nuclear Station Unit No. 1, Oswego safety valves is not altered as a result of the by the Staff for ANO-2 and submitted for County, New York proposed change in setpoint tolerance. The ANO-1, calculates maximum offsite doses to be well within the limits of 10 CFR Part 100. Date of amendment request: July 12, reanalysis of the startup accident and rod 1996 withdrawal accident have shown that with a The current fuel handling accident analysis plus or minus 3% setpoint tolerance, the results in maximum offsite doses of 63.6 and Description of amendment request: pressurizer code safety valves will function 41.8 Rem to the Thyroid and 0.902 and 0.598 The proposed amendment would to limit RCS pressure below the safety limit Rem to the whole body (sum of beta and change Technical Specification (TS) of 2750 psig. The sensitivity studies for the gamma) for ANO-1 and ANO-2, respectively. Sections 6.2.2.h and 6.2.2.i. To provide startup accident showed the acceptance This analysis assumes the entire release from adequate shift coverage without routine criteria would still be met even if one the damaged fuel is allowed to migrate to the heavy use of overtime, TS Section pressurizer code safety valve lifted at 5% site boundary unobstructed. Therefore, 6.2.2.h specifies an objective to have above 2500 psig at startup conditions. allowing the equipment hatch doors to remain open results in no change in operating personnel work ‘‘a normal 8- Additional analyses were performed to hour day, 40-hour week’’ while the determine the pressurizer maximum water consequences. Also, the calculated doses level that would prevent the RCS from during a fuel handling accident would be facility is operating. The proposed exceeding the safety limit of 2750 psig in the considerably larger than the actual doses amendment would change the objective event of either a startup accident or a rod since the calculation does not incorporate the to ‘‘an 8 to 12 hour day, nominal 40- withdrawal accident. closing of the equipment hatch door hour week.’’ Therefore, this change does not involve a following evacuation of containment. The TS Section 6.2.2.i currently states, significant reduction in the margin of safety. proposed change would significantly reduce ‘‘The General Supervisor Operations, The NRC staff has reviewed the the dose to workers in the containment in the Supervisor Operations, Station Shift event of a fuel handling accident by licensee’s analysis and, based on this expediting the containment evacuation Supervisor Nuclear, and Assistant review, it appears that the three process. Therefore, this change does not Station Shift Supervisor Nuclear shall standards of 10 CFR 50.92(c) are involve a significant increase in the hold senior reactor operator licenses.’’ satisfied. Therefore, the NRC staff probability or consequences of any accident The proposed amendment would proposes to determine that the previously evaluated. change this section to state, ‘‘The Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices 42281

Manager Operations, Station Shift with the NRC Policy Statement on working Attorney for licensee: Mark J. Supervisor Nuclear and Assistant hours (Generic Letter 82-12). No physical Wetterhahn, Esquire, Winston & Strawn, Station Shift Supervisor Nuclear shall modification of the plant is involved. As 1400 L Street, NW., Washington, DC hold senior reactor operator licenses.’’ such, the change does not introduce any new 20005-3502. failure modes or conditions that may create NRC Project Director: Jocelyn A. This change is based upon a a new or different accident. Therefore, reorganization that eliminates the operation in accordance with the proposed Mitchell, Acting Director positions of General Supervisor amendment will not create the possibility of Niagara Mohawk Power Corporation, Operations and Supervisor Operations a new or different kind of accident from any Docket No. 50-410, Nine Mile Point from the Unit 1 Operations management previously evaluated. The responsibilities of the previous Nuclear Station Unit No. 2, Oswego structure. The responsibilities of these County, New York positions will be assumed by the positions of General Supervisor Operations Manager Operations or delegated to off- and Supervisor Operations will be Date of amendment request: July 12, assimilated into the positions of the Manager 1996 shift Senior Reactor Operators. Thus, Operations and the off-shift Senior Reactor Senior Reactor Operators will report Description of amendment request: Operators. There is no physical plant The proposed amendment would directly to the Manager Operations. modification. The change does not introduce Basis for proposed no significant any new failure modes or conditions that change Technical Specification (TS) hazards consideration determination: may create a new or different accident. Section 6.2.2.i. To provide adequate As required by 10 CFR 50.91(a), the Therefore, the change does not in itself create shift coverage without routine heavy use licensee has provided its analysis of the the possibility of a new or different kind of of overtime, TS Section 6.2.2.i specifies issue of no significant hazards accident from any accident previously an objective to have operating personnel consideration, which is presented evaluated. work ‘‘a normal 8-hour day, 40-hour The operation of Nine Mile Point Unit 1, below: week’’ while the facility is operating. in accordance with the proposed The proposed amendment would The operation of Nine Mile Point Unit 1, amendment, will not involve a significant in accordance with the proposed reduction in a margin of safety. change the objective to ‘‘an 8 to 12 hour amendment, will not involve a significant Establishing operating personnel hours at day, nominal 40-hour week.’’ increase in the probability or consequence of ‘‘an 8 to 12-hour day, nominal 40-hour Basis for proposed no significant an accident previously evaluated. week,’’ provides increased flexibility in hazards consideration determination: Establishing operating personnel work scheduling and does not adversely affect As required by 10 CFR 50.91(a), the hours at, ‘‘an 8 to 12 hour day, nominal 40- their performance. This change also licensee has provided its analysis of the hour week,’’ provides enhanced continuity decreases the risk of miscommunication for normal plant operations. There has been issue of no significant hazards between shifts by reducing the number of no noticeable increase in safety related consideration, which is presented turnovers per day and increases operations problems during the trial period [The facility below: and maintenance efficiency by promoting has been implementing 12-hour operator The operation of Nine Mile Point Unit 2, continuity in ongoing plant activities. shifts for over 1 year on a trial basis]. in accordance with the proposed Overtime remains controlled by site Overtime remains controlled by site amendment, will not involve a significant administrative procedures in accordance administrative procedures in accordance increase in the probability or consequence of with the NRC Policy Statement of working with the NRC Policy Statement on working an accident previously evaluated. hours (Generic Letter 82-12). The probability hours (Generic Letter 82-12) and is consistent Establishing operating personnel work for operating personnel error due to (1) with the Improved Standard Technical hours at, ‘‘an 8 to 12 hour day, nominal 40- incomplete or insufficient turnover or (2) Specifications. The proposed change hour week,’’ allows normal plant operations interruption of in-plant maintenance and involves no physical modification of the to be managed more effectively and with testing is reduced. No physical plant plant, or alterations to any accident or enhanced continuity. There has been no modifications are involved, and none of the transient analysis [...], and the changes are noticeable increase in safety related problems precursors of previously evaluated accidents administrative in nature. Therefore, the during the trial period [The facility has been are affected. Therefore, this change will not change does not involve any significant implementing 12-hour operator shifts for involve a significant increase in the reduction in a margin of safety. over 1 year on a trial basis]. Overtime probability or consequences of an accident The assimilation of the responsibilities of remains controlled by site administrative previously evaluated. the positions of General Supervisor procedures in accordance with the NRC The assimilation of the responsibilities of Operations and Supervisor Operations, into Policy Statement on working hours (Generic the previous positions of General Supervisor the positions of the Manager Operations and Letter 82-12). The probability for operating Operations and Supervisor Operations into the off-shift Senior Reactor Operators, personnel error due to (1) incomplete or the position of Manager Operations and to effectively reduces layers of management. insufficient turnover or (2) interruption of in- off-shift Senior Reactor Operators reflects a The proposed change is consistent with plant maintenance and testing is reduced. No restructuring of the operations department, Standard Review Plan (SRP) 13.1.2-13.1.3. physical plant modifications are involved, and is essentially a reduction in layers of This administrative transformation of the and none of the precursors of previously management. This proposed change does not operations department management structure evaluated accidents are affected. Therefore, involve any physical modification to the involves no physical modification of the this change will not involve a significant plant, and does not affect any precursor of a plant or alterations to any accident or increase in the probability or consequences previously evaluated accident. Therefore, transient analysis. Therefore, this change in of an accident previously evaluated. this change will not involve a significant itself does not involve any significant The operation of Nine Mile Point Unit 2, increase in the probability or consequences reduction in a margin of safety. in accordance with the proposed of an accident previously evaluated. The NRC staff has reviewed the amendment, will not create the possibility of The operation of Nine Mile Point Unit 1, licensee’s analysis and, based on this a new or different kind of accident from any in accordance with the proposed review, it appears that the three accident previously evaluated. amendment, will not create the possibility of standards of 50.92(c) are satisfied. Establishing operating personnel hours at, a new or different kind of accident from any Therefore, the NRC staff proposes to ‘‘an 8 to 12-hour day, nominal 40-hour accident previously evaluated. week,’’ improves the quality of life for determine that the amendment request operating personnel and does not adversely Establishing operating personnel hours at Local Public Document Room ‘‘an 8 to 12-hour day, nominal 40-hour week’’ affect their performance. Overtime remains provides increased flexibility in scheduling location: Reference and Documents controlled by site administrative procedures and does not adversely affect their Department, Penfield Library, State in accordance with the NRC Policy Statement performance. Overtime remains controlled by University of New York, Oswego, New on working hours (Generic Letter 82-12). No site administrative procedures in accordance York 13126. physical modification of the plant is 42282 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices involved. As such, the change does not licensee has provided its analysis of the proposed change to allow for an alternative introduce any new failure modes or issue of no significant hazards test pressure of (Pa) does not create the conditions that may create a new or different consideration, which is presented possibility of a new or different kind of accident. Therefore, operation in accordance below: accident from any accident previously with the proposed amendment will not create I. This proposal does not involve a evaluated. the possibility of a new or different kind of significant increase in the probability or III. This change does not involve a accident from any previously evaluated. consequences of an accident previously significant reduction in a margin of safety. The operation of Nine Mile Point Unit 2, evaluated. The proposed change does not affect the in accordance with the proposed The proposed change to the allowable test acceptance criteria for the MSIV LLRT. As a amendment, will not involve a significant pressure for MSIV leak testing was reviewed result, testing at Pa in the accident direction reduction in a margin of safety. from two perspectives. First is the potential will provide an equivalent test to that which Establishing operating personnel hours at, for the change in testing pressure, and test is performed at Pa. No change in the leak ‘‘an 8 to 12-hour day, nominal 40-hour methodology, to impact testing results. The integrity of the MSIVs is anticipated as a week,’’ improves the quality of life for second perspective is the potential for a result of performing the testing at the operating personnel and does not adversely failure of the testing configuration to result alternative pressure. The potential for MSL affect their performance. This change also in undesirable consequences. Plug ejection during MSIV LLRT at Pa has decreases the risk of miscommunication Under the proposed change, an increased been evaluated and found to be bounded by between shifts and increases operations and existing accident analysis. Therefore the test pressure of 45.0 psig (Pa) in the accident maintenance efficiency by promoting direction will be used to perform Technical proposed change to allow an alternative test continuity in ongoing plant activities. Specification required MSIV leak testing. pressure, Pa, does not involve a significant Overtime remains controlled by site However, the acceptance criteria for testing is reduction in a margin of safety. administrative procedures in accordance maintained consistent with current Technical The NRC staff has reviewed the with the NRC Policy Statement on working Specifications. Therefore, the proposed licensee’s analysis and, based on this hours (Generic Letter 82-12) and is consistent change to allow a test pressure of Pa will not review, it appears that the three with the Improved Standard Technical affect the validity of leak test results. The standards of 10 CFR 50.92(c) are Specifications. The proposed change existing Technical Specification required satisfied. Therefore, the NRC staff involves no physical modification of the leak integrity of the MSIVs will be plant, or alterations to any accident or proposes to determine that the maintained under the proposed test amendment request involves no transient analysis [...], and the changes are methodology and thus the ability of the administrative in nature. Therefore, the MSIVs to act as a containment isolation significant hazards consideration. change does not involve any significant valves is not affected. Local Public Document Room reduction in a margin of safety. The proposed test pressure of Pa will be location: Osterhout Free Library, The NRC staff has reviewed the applied in the accident direction, and will Reference Department, 71 South licensee’s analysis and, based on this result in a back pressure being applied to the Franklin Street, Wilkes-Barre, PA 18701 review, it appears that the three Main Steam Line (MSL) Plugs. The potential Attorney for licensee: Jay Silberg, standards of 50.92(c) are satisfied. for MSL Plug ejection has been reviewed and Esquire, Shaw, Pittman, Potts and Therefore, the NRC staff proposes to adequate precautions have been taken to Trowbridge, 2300 N Street NW., determine that the amendment request ensure that fuel damage would not result Washington, DC 20037 from [local leak rate test] LLRT induced MSL NRC Project Director: John F. Stolz involves no significant hazards Plug ejection. The MSL Plugs are installed consideration. using a restraint ring which prevents Power Authority of The State of New Local Public Document Room inadvertent ejection. [Pennsylvania Power York, Docket No. 50-286, Indian Point location: Reference and Documents and Light Company] PP&L procedures Nuclear Generating Unit No. 3, Department, Penfield Library, State require that the restraint ring be installed as Westchester County, New York University of New York, Oswego, New a prerequisite for LLRT testing of the MSIVs York 13126. at Pa. However, in the unlikely event that the Date of amendment request: July 12, Attorney for licensee: Mark J. MSL Plug and restraint ring were installed 1996 Wetterhahn, Esquire, Winston & Strawn, improperly and then subjected to back Description of amendment request: pressurization at P , ejection could occur. If 1400 L Street, NW., Washington, DC a The proposed amendment would revise this event did occur, the MSL Plug could hit the Indian Point 3 (IP3) Technical 20005-3502. the fuel which is an accident bounded by the NRC Project Director: Jocelyn A. fuel assembly handling accident analysis Specifications (TSs) by changing the Mitchell, Acting Director addressed in [Final Safety Analysis Report] surveillance frequency requirements in FSAR Section 15.7.4. The MSL Plugs, MSL Table 4.1-1, ‘‘Minimum Frequencies for Pennsylvania Power and Light Plug Restraint Ring, and MSL Plug Insert and Checks, Calibrations, and Tests of Company, Docket Nos. 50-387 and 50- Remove Tool meet the requirements of Instrument Channels’’ to accommodate 388 Susquehanna Steam Electric NUREG 0612 and PP&L’s Heavy Loads a 24-month operating cycle. Station, Units 1 and 2, Luzerne County, Program. Basis for proposed no significant Pennsylvania Therefore, the proposal to allow an hazards consideration determination: alternative test pressure, Pa, does not involve As required by 10 CFR 50.91(a), the Date of amendment request: February a significant increase in the probability or 2, 1996 consequences of an accident previously licensee has provided its analysis of the Description of amendment request: evaluated. issue of no significant hazards This request would change Technical II. This proposal does not create the consideration, which is presented Specification (TS) 3.6.1.2 for each unit possibility of a new or different kind of below: to permit primary containment leakage accident from any accident previously (1) Does the proposed license amendment testing of the main steam isolation evaluated. involve a significant increase in the valves (MSIVs) at either 22.5 psig or 45 All components within the test volume probability or consequences of an accident psig according to the type of test to be have been evaluated for structural integrity previously analyzed? conducted. Currently the TS only under the proposed test pressures. In Response: addition, pressurization of the Main Steam The proposed changes do not involve a specifies 22.5 psig for the MSIVs’ test Line Plugs during testing will be below the significant increase in the probability or pressure. evaluated pressure. The acceptance criteria consequence of any accident previously Basis for proposed no significant for the test will be maintained, thus evaluated. The proposed changes are being hazards consideration determination: verification of the leak integrity of the MSIVs made to extend surveillance frequencies from As required by 10 CFR 50.91(a), the will not be impacted. Therefore, the 18 months to 24 months for: Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices 42283

Vapor Containment High Radiation Equipment and system design Power Authority of The State of New Monitors requirements and safety analysis acceptance York, Docket No. 50-286, Indian Point Reactor Coolant System Subcooling Margin criteria continue to be met with the proposed Nuclear Generating Unit No. 3, Monitor (SMM), new surveillance intervals. Based on the Westchester County, New York Overpressure Protection System (OPS), and above information it is concluded that the Reactor Vessel Level Indication System proposed amendment does not involve a Date of amendment request: July 12, (RVLIS). significant increase in the probability or 1996 These proposed changes are being made consequences of an accident previously Description of amendment request: using the guidance provided by Generic analyzed. The proposed amendment would Letter 91-04 to accommodate a 24-month fuel (2) Does the proposed license amendment change the Indian Point 3 (IP3) cycle. The containment radiation monitors, create the possibility of a new or different Technical Specifications (TS) relating to SMM, and RVLIS are used to provide kind of accident from any accident operator information during post-accident minimum reactor coolant system (RCS) previously evaluated? flow and maximum RCS average conditions and have no effect on event Response: initiators associated with previously The proposed changes to extend the temperature to make these parameters analyzed accidents. The OPS is used only surveillance frequencies for the above listed consistent with an assumption of 100% when the plant is shutdown, with RCS instrument channel do not create the helium release from the boron coating of [reactor coolant system] temperature below a the integral fuel burnable absorber low temperature limit, and the RCS is not possibility of a new or different kind of vented. The function of the OPS is to protect accident from any previously evaluated. The (IFBA) rods. the RCS from Low Temperature increased surveillance frequencies were Basis for proposed no significant Overpressurization (LTOP) transients and has evaluated based on past equipment hazards consideration determination: no effect on accident initiators. No credit is performance and do not require any plant As required by 10 CFR 50.91(a), the taken in the IP3 safety analyses for accident hardware changes or changes in system licensee has provided its analysis of the mitigation effects that might result from use operation. There are no new failure modes issue of no significant hazards of these instrument channels. Updated introduced as a result of extending these consideration, which is presented calculations and evaluations to assess the surveillance intervals, which could lead to the creation of new or different kinds of below: proposed increase in the surveillance (1) Does the proposed license amendment intervals demonstrate that the effectiveness accident. involve a significant increase in the of these instrument channels in fulfilling (3) Does the proposed amendment involve probability or consequences of any accident their respective functions is not reduced. The a significant reduction in a margin of safety? previously evaluated? containment high radiation monitors are Response: The proposed changes to the RCS used for post accident monitoring purposes The proposed changes do not involve a minimum flow and maximum Tavg to provide operators with an indication of significant reduction in a margin of safety. [A requirements will not increase the adverse conditions in containment based on decreased] surveillance frequency for the probability or consequences of an accident releases of radioactivity from the RCS to the Containment High Radiation Monitor, SMM, previously evaluated. Reference 2 [SECL-96- containment atmosphere. These monitors OPS, and RVLIS does not adversely affect the provide no signals to plant control systems 046, ‘‘IFBA Helium Release Evaluation for performance of safety-related systems, Cycle 9 Restart,’’ Westinghouse Electric or automatic safety systems used for accident equipment, or instruments and does not mitigation and have no role as an accident Corporation, dated July 8, 1996] states that, result in increased severity of accidents for the remainder of Cycle 9, all pertinent initiator. evaluated. The radiation monitor, SMM, and Use of the subcooling margin monitor and licensing basis acceptance criteria have been RVLIS are not used to support margins of met, and the margin of safety as defined in core exit thermocouples by plant operators is safety identified in the Technical specified in the Indian Point 3 Emergency the Technical Specification Bases is not Specifications. OPS provides an equipment reduced in any of the licensing basis accident Operating Procedures (EOPs) to assess post protection function to prevent inadvertent accident cooling conditions in the RCS. analyses for the assumption of a 100% overpressurization of the RCS at shutdown helium release from the IFBA rods. Reference Changes to the EOPs will be made to reflect conditions. The Low Temperature the results of the updated loop accuracy 3 [Westinghouse letter, ‘‘Technical Overpressurization (LTOP) curve in the Specification Value for T-Average,’’ INT-96- calculations for this instrumentation. These Technical Specifications represents material changes will ensure that safety analysis input 557, dated July 3, 1996] states that a stress limits based on fracture toughness reduction of maximum allowable indicated assumptions associated with subcooling requirements for ferritic steel. Analysis of the Tavg from 578.3°F to 571.5°F specifications margin, for small break LOCA [loss-of- proposed change to the OPS surveillance coolant accident], steam generator tube consistent with the more limiting frequency verified sufficient margin to the containment integrity analyses. The rupture, and steamline break, remain valid, LTOP curve and therefore does not involve and that the response strategies outlined in associated plant and technical specification a significant reduction in margin to the the Westinghouse Owners Group Emergency changes do not affect any of the mechanisms material stress limits. Response Guidelines are maintained. Core postulated in the FSAR [Final Safety exit thermocouple readings are not used for The NRC staff has reviewed the Analysis Report] to cause licensing basis input to plant safety analyses. licensee’s analysis and, based on this events. Therefore, the probability of an The OPS provides a protective function to review, it appears that the three accident previously evaluated has not prevent RCS pressure limits from being standards of 50.92(c) are satisfied. increased. Because design limitations continue to be met, and the integrity of the exceeded while the plant is shutdown and Therefore, the NRC staff proposes to the RCS is being maintained at a low RCS pressure boundary is not challenged, the temperature and not vented. Failure of the determine that the amendment request assumptions employed in the calculation of OPS is not assumed to be an accident involves no significant hazards the offsite radiological doses remain valid. initiator in the plant safety analyses. consideration. Therefore, the consequences of an accident The change to the RVLIS calibration Local Public Document Room previously evaluated will not be increased. interval does not affect design or operation of location: White Plains Public Library, (2) Does the proposed license amendment plant systems and will not affect the create the possibility of a new or different probability of accidents. Revised loop 100 Martine Avenue, White Plains, New kind of accident from any previously accuracy calculations have demonstrated that York 10601. evaluated? operator actions for responding to postulated Attorney for licensee: Mr. Charles M. The proposed changes to the RCS accidents using RVLIS in conjunction with Pratt, 10 Columbus Circle, New York, minimum flow and maximum Tavg the Indian Point 3 EOPs will remain New York 10019. requirements do not create the possibility of consistent with the accuracy requirements a new or different kind of accident from any RVLIS. The consequences of a previously NRC Project Director: Jocelyn A. previously evaluated. Reference 2 states that, evaluated accident will not be affected. Mitchell, Acting Director for the remainder of Cycle 9, all pertinent 42284 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices licensing basis acceptance criteria have been modification of reactor vessel water kind of accident from any accident met, and the margin of safety as defined in level instrumentation requested by NRC previously evaluated. the Technical Specification Bases is not Bulletin 93-03. Part B deletes technical Part A: The proposed Technical reduced in any of the licensing basis accident specification requirements associated Specification change to remove the analyses for the assumption of a 100% temporary revisions, which were in place to helium release from the IFBA. Reference 3 with Amendment 228, issued on modify the reactor vessel water level provides clarifications of the assumptions December 7, 1994, which provided a instrumentation requested by NRC Bulletin made in the design basis and restricts DNB temporary change to permit upgrade of 93-03, is administrative. The temporary temperature limits to be consistent with non- electrical equipment. The modifications limiting condition for the minimum number DNB analyses. The associated plant and associated with Parts A and C are of trip systems operable will no longer be technical specification changes do not complete. Part C provides other accurate and the minimum number operable change the plant configuration in a way administrative changes to clarify per trip system will be the same as they were which introduces a new potential hazard to requirements and to implement rule prior to November 12, 1993. No the plant (i.e., no new failure mode has been modifications to any plant equipment are changes. involved. There are no effects on system created). Therefore, an accident which is Basis for proposed no significant different than any previously evaluated will interactions made by these changes. They do not be created. hazards consideration determination: not create the possibility of a new or different (3) Does the proposed amendment involve As required by 10 CFR 50.91(a), the kind of accident from an accident previously a significant reduction in a margin of safety? licensee has provided its analysis of the evaluated. The proposed changes to the RCS issue of no significant hazards Part B: The proposed Technical minimum flow and maximum Tavg consideration, which is presented Specification change to remove the requirements do not involve a significant below: temporary revisions, which were in place to reduction in a margin of safety. Reference 2 1. The proposed amendment does not replace the 250 volt shutdown board batteries demonstrates that, for the remainder of Cycle involve a significant increase in the is administrative. The LCO to extend the 9, all pertinent licensing basis acceptance probability or consequences of an accident allowed outage time (AOT) from a five day criteria have been met, and the margin of previously evaluated. to a 45-day AOT will no longer be accurate safety as defined in the Technical Part A: The proposed Technical and the five day AOT will be the same as it Specification Bases is not reduced in any of Specification change to remove the was prior to Unit 2, Cycle 7. No the licensing basis accident analyses for the temporary revisions, which were in place to modifications to any plant equipment are assumption of a 100% helium release from modify the reactor vessel water level involved. There are no effects on system the IFBA. Reference 3 maintains the margin instrumentation requested by NRC Bulletin interactions made by these changes. They do of safety by restricting a DNB limit to bound 93-03, is administrative. The temporary not create the possibility of a new or different other analyses. Since References 2 and 3 limiting condition for the minimum number kind of accident from an accident previously demonstrate that all applicable acceptance of trip systems operable will no longer be evaluated. criteria continue to be met, the subject accurate and the minimum number operable Part C: The proposed Technical operating conditions will not involve a per trip system will be the same as they were Specifications change revises items 1 through significant reduction in a margin of safety. prior to November 12, 1993. Therefore, the 5 above (Section I, Description of the The NRC staff has reviewed the proposed changes will not significantly Proposed Change, Part C), and is increase the consequences of an accident administrative. TVA has evaluated the licensee’s analysis and, based on this proposed changes and has determined that review, it appears that the three previously evaluated. Part B: The proposed Technical they are administrative in nature. Further, it standards of 50.92(c) are satisfied. Specification change to remove the provides revisions based on an NRC Code of Therefore, the NRC staff proposes to temporary revisions, which were in place to Federal Regulations rule change. It also determine that the amendment request replace the 250 volt shutdown board batteries provides correction of administrative errors involves no significant hazards is administrative. The LCO to extend the in previous technical specification changes. consideration. allowed outage time (AOT) from a five-day to For example, the Main Steamline High Local Public Document Room a 45-day AOT will no longer be accurate and Radiation remarks in Table 3.2.A, 1.b., should have been deleted from the TS as part location: White Plains Public Library, the five day AOT will be the same as it was prior to Unit 2, Cycle 7. Therefore, the of TS-322. It also clarifies some requirements 100 Martine Avenue, White Plains, New to ensure consistent application throughout York 10601. proposed changes will not significantly increase the consequences of an accident the specifications. These changes do not Attorney for licensee: Mr. Charles M. previously evaluated. affect any of the design basis accidents. No Pratt, 10 Columbus Circle, New York, Part C: The proposed Technical modifications to any plant equipment are New York 10019. Specifications change revises items 1 through involved. There are no effects on system NRC Project Director: Jocelyn A. 5 above (Section I, Description of the interactions made by these changes. They do Mitchell, Acting Proposed Change, Part C), and is not create the possibility of a new or different administrative. TVA has evaluated the kind of accident from an accident previously Tennessee Valley Authority, Docket proposed technical specification changes and evaluated. Nos. 50-259, 50-260 and 50-296, Browns has determined that the proposed changes 3. The proposed amendment does not Ferry Nuclear Plant, Units 1, 2 and 3, are administrative in nature. Further, it involve a significant reduction in a margin of provides a revision based on an NRC Code safety. Limestone County, Alabama The proposed change is administrative in of Federal Regulations rule change. Also, the nature for Parts A, B, and C. The proposed Date of amendment request: May 3, proposed changes provide correction of change includes the deletion of temporary 1996 (TS 352) administrative errors from previous technical changes as a result of modifications to Description of amendment request: specifications. For example, the Main systems and clarification of some The proposed amendment requests Steamline High Radiation remarks in Table requirements to ensure consistent application 3.2.A, 1.b., should have been deleted from administrative changes to the Browns throughout the specifications. Further, the the TS as part of TS-322. It also clarifies some Ferry Nuclear Plant (BFN) Units 1, 2, proposed change corrects errors in previous requirements to ensure consistent application and 3 technical specifications. The TS submittals. No safety margins are affected throughout the specifications. These changes proposed amendment consists of three by these changes. do not affect any of the design basis parts, designated by the licensee as A, accidents. They do not involve an increase in The NRC staff has reviewed the B, and C. Part A deletes technical the probability or consequences of an licensee’s analysis and, based on this specification requirements associated accident previously evaluated. review, it appears that the three with BFN Unit 2 Amendment 219, 2. The proposed amendment does not standards of 10 CFR 50.92(c) are issued November 12, 1993, to permit create the possibility of a new or different satisfied. Therefore, the NRC staff Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices 42285 proposes to determine that the 2. The proposed amendment does not testing of the charcoal filter samples will amendment request involves no create the possibility of a new or different continue to be performed in accordance with significant hazards consideration. kind of accident from any accident NRC-accepted methods and acceptance Local Public Document Room previously evaluated. criteria, and the new test protocol will still ensure filter efficiency is maintained equal to location: Athens Public Library, South The proposed change to the Technical Specification requirements for the safety or greater than 90%. There are no changes to Street,Athens, Alabama 35611 limit minimum critical power ratio does not the emergency exhaust system and it will Attorney for licensee: General involve a modification to plant equipment. continue to function in a manner consistent Counsel, Tennessee Valley Authority, No new failure modes are introduced. There with the safety analysis assumptions and the 400 West Summit Hill Drive, ET l0H, is no effect on the function of any plant plant design basis. There will be no Knoxville, Tennessee 37902 system and no new system interactions are degradation in the performance of or an NRC Project Director: Frederick J. introduced by this change. Therefore, the increase in the number of challenges to Hebdon proposed amendment does not create the equipment assumed to function during an Local Public Document Room possibility of a new or different kind of accident. Therefore, the proposed changes location: Athens Public Library, South accident from any accident previously will not increase the probability or consequences of an accident previously Street,Athens, Alabama 35611 evaluated. 3. The proposed amendment does not evaluated. Attorney for licensee: General 2. The proposed change does not create the Counsel, Tennessee Valley Authority, involve a significant reduction in a margin of safety. possibility of a new or different kind of 400 West Summit Hill Drive, ET l0H, The proposed change will ensure that accident from any accident previously Knoxville, Tennessee 37902 during any anticipated operational transient, evaluated. NRC Project Director: Frederick J. at least 99.9% of the fuel rods would be The changes to the surveillance Hebdon expected to avoid boiling transition which is requirements are being made to adopt current NRC-accepted methods of testing charcoal Tennessee Valley Authority, Docket consistent with the licensing basis. Since the margin [of] safety is being increased with this samples. These changes will not affect the Nos. 50-259, 50-260 and 50-296, Browns change, the proposed amendment does not method of operation of the applicable Ferry Nuclear Plant, Units 1, 2 and 3, involve a reduction in a margin of safety. systems and the laboratory testing will Limestone County, Alabama The NRC staff has reviewed the continue to demonstrate the required adsorber performance after a design-basis Date of amendment request: June 21, licensee’s analysis and, based on this LOCA [loss-of-coolant accident] or fuel 1996 (TS 377) review, it appears that the three handling accident. No new or different kind Description of amendment request: standards of 10 CFR 50.92(c) are of accident from any previously evaluated The proposed amendment provides a satisfied. Therefore, the NRC staff will be created. new minimum critical power ratio proposes to determine that the 3. The proposed change does not involve safety limit to replace the current non- amendment request involves no a significant reduction in a margin of safety. conservative value. The amendment significant hazards consideration. The new charcoal adsorber sample also updates the technical specification Local Public Document Room laboratory testing protocol is more stringent than the current testing practice and meets bases to clarify the usage of the residual location: Athens Public Library, South current NRC-approved test methods. The heat removal supplemental spent fuel Street, Athens, Alabama 35611 new testing criteria will continue to pool cooling mode. Attorney for licensee: General demonstrate the required adsorber Basis for proposed no significant Counsel, Tennessee Valley Authority, performance after a design-basis LOCA or hazards consideration determination: 400 West Summit Hill Drive, ET llH, fuel handling accident and will not affect the As required by 10 CFR 50.91(a), the Knoxville, Tennessee 37902 filter system performance. Therefore, this licensee has provided its analysis of the NRC Project Director: Frederick J. change will not reduce the margin of safety issue of no significant hazards Hebdon of the emergency exhaust system filter consideration, which is presented operation. The NRC staff has reviewed the below: Union Electric Company, Docket No. 1. The proposed amendment does not 50-483, Callaway Plant, Unit 1, licensee’s analysis and, based on this involve a significant increase in the Callaway County, Missouri review, it appears that the three probability or consequences of an accident Date of application request: July 18, standards of 50.92(c) are satisfied. previously evaluated. 1996 Therefore, the NRC staff proposes to The proposed change in the Safety Limit Description of amendment request: determine that the amendment request Minimum Critical Power Ratio (SLMCPR) involves no significant hazards does not increase the frequency of the The amendment adopts ASTM D-3803- 1989 as the laboratory testing standard consideration. precursors to design basis events or Local Public Document Room for charcoal samples from the charcoal operational transients analyzed in the location: Callaway County Public Browns Ferry Final Safety Analysis Report. adsorbers in the auxiliary/fuel building Library, 710 Court Street, Fulton, Therefore, the probability of an accident emergency exhaust system. Missouri 65251 previously evaluated is not significantly Basis for proposed no significant increased. Attorney for licensee: Gerald Charnoff, hazards consideration determination: Esq., Shaw, Pittman, Potts & The proposed change in the SLMCPR As required by 10 CFR 50.91(a), the ensures that 99.9 percent of the fuel rods in Trowbridge, 2300 N Street, NW., the core are expected to avoid boiling licensee has provided its analysis of the Washington, DC 20037 transition during the most limiting issue of no significant hazards NRC Project Director: William H. anticipated operational occurrence, which is consideration, which is presented Bateman the design and licensing basis for the analysis below: of accidents and transients described in the 1. The proposed change does not involve Wisconsin Public Service Corporation, Browns Ferry Updated Final Safety Analysis a significant increase in the probability or Docket No. 50-305, Kewaunee Nuclear Report (UFSAR). It does not change the consequences of an accident previously Power Plant, Kewaunee County, nuclear safety characteristics of any safety evaluated. Wisconsin system or containment system. Therefore, the The requested change to the charcoal consequences of an accident, operator error, sample surveillance acceptance criteria for Date of amendment request: July 18, or malfunction of equipment important to the fuel building and auxiliary building 1996 safety previously evaluated in the UFSAR emergency exhaust system will not affect the Description of amendment request: has not been increased. method of operation of the system. The The proposed amendment would revise 42286 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices

Kewaunee Nuclear Power Plant (KNPP) containment with the personnel air lock for this biweekly notice or because the Technical Specification (TS) 3.8, doors open. The fuel handling accident action involved exigent circumstances. ‘‘Refueling Operations,’’ and its evaluated in USAR section 14.2.1 assumes They are repeated here because the associated Basis, by allowing the activity is discharged directly to the biweekly notice lists all amendments atmosphere at ground level. Since no credit containment personnel air lock doors to is taken for building structures, ventilation issued or proposed to be issued remain open during refueling operations systems or filtration systems, the position of involving no significant hazards as long as at least one door is capable the doors does not affect the analysis of consideration. of being closed in 30 minutes or less. record. Furthermore, one of the air lock doors For details, see the individual notice Basis for proposed no significant can still be closed following containment in the Federal Register on the day and hazards consideration determination: evacuation to terminate the release. page cited. This notice does not extend As required by 10 CFR 50.91(a), the The containment personnel air lock doors the notice period of the original notice. licensee has provided its analysis of the are components integral to the containment Public Service Electric & Gas Company, issue of no significant hazards structure. They are not accident initiators. Docket Nos. 50-272 and 50-311, Salem consideration, which is presented The proposed amendment does not create the possibility of any new or different kind of Nuclear Generating Station, Unit Nos. 1 below: accident [from any accident] previously The proposed changes were reviewed in and 2, Salem County, New Jersey evaluated. accordance with the provisions of 10 CFR 3. Involve a significant reduction in the Date of amendment request: July 12, 50.92 to determine that no significant margin of safety. 1996 hazards exist. The proposed changes will not: Maintaining the containment personnel air Brief description of amendment 1. Involve a significant increase in the request: The amendment would change probability or consequences of an accident lock doors open during REFUELING previously evaluated. OPERATIONS does not involve a significant Technical Specification 3.3.2.1, Maintaining the doors of the personnel air reduction in the margin of safety. A fuel ‘‘Engineered Safety Feature Actuation lock open during REFUELING OPERATIONS handling accident in containment is bounded System Instrumentation,’’ to reflect a does not adversely affect the probability or by a fuel handling accident in the spent fuel revised setpoint for the interlock consequences of accidents previously pool. The spent fuel pool fuel handling designated P-12. evaluated. The only applicable accident is a accident is assumed to have a sudden release Date of publication of individual of the gaseous fission products held in the fuel handling accident described in [Updated notice in Federal Register: July 23, 1996 Safety Analysis Report] USAR Section 14.2.1. voids between the pellets and cladding of all of the rods in the highest rated fuel assembly, (61 FR 38229) The fuel handling accident evaluated in the Expiration date of individual notice: USAR Section 14.2.1 assumes the accident to 100 hours following reactor shutdown. The be in the spent fuel pool in the Auxiliary accident activity leaving the spent fuel pool August 22, 1996 Building. The accident assumes a sudden is assumed to discharge directly to the Local Public Document Room release of the gaseous fission products held atmosphere at ground level. No credit is location: Salem Free Public Library, 112 in the voids between the pellets and cladding taken for existing building structures, West Broadway, Salem, NJ 08079 of all of the rods in the highest rated fuel ventilation, and filtration systems. Therefore, assembly at 100 hours following reactor there is no reduction in the current margin Notice Of Issuance Of Amendments To shutdown. The accident activity is assumed of safety. Furthermore, the release caused by Facility Operating Licenses to discharge from the spent fuel pool directly a fuel handling accident in containment can During the period since publication of to the atmosphere at ground level. No credit be terminated by closing one of the personnel the last biweekly notice, the air lock doors following containment is taken for existing building structures, Commission has issued the following ventilation, or filtration systems. A fuel evacuation. handling accident in containment is bounded The NRC staff has reviewed the amendments. The Commission has by this evaluation. Furthermore, any release licensee’s analysis and, based on this determined for each of these from a fuel handling accident in containment review, it appears that the three amendments that the application can still be terminated by closing one of the standards of 10 CFR 50.92(c) are complies with the standards and personnel air lock doors following satisfied. Therefore, the NRC staff requirements of the Atomic Energy Act containment evacuation. proposes to determine that the of 1954, as amended (the Act), and the The containment personnel air lock doors amendment request involves no Commission’s rules and regulations. are components integral to the containment The Commission has made appropriate structure. They are not accident initiators. significant hazards consideration. Therefore, the proposed amendment does not Local Public Document Room findings as required by the Act and the increase the probability of any previously location: University of Wisconsin, Commission’s rules and regulations in evaluated accident. Cofrin Library, 2420 Nicolet Drive, 10 CFR Chapter I, which are set forth in The control room operator immersion and Green Bay, Wisconsin 54311-7001 the license amendment. inhalation doses were reviewed as part of the Attorney for licensee: Bradley D. Notice of Consideration of Issuance of updated Control Habitability Evaluation Jackson, Esq., Foley and Lardner, P. O. Amendment to Facility Operating Report. The report states that thyroid and Box 1497, Madison, Wisconsin 53701- License, Proposed No Significant whole body doses received by control room 1497 Hazards Consideration Determination, operators in each of the other design basis and Opportunity for A Hearing in accidents discussed in KNPP USAR Section NRC Project Director: Gail H. Marcus 14.2 are less than the [loss of coolant connection with these actions was Previously Published Notices Of published in the Federal Register as accident] LOCA dose. This amendment does Consideration Of Issuance Of not change the results of the Control Room indicated. Habitability Evaluation Report, since the fuel Amendments To Facility Operating Unless otherwise indicated, the handling accident evaluated in KNPP USAR Licenses, Proposed No Significant Commission has determined that these Section 14.2.1 assumes a release directly to Hazards Consideration Determination, amendments satisfy the criteria for the atmosphere. This change does not And Opportunity For A Hearing categorical exclusion in accordance significantly increase the consequences of an The following notices were previously with 10 CFR 51.22. Therefore, pursuant accident previously evaluated. published as separate individual to 10 CFR 51.22(b), no environmental 2. Create the possibility of a new or different kind of accident from any accident notices. The notice content was the impact statement or environmental previously evaluated. same as above. They were published as assessment need be prepared for these The accident evaluated in USAR section individual notices either because time amendments. If the Commission has 14.2.1 bounds a fuel handling accident in did not allow the Commission to wait prepared an environmental assessment Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices 42287 under the special circumstances Facility Operating License No. NPF- Duke Power Company, et al., Docket provision in 10 CFR 51.12(b) and has 63. Amendment revises the Technical No. 50-413, Catawba Nuclear Station, made a determination based on that Specifications Unit 1, York County, South Carolina assessment, it is so indicated. Date of initial notice in Federal Date of application for amendment: For further details with respect to the Register: April 24, 1996 (61 FR 18164) January 26, 1996, as supplemented May action see (1) the applications for The Commission’s related evaluation of 6, May 20, and June 5, 1996 amendment, (2) the amendment, and (3) the amendment is contained in a Safety Brief description of amendment: The the Commission’s related letter, Safety Evaluation dated July 24, 1996. No amendment revises the Technical Evaluation and/or Environmental significant hazards consideration Specifications to permit a one-time Assessment as indicated. All of these comments received: No operation of the containment purge items are available for public inspection Local Public Document Room ventilation system during Mode 3 and 4 at the Commission’s Public Document after the steam generator replacement Room, the Gelman Building, 2120 L location: Cameron Village Regional Library, 1930 Clark Avenue, Raleigh, outage. Street, NW., Washington, DC, and at the Date of issuance: July 30, 1996 North Carolina 27605. local public document rooms for the Effective date: As of the date of particular facilities involved. Connecticut Yankee Atomic Power issuance to be implemented within 30 Carolina Power & Light Company, Company, Docket No. 50-213, Haddam days Amendment No.: 150 Docket No. 50-261, H. B. Robinson Neck Plant, Middlesex County and Northeast Nuclear Energy Company, et Facility Operating License No. NPF- Steam Electric Plant, Unit No. 2, 35: Amendment revised the Technical Darlington County, South Carolina al., Docket Nos. 50-245, 50-336, and 50- 423, Millstone Nuclear Power Station, Specifications. Date of application for amendment: Units 1, 2, and 3, New London County, Date of initial notice in Federal January 29, 1996, as supplemented June Connecticut Register: April 24, 1996 (61 FR 18165) 17, 1996. The supplemental submittals provided Brief description of amendment: The Date of application for amendments: clarifying information that did not amendment revises the technical November 22, 1995 change the scope of the January 26, specifications (TS) table 4.1-3, item 4 to Brief description of amendments: The 1996, application for amendment nor change the frequency of main steam amendments replace the title-specific the initial proposed no significant safety valve (MSSV) testing to that designation of members representing hazards consideration determination. specified in NUREG-1431, the improved specific functional areas on the Plant The Commission’s related evaluation ‘‘Standard Technical Specifications, Operating Review Committee (PORC) of the amendments is contained in a Westinghouse Plants’’ and adds the for the Haddam Neck Plant and Safety Evaluation dated July 30, 1996. MSSV test acceptance requirements. Millstone Units 1, 2, and 3 with a No significant hazards consideration Date of issuance: August 1, 1996 functional area-specific designation that comments received: No Local Public Document Room Effective date: August 1, 1996 stipulates membership qualification and location: York County Library, 138 East Amendment No.: 171 experience requirements. The Black Street, Rock Hill, South Carolina Facility Operating License No. DPR- amendments also clarify the 29730 23. Amendment revises the Technical composition of the Site Operations Specifications. Review Committee (SORC) at Millstone. Duke Power Company, Docket Nos. 50- Date of initial notice in Federal Date of issuance: July 16, 1996 369 and 50-370, McGuire Nuclear Register: February 28, 1996 (61 FR Station, Units 1 and 2, Mecklenburg 7545). The June 17, 1996, submittal Effective date: As of the date of County, North Carolina provided supplemental information that issuance, to be implemented within 60 Date of application for amendments: was not outside the scope of the days. March 4, 1996 February 28, 1996, notice. The Amendment Nos.: 190, 95, 200, 130 Brief description of amendments: The Commission’s related evaluation of the Facility Operating License Nos. DPR- amendments delete Flow Monitoring amendment is contained in a Safety 61, DPR-21, DPR-65, AND NPF-49: System from Technical Specification Evaluation dated August 1, 1996. No Amendments revised the Technical 3.4.6.1 and associated surveillance significant hazards consideration Specifications. requirements. comments received: No Date of issuance: July 29, 1996 Local Public Document Room Date of initial notice in Federal Register: February 28, 1996 (61 FR Effective date: As of the date of location: Hartsville Memorial Library, issuance to be implemented within 30 147 West College Avenue, Hartsville, 7549) The Commission’s related evaluation of the amendments is days South Carolina 29550 Amendment Nos.: 168 and 150 contained in a Safety Evaluation dated Carolina Power & Light Company, et Facility Operating License Nos. NPF- July 16, 1996. No significant hazards 9 and NPF-17: Amendments revised the al., Docket No. 50-400, Shearon Harris consideration comments received: No. Nuclear Power Plant, Unit 1, Wake and Technical Specifications. Local Public Document Room Chatham Counties, North Carolina Date of initial notice in Federal location: Russell Library, 123 Broad Register: April 24, 1996 (61 FR 18166) Date of application for amendment: Street Middletown, Connecticut 06457, The Commission’s related evaluation of March 20, 1996 for the Haddam Neck Plant, and the the amendments is contained in a Safety Brief description of amendment: To Learning Resources Center, Three Rivers Evaluation dated July 29, 1996. No relocate Technical Specification 3.3.3.2, Community-Technical College, 574 New significant hazards consideration Movable Incore Detectors, to plant London Turnpike, Norwich, comments received: No. procedures. Connecticut 06360, and Waterford Local Public Document Room Date of issuance: July 24, 1996 Library, ATTN: Vince Juliano, 49 Rope location: Atkins Library, University of Effective date: July 24, 1996 Ferry Road, Waterford, Connecticut North Carolina, Charlotte (UNCC Amendment No.: 65 06385, for Millstone 1, 2, and 3. Station), North Carolina 28223 42288 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices

Duke Power Company, Docket Nos. 50- Entergy Operations, Inc., System significant hazards consideration 369 and 50-370, McGuire Nuclear Energy Resources, Inc., South comments received: No Station, Units 1 and 2, Mecklenburg Mississippi Electric Power Association, Local Public Document Room County, North Carolina and Entergy Mississippi, Inc., Docket location: Florida International No. 50-416, Grand Gulf Nuclear University, University Park, Miami, Date of application for amendments: Station, Unit 1, Claiborne County, Florida 33199. March 4, 1996 Mississippi Brief description of amendments: The Florida Power and Light Company, amendments consist of changes to the Date of application for amendment: Docket Nos. 50-250 and 50-251, Turkey Final Safety Analysis Report for November 20, 1995, as supplemented by Point Plant Units 3 and 4, Dade County, Florida McGuire Units 1 and 2 to delete the letter dated December 15, 1995 seismic qualification requirement for Brief description of amendment: The Date of application for amendments: the Containment Atmosphere amendment revised and deleted May 28, 1996 Particulate Radiation Monitors. surveillance requirements, notes, and Brief description of amendments: action statements involved with the Date of issuance: July 30, 1996 Amendment changes Technical requirements for the drywell leak rate Specification 6.2.2.i, ‘‘Administrative Effective date: As of the date of testing, and the air lock leakage and Controls,’’ regarding Operations issuance to be implemented within 30 interlock testing in Subsections 3.6.5.1 Manager qualifications. days (Drywell), 3.6.5.2 (Drywell Air Lock), Date of issuance: July 22, 1996 Amendment Nos.: 169 and 151 and 3.6.5.3 (Drywell Isolation Valves) of Effective date: July 22, 1996 Facility Operating License Nos. NPF- the technical specifications. Amendment Nos.: 187 and 9 and NPF-17: Amendments revised the Date of issuance: August 1, 1996 181Facility Operating Licenses Nos. Final Safety Analysis Report. Effective date: August 1, 1996 DPR-31 and DPR-41: Amendments Date of initial notice in Federal Amendment No: 126 revised the Technical Specifications. Date of initial notice in Federal Register: May 8, 1996 (61 FR 20845) The Facility Operating License No. NPF- Register: June 19, 1996 (61 FR 31181) Commission’s related evaluation of the 29: Amendment revises the Technical The Commission’s related evaluation of amendments is contained in a Safety Specifications. Date of initial notice in Federal the amendments is contained in a Safety Evaluation dated July 30, 1996, and an Evaluation dated July 22, 1996. No Environmental Assessment dated July Register: May 22, 1996 (61 FR 25704) The Commission’s related evaluation of significant hazards consideration 22, 1996. No significant hazards comments received: No consideration comments received: No. the amendment is contained in a Safety Evaluation dated August 1, 1996. No Local Public Document Room Local Public Document Room significant hazards consideration location: Florida International location: Atkins Library, University of comments received: No. University, University Park, Miami, North Carolina, Charlotte (UNCC Local Public Document Room Florida 33199. Station), North Carolina 28223 location: Judge George W. Armstrong GPU Nuclear Corporation and Saxton Entergy Gulf States, Inc., Cajun Electric Library, 220 S. Commerce Street, Nuclear Experimental (SNEC) Power Cooperative, and Entergy Natchez, MS 39120. Corporation, Docket No. 50-146, Saxton Operations, Inc., Docket No. 50-458, Florida Power and Light Company, Nuclear Experimental Facility (SNEF) River Bend Station, Unit 1, West Docket Nos. 50-250 and 50-251, Turkey Date of application for amendment: Feliciana Parish, Louisiana Point Plant Units 3 and 4, Dade County, February 2, 1996, as supplemented on Date of amendment request: May 20, Florida February 28, April 24, and May 24, 1996 1996. Date of application for amendments: Brief description of amendment: The Brief description of amendment: The March 21, 1996 as supplemented May proposed amendment would (1) amendment revised the Facility 13, 1996. increase the scope of work permitted at Operating License and Appendix C to Brief description of amendments: SNEF to include asbestos removal, the license to reflect the name change Relocate requirements for Radiological removal of defunct plant electrical from Gulf States Utilities Company to Effluent Controls from Technical services, and installation of Entergy Gulf States, Inc. Specifications (TS) to the Offsite Dose decommissioning support facilities and Date of issuance: July 30, 1996 Calculation Manual or the Process systems; (2) eliminate areas within the Effective date: July 30, 1996 Control Program. New programmatic containment vessel requiring controls for radioactive effluent and Amendment No.: 88 administrative access controls; and (3) radiological environmental controls will revise the facility layout diagram to Facility Operating License No. NPF- be incorporated into the TS. Also, 47: The amendment revised the allow the exclusion area to consist of, at requirements for Gas Decay tanks and a minimum, the containment vessel operating license and Appendix C to the Explosive Gas Mixture will be placed in license. and, at a maximum, to extend to the a different area of the TS. SNEF outer security fence and to Date of initial notice in Federal Date of issuance: July 31, 1996 Register: June 19, 1996 (61 FR 31183) include on the diagram the footprint of Effective date: July 31, 1996 the proposed decommissioning support The Commission’s related evaluation of Amendment Nos.: 188 and the amendment is contained in a Safety facilities. 182Facility Operating Licenses Nos. Date of issuance: July 23, 1996 Evaluation dated July 30, 1996. No DPR-31 and DPR-41: Amendments Effective date: July 23, 1996 significant hazards consideration revised the Technical Specifications. Amendment No.: 14 comments received. No Date of initial notice in Federal Amended Facility License No. DPR-4: Local Public Document Room Register: June 19, 1966 (61 FR 31180) Amendment changed the Technical location: Government Documents The Commission’s related evaluation of Specifications. Department, Louisiana State University, the amendments is contained in a Safety Date of initial notice in Federal Baton Rouge, LA 70803 Evaluation dated July 31, 1996. No Register: June 19, 1996 (61 FR 31182). Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices 42289

The Commission’s related evaluation of Date of initial notice in Federal provided clarifying information that did the amendment is contained in a safety Register: June 19, 1996 (61 FR 31184) not change the scope of the July 26, evaluation dated July 23, 1996. No The Commission’s related evaluation of 1995, application and initial proposed significant hazards consideration the amendments is contained in a Safety no significant hazards consideration comments received: No Evaluation dated August 1, 1996. No determination. Local Public Document Room significant hazards consideration Brief description of amendments: The location: Saxton Community Library, comments received: No. amendments clarify the Technical 911 Church Street, Saxton, Local Public Document Room Specifications to allow switching of Pennsylvania 16678 location: California Polytechnic State charging and low-head safety injection Omaha Public Power District, Docket University, Robert E. Kennedy Library, pumps during unit shutdown No. 50-285, Fort Calhoun Station, Unit Government Documents and Maps conditions. These amendments also No. 1, Washington County, Nebraska Department, San Luis Obispo, California allow additional methods of rendering 93407 these same pumps incapable of injecting Date of amendment request: February into the reactor coolant system when Southern California Edison Company, 1, 1996 required for low-temperature et al., Docket Nos. 50-361 and 50-362, Brief description of amendment: The conditions. San Onofre Nuclear Generating Station, amendment revised Technical Date of issuance: July 24, 1996 Specifications to allow an increase in Unit Nos. 2 and 3, San Diego County, Effective date: July 24, 1996 the initial nominal Uranium-235 California Amendment Nos.: 202 and 183 enrichment limit for fuel assemblies Date of application for amendments: Facility Operating License Nos. NPF- which may be stored in the spent fuel June 3, 1996, as superseded by 4 and NPF-7. Amendments revised the pool. application dated June 25, 1996. Technical Specifications. Date of issuance: July 30, 1996 Brief description of amendments: Date of initial notice in Federal Effective date: July 30, 1996 These amendments revise Improved Register: August 30, 1995 (60 FR 45190) Amendment No.: 174 The Commission’s related evaluation of Facility Operating License No. DPR- Technical Specification (TS) 3.3.11, the amendments is contained in a Safety 40. Amendment revised the Technical ‘‘Post Accident Monitoring Specifications. Instrumentation (PAMI),’’ and Improved Evaluation dated July 24, 1996. No Date of initial notice in Federal TS 5.5.2.13, ‘‘Diesel Fuel Oil Testing significant hazards consideration Register: March 13, 1996 (61 FR 10396) Program.’’ Specifically, the number of comments received: No. The Commission’s related evaluation of instruments required to measure reactor Local Public Document Room the amendment is contained in a Safety coolant inlet temperature (TCold), and location: The Alderman Library, Special Evaluation dated July 30, 1996 . No reactor coolant outlet temperature (THot), Collections Department, University of significant hazards consideration will be revised from two per loop to two Virginia, Charlottesville, Virginia 22903- comments received: No. (with one cold leg indication and one 2498. Local Public Document Room hot leg indication per steam generator). Wisconsin Public Service Corporation, location: W. Dale Clark Library, 215 These changes to the Improved TS Docket No. 50-305, Kewaunee Nuclear South 15th Street, Omaha, Nebraska reinstate provisions of the current San Power Plant, Kewaunee County, 68102 Onofre Nuclear Generating Station Wisconsin (SONGS), Unit Nos. 2 and 3 TS revised Pacific Gas and Electric Company, as part of NRC Amendment Nos. 127 Date of application for amendment: Docket Nos. 50-275 and 50-323, Diablo and 116 for SONGS Units 2 and 3 May 8, 1996 Canyon Nuclear Power Plant, Unit Nos. (referred to as the Improved TS). Brief description of amendment: The 1 and 2, San Luis Obispo County, Date of issuance: August 1, 1996 amendment revises Kewaunee Nuclear California Effective date: August 1, 1996, to be Power Plant Technical Specification Date of application for amendments: implemented by August 9, 1996. (TS) 5.3, ‘‘Reactor,’’ and TS 5.4, ‘‘Fuel May 9, 1996 Amendment Nos.: Unit 2 - 130; Unit Storage,’’ by removing the enrichment Brief description of amendments: The 3 - 119 limit for reload fuel and imposing fuel amendments revised the combined Facility Operating License Nos. NPF- storage restrictions on the spent fuel Technical Specifications (TS) for the 10 and NPF-15: The amendments storage racks and the new fuel storage Diablo Canyon Nuclear Power Plant revised the Technical Specifications. racks. The revised TS are structured (DCPP), Unit Nos. 1 and 2 by revising Date of initial notice in Federal consistent with the Westinghouse Technical Specifications (TS) 3/4.3.2, Register: July 2, 1996 (61 FR 34452) The Standard Technical Specifications and ‘‘Engineered Safety Features Actuation Commission’s related evaluation of the the fuel storage restrictions are based on System Instrumentation,’’ and 3/4.6.2, amendments is contained in a Safety the criticality analyses used to support ‘‘Containment Spray System.’’ The Evaluation dated August 1, 1996. No Amendment No. 92 dated March 7, changes clarified the description of the significant hazards consideration 1991. initiation signal required for operation comments received: No. Date of issuance: July 23, 1996 of the containment spray system at Local Public Document Room Effective date: July 23, 1996 DCPP and correctly incorporated location: Main Library, University of Amendment No.: 124 changes made in previous license California, P. O. Box 19557, Irvine, Facility Operating License No. DPR- amendments. All of the changes are California 92713 43: Amendment revised the Technical administrative in nature. Specifications. Virginia Electric and Power Company, Date of initial notice in Federal Date of issuance: August 1, 1996 et al., Docket Nos. 50-338 and 50-339, Effective date: August 1, 1996 Register: June 19, 1996 (61 FR 31185) Amendment Nos.: Unit 1 - 114; Unit North Anna Power Station, Units No. 1 The Commission’s related evaluation of 2 - 112 and No. 2, Louisa County, Virginia the amendment is contained in a Safety Facility Operating License Nos. DPR- Date of application for amendments: Evaluation dated July 23, 1996. No 80 and DPR-82: The amendments July 26, 1995, as supplemented April significant hazards consideration revised the Technical Specifications. 25, 1996. The April 25, 1996, letter comments received: No. 42290 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices

Local Public Document Room Information) and 105–14 (Conform the from the assets of the Separate Account location: University of Wisconsin, Statute of Limitations on the Crediting or any other separate account (‘‘Other Cofrin Library, 2420 Nicolet Drive, of Compensation to the Statute of Account’’) established by American Green Bay, Wisconsin 54311-7001 Limitations on the Payment of taxes). Skandia to support certain flexible (2) Regulations: premium variable annuity contracts Wolf Creek Nuclear Operating A. Part 211, Pay for Time Lost. (‘‘Contracts’’) as well as other variable Corporation, Docket No. 50-482, Wolf B. Parts 211, 230 and 255 (Proposed annuity contracts issued by American Creek Generating Station, Coffey Cost Savings Analyses). Skandia that are substantially similar in County, Kansas (3) Coverage Determination—CSX all material respects to the Contracts Date of amendment request: May 1, Transportation Company—Nurse (‘‘Future Contracts’’). In addition, 1995 Consultants. Applicants request that the exemptions Brief description of amendment: This (4) CSX Intermodal, Inc. requested herein apply to any other amendment revises TS Section 6.0, (5) Proposed Draft Agreement with broker-dealer that may in the future throughout, to reflect an organization the Social Security Administration. serve as distributor of and/or principal change in which the position of Vice (6) Medicare Part B Service Contract. underwriter for Contracts or Future President Plant Operations has been (7) Press Release No. 96–8—Direct Contracts (‘‘Future Broker-Dealers’’). eliminated and the positions of Chief Deposit Required for New RRB Claims. Any Future Broker-Dealer will be a Operating Officer and Plant Manager (8) Policy for Determining member of the National Association of were created. This change assigns Competitive Areas for a Reduction-in- Securities Dealers, Inc. (‘‘NASD’’), and certain management responsibilities to Force (RIF). will be controlling, controlled by, or the Chief Operating Officer and Plant (9) Labor Member Truth in Budgeting under common control with American Manager. Status Report. Skandia. Date of issuance: August 1, 1996 FILING DATE: The application was filed Effective date: August 1, 1996, to be Portion Closed to the Public on June 17, 1996. implemented within 30 days of (A) Pending Board Appeals HEARING OR NOTIFICATION OF HEARING: An issuance. 1. Walter Coleman order granting the Application will be Amendment No.: 100 2. Grace P. Sansom issued unless the Commission orders a Facility Operating License No. NPF- The person to contact for more hearing. Interested persons may request 42. The amendment revised the information is Beatrice Ezerski, a hearing by writing to the Secretary of Technical Specifications. Secretary to the Board, Phone No. 312– the SEC and serving Applicants with a Date of initial notice in Federal 751–4920. copy of the request, personally or by Register: May 22, 1996 (61 FR 25716) Dated: August 9, 1996. mail. Hearing requests should be The Commission’s related evaluation of received by the SEC by 5:30 p.m. on Beatrice Ezerski, the amendment is contained in a Safety September 3, 1996, and should be Evaluation dated August 1, 1996. No Secretary to the Board. accompanied by proof of service on significant hazards consideration [FR Doc. 96–20818 Filed 8–12–96; 9:38 am] Applicants in the form of an affidavit or, comments received: No. BILLING CODE 7905±01±M for lawyers, a certificate of service. Local Public Document Room Hearing requests should state the nature locations: Emporia State University, of the requestor’s interest, the reason for William Allen White Library, 1200 SECURITIES AND EXCHANGE the request, and the issues contested. Commercial Street, Emporia, Kansas COMMISSION Persons may request notification of a 66801 and Washburn University School [Rel. No. IC±22127; No. 812±10204] hearing by writing to the Secretary of of Law Library, Topeka, Kansas 66621 the SEC. Dated at Rockville, Maryland, this 7th American Skandia Life Assurance ADDRESSES: Secretary, Securities and day of August 1966. For the Nuclear Regulatory Commission Corporation, et al. Exchange Commission, 450 5th Street, N.W., Washington, D.C. 20549. Steven A. Varga, Director, August 8, 1996. Applicants, M. Patricia Paez, Corporate Division of Reactor Projects - I/II, Office of AGENCY: Securities and Exchange Secretary, c/o Jeffrey M. Ulness, Esq., Nuclear Reactor Regulation Commission (‘‘SEC’’ or ‘‘Commission’’). American Skandia Life Assurance [Doc. 96–20586 Filed 8-13-96; 8:45 am] ACTION: Notice of Application for an Corporation, One Corporate Drive, BILLING CODE 7590-01-F Exemption from the Investment Shelton, Connecticut 06484–9932. Company Act of 1940 (‘‘1940 Act’’). FOR FURTHER INFORMATION CONTACT: Peter R. Marcin, Law Clerk, or Patrice APPLICANTS: American Skandia Life RAILROAD RETIREMENT BOARD M. Pitts, Special Counsel, Office of Assurance Corporation (‘‘American Insurance Products (Division of Sunshine Act Meeting Skandia’’), American Skandia Investment Management), at (202) 942– Assurance Corporation Variable Notice is hereby given that the 0670. Account B (Class 2 Sub-Accounts) Railroad Retirement Board will hold a (‘‘Separate Account’’) and American SUPPLEMENTARY INFORMATION: Following meeting on August 21, 1996, 9:00 a.m., Skandia Marketing, Inc. (‘‘Marketing’’). is a summary of the application; the at the Board’s meeting room on the 8th complete application is available for a floor of its headquarters building, 844 RELEVANT 1940 ACT SECTIONS: Order fee from the Public Reference Branch of North Rush Street, Chicago, Illinois, requested under Section 6(c) of the 1940 the SEC. 60611. The agenda for this meeting Act granting exemptions from the follows: provisions of Sections 26(a)(2)(C) and Applicants’ Representations 27(c)(2) of the 1960 Act. 1. American Skandia, a stock life Portion Open to the Public SUMMARY OF APPLICATION: Applicants insurance company, is organized in (1) Legislative Proposals 105–4 seek an order to permit the deduction of Connecticut and licensed to do business (Greater Access to Tax Return a mortality and expense risk charge in the District of Columbia and all of the Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices 42291

United States. American Skandia is a portfolio of the Funds. Purchase the Separate Account, on a daily basis, wholly owned subsidiary of American payments will be credited with the an administration charge at the rate of Skandia Investment Holding investment experience of the selected 0.15% per annum of the average daily Corporation (‘‘ASIHC’’), which in turn is Sub-accounts. In most jurisdictions, an total value of assets of the Separate wholly owned by Skandia Insurance owner also may allocate purchase Account. The sum of the maintenance Company Ltd., a Swedish corporation. payments to a fixed investment option. fee and administrative charge assessed 2. The Separate Account is a separate 7. In the accumulation phase, a death against the Separate Account will not account established by American benefit is payable upon the death of the exceed the total anticipated costs of Skandia under Connecticut law. The first Contract owner or group Contract services to be provided over the life of Separate Account is registered with the participant (if the contract is held by the Contracts, in accordance with the Commission as a unit investment trust one or more natural persons) or upon applicable standards of Rule 26a–1 under the 1940 Act, and interests in the the death of the annuitant (if the under the 1940 Act. Contracts are registered as securities contract is held by an entity and there 10. No deduction or charge will be under the Securities Act of 1933. is no contingent annuitant). made from purchase payments for sales 3. American Skandia will establish for 8. The death benefit after the earlier or distribution expenses, nor will any each investment option offered under of ten Contract years or the decedent’s sales charge be assessed on surrender or the Contract a Separate Account Class 2 reaching age 85 is the Account Value.1 withdrawal from Contracts. sub-account (‘‘Sub-account’’), which Prior to that, the death benefit is the 11. American Skandia proposes to will invest solely in a specific greater of (a) or (b), where: (a) is the deduct a daily mortality and expense corresponding portfolio of certain Account Value of the Sub-accounts and risk charge equal to an effective annual designated investment companies the Interim Value of Fixed Allocations, rate of 0.50% of the daily net asset value (‘‘Funds’’). The Funds will be registered and (b) is a minimum death benefit.2 of the Separate Account. Of this under the 1940 Act as open-end The minimum death benefit is the sum amount, approximately 0.25% is for management investment companies. of all purchase payments less the sum mortality risks and 0.25% is for expense Each Fund portfolio will have separate of all withdrawals. If a decedent was not risks. The level of this charge with investment objectives and policies. named an owner or annuitant as of or respect to the Contracts is guaranteed 4. Marketing will serve as the within 60 days of the issue date of the and cannot change without the approval distributor of and principal underwriter Contract, and did not become such as a of appropriate regulatory authorities, for the Contracts. Marketing, a wholly result of the death of a prior Contract including the SEC. American Skandia owned subsidiary of ASIHC, is owner, group Contract participant or may issue Future Contracts with a registered under the Securities annuitant, the minimum death benefit is mortality and expense risk charge not Exchange Act of 1934 as a broker-dealer exceeding 1.00%. suspended as to that person for a two- and is a member of the NASD. Future 12. American Skandia’s assumption of year period from the date he or she first Broker-Dealers also may serve as mortality risk guarantees that the became a Contract owner, group distributors of and/or principal variable annuity payments made to underwriters for Contracts and Future Contract participant or annuitant. owners will not be affected by the Contracts. 9. Prior to the annuity date, annually mortality experience of persons 5. The Contracts are individual and and upon surrender, American Skandia receiving such payments or of the group flexible premium variable annuity will deduct a maintenance fee equaling general population. American Skandia contracts. The Contracts may be used in the smaller of $35 or 2% of Account assumes this mortality risk by virtue of connection with retirement plans that Value in the Sub-account holdings annuity rates incorporated in the qualify for favorable federal income tax attributable to any particular Contract in Contracts which cannot be changed. If treatment under Section 401, Section the same proportion as each such Sub- the experience of American Skandia is 403, or Section 408 of the Internal account holding bears to the Account less favorable than its estimates based Revenue Code of 1986, as amended, or Value of the Contract. This fee may be on actuarial determination, then may be purchased on a non-tax waived under certain circumstances. American Skandia must provide monies qualified basis. During the accumulation period, from its general funds to fulfill its 6. The minimum initial payment for American Skandia also will deduct from contractual obligations. Additional a Contract is $10,000 unless the mortality risks are assumed when the Contract owner authorizes and 1 The ‘‘Account Value’’ is the value of each allocation to a Sub-Account or a fixed investment Sub-accounts decline in value resulting American Skandia accepts the use of a option prior to the annuity date, plus any earnings, in losses to American Skandia on program of periodic purchase payments and/or less any losses, distributions and charges paying death benefits. If the actual and such payments received in the first thereon, before assessment of any applicable experience is more favorable than year total American Skandia’s then maintenance fee. Account Value is determined American Skandia’s assumptions, separately for each Sub-account and for each fixed current minimum payments under such investment option and then totaled to determine however, then American Skandia will a program. Subsequent purchase Account Value for the Contract. Account Value in benefit from the gain. payments must be at least $100 except each fixed investment option on other than the 13. The expense risk undertaken by pursuant to a periodic purchase maturity date of such investment option may be American Skandia is that the actual cost calculated using a market value adjustment. payment program. There is no 2 ‘‘Fixed Allocation’’ is an allocation of Account of maintaining the contracts prior to the maximum issue age unless where Value that is to be credited a fixed rate of interest annuity date may exceed the required by law or regulation. No for a specified guarantee period during the administration charge and maintenance subsequent purchase payments are accumulation phase and is to be supported by fees assessed. Because the assets in American Skandia Life Assurance accepted after the annuity date. Corporation Separate Account D (a non-unitized administration charge and maintenance Purchasers of Contracts will not pay any separate account). ‘‘Interim Value’’ is (a) the initial fees cannot be increased by American sales charge when Contracts are value of a Fixed Allocation plus all interest credited Skandia with regard to Contracts issued, purchased or redeemed. An owner may thereon, less (b) the sum of all previous transfers American Skandia assumes the risk that and withdrawals of any type from such Fixed allocate purchase payments or account Allocation of such Interim Value plus interest these charges will be insufficient to value to one or more Sub-accounts, each thereon from the date of each withdrawal or cover actual administration and of which will invest in a corresponding transfer. maintenance costs. 42292 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices

14. If the charges for the mortality and the 1940 Act to the extent necessary to Applicants will keep, and make expense risks prove insufficient to cover permit the deduction of an annual available to the Commission, a mortality and administration and mortality and expense risk charge of memorandum setting forth the basis for maintenance costs, then the excess of .50% from the net assets of the Separate the same representation with respect to the actual expenses over the charges Account and the Other Accounts, in Future Contracts offered by the Separate assessed will result in a loss; such loss connection with the Contracts, and, Account or Other Accounts. will be borne by American Skandia. If with respect to Future Contracts, a 8. Applicants submit that their the charges prove more than sufficient maximum mortality and expense risk request for exemptive relief for to cover the actual costs, however, the charge of 1.00% per annum. Applicants deduction of the mortality and expense excess will result in a profit to also seek exemptive relief to permit risk charge from the assets of the American Skandia. American Skandia Future Broker-Dealers to serve as Separate Account, or any Other may use any profit derived from this distributors of and/or principal Accounts in connection with Contracts mortality and expense risk charge for underwriters for Contracts and Future any lawful purpose, including payment Contracts. and Future Contracts underwritten and/ or recoupment of sales and distribution 4. Applicants submit that American or distributed by Marketing or Future expenses. Skandia is entitled to reasonable Broker-Dealers, would promote 15. Should the Contract owner or compensation for its assumption of competitiveness in the variable annuity group Contract participant live in a morality and expense risks. Applicants contract market by eliminating the need jurisdiction that levies a premium tax, represent that the mortality and expense to file redundant exemptive American Skandia will pay the taxes risk charge as set forth herein, is applications, thereby reducing when due. State premium taxes may consistent with the protection of administrative expenses and range up to 3.5% of purchase payments, investors because such charge is a maximizing the efficient use of and are subject to change. reasonable and proper insurance charge. American Skandia’s resources. 16. A charge of $10 per transfer is 5. American Skandia represents that Applicants further submit that Contract assessable for each transfer after the the .50% mortality and expense risk owners and group Contract participants twelfth such transfer in an annuity year. charge is within the range of industry would not receive any benefit or Renewals of transfers of Account Value practice for comparable annuity additional protection by requiring from a Fixed Allocation at the end of its contracts. This representation is based American Skandia repeatedly to seek guarantee period are not subject to the upon an analysis of publicly available exemptive relief and that such requests transfer charge and are not counted in information about similar products, for exemptive relief would present no determining whether other transfers taking into consideration such factors issue under the 1940 Act that has not may be subject to the transfer charge.3 as, among others, the current charge already been addressed in this The fee is charged only if there is levels, the existence of charge level application. Moreover, Applicants Account Value in at least one Sub- guarantees, and guaranteed annuity submit that requiring American Skandia account immediately subsequent to rates. American Skandia will maintain to file additional applications would such transfer. at its principal offices, and make impair American Skandia’s ability available to the Commission, a Applicants’ Legal Analysis effectively to take advantage of business memorandum setting forth in detail the opportunities as they arise. 1. Section 6(c) of the 1940 Act products analyzed in the course of, and authorizes the Commission to grant an 9. The Separate Account and Other the methodology and results of, Accounts will be invested only in a exemption from any provision, rule, or Applicants’ comparative review. management investment company that regulation of the 1940 Act to the extent 6. Similarly, prior to making any undertakes, in the event it adopts a plan that the exemption is necessary or Future Contracts available through the appropriate in the public interest and Separate Account or Other Accounts, for financing distribution expenses consistent with the protection of Applicants will represent that the pursuant to Rule 12b–1 under the 1940 investors and the purposes fairly mortality and expense risk charge under Act, to have such plan formulated and intended by the policy and provisions of any such Future Contracts is within the approved by its board of directors or the 1940 Act. range of industry practice for trustees, the majority of whom are not 2. Sections 26(a)(2)(C) and 27(c)(2) of comparable contracts. In addition, ‘‘interested persons’’ of the company the 1940 Act, in relevant part, prohibit Applicants will keep, and make within the meaning of Section 2(a)(19) a registered unit investment trust, its available to the Commission, a of the 1940 Act. depositor or principal underwriter, from memorandum setting forth the basis for Conclusion selling periodic payment plan this representation. certificates unless the proceeds of all 7. Applicants acknowledge that if a For the reasons submitted above, payments, other than sales loads, are profit is realized from the mortality and Applicants submit that the exemptive deposited with a qualified bank and expense risk charge, all or a portion of relief requested is necessary or held under arrangements which prohibit such profit may be viewed as being appropriate in the public interest and any payment to the depositor or offset by distribution expenses. consistent with the protection of principal underwriter except a American Skandia has concluded that investors and the purposes fairly reasonable fee, as the Commission may there is a reasonable likelihood that the intended by the policy and provisions of prescribe, for performing bookkeeping proposed distribution financing the 1940 Act. and other administrative duties arrangements will benefit the Separate For the Commission, by the Division of normally performed by the bank itself. Accounts and Other Accounts, 3. Applicants request exemptions Investment Management, pursuant to Contracts owners, and group Contract delegated authority. from Sections 26(a)(2)(C) and 27(c)(2) of participants. American Skandia represents that it will maintain, and Margaret H. McFarland, 3 A ‘‘renewal’’ is a transaction that occurs make available to the Commission upon Deputy Secretary. automatically as of the last day of the guarantee [FR Doc. 96–20714 Filed 8–13–96; 8:45 am] period of a Fixed Allocation, unless American request, a memorandum setting forth the Skandia receives alternative instructions. basis of such conclusion. In addition, BILLING CODE 8010±01±M Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices 42293

[Investment Company Act Release No. ADDRESSES: Secretary, SEC, 450 Fifth Balanced Portfolio and the Strategy 22122; 812±10186] Street, N.W., Washington, D.C. 20549. Portfolio. The World Fund consists of PIF and PIFM, 30 Scranton Office Park, two series: the International Series and The Prudential Institutional Fund, et Moosic, Pennsylvania 18507; Jennison the Global Series. al.; Notice of Application Fund, Allocation Fund, Government 4. The PMF Funds (other than the August 7, 1996. Income Fund, MoneyMart Fund, World MoneyMart Fund) each offer four AGENCY: Securities and Exchange Fund, and PMF, One Seaport Plaza, classes of shares: Class A, Class B, Class Commission (‘‘SEC’’). New York, New York 10292; PIC and C, and Class Z. Class Z shares are Prudential, 751 Broad Street, Newark, offered to certain institutional investors ACTION: Notice of Application for New Jersey 07102; Jennison, 466 without a sales charge or rule 12b–1 fee. Exemption under the Investment Lexington Avenue, New York, New The MoneyMart Fund issues two classes Company Act of 1940 (the ‘‘Act’’). York 10017; and Mercator, 2400 East of shares, Class A and Class Z. Class Z APPLICANTS: The Prudential Institutional Commercial Boulevard, Fort shares of the MoneyMart Fund are Fund (‘‘PIF’’), Prudential Jennison Lauderdale, Florida 33308. offered without a sales charge or rule Fund, Inc. (‘‘Jennison Fund’’), FOR FURTHER INFORMATION CONTACT: 12b–1 fee. Prudential Allocation Fund (‘‘Allocation Mary Kay Frech, Senior Attorney, at 5. PMF is the investment adviser to Fund’’), Prudential Government Income (202) 942–0579, or Alison E. Baur, the PMF Funds. PMF has entered into Fund, Inc. (‘‘Government Income Branch Chief, at (202) 942–0564 a subadvisory agreement with Jennison Fund’’), Prudential MoneyMart Assets, (Division of Investment Management, whereby Jennison furnishes investment Inc. (‘‘MoneyMart Fund’’), Prudential Office of Investment Company advisory services to the Jennison Fund. World Fund, Inc. (‘‘World Fund’’), Regulation). PMF also has entered into a subadvisory Prudential Institutional Fund SUPPLEMENTARY INFORMATION: The agreement with PIC whereby PIC Management, Inc. (‘‘PIFM’’), Prudential following is a summary of the furnishes investment advisory services Mutual Fund Management, Inc. application. The complete application to the Allocation Fund, the Government (‘‘PMF’’), The Prudential Investment may be obtained for a fee from the SEC’s Income Fund, the MoneyMart Fund, Corporation (‘‘PIC’’), Jennison Public Reference Branch. and the World Fund. Associates Capital Corp. (‘‘Jennison’’), 6. PIFM, PMF, and the Subadvisers Applicants’ Representations Mercator Asset Management, L.P. each is registered as an investment (‘‘Mercator’’) and The Prudential 1. PIF is organized as a Delaware adviser under the Investment Advisers Insurance Company of America business trust and is registered under Act of 1940. PIFM, PMF, PIC, and (‘‘Prudential’’). the Act as a diversified open-end Jennison are direct or indirect wholly- RELEVANT ACT SECTIONS: Order requested management investment company. owned subsidiaries of Prudential. under section 17(b) of the Act granting Currently, PIF consists of seven separate Mercator is a limited partnership of an exemption from section 17(a). series: the Balanced Fund, the Income which Prudential, through a wholly- Fund, the Money Market Fund, the owned subsidiary, maintains a limited SUMMARY OF APPLICATION: Applicants Growth Stock Fund, the Stock Index partnership interest. request an order to permit the Jennison Fund, the International Stock Fund, and 7. Prudential beneficially owns shares Fund, the Balanced Portfolio of the the Active Balanced Fund (the ‘‘PIF in several PIF Funds. As of March 31, Allocation Fund (‘‘Balanced Portfolio’’), Funds’’). Each PIF Fund offers for sale 1996, Prudential owned 51.48% of the the Government Income Fund, the one class of shares, which are offered outstanding voting securities of the MoneyMart Fund, and the International without a sales charge or distribution or Income Fund and 47.63% of the Stock Series of the World Fund service fee. Shares of the PIF Funds are outstanding voting securities of the (‘‘International Series’’) to acquire offered exclusively to retirement Money Market Fund. Through the substantially all of the assets of programs and arrangements through separate account of the Prudential corresponding series of PIF in exchange plan sponsors, to Individual Retirement Variable Contract Investment Fund, for shares of the acquiring funds. Accounts and to certain institutional Prudential also holds 5.6% of the FILING DATES: The application was filed investors. outstanding voting securities of the on May 30, 1996 and amended on 2. PIFM is the investment adviser to Growth Stock Fund, 23.23% of the August 5, 1996. each PIF Fund. PIFM has entered into outstanding voting securities of the HEARING OR NOTIFICATION OF HEARING: An subadvisory agreements with PIC, Balanced Fund, and 12.05% of the order granting the application will be Jennison, and Mercator (together, the outstanding voting securities of the issued unless the SEC orders a hearing. ‘‘Subadvisers’’) whereby each International Stock Fund. Through its Interested persons may request a Subadviser furnishes investment employees’ savings plan, Prudential hearing by writing to the SEC’s advisory services to one or more PIF holds (on behalf of its employees) Secretary and serving applicant with a Funds. 28.93% of the outstanding voting copy of the request, personally or by 3. The Jennison Fund, Government securities of the Growth Stock Fund, mail. Hearing requests should be Income Fund, MoneyMart Fund, and 25.74% of the outstanding voting received by the SEC by 5:30 p.m. on World Fund each is organized as a securities of the Balanced Fund, and September 3, 1996, and should be Maryland corporation. The Allocation 42.21% of the outstanding voting accompanied by proof of service on the Fund is organized as a Massachusetts securities of the International Stock applicant, in the form of an affidavit or, business trust. The Jennison Fund, Fund. In addition, Prudential Securities, for lawyers, a certificate of service. Government Income Fund, MoneyMart Inc., a wholly-owned direct subsidiary Hearing requests should state the nature Fund, Allocation Fund, and World of Prudential, holds on behalf of its of the writer’s interest, the reason for the Fund (the ‘‘PMF Funds’’) each is clients, without any direct interest, request, and the issues contested. registered under the Act as a diversified more than 5.00% of the outstanding Persons may request notification of a open-end management investment shares of each PMF Fund and is hearing by writing to the SEC’s company. Currently, the Allocation registered as a broker-dealer under the Secretary. Fund consists of two series: the Securities Exchange Act of 1934. 42294 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices

8. Prudential has formed the ‘‘Money the liabilities of the Money Market or received by each of the Funds. The Management Group’’ to combine certain Fund; and (e) the International Series Boards also have concluded that the pension, investment, mutual fund, and will acquire substantially all of the Reorganizations are in the best interests annuity businesses into a single assets of the International Stock Fund in of the shareholders of the respective business group. One strategic initiative exchange for shares of the International Funds and will not result in the dilution of this combination is to present a single Series and the assumption by the of the interests of any of the existing broad mutual fund family to the pension International Series of the liabilities of shareholders of the Acquired Funds or marketplace. Consistent with this the International Stock Fund. The the Acquiring Funds. change, Prudential and the trustees of Growth Stock Fund, the Balanced Fund, 12. In recommending approval of the PIF and the trustees/directors of each the Income Fund, the Money Market Reorganizations to the shareholders of PMF Fund believe it would be in the Fund, and the International Stock Fund the Acquired Funds and in approving best interest of shareholders to hereinafter are referred to as the the terms of the proposed consolidate certain mutual funds ‘‘Acquired Funds,’’ and the Jennison Reorganizations, the Boards considered sponsored by Prudential. As a result, Fund, the Balanced Portfolio, the the following factors: (a) The each PMF Fund (the Allocation Fund Government Income Fund, the capabilities and resources of the only with respect to the Balanced MoneyMart Fund, and the International Acquiring Funds’ investment adviser, Portfolio and the World Fund only with Series are referred to as the ‘‘Acquiring principal underwriter, administrator, respect to the International Series) Funds.’’ The Acquired Funds and the and transfer agent in the areas of proposes to acquire all or substantially Acquiring Funds together are referred to marketing, investment, and shareholder all of the assets of a corresponding PIF as the ‘‘Funds,’’ and each pair of Funds servicing; (b) expense ratios and Fund in exchange for Class Z shares of participating in the Reorganization are information regarding the fees of the that PMF Fund, which will be referred to as ‘‘corresponding Funds.’’ Funds; (c) the comparative investment distributed by that PIF Fund to its 10. Subject to approval by the performance of the Acquired Funds and shareholders (each, a ‘‘Reorganization’’). shareholders of the PIF Funds at the Acquiring Funds; (d) the terms and The two remaining PIF Funds that are meetings to be held on September 6, conditions of the Reorganizations and not involved in the Reorganizations (the 1996, the closing date of the whether the Reorganizations would Stock Index Fund and the Active Reorganizations (the ‘‘Closing Date’’) is result in dilution of shareholder Balanced Fund) will not merge into a expected to be September 20, 1996. interests; (e) the advantages of PMF Fund, but will enter into new Pursuant to an Agreement and Plan of eliminating competition and investment advisory and distribution Reorganization entered into between duplication of effort inherent in contracts with PMF and related entities each Acquiring Fund and its marketing funds with the same and thereby become part of the same corresponding Acquired Fund in investment objective; (f) the ‘‘group of investment companies’’ of connection with their Reorganization compatibility of the Funds’ investment PMF, as that term is defined in rule (each, a ‘‘Plan’’), each Acquired Fund objectives, as well as service features 11a–3 under the Act. The exchange will endeavor to discharge all of its available to shareholders in the pursuant to each Reorganization will known liabilities and obligations prior respective Funds; (g) the cost incurred take place on the basis of the relative net to or as of the Closing Date. Each by the Funds as a result of the asset values per share of each PIF Fund Acquiring Fund will assume all Reorganizations; and (h) the tax liabilities, expenses, costs, charges, and consequences of the Reorganizations. and PMF Fund. reserves or obligations of its 13. A prospectus/proxy statement 9. Subject to and contingent upon corresponding Acquired Fund as of the describing the proposed Reorganizations receipt of the affirmative vote of the Closing Date. As soon as conveniently has been sent to shareholders of each holders of at least a majority of the practicable after the Closing Date, each Acquired Fund on or about July 29, outstanding shares of beneficial interest Acquired Fund will distribute pro rata 1996. Such prospectus/proxy statement in each affected PIF Fund, the following to its shareholders of record as of the discloses the fees and expenses that will Reorganizations will take place: (a) the close of business on the Closing Date the be borne by the shareholders of the Jennison Fund will acquire substantially shares of the Corresponding Acquiring Acquired Fund after the Reorganizations all of the assets of the Growth Stock Fund received by the Acquired Fund in as shareholders of the Acquiring Funds Fund in exchange for shares of the the Reorganization. The number of full and the projected expense ratios of the Jennison Fund and the assumption by and fractional shares of an Acquiring combined funds based upon estimates the Jennison Fund of the liabilities of Fund to be issued to shareholders of its developed by PMF as manager and the Growth Stock Fund; (b) the corresponding Acquired Fund will be administrator to the Acquiring Funds. Balanced Portfolio will acquire determined by dividing the net asset 14. The consummation of each substantially all of the assets of the value of that Acquired Fund by the net Reorganization is subject to the Balanced Fund in exchange for shares of asset value of a Class Z share of that conditions set forth in each Plan, the Balanced Portfolio and the corresponding Acquiring Fund as of including that the parties will have assumption by the Balanced Portfolio of 4:15 p.m. on the Closing Date. The net received exemptive relief from the SEC the liabilities of the Balanced Fund; (c) asset value per share of each Fund will with respect to the order requested the Government Income Fund will be determined by dividing its assets, herein. Each Fund shall be liable for its acquire substantially all of the assets of less liabilities, by the total number of its expenses incurred in connection with the Income Fund in exchange for shares outstanding shares. the Reorganizations (except that PIF’s of the Government Income Fund and the 11. The board of trustees of PIF and International Stock Fund will bear the assumption by the Government Income the boards of directors or trustees of the expense of its Reorganization). Expenses Fund of the liabilities of the Income Acquiring Funds (collectively, the will be allocated pro rata in proportion Fund; (d) the MoneyMart Fund will ‘‘Boards’’), including, in each case, the to each Fund’s respective assets. acquire substantially all of the assets of members of the Boards who are not Because the International Series will the Money Market Fund in exchange for interested persons, have reviewed and have no assets as of the Closing Date, shares of the MoneyMart Fund and the approved the form of each Plan, each PIF International Stock Fund assumption by the MoneyMart Fund of including the consideration to be paid shareholder will receive Class Z shares Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices 42295 of the International Series identical in of any of the existing shareholders of the issued unless the SEC orders a hearing. number and net asset value to his or her Acquired Funds or the Acquiring Interested persons may request a International Stock Fund shares. Funds. The Reorganizations are hearing by writing to the SEC’s expected to benefit each Fund’s Secretary and serving applicants with a Applicants’ Legal Analysis shareholders because of estimated lower copy of the request, personally or by 1. Section 17(a), in pertinent part, expense ratios and the expected mail. Hearing requests should be prohibits an affiliated person of a increase in size of the combined funds, received by the SEC by 5:30 p.m. on registered investment company, or any both immediately after the August 29, 1996, and should be affiliated person of such a person, acting Reorganizations and through improved accompanied by proof of service on as principal, from selling to or potential for growth in the future, which applicants, in the form of an affidavit or, purchasing from such registered should assist in each Fund’s ability to for lawyers, a certificate of service. company, or any company controlled by invest more effectively, to achieve Hearing requests should state the nature such registered company, any security certain economies of scale and, in turn, of the writer’s interest, the reason for the or other property. to potentially increase its operating request, and the issues contested. 2. Section 2(a)(3) of the Act defines efficiencies and facilitate portfolio Persons who wish to be notified of a the term ‘‘affiliated person of another management. hearing may request notification by person’’ to include (a) any person 5. Applicants believe that the terms of writing to the SEC’s Secretary. directly or indirectly owning, the Plans are fair and reasonable and do ADDRESSES: controlling, or holding with power to Secretary, SEC, 450 Fifth not involve overreaching on the part of Street, N.W., Washington, D.C. 20549. vote five percent or more of the any person concerned. In addition, the outstanding voting securities of such Applicants: the Fund, 2200 West Main proposed Reorganizations are consistent Street, Suite 900, Durham, North other person, (b) any person five percent with the policies of the respective or more of whose outstanding voting Carolina 27705; the Company, 2525 Funds recited in their respective Meridian Parkway, Suite 220, Durham, securities are directly or indirectly registration statements and reports filed owned, controlled or held with power to North Carolina 27713; and Mr. Bryan under the Act. Applicants assert that vote by such other person, and (c) any 2525 Meridian Parkway, Suite 350, granting the requested order is person directly or indirectly, Durham, North Carolina 27713. consistent with the provisions, policies controlling, controlled by, or under FOR FURTHER INFORMATION CONTACT: and purposes of the Act. common control with such other Marianne H. Khawly, Staff Attorney, at person. Section 2(a)(3) further provides For the SEC, by the Division of Investment (202) 942–0562, or Alison E. Baur, that the term ‘‘affiliated person of Management, under delegated authority. Branch Chief, at (202) 942–0564 another person’’ includes any Margaret H. McFarland, (Division of Investment Management, investment adviser of such other person Deputy Secretary. Office of Investment Company if such other person is an investment [FR Doc. 96–20719 Filed 8–13–96; 8:45 am] Regulation). company. The PIF Funds could be BILLING CODE 8010±01±M SUPPLEMENTARY INFORMATION: The deemed to be an affiliated person of an following is a summary of the affiliated person of the PMF Funds application. The complete application because of Prudential’s ownership [Rel. No. IC±22128; 812±9890] may be obtained for a fee at the SEC’s interest in the PIF Funds. Thus, the Southeast Interactive Technology Public Reference Branch. proposed Reorganizations could be Fund I, LLC, et al.; Notice of deemed to be subject to the provisions Applicants’ Representations Application of section 17(a). 1. The Fund, a North Carolina limited 3. Section 17(b) provides that the SEC August 9, 1996. liability company, is a closed-end may exempt a transaction from the AGENCY: Securities and Exchange management investment company that provisions of section 17(a) if evidence Commission (‘‘SEC’’). is registered under the Act. The Fund’s establishes that the terms of the investment objective is to seek long- ACTION: Notice of Application for proposed transaction, including the Exemption Under the Investment term capital appreciation by investing consideration to be paid, are reasonable Company Act of 1940 (the ‘‘Act’’). primarily in equity and equity-related and fair and do not involve securities of interactive information and overreaching on the part of any person APPLICANTS: Southeast Interactive visual technology companies located in concerned, and that the proposed Technology Fund I, LLC (the ‘‘Fund’’), the southeastern United States. On June transaction is consistent with the policy One Room Systems, Inc. (the 13, 1995, the Fund issued 244 shares of of the registered investment company ‘‘Company’’), and E. Lee Bryan (‘‘Mr. membership interest (‘‘Shares’’) at a concerned and with the general Bryan’’). purchase price of $25,000 per Share to purposes of the Act. RELEVANT ACT SECTIONS: Order requested 168 ‘‘accredited investors’’ in a private 4. Applicants submit that the terms of under section 17(b) of the Act for an offering conducted in accordance with the proposed Reorganizations meet the exemption from sections 17(a)(1) and (3) the provisions of Regulation D under the standards set forth in section 17(b). The of the Act. Securities Act of 1933 (the ‘‘Securities Boards of the Funds, including the Act’’). SUMMARY OF APPLICATION: members of the Boards who are not Applicants 2. Montrose Venture Partners, LLC, an interested persons, having reviewed and request an order that would permit the investment adviser that is registered approved the form of each Plan, Fund to provide a revolving line of under the Investment Advisers Act of including the consideration to be paid credit to an affiliated person of an 1940, serves as investment adviser to or received by each of the Funds. The affiliated person of the Fund. the Fund (the ‘‘Adviser’’). Three of the Boards also have concluded that the FILING DATES: The application was filed five principals of the Adviser comprise Reorganizations are in the best interests on December 13, 1995 and amended on the board of directors (the ‘‘Board’’) of of the shareholders of the respective June 19, 1996 and July 29, 1996. the Fund. Funds and that the Reorganizations will HEARING OR NOTIFICATION OF HEARING: An 3. The Company is a North Carolina not result in the dilution of the interests order granting the application will be corporation that develops and 42296 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices distributes multimedia educational and securities under the Securities Act, the person. Because Mr. Bryan is a member entertainment products. Fund will have ‘‘piggyback’’ registration of the Board of the fund, he is an 4. Mr. Bryan owns one Share of the rights with respect to any Common affiliated person of the Fund. Fund and is one of the members of the Stock acquired upon conversion of the Accordingly, the Company is an Board of the Fund. Mr. Bryan also is one Loan or exercise of the Warrant that will affiliated person of an affiliated person of the principals of the Adviser. In enable the Fund to sell Common Stock of the Fund. addition, Mr. Bryan is the Company’s pro rata with the shares of any other founder and owns 76% of the selling shareholders. 4. Section 17(b) provides that the SEC Company’s outstanding capital stock. 9. In the event the Company plans to shall exempt a proposed transaction 5. On November 2, 1995, the Adviser sell stock through a private or public from section 17(a) if evidence caused the Fund to enter into an offering, at a price per share of Common establishes that: (a) the terms of the agreement (the ‘‘Agreement’’) with the Stock of at least twice the Conversion proposed transaction are reasonable and Company, subject to the Commission’s Price, or otherwise obtain a capital fair and do not involve overreaching; (b) approval, that provides that the Fund infusion of at least $2,000,000 (the the proposed transaction is consistent will extend a revolving line of credit to ‘‘Equity Infusion’’), the Company will be with the policies of the registered the Company of up to $600,000 (the obligated to notify the Fund at least 45 investment company involved; and (c) ‘‘Loan’’). Applicants represent that Mr. days prior to the anticipated closing the proposed transaction is consistent Bryan did not participate in the date of such offering. On or before the with the general provisions of the Act. Adviser’s decision to cause the Fund to closing, the Fund may elect to convert 5. In approving the Loan, the Fund, enter into the Agreement. In addition, as the Loan into Common Stock. more fully described below, the Loan 10. Furthermore, for the one year including the disinterested directors, has substantially similar terms to a period following closing of the considered that the Company entered bridge financing arrangement (the Agreement, the Fund and the Company into the Bank Facility with the Bank. ‘‘Bank Facility’’) between the Company will agree upon a budget (the ‘‘Budget’’) The terms of the Bank Facility do not and an unaffiliated lender, First Union for the Company. The proceeds of the differ materially from the terms of the National Bank of North Carolina (the Loan will be used only for payment of Agreement except that the Bank, ‘‘Bank’’). expenses and costs in accordance with Facility does not include any equity 6. The Loan is payable in full on the the Budget. The Budget will be modified conversion feature and was not date one year from the date the first only with the consent of the Fund. accompanied by a warrant. In addition, advance is made or such earlier date as Finally, as long as the Loan is the Bank Facility will be repaid in full the Loan may become due because the outstanding, the Company is required to by the Company with the proceeds of Fund elects to accelerate the Loan upon provide financial reports to the Fund. the Loan. Upon repayment of the Bank an event of default. The Loan has an Applicants’ Legal Analysis Facility, the Bank will release any interest rate of 10% per year and is fully security interests it has in the secured with a first priority security 1. Applicants request an order under Company’s assets. Thus, applicants interest in substantially all of the section 17(b) of the Act for an believe that the Bank Facility Company’s receivables. Mr. Bryan, who exemption from sections 17(a) (1) and demonstrates that the terms of the Loan has a personal net worth in excess of the (3) of the Act. The Order would permit are equivalent to an arms-length Loan amount, will personally guarantee the Fund to provide a revolving line of transaction and are therefore reasonable the Loan. As long as there is an credit to an affiliated person, the and fair to the Fund. outstanding loan balance, the Company Company, of an affiliated person, Mr. will maintain a life insurance policy on Bryan, of the Fund. 6. In addition, the Board considered Mr. Bryan of $250,000 with the Fund as 2. Section 17(a)(1) of the Act generally the fact that the Loan is secured by the primary beneficiary, and the Fund prohibits an affiliated person of a substantially all the receivables of the may require an increase in such registered investment company or any Company and an assignment of certain coverage as a condition to advances in affiliated person of such a person, acting contract rights that are pre-approved by excess of $250,000. as principal, knowingly to sell any the Fund. Accordingly, the Board 7. In addition, the Fund will hold an security or other property to such determined that the Loan is adequately option that permits it to convert the registered company. Section 17(a)(3) secured and that its terms are reasonable principal balance of the loan to shares generally prohibits an affiliated person and fair and do not involve of common stock (‘‘Common Stock’’) of of a registered investment company or overreaching on the part of the the Company at the ‘‘Conversion Price’’ any affiliated person of such a person, Company or Mr. Bryan. described below. The Conversion Price acting as principal, to borrow money or 7. Applicants state that the Fund’s initially will be $1.00 per share and is other property from such registered registration statement specifically based upon the Company currently company. provides that it will lend money to having 6,234,302 shares of Common 3. Section 2(a)(3)(B) of the Act defines Stock issued and outstanding. The an ‘‘affiliated person’’ of another person companies located in the southeastern Conversion Price will adjust to be any person 5% or more of whose United States, in which a principal of proportionately upon any stock splits, outstanding voting securities are the Adviser has a controlling interest, combinations, dividends, or similar directly or indirectly owned, controlled, that develop interactive information and changes to the capital structure. or held with power to vote, by such visual technologies. Thus, applicants 8. The Fund also will be issued a other person. Because 76% of the assert that the Loan is consistent with warrant to purchase additional shares (a outstanding capital stock of the the investment policy of the Fund. ‘‘Warrant’’) at the Conversion Price at Company is owned by Mr. Bryan, the Applicants also believe that because of the time the Warrant is exercised. The Company is an affiliated person of Mr. the numerous safeguards present in the Warrant may be exercised only once and Bryan. Section 2(a)(3)(D) states that an terms of the Loan, the Loan does not only from the date of its issuance ‘‘affiliated person’’ of another person pose any of the abuses contemplated by through the date seven years after its includes any officer, director, partner, section 17(a) and therefore is consistent issuance. If the Company registers copartner, or employee of such other with general purposes of the Act. Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices 42297

For the Commission, by the Division of Envelope Proc- $25.00 per envelope. C. Self-Regulatory Organization’s Investment Management, under delegated essing. Statement on Comments on the authority. Distribution ...... $300.00 per month. Proposed Rule Change Received From Margaret H. McFarland, Check Issuance/ $300.00 per month Members, Participants or Others Deposit. ]. Deputy Secretary. [3)] Electronic Fee No written comments were solicited [FR Doc. 96–20715 Filed 8–13–96; 8:45 am] Access and Proc- BILLING CODE 8010±01±M essing. or received with respect to the proposed Open Order $200.00 per month. rule change. Match. III. Date of Effectiveness of the [Release No. 34±37537; File No. SR±BSE± Trade Files ...... $100.00 per month. 96±9] P & S Blotters .... $100.00 per month. Proposed Rule Change and Timing for Equity Reports ... $100.00 per month. Commission Action Self-Regulatory Organization; Notice of Remote BEA- Greater of $100.00 or Filing and Immediate Effectiveness of CON Access. monthly trans- The foregoing rule change establishes Proposed Rule Change by the Boston action fees for or changes a due, fee, or other charge Stock Exchange, Incorporated Relating trades routed imposed by the Exchange and, therefore, to Elimination of Clearing Support through terminal. has become effective pursuant to Fees ADP User’s Fee Greater of $1,200.00 Section 19(b)(3)(A)(ii) of the Act and or monthly trans- subparagraph (e) of Rule 19b–4 1 August 7, 1996. action fees. thereunder. At any time within 60 days Late Fees ...... 1.5% will be charged Pursuant to Section 19(b)(1) of the of the filing of such proposed rule Securities Exchange Act of 1934 on outstanding balances as of the change, the Commission may summarily (‘‘Act’’), 15 U.S.C. 78s(b)(1), notice is abrogate such rule change if it appears hereby given that on July 23, 1996 the last calendar day of the month. to the Commission that such action is Boston Stock Exchange, Incorporated necessary or appropriate in the public II. Self-Regulatory Organization’s (‘‘BSE’’ or ‘‘Exchange’’) filed with the interest, for the protection of investors, Securities and Exchange Commission Statement of the Purpose of, and or otherwise in furtherance of the (‘‘Commission’’) the proposed rule Statutory Basis for, the Proposed Rule purposes of the Act. change as described in Items I, II, and Change III below, which Items have been IV. Solicitation of Comments In its filing with the Commission, the prepared by the Exchange. The Exchange included statements Commission is publishing this notice to Interested persons are invited to concerning the purpose of and basis for solicit comments on the proposed rule submit written data, views, and the proposed rule change and discussed change from interested persons. arguments concerning the foregoing. any comments it received on the Persons making written submissions I. Self-Regulatory Organization’s proposed rule change. The text of these should file six copies thereof with the Statement of the Terms of Substance of statements may be examined at the Secretary, Securities and Exchange the Proposed Rule Change places specified in Item IV below. The Commission, 450 Fifth Street, NW., The Exchange proposes to amend its Exchange has prepared summaries, set Washington, DC 20549. Copies of the fee schedule pertaining to support forth in Sections A, B, and C below, of submission, all subsequent services fees, eliminating fees which are the most significant aspects of such amendments, all written statements statements. obsolete due to the discontinuation of with respect to the proposed rule the Boston Stock Exchange Clearing A. Self-Regulatory Organization’s change that are filed with the Corporation as a support facility for the Statement of the Purpose of, and Commission, and all written Depository Trust Company. The text of Statutory Basis for, the Proposed Rule communications relating to the the proposed rule change is as follows Change proposed rule change between the [deleted text is in brackets]: 1. Purpose Commission and any person, other than Membership and Other Fees those that may be withheld from the The purpose of the proposed rule (1) Membership public in accordance with the Membership Dues .... $400.00 per member- change is to eliminate fees pertaining to provisions of 5 U.S.C. 552, will be ship per quarter. support services made obsolete by the available for inspection and copying at Clearing Corporation $6,000.00 (refund- discontinuation of the Boston Stock the Commission’s Public Reference Deposit. able). Exchange Clearing Corporation as a Room. Copies of such filing will also be Account Mainte- $200.00 per month. support facility for the Depository Trust available for inspection and copying at nance. Company. the principal office of the Exchange. All Transfer of Member- $500.00 for intra- submissions should refer to File No. ship. firm or inter-firm. 2. Statutory Basis BSE Rules and CCH annual sub- SR–BSE–96–9 and should be submitted Guides. scription rate. The proposed rule change is by September 4, 1996. consistent with Section 6(b)(4) of the (2) [Support Serv- For the Commission, by the Division of Act in that it provides for the equitable ices] Market Regulation, pursuant to delegated allocation of reasonable dues, fees and [ DTC Facility. authority.2 Deposit Sheets ... $4.00 per item. other charges among its members and Deposit Items .... $1.00 per item. issuers and persons using its facilities. Margaret H. McFarland, ID Activity. Deputy Secretary. ID Trades ...... $1.00 per item. B. Self-Regulatory Organization’s [FR Doc. 96–20716 Filed 8–13–96; 8:45 am] ID Account Set- $1.00 per item. Statement on Burden on Competition Up. BILLING CODE 8010±01±M ID Account $.50 per item. The BSE does not believe that the Maintenance. proposed rule change will impose any 1 17 CFR 240.19b–4. burden on competition. 2 17 CFR 200.30(a)(12). 42298 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices

[Release No. 34±37541; File No. SR± (B) Self-Regulatory Organization’s For the Commission by the Division of MBSCC±96±04] Statement on Burden on Competition Market Regulation, pursuant to delegated authority.3 Self-Regulatory Organizations; MBS MBSCC does not believe that the Margaret H. McFarland, Clearing Corporation; Notice of Filing proposed rule change will have an Deputy Secretary. of a Proposed Rule Change To impact on or impose a burden on [FR Doc. 96–20717 Filed 8–13–96; 8:45 am] Establish Term Limits for the Chairman competition. BILLING CODE 8010±01±M of the Board of Directors (C) Self-Regulatory Organization’s August 8, 1996. Statement on Comments on the [Release No. 34±37536; File No. SR±Phlx± Pursuant to Section 19(b)(1) of the Proposed Rule Change Received From 96±17] Securities Exchange Act of 1934 Members, Participants, or Others (‘‘Act’’),1 notice is hereby given that on Self-Regulatory Organizations; Order June 24, 1996, MBS Clearing No written comments relating to the Approving a Proposed Rule Change by Corporation (‘‘MBSCC’’) filed with the proposed rule change have been the Philadelphia Stock Exchange, Inc., Securities and Exchange Commission solicited or received. MBSCC will notify Relating to Reducing the Value of the (‘‘Commission’’) the proposed rule the Commission of any written Super Cap Index comments received by MBSCC. change (File No. SR–MBSCC–96–04), as August 7, 1996. described in Items I, II, and III below, III. Date of Effectiveness of the On May 24, 1996, the Philadelphia which items have been prepared Proposed Rule Change and Timing for Stock Exchange, Inc. (‘‘Phlx’’ or primarily by MBSCC. The Commission Commission Action ‘‘Exchange’’) submitted to the Securities is publishing this notice to solicit and Exchange Commission (‘‘SEC’’ or comments on the proposed rule change Within thirty-five days of the date of ‘‘Commission’’), pursuant to Section from interested persons. publication of this notice in the Federal 19(b) of the Securities Exchange Act of I. Self-Regulatory Organization’s Register or within such longer period (i) 1934 (‘‘Act’’),1 and Rule 19b–4 Statement of the Terms of Substance of as the Commission may designate up to thereunder,2 a proposed rule change to the Proposed Rule Change ninety days of such date if it finds such reduce the value of its Super Cap Index longer period to be appropriate and (‘‘Index’’) option (‘‘HFX’’) to one-third The proposed rule change will amend publishes its reasons for so finding or its present value by tripling the divisor MBSCC’s by-laws to limit the term of (ii) as to which MBSCC consents, the used in calculating the Index. The Index office of the Chairman of the Board to Commission will: is comprised of the top five options- not more than four consecutive one year eligible common stocks of U.S. (A) By order approve such proposed terms. companies traded on the New York rule change or II. Self-Regulatory Organization’s Stock Exchange, as measured by (B) Institute proceedings to determine Statement of the Purpose of, and capitalization. The other contract whether the proposed rule change Statutory Basis for, the Proposed Rule specifications for the HFX will remain should be disapproved. Change unchanged. Notice of the proposal was published In its filing with the Commission, IV. Solicitation of Comments for comment and appeared in the 3 MBSCC included statements concerning Interested persons are invited to Federal Register on June 25, 1996. No the purpose of and basis for the submit written data, views, and comment letters were received on the proposed rule change and discussed any arguments concerning the foregoing. proposal. This order approves the Phlx’s comments it received on the proposed Persons making written submissions proposal. rule change. The text of these statements should file six copies thereof with the I. Description of the Proposal may be examined at the places specified Secretary, Securities and Exchange The Exchange began trading the HFX in Item IV below. MBSCC has prepared Commission, 450 Fifth Street, N.W., summaries, set forth in sections (A), (B), in November, 1995.4 The Index was Washington, D.C. 20549. Copies of the created with a value of 350 on its base and (C) below, of the most significant submission, all subsequent aspects of such statements.2 date of May 31, 1995 which rose to 430 amendments, all written statements on April 12, 1996. Thus, the value of the (A) Self-Regulatory Organization’s with respect to the proposed rule Index has increased 23% in less than Statement of the Purpose of, and change that are filed with the one year. Consequently, the premium Statutory Basis for, the Proposed Rule Commission, and all written for HFX options has also risen. Change communications relating to the As a result, the Exchange proposes to proposed rule change between the MBSCC believes that the proposed conduct a ‘‘three-for-one split’’ of the Commission and any person, other than term limit will be in the interest of its Index, such that the value would be those that may be withheld from the participants and is consistent with the reduced to one-third of its present public in accordance with the requirements of Section 17A of the Act value. In order to account for the split, provisions of 5 U.S.C. 552, will be and the rules and regulations the number of HFX contracts will be available for inspection and copying in thereunder because it will further the tripled, such that for each HFX contract the Commission’s Public Reference opportunity for a diversity of currently held, the holder would receive Room, 450 Fifth Street, N.W., individuals to serve as MBSCC’s three contracts at the reduced value, Washington, D.C. 20549. Copies of such Chairman of the Board and thereby filing will also be available for 3 17 CFR 200.30–3(a)(12) (1995). participate in the management of 1 15 U.S.C. 78s(b)(1). MBSCC. inspection and copying at the principal office of MBSCC. All submissions 2 17 CFR 240.19b–4. should refer to the file number SR– 3 See Securities Exchange Act Release No. 37319 1 15 U.S.C. 78s(b)(1) (1988). MBSCC–96–04 and should be submitted (June 18, 1996), 61 FR 32881 (June 25, 1996). 2 The Commission has modified the text of the 4 See Securities Exchange Act Release No. 36369 summaries prepared by MBSCC. by September 4, 1996. (October 13, 1995), 60 FR 54274 (October 20, 1995). Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices 42299 with a strike price one-third of the additional investors and create a more proposed rule change (SR–Phlx–96–17) original strike price. For instance, the active and liquid trading environment. is approved. holder of a HFX 420 call will receive For the Commission, by the Division of II. Discussion three HFX 140 calls. In addition to the Market Regulation, pursuant to delegated strike price being reduced to one-third, The Commission finds that the authority.13 the position and exercise limits proposed rule change is consistent with Margaret H. McFarland, applicable to the HFX will be tripled, the requirements of the Act and the Deputy Secretary. from 5500 contracts 5 to 16,500 rules and regulations thereunder [FR Doc. 96–20718 Filed 8–13–96; 8:45 am] contracts, for a six month period after applicable to a national securities BILLING CODE 8010±01±M the split is effectuated. After the initial exchange, and, in particular, the six month period, the position and requirements of Section 6(b)(5) of the Act.9 Specifically, the Commission exercise limits will be reduced to the TENNESSEE VALLEY AUTHORITY original 5,500 contract limit. This believes that reducing the value of the procedure is similar to the one Index will serve to promote the public Environmental Impact Statement: employed respecting equity options interest and help remove impediments Proposed Exercise of Option Purchase where the underlying security is subject to a free and open securities market, by Agreement With LSP Energy Limited to a two-for-one stock split, as well as providing a broader range of investors Partnership for Supply of Electric previous reductions in the value of with a means of hedging exposure to Energy other Phlx indexes.6 The trading symbol market risk associated with securities will remain HFX. representing the most highly capitalized AGENCY: Tennessee Valley Authority. In conjunction with the split, the companies. Further, the Commission ACTION: Notice of Intent. Exchange will list strike prices notes that reducing the value of HFX surrounding the new, lower index options should help attract additional SUMMARY: The Tennessee Valley value, pursuant to Phlx Rule 1101A. 7 investors, thus creating a more active Authority (TVA) will prepare an The Exchange will announce the and liquid trading market. The environmental impact statement (EIS) effective date by way of Exchange Commission notes that the Phlx will be for the proposed exercise of an electric memoranda to the membership, also providing market participants with energy option purchase agreement serving as notice of the strike price and adequate prior notice of the Index level (OPA) with LSP Energy Limited position limit changes.8 change in order to avoid investor Partnership. Under the terms of the 10 OPA, TVA may elect to purchase firm The Phlx states that the purpose of the confusion. electric energy provided as 750 proposal is to attract additional liquidity The Commission also believes that the megawatt (MW) of base load electric to the product in those series that public Phlx’s position and exercise limits and capacity. This energy would be customers are most interested in strike price adjustments are appropriate provided from a 750 MW (approximate trading. For example, a near-term, at- and consistent with the Act. In this capacity) natural gas-fired combustion the-money call option series currently regard, the Commission notes that the turbine combined cycle power plant trades at approximately $1,150 per position and exercise limits and strike that LSP Energy Limited Partnership has contract. The Exchange believes that price adjustments are similar to the proposed to construct and operate in the certain investors and traders currently approach used to adjust outstanding City of Batesville, Mississippi. may be impeded from trading at such options on stocks that have undergone Batesville is in Panola County and is levels. With the Index split, that same a two-for-one stock split as well as 11 about 140 miles north of Jackson, option series (once adjusted), with all reductions in value of other indexes. The Commission believes that tripling Mississippi and 50 miles south of else remaining equal, could trade at the Index’s divisor will not have an Memphis, Tennessee. The EIS will approximately $387 per contract. The adverse market impact or make trading evaluate the potential environmental Phlx believes that a reduced premium HFX options susceptible to impacts of the proposed power plant. value should encourage additional manipulation. After the split, the Index TVA wants to use the EIS process to investor interest. will continue to be comprised of the obtain the public’s comments on this The Exchange believes that Super Cap same stocks with the same weightings proposal. Index Options provide an important and will be calculated in the same DATES: Comments on the scope of the opportunity for investors to hedge and manner (except for the change in speculate upon the market risk EIS must be postmarked no later than divisor). Finally, the Phlx’s surveillance September 13, 1996. TVA will conduct associated with the underlying stocks. procedures will also remain the same. By reducing the value of the Index, such a public meeting on the scope of the It is therefore ordered, pursuant to EIS. The location and time of this investors will be able to utilize this Section 19(b)(2) of the Act,12 that the trading vehicle, while extending a meeting is announced below. ADDRESSES: Written comments should smaller outlay of capital. The Exchange 9 15 U.S.C. 78f(b)(5). believes that this, in turn, should attract 10 The Phlx will be issuing two circulars to its be sent to Greg Askew, PE, Senior membership prior to the effective date of this Specialist, National Environmental 5 See Phlx Rule 1001A(c). change. The first circular will advise the members Policy Act, Tennessee Valley Authority, generally of the reduction in value of the HFX and 6 See Securities Exchange Act Release Nos. 36577 mail stop WT 8C, 400 West Summit Hill the temporary increase in position and exercise (December 12, 1995), 60 FR 65705 (December 20, limits. The second circular, which will be issued Drive, Knoxville, Tennessee 37902– 1995) (reducing the value of the Phlx National within one week of the effective date of the change, 1499. Comments may also be e-mailed Over-the-Counter Index); and 35999 (July 20, 1995), will also list specific strike prices for the adjusted 60 FR 38387 (July 26, 1995) (reducing the value of to [email protected]. HFX options. Telephone Conversation between the Phlx Semiconductor Index). Terry McClosky, Vice President, Regulatory FOR FURTHER INFORMATION CONTACT: 7 Specifically, because the Index value would be Services, Phlx, and James T. McHale, Attorney, Ron Westmoreland, Environmental less than 500, the applicable strike price interval Office of Market Supervision, Division of Market Research Center, Tennessee Valley would be $5 in the first four months and $25 in the Regulation, on August 7, 1996. fifth month and the long-term options. See Rule Authority, mail stop CEB 4C, Muscle 11 See note 6, supra. 1101A(a). 8 See note 10, infra. 12 15 U.C.C. 78s(b)(2). 13 17 CFR 200.30–3(a)(12). 42300 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices

Shoals, Alabama 35662–1010. E-mail potentially affected by construction and public is invited to submit written may be sent to [email protected]. operation of the project. TVA’s comments or e-mail comments on the evaluation of potential environmental scope of this EIS no later than the date SUPPLEMENTARY INFORMATION: impacts due to project construction and given under the DATES section of this Project Description operation will include, but not notice and/or attend the public scoping The natural gas-fired combustion necessarily be limited to the impacts on meeting. TVA will conduct a public turbine combined cycle power plant air quality, water quality, aquatic and meeting on the scope of the EIS in proposed by LSP Energy Limited terrestrial ecology, endangered and Batesville, Mississippi on September 5, Partnership to satisfy the requirements threatened species, wetland resources, 1996. The meeting will begin at 5:00 of the OPA would be located on a 50 aesthetics and visual resources, noise, p.m. at the offices of the Tallahatchie acre site in the Batesville Industrial land use, cultural resources, and Valley Electric Power Association Park. The industrial park fronts the east socioeconomic resources. Because the located at 200 Power Drive just west of side of Mississippi Highway 35 at proposed project is to be located in an the intersection of Mississippi Highway Brewer Road and is within the industrial park, the on-site issues of 6 and U.S. Interstate Highway 55. Batesville city limits. The power plant terrestrial wildlife, vegetation, and land The agencies to be included in the would consist of two or more natural use are not likely to be important. interagency scoping are U.S. Army gas fired combustion turbine-generators, TVA’s Integrated Resource Plan, Corps of Engineers, U.S. Fish and two or more heat recovery steam Energy Vision 2020, identifies and Wildlife Service, Mississippi generators and exhaust stacks, one or evaluates TVA’s need for additional Department of Environmental Quality, more steam turbine-generators, wet energy resources and the environmental Mississippi Historical Commission, and mechanical draft cooling towers, fuel oil impacts of alternative energy resources. other federal, state and local agencies as storage tanks for backup fuel, feedwater Alternatives appropriate. and wastewater treatment systems, a Upon consideration of the scoping The results from evaluating the 161 kilovolt switchyard, a control comments, TVA will develop potential environmental impacts related building, and other minor alternatives and identify important to these issues and other important appurtenances and equipment necessary environmental issues to be addressed in issues identified in the scoping process for plant operation and maintenance. the EIS. Following analysis of the together with engineering and economic Other actions necessary for operation environmental consequences of each considerations will be used in selecting of the power plant include development alternative, TVA will prepare a draft EIS a preferred alternative. At this time, and operation of water supply and for public review and comment. Notice TVA has identified as alternatives for conveyance systems, construction and of availability of the draft EIS will be detailed evaluation in the EIS: (1) Not operation of wastewater treatment with published by the Environmental exercising the OPA (No Action), and (2) conveyance and outfall, construction Protection Agency in the Federal Exercising the OPA. and operation of one or more natural gas Register. TVA will solicit written pipeline taps and conveyances, Scoping Process comments on the draft EIS, and construction and operation of an Scoping, which is integral to the information about possible public interconnection between the plant NEPA process, is a procedure that meetings to comment on the draft EIS switchyard and the TVA Batesville solicits public input to the EIS process will be announced. TVA expects to Substation, and construction and to ensure that: (1) Issues are identified release a final EIS by May 1997. operation of improvements to the early and properly studied; (2) issues of Dated: August 8, 1996. Batesville Substation. Other little significance do not consume improvements to the TVA power Kathryn J. Jackson, substantial time and effort; (3) the draft transmission system may be necessary Senior Vice President, Resource Group. to support plant operation. EIS is thorough and balanced; and (4) [FR Doc. 96–20701 Filed 8–13–96; 8:45 am] delays caused by an inadequate EIS are BILLING CODE 8120±01±M TVA’s Integrated Resource Plan avoided. TVA’s NEPA procedures TVA’s integrated resource plan and require that the scoping process final programmatic environmental commence after a decision has been reached to prepare an EIS in order to OFFICE OF THE UNITED STATES impact statement, Energy Vision 2020, TRADE REPRESENTATIVE was completed in December 1995. provide an early and open process for Energy Vision 2020 contains determining the scope of issues to be APEC Intellectual Property Rights recommendations for meeting future addressed and for identifying the Contact Point List: Request for TVA customer energy requirements. significant issues related to a proposed Applications for Inclusion on the List Call options (option purchase action. The scope of issues to be of Private-Sector Individuals Interested agreements) are recommended as one addressed in a draft EIS will be in Intellectual Property Rights in the component of TVA’s preferred determined, in part, from written Asia-Pacific Region alternative which is a portfolio of energy comments submitted by mail, and resource options. The Energy Vision comments presented orally or in writing AGENCY: Office of the United States 2020 short-term action plan for the years at a public meeting. The preliminary Trade Representative. 1996–2002 recommends that TVA identification of reasonable alternatives ACTION: Notice; request for submission purchase call options for up to 3,000 and environmental issues is not meant of applications for inclusion on list of MW of peaking and base load capacity to be exhaustive or final. TVA considers private-sector individuals working in additions to be available in the years the scoping process to be open and the area of intellectual property rights 1998 to 2002. dynamic in the sense that alternatives protection in the Asia-Pacific region. other than those given above may Proposed Issues to be Addressed warrant study and new matters may be SUMMARY: The ad hoc working group on The EIS will describe the existing identified for potential evaluation. intellectual property operating under environmental, cultural, and The scoping process will include both the auspices of the Asia Pacific recreational resources that may be interagency and public scoping. The Economic Cooperation (APEC) forum is Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices 42301 creating a contact point list of Point List, the United States Telecommunications Systems (FTS) and individuals from the public and private Government will clarify that it does not Domestic and International Commercial sectors who work in the area of vouch for the accuracy of the Long Distance calls from the three intellectual property rights protection information submitted or the Headquarters Buildings: The Nassif and (the Contact Point List). The Office of qualifications of the individuals Transpoint Buildings and Federal the United States Trade Representative identified. Building-10A. (USTR) is notifying persons of the Irving Williamson, CATEGORIES OF RECORDS IN THE SYSTEM: Contact Point List, and invites Deputy General Counsel. Records relating to the use of the interested individuals from the private [FR Doc. 96–20674 Filed 8–13–96; 8:45 am] sector to submit an application for Department’s administrative telephones BILLING CODE 3190±01±M inclusion on the List. to place FTS and Commercial Long DATES: Applications for inclusion on the Distance calls, records indicating assignment of telephone numbers to Contact Point List should be submitted DEPARTMENT OF TRANSPORTATION on or before September 16, 1996. Departmental employees, and records relating to the location of telephones. ADDRESSES: Applications must be Office of the Secretary submitted in the form noted below to AUTHORITY FOR MAINTENANCE OF THE SYSTEM: Privacy Act of 1974: Systems of Sybia Harrison, Office of the General 49 U.S.C. 322. Counsel, Room 222, Attn: APEC IPR Records Contact Point List, Office of the U.S. PURPOSE(S): AGENCY: Operating Administrations, Trade Representative, 600 17th Street, DOT. To track usage of DOT telephones to NW., Washington, DC 20508. ACTION: Notice. place FTS and Commercial Long FOR FURTHER INFORMATION CONTACT: Distance calls, records indicating Jo Ellen Urban, Director for Intellectual SUMMARY: Notice to amend and delete assignment of telephone numbers to Property, (202) 395–6864, or Thomas systems of records. Departmental employees, and records Robertson, Associate General Counsel, EFFECTIVE DATE: August 14, 1996. relating to the location of telephones. Office of the General Counsel, (202) ADDRESSES: Send Comments to the 395–6800, Office of the U.S. Trade ROUTINE USES OF RECORDS MAINTAINED IN THE Privacy Act Officer, U.S. Department of Representative, 600 17th Street, NW., SYSTEM, INCLUDING CATEGORIES OF USERS AND Transportation, 400 7th St., SW., Washington, DC 20508. THE PURPOSES OF SUCH USES: Washington DC 20590. SUPPLEMENTARY INFORMATION: An ad hoc See Prefatory Statement of General FOR FURTHER INFORMATION CONTACT: group of intellectual property Routine Uses. Crystal Bush at (202) 366–9713. authorities from the various economies DISCLOSURE TO CONSUMER REPORTING participating in APEC has met on a SUPPLEMENTARY INFORMATION: The Department of Transportation systems AGENCIES: number of occasions to discuss the None. protection of intellectual property in the of records notices subject to the Privacy Act of 1974 (5 U.S.C. 552a), as amended, Asia-Pacific region. This ad hoc group is POLICIES AND PRACTICES FOR STORING, moving forward on a number of have been published in the Federal RETRIEVING, ACCESSING, RETAINING, AND collective actions, one of which is the Register and are available from the DISPOSING OF RECORDS IN THE SYSTEM: above mentioned address. creation of a contact point list of public STORAGE: and private sector individuals from The specific changes to the records systems being amended are set forth Magnetic tape storage via batch APEC economies engaged in the area of processing and paper copy. intellectual property rights. This list below followed by the notices, as amended, and is published in their will be placed on the Internet in early RETRIEVABILITY: 1997, and is intended to allow persons entirety. The proposed amendments are not within the purview of subsection (r) Records are retrieved by telephone working in this field to identify each number or routing symbol, from the other easily and, as appropriate, to of the Privacy Act of 1974, (5 U.S.C. 552a), as amended, which requires the telecommunications contacts in the contact each other. The list will be Operating Administrations and the divided into public sector and private submission of a new or altered systems report. Telecommunications Operations sector sections, and may be further Branch. divided into intellectual property DOT/ALL 4 subject matter areas. SAFEGUARDS: All interested persons, from academia SYSTEM NAME: Only telecommunications personnel to industry, are invited to submit Station Message Detail Recording within the Transportation written applications for inclusion on the (SMDR). Administrative Service Center (TASC) Contact Point List. An original and three SECURITY CLASSIFICATION: and operation and maintenance contract copies of the application should be sent personnel have access to tapes. None. to Sybia Harrison at the above-noted Telecommunications contacts and address on or before September 16, SYSTEM LOCATION: managers in TASC and the Operating 1996. Applications must be in English U.S. Department of Transportation, Administrations will have access to and take the following form: Transportation Administrative Service printed records. Printed records will Name: Center, Telecommunications have a cover sheet indicating Privacy Title: Operations, SVC–171, PL–300, 400 7th Act coverage. Area(s) of interest (e.g., patents, Street, SW., Washington, DC 20590. copyrights, trademarks, etc.): RETENTION AND DISPOSAL: Address: CATEGORIES OF INDIVIDUALS COVERED BY THE Records are disposed of as provided Telephone/Fax numbers: SYSTEM: in National Archives and Records When forwarding these applications Department of Transportation Administration General Records to APEC for inclusion on the Contact employees who make Federal Schedule 12. 42302 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices

SYSTEM MANAGER(S) AND ADDRESS: of Health and Human Services-Public Health responsible for the care of the Chief, Telecommunications Service. Records of FAA employees are individual. Operations Division, U.S. Department of maintained by Merit Behaviorial Care, c. To disclose information without records of SLSDC, NY area are maintained by written consent to the Department of Transportation, 400 Seventh Street SW., Saint Lawrence County Community EAP SVC–171, PL–300, Washington, DC Service and records of the USCG are Justice that is relevant and necessary to 20590. maintained by Masshoff, Barr, and evaluate and defend claims against the Associates. United States that are based upon NOTIFICATION PROCEDURE: participation in alcohol, drug, or other Contact Telecommunications CATEGORIES OF INDIVIDUALS COVERED BY THE treatments or rehabilitation programs Operations Division, SVC–171 at the SYSTEM: conducted by DOT. above address. Current and former DOT employees DOT’s general routine uses (49 FR who have been counseled or otherwise 15345) do not apply to this system or RECORD ACCESS PROCEDURES: treated regarding alcohol or drug abuse records. These are the only routine uses Contact Telecommunications or for personal or emotional health provided for DOT’s Employee Operations Division, SVC–171 at the problems. Counseling Services Program records. above address. Furthermore, in many instances a full CATEGORIES OF RECORDS IN THE SYSTEM: Individuals may review their own disclosure of the contents of the record data upon presentation of a valid Records in this system include is not required. Whenever possible, a Department of Transportation documentation of visits to employee partial disclosure will be made or a identification card to their Operating counselors (Federal, state, local summary of the contents of the record Administration contact or the government, or private) and the will be disclosed. Full disclosure of the Telecommunications Operations diagnosis, recommended treatment, record will be made only when a partial Division. results of treatment, and other notes or disclosure or a summary will not records of discussions held with the RECORD SOURCE CATEGORIES: suffice. employee made by the counselor. Telephone assignment records, call Additionally, records in this system POLICIES AND PRACTICES FOR STORING, detail listings and results of may include documentation of names of RETRIEVING, ACCESSING, RETAINING, AND administrative inquiries relating to employees on referral, rehabilitation DISPOSING OF RECORDS IN THE SYSTEM: assignment of responsibility for and follow-up lists kept by DOT EAP STORAGE: placement of specific long distance Coordinators, treatment by a private calls. These records are electronic and therapist or a therapist at a Federal, paper files maintained on computers EXEMPTIONS CLAIMED FOR THE SYSTEM: state, local government, or private and in file folders. None. institution. RETRIEVABILITY: AUTHORITY FOR MAINTENANCE OF THE SYSTEM: DOT/ALL 5 These records are retrieved by the 5 U.S.C. 3301 and 7901, 21 U.S.C. name or social security number of the SYSTEM NAME: 1101, 42 U.S.C. 4541 and 4561, and 44 individual on whom they are Employee Assistance Program (EAP) U.S.C. 3101. maintained or by a unique case file Records. identifier. PURPOSE(S): SYSTEM CLASSIFICATION: These records are used to document SAFEGUARDS: Sensitive. the referral, nature of the individual’s These records are maintained in problem and progress made to record an SYSTEM LOCATION: locked file cabinets and computers with individual’s participation in and the access protected by electronic password. Records are maintained in the office results of community or private sector Access is strictly limited to employees of the EAP which provides counseling treatment or rehabilitation programs and directly involved in the DOT’s EAP. to the employee. related follow-up. Note: In order to meet the statutory RETENTION AND DISPOSAL: requirement that agencies provide ROUTINE USES OF RECORDS MAINTAINED IN THE Records are maintained for three to SYSTEM, INCLUDING CATEGORIES OF USERS AND appropriate prevention, treatment, and six years after the employee’s last THE PURPOSES OF SUCH USES: rehabilitation programs and services for contact with DOT’s EAP. employees with alcohol or drug programs, a. To disclose information without and to better accommodate establishment of written consent to qualified personnel SYSTEM MANAGER(S) AND ADDRESS: a health service program to promote for the purpose of conducting scientific Director, Worklife Wellness, U.S. employees’ physical and mental fitness, it research, management audits, financial may be necessary for the Department of Department of Transportation, 400 7th Transportation (DOT) to negotiate for use of audits, or program evaluation, but such Street, SW., SVC–100, Room 9136, the counseling staff of another Federal, state, personnel may not identify, directly or Washington, DC 20590. or local government, or private sector agency indirectly, any individual patient in any or institution. This system also covers report or otherwise disclose patient NOTIFICATION PROCEDURE: records on DOT employees that are identities in any manner (when such DOT employees wishing to inquire maintained by another Federal, state, or local records are provided to qualified whether this system of records contains government, or private sector agency or researchers employed by DOT, all information about them should contact institution under such a negotiated patient identifying information shall be the DOT EAP coordinator who arranged agreement. removed). for counseling or treatment. Individuals With the exception of Federal Aviation Administration (FAA), Saint Lawrence b. To disclose information without must furnish the following information Seaway Development Corporation (SLSDC), written client consent, when an for their records to be located and New York (NY) area and the United States individual to whom a record pertains is identified: Coast Guard (USCG), records of DOT mentally incompetent or under legal a. Name. employees are maintained by the Department disability, to any person who is b. Date of birth. Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices 42303

RECORD ACCESS PROCEDURES: Office of Inspector General (OIG), the SAFEGUARDS: DOT employees wishing to request Office of the Secretary (OST), the Access to magnetic tape and disk access to records pertaining to them Research and Special Programs records is limited to authorized agency should contact the DOT EAP Administration (RSPA), the Surface personnel through password security. coordinator who arranged for Transportation Board (STB), the Hardcopy files are accessible to counseling or treatment. Individuals Transportation Administrative Services authorized personnel and are kept in must furnish the following information Center (TASC), and the United States locked file cabinets during non-duty for their records to be located and Coast Guard (USCG). These offices hours. identified: exercise system and operational control a. Name. over applicable records within the RETENTION AND DISPOSAL: b. Date of birth. system. Original payment vouchers and An individual must also follow DOT’s supporting documentation are retained regulations regarding maintenance of CATEGORIES OF INDIVIDUALS COVERED BY THE on site at the accounting office for a SYSTEM: and access to records pertaining to period of three years. After three years, individuals (49 CFR part 10). The system will cover: All employees records are sent to GSA’s Records of the BTS, FAA, FHWA, FRA, FTA, Centers for storage. Records are retained CONTESTING RECORD PROCEDURES: MARAD, NHTSA, OIG, OST, RSPA, in accordance with the General Records DOT employees wishing to request STB, TASC, and civilian USCG Schedule. Certain transportation amendment to these records should employees. documents (i.e., Government contact the DOT EAP coordinator who Transportation Requests, Government CATEGORIES OF RECORDS IN THE SYSTEM: arranged for counseling or treatment. Bills of Lading) are forwarded to the Individuals must furnish the following Categories include payment records General Service Administration for information for their records to be for non-payroll related expenses, audit during the period that documents located and identified: payment records for payroll made off- are retained by the accounting office. a. Name. line, collection records for payroll b. Date of birth. offsets, and labor cost records. SYSTEM MANAGER(S) AND ADDRESS: Chief, Financial Systems (B–35) at the An individual must also follow DOT’s AUTHORITY FOR MAINTENANCE OF THE SYSTEM: regulations regarding maintenance of following address: U.S. Department of 31 U.S.C. 3512 (A),(B). and access to records pertaining to Transportation, Office of the Secretary, individuals (49 CFR part 10). ROUTINE USES OF RECORDS MAINTAINED IN THE 400 Seventh Street SW, Washington, DC SYSTEM, INCLUDING CATEGORIES OF USERS AND 20590. RECORD SOURCE CATEGORIES : THE PURPOSES OF SUCH USES: NOTIFICATION PROCEDURE: Information in this system of records Accounting office personnel use these Individuals wishing to know if their comes from the individual to whom it records to: records appear in this system of records applies, the supervisor of the individual Provide employees with off-line may inquire in person or in writing to if the individual was referred by the paychecks, travel advances, travel the system manager. Supervisor, the EAP Coordinator who reimbursements, and other official tracks the referral, rehabilitation reimbursements; RECORD ACCESS PROCEDURES: progress and follow-up, the EAP staff Facilitate the distribution of labor Same as ‘‘System Manager.’’ member who records the counseling charges for costing purposes; session, and therapists or institutions Track outstanding travel advances, CONTESTING RECORD PROCEDURES: providing treatment. receivables, and other non-payroll Same as ‘‘System Manager.’’ EXEMPTIONS CLAIMED FOR THE SYSTEM: amounts paid to employees, etc; and, Correspondence contesting records must Clear advances that were made include the full name and social None. through the system in the form of off- security number of the individual DOT/ALL 7 line paychecks, payments for excess concerned and documentation justifying household goods made on behalf of the the claims. SYSTEM NAME: employee, garnishments, overdue travel Departmental Accounting and advances, etc. RECORD SOURCE CATEGORIES: Financial Information System (DAFIS). See Prefatory Statement of General Information is provided by the Routine Uses. employee directly or through the DOT SYSTEM CLASSIFICATION: Integrated Personnel and Payroll System Unclassified sensitive. DISCLOSURE TO CONSUMER REPORTING (IPPS). AGENCIES: SYSTEM LOCATION: None. EXEMPTIONS CLAIMED FOR THE SYSTEM: The system is located in the None. Department of Transportation (DOT) POLICIES AND PRACTICES FOR STORING, accounting offices and selected RETRIEVING, ACCESSING, RETAINING, AND DOT/ALL 11 DISPOSING OF RECORDS IN THE SYSTEM: program, policy, and budget offices. SYSTEM NAME: These offices are located within the STORAGE: Integrated Personnel and Payroll Bureau of Transportation Statistics Records are stored on magnetic tape, System (IPPS). (BTS), the Federal Aviation magnetic disk, microforms, and in file Administration (FAA), the Federal folders. SECURITY CLASSIFICATION: Highway Administration (FHWA), the Unclassified sensitive. Federal Railroad Administration (FRA), RETRIEVABILITY: the Federal Transit Administration Records are retrieved by employee SYSTEM LOCATION: (FTA), the Maritime Administration social security number. Retrieval is Department of Transportation (DOT), (MARAD), the National Highway Traffic accomplished by use of Office of the Secretary (OST), 400 7th Safety Administration (NHTSA), the telecommunications. Street, SW, Washington, DC 20590; 42304 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices working copies of certain of these Federal Participation in Enrollee Deposit or Redeposit, Application to records are held by OST, all DOT Programs, Request for Official Personnel Make Voluntary Contribution, Request Operating Administrations, Office of the Folder (Separated Employee), Statement for Recovery of Debt Due the United Inspector General (OIG), and the of Prior Federal Civilian and Military States (Civil Service Retirement National Transportation Safety Board Service, Personal Qualifications System), Register of Separations and (NTSB). (DOT provides personnel and Statement, Continuation Sheet for Transfers—Civil Service Retirement payroll services to NTSB on a Standard Form 171 ‘‘Personal System, Register of Adjustments—Civil reimbursable basis, although NTSB is Qualifications Statement’’, amendment Service Retirement System, Annual not a DOT entity. This is done for to Personal Qualifications Statement, Summary Retirement Fund economy and convenience since both Job Qualifications Statement, Statement Transactions, Designation of organizations’ missions are of Physical Ability for Light Duty Work, Beneficiary—Civil Service Retirement transportation oriented and located in Request, Authorization, Agreement and System, Health Benefits Registration the same geographic areas.) Certification for Training, United States Form-Federal Employees Health (U.S.) Government Payroll Savings Plan- Benefits Program, Notice of Change in CATEGORIES OF INDIVIDUALS COVERED BY THE Health Benefits Enrollment, Transmittal SYSTEM: Consolidated Quarterly Report, and Summary Report to Carrier— Prospective, present, and former Financial Disclosure Report, Federal Employees Health Benefits employees in the Office of the Secretary Information Sheet-Financial Disclosure Program, Report of Withholding and of Transportation (OST), Bureau of Report, Payroll for Personal Services, Contributions for Health Benefits, Group Transportation Statistics (BTS), Federal Pay Receipt for Cash Payment—Not Life Insurance, and Civil Service Aviation Administration (FAA), Federal Transferable, Payroll Change Slip, Retirement, Report of Withholdings and Highway Administration (FHWA), Payroll for Personal Service—Payroll Contributions, Employee Service Federal Railroad Administration (FRA), Certification and Summary— Statement, Election of Coverage and Federal Transit Administration (FTA), Memorandum, Record of Leave Data, Benefits, Designation of Beneficiary, Maritime Administration (MARAD), Designation of Beneficiary—Unpaid Position Description, Inquiry for United National Highway Traffic Safety Compensation of Deceased Civilian States Government Use Only, Administration (NHTSA), Office of the Employee, U.S. Savings Bond Issue File Application for Retirement—Foreign Inspector General (OIG), Research and Action Request, Subscriber List for Service Retire System, Designation of Special Programs Administration Issuance of United States Savings Beneficiary, Application for Refund of (RSPA), St. Lawrence Seaway Bonds, Request for Payroll Deductions Retirement Contributions (Foreign Development Corporation (SLSDC), for Labor Organization Dues, Revocation Service Retirement System), Election to Transportation Administrative Service of Voluntary Authorization for Receive Extra Service Credit Towards Center (TASC), National Transportation Allotment of Compensation for Payment Retirement (or Revocation Thereof), Safety Board (NTSB), and civilian of Labor Organization dues, Request by Application for Service Credit, employees of the United States Coast Employee for Payment of Salaries or Employee Suggestion Form, Meritorious Guard (USCG). Wages by Credit to Account at a Financial Organization, Designation of Service Increase Certificate, Foreign CATEGORIES OF RECORDS IN THE SYSTEM: Beneficiary—Unpaid Compensation of Service Emergency Locator Information, This system contains those records Deceased Civilian Employee, U.S. Leave Record, Leave Summary, required to insure that an employee Savings Bond Issue File Action Request, Individual Pay Card, Time and receives his or her pay and personnel Subscriber List for Issuance of United Attendance Report, Time and benefits as required by law. It includes, States Savings Bonds, Request for Attendance Report (For Use Abroad). as appropriate: Service Record, Payroll Deductions for Labor AUTHORITY FOR MAINTENANCE OF THE SYSTEM: Employee Record, Position Organization Dues, Revocation of Identification Strip, Claim for 10-Point Voluntary Authorization for Allotment 49 U.S.C 322 Veteran Preference, Request for Referral of Compensation for Payment of Labor PURPOSE(S): Eligibles, Request and Justification for Organization Dues, Request by This system integrates personnel and Selective Factors and Quality Ranking Employee for Payment of Salaries or payroll functions. Factors, Certification of Insured Wages by Credit to Account at a Employee’s Retired Status (Federal Financial Organization, Authorization ROUTINE USES OF RECORDS MAINTAINED IN THE Employees’ Group Life Insurance for Purchase and Request for Change: SYSTEM INCLUDING CATEGORIES OF USERS AND (FEGLI)), Notification of Personnel U.S. Series EE Savings Bond, Request by THE PURPOSES OF SUCH USES: Action, Notice of Short-Term Employee for Allotment of Pay for Records are maintained for control Employment, Request for Insurance Credit to Savings Accounts with a and accountability of: Pay and (FEGLI), Designation of Beneficiary Financial Organization, Application for allowances; permanent and temporary (FEGLI), Notice of Conversion Privilege, Death Benefits—Civil Service pay changes; pay adjustments; travel Agency Certification of Insurance Status Retirement System, Application for advances and allowances; leave (FEGLI), Request for Approval of Non- Retirement—Civil Service Retirement balances for employees; earnings and Competitive Action, Appointment System, Superior Officer’s Statement in deductions by pay periods, and pay and Affidavits, Declaration of Appointee, Connection with Disability Retirement, earning statements for employees; Agency Request to Pass Over a Physician’s Statement for Employee management information as required on Preference Eligible or Object to an Disability Retirement Purposes, an ad hoc basis; payroll checks and Eligible, Official Personnel Folder, Transmittal of Medical and Related bond history; union dues; withholdings Official Personnel Folder Tab Insert, Documents for Employee Disability to financial institutions, charitable Incentive Awards Program Annual Retirement, Request for Medical organizations and professional Report, Application for Leave, Monthly Records (To Hospital or Institution) in associations; summary of earnings and Report of Federal Civilian Employment, Connection with Disability Retirement, deductions; claims for reimbursement Payroll Report of Federal Civilian Application for Refund of Retirement sent to the General Accounting Office Employment, Semi-annual Report of Deductions, Application to Make (GAO); federal, state, and local taxes Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices 42305 withholdings; and list of FICA RECORD ACCESS PROCEDURES: POLICIES AND PRACTICES FOR STORING, employees for management reporting. Same as ‘‘System Manager’’. RETRIEVING, ACCESSING, RETAINING, AND See Prefatory Statement of General DISPOSING OF RECORDS IN THE SYSTEM: Routine Uses. CONTESTING RECORD PROCEDURES: STORAGE:

DISCLOSURE TO CONSUMER REPORTING Same as ‘‘System Manager’’. Magnetic tape storage via batch AGENCIES: Correspondence contesting records must processing. Source data returned to Disclosures pursuant to 5 USC include the full name and social DOT. security number of the individual 552a(b)(12): Disclosures may be made RETRIEVABILITY: from this system to ‘‘consumer reporting concerned and documentation justifying the claims. Can retrieve on telephone number or agencies’’ as defined in the Fair Credit on name. Reporting Act (15 USC 1681a(f)) or the RECORD SOURCE CATEGORIES: Federal Claims Collection Act of 1982 SAFEGUARDS: (31 USC 3701(a)(3)). Data are collected from the individual employees, time and attendance clerks, Only DOT and its support contractor personnel have access to tapes. POLICIES AND PRACTICES FOR STORING, supervisors, official personnel records, RETRIEVING, ACCESSING, RETAINING, AND personal financial statements, RETENTION AND DISPOSAL: DISPOSING OF RECORDS IN THE SYSTEM: correspondence with the debtor, records Tapes are retained through three (3) STORAGE: relating to hearings on the debt, and cycles, grandfather, father, son, and then Storage is on magnetic disks, from the Departmental Accounting and scratched. Source materials are retained magnetic tape, microforms, and paper Financial Information System system of until the next update is completed. forms in file folders. records. SYSTEM MANAGER(S) AND ADDRESS: RETRIEVABILITY: EXEMPTIONS CLAIMED FOR THIS SYSTEM: Chief, Telecommunications Retrieval from the system is by social None. Operations Division, ATTN: SVC–171, security number, employee number, Department of Transportation, Office of DOT/OST 043 organization code, or home address; the Secretary, Office of Administrative these can be accessed only by SYSTEM NAME: Services, 400 7th Street, SW, Room PL– individuals authorized such access. Telephone Directory and Locator 300, Washington, DC 20590. SAFEGUARDS: System. NOTIFICATION PROCEDURE: Computers provide privacy and SECURITY CLASSIFICATION: Contact the Telecommunications access limitations by requiring a user Operations Division at the address name and password match. Access to Unclassified sensitive. above. decentralized segments are similarly SYSTEM LOCATION: controlled. Only those personnel with a RECORD ACCESS PROCEDURES: need to have access to the system are Department of Transportation, ATTN: Contact the Telecommunications given user names and passwords. Data SVC–171, Telecommunications Operations Division at the address are manually and/or electronically Operations Division, 400 7th Street SW, above. stored in locked rooms with limited Washington, DC 20590 Individual may review own data upon access. presentation of valid DOT ID card. CATEGORIES OF INDIVIDUALS COVERED BY THE RETENTION AND DISPOSAL: SYSTEM: CONTESTING RECORD PROCEDURES: The IPPS records are retained and Department of Transportation (DOT) Individual may change own data at disposed in compliance with the headquarters employees. any time. General Records Schedules, National Archives and Records Administration, CATEGORIES OF RECORDS IN THE SYSTEM: RECORD SOURCE CATEGORIES: Washington, DC 20408. The following Alphabetic Employee Master Records. DOT F 1700.1—DOT Form prepared schedules apply: General Records for each employee. AUTHORITY FOR MAINTENANCE OF THE SYSTEM: Schedule 1, Civilian Personnel Records, EXEMPTIONS CLAIMED FOR THE SYSTEM: Pages 1 thru 22, Items 1 through 39; and 49 U.S.C. 322. None. General Records Schedule 2, Payrolling PURPOSE(S): and Pay Administration Records, Pages Deletions 1 thru 6, Items 1 thru 28. To provide the names, telephone numbers, and office locations of DOT System number System name SYSTEM MANAGER(S) AND ADDRESS: employees and organizations. For personnel-related issues, contact DOT/ALL 3 ...... Application for U.S. Gov- Chief, Strategic Planning/Systems ROUTINE USES OF RECORDS MAINTAINED IN THE ernment Motor Vehicle Division (M–10) and, for payroll-related SYSTEM, INCLUDING CATEGORIES OF USERS AND Operator's Identification issues, contact Chief, Financial THE PURPOSES OF SUCH USES: Card (Government Driv- Management Staff (B–35) at the Departmental Alphabetic Directory ers License). following address: U.S. Department of production, DOT Mail Room, DOT DOT/FAA 806 ... Federal Aviation Adminis- tration Employee Pay- Transportation, Office of the Secretary, Locator Service. Used by DOT Telephone Directory Representatives, able System. 400 Seventh Street SW, Washington, DC DOT/FAA 831 ... Standard Procedure Uni- 20590. DOT Mail room. See Prefatory form Reporting System Statement of General Routine Uses. (SPUR). NOTIFICATION PROCEDURE: DOT/FAA 832 ... Pilot/Flight Engineer/Navi- Individuals wishing to know if their DISCLOSURE TO CONSUMER REPORTING gator Flight Record Sys- AGENCIES: records appear in this system of records tem. may inquire in person or in writing to Public document that can be received DOT/FAA 849 ... Back to Basics Seminar At- the system manager. from the Government Printing Office tendance System. 42306 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices

System number System name Dated: August 8, 1996. Interested persons are invited to Crystal M. Bush, comment on the proposed AC 183–35G DOT/FHWA 202 University and Industry Privacy Act Coordinator, Department of listed in this notice by submitting such Programs Coding and Transportation. written data, views, or arguments as Filing System. [FR Doc. 96–20738 Filed 8–13–96; 8:45 am] they desire to the aforementioned DOT/FHWA 210 Occupational Safety and BILLING CODE 4910±62±P Health Accident Report- specified address. All communications ing System. received on or before the closing date for comments specified above will be DOT/FHWA 219 Employee Utilization Federal Aviation Administration (monthly report). considered by the Manager, Regulatory DOT/FHWA 220 Payroll Administration. Advisory Circular 183±35G, Support Division, before issuing the DOT/FRA 100 Alaska Railroad Examina- Airworthiness Designee Function final AC. tion of Operating Person- Codes and Consolidated Directory for Comments received on the proposed nel. DMIR/DAR/ODAR/DAS/DOA and SFAR AC 183–35G may be examined before DOT/FRA 101 Alaska Railroad Personnel and Pay Management In- No. 36 and after the comment closing date in Room 815, FAA headquarters building formation System. AGENCY: Federal Aviation DOT/FRA 118 Transportation Test Center Administration (FAA), DOT. (FOB–10A), 800 Independence Avenue, Cost Tracking System. SW., Washington, DC 20591, between ACTION: Notice. DOT/NHTSA National Highway Safety 8:30 and 4:30 p.m. 400. Advisory Committee SUMMARY: This notice announces the Billy Pickelshimer, Membership/Nominee availability of proposed Advisory Acting Manager, Regulatory Support Division. Files. Circular (AC) 183–35G, Airworthiness DOT/NHTSA Alcohol Project Files. [FR Doc. 96–20583 Filed 8–13–96; 8:45 am] Designee Function Codes and 404. BILLING CODE 4910±13±M DOT/NHTSA Injuries, Illnesses, Motor Consolidated Directory for DMIR/DAR/ 433. Vehicle Accidents and ODAR/DAS/DOA and SFAR No. 36, for Property Damages. review and comments. The proposed DOT/NHTSA Government Driver Li- AC 183–35G draft provides a revised list [Summary Notice No. PE±96±39] 434. censes. of authorized functions for designees/ DOT/NHTSA Drinking Driver Tracking representatives. The revised function Petitions for Exemption; Summary of 447. System. list provides additional authorized Petitions Received; Dispositions of DOT/NHTSA Alcohol Behavior Re- function codes for private persons Petitions Issued 454. search. acting on behalf of the administrator. DOT/NHTSA Stockton Increased DUI DATES: Comments submitted must AGENCY: Federal Aviation 459. Enforcement/DUI Citation identify the proposed AC 183–35G, and Administration (FAA), DOT. and Arrest File. must be received on or before ACTION: Notice of petitions for DOT/NHTSA Driver Programs Data Sys- September 13, 1996. 467. tem. exemption received and of dispositions DOT/OST 010 Departmental Personnel ADDRESSES: Copies of the proposed AC of prior petitions. Management Information 183–35G can be obtained from and System. comments may be returned to the SUMMARY: Pursuant to FAA’s rulemaking DOT/OST 018 Identification Media Record following: Federal Aviation provisions governing the application, Systems. Administration; Designee processing, and disposition of petitions DOT/OST 026 Payroll Management Sys- Standardization Branch, AFS–640, for exemption (14 CFR Part 11), this tem. Regulatory Support Division, ATTN: notice contains a summary of certain DOT/OST 030 Personnel Management Evangeline Raines, AFS–640, P.O. Box petitions seeking relief from specified Files. 25082, Oklahoma City, OK 73125. requirements of the Federal Aviation DOT/OST 044 Travel and Transportation FOR FURTHER INFORMATION CONTACT: Regulations (14 CFR Chapter I), Management File. John Rice, Designation Standardization dispositions of certain petitions DOT/OST 062 Biographies of Key Officials Section, AFS–641, at the above address; Book. telephone (405) 954–6484, (8:00 a.m. to previously received, and corrections. DOT/RSPA 01 Funds Management 5:00 p.m. CST). The purpose of this notice is to improve Records. the public’s awareness of, and DOT/RSPA 07 Time and Attendance Re- SUPPLEMENTARY INFORMATION: participation in, this aspect of FAA’s port (FHWA Form 320 regulatory activities. Neither publication (7±73)) for the Office of Background of this notice nor the inclusion or Emergency Transpor- The Designee Standardization Branch, tation. AFS–640 intends to cancel AC 183– omission of information in the summary DOT/TSC 706 Automated Planning Sys- 33A, DESIGNATED AIRWORTHINESS is intended to affect the legal status of tem. REPRESENTATIVES. AFS–640 has any petition or its final disposition. DOT/TSC 711 Blood Donor Information revised AC 183–35F, FAA DAR, DAS, FOR FURTHER INFORMATION CONTACT: File. DOA, AND SFAR PART 36 Mr. D. Michael Smith, Office of DOT/TSC 713 EmployeeÐManpower Dis- DIRECTORY, to reflect the expanded tribution System. Rulemaking (ARM–1), Federal Aviation authorized functions. This revised DOT/UMTA 176 Blood-Donor File. Administration, 800 Independence advisory circular will be published one DOT/UMTA 192 Federal Transportation time only in the Federal Registry as AC Avenue, SW., Washington, DC 20591; Planning System (UTPS) (202) 267–7470. Address File. 183–35G, AIRWORTHINESS DESIGNEE FUNCTION CODES AND This notice is published pursuant to CONSOLIDATED DIRECTORY FOR paragraphs (c), (e), and (g) of § 11.27 of DAR/DOA/DAS AND SFAR NO. 36 to Part 11 of the Federal Aviation seek public comment. Regulations (14 CFR Part 11). Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices 42307

Issued in Washington, D.C., on August 9, Description of Relief Sought/ 200), Petition Docket No. llllll, 1996. Disposition: To permit Dale Aviation, 800 Independence Avenue, SW., Donald P. Byrne, Inc., to operate its Cessna 414A Washington, D.C. 20591. Assistant Chief Counsel for Regulations. aircraft (Registration No. N414YH, Comments may also be sent Serial No. 414A0514) without a TSO– electronically to the following internet Dispositions of Petitions C112 (Mode S) transponder installed. address: [email protected]. Docket No.: 21882 Grant, June 27, 1996, Exemption No. The petition, any comments received, Petitioner: China Airlines, Inc. 6472 and a copy of any final disposition are Sections of the FAR Affected: 14 CFR Docket No.: 28572 filed in the assigned regulatory docket 61.77 (a) and (b) and 63.23 (a) and (b) Petitioner: Mr. Mark Quinn and are available for examination in the Description of Relief Sought/ Sections of the FAR Affected: 14 CFR Rules Docket (AGC–200), Room 915G, Disposition: To extend and amend 91.197(a)(3) and 121.311(b) FAA Headquarters Building (FOB 10A), Exemption No. 4849, as amended, Description of Relief Sought/ 800 Independence Avenue, SW., which permits China Airlines, Inc., Disposition: To permit Mr. Quinn not Washington, D.C. 20591; telephone airmen who operate two U.S.- to purchase a passenger seat on a (202) 267–3132. registered Boeing 747–SP aircraft commercial airline for his daughter, FOR FURTHER INFORMATION CONTACT: (Registration Nos. N4508H and Sarah, who was born with Down Mr. D. Michael Smith, Office of N4522V) and an Airbus 300–600R Syndrome and other birth defects on Rulemaking (ARM–1), Federal Aviation aircraft (Registration No. N88881) to a commercial airliner for Sarah, who Administration, 800 Independence be eligible for special purpose airman has reached her second birthday. The Avenue, SW., Washington, DC 20591; certificates. The amendment adds a petitioner proposed that Sarah be held telephone (202) 267–7470. second Airbus 300–600R (Registration on her caregivers lap, rather than This notice is published pursuant to No. N88887) to the list of aircraft that being secured in an approved child paragraphs (c), (e), and (g) of § 11.27 of may be operated under this restraint device or in an individual Part 11 of the Federal Aviation exemption. seat with a seatbelt. Regulations (14 CFR Part 11). Grant, July 23, 1996, Exemption No. Denial, July 9, 1996, Exemption No. 4849E 6479 Issued in Washington, D.C., on August 9, 1996. Docket No.: 27930 [FR Doc. 96–20754 Filed 8–13–96; 8:45 am] Donald P. Byrne, Petitioner: Pan Am International Flight BILLING CODE 4910±13±M Assistant Chief Counsel for Regulations. Academy Sections of the FAR Affected: 14 CFR Petitions for Exemption [Summary Notice No. PE±96±40] appendix H to part 121; 135.337 (a)(2) Docket No.: 28619 and (3) and (b)(2); and 135.339 (b) and Petitions for Exemption; Summary of Petitioner: F.S. Air Service, Inc. (c) Sections of the FAR Affected: 14 CFR Description of Relief Sought/ Petitions Received; Dispositions of Petitions Issued 135.267 (b)(2) and (c) and 135.269(b) Disposition: To permit certain flight (2), (3), and (4) instructors (simulator) employed by AGENCY: Federal Aviation Description of Relief Sought: To permit the Pan Am International Flight Administration (FAA), DOT. F.S. Air Service, Inc., to assign its Academy and listed in a part 135 ACTION: Notice of petitions for flight crewmembers and allow its certificate holder’s approved training exemption received and for dispositions flight crewmembers to accept a flight program to act as flight instructors of prior petitions. assignment of up to 16 hours of flight (simulator) for that certificate holder time during a 20-hour duty day for the under part 135 without those flight SUMMARY: Pursuant to FAA’s rulemaking purpose of conducting international instructors (simulator) having provisions governing the application, emergency medical evacuation received ground and flight training in processing, and disposition of petitions operations. accordance with that certificate for exemption (14 CFR Part 11), this holder’s training program approved notice contains a summary of certain Dispositions of Petitions under subpart H of part 135. petitions seeking relief from specified Docket No.: 27609 Partial Grant, July 3, 1996, Exemption requirements of the Federal Aviation Petitioner: M. Shannon & Associates No. 6479 Regulations (14 CFR Chapter I), Sections of the FAR Affected: 14 CFR Docket No.: 28333 dispositions of certain petitions 91.9(a) and 91.531(a) (1) and (2) Petitioner: CCAIR, Inc. previously received, and corrections. Description of Relief Sought/ Sections of the FAR Affected: 14 CFR The purpose of this notice is to improve Disposition: To permit M. Shannon & 121.433(c)(1)(iii), 121.441 (a)(1) and the public’s awareness of, and Associates and the operators of (b)(1), and appendix F to part 121 participation in, this aspect of FAA’s Cessna Citation 500, 550, and S550 Description of Relief Sought/ regulatory activities. Neither publication model aircraft to operate these aircraft Disposition: To permit CCAIR, Inc., to of this notice nor the inclusion or with a single pilot. conduct a single-visit training omission of information in the summary Grant, July 18, 1996, Exemption No. program (SVTP) for flight is intended to affect the legal status of 6480 crewmembers and eventually any petition or its final disposition. Docket No.: 28454 transition into the Advanced DATES: Comments on petitions received Petitioner: Civil Air Patrol Qualification Program (AQP) codified must identify the petition docket Sections of the FAR Affected: 14 CFR in SFAR No. 58. number involved and must be received part 91, subpart F Grant, July 9, 1996, Exemption No. 6478 on or before September 9, 1996. Description of Relief Sought/ Docket No.: 28547 ADDRESSES: Send comments on any Disposition: To permit the Civil Air Petitioner: Dale Aviation, Inc. petition in triplicate to: Federal Patrol (CAP) to operate a limited Sections of the FAR Affected: 14 CFR Aviation Administration, Office of the number of CAP flights carrying 135.143(c) Chief Counsel, Attn: Rule Docket (AGC– passengers and property for limited 42308 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices

reimbursement when those flights are ADDRESSES: Comments on this Class or classes of air carriers which within the scope of and incidental to application may be mailed or delivered the public agency has requested not be CAP’s corporate purposes and U.S. in triplicate to the FAA at the following required to collect PFCs: None. Air Force Auxiliary. address: FAA/Airports District Office, Any person may inspect the Grant, July 22, 1996, Exemption No. 120 North Hangar Drive, Suite B, application in person at the FAA office 6485 Jackson, Mississippi 39208–2306. listed above under FOR FURTHER Docket No.: 28573 In addition, one copy of any INFORMATION CONTACT. In addition, any Petitioner: Federal Aviation comments submitted to the FAA must person may, upon request, inspect the Administration, Office of Aviation be mailed or delivered to Tom Williams, application, notice and other documents System Standards Executive Director of the Meridian germane to the application in person at Sections of the FAR Affected: 14 CFR Airport Authority at the following the office of the Meridian Airport 135.251 and 135.255(a) address: Post Office Box 4351, 2811 Authority. Description of Relief Sought/ Highway 11 South, Meridian, Issued in Jackson, Mississippi, on August Disposition: To permit the Office of Mississippi 39304–4351. 2, 1996. Aviation System Standards (AVN) to Air carriers and foreign air carriers Elton E. Jay, use the drug and alcohol testing may submit copies of written comments program mandated by Department of Acting Manager, Airports District Office, previously provided to the Meridian Southern Region, Jackson, Mississippi. Transportation (DOT) Order 3910.1C, Airport Authority under 158.23 of Part [FR Doc. 96–20760 Filed 8–13–96; 8:45 am] ‘‘The Drug and Alcohol-Free 158. Departmental Workplace,’’ for its BILLING CODE 4910±13±M Flight Inspection Program FOR FURTHER INFORMATION CONTACT: management, pilot, and maintenance David Shumate, Project Manager, FAA Notice of Intent To Rule on Application personnel, in lieu of the drug and Airports District Office, 120 North To Impose and Use the Revenue From alcohol testing programs mandated by Hangar Drive, Suite B, Jackson, a Passenger Facility Charge (PFC) at the Federal Aviation Regulations Mississippi 39208–2306, telephone McGhee Tyson Airport, Knoxville, (FAR). number 601–965–4628. The application Tennessee Grant, July 31, 1996, Exemption No. may be reviewed in person at this same location. 6484 AGENCY: Federal Aviation Docket No.: 28630 SUPPLEMENTARY INFORMATION: The FAA Administration (FAA), DOT. Petitioner: Katie Seddon proposes to rule and invites public ACTION: Notice of intent to rule on Sections of the FAR Affected: 14 CFR comment on the application to impose application. 121.311(b) and use the revenue from a PFC at Key Description of Relief Sought/ Field Airport under the provisions of SUMMARY: The FAA proposes to rule and Disposition: To permit Katie, who is the Aviation Safety and Capacity invites public comment on the 12 years old, to be held on the lap(s) Expansion Act of 1990 (Title IX of the application to impose and use the of one or both of her parents, using an Omnibus Budget Reconciliation Act of revenue from a PFC at McGhee Tyson infant lap restraint rather than being 1990) (Public Law 101–508) and Part Airport under the provisions of the secured in an approved child restraint 158 of the Federal Aviation Regulations Aviation Safety and Capacity Expansion device or in an individual seat with (14 CFR Part 158). Act of 1990 (Title IX of the Omnibus a seatbelt while traveling on an air On August 2, 1996, the FAA Budget Reconciliation Act of 1990) carrier certificated under part 121. determined that the application to (Public Law 101–508) and Part 158 of Grant, July 24, 1996, Exemption No. impose and use the revenue from a PFC the Federal Aviation Regulations (14 6486 submitted by Meridian Airport CFR Part 158). [FR Doc. 96–20755 Filed 8–13–96; 8:45 am] Authority was substantially complete DATES: Comments must be received on BILLING CODE 4910±13±M within the requirements of § 158.25 of or before September 13, 1996. Part 158. The FAA will approve or ADDRESSES: Comments on this disapprove the application, in whole or application may be mailed or delivered Notice of Intent To Rule on Application in part, no later than November 29, in triplicate to the FAA at the following To Impose and Use the Revenue From 1996. address: Memphis Airports District a Passenger Facility Charge (PFC) at The following is a brief overview of Office, 2851 Directors Cove, Suite #3, Key Field Airport, Meridian, Mississippi the application. Memphis, TN 38131–0301. PFC Application Number: 96–03–C– AGENCY: Federal Aviation In addition, one copy of any Administration (FAA), DOT. 00–MEI. comments submitted to the FAA must Level of the proposed PFC: $3.00. ACTION: Notice of intent to rule on be mailed or delivered to Mr. Terry Igoe, application. Proposed charge effective date: 11–1– Executive Director of the Metropolitan 92. Knoxville Airport Authority at the SUMMARY: The FAA proposes to rule and Proposed charge expiration date: 10– following address: P.O. Box 15600, invites public comment on the 31–2000. Knoxville, Tennessee. application to impose and use the Total estimated net PFC revenue: Air carriers and foreign air carriers revenue from a PFC at Key Field Airport $528,343. may submit copies of written comments under the provisions of the Aviation Estimated PFC revenues to be used on previously provided to the Metropolitan Safety and Capacity Expansion Act of projects in this application: $250,620 Knoxville Airport Authority under 1990 (Title IX of the Omnibus Budget Brief description of proposed projects: section 158.23 of Part 158. Reconciliation Act of 1990) (Public Law Storm sewer rehabilitation; Emergency FOR FURTHER INFORMATION CONTACT: 101–508) and Part 158 of the Federal communication equipment; Upgrade Peggy S. Kelley, Airports Area Aviation Regulations (14 CFR Part 158). gate entry keypad stations; Taxiway C Representative, Memphis Airports DATES: Comments must be received on overlay; Taxiway B overlay; Terminal District Office, 2851 Directors Cove, or before September 13, 1996. ramp overlay. Suite 3, Memphis, Tennessee 38131– Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices 42309

0301, 901–544–3495. The application Notice of Intent to Rule on Application Level of the proposed PFC: $3.00. may be reviewed in person at this (#96±04±U±00±PDX) to Use the Actual charge effective date: location. Revenue From a Passenger Facility November 1, 1994. Charge (PFC) at Portland International Proposed charge expiration date: SUPPLEMENTARY INFORMATION: The FAA August 31, 1999. proposes to rule and invites public Airport, Submitted by the Port of Portland, Portland, Oregon Total requested for use approval: comment on the application to: impose $203,000.00. and use the revenue from a PFC at AGENCY: Federal Aviation Brief description of proposed project: McGhee Tyson Airport under provisions Administration (FAA), DOT. Taxiway GA Rehabilitation. of the Aviation Safety and Capacity ACTION: Notice of intent to rule on Class or classes of air carriers which Expansion Act of 1990 (Title IX of the application. the public agency has requested not be Omnibus Budget Reconciliation Act of required to collect PFC’s: The carriage in 1990) (Public Law 101–508) and Part SUMMARY: The FAA proposes to rule and air commerce of persons for 158 of the Federal Aviation Regulations invites public comment on the compensation or hire as a commercial (14 CFR Part 158). application to use PFC revenue at operator, but not an air carrier, of On August 8, 1996, the FAA Portland International Airport under the aircraft having a maximum seating determined that the application to provisions of 49 U.S.C. 40117 and Part capacity of less than twenty passengers impose and use the revenue from a PFC 158 of the Federal Aviation Regulations or a maximum payload capacity of less submitted by Metropolitan Knoxville (14 CFR 158). than 6,000 pounds. ‘‘Air Taxi/ Airport Authority was substantially DATES: Comments must be received on Commercial Operator’’ shall also complete within the requirements of or before September 13, 1996. include, without regard to number of section 158.25 of Part 158. The FAA ADDRESSES: Comments on this passengers or payload capacity, revenue will approve or disapprove the application may be mailed or delivered passengers transported for student supplemented application, in whole or in triplicate to the FAA at the following instruction, nonstop sightseeing flights in part, no later than November 9, 1996. address: J. Wade Bryant, Manager; that begin and end at the same airport The following is a brief overview of Seattle Airports District Office, SEA– and are conducted within a 25 statute the application. ADO; Federal Aviation Administration; mile radius of the Airport, ferry or 1601 Lind Avenue SW, Suit 250; training flights, aerial photography or PFC application number: 96–02–C– survey charters, and fire fighting 00–TYS. Renton, WA 98055–4056. In addition, one copy of any charters. Level of the proposed PFC: $3.00. comments submitted to the FAA must Any person may inspect the Proposed charge effective date: be mailed or delivered to Ms. Susan application in person at the FAA office February 1, 1997. Haynes, at the following address: Port of listed above under FOR FURTHER Portland, 7000 N.E. Airport Way, INFORMATION CONTACT and at the FAA Proposed charge expiration date: Regional Airports Office located at: April 1, 1997. Portland, OR 97218. Air Carriers and foreign air carriers Federal Aviation Administration, Total estimated PFC revenue: may submit copies of written comments Northwest Mountain Region, Airports $530,000. previously provided to Portland Division, ANM–600, 1601 Lind Avenue Brief description of proposed project: International Airport, under section S.W., Suite 540, Renton, WA 98055– Program Work Element 1 will reimburse 158.23 of Part 158. 4056. In addition, any person may, upon the Metropolitan Knoxville Airport FOR FURTHER INFORMATION CONTACT: Ms. request, inspect the application, notice Authority for replacement of electrical Mary Vargas, (202)227–2660; Seattle and other documents germane to the conduits, cables, equipment and fixtures Airports District Office, SEA–ADO; application in person at the Portland for taxiway A. This work was necessary Federal Aviation Administration; 1601 International Airport. to support the additional electrical loads Lind Avenue SW, Suite 250; Renton, imposed by new airfield guidance signs. WA 98055–4056. The application may Issued in Renton, Washington on August 6, Class or classes of air carriers which be reviewed in person at this same 1996. the public agency has requested not be location. David A. Field, required to collect PFCs: Non Scheduled SUPPLEMENTARY INFORMATION: The FAA Manager, Planning, Programming and operations by Air Taxi/Commercial proposes to rule and invites public Capacity Branch, Northwest Mountain operators operating under Part 135. comment on the application (#96–04– Region. Any person may inspect the U–00–PDX) to use PFC revenue at [FR Doc. 96–20759 Filed 8–13–96; 8:45 am] application in person at the FAA office Portland International Airport, under BILLING CODE 4910±13±M listed above under FOR FURTHER the provisions of 49 U.S.C. 40117 and INFORMATION CONTACT. Part 158 of the Federal Aviation Notice of Intent To Rule on Application In addition, any person may, upon Regulations (14 CFR Part 158). On August 6, 1996, the FAA To Impose and Use the Revenue From request, inspect the application, notice a Passenger Facility Charge (PFC) at and other documents germane to the determined that the application to use the revenue from a PFC submitted by Tri-Cities Regional Airport, TN/VA, application in person at the Blountville, TN Metropolitan Knoxville Airport Portland International Airport, Portland, Authority, McGhee Tyson Airport. Oregon, was substantially complete AGENCY: Federal Aviation within the requirements of section Administration (FAA), DOT. Issued in Memphis, Tennessee on August 158.25 of Part 158. The FAA will 8, 1996. ACTION: Notice of intent to rule on approve or disapprove the application, application. LaVerne F. Reid, in whole or in part, no later than Manager, Memphis Airports District Office. October 25, 1996. SUMMARY: The FAA proposes to rule and [FR Doc. 96–20758 Filed 8–13–96; 8:45 am] The following is a brief overview of invites public comment on the BILLING CODE 4910±13±M the application. application impose and use the revenue 42310 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices from a PFC at Tri-Cities Regional Area, Terminal Improvements, General For Further Information Contact: Airport, TN/VA under the provisions of Aviation Airfield Development. Christopher Schaffer, Denver Airports the Aviation Safety and Capacity Class or classes of air carriers which District Office, (303) 286–5525. Expansion Act of 1990 (Title IX of the the public agency has requested not be Public Agency: County of Marquette, Omnibus Budget Reconciliation Act of required to collect PFCs: Air Taxi/ Marquette, Michigan. 1990) (Public Law 101–508) and Part Commercial Operators operating under Application Number: 96–03–C–00– 158 of the Federal Aviation Regulations Part 135. MQT. (14 CFR Part 158). Any person may inspect the Application Type: Impose and use DATES: Comments must be received on application in person at the FAA office PFC revenue. or before September 13, 1996. listed above under FOR FURTHER PFC Level: $3.00. ADDRESSES: Comments on this INFORMATION CONTACT. Total Approved Net PFC Revenue in application may be mailed or delivered In addition, any person may, upon This Application: $32,500. in triplicate to the FAA at the following request, inspect the application, notice Estimated Charge Effective Date: address: Memphis Airports District and other documents germane to the October 1, 1996. Estimated Charge Expiration Date: Office, 2851 Directors Cove, Suite #3, application in person at the Tri-Cities December 1, 1996. Memphis, TN 38131–0301. Airport Commission. Class of Air Carriers Not Required to In addition, one copy of any Issued in Memphis, Tennessee on August Collect PFC’s: Part 135 air taxi/charter comments submitted to the FAA must 8, 1996. operators. be mailed or delivered to Mr. John E. LaVerne Reid, Determination: Approved. Based on Hanlin, Executive Director of the Tri- Manager, Airports District Office. information submitted in the public Cities Regional Airport at the following [FR Doc. 96–20757 Filed 8–13–96; 8:45 am] agency’s application, the FAA has address: Tri-Cities Airport Commission, BILLING CODE 4910±13±M determined that the proposed class P.O. Box 1055, Highway 75, Blountville, accounts for less than 1 percent of the TN 37617. total annual enplanements at Marquette Air carriers and foreign air carriers Notice of Passenger Facility Charge County Airport. may submit copies of written comments (PFC) Approvals and Disapprovals Brief Description of Project Approved previously provided to the Tri-Cities for Collection and Use: Acquire snow Airport Commission under section AGENCY: Federal Aviation Administration (FAA), DOT. removal equipment. 158.23 of Part 158. Decision Date: July 2, 1996. FOR FURTHER INFORMATION CONTACT: ACTION: Monthly Notice of PFC For Further Information Contact: Jon Michael L. Thompson, 2851 Directors Approvals and Disapprovals. In July Gilbert, Detroit Airports District Office, Cove, Suite 3, Memphis, TN 38131– 1996, there were 10 applications (313) 487–7281. 0301; Phone 901/544–3495. The approved. Additionally, 10 approved Public Agency: Horry County application may be reviewed in person amendments to previously approved Department of Airports, Myrtle Beach, at this location. applications are listed. South Carolina. SUPPLEMENTARY INFORMATION: The FAA Application Number: 96–91–C–00– proposes to rule and invites public SUMMARY: The FAA publishes a monthly notice, as appropriate, of PFC approvals MYR. comment on the application to impose Application Type: Impose and use and use the revenue from a PFC at Tri- and disapprovals under the provisions of 49 U.S.C. 40117 (Pub. L. 103–272) PFC revenue. Cities Regional Airport, TN/VA under PFC Level: $3.00. and Part 158 of the Federal Aviation provisions of the Aviation Safety and Total Approved Net PFC Revenue: Regulations (14 CFR Part 158). This Capacity Expansion Act of 1990 (Title $13,819,500. IX of the Omnibus Budget notice is published pursuant to Estimated Charge Effective Date: Reconciliation Act of 1990) (Public Law paragraph d of § 158.29. October 1, 1996. 101–508) and Part 158 of the Federal PFC Applications Approved Estimated Charge Expiration Date: Aviation Regulations (14 CFR Part 158). July 1, 2005. Public Agency: Walker Field Airport On August 8, 1996, the FAA determined Class of Air Carriers Not Required to Authority, Grand Junction, Colorado. that the application to impose and use Collect PFC’s: Nonscheduled operations the revenue from a PFC submitted by Application Number: 96–02–U–00– by air taxi/commercial operators filing Tri-Cities Airport Commission was GJT. FAA Form 1800–31. substantially complete within the Application Type: Use PFC revenue. Determination: Approved. Based on requirements of section 158.25 of Part PFC Level: $3.00. information submitted in the public 158. The FAA will approve or Approved FPC Revenue to be Used in agency’s application, the FAA has disapprove the application, in whole or this Application: $267,000. determined that the proposed class in part, no later than November 8, 1996. Charge Effective Date: April 1, 1993. accounts for less than 1 percent of the The following is a brief overview of Estimated Charge Expiration Date: total annual enplanements at Myrtle the application. March 1, 1998. Beach International Airport. PFC application number: 96–01–C– Class of Air Carriers Not Required to Brief Description of Projects Approved 99–TRI. Collect PFC’s: No change from previous for Collection and Use: Air Carrier Level of the proposed PFC: $3.00. decision. apron infield expansion, South apron Proposed charge effective date: Brief Description of Projects Approved expansion, Federal Inspection Station, February 1, 1997. For Use: Rehabilitate taxiway A, Install Terminal A renovation, Land Proposed charge expiration date: fencing, Install precision approach path acquisition, Preparation of PFC February 1, 2009. indicator, runway 11, Install visual application, PFC administrative costs. Total estimated PFC revenue: approach descent indicators and Decision Date: July 9, 1996. $8,476,249. runway end identifier lights, runway 4/ For Further Information Contact: D. Brief description of proposed 22, Rehabilitate runway 4/22. Cameron Bryan, Atlanta Airports project(s): Extend Runway 5 Safety Decision Date: July 2, 1996. District Office, (404) 305–7144. Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices 42311

Public Agency: County of Gregg, For Further Information Contact: Determination: Approved in part. Longview, Texas. Philip Brito New York Airports District This project is generally eligible under Application Number: 96–01–C–00– Office, (516) 227–3803. Airports Improvement Program (AIP) GGG. Public Agency: Columbus Municipal criteria, paragraph 568 of FAA Order Application Type: Impose and use a Airport Authority, Columbus, Ohio. 5100.38A, AIP Handbook. However, as PFC. Application Number: 96–05–C–00– stated in paragraph 568, the allowable PFC Level: $3.00. CMH. cost of utilities will be prorated between Total Approved Net PFC Revenue: Application Type: Impose and use the eligible and ineligible areas or $472,571. PFC revenue. facilities served by these utilities. If the Estimated Charge Effective Date: PFC Level: $3.00. prorated share of the costs for those September 1, 1996. Total Approved Net PFC Revenue in utilities serving eligible areas or Estimated Charge Expiration Date: This Application: $9,437,955. facilities is less than the approved January 1, 2001. Estimated Charge Effective Date: amount shown above, the Port of Class of Air Carriers Not Required to November 1, 1996. Oakland will take immediate steps to Collect PFC’s: None. Estimated Charge Expiration Date: amend this approval to decrease the Brief Description of Projects Approved November 1, 1997. PFC revenue available for this project. for Collection and Use of PFC Revenue: Class of Air Carriers Not Required to Brief Description of Disapproved Terminal apron improvements—unit 2, Collect PFC’s: Air taxi/commercial Project: Upgrade M104 switchgear. Runway 13/31 overlay and operators. Determination: Disapproved. The miscellaneous improvements, Airport Determination: Approved. Based on majority of the loads using these master plan, Guidance sign information submitted in the public switchgears proposed for replacement improvements, Terminal apron agency’s application, the FAA has were determined to be ineligible under improvements—unit 3, Runway 17/35 determined that the proposed class AIP criteria, paragraph 568 and rehabilitation, 1,000 gallon aircraft accounts for less than 1 percent of the Appendix 2 of FAA Order 5100.38A, rescue and firefighting (ARFF) vehicle. total annual enplanements at Port AIP Handbook. In addition, the Port of Decision Date: July 9, 1996. Columbus International Airport. Oakland included a provision for spare For Further Information Contact: Ben Brief Description of Project Approved breakers which are considered a Guttery, Southwest Region Airports for Collection and Use: Runway 10L/ maintenance item and, thus, are also Division, (817) 222–5614. 28R improvements. ineligible under AIP criteria, paragraph Public Agency: Helena Regional Decision Date: July 16, 1996. 501 of FAA Order 5100.38A. Therefore, Airport Authority, Helena, Montana. For Further Information Contact: the project does not meet the Application Number: 96–02–U–00– Mary W. Jagiello, Detroit Airports requirements of § 158.15(b)(1) and is HLN. District Office, (313) 487–7296. disapproved. Application Type: Use PFC revenue. Public Agency: Port of Oakland, Decision Date: July 23, 1996. PFC Level: $3.00. Oakland, California. For Further Information Contact: Total Net PFC Revenue To Be Used in Application Number: 96–06–C–00– Joseph R. Rodriguez, San Francisco This Application: $130,026. OAK. Airports District Office, (415) 876–2805. Charge Effective Date: April 1, 1993. Application Type: Impose and use Public Agency: City of Modesto, Estimated Charge Expiration Date: PFC revenue. California. September 1, 1999. PFC Level: $3.00. Application Number: 96–03–U–00– Class of Air Carriers Not Required To Total Approved Net PFC Revenue in MOD. Collect PFC’s: No change from previous This Application: $4,063,541. Application Type: Use PFC revenue. decision. Estimated Charge Effective Date: PFC Level: $3.00. Brief Description of Project Approved February 1, 1997. Total Net PFC Revenue To Be Used in for Use: Runway 9/27 overlay. Estimated Charge Expiration Date: This Application: $22,606. Decision Date: July 16, 1996. May 1, 1997. Charge Effective Date: August 1, 1994. For Further Information Contact: Class of Air Carriers Not Required to Estimated Charge Expiration Date: David Gabbert, Helena Airports District Collect PFC’s: Air taxi/commercial August 1, 2000. Office, (406) 449–5271. operators exclusively filing FAA Form Class of Air Carriers Not Required to Public Agency: County of Chautauqua, 1800–31. Collect PFC’s: No change from previous Jamestown, New York. Determination: Approved. Based on decision. Application Number: 96–02–U–00– information submitted in the public Brief Description of Project Approved JHW. agency’s application, the FAA has for Use of PFC Revenue: Runway 10L/ Application Type: Use PFC revenue. determined that the proposed class 28R holding bays. PFC Level: $3.00. accounts for less than 1 percent of the Decision Date: July 31, 1996. Total Net PFC Revenue To Be Used in total annual enplanements at For Further Information Contact: This Application: $156,412. Metropolitan Oakland International Joseph R. Rodriguez, San Francisco Charge Effective Date: June 1, 1993. Airport. Airports District Office, (415) 876–2805. Estimated Charge Expiration Date: Brief Description of Project Approved Public Agency: Charlottesville- February 1, 2000. for Collection and Use: Seismic upgrade Albemarle Airport Authority, Class of Air Carriers Not Required To of building M101, Construct second Charlottesville, Virginia. Collect PFC’s: No change from previous jetway at the International Arrivals Application Number: 96–09–U–00– decision. building, Purchase two 3,000 gallon CHO. Brief Description of Projects Approved ARFF trucks, Overlay runway 27L/9R. Application Type: Use PFC revenue. for Use: Overlay runway 7/25, Brief Description of Project Approved PFC Level: $3.00. Obstruction removal, phase 2, in Part for Collection and Use: Replace Total Net PFC Revenue To Be Used in Reconstruct entry road. normal power breakers in building This Application: $61,566. Decision Date: July 16, 1996. M102. Charge Effective Date: April 1, 1995. 42312 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices

Estimated Charge Expiration Date: Brief Description of Project Approved For Further Information Contact: August 1, 2004. for Use of PFC Revenue: Overlay Robert Mendez, Washington Airports Class of Air Carriers Not Required to runway 3/21. District Office, (703) 285–2570. Collect PFC’s: No change from previous Decision Date: July 31, 1996. decisions.

AMENDMENTS TO PFC APPROVALS

Original es- Amended Amendment Amended ap- Original ap- timated estimated Amendment No., City, State approved proved net proved net charge exp. charge exp. date PFC revenue PFC revenue date date

93±01±C±01±CPR, Casper, WY ...... 01/20/95 $693,974 $506,144 10/01/96 03/01/97 92±01±I±02±MQT, Marquette, MI ...... 04/25/96 446,200 458,700 04/01/96 04/01/96 94±01±C±02±AVL, Asheville, NC ...... 06/14/96 5,645,711 5,645,711 06/01/01 06/01/01 94±01±C±01±SLC, Salt Lake City, UT ...... 06/17/96 65,177,790 99,230,800 05/01/98 03/01/99 92±01±C±01±GFK, Grand Forks, ND ...... 06/24/96 796,468 1,016,509 02/01/97 05/01/96 92±01±C±01±CAK, Akron, OH ...... 06/26/96 3,594,000 2,558,851 08/01/96 11/01/96 92±01±C±03±MSO, Missoula, MT ...... 07/03/96 2,049,300 2,905,937 09/01/97 01/01/98 92±01±C±01±HLN, Helena, MT ...... 07/03/96 1,056,190 962,829 12/01/99 09/01/99 93±01±C±03±MDW, Chicago, IL ...... 07/11/96 72,910,908 81,371,107 07/01/07 12/01/09 95±03±C±01±MDW, Chicago, IL ...... 07/11/96 11,916,250 46,419,783 07/01/07 12/01/09

Issued in Washington, D.C. on August 7, Washington, DC 20229, Tel. (202) 927– the Department of Transportation or an 1996. 1426. EPA 35201 Form with the Donna P. Taylor, SUPPLEMENTARY INFORMATION: The newly Environmental Protection Agency. Manager, Passenger Facility Charge Branch. proposed International Trade Data Names, addresses, descriptions, [FR Doc. 96–20753 Filed 8–13–96; 8:45 am] System (ITDS) is being designed to classifications, serial numbers would BILLING CODE 4910±13±M integrate the different government trade have to be provided only once and the and transportation data collection information would be provided to all processes to provide a standard means appropriate agencies. The data system of gathering, processing, storing, and would also standardize trade and DEPARTMENT OF THE TREASURY disseminating import and export trade transportation data for both imports and data. Agencies would share data as exports based on the information Customs Service needed to support their individual normally established among trading agency mission while maintaining partners in the customary conduct of Proposed Collection; Comment agency specific information in their own business. Such elements as commercial Request; Commercial Invoices files. As envisioned, the system would descriptions and quantifies, names and AGENCY: U.S. Customs, Department of provide for the electronic exchange of addresses of parties to shipments, and the Treasury. declarations, foreign and domestic departure and arrival locations, all of issued licences and other documents which are part of normal commercial ACTION: Notice and request for required of trading parties based on information would be defined so that comments. commercial data. For example, it would they mean the same thing to all users. SUMMARY: As part of its continuing effort allow for interagency notice of licensing Standard definitions of terms, to reduce paperwork and respondent and permitting decisions, and standard codes and abbreviations for burden, Customs invites the general accommodate the decrementing of countries, goods and conveyance modes public and other Federal agencies to licenses, while allowing control of the and shipment identifiers would simplify comment on an information collection license and permit issuing processes to procedures and help streamline requirement concerning the Commercial be maintained by responsible agencies. processes. The system would use a Invoices. This request for comment is To accommodate a constantly changing recognized standard, such as United being made pursuant to the Paperwork economic and geopolitical world, the Nations/Electronic Data Interface for Reduction Act of 1995 (Pub. L. 104–13; system would be designed for flexibility Administration, Commerce, and 44 U.S.C. 3505(c)(2)). and easy modification, so that new trade Transportation (UN/EDIFACT). laws and regulations requirements Those additional data elements DATES: Written comments should be would be more easily incorporated into necessary for monitoring specific goods received on or before October 15, 1996, the integrated data system. A very would be added to the commercial level to be assured of consideration. important part of the ITDS would be to record of the ITDS and made available ADDRESSES: Direct all written comments provide a convenient entry point for to the applicable agency or agencies. By to U.S. Customs Service, Printing and business to provide international trade standardizing the data collected and by Records Services Group, Room 6216, data to all agencies needing to be eliminating duplicate data, agencies 1301 Constitution Ave., NW., involved in a transaction. Importers and would be able to integrate many of their Washington, DC 20229. exporters would only have to provide present systems for selecting and FOR FURTHER INFORMATION CONTACT: the information once and it would be targeting potentially violative shipments Requests for additional information or routed among the appropriate agencies. and thus provide more efficient and copies of the form(s) and instructions As an example: importers would not enforcement of trade statutes and should be directed to U.S. Customs have to file identical information on a regulations. Improved analysis of trade Service, Attn.: J. Edgar Nichols, Room CF 7501 Form with Customs, an FDA and transportation flow and trends 6216, 1301 Constitution Avenue NW., Form 701 with FDA, an HS7 Form with would also enhance trade promotion Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices 42313 activities and provide a better basis for number of participants, operating at six to assure compliance with statues and establishing and negotiating sites. The sites are: Buffalo/Fort Erie, regulations. international trade policy. Aggregate Detroit/Windsor, Laredo/Nuevo Laredo, Current Actions: There are no changes level trade data would be available El Paso/Ciudad, Otay Mesa/Tijuana, and to the information collection. This established distribution channels to U.S. Nogales/Nogales. It will operate in submission is being submitted to extend businesses and the general public. parallel with current systems. the expiration date. The trade promotion component of Participants in the Prototype must Type of Review: Extension (without the ITDS would provide information on continue to meet all current change). both exporting and importing to the requirements. NATAP will allow the Affected Public: Business or other for- international trade community. By using three Custom administrations to step profit institutions. the Department of Commerce’s National outside existing systems and experiment Estimated Number of Respondents: Trade Data Bank, the system would with new procedures and technologies 350,000. provide user friendly electronic access to realize the goals and vision of to basic export and import information, NAFTA. Although NATAP will be Estimated Time Per Respondent: 10 market research reports, overseas limited in scope, the concepts that will seconds. contacts, duty rates, and information on be tested are a reflection of the full scale Estimated Total Annual Burden international financial assistance. data system envisioned. Hours: 84,000. Reference materials such as U.S. Export NATAP will encompass the Estimated Total Annualized Cost on Regulations, Customs Regulations, and transportation and commercial data for the Public: $1,201,200.00. an International Trade Terms Directory export and import processes in the land Dated: August 9, 1996. would be available online. A guide to border environment. The extent to V. Carol Barr, U.S. agencies involved in international which each government extends the trade would also be available. Access to Printing and Records Services Group. functionality of the Prototype for testing [FR Doc. 96–20713 Filed 8–13–96; 8:45 am] U.S. contacts at the Federal, State, and other agency requirements or to local levels including names, phone and experiment with national risk BILLING CODE 4820±02±P fax numbers, and E-mail address would assessment or selectivity processing be in the system. Most importantly, the system will be determined by each public portions of the system would be Customs authority. NATAP will be [T.D. 96±60] readily available to the general public tested and evaluated at the above Recordation of Trade Name: ``OMI through the Internet, and from kiosks in mentioned sites beginning in Industries Inc.'' world Trade Centers, Federal Building’s, September, 1996 and is expected to run public libraries, and Customs Houses through March, 1997. AGENCY: U.S. Customs Service, around the country. Customs invites the general public Proof of concept for the ITDS will be Department of the Treasury. and other Federal agencies to comment the North American Trade Prototype, a ACTION: on proposed and/or continuing Notice of Recordation. cargo and conveyance processing information collections pursuant to the system being developed jointly by SUMMARY: On April 3, 1996, a notice of Canada, Mexico and the United States Paperwork Reduction Act of 1995 (Pub. application for the recordation under under the auspices of the Heads of L. 104–13; 44 U.S.C. 3505(c)(2)). The section 42 of the Act of July 5, 1946, as customs Conference. Article 512 of comments should address using amended (15 U.S.C. 1124), of the trade NAFTA, entitled ‘‘Cooperation’’, states commercial documents as the basis for name ‘‘OMI INDUSTRIES INC.,’’ was that to the extent possible the three processing the port clearance of published in the Federal Register (61 Parties shall cooperate, for the purpose international trade transactions at the FR 14851). The notice advised that of facilitation of the flow of trade, the border; the accuracy of the burden before final action was taken on the harmonization of documentation, estimates in terms of reporting and application, consideration would be standardization of data elements, the record keeping and capitalization costs, given to any relevant data, views, or acceptance of an international data if any; and ways to minimize the burden arguments submitted in writing by any syntax, and the exchange of including the use of automated person in opposition to the recordation information. This North American collection techniques or the use of other and received not later than June 3, 1996. Trade Automation Prototype (NATAP) forms of information technology, as well No responses were received in will allow the Customs, Transportation, as other relevant aspects of the opposition to the notice. Accordingly, as and Immigration Services, and other information collection. provided in section 133.14, Customs participating government agencies of all The comments that are submitted will Regulations (19 CFR 133.14), the name three countries to experiment with be summarized and included in the ‘‘OMI INDUSTRIES INC.,’’ is recorded advanced processing and Customs request for Office of as the trade name used by OMI documentation systems and incorporate Management and Budget (OMB) Industries Inc., a corporation organized new techniques to facilitate and regulate approval. All comments will become a under the laws of the State of Ohio, the flow of trade among the three matter of public record. In this located at 310 Outerbelt Street, countries. NATAP is based on document Customs is soliciting Columbus, Ohio 43213. comments concerning the following commercial, transaction-level The trade name is used in connection information collection: information for all shipments, standard with aluminum and steel die cast Title: Commercial Invoices. data elements and definitions, pre- products. arrival processing, Radio Frequency OMB Number: 1515–0120. Identification Devices on conveyances Form Number: N/A. EFFECTIVE DATE: August 14, 1996. to provide advance notice of arrival, Abstract: The collection of FOR FURTHER INFORMATION CONTACT: paperless transactions, and UN/ Commercial Invoices is necessary for Delois P. Johnson, Intellectual Property EDIFACT communication protocol. the proper assessment of Customs Rights Branch, 1301 Constitution NATAP itself will be a low volume duties. The information which is Avenue, NW., (Franklin Court), test of new concepts with a limited supplied by the foreign shipper is used Washington, D.C. 20229 (202 482–6960). 42314 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices

Date: August 5, 1996. Current Actions: There is no change to SUMMARY: The Department of the John F. Atwood, this existing regulation. Treasury, as part of its continuing effort Chief, Intellectual Property Rights Branch. Type of Review: Extension of OMB to reduce paperwork and respondent [FR Doc. 96–20666 Filed 8–13–96; 8:45 am] approval. burden, invites the general public and BILLING CODE 4820±02±P Affected Public: Business or other for- other Federal agencies to take this profit organizations, and individuals or opportunity to comment on proposed households. and/or continuing information Internal Revenue Service Estimated Number of Respondents: collections, as required by the 100,000. Paperwork Reduction Act of 1995, [IA±38±90] Estimated Time Per Respondent: 30 Public Law 104–13 (44 U.S.C. Proposed Collection; Comment min. 3506(c)(2)(A)). Currently, the IRS is Request For Regulation Project Estimated Total Annual Burden soliciting comments concerning an Hours: 50,000. existing notice of proposed rulemaking, AGENCY: Internal Revenue Service (IRS), The following paragraph applies to all INTL–978–86, Information Reporting by Treasury. of the collections of information covered Passport and Permanent Residence ACTION: Notice and request for by this notice: Applicants (§ 301.6039E–1(c)). An agency may not conduct or comments. DATES: Written comments should be sponsor, and a person is not required to received on or before October 15, 1996 SUMMARY: The Department of the respond to, a collection of information to be assured of consideration. Treasury, as part of its continuing effort unless the collection of information to reduce paperwork and respondent displays a valid OMB control number. ADDRESSES: Direct all written comments burden, invites the general public and Books or records relating to a collection to Garrick R. Shear, Internal Revenue other Federal agencies to take this of information must be retained as long Service, room 5571, 1111 Constitution opportunity to comment on proposed as their contents may become material Avenue NW., Washington, DC 20224. and/or continuing information in the administration of any internal FOR FURTHER INFORMATION CONTACT: collections, as required by the revenue law. Generally, tax returns and Requests for additional information or Paperwork Reduction Act of 1995, tax return information are confidential, copies of the information collection Public Law 104–13 (44 U.S.C. as required by 26 U.S.C. 6103. should be directed to Carol Savage, 3506(c)(2)(A)). Currently, the IRS is REQUEST FOR COMMENTS: (202) 622–3945, Internal Revenue soliciting comments concerning an Comments submitted in response to this notice will Service, room 5569, 1111 Constitution existing final regulation, IA–38–90 (TD Avenue NW., Washington, DC 20224. 8382), Penalty on Income Tax Return be summarized and/or included in the Preparers Who Understate Taxpayer’s request for OMB approval. All SUPPLEMENTARY INFORMATION: Liability on a Federal Income Tax comments will become a matter of public record. Comments are invited on: Title: Information Reporting by Return or a Claim for Refund Passport and Permanent Residence (§§ 1.6694–2(c) and 1.6694–3(e)). (a) whether the collection of information is necessary for the proper performance Applicants. DATES: Written comments should be of the functions of the agency, including OMB Number: 1545–1359. received on or before October 15, 1996 whether the information shall have Regulation Project Number: INTL– to be assured of consideration. practical utility; (b) the accuracy of the 978–86 (Notice of proposed ADDRESSES: Direct all written comments agency’s estimate of the burden of the rulemaking). to Garrick R. Shear, Internal Revenue collection of information; (c) ways to Abstract: The regulations require Service, room 5571, 1111 Constitution enhance the quality, utility, and clarity applicants for passports and permanent Avenue NW., Washington, DC 20224. of the information to be collected; (d) residence status to report certain tax FOR FURTHER INFORMATION CONTACT: ways to minimize the burden of the information on the applications. The Requests for additional information or collection of information on regulations are intended to enable the copies of the information collection respondents, including through the use IRS to identify U.S. citizens who have should be directed to Carol Savage, of automated collection techniques or not filed tax returns and permanent (202) 622–3945, Internal Revenue other forms of information technology; residents who have undisclosed sources Service, room 5569, 1111 Constitution and (e) estimates of capital or start-up of foreign income and to notify such Avenue NW., Washington, DC 20224. costs and costs of operation, persons of their duty to file United SUPPLEMENTARY INFORMATION: maintenance, and purchase of services States tax returns. to provide information. Current Actions: There is no change to Title: Penalty on Income Tax Return this existing regulation. Preparers Who Understate Taxpayer’s Approved: August 8, 1996. Type of Review: Extension of OMB Liability on a Federal Income Tax Garrick R. Shear, approval. Return or a Claim for Refund. IRS Reports Clearance Officer. OMB Number: 1545–1231. Affected Public: Individuals or [FR Doc. 96–20743 Filed 8–13–96; 8:45 am] households. Regulation Project Number: IA–38–90 BILLING CODE 4830±01±P (Final). Estimated Number of Respondents for Abstract: These regulations set forth Passport Applicants: 5,000,000. rules under section 6694 of the Internal [INTL±978±86] Estimated Time Per Respondent: 6 Revenue Code regarding the penalty for min. understatement of a taxpayer’s liability Proposed Collection; Comment Estimated Total Annual Burden on a Federal income tax return or claim Request For Regulation Project Hours for Passport Applicants: 500,000. for refund. In certain circumstances, the AGENCY: Internal Revenue Service (IRS), Estimated Number of Respondents for preparer may avoid the penalty by Treasury. Permanent Residence Applicants: disclosing on a Form 8275 or by 500,000. ACTION: Notice and request for advising the taxpayer or another Estimated Time Per Respondent: 30 comments. preparer that disclosure is necessary. min. Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices 42315

Estimated Total Annual Burden ACTION: Notice and request for Type of Review: Extension of OMB Hours for Permanent Residence comments. approval. Applicants: 250,000. Affected Public: Business or other for- The following paragraph applies to all SUMMARY: The Department of the profit organizations. of the collections of information covered Treasury, as part of its continuing effort Estimated Number of Respondents: by this notice: to reduce paperwork and respondent 250,000. burden, invites the general public and An agency may not conduct or Estimated Time Per Respondent: 1 other Federal agencies to take this sponsor, and a person is not required to hour. respond to, a collection of information opportunity to comment on proposed Estimated Total Annual Burden unless the collection of information and/or continuing information Hours: 250,000. displays a valid OMB control number. collections, as required by the The following paragraph applies to all Books or records relating to a collection Paperwork Reduction Act of 1995, of the collections of information covered of information must be retained as long Public Law 104–13 (44 U.S.C. by this notice: as their contents may become material 3506(c)(2)(A)). Currently, the IRS is in the administration of any internal soliciting comments concerning an An agency may not conduct or revenue law. Generally, tax returns and existing final regulation, IA–83–90 (TD sponsor, and a person is not required to tax return information are confidential, 8383), Disclosure of Tax Return respond to, a collection of information as required by 26 U.S.C. 6103. Information for Purposes of Quality or unless the collection of information displays a valid OMB control number. REQUEST FOR COMMENTS: Comments Peer Reviews; Disclosure of Tax Return Books or records relating to a collection submitted in response to this notice will Information Due to Incapacity or Death of information must be retained as long be summarized and/or included in the of Tax Return Preparer (§ 301.7216– as their contents may become material request for OMB approval. All 2(o)). in the administration of any internal comments will become a matter of DATES: Written comments should be revenue law. Generally, tax returns and public record. Comments are invited on: received on or before October 15, 1996 tax return information are confidential, (a) whether the collection of information to be assured of consideration. as required by 26 U.S.C. 6103. is necessary for the proper performance ADDRESSES: Direct all written comments REQUEST FOR COMMENTS: Comments of the functions of the agency, including to Garrick R. Shear, Internal Revenue submitted in response to this notice will whether the information shall have Service, room 5571, 1111 Constitution be summarized and/or included in the practical utility; (b) the accuracy of the Avenue NW., Washington, DC 20224. agency’s estimate of the burden of the request for OMB approval. All FOR FURTHER INFORMATION CONTACT: collection of information; (c) ways to comments will become a matter of Requests for additional information or enhance the quality, utility, and clarity public record. Comments are invited on: copies of the information collection of the information to be collected; (d) (a) whether the collection of information should be directed to Carol Savage, ways to minimize the burden of the is necessary for the proper performance (202) 622–3945, Internal Revenue collection of information on of the functions of the agency, including Service, room 5569, 1111 Constitution respondents, including through the use whether the information shall have Avenue NW., Washington, DC 20224. of automated collection techniques or practical utility; (b) the accuracy of the other forms of information technology; SUPPLEMENTARY INFORMATION: agency’s estimate of the burden of the collection of information; (c) ways to and (e) estimates of capital or start-up Title: Disclosure of Tax Return costs and costs of operation, enhance the quality, utility, and clarity Information for Purposes of Quality or of the information to be collected; (d) maintenance, and purchase of services Peer Reviews; Disclosure of Tax Return to provide information. ways to minimize the burden of the Information Due to Incapacity or Death collection of information on Approved: August 8, 1996. of Tax Return Preparer. respondents, including through the use Garrick R. Shear, OMB Number: 1545–1209. of automated collection techniques or IRS Reports Clearance Officer. Regulation Project Number: IA–83–90 other forms of information technology; [FR Doc. 96–20744 Filed 8–13–96; 8:45 am] (Final). and (e) estimates of capital or start-up BILLING CODE 4830±01±P Abstract: These regulations govern the costs and costs of operation, circumstances under which tax return maintenance, and purchase of services information may be disclosed for to provide information. [IA±83±90] purposes of conducting quality or peer reviews, and disclosures that are Approved: August 8, 1996. Proposed Collection; Comment necessary because of the tax return Garrick R. Shear, Request For Regulation Project preparer’s death or incapacity. IRS Reports Clearance Officer. AGENCY: Internal Revenue Service (IRS), Current Actions: There is no change to [FR Doc. 96–20745 Filed 8–13–96; 8:45 am] Treasury. this existing regulation. BILLING CODE 4830±01±P federal register August 14,1996 Wednesday Quantities; ProposedRule Substance DesignationandReportable Waste; Solvents;CERCLAHazardous Identification andListingofHazardous Hazardous WasteManagementSystem; 40 CFRParts261,271,and302 Protection Agency Environmental Part II 42317 42318 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Proposed Rules

ENVIRONMENTAL PROTECTION Although the mailing address for the SUPPLEMENTARY INFORMATION: There are AGENCY RCRA Information Center has not no regulated entities as a result of this changed, the office was physically action. 40 CFR Parts 261, 271, and 302 moved in November 1995. Therefore, I. Background [SWH±FRL±5551±3] hand-delivered comments should be A. Statutory and Regulatory Authorities taken to the new address: 1235 Jefferson B. Existing Solvent Listings and the RIN 2050±AD84 Davis Highway, First Floor, Arlington, Regulatory Definition of Solvent Hazardous Waste Management Virginia. Copies of materials relevant to II. Today’s Action A. Summary of Today’s Action System; Identification and Listing of this proposed rulemaking are located in the docket at the address listed above. B. EPA’s Evaluation of Solvent Use Hazardous Waste; Solvents; CERCLA 1. Development of Study Universe Hazardous Substance Designation and The docket is open from 9:00 a.m. to 4:00 p.m., Monday through Friday, 2. Applicability to National Use Reportable Quantities C. Description of Health and Risk excluding Federal holidays. The public Assessments AGENCY: Environmental Protection must make an appointment to review 1. Human Health Criteria and Effects Agency. docket materials by calling (703) 603– 2. Risk Assessment ACTION: Notice of proposed rulemaking. 9230. The public may copy 100 pages a. Selection of Waste Management from the docket at no charge; additional Scenarios SUMMARY: After extensive study of 14 copies cost $0.15 per page. b. Exposure Scenarios chemicals potentially used as solvents, EPA is asking prospective c. Risk Assessment Methodology characterization of the wastes generated commenters to voluntarily submit one d. Consideration of Damage Cases from solvent uses, and a risk assessment e. Risk Assessment Results additional copy of their comments on evaluating plausible mismanagement D. Acetonitrile labeled personal computer diskettes in scenarios for these wastes, the U.S. EPA 1. Industry Identification ASCII (TEXT) format or a word is proposing not to list those additional 2. Description of Solvent Usage and processing format that can be converted wastes from solvent uses as hazardous Resulting Wastes to ASCII (TEXT). It is essential to a. Solvent Use and Questionnaire waste under 40 CFR Part 261. This specify on the disk label the word Responses action is proposed under the authority processing software and version/edition b. Physical/Chemical Properties and of Sections 3001(e)(2) and 3001(b)(1) of as well as the commenter’s name. This Toxicity the Hazardous and Solid Waste will allow EPA to convert the comments c. Waste Generation, Characterization, and Amendments (HSWA) of 1984, which into one of the word processing formats Management direct EPA to make a hazardous waste 3. Basis for Proposed No-List utilized by the Agency. Please use listing determination for solvent wastes. Determination The determinations in this proposed mailing envelopes designed to protect a. Risk Assessment rule are limited to specific solvent physically the submitted diskettes. EPA b. Environmental Damage Incidents wastes, and are made pursuant to the emphasizes that submission of c. Conclusion current regulatory structure that comments on diskettes is not E. 2-Methoxyethanol (2–ME) mandatory, nor will it result in any 1. Industry Identification classifies wastes as hazardous either 2. Description of Solvent Usage and through a specific listing or as defined advantage or disadvantage to the commenter. Rather, EPA is Resulting Waste under the more generic hazardous waste a. Solvent Use and Questionnaire characteristics. Many of the solvent experimenting with this procedure as an attempt to expedite our internal review Responses wastes addressed in this proposed rule b. Physical/Chemical Properties and are already regulated as hazardous and response to comments. This Toxicity wastes due to their characteristics. It is expedited procedure is in conjunction c. Waste Generation, Characterization, and important to note that the proposal not with the Agency ‘‘Paperless Office’’ Management to list these solvent wastes as hazardous campaign. For further information on 3. Basis for Proposed No-List wastes is not a determination that these the submission of diskettes, contact the Determination a. Risk Assessment chemicals are nontoxic. It is a Waste Identification Branch at the phone number listed below. b. Environmental Damage Incidents determination only regarding the need c. Conclusion for specifically adding these solvent Requests for a hearing should be F. Methyl Chloride wastes to the lists of hazardous waste. addressed to Mr. David Bussard at: 1. Industry Identification DATES: EPA will accept public Office of Solid Waste, Hazardous Waste 2. Description of Solvent Usage and comments on this proposed rule until Identification Division (5304W), U.S. Resulting Waste October 15, 1996. Comments Environmental Protection Agency, 401 a. Solvent Use and Questionnaire postmarked after this date will be M Street, SW, Washington, D.C. 20460, Responses marked ‘‘late’’ and may not be (703) 308–8880. b. Physical/Chemical Properties and Toxicity considered. Any person may request a FOR FURTHER INFORMATION CONTACT: The c. Waste Generation, Characterization, and public hearing on this proposal by filing RCRA/Superfund Hotline toll-free, at Management a request with Mr. David Bussard, (800) 424–9346, or at (703) 920–9810 in 3. Basis for Proposed No-List whose address appears below, by the Washington, D.C. metropolitan area. Determination August 28, 1996. The TDD Hotline number is (800) 553– a. Risk Assessment ADDRESSES: The official record for this 7672 (toll-free) or (703) 486–3323 in the b. Environmental Damage Incidents proposed rulemaking is identified by Washington, D.C. metropolitan area. For c. Conclusion Docket Number F–96–SLDP–FFFFF and technical information or questions G. Phenol is located at the following address. The regarding the submission of diskettes, 1. Industry Identification 2. Description of Solvent Usage and public must send an original and two contact Mr. Ron Josephson, U.S. EPA Resulting Wastes copies of their comments to: RCRA Office of Solid Waste, Waste a. Solvent Use and Questionnaire Information Center, U.S. Environmental Identification Branch (5304W), 401 M Responses Protection Agency (5305W), 401 M St., SW, Washington, D.C. 20460, (703) b. Physical/Chemical Properties and Street, SW, Washington, D.C., 20460. 308–8890. Toxicity Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Proposed Rules 42319 c. Waste Generation, Characterization, and a. Risk Assessment that the listing determination is Management b. Environmental Damage Incidents scheduled to be proposed for public 3. Basis for Proposed No-List c. Conclusion comment on or before July 31, 1996; Determination M. 2-Methoxyethanol Acetate (2-MEA) upon notification to EDF, this date may a. Risk Assessment 1. Industry Identification be extended for up to 15 days. Under b. Environmental Damage Incidents 2. Description of Solvent Usage and c. Conclusion Resulting Waste the agreement, EPA must promulgate H. 2-Ethoxyethanol Acetate (2–EEA) a. Solvent Use and Questionnaire the final rule on or before May 31, 1997. 1. Industry Identification Responses This listing determination includes the 2. Description of Solvent Usage and b. Physical/Chemical Properties and following spent solvents, still bottoms Resulting Waste Toxicity from the recovery of the following a. Solvent Use and Questionnaire c. Waste Generation, Characterization, and solvents, and spent solvent mixtures Responses Management thereof: cumene, phenol, isophorone, b. Physical/Chemical Properties and 3. Basis for Proposed No-List acetonitrile, furfural, epichlorohydrin, Toxicity Determination c. Waste Generation, Characterization, and methyl chloride, ethylene dibromide, a. Risk Assessment benzyl chloride, p-dichlorobenzene, 2- Management b. Environmental Damage Incidents 3. Basis for Proposed No-List c. Conclusion methoxyethanol, 2-methoxyethanol Determination N. Chemicals Not Used as Solvents acetate, 2-ethoxyethanol acetate, and a. Risk Assessment 1. p-Dichlorobenzene cyclohexanol. b. Environmental Damage Incidents 2. Benzyl Chloride For an additional set of solvents, EPA c. Conclusion 3. Epichlorohydrin agreed to conduct a study, in lieu of a I. Furfural 4. Ethylene Dibromide 1. Industry Identification listing determination, and issue a final O. Relationship to RCRA Regulations and 2. Description of Solvent Usage and report. The study is scheduled to be Resulting Wastes Other Regulatory issued by August 30, 1996. This study a. Solvent Use and Questionnaire III. Waste Minimization is to discuss the wastes associated with Responses IV. State Authority the use of the materials as solvents, the A. Applicability of Rule in Authorized b. Physical/Chemical Properties and toxicity of the wastes, and a description Toxicity States B. Effect on State Authorizations of the management practices for the c. Waste Generation, Characterization, and wastes. These additional chemicals are: Management V. CERCLA Designation and Reportable 3. Basis for Proposed No-List Quantities diethylamine, aniline, ethylene oxide, Determination VI. Regulatory Impacts allyl chloride, 1,4-dioxane, 1,1- a. Risk Assessment A. Executive Order 12866 dichloroethylene, and bromoform. b. Environmental Damage Incidents VII. Environmental Justice As part of its regulations c. Conclusion VIII. Regulatory Flexibility Act implementing Section 3001(e) of RCRA, J. Cumene IX. Paperwork Reduction Act EPA published a list of hazardous 1. Industry Identification X. Unfunded Mandates Reform Act wastes that includes hazardous wastes 2. Description of Solvent Usage and XI. Compliance and Implementation generated from nonspecific sources and Resulting Waste I. Background a list of hazardous wastes from specific a. Solvent Use and Questionnaire Response sources. These lists have been amended b. Physical/Chemical Properties and A. Statutory and Regulatory Authorities Toxicity several times and are published in 40 c. Waste Generation, Characterization, and This investigation and listing CFR 261.31 and 40 CFR 261.32, Management determination was conducted under the respectively. In today’s action, EPA is 3. Basis for Proposed No-List authority of Sections 2002(a), 3001(b) proposing not to amend 40 CFR 261.31 Determination and 3001(e)(2) of the Solid Waste to add wastes from nonspecific sources a. Risk Assessment Disposal Act (42 U.S.C. 6912(a), and generated during the use of the 14 b. Environmental Damage Incidents 6921 (b) and (e)(2)), as amended solvents. This is not a determination c. Conclusion (commonly referred to as RCRA). that these chemicals are nontoxic. Many K. Cyclohexanol Section 102(a) of the Comprehensive of these solvent wastes are, in fact, 1. Industry Identification 2. Description of Solvent Usage and Environmental Response, already regulated as hazardous waste Resulting Waste Compensation, and Liability Act of 1980 because they exhibit a hazardous waste a. Solvent Use and Questionnaire (CERCLA), 42 U.S.C. 9602(a), is the characteristic under 40 CFR 261 Subpart Responses authority for the CERCLA aspects of this B, and/or because they are mixed with b. Physical/Chemical Properties and proposed rule. other solvent wastes that are, Toxicity Section 3001(e)(2) of RCRA (42 U.S.C. themselves, listed hazardous waste. c. Waste Generation, Characterization, and 6921(e)(2)) requires EPA to determine Rather, this is a determination only Management whether to list as hazardous several regarding the need for adding these 3. Basis for Proposed No-List specified wastes, including solvent Determination specific wastes to the RCRA hazardous a. Risk Assessment wastes. waste listings based on the specific b. Environmental Damage Incidents The Environmental Defense Fund criteria in the listing regulations. c. Conclusion (EDF) and EPA entered into a consent Although the consent decree does not L. Isophorone decree to resolve most of the issues require a listing determination for the 1. Industry Identification raised in a civil action undertaken by solvents covered by the study, the 2. Description of Solvent Usage and the Environmental Defense Fund (EDF Agency may decide to make a listing Resulting Waste v. Browner, Civ. No. 89–0598 (D.D.C.)), determination for those solvents in a a. Solvent Use and Questionnaire in which the Agency agreed, among future rulemaking. Responses other things, to a schedule for making a b. Physical/Chemical Properties and listing determination on spent solvents. B. Existing Solvent Listings and the Toxicity Regulatory Definition of Solvent c. Waste Generation, Characterization, and The consent decree was approved by the 3. Basis for Proposed No-List court on December 9, 1994. As Five hazardous waste listings for Determination modified, the consent decree provides solvents have been promulgated to date 42320 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Proposed Rules

(40 CFR 261.31(a)): F001, F002, F003, products are not covered by the refining process wastes (60 FR 57747, F004, and F005. EPA has defined the listing’’). EPA could examine the wastes November 20, 1995). EPA is employing universe of wastes covered by today’s from such nonsolvent uses, if deemed the same general approach in today’s listing determination to include only necessary. However, with a backlog of proposal. Readers are referred to these those wastes generated as a result of a listing determinations to complete notices for a description of EPA’s listing solvent being used for its ‘‘solvent’’ under court-ordered deadlines, EPA has policy. Also, Section II.C.2., ‘‘Risk properties. This approach is consistent focussed its current efforts on those Assessment,’’ contains a discussion of with the existing solvent listings (50 FR determinations required by law. An how elements of EPA’s listing policy 53316; December 31, 1985); this is also example of the use of solvents as were applied in today’s listing consistent with the term ‘‘spent’’ in the ingredients is the use of solvents determination. Consent Decree. contained in paints, coatings, or This definition of ‘‘solvent use’’ was photoresist. II. Today’s Action included in the RCRA 3007 Solvent Use EPA solvent listings are distinct from A. Summary of Today’s Action Questionnaire used to obtain most other hazardous waste listings in This action proposes not to list as information to support today’s proposed 40 CFR Part 261 Subpart D because they hazardous wastes from solvent uses of rulemaking. cover hazardous wastes from the use of, the following 14 chemicals from the Solvents are used for their ‘‘solvent’’ rather than the production of, specified chemicals. As noted above, the Agency EDF consent decree: acetonitrile, 2- properties—to solubilize (dissolve) or ethoxyethanol acetate, 2- mobilize other constituents. Examples of has used the same approach in this such solvent use include degreasing, listing determination as in previous methoxyethanol, 2-methoxyethanol cleaning, and fabric scouring, use as diluents, listings. EPA believes that applying this acetate, cyclohexanol, cumene, phenol, extractants, and reaction and synthesis definition of spent solvent in today’s furfural, isophorone, methyl chloride, media, and for other similar uses. A chemical rulemaking is a reasonable approach. 1,4-dichlorobenzene, benzyl chloride, is not used as a solvent if it is used only for epichlorohydrin, and ethylene purposes other than those described above. RCRA 3001(e)(2) directs EPA to make a listing determination on ‘‘solvents,’’ but dibromide. The Agency has determined Spent solvents are solvents that have provides no further direction on the that these wastes do not meet the been used and are no longer fit for use meaning of that term. EPA therefore has criteria for listing set out in 40 CFR without being regenerated, reclaimed, or the discretion to reasonably define the 261.11. Sections II.D through II.M of this otherwise processed (50 FR 53316, scope of the listing determination. The preamble present waste December 31, 1985). The listing Consent Decree identifies a subset of characterization, waste management, investigation undertaken to support solvent wastes that are potential mobility, persistence, and risk today’s proposal covered spent solvents, candidates for listing, and specifies that assessment data that are the bases for still bottoms from the recovery of spent the listing determination applies to the Agency’s proposal not to list these solvents, and mixtures of spent solvents ‘‘spent solvents.’’ Use of the definition wastes. after use with other solid wastes. The has allowed the Agency to place For the first 10 chemicals, EPA found Agency also investigated the residuals reasonable limits on the scope of its that the management of residuals from generated by processes that use the listing investigation for this rulemaking. the use of these chemicals as solvents solvents of interest. Residuals include Given the ubiquity of ‘‘solvents’’ in does not pose a risk to human health spent solvents, residuals generated general, the Agency cannot take a and the environment under the during solvent recovery, and any census of a particular industry for a plausible mismanagement scenarios. residuals generated after the solvent has study (as other recent listing The data used as the bases for these been introduced into the process that determinations have done) to arrive at a determinations are presented in might include some concentration of regulatory determination. Instead, the Sections II.F through II.M of today’s spent solvent. The existing solvent Agency has used the existing definition proposal. Detailed information is listings in 40 CFR 261.31 apply to spent of solvent use and attempted to identify presented in the background documents solvents that contain at least 10 percent facilities and industries that use these supporting today’s proposal, which are (by volume), before use, of the listed chemicals as solvents. available in the docket (see ADDRESSES). solvents are used for their ‘‘solvent For this listing determination, this For the last four chemicals, the properties,’’ as defined in the December definition proved particularly useful as decision not to list residuals from the 31, 1985 Federal Register (50 FR many of the chemicals (where used as use of these chemicals as solvents is due 53316). In evaluating spent solvent solvents) are rather specialized in their to EPA’s belief that these chemicals are wastes for today’s determination, solvent uses. The Agency has, therefore, extremely unlikely to be used as however, EPA considered all reported retained the interpretations used in the solvents based on a lack of data solvent uses, including those reported to past to define ‘‘solvent use’’ and ‘‘spent indicating widespread solvent use for be below the 10% threshold. solvent’’ waste generation. these chemicals. These chemicals were EPA’s listing investigation did not Finally, in a previous proposed originally put on the list in the consent consider processes where the hazardous waste listing for wastes from decree because of initial indications that constituents of interest are used as raw the production of dyes and pigments (59 some solvent use may have existed. materials or principally sold as FR 66072, December 22, 1994) EPA However, EPA did not find significant commercial products (i.e., where the presented the general approach the solvent use for these chemicals. One of constituent is not used for its solvent Agency uses for determining whether to the chemicals (p-dichlorobenzene) is a properties) because the materials used list a waste as hazardous pursuant to 40 solid at room temperature, and the other as raw materials or products are not CFR 261.11(a)(3). The discussion three (benzyl chloride, epichlorohydrin, generally considered wastes under focussed on the selection of waste and ethylene dibromide) are relatively RCRA. This also is discussed in the management scenarios used in assessing reactive chemicals not well suited to December 31, 1985 FR, (‘‘* * * process risk and the use of information on risk solvent use. EPA’s information shows wastes where solvents were used as levels in making listing determinations. that the reported use of these four reactants or ingredients in the This approach was further developed in chemicals as solvents is linked to formulation of commercial chemical EPA’s proposed listing for petroleum bench-scale or experimental laboratory Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Proposed Rules 42321 settings, and no significant solvent uses publications that referenced the use of reported methyl chloride when were found. the 14 chemicals of concern as solvents. methylene chloride was used), and such In short, the Agency is proposing not From these sources, the Agency errors were corrected. (Telephone logs to list as hazardous benzyl chloride, developed profiles of known, suspected, for these contacts are contained in the epichlorohydrin, ethylene dibromide, and potential uses of these 14 chemicals docket to today’s rule.) Further, because and p-dichlorobenzene as hazardous as solvents. EPA estimated that very little useful spent solvents because these chemicals The solvent uses identified were information would be gained from are extremely unlikely to be used as correlated with specific industries, smaller facilities, EPA eliminated from solvents. For more detailed Agency using Standard Industrial Classification further consideration those facilities findings on these chemicals, see (SIC) Codes. The list of SIC codes that used less than a combined total of Sections II.N through II.Q of today’s developed was cross-referenced, by 1,200 kilograms of all of the chemicals proposal and the background document solvent, with other Agency data sources, of concern. The Agency chose this supporting today’s proposal. The including the Toxic Release Inventory cutoff because it represents the Agency requests comment for new (TRI) reporters list, Office of Water maximum annual quantity of waste that information on other solvent uses not facility lists, and other sources to obtain would be generated by a conditionally covered in this proposal. If the Agency a final list of facilities that might exempt small quantity generator (i.e., receives new data during the comment reasonably be expected to use one of the one that generates less than 100 period, the Agency may use these data 14 chemicals as a solvent. The other kilograms per month of a hazardous to revise risk assessment methodology sources utilized included (1) the mailing waste). Further, EPA’s data collection and assumptions. list for EPA’s RCRA 3007 Petroleum effort showed that most facilities (90%) Industry Questionnaire, (2) EPA’s reporting less than 1,200 kg/year were B. EPA’s Evaluation of Solvent Use effluent guidelines questionnaire in fact using significantly less than 1. Development of Study Universe recipients for the Pharmaceuticals and 1,200 kg/year, i.e., 120 kg/year or less. Organic Chemicals, Plastics, and In all the Agency eliminated Spent solvents differ from other listed Synthetic Fibers industries, (3) facilities approximately 400 facilities from wastes among EPA’s waste listings in included in the Agency’s National Air further study, either due to reporting that they are not principal waste streams Toxics Inventory of Chemical Hazards errors, discontinued use, or use of small generated by manufacturing processes. (NATICH) database, and (4) pulp and quantities of the solvents. As a result of Rather, they are used in a host of paper mills studied during an this refinement, 156 facilities received a manufacturing and allied applications, investigation of pulp and paper mill RCRA 3007 Questionnaire of Solvent such as cleaning, degreasing, extraction, sludge disposal. Additional facilities Use. purification, etc. were included that were identified by EPA believes that the elimination of As part of the solvent use study, the EPA’s Office of Pollution Prevention most small quantity users does not Agency researched uses for all 14 and Toxics (OPPT) during an evaluation significantly affect the risk assessment, chemicals being considered in this of solvents. The Agency also met with because the volumes used were small listing determination (See Section II.B). trade groups representing compared to the larger volume users Following the data gathering, the pharmaceutical, chemical, synthetic that were sent the full survey. The risk Agency sent out almost 1,500 organic chemical, and semiconductor assessment results are based on the preliminary questionnaires in an manufacturers. highest waste volumes (and solvent attempt to characterize industrial Where a suspected use of a chemical loadings) reported for each management solvent use. After compiling the data would affect industries other than those practice (see section II.C.2), therefore and conducting follow up phone calls to discussed above, EPA refined the any significant risks would be found in facilities, the Agency mailed out 156 facility mailing list through the use of EPA’s evaluation of the larger quantity questionnaires to facilities to further publicly available industrial address users. characterize solvent uses. Summary books and product manufacturer The Agency did not conduct a information from these questionnaires listings. This approach to developing a sampling and analysis program for the forms part of the basis of the listing mailing list is discussed in detail in the spent solvent wastes. EPA found that determination and may be found in the background document to support obtaining representative samples would background document supporting today’s proposed rule. be almost impossible due to potential today’s proposal. The Agency used a preliminary use of these solvents in a variety of The solvents listing investigation questionnaire to prescreen for solvent different industries. The cost of such a focuses on facilities using specific use by facilities on the mailing list. The program would have been prohibitive to chemicals for their solvent properties. RCRA 3007 Preliminary Questionnaire the Agency. At the outset of this investigation, EPA of Solvent Use was mailed to 1,497 set out to identify probable solvent uses facilities in May 1993. Facilities were 2. Applicability to National Use for these chemicals. The Agency asked to provide the quantity of the For the solvents under review, the conducted a thorough literature search chemical used as a solvent in 1991 and Agency believes that the industry study to characterize the potential solvent 1992. As a result of the preliminary results obtained through the uses. This search is fully described in questionnaire, the Agency removed methodology described above accurately the background document supporting more than 900 facilities from further characterize solvent uses of the today’s proposal. The Agency identified analysis because they reported no use of chemicals mandated for review. In industrial processes known or suspected the 14 chemicals as solvents. addition, the industry study completed of using the 14 chemicals being The Agency attempted to refine the gives the Agency an accurate idea of the investigated as solvents through such results of the preliminary questionnaire nationwide uses of these chemicals, sources as chemical engineering and further before sending out the full 3007 whether or not the chemicals are used industrial manufacturing reference survey. Several hundred of the facilities in large or small quantities as solvents. books. Also central to the results of the were contacted to confirm and clarify The Agency is confident that the literature search was the location of four the information reported. Some facilities collected information on solvent use to ten years of abstracts from scientific misreported the use of a solvent (i.e., covers the large solvent users. 42322 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Proposed Rules

Once the industry study was for each solvent are also summarized in variations in usage are to be expected. completed, the resulting data for each of the discussions of the listing For many solvents, facilities reported the 14 chemicals was evaluated to determination for each respective either increases or decreases in use determine whether or not large users chemical (Sections II.D through II.N). between 1992 and 1993 that indicate may have reasonably been missed The Agency requests comment on the changes in production schedule or during the RCRA § 3007 survey process. use of these chemicals as solvents EPA product slate. Additional details on Several considerations were evaluated may not have uncovered in its data these changes, on a solvent-by-solvent for this review, including: collection efforts. basis, are presented in the Background • the scope of anticipated solvent use Document for today’s rulemaking. EPA 3. Comparison of Questionnaire and obtained during the extensive literature believes that all large users of the 14 Prequestionnaire Data search prior to pre-questionnaire solvents were identified and surveyed mailing list development; After the receipt of responses to the as part of today’s determination because • whether or not the chemical was RCRA 3007 Questionnaire of Solvent of the specialized nature of solvent use required to be reported in the 1990 Use, EPA compared the 1992 solvent for such chemicals as observed in its Toxics Release Inventory; use reported in the Preliminary literature search. EPA also notes that • the number of facilities and type of Questionnaire with the solvent use users of small amounts of one solvent solvent use eventually identified and reported in the 1993 Questionnaire. were captured in many cases because characterized in the full RCRA § 3007 With the exception of acetonitrile, for they are large users of another solvent. survey; and which a slight increase in solvent use is For example, one refinery uses a large • comparison of § 3007 survey noted, the reported use of the remaining amount of phenol but also was captured solvent use quantities with total 13 chemicals decreased. For all of the as an acetonitrile user.) Further, the chemical production volume and, where chemicals, the solvent use reported in Agency believes that the solvent use available, volume of the chemical used the preliminary questionnaire included reported in response to the full as a non-solvent. amounts of wastes containing the Questionnaire provides a more accurate Three chemicals under evaluation chemicals reported as managed by characterization of solvent use patterns (cyclohexanol, isophorone, and furfural) commercial treatment, storage, and than the Preliminary Questionnaire were not TRI chemicals in 1990, a disposal facilities (TSD). In some cases, because of the greater level of detail primary data source for the RCRA such as benzyl chloride, ethylene provided by the respondents. § 3007 pre-questionnaire mailing list. dibromide and p-dichlorobenzene, However, EPA believes that large users nearly all quantities reported as used in C. Description of Health and Risk of these chemicals were captured 1992 were actually wastes received by Assessments through other data sources. Literature TSDs. Other apparent decreases resulted In determining whether waste searches suggested limited solvent uses from incorrect reporting of chemicals generated from the use of these 14 for these chemicals across several used, or because further review by EPA chemicals as solvents meets the criteria industries. Results from the full RCRA showed that the use did not meet EPA’s for listing a waste as hazardous as set § 3007 questionnaire confirmed limited definition of solvent use (see below). In out at 40 CFR 261.11, the Agency solvent uses of greater than 1,200 kg/ addition to apparent changes that evaluated the potential toxicity of the year for two chemicals: a single facility resulted from corrections to the data solvents, the fate and mobility of these for cyclohexanol and four facilities for base, there were decreases in actual chemicals, the likely exposure routes, isophorone. The one cyclohexanol quantities used for some solvents. and the current waste management facility was a petroleum refinery and all Specifically, significant decreases were practices. identified petroleum refineries were noted for glycol ethers (e.g., 2- sent a pre-questionnaire. ethoxyethanol acetate, 2- 1. Human Health Criteria and Effects Isophorone solvent use was identified methoxyethanol, and 2-methoxyethanol The Agency uses health-based levels, at four facilities across four SIC codes. acetate), because facilities were phasing or HBLs, as a means for evaluating the Three of these facilities used isophorone out their use as solvents. Additional level of concern of toxic constituents in as a solvent in a similar process (in the decreases were attributable to plant various media. In the development of coating industry). As with cyclohexanol, closures and other discontinued use. HBLs, EPA first must determine no TRI data existed for isophorone to Based on a detailed review of the full exposure levels that are protective of identify specific facilities. Questionnaire responses, the Agency human health and then apply standard Furfural was used in large quantities determined that certain uses reported in exposure assumptions to develop as a solvent, however nearly all of the 1992 did not meet EPA’s definition of media-specific levels. EPA uses the solvent use (>99.9%) was found in the solvent use. For example, further following hierarchy for evaluating petroleum industry, which EPA reductions from quantities reported in health effects data and health-based surveyed. Given that the major use of 1992 are attributable to the elimination standards in establishing chemical- this solvent was very specialized (e.g., from consideration of the use of a specific HBLs: extraction of lube oil), the Agency solvent as an ingredient in a photoresist • Use the Maximum Contaminant believes that the collected information in semiconductor and printed circuit Level (MCL) or proposed MCL (PMCL), on solvent use covers all large solvent board manufacture, and use of a solvent when it exists, as the HBL for the users. as a component of a paint or coating. ingestion of the constituent in water. A detailed description of the (For example, for photoresist uses, MCLs are promulgated under the Safe methodology used to evaluate the Agency staff determined that such uses Drinking Water Act (SDWA) of 1984, as coverage of the Agency’s industry study did not comport with the definition of amended in 1986, and consider for the 14 chemicals of concern is ‘‘solvent use’’ as described earlier technology and economic feasibility as contained in the background document because the chemicals were not carriers, well as health effects. contained in the docket for today’s rule reaction media, extractants, etc. Rather, • Use Agency-verified Reference (Hazardous Waste Listing Determination they were used in a way that suggested Doses (RfDs) or Reference Background Document for Solvents). they were components of the Concentrations (RfCs) in calculating Statistics on production and solvent use manufacturing process.) Finally, HBLs for noncarcinogens and verified Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Proposed Rules 42323 carcinogen slope factors (CSFs) in individuals within a population of use in a listing determination depends calculating HBLs for carcinogens. interest. The risk methodology section on a combination of factors which are Agency-verified RfDs, RfCs, and CSFs specifies the process used by EPA to discussed in general terms in EPA’s and the bases for these values are assess individual risk for these solvents. policy statement on hazardous waste presented in the EPA’s Integrated Risk Due to the unique circumstances of listing determinations contained in the Information System (IRIS). this listing determination (e.g., variety Dyes and Pigments Listing • Use RfDs, RfCs, or CSFs that are of industries using solvents, limitations Determination (59 FR 24530, December calculated by standard methods but not of the available data), EPA was unable 22, 1994). EPA applied this policy, with verified by the Agency. These values to assess population risks. The generic some specific modifications that reflect can be found in a number of different management scenarios devised for this unique characteristics of the industry, in types of Agency documents and EPA risk assessment were not industry- the petroleum refining listing uses the following hierarchy when specific and EPA did not have sufficient determination (60 FR 57747, November reviewing these documents: Health data to allow for specific population risk 20, 1995). The general use of the policy Effects Assessment Summary Tables assessment; such an assessment would described in the dyes and pigments (HEAST); Human Health Assessment have required inappropriate listing determination and applied in the Group for Carcinogens; Health assumptions and with little accuracy in petroleum rule is continued here. Assessment Summaries (HEAs) and results. There is no need to conduct The following discussion explains the Health and Environmental Effects population risk assessment, however selection of plausible management Profiles (HEEPs); and Health and (even were it feasible), for today’s scenarios for the solvents listing Environmental Effects Documents action, because EPA did not find any determination. EPA’s basic approach to (HEEDs). significant individual risks of concern selecting which waste management • Use RfDs or CSFs that are for any of the 14 chemicals examined. scenarios to model for risk analysis in calculated by alternative methods, such listing determinations is to examine Uncertainties Associated With the Risk as surrogate analysis, including current management practices and Assessment structure activity analysis and toxicity assess whether or not other practices are equivalency. One source of uncertainty derives available and would reasonably be All HBLs and their bases for this from the generically constructed expected to be used. Where a practice is listing determination are provided in management scenarios used; EPA had to actually reported in use, that practice is the risk assessment background make a variety of assumptions in order generally considered ‘‘plausible’’ and document entitled Assessment of Risks to model releases and exposures. Due to may be considered for potential risk. from the Management of Used Solvents, data limitations, as noted above, EPA EPA then evaluates which of these which can be found in the RCRA docket was also not able to characterize current or projected management for this rule at EPA Headquarters (see actually exposed populations. Another practices for each wastestream are likely ADDRESSES section). That document also uncertainty stems from the assumptions to pose significant risk based on an includes the evaluation of acute toxicity of plausible mismanagement, as assessment of exposure pathways of data, such as lethal doses for the oral described below in the following concern associated with those practices. and dermal routes, and lethal section. There are common waste management concentrations for the inhalation route. The Agency completed an enormous practices, such as landfilling, which the task in the data gathering effort. These Agency generally presumes may be 2. Risk Assessment data helped EPA to identify the major plausible for solid wastes and will The risk characterization approach waste generators, and the quantities of evaluate it for potential risk. There are follows the recent EPA Guidance on solvent waste most likely to pose a risk other practices which are less common, Risk Characterization (Browner, 1995) to human health and the environment. such as land treatment, where EPA will and Guidance for Risk Assessment (EPA The questionnaire asked for detailed consider them plausible only where the Risk Assessment Council, 1991). The information on waste generation, disposal methods have been reported to guidance specifies that EPA risk management, and disposal for these be practiced. In some situations, assessments will be expected to include chemicals when used as solvents. By potential trends in waste management (1) the central tendency and high-end closely examining facilities that use for a specific industry suggest the portions of the risk distribution, (2) these chemicals as solvents, the Agency Agency will need to project ‘‘plausible’’ important subgroups of the populations identified where these chemicals are mismanagement even if it is not such as highly susceptible groups or used as solvents, and where wastes of currently in use in order to be protective individuals, if known, and (3) interest are generated and managed. The of potential changes in management and population risk. In addition to the Agency then used this information to therefore in potential risk. presentation of results, the guidance focus on the appropriate exposure As experience is gained in listing also specifies that the results portray a scenarios. Because EPA relied on the determinations, the Agency recognizes reasonable picture of the actual or data provided from the questionnaires, the need to more specifically describe projected exposures with a discussion of the resulting analysis is dependent on its approach to plausible management uncertainties. These documents are the quality of the data collected. selection for the circumstances related available in the public docket for this a. Selection of Waste Management to each listing. EPA believes it necessary action (see ADDRESSES section). Scenarios. EPA’s regulations at to do so here, in part because of the 261.11(a)(3)(vii) require the Agency to unique nature of the solvents listing Individual Risk consider the risk associated with ‘‘the determination. Individual risk descriptors are plausible types of improper Selection of plausible management intended to convey information about management to which the waste could scenarios can better be described by the risk borne by individuals within a be subjected’’ because exposures to noting that there are three important specified population and wastes (and therefore the risks involved) elements of this selection that must be subpopulations. These risk descriptors will vary by waste management considered in the risk assessment are used to answer questions concerning practice. The choice of which ‘‘plausible process: selection of the management the affected population and the risk for management scenario’’ (or scenarios) to practice(s) considered ‘‘plausible’’, 42324 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Proposed Rules selection of waste volumes evaluated as must determine what the volume of a subject to the land disposal restriction going to each plausible practice, and wastestream is or could be going to a rules. selection of exposure pathways for each selected plausible management practice. • Spent solvents with relatively high practice evaluated. Because different volumes are reported value are also recovered by onsite The first element is selection of by generators, the Agency most often distillation/fractionation in a closed- plausible management practices. As puts these reported volumes into a loop recycle stream. These residuals described above, plausible practices are distribution and selects a high would not usually be considered wastes ones that are reported by generators and percentile volume to be representative (see 40 CFR 261.2), and, therefore, these can also be ones that are common of a reasonable volume that could go to volumes (if reported) were not used in practices, such as landfilling. EPA may the disposal scenario, usually a volume the risk assessment modeling. project less common or unreported falling at or above the 90th percentile of • practices as plausible if there are Investment by industry in waste volumes reported. That volume is then management practices suggests that compelling reasons for doing so. For the used as the volume input parameter for solvents listing determination, all dramatic changes in reported volumes the risk assessment model. For solvents, going to specific waste management practices EPA considers common were EPA used the highest reported volumes reported. practices would not occur. For example, (and loadings) going to the different it would be unreasonable to assume that In general, solvent wastes were management practices, because the wastewaters, high concentration organic a generator with a large investment in a number of volumes (and loadings) were wastewater treatment plant would wastes, or treatment residuals. Facilities limited to a few data points in many also had losses of solvents gases due to abandon that management practice for cases. The Agency did not attempt to another. process vents, flares, or other air project higher volumes than those releases, but these releases are not reported in this listing determination for For these reasons, the Agency has typically considered spent solvent the following reasons: concluded that the use of reported wastes because they are process-related. volumes of solvent wastestreams going • Use of these solvents is mostly Wastewaters were typically fairly dilute to specific waste management practices specialized. The volume distribution and are generally managed in a is a reasonable way to project potential was often skewed by one or two very biological wastewater treatment system risk from spent solvent waste high volume users. EPA used these or sent to a Publicly Owned Treatment management. higher volumes in its risk assessment Works (POTW). In most cases, modeling and therefore believes the The third element in selecting wastewater treatment occurred in tanks, conservative high volumes were in fact plausible management scenarios is the however, some treatment in surface modeled. selection of the actual exposure impoundments did occur. Wastewaters • For purposes of this listing pathways that could be expected to be for one solvent (acetonitrile) were created via that management practice. reported to go to underground injection determination, the Agency has assumed that wastestreams reported to be The exposure scenarios examined are wells, however, essentially all discussed in the following section. (>99.99%) such discharges were to managed as hazardous waste will b. Exposure Scenarios. For each Subtitle C hazardous waste injection continue to be managed in that way in management scenario, EPA chose the wells. the future. In this listing determination Questionnaire data show that a high in particular, that assumption is pathways through which the solvents percentage of the high organic considered reasonable because solvent could affect human health or the nonwastewaters go to thermal treatment use most often requires very high environment. EPA initially considered a in incinerators, industrial boilers, or concentrations of chemical. Spent wide range of direct and indirect fuel blenders. Because many of these solvent as initially generated is therefore exposure pathways, including direct solvent wastes are either characteristic often very high concentration waste, inhalation, ingestion of groundwater, hazardous wastes (primarily due to meaning that the wastestreams are often inhalation of soil and dust, ingestion of ignitability) and/or are mixed with and will continue to be soil, ingestion of surface water, listed hazardous wastes, the vast characteristically hazardous for ingestion of crops, ingestion of animal/ majority of these wastes are handled as ignitability. In addition, many solvents dairy products, and ingestion of fish and hazardous. The other major category of are often used as mixtures containing shellfish. Exposure through the nonwastewaters was treatment residuals other solvents that are listed as ingestion of fish and shellfish were not (e.g., wastewater treatment sludges, hazardous when spent (i.e., the F001 quantitatively evaluated because the incinerator ash) and were typically through F005 listings), or exhibit a solvents are nearly all highly water landfilled. characteristic (e.g., ignitability). Such soluble, and therefore are not expected The Agency evaluated potential risk wastestreams would have to continue to to be absorbed or bioaccumulated. for the following practices: storage, be managed as hazardous, and stringent Vapor phase releases will have little combustion, wastewater treatment tanks requirements are in place to ensure that tendency to deposit to soil or surface and surface impoundments, and hazardous wastes do not pose a threat water and, thus, little tendency to enter underground injection wells. There to human health or the environment. the food chain or crops. were no compelling reasons for This also means that certain waste Based on the physical and chemical projecting other practices as plausible. management practices could not be properties of the constituents of concern Second, there is the selection of the employed. It would be unreasonable to and current management practices, volumes of each wastestream the assume that large amounts of such direct inhalation was identified as the Agency considers could be disposed of concentrated organic wastestreams primary exposure route of concern. EPA in that management practice. (Note that would be shifted from combustion or also evaluated the groundwater EPA must also consider the ‘‘loading’’ of recycling to waste management pathway, where appropriate. Given the waste going to disposal sites. The practices for which they were not plausible waste management practices ‘‘loading’’ is the amount of the solvent reported, such as landfilling, especially and the physical properties of the itself contained in the volume of the when the concentrated organic waste solvents, the following exposure wastestream reported.) Here the Agency streams are already hazardous wastes scenarios were evaluated. Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Proposed Rules 42325

Management practice Pathway Exposure route

Combustion ...... Air ...... Inhalation of emissions from combustion. Storage Tanks ...... Air ...... Inhalation of volatilized solvents. Wastewater treatment tanks ...... Air ...... Inhalation of volatilized solvents. Wastewater treatment surface impoundments ...... Air and Groundwater ...... Inhalation of volatilized solvents; ingestion of ground- water contaminated by solvents leaching.

To assess the risks posed by thermal be landfilled; however, they had spent solvent wastes had the potential treatment, EPA chose to model potential negligible solvent levels. The lack of to form non-aqueous phase liquids releases from a boiler as a plausible solvent in treatment residuals is (NAPLs) that might move as a separate management practice. For preliminary expected because these solvents are phase either above or below the ground screening, wastes currently managed in efficiently treated by combustion and in water table. These NAPLs may present permitted hazardous waste management wastewater treatment systems. special problems, especially in assessing units (e.g., incinerators) were assumed Therefore, because the wastes that their transport and potential impact. to be managed in similar types of non- reported to go to landfills contained However, EPA found that nearly all hazardous waste management units little or no solvent, and considering that solvents under consideration are (e.g., Subtitle D industrial boiler). This nonwastewaters with any appreciable miscible or very soluble in water and approach results in risk estimates that solvent content are generally hazardous are not likely to form NAPLs in are quite conservative, since the non- and thus are managed as hazardous groundwater. One chemical with some hazardous units are less protective than waste already, the Agency had no solvent use, cumene, is only slightly their hazardous counterparts. In reason to model the landfill scenario. soluble in water. However, EPA found addition, EPA modeled possible air EPA also considered the potential for no significant land disposal of cumene releases from an open accumulation groundwater risks posed by treatment in wastes. The solubilities of the solvents tank, because many solvent wastes are surface impoundments for all solvents are given in the section specific to each reported to be stored before treatment; that had wastewater going to surface solvent. for this analysis, EPA assumed that any impoundments for treatment. EPA Potential Risks From Spills waste that was thermally treated could found that these wastes are diluted by be stored prior to treatment. To model the flow of other dilute wastewaters The Agency considers significant risk potential air releases from wastewater (i.e., at the ‘‘headworks’’). EPA gathered from spillage of spent solvents to be treatment, EPA modeled aerated tanks data on headworks flow in the 3007 unlikely for several reasons. First, most and surface impoundments. Survey, and this allowed EPA to of the actual volume of residuals EPA evaluated two scenarios, landfills estimate headworks concentrations of reported were low concentration and deepwell injection, and found that all solvents going to surface wastestreams, i.e., wastewaters and modeling was not necessary to impoundments based on the loading of treatment residuals. Their ‘‘loading’’ or determine that risks from these solvent in each waste and the total mass of constituent in the reported pathways would not be significant, as wastewater flow to the headworks. waste is typically very low. These low discussed below. A third scenario, Solvent levels were generally found to reported concentrations (often reported treatment of wastewaters in surface be below the HBLs at the headworks. as ‘‘trace’’ concentrations) were due to impoundments, also did not require Thus, no modeling was needed to both treatment efficiencies of the spent extensive analysis to determine that ‘‘bound out’’ nearly all reported solvents in wastewater treatment risks from potential releases to impoundment practices for possible systems and dilution in the treatment groundwater would not be significant groundwater risks. EPA closely system itself. Spills of such dilute (see below). examined the few remaining cases for wastestreams would not be of concern The data from the 3007 Survey show which solvent levels might enter in terms of risk. The high concentration that wastes that were sent to landfills impoundments above HBLs, and spent solvent wastes would be of most contained negligible amounts of solvent; completed bounding analysis when concern, but EPA found the vast landfilling of wastes high in solvent appropriate. Potential risks from surface majority to be already subject to content did not occur. As noted impoundment treatment are discussed hazardous waste management previously, solvent wastes are generally in more detail in the specific sections requirements as characteristically wastes with high organic content (spent for each solvent. hazardous waste, or due to use or solvent liquids, residuals from The practice of deep-well injection mixing with other listed solvents. recycling), or dilute wastewaters. The was reported to occur for only one c. Risk Assessment Methodology. The vast majority of concentrated solvent solvent (acetonitrile); nearly all of it was general approach used for this risk wastes are hazardous due to hazardous waste (except for wastes assessment involved successive characteristic or mixing with other containing 2 kg of solvent), and all went iterations of risk screening. At each step, listed wastes, and could not be to Subtitle C wells. Given that nearly all risk from waste management scenarios landfilled, but are thermally treated. of the waste was hazardous and was was compared to these levels of Therefore, organic or aqueous liquid disposed of in RCRA permitted units, concern: for non-carcinogens, a hazard wastes are not expected to be managed the waste is adequately regulated. EPA quotient exceeding 1.0, and for in a landfill. Few solids were generated found no evidence of any disposal in carcinogens, a lifetime cancer risk factor that contained any residual solvent. The nonhazardous deepwells. Therefore, in the range of 1×10¥6 to 1×10¥4. For total loading of all solvents reported EPA did not evaluate this practice further explanation of levels of concern, going to landfills was <500 kg per year, further. see ‘‘EPA’s Hazardous Waste Listing and nearly all went to Subtitle C Finally, even though EPA could not Determination Policy’’ in 59 FR 66073 landfills. Treatment residuals find scenarios that could lead to (December 22, 1994). The overall risk (wastewater treatment sludges and significant releases to ground water, the assessment was conducted in three incineration residuals) were reported to Agency also considered whether the steps, as outlined below. The results of 42326 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Proposed Rules the risk assessment for each solvent are Decision (ROD) is generated by EPA to been used prior to disposal. These sites described in Sections II.D to II.M. document how the Agency plans to invariably accepted a wide variety of First Phase of Risk Screening— clean up a Superfund Site, and contains wastes and were contaminated with Bounding Analysis: For each of the the results of a detailed study of the many different chemicals. Some of the scenarios evaluated, EPA applied a contamination at the site. Unlike target chemicals are possible breakdown screening methodology to arrive at industry studies in which wastes under products from the degradation of other ‘‘bounding’’ estimates of risk. These study are generated from set processes contaminants (e.g., phenol, methyl estimates gauge the risk posed by the that are site-specific, in the solvent’s chloride). Therefore, because the ROD particular scenario under worst-case industry study it was not possible to database does not specifically cite the conditions: i.e., risk to the most exposed determine a contaminant was used as a uses of any of the wastes found at the populations under the most solvent meeting EPA’s definition of site, the cases did not provide any direct conservative assumptions about solvent use. Wastes disposed at many evidence that contamination by any releases, transport, and exposure. sites were categorized only in broad other chemicals evaluated in this listing Bounding estimates therefore purposely terms as ‘‘oily wastes,’’ ‘‘pesticide determination was linked to disposal of overestimate the exposure for the wastes,’’ ‘‘organic wastes,’’ or ‘‘solvent spent solvents. purpose of screening out those scenarios wastes;’’ the uses of specific wastes Finally, the 3007 Survey showed that which cannot pose any significant risk prior to disposal were not identified. high percentages of most of the under any real-life conditions. The Furthermore, sites were typically nonwastewater residuals reported are scenarios that did not pose a significant contaminated by a wide variety of classified as hazardous, and are subject risk under a bounding analysis were chemicals, many of which are widely to strict regulation under RCRA. Thus, considered to have been screened out, used F-listed solvents, and wastes the solvent wastes currently generated and were not studied any further. containing these chemicals are more generally could not be legally managed Second Phase of Risk Screening— likely to represent any vaguely in the manner that led to the damage High-End and Central Tendency identified ‘‘solvent wastes.’’ In other cases (e.g., landfills). Therefore, EPA did Analysis: For each scenario where damage incidents, waste categorization not find that the damage cases provided bounding analysis risk was above a level for buried drums or landfilled any relevant information on the of concern, EPA estimated the high-end hazardous materials was not possible. potential risks posed by solvent wastes. and central tendency risks. High-end Based on a review of identified damage The sections for each target chemical risk describes the individual risk for instances, no single instance of damage presents a more specific discussion for those persons at the upper end (above was identified that could be tied to use the damage cases identified. the 90th percentile) of the risk of the target chemicals as a solvent. e. Risk Assessment Results. Sections distribution; central tendency represents Most of the damage cases found for II.D to II.N present a more specific the typical risk using average or median these solvents resulted from disposal analysis by each solvent of the waste values for all exposure parameters. For that took place many years ago, generation and management information this analysis, high-end estimates were typically well before 1980. Waste to justify the individual regulatory determined by identifying the two most management regulations have changed determinations. Risk assessment sensitive exposure parameters and then dramatically since the RCRA regulations evaluations were not conducted for the using maximum (or near-maximum) were first promulgated (1980), and the four chemicals (benzyl chloride, values for these parameters. Median or damage cases appear to reflect epichlorohydrin, ethylene dibromide, average values were used for all other management practices that are no longer and p-dichlorobenzene) for which EPA parameters. legal or likely. Therefore, these cases do found no significant solvent use. The Third Phase of Risk Screening— not provide a useful guide to current or risk tables for each of the remaining 10 Wastes Already Regulated as Hazardous: future disposal practices that may occur. constituents indicate the estimated As stated above, EPA noted that many Also, many of the 14 chemicals are health risk associated with the current of the waste streams were already produced in relatively large volumes, and plausible management scenarios. hazardous wastes; they were either and only small percentages of most are For greater detail, see the listing and characteristically hazardous (generally used as a solvent. Some of the chemicals risk assessment background documents because of ignitability), or mixed with have been widely used as chemical available in the docket to this listed solvents (either during use or after intermediates (e.g., phenol) or as rulemaking proposal. waste generation). Current requirements ingredients in products (e.g., cumene in EPA requests comment on all aspects for managing these wastes mean that paint and 2-methoxyethanol in jet fuel). of its listing determinations, including they will not pose a threat to human The presence of others may often be comments pertinent to the adequacy of health and the environment. traced to their occurrence as an the data base and the methodology used Therefore, EPA applied a third phase impurity in other chemicals (e.g., p- to evaluate the data, and comments of risk screening to those wastes which dichlorobenzene is a common impurity regarding the extent to which EPA has had not screened out in either of the in the listed solvent 1,2- adequately characterized solvent uses, first two phases. This third phase dichlorobenzene). Therefore, EPA users of the solvents and management consisted of a bounding analysis believes that reported contamination is practices for the solvent waste streams. restricted to wastestreams that could more likely to arise from nonsolvent EPA is also soliciting comment on the plausibly be managed as nonhazardous uses. Furthermore, the solvent uses risk assessment methodology and waste. identified for the target chemicals assumptions, including the Agency’s d. Consideration of Damage Cases. studied were typically limited to a few rationale for choosing plausible EPA investigated damage incidents that industries, and none of these sectors management scenarios. contained reports of the 14 chemicals were represented by facilities reported Comments suggesting changes to the under evaluation as contaminants at the in the damage case databases. Agency’s data base or risk assessment site. Sources for this investigation Many of the damage cases arose from methodology, or to the Agency’s listing included the Record of Decision mismanagement at older municipal or determination for any of the 14 solvent Database, the Damage Incident Database, industrial landfills, and it is difficult to waste streams, should be accompanied and a literature search. The Record of determine how a chemical may have by any relevant data or supporting Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Proposed Rules 42327 information. If EPA receives new data or such waste. EPA invites comment on medium; a diluent; and a dissolution information during the comment period, such an approach. medium. EPA may use this information to Its largest use is in the pharmaceutical D. Acetonitrile augment its data base or revise its industry for the production of drugs and methodology or assumptions for 1. Industry Identification medicinal chemicals, where its applications range from laboratory use purposes of the final rule. If EPA Almost all acetonitrile is to pilot production in Food and Drug receives relevant new information manufactured as an acrylonitrile by- Administration drug trials to full-scale during the comment period on solvent product. U.S. production of acetonitrile batch product preparation. It also is uses, users or management practices for is estimated to be between 8 and 11 used in the organic chemicals industry any of the specific solvent wastes million kilograms per year, of which addressed in this rulemaking, EPA may as an extraction medium and in the more than 60 percent is believed to be petrochemical industry for the revise its individual listing used in solvent applications and about determinations based on this separation of butadiene from C4 40 percent in non-solvent applications. hydrocarbons by extractive distillation. information. Acetonitrile may be used for many Literature searches indicated that In particular, EPA notes that while a non-solvent purposes such as the number of these solvents might cause an acetonitrile may be used in production of nitrogen-containing electroplating operations, however, this unacceptable groundwater risk if compounds, including amides, amines, significant volumes were land disposed use was not confirmed. higher molecular weight mono- and A detailed discussion of the processes in concentrated form, such a scenario dinitriles, ketones, isocyanates, and does not appear to be plausible. Much in which acetonitrile is employed is heterocyclic compounds. However, presented in the background document of EPA’s assessment of the risks from acetonitrile finds its primary use as a the use of these solvents derives from for today’s proposal, which is available solvent in various industries, in the docket (see ADDRESSES section). evidence that such wastes are not likely particularly in the pharmaceutical b. Physical/Chemical Properties and to be discarded on the land in industry where it is used in the Toxicity. Acetonitrile is a relatively significant concentrations. Nine of these production of drugs and medicinal polar compound and is completely chemicals are already listed as chemicals. miscible in water. Because of its commercial chemical products and thus miscibility, it is not expected to form a cannot be legally land disposed in their 2. Description of Solvent Usage and Resulting Wastes nonaqueous phase layer in groundwater unused form without treatment; (NAPL). It has a relatively low boiling furthermore, they would be subject to a. Solvent Use and Questionnaire point (82 °C), and it has a moderate manifesting and other RCRA controls Responses. In response to the RCRA evaporation rate from water, as when discarded. Many of the more 3007 Preliminary Survey of Solvent Use, evidenced by its Henry’s Law Constant concentrated wastes are ignitable as 178 facilities reported the use of 5.8 (2.007×10±5 atm-m3/mole). Acetonitrile generated, or already covered by an million kilograms of acetonitrile as a has a high vapor pressure at ambient existing hazardous waste listing, and are solvent in 1992. The full RCRA 3007 temperature, and is also flammable and thus subject to RCRA regulation. Solid Survey of Solvent Use Questionnaire ignitable, with a flash point of 6 °C. treatment residuals appear to contain was sent to the 74 largest users of the Therefore, concentrated residuals from negligible or very low concentrations of 178 facilities that reported 1992 use of the use of acetonitrile as a solvent are these solvents, because of the efficacy of acetonitrile. Most (>94%) of the expected to exhibit the characteristic of treatment. Wastewaters do not pose respondents to the preliminary survey ignitability. significant risk to groundwater or air, that were not sent the full questionnaire The octanol-water partition because the wastewaters are generated reported using less than 120 kg per year coefficient (Log Kow) for acetonitrile is in relatively dilute form, are further of acetonitrile as a solvent. Some of the ¥0.34; this indicates that acetonitrile diluted in integrated wastewater facilities sent the 3007 survey used has a low tendency to sorb to soil treatment systems, and then effectively small quantities of acetonitrile, but were organic matter, and is not expected to treated in those systems. included because the total amount of bioaccumulate in organisms. If EPA receives comments that leads target solvents used was above 1200 kg. Acetonitrile is not classified as a it to conclude that unregulated land The facilities responding to the full carcinogen. The chemical has an RfC of disposal of concentrated wastestreams 3007 survey reported a 1993 use of 9.3 0.05 mg/m3 and an RfD of 0.006 mg/kg/ from the use of these solvents is likely, million kilograms of acetonitrile as a day; these correspond to an air HBL of EPA will consider promulgating a solvent. 0.05 mg/m3, and a water HBL of 0.2 listing to address those concerns. Literature searches indicate that mg/L. However, EPA currently believes that acetonitrile is a common, versatile, c. Waste Generation, Characterization, such a listing should be limited to those polar solvent often used as an extraction and Management. The respondents to circumstances in which significant medium or a recoverable reaction the RCRA 3007 Survey of Solvent Use concentrations causing significant risk medium. Its high dielectric strength and Questionnaire reported a combined total are plausible, such as listing only wastes dipole moment make it an excellent of greater than 9.15 billion kilograms of with high concentrations of solvents. solvent for both inorganic and organic residuals generated from processes EPA would consider that approach in compounds, including polymers. RCRA using acetonitrile as a solvent. The vast this case, given the analysis presented 3007 Questionnaire responses indicate majority of the residuals, 9.13 billion in this proposal indicating that the that acetonitrile is used across a broad kilograms, were wastewaters usually existing or plausible waste management range of industries as: a product and containing low to negligible scenarios do not pose significant risk. In equipment wash; the mobile phase in concentrations of acetonitrile (average particular, EPA believes that it may be high pressure liquid chromatography concentrations less than 1%). The inappropriate to list the full range of (HPLC) at laboratory, pilot, and remaining residuals, a combined total of wastes that might otherwise be brought production scale; a reaction, greater than 15.0 million kilograms, are under regulation through application of crystallization, or synthesis medium; an nonwastewaters containing widely the mixture and derived-from rule to extractant or extractive distillation varying levels of acetonitrile. Some 42328 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Proposed Rules nonwastewaters usually have low to believes that this sample of facilities wastewater treatment residuals in negligible solvent concentrations, such revealed likely waste management general, are unlikely to contain as filter-related materials, containers, practices that are or could be used in the significant levels of acetonitrile, because and wastewater treatment sludges; other management of these wastes. Therefore, the chemical is removed by such nonwastewaters, such as spent solvents EPA does not think it is warranted to treatment due to its volatility and and heavy ends from solvent recovery project other management practices that susceptibility to biodegradation (>98%; operations, typically have high levels of could be employed. Further, the Agency see the U.S. EPA RREL Treatability acetonitrile and/or other organic wastes. anticipates the loadings to these Database). EPA also considered whether Nearly all wastewater residuals different practices will not change the practice of landfilling spent (98.4% by waste volume, and 79% by significantly over time. acetonitrile wastes was likely to loading) are managed in on-site To assess the potential risks for increase, but could find no evidence to wastewater treatment systems; treatment management of acetonitrile wastes, EPA support this. To the contrary, the facility in most cases included biological selected several management practices that had been sending the largest treatment in tanks, with a small amount for modeling. To represent the thermal acetonitrile loading to a Subtitle C (0.1% by loading, or 294 kg total) treatment process (incineration, landfill (454 kg loading, 45,400 kg reported to be sent to surface industrial boilers, fuel blending, critical volume), indicated that it had ceased impoundments. Some wastewaters oxidation), EPA chose an industrial this practice during 1993 and started (1.6% by volume, or 21% by loading) boiler. To account for risks from the sending the waste for thermal treatment also went to Subtitle C deepwell accumulation of residuals for thermal because of the waste’s fuel value. injection as a hazardous waste. Very treatment, EPA modeled an uncovered Only three wastes with spent small quantities were reported to be storage tank. To assess risks arising from acetonitrile were reported to go to discharged to Publicly Owned wastewater treatment, EPA modeled surface impoundments, and these were Treatment Works (POTWs). treatment in an aerated wastewater impoundments that were part of a In 1993, more than 67 percent by treatment tank. wastewater treatment train. In all cases volume of all nonwastewater residuals The Agency considered potential risks the annual loadings were very small containing acetonitrile were classified that might arise from the land-based (294 kg total), and acetonitrile levels as hazardous waste. However this management of acetonitrile wastes, i.e., would be negligible (i.e., orders of percentage is skewed by one large deepwell injection, landfills, and magnitude below the health-based level) volume (4.2 million kg, or 30% of surface impoundments. EPA does not after mixture with other wastewaters at nonwastewaters) of nonhazardous believe that these management practices the headworks prior to entering an wastewater treatment sludge that had present significant risk for the following impoundment. (For example, the largest negligible acetonitrile concentration (see reasons. loading reported treated in a surface discussion below). Nonwastewaters Concerning deepwell injection, as impoundment, 230 kg per year, was with high organic content, such as spent noted above, all of the disposal by this mixed into a wastewater flow of more solvent and heavy ends/distillates, were method occurs in Subtitle C units that than 30 million gallons a day; thus, the managed by some form of thermal are permitted to accept hazardous estimated concentration at the treatment, including incineration, waste. Therefore, EPA does not believe headworks would be less than 0.04 energy recovery in a BIF, or blending for that these wastes present any significant ppm, well below the health-based level fuel for future energy recovery. risk. Nearly all of the wastes sent to of 0.2 ppm.) Furthermore, acetonitrile is Based on the reported waste volumes deepwell injection were classified as removed during wastewater treatment, and concentrations of the acetonitrile in hazardous waste; only a total of 97 kg such that any acetonitrile in treatment the wastes, loadings of acetonitrile in of wastes (containing 2 kg of solvent) impoundments would be further the waste were calculated by sent to deepwell injection were reduced. Except for these three wastes, multiplying the volume (in kilograms) nonhazardous. Thus, the Agency all reported wastewater treatment of by the concentration (in percent) and believes that future disposal of nearly acetonitrile wastes occurs in tanks. EPA dividing by 100 (percent conversion). all of these wastes will continue to be has no reason to believe this practice This calculation provides the total in a permitted unit, and EPA did not would change, given the capital and loading of acetonitrile in the waste that evaluate this practice further. regulatory costs associated with siting a is available for potential release via EPA examined the practice of new surface impoundment, and the management. Table 1 presents the landfilling acetonitrile wastes and found investments already made in tank-based reported volumes and acetonitrile that only four out of the 254 waste treatment systems. loadings by management practice for the streams containing spent acetonitrile Overall, EPA concludes that wastes that contain spent acetonitrile were reported to go to landfills. Of these nonwastewaters with all but negligible from use as a solvent. four wastes, three were sent to Subtitle acetonitrile loadings are usually EPA believes that the waste C landfills (2 after treatment, and 1 was managed as hazardous under Subtitle C management practices reported in the small volume of filter material), and one (because of the ignitability of these questionnaires by industry capture the wastewater treatment sludge was sent to wastes, and/or the common practice of plausible management scenarios of a Subtitle D landfill. While the volume mixing with other hazardous solvent concern for acetonitrile wastes. The full of the one waste sent to the Subtitle D wastes), or recycled onsite. Wastewaters RCRA 3007 Questionnaire was sent to landfill was relatively large (4.2 million are primarily handled either as 74 facilities, and information was kg), the sludge was reported to contain hazardous through deepwell injection, obtained concerning the management of only a ‘‘trace’’ of miscellaneous or treated in tank-based wastewater over 250 wastestreams. The Agency organics. This specific sludge, and treatment systems. Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Proposed Rules 42329

TABLE 1.ÐGENERATION STATISTICS FOR ACETONITRILE

# # Total volume Total loading Management Practice of facilities of streams (kg) (kg)

Incineration ...... 33 79 1 <6,000,000 1 <700,000 BIF ...... 11 73 2,410,944 1,650,764 Fuel Blending ...... 19 46 622,870 337,437 WWTÐTank ...... 15 29 8,988,222,016 206,159 WWTÐSurface Impoundment ...... 3 3 95,118 294 POTW ...... 4 6 16,911 16 Landfill, Subtitle C ...... 2 3 72,755 459 Landfill, Subtitle D ...... 1 1 4,181,818 trace Deepwell Injection, Hazardous ...... 4 8 150,123,631 54,706 Critical Oxidation ...... 1 2 315,000 18,900 Distillation/Fractionation ...... 3 4 771,966 429,300 1 Exact value is withheld because some of the data for this practice are claimed as confidential business information.

3. Basis for Proposed No-List The estimated high-end risk RCRA Subtitle C, this third phase of risk Determination assessment with plausible screening focused on the risk from a. Risk Assessment. The Agency mismanagement of acetonitrile wastes waste streams that are not currently performed risk bounding and high end in an aerated tank is an inhalation HQ being managed as hazardous. A risk estimates using the approaches of 0.002, which indicates minimal risk bounding analysis of these wastes described earlier (see Section II.C) to through the inhalation pathway for this resulted in an HQ of 0.44, revealing obtain a hazard quotient (HQ) for each scenario. However, the high-end risk risks below the HQ level of concern. estimate for the plausible plausible mismanagement scenario. Since all the other acetonitrile waste Where the HQ exceeds 1, exposure is mismanagement of acetonitrile wastes through on site accumulation resulted streams also showed hazard quotients expected to pose a risk to human health below 1, EPA concluded that the risks and the environment. The results of in an inhalation HQ of 200; the central from the portion of wastes that are these analyses are shown in Table 2. tendency HQ was 0.09. This was the Using bounding assumptions, the only management scenario with a high- nonhazardous are not significant. EPA Agency estimated that management of end HQ greater than 1. also believes that the risk assessment acetonitrile residuals in a boiler could EPA then conducted a third phase of overstates the risks from tank storage result in an inhalation HQ of 0.0000006. risk screening on these acetonitrile because the bounding and high end risk Risk based on bounding assumptions for wastes modeled in accumulation tanks. analyses assumed that all of the stored the other plausible mismanagement The 3007 survey data showed that the solvent would volatilize from the tank; scenarios (an aerated tank and on site vast majority of these wastes are either such an assumption is very conservative accumulation) exceeded an inhalation characteristically hazardous (generally because these wastes are being HQ of 1, and EPA then conducted high ignitable) or co-managed with other accumulated for thermal treatment or end and central tendency risk analyses listed hazardous wastes. Since these fuel blending. for these scenarios. wastes are already regulated under

TABLE 2.ÐRISK ASSESSMENT RESULTS FOR ACETONITRILE

Hazard quotient (HQ) Plausible mismanagement practice Central tend- ency Bounding High end

Wastewaters: • Treatment in Aerated Tanks ...... 0.00002 2.4 0.002 Nonwastewaters: • On Site Accumulation: ÐPhase I & II (all wastes) ...... 0.09 346 200 ÐPhase III (nonhazardous wastes) ...... 0.44 ...... • Boiler ...... 0.00000061 ...... All risks are direct inhalation. For a complete description of the risk assessment methodology and results, see the background document As- sessment of Risks from the Management of Used Solvents.

b. Environmental Damage Incidents. linked to environmental damage in from air releases of acetonitrile stored in Acetonitrile has been identified as a either the ROD or HRS databases. open tanks, EPA believes that this risk constituent of concern at one site c. Conclusion. EPA believes that would not be significant for these investigated using the Hazard Ranking acetonitrile does not satisfy the criteria residuals because most of the System (HRS). However, there are no for listing in 40 CFR 261.11(a)(3). nonwastewater residuals stored are sites that have undergone a Record of Therefore, EPA is proposing that wastes regulated as hazardous waste. Some of Decision (ROD) that identify acetonitrile from the use of acetonitrile as a solvent those wastes are already listed; others as a constituent. In no instances has the should not be listed as hazardous waste are regulated as hazardous waste use of acetonitrile as a solvent been under 40 CFR 261.31. While risk because of their characteristics analyses indicate some potential risk (generally ignitability). EPA believes 42330 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Proposed Rules that regulating the wastes this way is RCRA 3007 Solvent Use Questionnaire in water, and is useful as a solvent for protective of human health and the (nearly all of the remaining facilities polar and nonpolar chemicals. 2- environment. The wastes which are used less than 100 kg). In the RCRA Methoxyethanol is flammable when regulated as characteristically hazardous 3007 Questionnaire, 35 facilities exposed to heat or open flame, and is are being managed through incineration, reported the use of 3.7 million ignitable, with a flash point of 39.4°C. an efficient mechanism for destroying kilograms of 2-methoxyethanol, a Residuals with high concentrations of 2- the hazardous constituents. EPA decline from the previous year. This is methoxyethanol are expected to exhibit believes that it is implausible that these primarily attributable to the elimination the characteristic of ignitability. With a wastes will be managed in an unsafe of use of 2-methoxyethanol at 12 vapor pressure of 6.2 mm Hg at 20°C, 2- manner (as explained in section II–D–2– facilities, and a large drop in use at five methoxyethanol is volatile, and the c). Regulations controlling air releases other facilities. In addition, EPA Henry’s Law Constant for 2- from storage of hazardous waste have determined from the responses to the methoxyethanol is 2.9×10¥3 atm-m3/ recently been promulgated. (See full questionnaire that some uses mole, indicating that 2-methoxyethanol December 6, 1994 at 59 FR 62896, and reported in the semiconductor industry rapidly evaporates from water. February 9, 1996 at 61 FR 4903). These and by TSDs were not solvent uses. The Log Kow for 2-methoxyethanol is regulations address volatile organic Information from the RCRA 3007 ¥0.77, indicating that 2- compounds at levels much less (i.e., 100 Questionnaire indicates that 2- methoxyethanol has a low tendency to ppm) than those that yielded the methoxyethanol is used for cleaning sorb to soil organic matter and potential risks for acetonitrile. purposes, including removal of product bioaccumulate in organisms. In the Furthermore, EPA believes that the risk buildup from tanks and removal of atmosphere, 2-methoxyethanol is assessment overstated the risks polymer film during the production of subject to photodegradation, with a half- presented by storage in tanks because integrated circuits. 2-Methoxyethanol is life of less than one day. the scenario assumed that all of the used as a reaction medium for the 2-Methoxyethanol is not classified as stored solvent would escape; this seems production of various products. It can a carcinogen. The chemical has an RfC × ¥2 3 unlikely if the waste is being stored be used as a diluent in the production of 2 10 mg/m and a provisional × ¥3 expressly to send for further treatment of lacquers and coating formulations reference dose (RfD) of 5.7 10 mg/kg/ or fuel blending. Therefore, given that that subsequently are applied to a day. The corresponding air HBL is × ¥2 3 nearly all of the nonwastewater substrate, which may be aluminum, 2 10 mg/m and the provisional acetonitrile residuals are either already metal, or nonwoven fiber. It also is a water HBL is 0.2 mg/L. c. Waste Generation, Characterization, being handled as hazardous, or contain diluent in the production of specialty and Management. Twenty-three negligible amounts of the solvent, EPA chemicals. Additionally, 2- facilities reported a total of 3.14 billion believes that spent solvent residuals are methoxyethanol is used in specialized kg of waste generated in 1993. The vast not likely to pose a significant hazard to laboratory analyses. 2-Methoxyethanol is used in the majority (>99%) of the residuals human health and the environment. formulation of a photoresist system used generated are wastewaters contaminated E. 2-Methoxyethanol (2-ME) in the semiconductor manufacturing with relatively low concentrations of 2- industry. Where the 2-methoxyethanol methoxyethanol (average concentration 1. Industry Identification is part of the formulation of purchased of 0.01%). These wastes also include 2.1 In 1993, 24 million kilograms of 2- photoresist, its use does not constitute million kg of nonwastewaters, methoxyethanol, also known as solvent use. However, in at least one containing variable amounts of 2- ethylene glycol monomethyl ether, or 2- case, 2-methoxyethanol is used as a methoxyethanol, including spent ME, were produced. Data on imports solvent for cleaning the edge of the solvents, sludges, and containers and and exports are not available. 2- semiconductor wafer after application of rags. Where 2-methoxyethanol is Methoxyethanol is widely used as a jet the photoresist; this use does meet the incorporated into the final product, fuel additive to inhibit icing in fuel RCRA definition of solvent use. wastes may include off-specification systems, with 76 percent consumed for Discussions with the semiconductor materials and tank cleanout wastes. this purpose. It is used as a chemical industry and engineering site visits to In 1993, over 96% percent by volume intermediate (9 percent in 1993) in the many of these facilities leads EPA to of nonwastewaters were reported to be production of the specialty plasticizer believe that the use of 2- hazardous. A large fraction (70%) of the di-(2-methoxyethyl) phthalate (DMEP); methoxyethanol, along with other lower nonwastewaters was recovered through as a chemical intermediate in the order glycol ethers, is being phased out. distillation or fractionation, and most of manufacture of esters such as 2- Literature searches indicated that 2- the rest (29%) was managed by some methoxyethyl acetate; and in the methoxyethanol has the potential for type of thermal treatment, either by synthesis of the dimethyl ethers of use as a solvent in: the manufacture of incineration, energy recovery in a boiler, ethylene glycol. polymeric materials, composite or fuel blending. The wastewaters The remaining 14 percent of 2-ME is membranes, resins, and recording containing spent 2-methoxyethanol used in a variety of applications, materials; the preparation of specialty were all reported to be treated in tank- including the solvents use discussed in chemicals; electroplating; and dye based wastewater treatment systems. greater detail below. processing. However, the Agency could Based on the reported waste volumes find no confirmation of these uses from and concentration of the 2- 2. Description of Solvent Usage and the RCRA 3007 Questionnaire. In light methoxyethanol in the wastes, loadings Resulting Waste of the Agency’s extensive investigation of 2-methoxyethanol were calculated by a. Solvent Use and Questionnaire of actual solvent use in connection with multiplying the volume (in kilograms) Responses. In the RCRA 3007 the 3007 Survey, EPA believes it is by the concentration (in percent) and Prequestionnaire of Solvent Use, 111 reasonable to consider only those dividing by 100 (percent conversion). facilities reported the use of 15.4 solvent uses actually confirmed by he This calculation provides the quantity million kilograms of 2-methoxyethanol survey results. of 2-methoxyethanol in the waste that is as a solvent in 1992. Of the 111 facilities b. Physical/Chemical Properties and available for potential release via reporting use in 1992, 47 were sent the Toxicity. 2-Methoxyethanol is miscible management. Table 3 presents the Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Proposed Rules 42331 reported volumes and 2-methoxyethanol wastes, EPA selected several removed by such treatment due to its loadings by management practice for the management practices for modeling. To volatility. In the face of the existing wastes that contain spent 2- represent thermal treatment practices, EPA finds it implausible that methoxyethanol. (incineration, industrial boilers, fuel high organic wastes or aqueous liquids EPA believes that the waste blending), EPA chose an industrial currently sent to thermal treatment management practices reported in the boiler. To account for risks from the would be managed in a landfill. questionnaires represent the plausible accumulation of residuals in tanks, EPA Essentially all of the nonwastewater management scenarios of concern for 2- modeled an uncovered storage tank. residuals that contain spent 2- methoxyethanol. EPA surveyed all Finally, to assess risks arising from methoxyethanol are thermally treated or significant users of this solvent, and wastewater treatment, EPA modeled recovered, and more than 96% of this collected information on the waste treatment in an aerated wastewater treatment is as a hazardous waste. The management practices for 54 treatment tank. large percentage of spent 2- wastestreams. The Agency believes that None of the 56 wastestreams were methoxyethanol wastes that are already these facilities provide a good reported to go to land disposal in hazardous are precluded from land indication of all likely waste landfills or impoundments. Solids disposal in Subtitle D units, and no management practices. Furthermore, containing spent solvent are evidence exists to suggest that any with the use of this chemical as a incinerated, and wastewaters are all wastes containing spent 2- solvent declining, new management treated in tanks. Wastewater treatment methoxyethanol would be placed in a practices are unlikely to occur. sludges generated do not contain landfill. Any change from the current To assess the potential risks for significant levels of 2-methoxyethanol, practice of treatment of wastewaters in management of 2-methoxyethanol because the chemical is efficiently tanks to treatment in

TABLE 3.ÐWASTE STATISTICS FOR 2-METHOXYETHANOL

Number of Number of Total volume Total load- Management practice facilities streams (kg) ing (kg)

Incineration ...... 11 20 297,522 52,839 Energy Recovery ...... 6 13 129,369 57,760 Fuel Blending ...... 5 11 224,530 104,444 WWT-Aerated Tanks ...... 6 6 3,139,049,350 452,030 WWT-Other Tanks ...... 2 2 2,558 486 Fractionation/Distillation ...... 1 2 1,463,068 14,631 Storage (for unspecified offsite hazardous treatment) ...... 2 2 14,802 704

Impoundments also seems unlikely methoxyethanol wastewater in an regulated under RCRA Subtitle C, this given the associated costs for such a aerated tank could result in an third phase of risk screening focused on change. As noted above, however, this inhalation HQ of 0.98 and management the risk from waste streams that are not solvent is easily removed from of nonwastewater in a boiler could currently being managed as hazardous. wastewaters by volatilization, therefore × ¥8 result in an inhalation HQ of 6 10 . EPA’s data showed no waste streams even if treatment in an aerated Risk based on bounding assumptions for in this management scenario which impoundment occurred, it would be the other plausible mismanagement were nonhazardous; all of the waste expected to rapidly remove the solvent scenario (on site accumulation) and make any releases to groundwater exceeded an inhalation HQ of 1, and streams were already being managed unlikely. EPA then conducted high end and under RCRA Subtitle C. Since all the other 2-methoxyethanol waste streams 3. Basis for Proposed No-List central tendency risk analyses for these scenarios. showed hazard quotients below 1, EPA Determination concluded that there was insignificant The estimated high-end risk a. Risk Assessment. The Agency risk reduction which could be gained by assessment for plausible performed risk bounding and high end listing 2-methoxyethanol as a hazardous mismanagement of 2-methoxyethanol risk estimates using the approaches waste. EPA also believes that the risk described earlier (see Section II.C) to wastes through on site accumulation is an inhalation HQ of 16. This was the assessment overstates the risks from obtain a hazard quotient (HQ) for each tank storage because the bounding and plausible mismanagement scenario. only management scenario where the high-end HQ was higher than 1. high end risk analyses assumed that a Where the HQ exceeds 1, exposure is large fraction of the stored solvent EPA then conducted a third phase of expected to pose a risk to human health would volatilize from the tank; such an risk screening on these 2- and the environment. The results of assumption is very conservative because these analyses are shown in Table 4. methoxyethanol wastes in open Using bounding assumptions, the accumulation tanks. Since wastestreams these wastes are being accumulated for Agency estimated that management of 2- which are hazardous are already being thermal treatment or fuel blending.

TABLE 4.ÐRISK ASSESSMENT RESULTS FOR 2-METHOXYETHANOL

Hazard quotient (HQ) Plausible mismanagement practice Central tendency Bounding High end

Wastewaters: • Treatment in Aerated Tanks ...... 3×10¥9 0.98 ...... 42332 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Proposed Rules

TABLE 4.ÐRISK ASSESSMENT RESULTS FOR 2-METHOXYETHANOLÐContinued

Hazard quotient (HQ) Plausible mismanagement practice Central tendency Bounding High end

Nonwastewaters: • On Site Accumulation ÐPhase I & II (all wastes) ...... 0.007 59 16 ÐPhase III (non-haz wastes) ...... None •Incineration ...... 6×105¥8 ...... All risks are direct inhalation. For a complete description of the risk assessment methodology and results, see the background document As- sessment of Risks from the Management of Used Solvents.

b. Environmental Damage Incidents. sites cannot occur for nearly all 2. Description of Solvent Usage and 2-Methoxyethanol has been detected at nonwastewaters resulting from solvent Resulting Waste three Superfund sites, however, based use of 2-methoxyethanol. on a review of identified damage c. Conclusion. EPA believes that 2- a. Solvent Use and Questionnaire instances, no single instance of damage methoxyethanol does not satisfy the Responses. In the RCRA 3007 was identified that could be tied to use criteria for listing in 40 CFR Prequestionnaire of Solvent Use, 32 of 2-methoxyethanol as a solvent. The 261.11(a)(3). Therefore, EPA is facilities reported the use of a combined RODs report that 2 methoxyethanol was proposing that wastes from the use of 2- total of 1.04 million kilograms of methyl detected, however, no concentrations methoxyethanol as a solvent should not chloride in 1992. In the RCRA 3007 were provided for any of the three sites. be listed as hazardous waste under 40 Questionnaire, seven facilities reported Two of the sites were landfills that CFR 261.31. While risk analyses the use of 623,645 kilograms of methyl accepted a wide variety of industrial indicate some potential risk from air chloride as a solvent. This reduction and municipal wastes. One landfill releases of 2-methoxyethanol stored in occurred because EPA determined from ceased operation in 1980, and received open tanks, EPA believes that this risk responses to the full questionnaire that liquid wastes (including latex and from residuals that are currently methyl chloride was not used as a ‘‘spent organic solvents’’) from 1968– regulated hazardous waste would not be solvent in some facilities. Of the seven 1972. The other landfill received significant because all of the facilities, three reported the use of small municipal wastes from 1969 until 1984, nonwastewater residuals were stored as quantities in laboratories, primarily for and drummed industrial wastes regulated hazardous waste. Therefore, liquid/liquid extraction. The major use between 1973 and 1975. The use of the these wastes are already hazardous, and was reported by two butyl rubber 2-methoxyethanol prior to disposal at listing is not necessary. Regulations manufacturers, which accounted for these landfills is impossible to ascertain. controlling air releases of volatile greater than 99% of the solvent use of In both cases a wide variety of other organics from storage of hazardous methyl chloride. contaminants were found. The third waste have recently been promulgated. Literature searches indicated that facility was a used oil recycling site that (See 59 FR 62896, December 6, 1994, methyl chloride may be used ceased operations in 1981, and was and February 9, 1996 at 61 FR 4903). commercially as a liquid (under primarily contaminated by oil, PCBs, Furthermore, EPA believes that the risk pressure) and has solvent applications metals, and VOCs. 2-methoxyethanol assessment overstated the risks in the production of butyl rubbers, has been used as a jet fuel additive, and presented by storage in tanks because which was confirmed by the it is likely that 2-methoxyethanol is the scenario assumed that a large Questionnaire respondents. Other present in used oil from this source. fraction of the stored solvent would potential solvent uses include the The solvent uses identified for 2- escape; this seems unlikely if the waste dealumination of aluminosilicates; a methoxyethanol (e.g., pharmaceutical is being stored expressly to send for polymerization medium; a blowing manufacturing, coatings and lacquers, further treatment or fuel blending. For agent for Styrofoam; a medium for the electronics, photographic chemicals, the foregoing reasons, spent solvent synthesis of tert-chlorine-ended and laboratory use) are not represented residuals are not likely to pose a in any of the facilities identified as polyisobutylenes with allyltrimethyl- significant hazard to human health and having 2-methoxyethanol silane; and a specialty solvent in the environment. contamination. Therefore, it is not likely laboratory applications. These uses were that the damage incidents identified F. Methyl Chloride not confirmed by the RCRA 3007 were the result of mismanagement of 2- Questionnaire respondents. 1. Industry Identification methoxyethanol following use as a b. Physical/Chemical Properties and solvent, and the Agency did not In 1993, U.S. production of methyl Toxicity. Methyl chloride has a consider the damage incidents relevant chloride was estimated to be 218.8 moderate solubility in water of 0.648 to the listing determination. In addition, million kilograms, of which 78 percent percent by weight at 30°C. Methyl disposal of the wastes that are the was used as an intermediate in the chloride is a gas under ambient potential sources of 2-methoxyethanol manufacture of chlorosilanes; 16 conditions, and will have a high rate of occurred well before RCRA regulations percent was used in the production of evaporation from water to air, as were in place. The vast majority of the quaternary ammonium compounds, evidenced by its Henry’s Law Constant nonwastewater solvent wastes identified agricultural chemicals, and of 4.5×10¥2 atm-m3/mole. It has a Log in the 3007 Survey were reported to be methycellulose; approximately 3 KOW of 0.91, indicating that methyl hazardous waste, and are now subject to percent was exported; and the chloride has a low potential for strict regulation. Therefore, the kind of remainder is used for other purposes, absorption to soil and bioaccumulation disposal that led to these Superfund including use as a solvent. in organisms. Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Proposed Rules 42333

Methyl chloride can biodegrade kg of wastewater treatment sludge and questionnaires represent the plausible anaerobically. It will also hydrolyze in 6.6 million kg of sludge/ash from further management scenarios for spent methyl water to give methanol; at ambient treatment of the sludge), and 0.52 chloride wastes. Nearly all of the temperatures, the half life in water is million kg of spent solvent. solvent use of this chemical was estimated to be about one year. Just The wastewaters were all sent to accounted for by the two facilities that considering hydrolysis alone, this wastewater treatment systems, which produce butyl rubber. The other means that in less than 10 years the included aeration/biological treatment facilities that reported any waste concentration of methyl chloride would in tanks or surface impoundments. The containing methyl chloride reported vast majority (89 million kg) of the be decreased by a thousand-fold. corresponding loadings that were nonwastewaters were further treated Methyl chloride is a suspected extremely small (2 kg total loading). One carcinogen. Using an oral carcinogen and ultimately landfilled (6.6 million kg). The balance of the nonwastewaters company owns both butyl rubber plants, slope factor (CSF) of 1.3x10¥2 (mg/kg/ (0.52 million kg) were managed by and is the sole producer of butyl rubber day) ¥1, EPA calculated that exposure to thermal treatment (incineration or in the country. Given this highly a water concentration of 0.003 mg/L for energy recovery in a boiler/industrial specialized solvent use of this chemical, 70 years would correspond to a cancer the Agency is confident that no other × ¥6 furnace). risk of 1 10 . The inhalation CSF is Based on the reported waste volumes significant waste management practice × ¥6 3 ¥1 1.8 10 (ug/m ) , which corresponds and concentration of the methyl for the associated wastes exists. ¥6 × ¥4 to a 10 risk HBL in air of 6 10 mg/ chloride in the wastes, loadings of m3. To assess the potential risks methyl chloride to the environment associated with the management of c. Waste Generation, Characterization, were calculated by multiplying the these wastes, EPA chose to model an and Management. Seven respondents to volume (in kilograms) by the industrial boiler to represent the the RCRA 3007 Questionnaire reported concentration (in percent) and dividing thermal treatment practices the generation of more than 1.19 billion by 100 (percent conversion). This (incineration and fuel blending). To kg of residuals resulting from the use of calculation provides the quantity of methyl chloride as a solvent; nearly all methyl chloride in the waste that is account for storage prior to thermal of the waste from the production of available for potential release via treatment, EPA modeled the butyl rubber. The vast majority of this management. Table 5 presents the accumulation of spent methyl chloride volume was wastewaters (1.1 billion kg), reported volumes by management in an open storage tank. To assess risks with relatively low solvent practice, and the amount of methyl from wastewater treatment, EPA also concentrations. The remaining wastes chloride contained in the wastes. modeled potential releases from included residuals generated from EPA believes that the waste wastewater treatment in a surface treatment of the wastewaters (89 million management practices reported in the impoundment.

TABLE 5.ÐWASTE STATISTICS FOR METHYL CHLORIDE RESIDUALS

Number of Number of Total volume Total load- Management practice facilities streams (kg) ing (kg)

Incineration ...... 4 4 89,296,310 2 Energy Recovery (BIFs) ...... 1 1 225,000 2,250 Land Disposal ...... 1 2 6,550,550 <5.5 WWTÐTanks ...... 1 1 60,000,000 600 WWTÐSI ...... 1 1 1,036,517,000 175,000

EPA considered the potential risks Treatability Database). Therefore, it is from landfills for methyl chloride that might arise from the land-based unlikely that any appreciable level of wastes. Furthermore, methyl chloride management of methyl chloride wastes the chemical remains in this treatment will also undergo hydrolysis in water in landfills and surface impoundments. residual. The other waste sent to a with a half-life of less than one year, EPA does not believe that these landfill was a small volume of spent and hydrolysis would be significant for management practices present a desiccant (550 kg), containing relatively any methyl chloride reaching the significant risk for the following little solvent (<5.5 kg). Neither of these groundwater. For example, over a ten reasons. wastes is expected to present any year period (which would correspond to Two wastes were reported sent to significant risk due to negligible rapid movement off-site from a landfill Subtitle D landfills. The larger volume amounts of solvent present. in groundwater), the concentration of waste (6.55 million kg) is a residual One other major wastestream (89 methyl chloride would drop to less than from a sludge treatment unit, which million kg) was reported as wastewater 0.001 of the level leaving the landfill. includes an incinerator, that was sent treatment sludge, however, as noted The two wastewater streams reported off-site for stabilization and placement previously, this waste was actually the were sent to wastewater treatment in a landfill. The residual was reported waste that entered the sludge treatment systems; one included treatment in to have only a ‘‘trace’’ of hydrocarbons. unit, where it was treated to give the tanks, the other used treatment in an Methyl chloride is readily treated by 6.55 million kg sludge/ash wastestream aerated surface impoundment. The biodegradation and volatilization in an noted above. For the reasons described wastewater sent to the impoundment aerated system with activated sludge. previously, EPA believes that these very was reported to contain relatively high Removal efficiencies for methyl chloride low-concentration wastes are typical of amounts of methyl chloride (175,000 from industrial wastewater treatment the types of wastes that are likely to be kg); thus, EPA examined this process in systems are reported to be high (greater landfilled. Therefore, EPA believes that detail for risks from possible releases to than 98.9%; see the U.S. EPA RREL no significant risks are likely to arise air and groundwater. Using the 42334 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Proposed Rules estimated loading of methyl chloride however this waste was hazardous due tendency risk analyses for this scenario. reaching the surface impoundment, EPA to ignitability (due to high levels of The estimated high end risk assessment modeled the potential risks from air hydrocarbons such as hexane present) with plausible mismanagement of releases (see risks given in the next and the toxicity characteristic (due to methyl chloride wastes by onsite section). The Agency does not believe the presence of benzene). Therefore, the accumulation in an uncovered tank that risks are likely to arise from wastes sent to combustion that resulted is an inhalation risk of 4×10¥6. releases to groundwater because the contained an appreciable level of The estimated high end risk assessment impoundment is reported in the 3007 methyl chloride were burned as a exceeds 1×10¥6 only with the pairing of survey to be a permitted hazardous hazardous waste. EPA recently two high end parameters for (1) the waste management unit. EPA confirmed proposed rules to address releases from waste stream and receptor distance and that the unit is regulated under RCRA. hazardous waste combustion units (see (2) the waste stream and storage The unit is subject to the applicable 61 FR 17358, April 19, 1996). Therefore, duration. The estimated central regulations in 40 CFR 264 including: EPA does not believe that combustion tendency risk was 2×10¥10. EPA groundwater monitoring, corrective products are likely to be of concern for believes that the risk assessment action, and closure requirements. the thermal treatment of methyl overstates the risks from tank storage Therefore, EPA does not believe that chloride wastes. because the bounding and high end risk methyl chloride wastewaters in this unit 3. Basis for Proposed No-List analyses assumed that all of the stored present any significant risk via Determination solvent would volatilize from the tank; groundwater releases. Furthermore, such an assumption is very conservative methyl chloride is readily treated by a. Risk Assessment. The Agency because these wastes are being biodegradation and volatilization in performed risk bounding and high end accumulated for fuel blending. risk estimates using the approaches wastewater treatment systems in Risk for air releases from an aerated general; the impoundment in question is described earlier (see Section II.C) to obtain a risk for each plausible impoundment were estimated using an aerated system with activated sludge bounding-type assumptions, in addition that should efficiently remove methyl mismanagement scenario. Methyl chloride is a suspected carcinogen, and to the relatively large size of the one chloride. Removal efficiencies for impoundment in question. EPA methyl chloride from industrial EPA used cancer risk estimations rather than hazard quotients (the latter are estimated the risk from the aerated wastewater treatment systems are ¥ used to measure the risk for non- impoundment to be 7×10 6. The reported to be high (greater than 98.9%; carcinogenic effects). Where the risk Agency did not attempt to calculate a see the U.S. EPA RREL Treatability exceeds 10¥6 and approaches 10¥4 , high end risk for the impoundment, Database). exposure poses risks of concern to because the use of more realistic EPA also considered the possibility human health and the environment. The parameters was expected to reduce the that the combustion of methyl chloride results of these analyses, given in terms risk level below levels of concern. For might lead to formation of toxic of the increase in life-time cancer risk, example, the closest residence to the products of incomplete combustion over are shown in Table 6. only impoundment in question is 2300 (PICs) due to its chlorine content. The Using bounding assumptions, the feet, far beyond the bounding amount of methyl chloride in the wastes Agency estimated that management of assumption distance of 100 meters. In that go to incineration is relatively low. methyl chloride residuals in a boiler addition, the surface impoundment is The actual loading in the wastes could result in an inhalation risk of regulated as a hazardous waste incinerated was reported to be 2 kg, and 3.3×10¥14. Risk based on bounding management unit, and is therefore these wastes were reported to go to assumptions for the onsite accumulation subject to the recently promulgated hazardous waste incineration. The mismanagement scenario exceeded an regulations limiting releases from waste sent offsite for combustion in a inhalation risk of 10¥6, and EPA then impoundments (see Subpart CC in 40 BIF had a higher loading (2,250 kg), conducted high end and central CFR Part 264).

TABLE 6.ÐRISK ASSESSMENT RESULTS FOR METHYL CHLORIDE

Risk Plausible mismanagement practice Central tendency Bounding High end

Nonwastewaters: • On Site Accumulation ...... 2×10¥10 1.8×10¥5 4×10¥6 • Incineration ...... 3.3×10¥14 ...... Wastewaters: • Surface Impoundment ...... 7×10¥6 ...... All risks are cancer risk for direct inhalation. For a complete description of the risk assessment methodology and results, see the background document Assessment of Risks from the Management of Used Solvents.

b. Environmental Damage Incidents. in operation from 1902 to 1982, volatile organic compounds, and it is Methyl chloride has been detected at indicating that all but a limited amount possible that methyl chloride may be a three Superfund sites. Two of the sites of disposal predated the RCRA controls. degradation product from other (a gravel pit and a landfill) ceased The major activities at this third site chlorinated chemicals. The ROD operation before 1980, and therefore included milling, refrigeration, circuit database indicates that methyl chloride disposal occurred prior to promulgation board manufacturing, and photo has contaminated the ground water at of the RCRA regulations. The third site processing. The primary constituents of two of the sites (no information on was a manufacturing facility which was concern at all three sites are a variety of Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Proposed Rules 42335 concentration levels or affected media is Furthermore, potential air releases of production totals, although its use is available for the third site). methyl chloride from the key waste reflected in 1993 totals. EPA surveyed Wastes deposited at the generators are being addressed by other all petroleum refineries and is confident manufacturing site were reported to EPA programs. Under the authority of that additional quantities of native include cleaning solvents used in circuit the Clean Air Act, the Agency phenol are not produced and board manufacturing processes, but the investigated air releases of methyl subsequently used as a solvent in this ROD database does not cite the uses of chloride by butyl rubber manufacturers. industry. any of the wastes found at the site. Most EPA proposed standards (see Standards Literature searches indicated that important, however, this site was also for HAP Emissions from Process Units phenol may be used as an extraction used as a refrigeration plant, and methyl in the Elastomers Manufacturing solvent in petroleum refining, especially chloride was used as a refrigeration Industry, 60 FR 30801, June 12, 1995) in the processing of lubricating oils; in agent in the past. Because methyl that address releases from these biological applications; in other chloride is a gas under ambient facilities, including storage tanks and chemical industry and laboratory conditions, EPA does not believe that it wastewater treatment systems. The processes; and as a reagent in chemical is likely that wastes at these sites were Agency believes that air regulations that analysis. Minor uses may include use as derived from the use of methyl chloride result from this activity can lead to a a general disinfectant, either in solution as a solvent. The 3007 Survey indicated more integrated control of risks than the or mixed with slaked lime, etc., for that the only significant use of this limited hazardous waste regulations that toilets, stables, cesspools, floors, drains, chemical as a solvent is in the butyl could be imposed. For all of these etc.; for the manufacture of colorless or rubber industry, and none of the damage reasons, therefore, the Agency has made light-colored artificial resins, and in cases were from that industry. a determination that wastes resulting many medical and industrial organic Furthermore, the vast majority of methyl from the use of methyl chloride as a compounds and dyes. According to the respondents to the chloride is used as a synthetic reactant solvent should not be listed as RCRA 3007 Questionnaire of Solvent in industrial chemical processes, with hazardous waste under 40 CFR 261.31. Use, phenol is used as a solvent for four very little used as a solvent. Therefore, G. Phenol primary purposes: as an extraction EPA did not consider these damage medium in the production of lube oil cases in its listing decision for methyl 1. Industry Identification stock using the ‘‘Duo-Sol’’ process; as a chloride. In 1993, U.S. production of synthetic coating remover in the microelectronic c. Conclusion. EPA believes that phenol was estimated to be 1.6 billion and automotive industries; as a reaction methyl chloride does not satisfy the kilograms, of which 34 percent was or synthesis medium; and as a solvent criteria for listing in 40 CFR consumed in the production of phenolic in laboratory analysis. 261.11(a)(3). Therefore, EPA is resins (particularly phenol- The vast majority (>99.9%) of the proposing that wastes from the use of formaldehyde resins), 34 percent was solvent use of phenol is in the methyl chloride as a solvent should not consumed in the production of petroleum industry. The Duo-Sol be listed as hazardous waste under 40 bisphenol-A, 15 percent was consumed process is used widely in the extraction CFR 261.31. Under certain in the production of caprolactam and of lube stock and fuel from crude oil circumstances, the risk assessment adipic acid, 3 percent was consumed in residuals. In this process, phenol acts as indicates some potential risk from the production of aniline, 5 percent was an extraction medium to separate the onsite accumulation of methyl chloride consumed in the production of alkyl extract (subsequently sent to fuels residuals. However, the estimated high- phenols, and 5 percent was consumed refining) and the raffinate (subsequently end cancer risk was 4×10¥6. This risk is in the production of xylenols. Five sent to a dewaxing unit). The extract at the low end of EPA’s range of concern percent was exported and the remaining and raffinate enter a second set of for listing (10¥6 to 10¥4). Furthermore, 2 percent was used in other ways, extraction units, where phenol is EPA believes that the risk assessment including as a solvent. removed. The phenol is dried and overstated the risks presented by storage forwarded to the first extractor along 2. Description of Solvent Usage and in tanks because the scenario assumed with makeup phenol and crude Resulting Wastes that all of the stored solvent would residual. The Duo-Sol solvent does not escape; this seems unlikely if the waste a. Solvent Use and Questionnaire become spent. Losses are attributable to is being stored expressly to send for Responses. In response to the RCRA attrition to product and minor loss to further treatment or fuel blending. In § 3007 Prequestionnaire of Solvent Use, wastewater. Phenolic wastewater is addition, EPA believes that this risk 99 facilities indicated that 2.21 million removed from the system and forwarded would not be significant for these kg of phenol were used as a solvent at to waste management. residuals because they are regulated the site in 1992. Thirty-one facilities Although the industries are quite hazardous wastes. The air release from reported a 1993 combined use of 1.43 different, the use of phenol as a coating aerated wastewater treatment basins is a billion kilograms of phenol as a solvent remover by the microelectronic and more plausible occurrence, and EPA in response to the RCRA 3007 automotive industry is similar. Phenol calculated a bounding risk of 7×10¥6, Questionnaire of Solvent Use. This large is used to remove photoresist in the also at the low-risk end of the Agency’s increase was due to a change in production of semiconductors. In the range of concern. However, as noted reporting by one facility resulting in an automotive industry, phenol is used in previously, the wastewaters generating increased use of over one billion combination with other solvents to the potential risk due to aeration in an kilograms. The facility produces its own remove coatings from automotive impoundment are going to a unit that is phenol for use and did not report this wheels. It is also used (in conjunction a permitted hazardous waste use correctly in the Prequestionnaire. with other solvents) in the aircraft management unit. Thus, in both cases, This facility (a petroleum refining maintenance industry for depainting the recently promulgated regulations facility) reported the production of purposes. limiting air releases from storage tanks native phenol as a byproduct of other Finally, much smaller uses are and impoundments would apply (see processes. This native phenol is not attributable to the use of phenol as a Subpart CC, 40 CFR Part 264). reflected in the synthetic phenol reaction or synthesis medium in the 42336 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Proposed Rules organic chemicals industry and as a determination. EPA requests comments Based on reported waste volumes and laboratory solvent across a variety of on the appropriateness of the concentration of phenol in the wastes, industries. provisional numbers, and seeks any loadings of phenol to each waste b. Physical/Chemical Properties and additional data on the toxicity of management practice were calculated. Toxicity. Phenol is a solid at room phenol. Table 7 presents the total volumes of temperature. It has a solubility in water c. Waste Generation, Characterization, wastes and total solvent content for the of 80 grams per liter at 25°C, indicating and Management. Twenty-four facilities waste management practices. that it is highly soluble. With a vapor reported the generation of residuals EPA believes that the waste pressure of 35 mm Hg at 25°C, phenol from the use of phenol as a solvent management practices reported in the is moderately volatile at ambient totaling 52.5 million kilograms. The questionnaires represent the plausible temperatures. The Henry’s Law largest portion of these wastes, 52.3 management scenarios for spent phenol Constant of 1.3×10¥6 atm-m3/mole for million kilograms, or 99.6 percent, were wastes. Nearly all of the solvent use of phenol indicates that phenol has a phenolic wastewaters containing from this chemical (>99.9%) was attributed relatively low evaporation rate from 0.01% to almost 8 percent phenol. The the petroleum industry, which EPA water. The Log K for phenol is 1.46, remaining nonwastewater residuals ow surveyed. Furthermore, other minor indicating that it has a relatively low were high organic wastes, primarily uses were also examined in detail. tendency to sorb to soil organic matter, spent solvent (197,000 kg), and small Given that the major uses of this solvent and a low tendency to bioaccumulate in volumes of filter media, spent carbon, were very specialized (e.g., extraction of organisms. and debris containing low levels of lube oil), the Agency is confident that Phenol rapidly biodegrades to CO2 phenol. In 1993, 92 percent of the and water in soil, sewage, fresh water, nonwastewaters were classified as no other significant waste management and sea water. This biodegradation will hazardous waste, and 8 percent was practices for the associated wastes are slow under anaerobic conditions, but classified as nonhazardous. likely to exist. still occurs in groundwater. Facilities generating high-volume To assess the potential risks for Phenol is a Class D carcinogen and no wastewaters managed these wastes via management of phenol wastes, EPA carcinogen slope factor has been wastewater treatment. These facilities selected several management practices developed. Phenol has an provisional consist predominantly of petroleum for modeling. To represent the thermal RfC of 2×10¥2 mg/m3 and an RfD of refineries and have sophisticated treatment process (incineration, 6×10¥1 mg/kg/day; these correspond to wastewater treatment systems in place industrial boilers, fuel blending), EPA an air HBL of 2×10¥2 mg/m3 and a that include primary treatment, chose an industrial boiler. To account water HBL of 20 mg/L. These health- biological treatment, and off-site for risks from the accumulation of based numbers are provisional and have secondary treatment. Facilities managed residuals for thermal treatment, EPA not undergone external peer review. The nonwastewaters through some form of modeled an uncovered storage tank. To Agency plans to complete an external thermal treatment, either blending of the assess risks arising from wastewater peer review of these health-based residual for fuel or burning in a boiler treatment, EPA modeled treatment in an numbers prior to issuing a final or incinerator. aerated wastewater treatment tank.

TABLE 7.ÐWASTE STATISTICS FOR PHENOL RESIDUALS

Number of Number of Total volume Total load- Management practice facilities streams (kg) ing (kg)

Incineration ...... 14 28 103,055 23,110 Fuel Blending ...... 4 4 97,526 12,764 Energy Recovery (BIFs) ...... 1 1 9 <0.001 Storage ...... 1 1 153 92 WWTÐTanks ...... 1 1 40,000,000 3,600 WWTÐSI ...... 3 3 12,323,813 355,758

The Agency considered potential risks increase. Wastewater treatment wastewater treatment train. In two of that might arise from the land-based residuals may be landfilled, but are these cases, the phenol concentration management of phenol wastes, i.e., unlikely to contain significant levels of was below the water health-based level landfills, and surface impoundments. phenol, because the chemical is after mixing at the headworks, prior to EPA does not believe that these removed by such treatment due to its reaching the surface impoundment. The management practices present susceptibility to biodegradation (>99%; phenol concentration for one significant risk for the following see the U.S. EPA RREL Treatability wastewater sent to an off-site reasons. Database). Wastes with higher organic wastewater treatment system was None of the 38 wastestreams content were thermally treated, and reported to range from the HBL (20 containing spent phenol were reported most (about 92%) of the thermal mg/L) up to an order of magnitude to go to a landfill. This is not surprising treatment was in hazardous waste units higher (180 mg/L) at the headworks. given that there are few phenol wastes or fuel blending. Therefore, none of the However, as noted above, this level of that are generated as solids. The only wastes with significant phenol phenol is expected to be efficiently waste solids that contained any concentration are likely to be placed in treated (>99%) by the activated sludge, significant level of phenol was spent a landfill. such that little phenol would be carbon, and this was sent for Three wastewaters with spent phenol available for release to the groundwater. regeneration or incineration. EPA also were reported to go to surface In general, facilities have effluent could find no reason to suggest that the impoundments, and these were limitations for chemicals such as practice of landfilling was likely to impoundments that were part of a phenol, so that treatment must occur Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Proposed Rules 42337 prior to discharge. In addition, any biodegradation, and the specific facts Using bounding assumptions, the phenol is quite susceptible to related to the surface impoundment of Agency estimated that management of biodegradation, so that any of the concern, EPA does not believe that the phenol residuals in a boiler could result chemical released to the groundwater is treatment of phenol wastes in surface in an inhalation HQ of 1.1×10¥5. Risk expected to undergo biodegradation, impoundments presents a significant based on bounding assumptions for the further reducing any potential risk. risk. other plausible mismanagement Information on the specific surface scenarios (an aerated tank and on site 3. Basis for Proposed No-List impoundment receiving the phenol accumulation) exceeded an inhalation Determination wastewater of concern also indicates HQ of 1, and EPA then conducted high that groundwater releases from the unit a. Risk Assessment. The Agency end and central tendency risk analyses are not likely to be significant. The performed risk bounding and high end for these scenarios. ground water in the immediate area was risk estimates using the approaches The estimated high-end risk reported to be a class 3 aquifer, which described earlier (see Section II.C) to assessment with plausible is not considered a potential source of obtain a hazard quotient (HQ) for each mismanagement of phenol wastes in an drinking water, and the closest private plausible mismanagement scenario. aerated tank is an inhalation HQ of or public well was reported to be 4,900 Where the HQ exceeds 1, exposure is 0.002, and on site accumulation is an feet from the unit. Therefore, due to the expected to pose a risk to human health inhalation HQ of 0.5. These results dilution at the headworks, the and the environment. The results of indicate minimal risk through the susceptibility of phenol to these analyses are shown in Table 8. inhalation pathway for these scenarios.

TABLE 8.ÐRISK ASSESSMENT RESULTS FOR PHENOL

Hazard quotient (HQ) Plausible mismanagement practice Central tendency Bounding High end

Wastewaters • Treatment in Aerated Tanks ...... 2×10¥7 3.3 0.002 Nonwastewaters: • On Site Accumulation ...... 0.005 12 0.5 • Incineration ...... 1.1×10¥5 ...... All risks are direct inhalation. For a complete description of the risk assessment methodology and results, see the background document As- sessment of Risks from the Management of Used Solvents.

b. Environmental Damage Incidents. concentrations of 20 ppm in soils, 8 potential risks posed by phenol solvent EPA investigated damage incidents at ppm in groundwater, and 0.47 ppm in wastes. which phenol was an identified surface water. However, a wide variety contaminant at the site. Based on a of chemicals were present at these sites, c. Conclusion review of identified damage instances, and it is possible that the phenol EPA believes that phenol does not no single instance of damage was present may have been a contaminant or satisfy the criteria for listing in 40 CFR identified that could be tied to use of degradation product of these other 261.11(a)(3). Therefore, EPA is phenol as a solvent. Phenol is identified chemicals. No damage case was proposing that wastes from the use of as a contaminant at 25 sites in the ROD identified that could be tied to use of phenol as a solvent should not be listed database, however, ‘‘phenol’’ is often phenol as a solvent. In addition, phenol as hazardous waste under 40 CFR listed as a class of compounds. Listings is produced in relatively large volumes, 261.31. The Agency’s risk assessment where the contaminant was listed as and only a very small fraction is used indicates that spent phenol residuals are ‘‘phenols’’ or ‘‘phenolics’’ were not as a solvent, except for the specialized considered by EPA further, unless a use of phenol in the petroleum industry not considered to pose a substantial risk specific concentration of phenol was (none of these sites were related to the under the plausible management identified. petroleum industry). The solvent uses scenarios assessed. Thus, these Furthermore, most of the damage identified for phenol were limited to residuals do not appear to be managed cases found for phenol were for sites at several types of industries (petroleum in a manner that poses a threat to which disposal took place many years refining, electronics, and automotive human health and the environment. ago. Only seven facilities identified with industries), and none of these sectors High-end analysis revealed air risks phenol contamination appeared to have were represented by facilities identified from wastewater treatment and storage operated since the RCRA regulations as having phenol contamination on site. tanks were below levels of concern. were first promulgated (1980), and even The 3007 Survey showed that, of the Furthermore, some of the assumptions at these sites, disposal typically phenol nonwastewater residuals made in these assessments are likely to occurred decades before 1980 and reported to be generated in 1993, 92% have resulted in an overestimation of ceased in the early 1980’s. These seven were classified as hazardous. Therefore, risk. For example, the storage tank cases included: two landfills, three most of the wastes currently generated scenario assumed the phenol would chemical manufacturers (including a from use of phenol as a solvent could volatilize; this seems somewhat unlikely pesticide manufacturer and a textile dye not be legally managed under RCRA in if the waste is being accumulated for manufacturer), one cement production the same manner as the wastes were at subsequent incineration or fuel facility, and one chemical waste storage the contaminated sites. For all of the blending. Also, wastes with higher and processing facility. above reasons, therefore, EPA does not organic content were thermally treated, Levels of phenol reported at these believe that the damage cases provide and most (92%) treatment was in seven sites showed maximum any relevant information on the hazardous waste units or fuel blending. 42338 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Proposed Rules

H. 2-Ethoxyethanol Acetate (2–EEA) conjunction with processes that of nonwastewaters containing variable incorporate the solvent into the levels of 2-ethoxyethanol acetate. These 1. Industry Identification products. 2-Ethoxyethanol acetate is facilities also reported the generation of The 1993, U.S. production of 2- used for tank cleaning at three facilities 0.25 million kilograms of wastewaters ethoxyethanol acetate, also known as between batch manufacturing containing 2 percent or less of 2- ethylene glycol monoethyl ether acetate, operations in which 2-ethoxyethanol is ethoxyethanol acetate. was 22.3 million kilograms. Data one of the materials in the formulation. Essentially all (99.8%) of the indicate a rapidly declining market for At one facility, the tank clean out is nonwastewaters in 1993 were reported 2-ethoxyethanol acetate. In 1983, total incorporated into the next product to be characteristically hazardous or estimated use was 59.5 million batch, thus reducing losses to waste. mixed with listed hazardous waste, and kilograms. By 1987, that had dropped to Another facility uses 2-ethoxyethanol therefore were managed as hazardous 36.8 million kilograms and dropped acetate to clean filter housings. waste through some form of thermal again in 1988 to 31.8 million kilograms. 2-Ethoxyethanol acetate is used to treatment (fuel blending or combustion Exports have increased steadily and adjust the viscosity of adhesives applied in a boiler or incinerator). The now represent 79 percent of the during the manufacture of circuit wastewaters were managed in aerated production in 1993. 2-Ethoxyethanol boards. A mixture of 2-ethoxyethanol tanks, quiescent tanks, and through acetate is used primarily for its solvent acetate and methylene chloride (already discharge to a Publicly Owned properties. Its most extensive use, until regulated as Hazardous Waste Numbers Treatment Works (POTWs). recently, has been in the formulation of F001 and F002) is used to clean curtain Based on reported waste volumes and photoresist used in the manufacture of coating equipment in the same process. concentrations of 2-ethoxyethanol semiconductors. While the formulators A small number of facilities in the acetate in the waste, loadings of 2- of photoresist would be considered semiconductor manufacturing sector use ethoxyethanol acetate were calculated. solvent users for the purposes of this 2-ethoxyethanol acetate for thinning of Table 9 presents the total volumes of study, photoresist users generally are photo lithographic materials. This 2- wastes and total solvent content for the not. Semiconductor manufacturers may ethoxyethanol acetate is not part of the different waste management practices. fall within the scope of this industry formulation of prepurchased photoresist EPA believes that the waste study if they use 2-ethoxyethanol and, thus, meets the Agency’s definition management practices reported in the acetate to clean the edges of of solvent. questionnaires represent the plausible semiconductors. However, the use of a 2-Ethoxyethanol acetate also is used management scenarios for spent 2- formulation that contains a solvent, as a reaction, synthesis, or dissolution ethoxyethanol acetate wastes. The use of such as photoresist, does not constitute medium for raw materials in the 2-ethoxyethanol acetate has been use of the solvent. chemical manufacturing sector. Finally, decreasing dramatically in recent years, The use of 2-ethoxyethanol acetate in 2-ethoxyethanol acetate is used to a thus, other generators of this solvent the semiconductor industry is being small extent in laboratories for specialty waste are unlikely to exist. To assess the phased out. Other solvents, including n- analyses. Literature searches suggested potential risks for management of 2- methyl pyrollidone, n-butyl acetone, other uses for 2-ethoxyethanol acetate, ethoxyethanol acetate wastes, EPA and higher order glycol ethers, such as however these uses were not confirmed selected several management practices propylene glycol ethers, are being used by the industry study, and were not for modeling. To represent the thermal as substitutes. considered in EPA’s listing analysis. treatment process (incineration, b. Physical/Chemical Properties and industrial boilers, fuel blending), EPA 2. Description of Solvent Usage and Toxicity. 2-Ethoxyethanol acetate has a chose an industrial boiler. To account Resulting Waste solubility in water of 22.9 wt. percent in for risks from the accumulation of a. Solvent Use and Questionnaire water, indicating that the solvent is residuals for thermal treatment, EPA Responses. In the RCRA 3007 highly water soluble. With a vapor modeled an uncovered storage tank. To Prequestionnaire of Solvent Use, 121 pressure of 2.0 mm Hg at 20°C, 2- assess risks arising from wastewater facilities reported the use of 1.16 ethoxyethanol acetate is highly volatile treatment, EPA modeled treatment in an million kilograms of 2-ethoxyethanol and can be expected to volatilize to air aerated wastewater treatment tank. acetate. In the RCRA 3007 from open tanks and containers. The None of the 38 wastestreams were Questionnaire, 22 facilities reported the Henry’s Law Constant for 2- reported to go to land disposal in use of 0.27 million kilograms of 2- ethoxyethanol acetate is 1.9×10¥6 atm- landfills or impoundments. Solids (rags, ethoxyethanol acetate. This decrease m3/mole, indicating that it has a containers, lab wastes) containing spent reflects the elimination from further moderate rate of evaporation from solvent were all incinerated, and analysis of 14 facilities that are water. The Log Kow for 2-ethoxyethanol wastewaters are all treated in tanks. In semiconductor manufacturers whose acetate is not known, however, given its the face of the existing practices, EPA sole use of 2-ethoxyethanol acetate is high water solubility, the chemical is finds it implausible that high organic due to its presence in photoresist. not expected to sorb to soils or wastes or aqueous liquids currently sent Semiconductor manufacturers who bioaccumulate in organisms. to thermal treatment would be managed reported the use of 2-ethoxyethanol 2-Ethoxyethanol acetate is not in a landfill. The large percentage of acetate as an edge cleaner or for other classified as a carcinogen. The chemical spent 2-ethoxyethanol acetate wastes cleaning purposes were included in the has an RfC of 7×10¥2 mg/m3 and a RfD that are already hazardous is precluded use study. One additional facility was of 2×10¥2 mg/kg/day. These values from land disposal in Subtitle D units, eliminated from study because its sole correspond to an air HBL of 7×10¥2 mg/ and no evidence exists to suggest that use of 2-ethoxyethanol acetate was due m3 and a water HBL of 0.7 mg/L. any wastes containing spent 2- to its presence in a paint used in coating c. Waste Generation, Characterization, ethoxyethanol acetate would be placed operations. and Management. The 22 facilities in a landfill. Any change from the The facilities who reported the use of reported the generation of 1.2 million current practice of treatment of 2-ethoxyethanol acetate in the RCRA kilograms of residuals from the use of 2- wastewaters in tanks to treatment in 3007 Questionnaire use it most often for ethoxyethanol acetate as a solvent. The impoundments also seems unlikely tank cleaning or degreasing in residuals include 0.95 million kilograms given the associated costs for such a Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Proposed Rules 42339 change. However, this solvent is practice occurred, treatment in an and make any releases to groundwater removed from wastewaters by aerated impoundment would be unlikely. volatilization, therefore even if the expected to rapidly remove the solvent

TABLE 9.ÐWASTE STATISTICS FOR 2±ETHOXYETHANOL ACETATE RESIDUALS

Number of Number of Total vol- Total load- Management Practice facilities streams ume (kg) ing (kg)

Incineration ...... 9 14 641,275 23,239 Energy Recovery (BIFs) ...... 7 13 167,547 146,554 Fuel Blending ...... 8 9 146,612 8,569 WWTÐTanks ...... 2 2 3,161 3 POTW ...... 1 1 243,500 4,871

3. Basis for Proposed No-List Determination a. Risk Assessment. The Agency performed risk bounding and high end risk estimates using the approaches described earlier (see Section II.C) to obtain a hazard quotient (HQ) for each plausible mismanagement scenario. Where the HQ exceeds 1, exposure is expected to pose a risk to human health and the environment. The results of these analyses are shown in Table 10. Using bounding assumptions, the Agency estimated that management of 2-ethoxyethanol acetate residuals in a boiler could result in an inhalation HQ of 2.2×10¥8 and management in an aerated tank could result in an HQ of 0.006. Risk based on bounding assumptions for the other plausible mismanagement scenario (on site accumulation) exceeded an inhalation HQ of 1, and EPA then conducted high end and central tendency risk analyses for this scenario. The estimated high-end risk assessment with plausible management of 2-ethoxyethanol acetate wastes in an uncovered onsite accumulation tank yielded an inhalation HQ of 0.7. This result indicates minimal risk through the inhalation pathway for this scenario.

TABLE 10.ÐRISK ASSESSMENT RESULTS FOR 2-ETHOXYETHANOL ACETATE

Hazard quotient (HQ) Plausible mismanagement practice Central tendency Bounding High end

Wastewaters: • Treatment in Aerated Tanks ...... 0.006 Nonwastewaters: • On Site Accumulation ...... 0.003 9 0.7 • Incineration ...... 2.2×10¥8 All risks are direct inhalation. For a complete description of the risk assessment methodology and results, see the background document As- sessment of Risks from the Management of Used Solvents.

b. Environmental Damage Incidents. c. Conclusion. EPA believes that 2- that poses a threat to human health and 2-Ethoxyethanol acetate has been ethoxyethanol acetate does not satisfy the environment. detected at one Superfund site. The the criteria for listing in 40 CFR I. Furfural ROD database indicates that 2- 261.11(a)(3). Therefore, EPA is ethoxyethanol acetate has contaminated proposing that wastes from the use of 2- 1. Industry Identification the soil, sediments, and ground water at ethoxyethanol acetate as a solvent the site, although no information on the should not be listed as hazardous waste In 1993, U.S. production of furfural concentration level is available. Wastes under 40 CFR 261.31. The use of 2- was estimated to be 39.5 million deposited at the landfill site include ethoxyethanol is declining rapidly in kilograms. An estimated 85 percent was industrial and municipal waste, industry, and the Agency believes that consumed as an intermediate in the including what was termed spent this trend will continue. As discussed production of furfural alcohol and as an organic solvents. However, no disposal above, risk bounding estimates indicate intermediate in the production of occurred at the site after 1980, and the that 2-ethoxyethanol acetate spent tetrahydrofuran. Other non-solvent uses site would reflect management practices solvent residuals are not considered to of furfural may include the manufacture that may no longer be representative. pose a substantial risk or potential of cold-molded grinding wheels, where Essentially all of the nonwastewater hazard to human health and the phenol and furfural react to form solvent wastes identified in the 3007 environment through the pathways and fusible, soluble resins that may be Survey were reported to be hazardous plausible mismanagement scenarios thermally set in the presence of waste, and are subject to strict assessed. Furthermore, essentially all of hexamethylenetetramine. Less than 1 regulation. Furthermore, the ROD the nonwastewaters are already percent of furfural produced in 1993 database does not specifically cite the incinerated as hazardous waste or sent was exported. The remaining 14 percent uses of any of the wastes found at the to fuel blending. Risks from wastewater is used for other purposes, including 4 site. Therefore, EPA did not factor this treatment were low and this practice percent identified as solvent use by damage case into its listing bounded out. Thus, these residuals do Questionnaire respondents. determination. not appear to be managed in a manner 42340 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Proposed Rules

2. Description of Solvent Usage and the lower layer which consists of about just under 177.5 million kilograms of Resulting Wastes 92 percent furfural and 8 percent water. waste, containing less than 0.1 percent This layer is subsequently dried for a. Solvent Use and Questionnaire furfural, generated from processes using reuse. Furfural losses are generally 0.03 Responses. In response to the RCRA furfural as a solvent. Furfural wastes, as percent or less per cycle. EPA believes 3007 Prequestionnaire, 32 facilities reported in the RCRA 3007 that the trend for furfural use is not indicated that 3.87 million kg of furfural Questionnaire of Solvent Use, are favorable. The industry is moving > were used as a solvent at their site in predominantly ( 99.9%) wastewaters toward the use of n-methyl pyrollidone 1992. Eight facilities reported use of that are managed in wastewater for lube oil extraction. The remaining furfural as a solvent in response to the treatment systems. These high-volume solvent use reported was in specialty 3007 Questionnaire of Solvent Use, with wastes are not likely to be managed in applications in laboratory analyses. another manner. One facility has a a total 1993 use of 2.46 million Literature searches indicated other kilograms. This apparent decrease was surface impoundment in their potential uses for furfural, however wastewater treatment system and two due to large volumes reported in the Questionnaire responses did not prequestionnaire that EPA determined treat the wastewater in tanks. Much indicate use of furfural for these smaller quantities of nonwastewater from the full questionnaire were not purposes. used as a solvent furfural wastes were reported and these b. Physical/Chemical Properties and were incinerated as hazardous waste. Based on the responses to the Toxicity. Furfural has a solubility in Based on reported waste volumes and Questionnaire, essentially all (>99.99%) water of 83 grams per liter at 20°C, concentration of furfural in the wastes, of the use of furfural as a solvent is in indicating that it is highly soluble in loadings of furfural to each waste the petroleum industry for lube oil water. Furfural has a vapor pressure of management practice were calculated. extraction. The furfural refining process, 1 mm Hg at 20°C indicating that furfural Table 11 presents the total volumes of developed by Texaco, Inc., involves is highly volatile. The Henry’s Law wastes and total solvent content for the extraction of raw lubricating stock with Constant for furfural is 8.1×10¥5 atm- waste management practices. furfural at temperatures generally below m3/mole, indicating that furfural has a 121°C to yield refined oil extract. The moderate evaporation rate from water. EPA believes that the waste management practices reported in the undesirable aromatic and olefinic The Log Kow is not available at this time, components of the oil are selectively but the high water solubility suggests questionnaires represent the plausible dissolved by furfural and separated from that furfural is not likely to sorb strongly management scenarios for spent furfural the desired paraffinic and naphthionic to soils or bioaccumulate in organisms. wastes. Nearly all of the solvent use of components. In practice, oil enters near However, the aldehyde functional group this chemical (>99.9%) was attributed to the bottom of a countercurrent in furfural is fairly reactive and may the petroleum industry, which EPA extraction column, and furfural is lead to oxidation and degradation in the surveyed. Given that the major use of applied at the point near the top. The environment. this solvent was very specialized (e.g., extract is removed from the bottom of Furfural is not classified as a extraction of lube oil), the Agency is the column with the bulk of the furfural. carcinogen. It has an RfC of 0.05 mg/m3 confident that no other significant waste Furfural is separated from the extracted and an RfD of 0.003 mg/kg/day. These management practices for the associated material and recovered for reuse by values correspond to HBLs of 0.05 wastes are likely to exist. flash distillation followed by steam mg/m3 for air, and 0.1 mg/L for water. To assess the potential risks for distillation. Furfural-water mixtures c. Waste Generation, Characterization, management of phenol wastes, EPA from the steam distillation are readily and Management. The seven responding selected several management practices separated in a decanter by drawing off facilities reported a combined volume of for modeling.

TABLE 11.ÐWASTE STATISTICS FOR FURFURAL RESIDUALS

Number of Number of Total volume Total load- Management practice facilities streams (kg) ing (kg)

Wastewater TreatmentÐSurface Impoundment ...... 1 2 24,732,124 15,940 Wastewater TreatmentÐTank ...... 3 3 152,738,784 165,848 Incineration ...... 1 2 6,220 0.07

To represent the thermal treatment described earlier (see Section II.C) to the Agency estimated an inhalation HQ process (incineration), EPA chose an obtain a hazard quotient (HQ) for each of 0.69, and an ingestion HQ of 0.8.1 industrial boiler. To account for risks plausible mismanagement scenario. Risk based on bounding assumptions for from the accumulation of residuals for Where the HQ exceeds 1, exposure may the other plausible mismanagement thermal treatment, EPA modeled an pose a risk to human health and the scenario (an aerated wastewater uncovered storage tank. To assess risks environment. The results of these treatment tank) exceeded an inhalation arising from wastewater treatment, EPA analyses are shown in Table 12. HQ of 1, and EPA then conducted high modeled treatment in an aerated Using bounding assumptions, the wastewater treatment tanks and surface Agency estimated that management of impoundments. furfural residuals in a boiler could result 1 The bounding estimate for ingestion of × ¥14 3. Basis for Proposed No-List in an inhalation HQ of 2.4 10 and on contaminated groundwater from a surface Determination site accumulation could result in an impoundment assumed a leachate factor of 1, a inhalation HQ of 1.2×10¥5. For dilution and attenuation factor of 10, and ingestion a. Risk Assessment. The Agency management of furfural wastewater in a of 2 liters per day of water and a 70 kilogram body performed risk bounding and high end surface impoundment using bounding weight. After mixing with other wastewaters in the risk estimates using the approaches assumptions (e.g., no biodegradation), offsite treatment system, the initial concentration of furfural entering the impoundment was 0.80 mg/L. Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Proposed Rules 42341 end and central tendency risk analyses mismanagement of furfural wastes in an This result indicates minimal risk for these scenarios. aerated wastewater treatment tank through the inhalation pathway for this The estimated high end risk resulted in an inhalation HQ of 0.0008. scenario. assessment with plausible

TABLE 12.ÐRISK ASSESSMENT RESULTS FOR FURFURAL

Hazard quotient (HQ) Plausible mismanagement practice Central tendency Bounding High end

Wastewaters: • Treatment in Aerated Tanks ...... 2×10¥4 7.9 ...... 0.0008 • Treatment in Surface ...... 0.69 (inhalation). Impoundment ...... 0.8 (ingestion). Nonwastewaters: • On Site Accumulation ...... 1.2×10¥5. • Incineration ...... 2.4×10¥14. All risks are direct inhalation, unless otherwise noted. For a complete description of the risk assessment methodology and results, see the background document Assessment of Risks from the Management of Used Solvents.

b. Environmental Damage Incidents. 2. Description of Solvent Usage and water due to volatilization, with a half- Furfural has been identified as a Resulting Waste life of less than two days. constituent of concern at one site a. Solvent Use and Questionnaire Cumene is not classified as a investigated using the Hazard Ranking Response. In the RCRA 3007 carcinogen. It has a water HBL of 1 mg/ System (HRS). However, there are no Prequestionnaire of Solvent Use, 67 L, based on a reference dose of 0.04 mg/ sites with a Record of Decision (ROD) facilities reported the use of 1.19 kg/day. The HBL for air based on the × ¥3 3 that identify furfural as a constituent. million kilograms of cumene in 1992. In RfC is 9 10 mg/m . The reason for the absence of furfural response to the RCRA Questionnaire, Shortly before today’s action was may be due to its breakdown in the nine facilities reported the use of a published, an industry group (The environment prior to the ROD combined total of 0.60 million Cumene Panel of the Chemical investigation. In no instance has the use kilograms of cumene in 1993. Four other Manufacturers Association) submitted a of furfural as a solvent been linked to facilities were commercial treatment, letter with information related to the environmental damage in either the storage, and disposal facilities that only toxicity of cumene. The letter cited the group’s comments on another EPA ROD or HRS databases. received cumene wastes, and were eliminated from consideration. EPA also proposal (Hazardous Waste c. Conclusion. EPA believes that determined that a large amount of Identification Rule; 60 FR 66344, furfural does not satisfy the criteria for cumene reported as solvent use actually December 21, 1995), which included listing in 40 CFR 261.11(a)(3). was cumene contained in purchased extensive technical information Therefore, EPA is proposing that wastes products. concerning the toxicity of cumene. EPA from the use of furfural as a solvent The major solvent use of cumene is as will evaluate this information, along should not be listed as hazardous waste a reaction medium for chemical with information submitted by under 40 CFR 261.31. Risk analyses production; this accounted for 82% of commenters, as it relates to this listing indicate that furfural spent solvent the total solvent use. The other major determination. residuals do not pose a substantial risk use of cumene was for de-inking or c. Waste Generation, Characterization, or potential hazard through the paint removal in the commercial and Management. Nine facilities pathways assessed. Thus, these printing, automotive, and aviation reported a combined generation of 224 residuals do not appear to be managed industries. Solvents used for de-inking thousand kilograms of residuals from in a manner that poses a threat to and paint removal generally contain the use of cumene as a solvent. The > human health and the environment. small amounts (1 to 3%) of cumene that majority of these wastes ( 70%; 160 are less than the 10 percent before use thousand kg) are collected as vapors and J. Cumene criterion in the existing spent solvents sent directly to on-site combustion; this accounts for the vast majority (>95%) of 1. Industry Identification regulations (See 40 CFR 261.31(a)). Finally, cumene is used in small the cumene loading in all of the wastes In 1993, U.S. production and imports amounts as a reaction medium in that are generated from use as a solvent. of cumene totaled 2.24 billion laboratory experiments. Other wastes include spent solvent and kilograms, of which 1.5 percent is b. Physical/Chemical Properties and process solids that are sent for recovery, exported. The major non-solvent use of Toxicity. Cumene has a solubility in incinerated as hazardous, or stored for ° cumene is in the production of phenol water of 50 mg/L at 20 C, indicating that fuel blending. Small amounts of process it is only slightly soluble in water. It has wastewaters are sent to wastewater and co-product acetone, which utilizes ° nearly 95 percent of the available a vapor pressure of 3.2 mm Hg at 20 C, treatment systems, and the process indicating that it is highly volatile under sludges are sent to a landfill. cumene. Three percent is used either in ambient conditions and can become an Based on reported waste volumes and the production of poly(alpha-methyl air pollutant. The Log K for cumene concentration of cumene in the wastes, styrene) or for unknown purposes, ow is 3.66, indicating that cumene has a loadings of cumene were calculated. which may include use as a component moderate tendency to sorb to soils and Table 13 presents the volumes and in aviation gasoline to improve the some ability to bioaccumulate in loadings reported for each management octane rating or use as a solvent. organisms. Cumene is non-persistent in practice. 42342 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Proposed Rules

EPA believes that the waste residuals for thermal treatment, EPA unlikely to present any risk in a landfill. management practices reported in the modeled an uncovered storage tank. To Furthermore, cumene use in this case questionnaires represent the plausible assess risks arising from wastewater was at a level (1.7%), far below the 10% management scenarios for spent treatment, EPA modeled treatment in an level used to define the currently listed cumene. The uses of cumene as a aerated wastewater treatment tank. solvents, suggesting that this particular solvent are very limited and other Only one cumene waste was reported waste is not derived from solvent use significant generators of this solvent to go to a landfill, wastewater treatment per se, but is essentially an impurity in waste are unlikely to exist. sludges, and the cumene concentration the solvent mixture being used. Given To assess the potential risks for was not reported. However, the cumene the limited use of cumene as a solvent, management of cumene wastes, EPA was used in small quantities in this and the minor volumes reported, EPA selected several management practices case, so that the maximum amount of believes that the practice of landfilling for modeling. To represent the thermal solvent that could be in the sludge will not increase. To the contrary, treatment process (incineration, would be <28 kg. The amount actually except for wastewaters, nearly all wastes industrial boilers, fuel blending), EPA in the sludge is expected to be much generated are being treated as chose an industrial boiler. To account less after wastewater treatment. Such a hazardous, suggesting that any change for risks from the accumulation of very small amount of cumene is highly to Subtitle D landfills is implausible.

TABLE 13.ÐWASTE STATISTICS FOR CUMENE

Number of Number of Total vol- Total load- Management practice facilities streams ume (kg) ing (kg)

Incineration ...... 3 3 14,620 2,242 Boiler/Industrial Furnace ...... 1 1 160,088 128,070 Wastewater Treatment-Tank ...... 1 1 (1) <28 Wastewater Treatment-Surface Impoundment ...... 1 1 4,738 <47 Landfill ...... 1 1 1,631 <28 Storage Only ...... 1 1 3,670 1,468 Recovery ...... 3 2 39,117 1,379 1 Not reported.

One waste containing spent cumene (NAPLs) that might move as a separate Where the HQ exceeds 1, exposure is was reported to go to a surface phase above the ground water table. expected to pose a risk to human health impoundment as part of a wastewater These NAPLs may present special and the environment. The results of treatment train. However, the annual problems, especially in assessing their these analyses are shown in Table 14. loading was very small (<47 kg) and transport and potential impact. Unlike Using bounding assumptions, the cumene levels would be negligible (i.e., all the other target solvents that are Agency estimated that management of orders of magnitude below the health- miscible or very soluble in water and cumene residuals in a boiler could based level) after mixture with other are not likely to form NAPLs in result in an inhalation HQ of 2.8×10¥7, wastewaters at the headworks prior to groundwater, cumene’s water solubility management in an aerated tank could entering an impoundment. Furthermore, is relatively low, and cumene could result in an inhalation HQ of 0.03. Risk cumene volatilizes relatively quickly theoretically form NAPLs. However, based on bounding assumptions for the from water and is efficiently removed EPA believes that NAPL formation from other plausible mismanagement during wastewater treatment (>97%; see cumene used as a solvent is highly scenario (on site accumulation) U.S. EPA RREL Treatability Database); unlikely because such uses are very exceeded an inhalation HQ of 1, and thus any cumene reaching treatment limited, and the cumene loading to EPA then conducted high end and impoundments would be further land-based disposal was minimal (<28 central tendency risk analyses for these reduced. All wastewaters generated kg to landfills). from use of cumene as a solvent appear scenarios. to contain very low levels of cumene, 3. Basis for Proposed No-List The estimated high end risk therefore EPA believes treatment in a Determination assessment with plausible surface impoundment is unlikely to a. Risk Assessment. The Agency mismanagement of cumene wastes by present a significant risk, even if the performed risk bounding and high end on site accumulation in an uncovered practice were to increase. risk estimates using the approaches tank resulted is an inhalation HQ of 0.2. Finally, EPA also considered that described earlier (see Section II.C) to This result indicates minimal risk spent cumene wastes have the potential obtain a hazard quotient (HQ) for each through the inhalation pathway for this to form non-aqueous phase liquids plausible mismanagement scenario. scenario.

TABLE 14.ÐRISK ASSESSMENT RESULTS FOR CUMENE

Hazard quotient (HQ) Plausible mismanagement practice Central tendency Bounding High end

Wastewaters: • Treatment in Aerated Tanks ...... 0.03. Nonwastewaters: • On Site Accumulation ...... 0.02 3 ...... 0.2 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Proposed Rules 42343

TABLE 14.ÐRISK ASSESSMENT RESULTS FOR CUMENEÐContinued

Hazard quotient (HQ) Plausible mismanagement practice Central tendency Bounding High end

• Boiler ...... 2.8×10¥7 ...... All risks are direct inhalation. For a complete description of the risk assessment methodology and results, see the background document As- sessment of Risks from the Management of Used Solvents.

b. Environmental Damage Incidents. K. Cyclohexanol water. With a vapor pressure of 1 mm Of the three facilities identified with Hg at 20°C, cyclohexanol is moderately 1. Industry Identification cumene contamination in the Record of volatile. The Log Kow for cyclohexanol Decision Database, only one was The combined production and import is 1.23, indicating that cyclohexanol has reported to be in operation after 1980. data show 10.0 million kilograms of a low potential for sorbing to soil. The This facility was a landfill that operated available cyclohexanol, based on 1990 Henry’s Law Constant is 4.5×106 atm- from 1960 until 1984, when it was production and 1993 import data. Non- m3/mole indicates that cyclohexanol abandoned. The facility reportedly solvent uses of cyclohexanol include has a low evaporation rate from water. received a variety of wastes from 1972 cyclohexamine production (54 percent) Data on the health effects of to 1974, including waste paints, and pesticide production (14 percent). cyclohexanol are limited. Provisional An unknown amount is used in the painting sludges, and spent solvents. values for the RfD and RfC have been oxidation of cyclohexanol to adipic acid Therefore, the disposal of the potential calculated from one study. The (a key ingredient in nylon 66) and ¥ wastes of concern appears to have provisional RfC is 6×10 5 mg/m3 and cyclohexanol can be used in the × ¥5 occurred well before 1980. The specific the RfD is 1.7 10 mg/kg/day. These production of caprolactam. Some × ¥5 3 solvents disposed at the facility are not correspond to HBLs of 6 10 mg/m cyclohexanol was reported as solvent for air and 0.0006 mg/L for water. These identified, making it difficult to link use by RCRA 3007 Questionnaire cumene contamination to spent health-based numbers are provisional respondents within the petroleum and have not undergone external peer solvents. However, eleven solvents industry. There is no evidence of currently listed as hazardous wastes review. The Agency plans to complete significant use of cyclohexanol as a an external peer review of these health- were found as contaminants at the site solvent outside the petroleum industry. and may account for the reporting of based numbers prior to issuing a final spent solvent wastes. Furthermore, 2. Description of Solvent Usage and determination. EPA requests comments cumene is a common additive to paint Resulting Waste on the appropriateness of the formulations and may be present at the a. Solvent Use and Questionnaire provisional numbers, and seeks any site as a result of the waste paints and Responses. In the RCRA 3007 additional data on the toxicity of painting sludges. Given the limited uses Prequestionnaire of Solvent Use, 37 cyclohexanol. of cumene as a solvent identified in the facilities reported the use of c. Waste Generation, Characterization, 3007 Survey, and the likelihood that cyclohexanol as a solvent, with a total and Management. Six facilities initially cumene was present as an ingredient in 1992 use of greater than 100 thousand reported a combined generation of paint wastes, EPA does not believe that kg. In the RCRA 3007 Questionnaire, six greater than 9 million kilograms of the damage cases are relevant to its facilities reported the use of residuals from the use of cyclohexanol listing decision. cyclohexanol in 1993, with a total of as a solvent. However, essentially all of greater than 1,000 kg and less than this volume was treatment residuals c. Conclusion. EPA believes that 20,000 kg (the exact volume used is reported by one facility. This facility cumene does not satisfy the criteria for confidential business information). The reported details for the treatment train listing in 40 CFR 261.11(a)(3). Agency removed a film manufacturer that led to a misleading volume as Therefore, EPA is proposing that wastes from further study because it was follows. Spent solvent (5,000 kg from the use of cumene as a solvent determined that the facility actually containing 11 kg of cyclohexanol) is should not be listed as hazardous waste uses cyclohexanone, a portion was also sent to an onsite incinerator; the under 40 CFR 261.31. Cumene has some found to be reported by a TSD, and scrubber water from this hazardous limited use as a solvent, however, data other firms responding to the waste incinerator (320 million kg indicate that the concentration of prequestionnaire in 1992 discontinued containing no solvent) is then treated in cumene before its use as a solvent is or reduced use in 1993. a wastewater treatment system (as relatively low for the most prevalent According to data collected in the hazardous waste) to produce use, deinking. As discussed above, risk RCRA 3007 Questionnaire, the major biotreatment sludge (9 million kg bounding estimates indicate that solvent use of cyclohexanol is as an containing no solvent). After cumene spent solvent residuals are not extraction solvent in the production of incineration all subsequent treatment considered to pose a substantial risk or cyclohexane; however, the cyclohexanol residuals are expected to contain potential hazard to human health and used in this fashion was reported to be negligible amounts of cyclohexanol. the environment through the pathways recycled in the process. Therefore, Therefore, only the initial volume going assessed. Furthermore, essentially all of wastes generated arose primarily from to the incinerator contained the cumene in the solvent wastes smaller amounts of cyclohexanol used cyclohexanol, and this was the only generated are thermally treated as in specialized laboratory settings. volume from this treatment process that hazardous or recovered. Thus, these b. Physical/Chemical Properties and was considered further. The corrected residuals do not appear to be managed Toxicity. Cyclohexanol has a solubility volume of waste generated that in a manner that poses a threat to in water of 56,700 mg/L at 15°C, contained spent cyclohexanol is human health and the environment. indicating that it is highly soluble in actually 44,110 kg, consisting of 43,360 42344 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Proposed Rules kg of spent solvent (containing 16 kg of 750 kg of filter media as nonhazardous. and limited uses of cyclohexanol as a cyclohexanol), and 750 kg of filter Table 15 summarizes that volumes and solvent, EPA does not believe that other media reported to contain a ‘‘negligible’’ loadings estimated for cyclohexanol. wastes or management practices are concentration of cyclohexanol. Table 8 Nearly all of the cyclohexanol wastes likely to be significant. Therefore, to presents the waste volumes and were reported to be incinerated in a assess possible risks from management loadings of cyclohexanol for the hazardous waste BIF. One small of cyclohexanol wastes from solvent management practices reported. wastestream (750 kg) of filter media was use, EPA modeled combustion in a In 1993, 98.3 percent of the wastes reported to go to a landfill, however the boiler to account for incineration, and generated with spent cyclohexanol were concentration was negligible and storage in an open accumulation tank. treated as hazardous, and the remaining presumed zero. Given the specialized

TABLE 15.ÐWASTE STATISTICS FOR CYCLOHEXANOL

Number of Number of Total volume Total load- Management practice facilities streams (kg) ing (kg)

Landfill ...... 1 1 750 (1) Incineration ...... 4 5 43,360 16 1 Negligible.

3. Basis for Proposed No-List environment. The results of these central tendency risk analyses for these Determination analyses are shown in Table 16. scenarios. Using bounding assumptions, the The estimated high end risk a. Risk Assessment. The Agency Agency estimated that management of assessment with plausible performed risk bounding and high end cyclohexanol residuals in a boiler could risk estimates using the approaches result in an inhalation HQ of 7.2×10¥9. mismanagement of cyclohexanol wastes described earlier (see Section II.C) to Risk based on bounding assumptions for by on site accumulation in an obtain a hazard quotient (HQ) for each the other plausible mismanagement uncovered tank is an inhalation HQ of plausible mismanagement scenario. scenario (on site accumulation) 0.3. This result indicates minimal risk Where the HQ exceeds 1, exposure may exceeded an inhalation HQ of 1, and through the inhalation pathway for this pose a risk to human health and the EPA then conducted high end and scenario.

TABLE 16.ÐRISK ASSESSMENT RESULTS FOR CYCLOHEXANOL

Hazard quotient (HQ) Plausible mismanagement practice Central tendency Bounding High end

Nonwastewaters: • On Site Accumulation ...... 0.01 2 ...... 0.3 • Incineration ...... 7.2×10¥9 ...... All risks are direct inhalation. For a complete description of the risk assessment methodology and results, see the background document As- sessment of Risks from the Management of Used Solvents.

b. Environmental Damage Incidents. use of cyclohexanol as a solvent. The manufacture of 3,5-xylenol-3,3,5- Cyclohexanol has been detected at one residuals generated from the use of trimethylcyclohexanol and 3,3,5- Superfund site. The ROD database cyclohexanol as a solvent contain trimethyl-cyclohexamine; as a starting indicates that cyclohexanol has negligible levels of cyclohexanol and are material and/or emulsifier for contaminated the soil and ground water generally managed by thermal treatment insecticides, xylenol-formaldehyde at the site. The site was occupied by a as a hazardous waste. As discussed resins, disinfectants, and wood waste oil company for ten years, and it above, risk bounding estimates indicate preservatives; and in the synthesis of was contaminated by a wide variety of that cyclohexanol solvent residuals are vitamin E. Although isophorone may be chemicals. The ROD database does not not considered to pose a substantial risk used as a solvent for such purposes as specifically cite the uses of any of the or potential hazard to human health and commercial preparations of lacquers, cyclohexanol found at the site, and the environment during combustion or inks, vinyl resins, copolymers, coatings given the rare use of this chemical as a storage. and finishings, ink thinners, and solvent, EPA did not consider this L. Isophorone pesticides, and formulators of these damage case to be relevant to its products would be considered solvent 1. Industry Identification decision. users for the purposes of this study, the c. Conclusion. EPA believes that Production information from 1995 use of these products generally is not. cyclohexanol does not satisfy the shows 79.3 million kilograms were Users of these products may fall within criteria for listing in 40 CFR produced worldwide. However, only the scope of the industry study only if 261.11(a)(3). Therefore, EPA is one domestic manufacturer exists. The they use isophorone for cleaning or proposing that wastes from the use of non-solvent uses of isophorone include other solvent purposes. cyclohexanol as a solvent should not be use as a raw material in the production listed as hazardous waste under 40 CFR of isophorone-derived aliphatic 261.31. It appears there is very limited diisocyanates; as an intermediate in the Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Proposed Rules 42345

2. Description of Solvent Usage and water of 12,000 mg/L at 25°C, indicating primary use of isophorone as a diluent Resulting Waste that it is highly soluble in water. With for tank bottoms or coating processes, ° a. Solvent Use and Questionnaire a vapor pressure of 0.38 mm Hg at 20 C, wastewaters were not generated. The Responses. In the RCRA 3007 isophorone is volatile. The Henry’s Law solids generated were containers, rags × ¥6 3 Prequestionnaire of Solvent Use, 30 Constant of 6.2 10 atm-m mole and similar wastes contaminated with facilities reported a combined use of indicates that isophorone has a low to solvent. All isophorone residuals are greater than 0.3 million kilograms of moderate rate of evaporation from managed by some type of thermal isophorone. In the RCRA 3007 water. It has a Log Kow of 1.70 and it is treatment, either fuel blending, energy Questionnaire, six facilities reported a expected to have limited tendencies to recovery in a BIF, or incineration. total use of 0.24 million kilograms of sorb to soils and to bioaccumulate. Based upon reported waste volumes isophorone as a solvent in 1993. The Isophorone can biodegrade. and concentration of isophorone in the Isophorone is a suspected carcinogen largest user of isophorone used a solvent wastes, loadings of isophorone were by ingestion. Using an oral carcinogen mixture containing significantly less calculated. Table 17 presents the slope factor (CSF) of 9.5×10¥4 (mg/kg/ than 10 percent isophorone before use. volumes and loadings for each waste day)¥1, EPA calculated that exposure to Questionnaire respondents indicate management practice. that isophorone is used primarily as a a water concentration of 0.04 mg/L for diluent cleaning out tank bottoms, and 70 years would correspond to a cancer All of the wastes identified in the in coating processes. At an aluminum risk of 1×10¥6. EPA also estimated a questionnaire are managed as manufacturing facility, isophorone- provisional air HBL of 4×10¥3 mg/m3. hazardous. Most are hazardous because bearing paint and additional isophorone These health-based numbers are of a characteristic (usually ignitability) paint thinner enter the coil coating provisional and have not undergone or are listed based on other constituents operation. The coil is coated and waste external peer review. The Agency plans (e.g., F003). One waste volume paint/thinner is drummed prior to fuel to complete an external peer review of generated (705 thousand kg) was not blending. At a printing facility, these health-based numbers prior to hazardous, but was sent to a hazardous isophorone is mixed with ink and issuing a final determination. EPA waste BIF; this waste resulted from the screened onto the material to be printed. requests comments on the use of isophorone as a minor ingredient The printed material is dried. Waste ink appropriateness of the provisional in a diluent to thin heavy end residuals from the operation is drummed prior to numbers, and seeks any additional data from waste storage tanks to aid pumping off-site fuel blending. A pilot plant in on the toxicity of isophorone. the heavy ends to an on-site hazardous the chemical industry uses isophorone c. Waste Generation, Characterization, BIF. This stream also results from use of in the coating process, where it is added and Management. Six facilities reported isophorone at a concentration of 8.8 in the coating steps. Isophorone is used the generation of 0.75 million kilograms percent, which is just below the 10 in the manufacture of magnetic disks of residuals from the use of isophorone percent threshold EPA has used in the during the coating process, where as a solvent. The concentration of past to define solvent use in previous isophorone and other raw materials are isophorone in all these residuals ranges solvent listings (e.g., F001). However, mixed and coated onto the disk from 0.1 percent to 8 percent, except EPA included this waste in its substrate. one that was 45 percent. All wastes evaluation in order to more fully b. Physical/Chemical Properties and contained little or no water and were characterize potential risks from these Toxicity. Isophorone has a solubility in primarily organic liquids. Because of the wastes.

TABLE 17.ÐWASTE STATISTICS FOR ISOPHORONE

Number of Number of Total volume Total load- Management practice facilities streams (kg) ing (kg)

Incineration ...... 3 4 12,186 2,248 Boiler/Industrial Furnace ...... 1 2 * 705,180 * 9,873 Fuel Blending ...... 1 4 36,329 1,816 * Based on two wastestreams in 3007 Questionnaire derived from isophorone at a before use concentration of <10%.

Because of the limited uses of obtain a hazard quotient (HQ) for each The estimated high end risk isophorone as a solvent, EPA does not plausible mismanagement scenario. assessment with plausible believe that other wastes or management Where the HQ exceeds 1, exposure is mismanagement of isophorone wastes practices are likely to be significant. expected to pose a risk to human health by on site accumulation in an Therefore, to assess possible risks from and the environment. The results of uncovered tank resulted in an management of isophorone wastes from these analyses are shown in Table 18. inhalation HQ of 0.6. This result solvent use, EPA modeled combustion indicates minimal risk through the Using bounding assumptions, the in a boiler to account for thermal inhalation pathway for this scenario. Agency estimated that management of treatment (incineration, BIFs, and fuel Furthermore, this risk resulted from one isophorone residuals in a boiler could blending), and storage in an open large wastestream that was used to result in an inhalation HQ of 6.2×10¥8. accumulation tank. mobilize tank heavy ends for pumping Risk based on bounding assumptions for to an onsite hazardous waste BIF. The 3. Basis for Proposed No-List the other plausible mismanagement Determination resulting waste mixture was not scenario (on site accumulation) reported stored, and is likely pumped a. Risk Assessment. The Agency exceeded an inhalation HQ of 1, and directly to the BIF for combustion, performed risk bounding and high end EPA then conducted high end and therefore the scenario appears to be risk estimates using the approaches central tendency risk analyses for this unrealistic for this wastestream in any described earlier (see Section II.C) to scenario. case. 42346 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Proposed Rules

TABLE 18.ÐRISK ASSESSMENT RESULTS FOR ISOPHORONE

Hazard quotient (HQ) Plausible mismanagement practice Central tendency Bounding High end

Nonwastewaters: • On Site Accumulation ...... 0.01 14 ...... 0.6 • Incineration ...... 6.2×10¥8 ...... All risks are direct inhalation. For a complete description of the risk assessment methodology and results, see the background document As- sessment of Risks from the Management of Used Solvents.

b. Environmental Damage Incidents. should not be listed as hazardous waste however, these uses were not confirmed EPA investigated damage incidents at under 40 CFR 261.31. As discussed by the RCRA 3007 Questionnaire which isophorone was an identified above, risk bounding estimates indicate respondents. contaminant at the site. Based on a that isophorone solvent residuals are b. Physical/Chemical Properties and review of identified damage instances, not considered to pose a substantial risk Toxicity. 2-Methoxyethanol acetate is no single instance of damage was or potential hazard to human health and completely soluble in water. With a identified that could be tied to use of the environment through the inhalation vapor pressure of 1.2 mm Hg at 20°C, 2- isophorone as a solvent. Isophorone was pathway from burning. Furthermore, all methoxyethanol acetate is moderately identified as a contaminant at 17 sites reported residuals were treated as volatile. The Henry’s Law Constant is in the ROD database, however most of hazardous waste, and all were sent to 7.6×10¥7 atm-m3/mole, indicating that these sites arose from disposal practices thermal treatment. Thus, these residuals 2-methoxyethanol acetate has a low rate that occurred many years ago, prior to do not appear to be managed in a of evaporation from water. The Log Kow promulgation of the RCRA regulations. manner that poses a threat to human is ¥0.76, indicating that 2- Of the four facilities identified with health and the environment. methoxyethanol acetate has a low isophorone contamination that have tendency to sorb to soil organic matter M. 2-Methoxyethanol Acetate (2-MEA) operated since 1980, two were landfills, or to bioaccumulate. one a chemical waste storage and 1. Industry Identification 2-Methoxyethanol acetate is not classified as a carcinogen. EPA processing facility, and one a pesticide In 1992, 2-methoxyethanol acetate (2- manufacturing facility. All four of these estimated a provisional RfC of 0.02 mg/ MEA) production was estimated to be m3 and RfD of 5.7×10¥3 mg/kg/day. facilities have also been in operation for approximately 500,000 kilograms based many years before 1980, and all sites These correspond to provisional HBLs on 1988 data; however, the Chemical × ¥2 3 were contaminated with a myriad of of 2 10 mg/m for air, and 0.2 mg/L Manufacturers Association reported that for water. These health-based numbers chemicals. The maximum levels of production of this chemical ceased in isophorone found at the four sites were are provisional and have not undergone 1992. It was manufactured only by external peer review. The Agency plans 0.014 ppm in groundwater, 59 ppm in Union Carbide, under the trade name soil, and 0.13 ppm in surface water. For to complete an external peer review of Methyl Cellosolve Acetate. The use of 2- these health-based numbers prior to the landfills and chemical treatment methoxyethanol acetate is reported to be facility, the use of the isophorone prior issuing a final determination. EPA 82,000 kilograms. The demand for 2- requests comments on the to being found at the site is impossible methoxyethanol acetate has declined to ascertain. However, in the case of the appropriateness of the provisional and current U.S. use is limited to numbers, and seeks any additional data pesticide manufacturer, isophorone has specialty solvents. Based on industry been used as a starting ingredient in the on the toxicity of 2-methoxyethanol contacts, EPA believes that reported use acetate. production of pesticides and reflects consumption of stockpiled c. Waste Generation, Characterization, insecticides, and isophorone becomes chemicals. and Management. Three facilities part of the final product. This would not 2. Description of Solvent Usage and reported the generation of 16,329 be considered a solvent use. kilograms of 2-methoxyethanol acetate Resulting Waste The solvent uses identified for solvent residuals. These residuals isophorone are limited to only two a. Solvent Use and Questionnaire include 1,362 kg of debris (i.e., rags and industry sectors—agricultural chemicals Responses. In the RCRA 3007 containers), almost 15,000 kg of spent and coating/printing operations, and Prequestionnaire of Solvent Use, 16 solvents, and negligible amounts (<1 kg) none of these sectors were represented facilities reported the use of 2- of process sludges. For the most part, by facilities identified as having methoxyethanol acetate, with use of these residuals had very low (<1 isophorone contamination onsite. Given greater than 4,000 kilograms in 1992. In percent) concentrations of 2- that the current use of isophorone the RCRA 3007 Questionnaire, three methoxyethanol acetate in the residual. appears to be very limited, and facilities reported the use of 1,672 Only one residual from one facility had considering that all of the isophorone kilograms of 2-methoxyethanol acetate a higher concentration, in a range of 20– wastes generated in 1993 were treated as in 1993. 50 percent. Given the limited uses hazardous, EPA does not believe that Although limited in use, RCRA 3007 reported (diluent in coating and reaction these damage cases are relevant to the Questionnaire respondents indicated media), wastewaters are not expected listing determination. that 2-methoxyethanol acetate was used and were not reported. Waste c. Conclusion. EPA believes that as a diluent in a coating formulation. It management practices reported were isophorone does not satisfy the criteria also was used as a reaction or synthesis hazardous waste incineration and for listing in 40 CFR 261.11(a)(3). medium and for dissolution. energy recovery in a BIF. Therefore, EPA is proposing that wastes Literature searches indicate other past Table 19 presents the waste volumes from the use of isophorone as a solvent uses for 2-methoxyethanol acetate, and loadings of 2-methoxyethanol Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Proposed Rules 42347 acetate for each waste management these represent the only significant solvent use, EPA modeled combustion practice. All waste went to a hazardous management practices likely to be in a boiler to account for thermal waste incinerator or BIF. Given the found. Therefore, to assess possible treatment (incineration, BIFs), and limited and decreasing use of this risks from management of 2- storage in an open accumulation tank. chemical as a solvent, EPA believes that methoxyethanol acetate wastes from

TABLE 19.ÐWASTE STATISTICS FOR 2±METHOXYETHANOL ACETATE

Number of Number of Total volume Total loading Management practice facilities streams (kg) (kg)

Incineration ...... 1 3 16,322 963 Boiler/Industrial Furnace ...... 1 3 7 0.07

3. Basis for Proposed No-List and the fact that the small amount of research laboratory, without regard as to Determination waste currently generated is treated as whether the chemical was actually used a. Risk Assessment. The Agency hazardous waste, EPA does not believe as a solvent. The Agency contacted estimated risk using bounding this damage case provides any relevant facilities that reported apparent solvent assumptions as described earlier (see information on possible future use of larger quantities of these Section II.C) to obtain a risk for each management of the chemical. Therefore, chemicals to confirm whether or not plausible mismanagement scenario. EPA did not consider this damage case solvent use was actually taking place. In Where the HQ exceeds 1, exposure may information in the listing determination. all cases, the facility indicated that pose a risk to human health and the c. Conclusion. EPA believes that 2- solvent use was not occurring. environment. The results of these methoxyethanol acetate does not satisfy One of the chemicals, p- analyses are shown inTable 20. the criteria for listing in 40 CFR dichlorobenzene, is a solid at room Using risk bounding assumptions, the 261.11(a)(3). Therefore, EPA is temperature, which limits its utility as Agency estimated that management of 2- proposing that wastes from the use of 2- a solvent. The others are relatively methoxyethanol acetate residuals in a methoxyethanol acetate as a solvent reactive chemicals, which also makes boiler could result in an inhalation HQ should not be listed as hazardous waste them unsuitable for most solvent of 7.9x10¥13 and by onsite under 40 CFR 261.31. The use of 2- applications. All the chemicals may accumulation could result in an methoxyethanol acetate has been appear as an ingredient in product inhalation HQ of 0.4. These results declining in recent years and does not formulations, sometimes as a chemical indicate minimal risk through the appear to be manufactured impurity. The chemicals are most often inhalation pathway for these scenarios. domestically. Further, as discussed used as chemical reactants, pesticides, above, risk bounding estimates indicate sterilizing agents, or in other non- TABLE 20.ÐRISK ASSESSMENT RE- that 2-methoxyethanol spent solvent solvent uses. Information collected by SULTS FOR 2-METHOXYETHANOL AC- residuals are not considered to pose a EPA on each of the four chemicals is ETATE substantial risk or potential hazard to discussed below. human health and the environment 1. p-Dichlorobenzene Hazard through the pathways assessed. quotient Residuals from the use of 2- In 1993, U.S. production of p- Management practice (HQ) methoxyethanol acetate as a solvent dichlorobenzene was reported to be 35.9 million kilograms. Data from 1993 Bounding generally are managed as hazardous waste, typically being co-managed with indicate that most of the uses that could Nonwastewaters: other wastes already listed under 40 be identified were nonsolvent uses, • On Site Accumulation ...... 0.4 CFR Part 261. Thus, these residuals do including the production of • Incineration ...... 7.3×10¥13 not appear to be managed in a manner polyphenylene sulfide resin, in room All risks are direct inhalation. For a com- that poses a threat to human health and deodorant blocks, and in moth control plete description of the risk assessment meth- the environment. products. Industry studies indicate that odology and results, see the background doc- p-dichlorobenzene is used in very ument Assessment of Risks from the Manage- N. Chemicals With No Significant Use limited amounts as a solvent, but is ment of Used Solvents. as Solvents more typically found as a contaminant b. Environmental Damage Incidents. The following four chemicals were in o-dichlorobenzene, a listed solvent. 2–Methoxyethanol acetate has been not reported to have any significant uses In response to the RCRA § 3007 detected at one Superfund site. The as solvents: p-dichlorobenzene, benzyl Prequestionnaire of Solvent Use, the ROD database indicates that 2- chloride, epichlorohydrin, and ethylene total volume used by 26 methoxyethanol acetate has dibromide. On the 1993 Preliminary Prequestionnaire respondents for 1992 contaminated the soil, sediments, and Questionnaire, the major recipients was greater than 25,000 kilograms. ground water at the site, although no were hazardous waste incinerators, fuel Much of that ‘‘use’’ was reported by information on the concentration level blenders, or cement kilns who could not facilities that treat waste by incineration is available. Wastes deposited at the tell if the wastes containing these or in a cement kiln; its use was also municipal landfill site include drums of chemicals had, in fact, solvent use. erroneously reported due to the industrial waste that were buried either Except in once case (for p- presence of p-dichlorobenzene as an intact, punctured, or crushed. The ROD dichlorobenzene), all other use reported impurity in o-dichlorobenzene, a listed database does not specifically cite the as a solvent at any facility was below 10 solvent. Six facilities reported the use of uses of any of the wastes found at the kg per year. In these cases, reports of 6,288 kilograms of p-dichlorobenzene as site. Given the declining production and ‘‘solvent use’’ often turned out to be a solvent in response to the RCRA solvent use of 2-methoxyethanol acetate, quantities purchased for a facility’s § 3007 Questionnaire of Solvent Use. 42348 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Proposed Rules

The chemical was used in very small dichlorobenzene is already included in rates, the concentration of benzyl volumes (<2kg), except for one facility; the F002 solvent listing, therefore, these chloride in the waste solvents is this metal finishing facility reported wastes would already be regulated as negligible (<2kg). using p-dichlorobenzene in a solvent hazardous. Residuals from the use of p- Benzyl chloride has been identified as mixture to remove coatings from metal dichlorobenzene as a solvent generally a constituent of concern at one site parts in paint stripping tanks. However are very small volumes and the total investigated using CERCLA. However, the facility reported very little solvent in amount of p-dichlorobenzene in there are no sites that have undergone the resulting wastestreams; furthermore, residuals was only 17 kg in 1993. Given a ROD that identifies benzyl chloride as this facility indicated in its that wastes generated were either a constituent. The reason for the questionnaire response that it intended incinerated or sent to a POTW where it absence of benzyl chloride may be due to cease using p-dichlorobenzene and would be further diluted by large to its breakdown in the environment switch to a less toxic solvent. In general, volumes of other wastewater and prior to the ROD investigation. In no the data from most industries indicate treated, EPA believes that these wastes instances has the use of benzyl chloride that the chemical is primarily used in present no significant risks to human as a solvent been linked to research and laboratory applications. p- health and the environment. environmental damage in either the Dichlorobenzene has a melting point of ROD or HRS databases. 2. Benzyl Chloride 54°C and is a solid at room temperature, The Agency proposes that waste from limiting possible solvent uses. Data from 1993 indicate that U.S. the use of benzyl chloride as a solvent Wastes from p-dichlorobenzene use demand for benzyl chloride was 33.2 not be listed as hazardous waste under were generated as spent lab solvents, million kilograms. Nonsolvent 40 CFR 261.31. The use of benzyl laboratory wastewaters, spent solvents, applications account for nearly 100 chloride as a solvent appears to be very and as part of process wastewaters. Five percent of the reported uses of benzyl limited, having specialty applications in facilities reported that p- chloride. There were no industrial laboratories and no known industrial dichlorobenzene solvent waste was sent solvent uses of benzyl chloride solvent use. Residuals from the apparent to hazardous waste incineration or a identified during the industry study. use of benzyl chloride as a solvent BIF; this includes the facility that used Monsanto Corporation informed EPA in generally are very small volumes and most of the p-dichlorobenzene. One February 1993 that it is the only U.S. contain negligible concentrations of the facility reported discharging process producer of benzyl chloride and that solvent. The reactivity of the chemical wastewaters to a sanitary sewer benzyl chloride has no current solvent severely limits any solvent use. The (POTW). The total amount of p- uses. relatively rapid hydrolysis of benzyl dichlorobenzene reported in the Data from the RCRA 3007 chloride also indicates that the wastestreams generated from solvent Prequestionnaire reported the total substance will not persist long enough use in 1993 was <17 kg. volume used by the 12 Prequestionnaire to present significant risk even if No instance of environmental damage respondents was 21,809 kg in 1992. released to the environment in such relating to the use of p-dichlorobenzene Nearly all of that ‘‘use’’ was reported by small quantities. Furthermore, all as a solvent has been identified. This TSD facilities that accepted the residuals are managed as hazardous chemical is relatively common at constituent for thermal treatment. Five waste. Thus, EPA believes that there are CERCLA and other environmental facilities reported the 1993 use of 6.4 kg no residuals from solvent use that pose damage sites, but always appears with of benzyl chloride in response to the a threat to human health and the other contaminants, most often solvents RCRA 3007 Questionnaire of Solvent environment. classified as F001–F005 wastes. p- Use; the 1992 solvent use was reported 3. Epichlorohydrin Dichlorobenzene commonly occurs with to be 5.9 kg. Data for 1993 indicated that high concentrations of o- the total amount of benzyl chloride The estimated U.S. production and dichlorobenzene, probably due to the solvent waste generated by five facilities import of epichlorohydrin were 229.6 presence of the p-isomer as an impurity. in 1993 was 36,817 kg, and that these million kilograms, based on 1989 Other damage sites at which p- waste contained a total loading of 1.9 kg production data and 1993 import data. dichlorobenzene has been detected of benzyl chloride. Nonsolvent use of epichlorohydrin include former dye manufacturers; Benzyl chloride hydrolyzes in water includes use in the production of epoxy however, a nonsolvent use for p- and decomposes rapidly in the presence resins, glycerin, epichlorohydrin dichlorobenzene is as an intermediate in of most common metals (e.g., iron). The elastomers. a dye manufacturing process. Given the aqueous hydrolysis rate for benzyl In response to the prequestionnaire, extremely low solvent use identified for chloride corresponds to a half-life of 14 14 facilities indicated that p-dichlorobenzene, it is not likely that hours; this means that the concentration epichlorohydrin was used as a solvent any of the damage incidents identified of benzyl chloride in water would at their site. These facilities reported a were the result of mismanagement of p- decrease by a factor of 1000 in less than total use of more than 76,365 kilograms dichlorobenzene used as a solvent. 6 days. Due to its rapid transformation in 1992. Nearly all of these ‘‘uses’’ were The Agency proposes that wastes in environmental media, benzyl either misreported as solvent use (when from the use of p-dichlorobenzene as a chloride is not expected to be persistent epichlorohydrin was, in fact, a chemical solvent should not be listed as in moist soil or water. Given its high reactant) or the use was reported by a hazardous waste under 40 CFR 261.31. reactivity, it is highly unlikely that this facility that accepted the constituent for The use of p-dichlorobenzene as a chemical could find significant use as a thermal treatment or reclamation. Three solvent appears to be extremely limited, solvent. Of the facilities providing facilities reported use 3.4 kilograms of having specialty applications in information in the RCRA 3007 epichlorohydrin as a solvent in response laboratories and little or no industrial Questionnaire, each facility used 1 kg or to the RCRA section 3007 Questionnaire solvent use. p-Dichlorobenzene may be less of benzyl chloride. The benzyl of Solvent Use. The sharp decline present in wastes generated from use of chloride solvent waste generated in reflects the elimination of a treatment o-dichlorobenzene as a solvent, because 1993 were classified as spent solvents, facility from further study, since the use the para-isomer is an impurity in the o- and all were reported incinerated as of the epichlorohydrin as a solvent prior dichlorobenzene. However, o- hazardous. Given the extremely low use to treatment could not be confirmed. Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Proposed Rules 42349

Literature searches indicate that reported to be incinerated as hazardous linked to the use of EDB as a grain epichlorohydrin has been used as an waste. Thus, EPA believes that there are fumigant/pesticide. At a pesticide ingredient in natural and synthetic no residuals from solvent use that pose manufacturing facility EDB has been resins, gums, cellulose esters and ethers, a threat to human health and the detected in the soil in an area where paints, varnishes, nail enamels, environment. pesticide production wastes had been lacquers, and cement for celluloid. 4. Ethylene Dibromide dumped. EDB has also been detected at Finally, epichlorohydrin has been used a site that includes a grain storage by the textiles industry to modify the The estimated U.S. capacity for facility where EDB was used to fumigate ethylene dibromide production and carboxyl groups of wool, in the grain. None of the information on these import totals 61.6 million kilograms for preparation of fibers, and in dyeing sites indicates that ethylene dibromide fibers. 1993, based on 1981 production was used as a solvent in these Three facilities provided data in the capacity and 1993 import data. situations. In water ethylene dibromide section 3007 Questionnaire of Solvent However, production has been declining Use. One facility used only .001 kg in since 1974, and 1993 production was hydrolyses relatively rapidly; the half- 1993; the wastes generated (25 kg) were 11.3 million kg. The industry study life of this reaction is 5–10 days. classified as lab wastes and sent off-site confirms that ethylene dibromide has no The Agency proposes that waste from to a hazardous waste incinerator or to a significant use as a solvent. Nonsolvent the use of ethylene dibromide as a nonhazardous energy recovery facility. uses included use as a lead scavenger in solvent not be listed as hazardous waste The other two facilities, both gasoline, as an insect and soil fumigant, under 40 CFR 261.31. The use of pharmaceutical companies, used 1 kg and as an intermediate in the synthesis ethylene dibromide as a solvent, if it and 2.36 kg of epichlorohydrin, of dyes, pharmaceuticals, and vinyl occurs, appears to be very limited, respectively, in 1993. One of the two bromide. having specialty applications in According to industry data obtained pharmaceutical facilities reported the laboratories and no known industrial in the RCRA 3007 Preliminary generation of a total of 17,254 kg of solvent use. Residuals from the apparent spent solvent or lab waste, which was Questionnaire, 11 facilities used a total use of ethylene dibromide as a solvent sent off-site for hazardous waste of 127,760 kilograms of ethylene contain negligible concentrations of the incineration. The other facility dibromide in 1992. Only two facilities generated 5,000 kg of spent solvent or used more than 1,000 kg per year. In solvent. Furthermore, all wastes were lab waste, which was incinerated on-site response to the full RCRA 3007 reported to be incinerated as hazardous in a hazardous waste incinerator. These Questionnaire, three facilities reported waste. The reactivity of the chemical wastes contained epichlorohydrin in use of 14 kg of ethylene dibromide as a severely limits any solvent use. Thus, part per million concentrations. solvent in 1993. The apparent sharp EPA believes that there are no residuals Epichlorohydrin has not been decline reflects the elimination of a TSD from solvent use that pose a threat to identified as a constituent of concern at from further study, since the use of human health and the environment. any sites investigated using the HRS. In ethylene dibromide as a solvent prior to O. Relationship to RCRA Regulations addition, there are no sites that have treatment could not be confirmed by and Other Regulatory Programs undergone a ROD that identify questionnaire responses. EPA did not epichlorohydrin as a constituent. The find any evidence of significant solvent There are several recent regulations uses in industrial, rather than research reason for the absence of and ongoing rulemaking efforts that may settings. EPA believes that the facilities epichlorohydrin may be due to its affect the usage, generation, and breakdown in the environment prior to that reported using it as a solvent in the management of certain solvents being the ROD or HRS investigation. 3007 Survey probably used the chemical examined under the current judicially Epichlorohydrin hydrolyzes relatively in an undefined manner in a laboratory, rapidly in water with a half-life of 8.2 which may or may not include minor mandated listing determinations. Each days. In no instances has the use of use as a solvent. of these rules is briefly described below. epichlorohydrin as a solvent been Of the three facilities providing data Resource Conservation and Recovery linked to environmental damage in in the RCRA 3007 Questionnaire, a total Act Regulations either the ROD or HRS databases. of 34,197 kg of waste was generated, The Agency proposes that waste from from a total use of 14 kg. All this waste The Agency recently has published the use of epichlorohydrin as a solvent was classified as spent laboratory waste. universal treatment standards for not be listed as hazardous waste under According to the Questionnaire data, all several of the chemicals addressed in 40 CFR 261.31. The use of the wastes generated were sent to a today’s proposal (59 FR 47980, epichlorohydrin as a solvent, if it truly hazardous waste incineration facility, September 19, 1994). These standards occurs, appears to be limited to either on-site or off-site. While no exact establish consistent concentration limits specialty applications in laboratories non-CBI waste concentrations were for constituents that previously may and no known industrial solvent use. reported, given that only 14 kg of have been subject to inconsistent Residuals from the apparent use of ethylene dibromide was reported used, standards under various land disposal epichlorohydrin as a solvent generally the Agency believes that the wastes sent rulemakings. Under the final rule, are very small volumes and contain to incineration have very low (part per universal standards are established for negligible concentrations of the solvent. million range or lower) concentrations four of the 14 currently targeted solvents The reactivity of the chemical severely of ethylene dibromide. limits any solvent use. The relatively Ethylene dibromide (EDB) has been when found in nonwastewaters, and for rapid hydrolysis of epichlorohydrin also detected at two sites undergoing a ROD four of the 14 solvents in wastewaters. indicates that the substance is unlikely evaluation. The ROD database indicates Figure 2 presents the universal to persist long enough to present that EDB has contaminated soil, soil gas, treatment standards proposed for significant risk even if released to the and ground water at the two sites. solvents subject to the current listing environment in such small quantities. Records indicate that the source of the determination. Furthermore, all of the waste was contamination for the two sites can be 42350 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Proposed Rules

FIGURE 2.ÐPROPOSED UNIVERSAL TREATMENT STANDARDS FOR TARGET SOLVENTS

Proposed Solvent Proposed non- wastewater wastewater standard * standard **

Acetonitrile ...... 0.17 mg/l * p-dichlorobenzene (1,4-dichlorobenzene) ...... 6.0 mg/kg ...... 0.09 mg/l * Ethylene Dibromide (1,2±Dibromoethane) ...... 15.0 mg/kg ...... 0.028 mg/l * Methyl Chloride (Chloromethane) ...... 30.0 mg/kg ...... 0.19 mg/l * Pheno ...... l6.2 mg/kg ...... 0.039 mg/l * * Based on grab samples. ** ased on composite samples.

Under 40 CFR 268.7(a), a waste number of facilities reported that use of chemicals in amounts exceeding generator must test the waste or an these glycol ethers had been established thresholds must report, to extract thereof (or apply knowledge of discontinued at their site due to health EPA and designated state agencies, any the waste) to determine whether the concerns. Others reported that the use of releases of these chemicals to the waste is hazardous and restricted from these glycol ethers will be phased out in environment. The reported data land disposal under the LDR program. If the near future. comprise the Toxics Release Inventory the waste is restricted from land Clean Air Act Regulations (TRI). The chemicals in the TRI are disposal and does not meet the listed at 40 CFR 372.65, and include all applicable treatment standards set forth The Clean Air Act (CAA) but three (cyclohexanol, isophorone, in Part 268, the generator must notify Amendments of 1990 require EPA to and furfural) of the 14 solvents any facility receiving the waste of the expand the regulation of air toxics to addressed in today’s proposal. Under appropriate treatment standards. If a 189 substances over a 10-year period EPCRA, the quantity threshold for generator determines that a restricted (such substances are presumed to chemical use is 10,000 pounds per waste meets all applicable treatment warrant regulation as air toxics—the list calendar year. The reporting quantity standards, he/she must submit a notice may be modified by the Administrator). threshold for manufacturing, importing to facilities receiving the waste This statutory list of air toxics includes or processing is 25,000 pounds per year certifying that the waste meets all but two of the 14 solvents addressed (1989 and- thereafter). Although TRI applicable treatment standards. in today’s proposal. The two that are not release reporting does not have a direct Finally, regardless of the impact of the listed as presumed air toxics are impact on hazardous waste generation regulations discussed above, it is cyclohexanol and furfural. The CAA or management capacity, it is generally anticipated that a significant portion of amendments do not require that the air accepted that these reporting the regulated community will opt for toxics be regulated on a constituent- requirements create strong incentives recycling as a management technique specific basis. Rather, EPA is required to for facilities to reduce releases and alter for any solvents that may be listed as a identify categories of industrial facilities operating practices to reduce or result of this investigation. Recycling that emit substantial quantities of one or eliminate the use of specified chemicals. exemptions in the hazardous waste more air toxics. A list of the source Annual TRI reporting was initiated in regulations provide significant categories, as well as a schedule for 1988 (addressing releases during 1987) incentives for recycling wastes rather promulgation of hazardous air pollutant and is undergoing expansion. For than managing them through traditional regulations, is published at 58 FR 63952 example, a final rule published on (December 3, 1993). The Agency has means (See 40 CFR 261.2, 261.4, 261.6, November 30, 1994 (59 FR 61432) added identified 174 source categories and Part 266). 286 chemicals and chemical categories (including 8 area sources). The source to the TRI reporting inventory. Among Occupational Safety and Health categories include: pharmaceutical the chemicals added are cyclohexanol Administration Regulations production processes; agricultural and isophorone. One notable regulatory initiative is chemicals production; polymer and the Occupational Safety and Health resins production; production of Clean Water Act Regulations Administration (OSHA) examination of inorganic chemicals; production of the health impacts of glycol ethers. organic chemicals; and numerous The Agency currently is revising the OSHA has recently proposed miscellaneous processes, including effluent guidelines and standards for the amendments to its existing regulation semiconductor manufacturing. pharmaceutical manufacturing category. for occupational exposure to certain Categories of area sources include, for This work, which is being conducted glycol ethers, specifically 2- example, halogenated solvent cleaners. under a Consent Decree (NRDC v. methoxyethanol, 2-ethoxyethanol, and Such increased regulation of many of Browner, (D.D.C. 89–2980; January 31, their acetates (2-methoxyethanol the industries that use the 14 target 1992)), involves the review and revision acetate, 2-ethoxyethanol acetate) (58 FR solvents may prompt increased of the existing effluent guidelines and 15526; March 23, 1993). This proposed recapture and reuse of the constituent, will consider inclusion of limitations on rule will reduce the existing 8-hour or encourage the use of alternative toxic and non-conventional volatile time-weighted average (TWA) compounds. organic pollutants. A notice of proposed permissible exposure limit, as well as rulemaking was published on May 2, establish guidelines to achieve generally Emergency Planning and Community 1995. The Agency has also revised the lower exposure for employees to these Right-to-Know Act Regulations (EPCRA) effluent guidelines and standards chemicals. This proposal appears to Section 313 of EPCRA requires that applicable to the organic chemicals, have affected facility usage of these any facility with 10 or more employees plastics, and synthetic fibers industry glycol ethers. In response to the in SIC codes 20–39 that manufactures, (OCPSF) (58 FR 36872; July 9, 1993). Agency’s RCRA § 3007 inquiries, a processes, or otherwise uses specified These revisions add BAT and NSPS Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Proposed Rules 42351 standards for 19 additional constituents amount of product in the wastestream, objectives. Simple physical audits of (including p-dichlorobenzene, methyl while others may prevent the creation of current waste generation and in-plant chloride, and phenol) and pretreatment the waste altogether. EPA acknowledges management practices for the wastes standards for 11 of these 19 pollutants that some of these practices/equipment also can yield positive results. These (including p-dichlorobenzene and may lead to media transfers or increased audits often turn up simple methyl chloride). energy use. This information is nonengineering practices that can be The Agency also has developed presented for general information, and implemented successfully. effluent guidelines and standards for the is not being proposed as a regulatory VI. State Authority pesticide chemicals category. This work requirement. Production practices (also being conducted under the NRDC include: A. Applicability of Rule in Authorized Consent Decree) limits the discharge of • Triple-rinsing raw material States pollutants into U.S. waters and POTWs shipping containers and returning the from new and existing facilities that Because this proposal would not rinsate directly to the reactor; change the Federal program, it would manufacture pesticide active • Scheduling production to minimize not affect authorized State programs. ingredients. A final rule was published changeover cleanouts; However, the relevant State on September 28, 1993 (58 FR 50638), • Segregating equipment by authorization provisions are as follows. which included standards for p- individual product or product Under section 3006 of RCRA, EPA dichlorobenzene and phenol, two ‘‘families;’’ may authorize qualified States to constituents addressed by the solvents • Packaging products directly out of administer and enforce the RCRA listing investigation. EPA is also reactors; completing effluent standards for • Steam stripping wastewaters to program within the State. (See 40 CFR facilities that formulate, package, and/or recovery reactants or solvents for reuse; Part 271 for the standards and repackage pesticide active ingredients • Using raw material drums for requirements for authorization.) into final products. EPA expects to packaging final products; and Following authorization, EPA retains complete this rule by September 30, • Dedicating equipment for hard to enforcement authority under sections 1996. clean products. 3007, 3008, 3013, and 7003 of RCRA, As noted in the discussion of other Housekeeping practices include: although authorized States have primary rules above, these new and revised • Performing preventive maintenance enforcement responsibility. effluent standards may result in the on all valves, fittings, and pumps; Before the Hazardous and Solid Waste generation of wastes already regulated • Promptly correcting any leaky Amendments of 1984 (HSWA) amended under the CWA and/or may encourage valves and fittings; RCRA, a State with final authorization the recycling or reduction of CWA- • Placing drip pans under valves and administered its hazardous waste regulated constituents. It is noteworthy fitting to contain leaks; and program entirely in lieu of the Federal that, although not imposed as part of • Cleaning up spills or leaks in bulk program in that State. The Federal these rulemakings, the Agency routinely containment areas to prevent requirements no longer applied in the evaluates zero discharge effluent contamination of storm or wash wasters. authorized State, and EPA could not standards (usually based on recycling) Equipment promoting waste issue permits for any facilities located in as an option for new sources. minimization by reducing or the State with permitting authorization. eliminating waste generation include: When new, more stringent Federal III. Waste Minimization • Low-volume/high-pressure hoses requirements were promulgated or In the Pollution Prevention Act of for cleaning; enacted, the State was obligated to enact 1990 (42 U.S.C. 13101 et seq., P.L. 101– • Drum triple-rinsing stations; equivalent authority within specified 508, November 5, 1990), Congress • Reactor scrubber systems designed time-frames. New Federal requirements declared pollution prevention to be a to return captured reactants to the next did not take effect in an authorized State national policy of the United States. The batch rather than to disposal; until the State adopted the requirements act declares that pollution should be • Material storage tanks with inert as State law. prevented or reduced at the source liners to prevent contamination of water By contrast, under section 3006(g) of whenever feasible; pollution that cannot blankets with contaminants which RCRA, 42 U.S.C. 6926(g), new be prevented should be recycled or would prohibit its use in the process; requirements and prohibitions imposed reused; pollution that cannot be and by the HSWA (including the hazardous prevented/reduced or recycled should • Enclosed automated product waste listings proposed in this notice) be treated in an environmentally safe handling equipment to eliminate take effect in authorized States at the manner wherever feasible; and disposal manual product packaging. same time that they take effect in non- or release into the environment should Waste minimization measures can be authorized States. EPA is directed to be chosen only as a last resort, and tailored to the needs of individual implement those requirements and should be done in an environmentally industries, processes, and firms. This prohibitions in authorized States, safe manner. This section provides a approach may make it possible to including the issuance of permits, until general discussion of some generic achieve greater pollution reduction with the State is granted authorization to do pollution prevention and waste less cost and disruption to the firm. so. While States must still adopt HSWA- minimization techniques that facilities Defined process control and good related provisions as State law to retain may wish to explore. housekeeping practices often can result final authorization, the Federal HSWA Waste minimization practices fall into in significant waste volume or toxicity requirements apply in authorized States three general groups: change in reduction. Evaluations of existing in the interim. production practices, housekeeping processes also may point out the need practices, and practices that employ the for more complex engineering B. Effect on State Authorizations use of equipment that by design approaches (e.g., waste reuse, secondary Because any regulations that EPA promote waste minimization. Some of processing of distillation bottoms, and might propose (with the exception of these practices/equipment listed below use of vacuum pumps instead of steam the actions proposed under CERCLA conserve water, others reduce the jets) to achieve waste minimization authority) would be promulgated 42352 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Proposed Rules pursuant to the HSWA, a State as any solid waste that exhibits one or used as secondary adjustment criteria. submitting a program modification is more of the hazardous waste These natural degradative processes are able to apply to receive either interim or characteristics, are also hazardous biodegradation, hydrolysis, and final authorization under section substances under Section 101(14) of the photolysis (BHP). If a hazardous 3006(g)(2) or 3006(b), respectively, on Comprehensive Environmental substance, when released into the the basis of requirements that are Response, Compensation, and Liability environment, degrades relatively substantially equivalent or equivalent to Act (CERCLA) of 1980, as amended. rapidly to a less hazardous form by one EPA’s requirements. The procedures Hazardous substances are listed in Table or more of the BHP processes, its RQ, as and schedule for State program 302.4 at 40 CFR 302.4, along with their determined by the primary RQ modifications under 3006(b) are respective reportable quantities (RQs). adjustment criteria, is generally raised described in 40 CFR 271.21. It should be Because EPA is not proposing to list any one level. This adjustment is made noted that all HSWA interim wastes, the Agency is not proposing because the relative potential for harm authorizations are currently scheduled changes to Table 302.4. to public health or welfare or the to expire on January 1, 2003 (see 57 FR Under CERCLA 103(a), the person in environment posed by the release of 60129, February 18, 1992). charge of a vessel or facility from which such a substance is reduced by these Section 271.21(e)(2) of EPA’s State a hazardous substance has been released degradative processes. Conversely, if a authorization regulations (40 CFR Part in a quantity that equals or exceeds its hazardous substance degrades to a more 271) requires that states with final RQ must immediately notify the hazardous form after its release, the authorization modify their programs to National Response Center of the release original substance is assigned an RQ reflect federal program changes and as soon as that person has knowledge of equal to the RQ for the reaction product. submit the modifications to EPA for the release. In addition to this reporting The downward adjustment is approval. The deadline by which the requirement under CERCLA, Section appropriate because the hazard posed States must modify their programs to 304 of the Emergency Planning and by the release of the original substance adopt a final rule will be determined by Community Right-To-Know Act is increased if it degrades to a more the date of promulgation of a final rule (EPCRA) requires owners or operators of hazardous form. in accordance with section 271.21(e)(2). certain facilities to report the release of The methodology summarized above If any HSWA regulations are adopted in a hazardous substance to State and local is applied to adjust the RQs of the final rule, Table 1 at 40 CFR 271.1 authorities. EPCRA Section 304 individual hazardous substances. An would be amended accordingly. Once notification must be given to the additional process applies to RCRA EPA approves the modification, the community emergency coordinator of waste streams that contain individual State requirements become RCRA the local emergency planning committee hazardous substances as constituents. In Subtitle C requirements. (LEPC) for each area likely to be affected the August 14, 1989 Federal Register States with authorized RCRA by the release, and to the State (54 FR 33440), the Agency stated that, programs already may have regulations emergency response commission (SERC) in assigning an RQ to a waste stream, similar to those EPA may issue. These of any State likely to be affected by the the Agency determines the RQ for each State regulations have not been assessed release. waste stream constituent and then against the Federal regulations being Under Section 102(b) of CERCLA, all assigns the lowest of these constituent proposed to determine whether they hazardous wastes are assigned a RQs to the waste stream itself. meet the tests for authorization. Thus, a statutory RQ of one pound unless and State would not be authorized to until adjusted by regulation. The VI. Regulatory Impacts implement any such regulations as Agency’s methodology for adjusting RQs A. Executive Order 12866 RCRA requirements until State program of individual hazardous substances modifications are submitted to EPA and begins with an evaluation of the Under Executive Order 12866 (58 FR approved, pursuant to 40 CFR 271.21. intrinsic physical, chemical, and 51735; October 4, 1993), the Agency Of course, States with existing toxicological properties of each must determine whether a new regulations that are more stringent than hazardous substance. The intrinsic regulation is a ‘‘significant regulatory or broader in scope than current Federal properties examined, called ‘‘primary action’’ and, therefore, subject to the regulations may continue to administer criteria,’’ are aquatic toxicity, requirements of the Executive Order and and enforce their regulations as a matter mammalian toxicity (oral, dermal, and to review by the Office of Management of State law. inhalation), ignitability, reactivity, and Budget. The E.O. defines It should be noted that authorized chronic toxicity, and potential ‘‘significant regulatory action’’ as one States are required to modify their carcinogenicity. Generally, for each that is likely to result in a rule that may: programs only when EPA promulgates intrinsic property, the Agency ranks (1) Have an annual effect on the Federal standards that are more hazardous substances on a scale, economy of $100 million or more or stringent or broader in scope than associating a specific range of values on adversely affect, in a material way, the existing Federal standards. Section 3009 each scale with an RQ of 1, 10, 100, economy, a sector of the economy, of RCRA allows States to impose 1,000, or 5,000 pounds. The data for productivity, competition, jobs, the standards more stringent than those in each hazardous substance are evaluated environment, public health or safety, or the Federal program. For those Federal using various primary criteria; each State, local, or tribal governments or program changes that are less stringent hazardous substance may receive communities; or reduce the scope of the Federal several tentative RQ values based on its (2) Create a serious inconsistency or program, States are not required to particular intrinsic properties. The otherwise interfere with an action taken modify their programs. See 40 CFR lowest of the tentative RQs becomes the or planned by another agency; 271.1(i). ‘‘primary criteria RQ’’ for that (3) Materially alter the budgetary substance. impact of entitlements, grants, user fees, V. CERCLA Designation and Reportable After the primary criteria RQs are or loan programs, or the rights and Quantities assigned, substances are further obligations of recipients thereof; or All RCRA hazardous wastes listed in evaluated for their susceptibility to (4) Raise novel legal or policy issues 40 CFR 261.31 through 261.33, as well certain degradative processes, which are arising out of legal mandates, the Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Proposed Rules 42353

President’s priorities, or the principles VIII. Regulatory Flexibility Act apply when they are inconsistent with set forth in the Executive Order. Pursuant to the Regulatory Flexibility applicable law. Moreover, section 205 The Agency has analyzed the costs Act of 1980, 5 U.S.C. 601 et seq., allows EPA to adopt an alternative other associated with this proposal, which are whenever an agency publishes a notice than the least costly, most cost-effective discussed in the following section, and of rulemaking, it must prepare and make or least burdensome alternative if the has determined that this proposed rule available for public comment a Administrator publishes with the final is not a significant regulatory action. Regulatory Flexibility Analysis (RFA) rule an explanation why that alternative Because the Agency is not proposing to that describes the effect of the rule on was not adopted. Before EPA establishes change any regulatory requirements for any regulatory requirements that may these chemicals, there are no costs to small entities (i.e., small businesses, small organizations, and small significantly or uniquely affect small industry associated with this proposal, governments, including tribal nor any economic impacts. governmental jurisdictions). This analysis is unnecessary, however, if the governments, it must have developed VII. Environmental Justice rule is estimated not to have a under section 203 of the UMRA a small government agency plan. The plan must Executive Order 12898 (59 FR 7629; significant economic impact on a substantial number of small entities. provide for notifying potentially February 16, 1994) requires Federal affected small governments, enabling agencies to identify and address, as According to EPA’s guidelines for conducting an RFA, if over 20 percent officials of affected small governments appropriate, disproportionately high to have meaningful and timely input in and adverse human health and of the population of small entities is likely to experience financial distress the development of EPA regulatory environmental effects of their programs, proposals with significant Federal policies, rulemakings, and other based on the costs of the rule, then the Agency considers that the rule will have intergovernmental mandates, and activities, on minority populations and informing, educating, and advising low-income populations. The Order a significant impact on a substantial small governments on compliance with directs each Federal agency to develop number of small entities, and must the regulatory requirements. an agency-wide environmental justice perform an RFA. Because today’s strategy that will list agency programs, proposal would not change any Today’s rule contains no Federal policies, public participation processes, regulatory requirements, the Agency mandates (under the regulatory enforcement activities, and rulemakings estimates that this action will not provisions of Title II of the UMRA) for related to human health and significantly impact 20 percent of the State, local, or tribal governments or the environment that should be revised to, population of small entities. Therefore, private sector. at a minimum: (1) promote enforcement the Agency has not conducted an RFA XI. Compliance and Implementation of all human health and environmental for today’s proposed rule. statutes in areas with minority and low- Because no regulatory action is being IX. Paperwork Reduction Act income populations; (2) ensure greater proposed today, the Agency expects no public participation; (3) improve Today’s proposed rule does not change in regulatory status for research and data collection relating to contain any new information collection authorized and nonauthorized states. requirements subject to OMB review the health and environment of minority List of Subjects and low-income populations; and (4) under the Paperwork Reduction Act of identify differential patterns of natural 1980, 44 U.S.C. 3501 et seq. Because 40 CFR Part 261 resource consumption among minority there are no new information collection and low-income populations. requirements proposed in today’s rule, Environmental Protection, Hazardous Specifically, E.O. 12898 directs an Information Collection Request has Materials, Waste treatment and disposal, Federal agencies, in connection with the not been prepared. Recycling. development and implementation of X. Unfunded Mandates Reform Act 40 CFR Part 271 Agency strategies on environmental justice, to collect, maintain, and analyze Title II of the Unfunded Mandates Environmental protection, information on the race, national origin, Reform Act of 1995 (UMRA), P.L. 104– Administrative practice and procedure, income level, and other appropriate 4, establishes requirements for Federal Confidential business information, information for areas surrounding agencies to assess the effects of their Hazardous material transportation, facilities or sites expected to have a regulatory actions on State, local, and Hazardous waste, Indians—lands, substantial environmental, human tribal governments and the private Intergovernmental relations, Penalties, health, or economic impact on the sector. Under section 202 of the UMRA, Reporting and record keeping surrounding populations, when such EPA generally must prepare a written requirements, Water pollution control, facilities or sites are the subject of a statement, including a cost-benefit Water supply. substantial Federal environmental analysis, for proposed and final rules 40 CFR Part 302 administrative or judicial action. with ‘‘Federal mandates’’ that may Today’s proposal not to list any of the result in expenditures to State, local, Environmental Protection, Air target solvents as hazardous waste is and tribal governments, in the aggregate, pollution control, Chemicals, expected to have no impact on any or to the private sector, of $100 million Emergency Planning and Community minority or low-income populations. or more in any one year. Before Right-to-Know Act, Extremely EPA has evaluated risks to hypothetical promulgating an EPA rule for which a hazardous substances, Hazardous receptors that might live close to written statement is needed, section 205 chemicals, Hazardous materials facilities using these chemicals as of the UMRA generally requires EPA to transportation, Hazardous substances, solvents, and in all cases the Agency identify and consider a reasonable Hazardous wastes, Intergovernmental found no significant risks are likely to number of regulatory alternatives and relations, Natural resources, Pesticides any nearby population. Therefore, EPA adopt the least costly, most cost- and pests, Reporting and record keeping does not believe that any further effective or least burdensome alternative requirements, Superfund, Waste analysis is required under Executive that achieves the objectives of the rule. treatment and disposal, Water pollution Order 12898. The provisions of section 205 do not control, Water supply. 42354 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Proposed Rules

Dated: August 2, 1996. Carol M. Browner, Administrator. [FR Doc. 96–20592 Filed 8–13–96; 8:45 am] BILLING CODE 6560±50±P federal register August 14,1996 Wednesday (EDSS) Grants;Notice Development andSupportiveServices Public andIndianHousingEconomic Public andIndianHousing:NOFAfor Office oftheAssistantSecretaryfor Development Housing andUrban Department of Part III 42355 42356 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices

DEPARTMENT OF HOUSING AND Public Housing/Office of Native housing, the elderly, and persons with URBAN DEVELOPMENT American Programs with delegated disabilities to become self-sufficient and responsibilities over an applicant Public to live independently or to prevent [Docket No. FR±4021±N±01] Housing Agency/Indian Housing premature or unnecessary Office of the Assistant Secretary for Authority (See Appendix for listing), or institutionalization. Funding in this Public and Indian Housing; NOFA for by calling the HUD Resident Initiatives NOFA is limited to certain statutorily Public and Indian Housing Economic Clearinghouse toll free number 1–800– eligible persons and future NOFAs will Development and Supportive Services 955–2232. Telephone requests must address the other available uses of the (EDSS) Grants include your name, mailing address, or remaining funding. post office address (including zip code), The EDSS grant program is AGENCY: Office of the Assistant and should refer to document FR–4021– administered by the Department’s Office Secretary for Public and Indian N–01. This NOFA cannot be used as the of Community Relations and Housing, HUD. application. Involvement in the Office of Public and ACTION: Notice of Funding Availability. FOR FURTHER INFORMATION CONTACT: Indian Housing, with assistance from a Marcia Y. Martin, Office of Community network of Community Relations and SUMMARY: This NOFA announces a total Relations and Involvement (OCRI), or Involvement Specialists (CRIS) in of § 30.8 million in grant funds. A total Tracy Outlaw, Office of Native HUD’s Field Offices. of $53,000,000 was set-aside from the American Programs (ONAP), D. Definitions Community Development Block Grant Department of Housing and Urban (CDBG) appropriation for an economic Development, 451 Seventh Street, SW, (1) Supportive Services means new or development and supportive services Washington, DC 20410; telephone significantly expanded services program. This NOFA announces grants numbers (OCRI) (202) 708–4214; and essential to providing eligible residents to public housing agencies and Indian ONAP (202) 755–0088. Hearing-or- assistance to become economically self- housing authorities (collectively HAs) speech-impaired persons may contact sufficient, particularly families with that are in partnership with non-profit the Federal Information Relay Service children where the head of household or incorporated for-profit agencies to (1) on 1–800–877–8339 or 202–708–9300 would benefit from the receipt of provide economic development for information on the program. (With supportive services and is working, opportunities and supportive services to the exception of the ‘‘800’’ number, seeking work, or is preparing for work assist residents of public and Indian these are not toll free numbers.) by participating in job-training or housing to become economically self- educational programs. Supportive sufficient, particularly families with SUPPLEMENTARY INFORMATION: services may include: children where the head of household Paperwork Reduction Act Statement (a) Childcare, of a type that provides would benefit from the receipt of The information collection sufficient hours of operation and serves supportive services and is working, requirements contained in this notice appropriate ages as needed to facilitate seeking work, or is preparing for work have been submitted to the Office of parental access to education and job by participating in job-training or Management and Budget (OMB) for opportunities; educational programs, and (2) to review under the Paperwork Reduction (b) Employment training and provide supportive services to assist the Act of 1995 (44 U.S.C. 3501–3520). An counseling (e.g., job training (such as elderly and persons with disabilities to agency may not conduct or sponsor, and Step-Up programs), preparation and live independently or to prevent a person is not required to respond to, counseling, job search assistance, job premature or unnecessary a collection of information unless the development and placement, and institutionalization. The grants will be collection displays a valid control continued follow-up assistance after job up to three years in duration. number. The OMB control number, placement); Additionally, of the $53 million, $8 when assigned, will be announced by a (c) Computer skills training; million is set-aside for the Bridges to separate notice in the Federal Register. (d) Homeownership training and Work Demonstration Program, $9.2 counseling; million is set-aside for the Section 8 I. Purpose and Substantive Description (e) Education (e.g., remedial Family Self-Sufficiency (FSS) Program, A. Authority education, literacy training, assistance and $5 million is set-aside for Housing’s Omnibus Consolidated Rescissions in the attainment of certificates of high Neighborhood Network and Resident school equivalency, two-year college Initiatives programs. These set-asides and Appropriation Act of 1996 (Pub. L. 104–134, approved April 26, 1996). assistance, four-year college assistance, will be announced by separate notice. trade school assistance, youth The set-aside for the FSS Program was B. Allocation Amounts leadership skills and related activities already announced by notice of funding The maximum grant amount that a (activities may include peer leadership availability published in the Federal roles training for youth counselors, peer Register on July 26, 1996 (61 FR 39262). Housing Authority (HA) may receive under this grant program is $1,000,000. pressure reversal, life skills, goal In the body of this document is planning); information concerning the purpose of A HA may submit one application under the Economic Development and (f) Youth mentoring of a type that the NOFA, eligibility, available mobilizes a potential pool of role amounts, and application processing, Supportive Services grant category and/ or one application under the Supportive models to serve as mentors to public including how to apply and how housing youth. Mentor activities may selections will be made. Services grant category to assist the Elderly and/or Persons with Disabilities. include after-school tutoring, drug abuse DATES: Application kits will be available The maximum number of applications treatment, job counseling or mental September 3, 1996. The application that an HA may submit is two. health counseling. deadline will be 3:00 p.m., local time, (g) Transportation costs, as necessary on October 15, 1996. C. Overview and Policy to enable any participating family ADDRESSES: An application kit may be The purpose of this funding is to member to receive available services to obtained from the local HUD Office of assist residents of public and Indian commute to his or her training or Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices 42357 supportive services activities or place of requiring mobility devices). Each of the to tailor the services to the needs and employment; Activities of Daily Living noted above characteristics of eligible residents; (h) Personal welfare (e.g., family/ includes a requirement that a person (c) Monitoring and evaluating the parental development counseling, must be deficient in his or her ability to delivery, impact, effectiveness and parenting skills training for adult and perform at a specified minimal level outcomes of supportive services under teenage parents, substance/alcohol (e.g., to satisfy the eating ADL, must be this program; abuse treatment and counseling, and able to feed him/herself). The (d) Coordinating this program with self-development counseling, etc.); determination of whether a person is other self-sufficiency, education and (i) Supportive Health Care Services deficient in this minimal level of employment programs; (e.g., outreach and referral services); and performance must include consideration (e) Performing other duties and (j) Any other services and resources, of those services that will be performed functions that are appropriate to assist including case management, that are by a person’s spouse, relatives or other eligible public housing residents to determined to be appropriate in attendants to be provided by the become self-sufficient; assisting eligible residents. individual. For example, if a person (f) Performing other duties and (2) Supportive Services for the elderly requires assistance with cooking, functions to assist the elderly and and for persons with disabilities means preparing or serving food plus persons with disabilities remain new or significantly expanded services assistance in feeding him/herself, the independent, and to prevent premature determined to be minimally necessary individual would meet the minimal or unnecessary institutionalization. and essential to enable eligible residents performance level and thus satisfy the (g) Mobilizing other national and local to live independently and to prevent eating ADL, if a spouse, relative or public/private resources and premature or unnecessary attendant provides assistance with partnerships. institutionalization, that include: feeding the person. The Activities of (8) Congregate services means (a) Meal service adequate to meet Daily Living are relevant only with supportive services that are provided in nutritional need; regard to determination of a person’s a congregate setting at a conventional (b) Personal assistance (which may eligibility to receive services under the HA development for the elderly and for include, but is not limited to, aid given EDSS program. (See 24 CFR part 700, persons with disabilities. to eligible residents in grooming, Congregate Housing Services Program) (9) Elderly person means a person dressing, and other activities which (4) Economic Development activities who is at least 62 years of age. maintain personal appearance and means new or expanded activities (10) Person with disabilities means a hygiene); essential to facilitate economic uplift (c) Housekeeping aid; household composed of one or more and provide access to the skills and persons, at least one of whom is an (d) Transportation services; resources needed for self-development (e) Non-medical supervision, wellness adult who has a disability. A person and business development. Economic programs, preventive health screening, who: development activities may include: monitoring of medication consistent (a) Has a disability as defined in (a) Entrepreneurship Training section 223 of the Social Security Act, with State law; (literacy training, computer skills (f) Non-medical components of adult (b) Is determined, pursuant to training, business development day care; regulations issued by the Secretary, to planning). (g) Personal emergency response have a physical, mental, or emotional (b) Entrepreneurship Development impairment which (I) is expected to be systems and other requested supportive (entrepreneurship training curriculum, services essential for achieving and of long-continued and indefinite entrepreneurship courses) duration, (II) substantially impedes his maintaining independent living; and (c) Micro/Loan Fund. A strategy for or her ability to live independently, and (h) Any other services and resources, establishing a revolving micro loan (III) is of such a nature that such ability including case management, that are fund. A loan fund must be included as could be improved by more suitable determined to be appropriate in part of a comprehensive housing conditions, or assisting eligible residents. entrepreneurship training program. (3) Activity of Daily Living (ADL) (d) Developing credit unions. A (c) Has a developmental disability as means an activity regularly necessary strategy to establish onsite credit defined in section 102 of the for personal care and includes eating union(s) to provide financial and Developmental Disabilities Assistance (may need assistance with cooking, economic development initiatives to HA Bill of Rights Act. Such a term shall not preparing or serving food, but must be residents. The credit union shall exclude persons who have the disease of able to feed self); dressing (must be able support the normal financial acquired immunodeficiency syndrome to dress self, but may need occasional management needs of the community or any conditions arising from the assistance); bathing (may need (i.e., check cashing, savings, consumer etiologic agent for acquired assistance in getting in and out of the loans, micro-businesses and other immunodeficiency syndrome. shower or tub, but must be able to wash revolving loans). (11) Stipend means monetary self; grooming (may need assistance in (5) Eligible residents means residents assistance provided to eligible residents washing hair, but must be able to take of a participating HA, including the to minimally cover resident costs while care of personal appearance); getting in elderly and persons with disabilities. participating in the supportive services/ and out of bed and chairs, walking, (6) Secretary means the Secretary of economic development activities. going outdoors, using the toilet; and Housing and Urban Development. Pursuant to 24 CFR 913.106 and 950.102 household management activities (may (7) Service Coordinators means, for (for IHAs), stipends are excluded from need assistance in doing housework, purposes of this NOFA, any person who income for rent purposes. The stipend grocery shopping or laundry, or getting is responsible for: amount shall be determined by each to and from one location to another for (a) Assessing the training and HA. Stipends shall not be construed as activities such as going to the doctor supportive service needs of eligible salaries and should not be included as and shopping, but must be mobile. The residents; income for calculation of rents, and are mobility requirement does not exclude (b) Working with service providers to not subject to conflict of interest persons in wheelchairs or those coordinate the provision of services and requirements. 42358 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices

(12) Commitment means documented Community Action Agencies, (f) Other program costs. Costs that evidence in the form of a written Neighborhood Housing Services, include advertisement, training obligation (on appropriate letterhead) Universities, other State/Regional stipends, travel stipends (for program specifying: Associations, Labor Unions and participant travel costs); vehicle lease (a) The dollar amount and source of Churches. For-profit organizations may (to transport participants to appropriate funds or types of resources promised for include banking institutions. Activities services/training). The purchase of a the program, and their use in the under this NOFA may be provided by vehicle under this program is program; the HA and the partner agency directly prohibited. (b) The date of availability and or may be subcontracted to other local Each applicant must submit a duration of funds or other types of agencies/organizations. narrative budget, timetable, and list of resources; Eligible participants include residents milestones outlining the economic (c) The authority by which the of public and Indian housing, including development activities and supportive commitment is made (such as board the elderly and persons with services proposed for the three-year resolution, grant award notification); disabilities. period. Milestones shall include the (d) The signature of the appropriate To be eligible for supportive services targeted population to be served, executive officer authorized to commit under this NOFA, elderly individuals including the number of participants to the resources. must be deficient in one or more be served, types of services, dollar E. Eligibility Activities of Daily Living (ADL). amounts and the outcomes to be (2) Eligible Activities. Program funds (1) Eligible Applicants. Funding for achieved over the three-year period. may be used for the following activities: (4) Ineligible Costs. this program is limited to public and (a) The provision of economic (a) Payment of wages and/or salaries Indian housing authorities that evidence development activities and supportive to participants of supportive services a partnership with non-profit or services that are appropriate to assist and/or training programs, except that incorporated for-profit agencies for the eligible residents to become grant funds may be used to hire a purposes of providing economic economically self-sufficient, to continue resident(s) to coordinate/provide development and/or supportive services to live independently, to avoid services (i.e, service coordinators, activities that assist eligible participants premature or unnecessary counselors, etc.) and or to coordinate/ under this program to become self- institutionalization; but only if the HA provide training program activities; sufficient, to live independently, and to demonstrates: (b) Purchase or rental of land or avoid premature or unnecessary (i) Firm commitments of funding or buildings or any improvements to land institutionalization. The Department is services from other sources; or buildings; in full support of economic uplift and (ii) That the proposed activity is part (c) Building materials and the creation of opportunities that give of a comprehensive strategy that construction costs; and public and Indian housing residents, the promotes self-sufficiency and (d) The purchase of any vehicle(s) elderly and persons with disabilities independent living, and prevents (car, van, bus, etc.). access to the skills and resources that premature or unnecessary F. Other Program Requirements move them toward self-sufficiency, institutionalization. economic independence, and (b) The employment of service (1) Resident Involvement. The independent living and that are made coordinators. Department has a longstanding policy of available through partnerships and (3) Eligible Costs. Activities that may encouraging HAs to promote resident comprehensive strategies among HAs, be funded and carried out by an HA involvement, and to facilitate resident groups, and local public and include, but are not limited to the cooperative partnerships with residents private organizations. following: to achieve specific and mutual goals. Evidence of a partnership shall be in (a) Supportive services. Costs that Therefore, residents must be included in the form of a Memorandum of include appropriate services (see the planning and implementation of this Agreement/Understanding (MOA/MOU) Section I.D(1)–(2) of this NOFA); program. The HA shall develop a which outlines each partner’s Technical Assistance (T/A) Contractor process that assures that the duly responsibilities and commitment to fees; elected RC/RMC/RO representatives and provide funding or services to the (b) Economic development activities. residents are fully briefed and have an partnership and to the residents served Costs that include appropriate training opportunity to comment on the under this program. Non-profit agency program activities (see Section I.D(3) of proposed content of the HA’s partners may include Resident this NOFA); Micro-loan fund; Technical application in response to this NOFA. Management Corporations (RMCs)/ Assistance (T/A) Contractor fees; The HA shall give full consideration to Resident Councils (RCs)/Resident Developmental costs for establishing the comments and concerns of the Organizations (ROs) as well as City- credit unions (to include consulting and residents. The process shall include: wide and Jurisdiction-wide training costs by other financial (a) Informing the targeted residents Organizations (City-wide and institutions, banks, credit unions). regarding the preparation of the Jurisdiction-wide Organizations shall (c) Administrative costs. No more application, and providing for residents consist of members of RMCs/RCs/ROs than 15 percent (15%) of the total grant to assist in the development of the who reside in housing developments may be used for administrative costs. application, as appropriate. that are owned and operated by an HA Costs that include liability insurance (b) Once a draft application has been within the HA’s jurisdiction), Indian costs directly related to training, utility prepared, the HA shall make a copy Housing Authorities Resident costs (telephone, fax, light, gas), Postage, available for reading in the management Organizations (ROs), Area Agencies on Printing, Copier, Accounting, initial office; provide copies of the draft to any Aging, Local Offices on Aging, Agencies equipment purchase (i.e., desks, chairs, duly elected resident organization serving persons with disabilities, computer equipment, tools, etc.). representing the residents of the HA Independent Consultants, Technical (d) Service Coordinator(s)/Case involved; and provide adequate Assistance Providers, Community Manager(s) Salary. opportunity for comment by the Development Corporations (CDCs), (e) Home counseling assistance. residents of the development and their Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices 42359 representative organizations prior to signs placed at the targeted areas, and resident begins the first job acquired by making the application final. community organizations and public or the resident after completion of such (c) Provide to any duly elected private institutions operating within the program that is not funded by public resident organization representing the development area. The HA shall include housing assistance under the U.S. development a summary of the resident in its outreach and marketing efforts, Housing Act of 1937 (42 U.S.C. 1437 et comments and its response to them, and procedures to attract the least likely to seq.). If the resident is terminated from notify residents of the development(s) apply for this program, i.e., low-income employment without good cause, the that this summary and response are households headed by women, the exclusion shall end. available for reading in the management elderly and persons with disabilities; (c) Earnings and Benefits means the office. and incremental earnings and benefits (d) After HUD approval of a grant, (ii) Determine the qualifications of HA resulting from a qualifying employment notify residents of the development, and residents when they apply, either on program or subsequent job. any representative organizations of their own or on referral from any source, (5) Audit Findings and Equal approval of the grant; notify the and employ HA residents if their Opportunity Requirements. To be residents of the availability of the HUD qualifications are satisfactory and there eligible under this NOFA, a HA cannot approved implementation schedule in are openings. If the HA is unable to have unaddressed, outstanding the management office for reading; and employ residents determined to be Inspector General audit findings or fair develop a system to facilitate a regular qualified, those residents shall be listed housing and equal opportunity resident role in all aspects of program for the first available openings. monitoring review findings or Field implementation. (3) Resident Compensation. Residents Office management review findings (2) Training/Employment/Contracting employed to provide services funded relating to discriminatory housing of HA Residents. under this program or described in the practices that are unresolved. In (a) For IHAs, see § 950.175 of the application shall be paid at a rate not addition, the HA must be in compliance Indian Preference Rule. less than the highest of: with civil rights laws and equal (b) Section 3 of the Housing and (a) The minimum wage that would be opportunity requirements. A HA will be Urban Development Act of 1968 (12 applicable to the employees under the considered to be in compliance if: U.S.C. 1701u) (section 3) requires that Fair Labor Standards Act of 1938 (a) As a result of formal programs of direct financial assistance (FLSA), if section 6(a)(1) of the FLSA administrative proceedings, there are no administered by HUD provide, to the applied to the resident and if the outstanding findings of noncompliance greatest extent feasible, opportunities resident were not exempt under section with civil rights laws or the HA is for job training and employment to 13 of the FLSA; operating in compliance with a HUD- lower income residents in connection (b) The State or local minimum wage approved compliance agreement with projects in their neighborhoods. for the most nearly comparable covered designed to correct the area(s) of For purposes of training and employment; or noncompliance; employment, the recipient, contractors (c) The prevailing rate of pay for (b) There is no adjudication of a civil and subcontractors shall direct their persons employed in similar public rights violation in a civil action brought efforts to provide, to the greatest extent occupations by the same employer. against it by a private individual, or the feasible, training and employment (d) For IHAs, see 24 CFR 950.172 HA demonstrates that it is operating in opportunities generated from the (which pertains to the Davis-Bacon Act). compliance with a court order, or expenditure of section 3 covered (4) Treatment of Income. Annual implementing a HUD-approved tenant assistance to section 3 residents in the Income does not include the earnings selection and assignment plan or following priority: and benefits to any resident resulting compliance agreement, designed to (i) Residents of the housing from the participation in a program correct the area(s) of noncompliance; development or developments for which providing employment training and (c) There is no deferral of Federal the section 3 assistance is expended supportive services in accordance with funding based upon civil rights (category 1 residents); the Family Support Act of 1988, section violations; (ii) Residents of other housing 22 of the U.S. Housing Act of 1937 (42 (d) HUD has not deferred application developments managed by the HA that U.S.C. 1437 et seq.), or any comparable processing by HUD under Title VI of the is expending the section 3 covered Federal, State, or local law during the Civil Rights Act of 1964, the Attorney assistance (category 2 residents); exclusion period. For purposes of this General’s Guidelines (28 CFR 50.3) and (iii) Participants in HUD Youthbuild paragraph, the following definitions HUD’s Title VI regulations (24 CFR 1.8) programs being carried out in the apply: and procedures (HUD Handbook 8040.1) metropolitan area (or nonmetropolitan (a) Comparable Federal, State or local [PHAs only] or under Section 504 of the county) in which the section 3 covered law means a program providing Rehabilitation Act of 1973 and HUD assistance is expended (category 3 employment training and supportive regulations (24 CFR 8.57) [PHAs and residents); and (iv) other section 3 services that— IHAs]; residents. Therefore, at a minimum each (i) Is authorized by a Federal, State or (e) There is no pending civil rights HA and each of its contractors and local law; suit brought against the HA by the subcontractors receiving funds under (ii) Is funded by the Federal, State or Department of Justice; and this program shall, to the greatest extent local government; (f) There is no unresolved charge of feasible, employ HA residents to (iii) Is operated or administered by a discrimination against the HA issued by provide services. public agency; the Secretary under section 810(g) of the (c) For purposes of the requirements (iv) Has as its objective to assist Fair Housing Act, as implemented by 24 under section 3, to the greatest extent participants in acquiring employment CFR 103.400. feasible means that the HA shall: skills. (6) Additional Requirements. In (i) Attempt to recruit HA residents to (b) Exclusion period means the period addition, grantees must comply with serve as service coordinators, trainers, during which the resident participates following requirements: counselors, etc. from the appropriate in a program described in this section, (a) Ineligible contractors. The areas through local advertising media, plus 18 months from the date the provisions of 24 CFR part 24 relating to 42360 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices the employment, engagement of All PHA and the remaining IHA • Describes the efforts to provide job services, awarding of contracts, or applications will be placed in an overall development and job placement for funding of any contractors or nationwide ranking order and funded successful program participants subcontractors during any period of until all funds are exhausted. (specifying the number of jobs that will debarment, suspension, or placement in Applications for Economic be created). ineligibility status. Development and Supportive Services • Describes efforts to provide (b) Applicability of OMB Circulars. activities funds will be scored on the business development, business start-up The policies, guidelines, and following factors: and business operation for successful requirements of OMB Circular Nos. A– program participants. (1) Economic Development and 87, A–122 and A–133 with respect to • If applicable, describes the strategy Supportive Services the acceptance and use of assistance by for establishing a micro-loan fund for private non-profit organizations. (a) Evidence of Need and Proposal to business start-up funds as part of a (7) Reports. Each HA receiving a grant Address the Need [20 Points]. HUD will comprehensive training program. shall submit to HUD a semi-annual award up to 20 points based on • If applicable, describes the strategy progress report in a format prescribed by evidence of need for the supportive for establishing a credit union as part of HUD measuring performance and services by eligible residents and how a comprehensive training program. documenting progress in achieving the HA, and its partner agency, will • Describes how program milestones quantifiable program goals (participant meet the need, and maximize and success will be measured evaluation and assessment data and opportunities for self-sufficiency. (milestones shall include the number of other information, as needed) to (i) A high score (14–20 points) is participants to be served, types of determine the effectiveness of the EDSS achieved where the applicant provides services, and dollar amounts to be Program in achieving goals of economic a detailed assessment of eligible allocated over the three-year period. development, self-sufficiency, residents, clearly identifies specific • Proposes innovative and effective independent living and the prevention target areas of concern, and documents program strategies, and provides of premature or unnecessary results to be derived from resident reasonably achievable goals and institutionalization. participation in EDSS services. milestones for measuring performance (ii) A medium score (7–13 points) is G. Ranking Factors under the program over the three-year achieved where the applicant provides period. Each application for a grant award a general assessment of eligible (i) A high score (19–30) is received that is submitted in a timely manner, as residents and identifies target areas, but where the applicant: specified in the application kit, to the does not provide results to be derived • Documents through a MOA/MOU local HUD Field Office and that from resident participation in EDSS with its partner agency a firm otherwise meets the requirements of this services. commitment from the partner agency to NOFA, will be evaluated. For Public (iii) A low score (1–6 points) is provide funding or services for the Housing Authority applications achieved where the applicant merely entire three-year grant period. received under this program, Ranking mentions there is a need for services, • Designs a training program that: Factor C, HA Capability, will be but does not clearly address specific • Outlines an innovative method for reviewed and scored by the Field Office areas of concern. recruiting and sustaining eligible Secretary’s Representative. For Indian (b) Program Quality [30 Points]. HUD resident participation. Housing Authorities (IHAs) applications will award up to 30 points based on the • Outlines the training and placement received under this program, Ranking extent to which a HA: schedule and how the activities will Factor C, HA Capability, will be • Provides evidence of a firm prepare eligible residents for reviewed and scored by the Area ONAP commitment from its partner agency employment or entrepreneurial Administrator. Applications for ensuring that funding or services opportunities. Economic Development and Supportive identified will be provided for three • Details efforts to provide job Services must receive a minimum of 75 years following the receipt of funding development and job placement for points out of a maximum 100 to be under this program, and that the successful program participants eligible for funding. Applications for services are well designed to support (specifying the number and types of jobs Supportive Services to assist the elderly the residents’ self-sufficiency efforts. that will be created). and/or persons with disabilities must (Even if continued funding from this • Details efforts to provide business receive a minimum of 75 points out of source is no longer available). [For development, business start-up and a maximum 100 to be eligible for applicants proposing to develop credit business operation for successful funding. A HA should submit its unions the HA, and its partner, shall program participants (if applicable). application to the appropriate local evidence how the community financial • Outlines the strategy for HUD Public Housing Office/Office of institutions(s) will partner with the HA establishing a micro-loan fund for Native American Programs (See in establishing and supporting the HA business start-up funds as part of a Appendix to this NOFA). The local credit union(s) (i.e., written comprehensive training program (if Field Office will transfer all eligible commitments from banks to deposit applicable). applications to a review site for funds in the credit union(s), support of • Outlines the strategy for processing by a Grants Management Community Reinvestment Act)]. establishing a credit union as part of a Team. HUD will review and evaluate • Describes how eligible residents comprehensive training program (if the application as follows, according to will be recruited for a training program. applicable). whether the application seeks funds for • Describes the training and • Proposes an innovative and combination Economic Development placement activities and the effective program strategy, and provides and Supportive Services or for implementation schedule. achievable quantifiable goals and Supportive Services to assist the elderly • Describes the extent to which the milestones for measuring performance and/or persons with disabilities. Grants training activities will prepare eligible and success under the program. will be awarded to the four highest residents for employment or (ii) A medium score (8–18 points) is ranked IHA applications nationwide. entrepreneurial opportunities. received where the HA: Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices 42361

• Documents through a MOA/MOU • Outline a strategy for establishing a commitments shall be in the form of a with its partner agency a firm credit union as part of a comprehensive resolution or letter.) commitment from the partner agency to training program (if applicable). (i) A high score (14–20 points) is provide funding or services for less than • Propose a reasonable strategy or received where the applicant: the three-year grant period. achievable quantifiable goals or • Describes support by the residents • Designs a training program that: milestones for measuring performance and provides documentation that shows • Provides a general recruitment, and success under the program. strong support and involvement of the training and placement schedule. (c) HA Capability [25 Points]. HUD residents in the planning phases of • Outlines a general method for will award up to 25 points based on the application development; that the HA recruiting, but does not build in extent and evidence of success the HA, has sought resident input in identifying assurances for sustaining resident and its partner agency, have had in resident needs; and will continue their participation. carrying out other comparable involvement throughout the • Provides a general training and initiatives, and the extent of the implementation stages of the program; placement schedule and how the involvement of the agency in the and activities will prepare eligible residents development of the application and its • Provides a letter or resolution for employment or entrepreneurial commitment of assistance. The documenting its strong commitment to opportunities. commitment of the partner agency may employ residents to provide services, • Details efforts to provide job be demonstrated through evidence of and a narrative describing the specific development and job placement for intent to provide direct financial types of jobs that residents will be successful program participants, but assistance or other resources (i.e., in- employed to provide. does not commit to specific numbers kind services, training resources, (ii) A medium score (7–13 points) is and types of jobs that will be created. counseling, etc.). • received where the applicant: Provides a general description of (i) A high score (17–25 points) is • Provides documentation that efforts to provide business development, received where the applicant and its residents are in support of the program, business start-up and business operation partner agency demonstrate success in and a narrative that does not show their for successful program participants (if providing similar economic involvement in the application applicable). development and supportive services • development, but ensures that the Outlines a general strategy for initiatives and have clearly detailed residents’ role will be increased during establishing a micro-loan fund for how the initiatives were coordinated the implementation stages of the business start-up funds as part of a and complemented with other program; and comprehensive training program (if programs; and in addition to the MOA/ • Provides a letter or resolution of applicable). MOU, provide evidence of a strong and commitment to employ residents to • Outlines a general strategy for committed partnership that clearly provide services, but does not include a establishing a credit union as part of a identifies the partner agency’s narrative describing the specific types of comprehensive training program (if commitment of funding or services over jobs in which residents will be applicable). three years to the program. • Proposes a reasonable program, and employed. (ii) A medium score (8–16 points) is (iii) A low score (1–6 points) is provides achievable quantifiable goals received where the applicant and its received where the applicant: and milestones for measuring partner agency do not currently provide • Provides a narrative statement that performance and success under the similar initiatives to those proposed residents are in support of the program, program. under this application, but clearly (iii) A low score (1–7) is received but does not document resident support demonstrate how the initiatives where the applicant: or how the residents will be involved in • Documents through a MOA/MOU proposed will be coordinated and the planning or implementation stages complemented with other programs; of the program; and with its partner agency a firm • commitment from the partner agency to and in addition to the MOA/MOU, Provides a narrative that it will hire provide funding or services for up to provide evidence of the partner agency’s residents, but does not provide a letter one year. Does not: intent to commit funding or services for or resolution or commitment nor • Outline the method for recruiting less than three years to the program. describe the specific types of jobs in eligible residents, and the training and (iii) A low score (1–7 points) is which residents will be employed. placement schedule. received where it is unclear if the (e) Efficient Use of the Grant: Cost • Provide a training and placement applicant, and its partner agency, have Effectiveness of the Grant [5 points]. schedule and how the activities will any experience in providing similar HUD will award up to 5 points based on prepare eligible residents for initiatives, and the applicant does not the extent to which the proposed employment or entrepreneurial demonstrate how the proposed program will result in the lowest total opportunities. initiatives will be complemented with cost per unit in comparison to other • Detail efforts to provide job other programs; does not provide a applications received under EDSS. HUD development and job placement for MOA/MOU, but states that the partner is looking for a lower cost per unit successful program participants. Does agency will commit funding or services rather than a higher cost. Once not specify numbers and types of jobs for up to one year. applications are received the that will be created. (d) Resident Involvement [20 Points]. Department will place the proposed • Provide a description of efforts to The extent to which the HA amounts in a single list and utilize a provide business development, business demonstrates that it has partnered with threshold range scale to determine the start-up and business operation for residents in the planning phase for the score assignments. successful program participants (if EDSS program and will further include applicable). residents in the implementation phase. (2) Supportive Services to Assist the • Outline a strategy for establishing a In addition, the HA shall evidence the Elderly and/or Persons With Disabilities micro-loan fund for business start-up extent to which it will contract with or (a) Evidence of Need and Proposal to funds as part of a comprehensive employ residents to provide services. Address the Need [20 Points]. HUD will training program (if applicable). (Evidence of partnerships and award up to 20 points based on the 42362 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices evidence of need for the supportive • Documents through a MOA/MOU (ii) A medium score (8–16 points) is services by eligible residents and how with its partner agency a firm received where the applicant, and its the HA, and its partner agency, will commitment from the partner agency to partner agency do not currently provide meet the need, and maximize provide funding or services for less than similar initiatives to those proposed opportunities for independent living. the three year grant period. under this application, but clearly (i) A high score (14–20 points) is • Provides a letter of support rather demonstrate how the initiatives achieved where the applicant provides than a MOA/MOU from its partner proposed will be coordinated and a detailed assessment of eligible agency regarding a limited commitment complemented with other programs; residents, clearly identifies specific to provide services and/or other and in addition to the MOA/MOU, target areas of concern, and documents resources; and provide evidence of the partner agency’s results to be derived from resident • Provides a description of the intent to commit funding or services for participation in EDSS services. location of the targeted area, but the less than three years to the program. (ii) A medium score (7–13 points) is coordination and accessibility of (iii) A low score (1–7 points) is achieved where the applicant provides available services and other resources is received where it is unclear if the a general assessment of eligible limited or somewhat unclear; applicant, and its partner agency, have residents and identifies target areas, but • Proposes a reasonable program, and any experience in providing similar does not provide results to be derived provides achievable quantifiable goals initiatives, and the applicant does not from resident participation in EDSS and milestones for measuring demonstrate how the proposed services. performance and success under the initiatives will be complemented with (iii) A low score (1–6 points) is program. other programs; does not provide a achieved where the applicant merely (iii) A low score (1–7 points) is MOA/MOU, but states that the partner mentions there is a need for services, received where the applicant: agency will commit funding or services but does not clearly address specific • Documents through a MOA/MOU for up to one year. areas of concern. with its partner agency a firm (d) Resident Involvement [20 Points]. (b) Program Quality [30 Points]. HUD commitment from the partner agency to The extent to which the HA will award up to 30 points based on provide funding or services for up to demonstrates that it has partnered with evidence of firm commitments from the one year. residents in the planning phase for the HA and its partner agency that funding • Merely mentions that its partner EDSS program and will further include or services will be provided for three agency will commit services and/or residents in the implementation phase. years following the receipt of funding other resources to the program, but does In addition, the HA shall evidence the under this program, and the strategy for not provide a MOA/MOU or letters extent to which it will contract with or meeting the eligible residents’ needs indicating a commitment; employ residents to provide services. (even if continued funding from this (Evidence of partnerships and • Mentions the location of the source is no longer available). In commitments shall be in the form of a targeted area, but does not provide addition, the HA shall provide resolution or letter.) details regarding the coordination and reasonably quantifiable achievable goals (i) A high score (14–20 points) is accessibility of additional services and and milestones for measuring received where the applicant: resources; and performance under the program over the • Describes support by the residents • Proposes a reasonable strategy, but three-year period (milestones shall and provides documentation that shows the achievable quantifiable goals or include the number of participants to be strong support and involvement of the milestones for measuring performance served, types of services, and dollar residents in the planning phases of are unclear. amounts to be allocated over the three- application development; that the HA (c) HA Capability [25 Points]. HUD year period). has sought resident input in identifying (i) A high score (19–30 points) is will award up to 25 points based on the resident needs; and will continue their received where the applicant: extent and evidence of success the HA, involvement throughout the • Documents through a MOA/MOU and its partner agency, have had in implementation stages of the program; with its partner agency a firm carrying out other comparable and commitment from the partner agency to initiatives, and the extent of the • Provides a letter or resolution provide funding or services for the involvement of the agency in the documenting its strong commitment to entire three-year grant period; development of the application and its employ residents to provide services, • Provides letters from other commitment of assistance. The and a narrative describing the specific participating service providers outlining commitment of the partner agency shall types of jobs that residents will be a commitment to provide services and be demonstrated through evidence of employed to provide. other resources (i.e., direct financial, intent to provide direct financial (ii) A medium score (7–13 points) is staff, training, etc.) over the grant assistance or services. received where the applicant: period; (i) A high score (17–25) points) is • Provides documentation that • Provides a detailed and precise received where the applicant and its residents are in support of the program, description of the location of targeted partner agency demonstrate success in and a narrative that does not show their area, and the coordination and providing similar economic involvement in the application accessibility of additional services and development and supportive services development, but ensures that the resources; and initiatives and have clearly detailed residents’ role will be increased during • Proposes an innovative and how the initiatives were coordinated the implementation stages of the effective program strategy, and provides and complemented with other program; and reasonably achievable quantifiable goals programs; and in addition to the MOA/ • Provides a letter or resolution of and milestones for measuring MOU, provide evidence of a strong and commitment to employ residents to performance and success under the committed partnership that clearly provide services, but does not include a program over the three-year period. identifies the partner agency’s narrative describing the specific types of (ii) A medium score (8–18 points) is commitment of funding or services over jobs in which residents will be received where the applicant: three years to the program. employed. Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices 42363

(iii) A low score (1–6 points) is submission of their applications to (12) A description of how eligible received where the applicant: avoid any risk of loss of eligibility residents will be recruited for training • Provides a narrative statement that brought on by unanticipated delays or programs; and residents are in support of the program, other delivery-related problems. (13) A description of the strategy for but does not document resident support Facsimile and telegraphic applications establishing a micro-loan fund for or how the residents will be involved in are not authorized and shall not be business start-up funds as part of a the planning or implementation stages considered. comprehensive training program (if of the program; and applicable). III. Checklist of Application • Provides a narrative that it will hire Submission Requirements residents to employ residents, but does B. Applications for Supportive Services not provide a letter or resolution or The Application Kit will contain a to Assist the Elderly and/or Persons commitment nor describe the specific checklist of application submission With Disabilities Must Contain the types of jobs in which residents will be requirements to complete the Following Information employed. application process. (1) Name and address (or P.O. Box) of (e) Efficient Use of the Grant: Cost A. Applications for Economic the HA. Name and telephone number of Effectiveness of the Grant [5 points]. Development and Supportive Services contact person (in the event further HUD will award up to 5 points based on Activities Must Contain the Following information or clarification is needed the extent to which the proposed Information during the application process); program will result in the lowest total (2) SF–424A, Budget Information, cost per unit in comparison to other (1) Name and address (or P.O. Box) of Non-Construction Programs, and SF– applications received under EDSS. HUD the HA. Name and telephone number of 424B, Assurances, Non-Construction is looking for a lower cost per unit contact person (in the event further Programs; rather than a higher cost. Once information or clarification is needed (3) A budget, timetable and list of applications are received the during the application process); milestones proposed for the three-year Department will place the proposed (2) SF–424A, Budget Information, period. Milestones shall include the amounts in a single list and utilize a Non-Construction Programs, and SF– number of participants to be served, threshold range scale to determine the 424B, Assurances, Non-Construction types of services, and dollar amounts to score assignments. Programs; be allocated over the three-year period; (3) A budget, timetable and list of (4) A description of the need for II. Application Submission Process milestones proposed for the three-year supportive services by eligible residents, period. Milestones shall include the A. Application Kit and how the HA, and its partner, will number of participants to be served, meet the need (including innovative An application kit is required as the types of services, and dollar amounts to strategies); formal submission to apply for funding. be allocated over the three-year period; The kit includes information and (4) A description of how the proposed (5) A description of the resident guidance on preparation of a Plan and training activities will prepare eligible involvement in the planning and Budget for activities proposed by the residents for employment or implementation phases of the program; applicant. This process facilitates the entrepreneurial opportunities (including (6) A description of the services that execution of the grant for those selected innovative strategies); HA residents will be employed to to receive funding. An application may (5) A description of how training provide; and be obtained from the local HUD State/ program participants’ supportive (7) Evidence of a firm commitment Area Offices with delegated services needs will be met (including from one or more partners ensuring that responsibilities over an applying HA innovative strategies); funding or services will be provided for (See Appendix for listing), or by calling (6) A description of how program three years, and that the services HUD’s Resident Initiatives goals and milestones will be measured, proposed are well designed to support Clearinghouse toll-free number 1–800– and the baseline indicators against independent living and/or to prevent 955–2232. Requests for application kits which performance and success will be premature or unnecessary must include your name, mailing measured; institutionalization. address or P.O. Box number (including (7) A description of efforts to provide (8) A description of how program zip code), and should refer to document business development, business start-up goals and milestones will be measured, (FR–4021–N–01). Applications may be and business operation for successful and the baseline indicators against requested beginning [to be specified]. program participants; which performance and success will be (8) A description of the resident measured. B. Application Submissions involvement in the planning and IV. Corrections to Deficient The original and three copies of the implementation phases of the program; Applications application must be submitted. The (9) A description of the services that Appendix lists addresses of HUD State/ HA residents will be employed to After the submission deadline date, Area Offices that will accept the provide; HUD will screen each application to completed application. (10) Evidence of a firm commitment determine whether it is complete, The application must be physically from its partner agency ensuring that the consistent, and contains correct received by 3:00 pm, local time, on funding or services identified will be computations. If an application lacks October 15, 1996. This application provided for three years, and that the certain technical items, such as deadline is firm as to date and hour. In services proposed are well designed to certifications or assurances, or contains the interest of fairness to all competing support the residents’ self-sufficiency a technical error, such as an incorrect applicants, the Department will treat as efforts; signatory, HUD will notify the applicant ineligible for consideration any (11) A description of the efforts to that it has 14 calendar days from the application that is received after the provide job placement for successful date of HUD’s written notification to deadline. Applicants should take this program participants, specifying the cure the technical deficiency. If the practice into account and make early number of jobs that will be created; applicant fails to submit the missing 42364 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices material within the 14-day cure period, provide economic development confine their inquiries to the subject HUD will disqualify the application. opportunities and supportive services to areas permitted under 24 CFR part 4. This 14-day cure period applies only assist residents of public and Indian Applicants or employees who have to nonsubstantive deficiencies or errors. housing and other low-income families ethics related questions should contact Deficiencies capable of cure will involve and individuals to become economically the HUD Office of Ethics (202) 708– only items not necessary for HUD to self-sufficient, and, thus could benefit 3815. (This is not a toll-free number.) assess the merits of an application families significantly. For HUD employees who have specific against the ranking factors specified in D. Executive Order 12606, The program questions, such as whether this NOFA. Curable items shall include Family. The General Counsel, as particular subject matter can be missing signatures on required Designated Official under Executive discussed with persons outside HUD, Certification Assurances (i.e., Drug-Free Order 12606, The Family, has the employee should contact the Workplace, Non-Construction Programs, determined that this notice has potential appropriate Field Office Counsel, or Forms SF–424, 2880, etc.). Deficiencies for significant impact on family Headquarters counsel for the program to incapable of cure will render an formation, maintenance, and general which the question pertains. application ineligible, and the well-being. The purpose of this notice is Dated: August 8, 1996. application will be removed from the to provide economic development Michael B. Janis, review and scoring process. opportunities and supportive services to assist residents of public and Indian General Deputy, Assistant Secretary for Public V. Other Matters and Indian Housing. housing and other low-income families A. Other Federal Requirements. In and individuals to become economically Appendix—Names, Addresses and addition to the requirements already set self-sufficient. However, because the Telephone Numbers of the Local HUD forth in this NOFA, grantees must impact on families is beneficial, no Offices and Offices of Native American comply with the following further review is considered necessary. Programs Accepting Applications for requirements: E. Section 102 HUD Reform Act: the Economic Development and (1) Ineligible contractors. The Documentation and Public Access Supportive Services Grant Program provisions of 24 CFR part 24 relating to Requirements. HUD will ensure that New England the employment, engagement of documentation and other information services, awarding of contracts, or regarding each application submitted Connecticut State Office funding of any contractors or pursuant to this NOFA are sufficient to Attention: Director, Office of Public Housing, subcontractors during any period of indicate the basis upon which First Floor, 330 Main Street, Hartford, CT debarment, suspension, or placement in assistance was provided or denied. This 06106–1860, Telephone No. (203) 240– ineligibility status. material, including any letters of 4523 (2) Applicability of OMB Circulars. support, will be made available for Massachusetts State Office The policies, guidelines, and public inspection for a 5-year period Attention: Director, Office of Public Housing, requirements of OMB Circular Nos. A– beginning not less than 30 days after the Thomas P. O’Neill, Jr. Federal Building, 10 87, A–122 and A–133 with respect to award of the assistance. Material will be Causeway Street, Boston, MA 02222–1092, the acceptance and use of assistance by made available in accordance with the Telephone No. (617) 565–5634 private non-profit organizations. Freedom of Information Act (5 U.S.C. New Hampshire State Office B. Environmental Review. A Finding 552) and HUD’s implementing Attention: Director, Office of Public Housing, of No Significant Impact with respect to regulations at 24 CFR part 15. In Norris Cotton Federal Building, 275 the environment has been made in addition, HUD will include the Chestnut Street, Manchester, NH 03101– accordance with HUD regulations in 24 recipients of assistance pursuant to this 2487, Telephone No. (603) 666–7681 CFR part 50 that implement section NOFA in its Federal Register notice of Rhode Island State Office 102(2)(C) of the National Environmental all recipients of assistance awarded on Attention: Director, Office of Public Housing, Policy Act of 1969 (42 U.S.C. 4332). The a competitive basis. (See 24 CFR Sixth Floor, 10 Weybosset Street, Finding of No Significant Impact is 12.14(a) and 12.16(b), and the notice Providence, RI 02903–3234, Telephone No. available for public inspection and published in the Federal Register on (401) 528–5351 copying Monday through Friday during January 16, 1996, for further information New York/New Jersey regular business hours at the Office of on these requirements.) New Jersey State Office the Rules Docket Clerk, Office of F. Section 103 of the HUD Reform General Counsel, Room 10276, Act. HUD’s regulation implementing Attention: Director, Office of Public Housing, One Newark Center, Thirteenth Floor, Department of Housing and Urban section 103 of the Department of Newark, NJ 07102–5260, Telephone No. Development, 451 Seventh Street, S.W., Housing and Urban Development (202) 622–7900 Washington, D.C. 20410. Reform Act of 1989, codified as 24 CFR New York State Office C. Executive Order 12612, Federalism. part 4, applies to the funding The General Counsel, as the Designated competition announced today. The Attention: Director, Office of Public Housing, Official under section 6(a) of Executive requirements of the rule continue to 26 Federal Plaza New York, NY 10278– 0068, Telephone No. (212) 264–6500 Order 12612, Federalism, has apply until the announcement of the determined that the policies contained selection of successful applicants. HUD Buffalo Area Office in this notice will not have substantial employees involved in the review of Attention: Director, Office of Public Housing, direct effects on States or their political applications and in the making of Lafayette Court 465 Main Street, Buffalo, subdivisions, or the relationship funding decisions are limited by part 4 NY 14203–1780, Telephone No. (716) 846– between the Federal government and from providing advance information to 5755 the States, or on the distribution of any person (other than an authorized Mid-Atlantic power and responsibilities among the employee of HUD) concerning funding District of Columbia Office various levels of government. As a decisions, or from otherwise giving any Attention: Director, Office of Public Housing, result, the notice is not subject to review applicant an unfair competitive 820 First Street, NE, Washington, DC under the Order. This notice announces advantage. Persons who apply for 20002–4205, Telephone No. (202) 275– the availability of funds to HAs to assistance in this competition should 9200 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices 42365

Maryland State Office Nashville, TN 37228–1803, Telephone No. Louisiana State Office Attention: Director, Office of Public Housing, (615) 736–5213 Attention: Director, Office of Public Housing, City Crescent Building 5th Floor, 10 South Jacksonville Area Office Fisk Federal Building, 1661 Canal Street, Howard Street, Baltimore, MD 21201–2505, Attention: Director, Office of Public Housing, New Orleans, LA 70112–2887, Telephone Telephone No. (410) 962–2520 Southern Bell Tower Suite 2200, 301 West No. (504) 589–7200 Pennsylvania State Office Bay Street, Jacksonville, FL 32202–5121, Oklahoma State Office Attention: Director, Office of Public Housing, Telephone No. (904) 232–2626 Attention: Director, Office of Public Housing, 100 Penn Square East, The Wanamaker Knoxville Area Office 500 West Main Street, Oklahoma City, OK Building, 105 South Seventh Street, 73102, Telephone No. (405) 553–7559 Attention: Director, Office of Public Housing, Philadelphia, PA 19107–3380, Telephone John J. Duncan Federal Building, Third Texas State Office No. (215) 597–2560 Floor, 710 Locust Street, Knoxville, TN Attention: Director, Office of Public Housing, Virginia State Office 37902–2526, Telephone No. (615) 545– 1600 Throckmorton, Post Office Box 2905, Attention: Director, Office of Public Housing, 4384 Fort Worth, TX 76113–2905, Telephone The 3600 Centre 3600 West Broad Street, No. (817) 885–5401 Midwest P.O. Box 90331, Richmond, VA 23230– Houston Area Office 0331, Telephone No. (804) 278–4507 Illinois State Office Attention: Director, Office of Public Housing, West Virginia State Office Attention: Director, Office of Public Housing, Norfolk Tower, Suite 200, 2211 Norfolk, Ralph Metcalfe Federal Building, 77 West Attention: Director, Office of Public Housing, Houston, TX 77098–4096, Telephone No. Jackson Boulevard, Chicago, IL 60604– 405 Capitol Street, Charleston, WV 25301– (713) 834–3274 3507, Telephone No. (312) 353–5680 1795, Telephone No. (304) 347–7000 San Antonio Area Office Indiana State Office Pittsburgh Area Office Attention: Director, Office of Public Housing, Attention: Director, Office of Public Housing, Attention: Director, Office of Public Housing, Washington Square, 800 Dolorosa, San 412 Old Post Office Courthouse, 7th 151 North Delaware Street, Indianapolis, Antonio, TX 78207–4563, Telephone No. Avenue and Grant Street, Pittsburgh, PA IN 46204–2526, Telephone No. (317) 226– (210) 229–6800 15219–1906, Telephone No. (412) 644– 6303 Great Plains 6428 Michigan State Office Iowa State Office Southeast/Caribbean Attention: Director, Office of Public Housing, Patrick V. McNamara Federal Building, 477 Attention: Director, Office of Public Housing, Alabama State Office Michigan Avenue, Detroit, MI 48226–2592, Federal Building, Room 239, 210 Walnut Attention: Director, Office of Public Housing, Telephone No. (313) 226–7900 Street, Des Moines, IA 50309–2155, Telephone No. (515) 284–4512 Beacon Ridge Tower, Suite 300, 600 Minnesota State Office Beacon Parkway, West, Birmingham, AL Kansas/Missouri State Office 35209–3144, Telephone No. (205) 290– Attention: Director, Office of Public Housing, 7617 220 Second Street, South Minneapolis, MN Attention: Director, Office of Public Housing, 55401–2195, Telephone No. (612) 370– Gateway Tower II, Room 200, 400 State Caribbean Office 3000 Avenue, Kansas City, KS 66101–2406, Attention: Director, Office of Public Housing, Telephone No. (913) 551–5462 Ohio State Office New San Juan Office Building, 159 Carlos Nebraska State Office Chardon Avenue, San Juan, PR 00918– Attention: Director, Office of Public Housing, 1804, Telephone No. (809) 766–6121 200 North High Street, Columbus, OH Attention: Director, Office of Public Housing, 43215–2499, Telephone No. (614) 469– Executive Tower Centre, 10909 Mill Valley Georgia State Office 5737 Road, Omaha, NE 68154–3955, Telephone Attention: Director, Office of Public Housing, No. (402) 492–3100 Wisconsin State Office Richard B. Russell Federal Building, 75 St. Louis Area Office Spring Street, SW, Atlanta, GA 30303– Attention: Director, Office of Public Housing, 3388, Telephone No. (404) 331–5136 Suite 1380, Henry S. Reuss Federal Plaza, Attention: Director, Office of Public Housing, Robert A. Young Federal Building, Third Kentucky State Office 310 West Wisconsin Avenue, Milwaukee, WI 53203–2289, Telephone No. (414) 297– Floor, 1222 Spruce Street, St. Louis, MO Attention: Director, Office of Public Housing, 3214 63103–2836, Telephone No. (314) 539– 601 West Broadway, P.O. Box 1044, 6583 Louisville, KY 40201–1044, Telephone No. Cincinnati Area Office Rocky Mountains (502) 582–5251 Attention: Director, Office of Public Housing, Colorado State Office Mississippi State Office Room 9002, Federal Office Building, 550 main Street, Cincinnati, OH 45202–3253, Attention: Director, Office of Public Housing, Attention: Director, Office of Public Housing, Telephone No. (513) 684–2884 633–17th Street, Denver, CO 80202–3607, Doctor A.H. McCoy Federal Building, Suite Telephone No. (303) 672–5440 910, 100 West Capitol Street, Jackson, MS Cleveland Area Office 39269–1016, Telephone No. (601) 965– Attention: Director, Office of Public Housing, Pacific/Hawaii 5308 Renaissance Building Fifth Floor, 1350 Arizona State Office North Carolina State Office Euclid Avenue, Cleveland, OH 44115– 1815, Telephone No. (216) 522–4058 Attention: Director, Office of Public Housing, Attention: Director, Office of Public Housing, 2 Arizona Center, Suite 1600, 400 North Koger Building, 2306 West Meadowview Grand Rapids Area Office Fifth Street, Phoenix, AZ 85004–2361, Road, Greensboro, NC 27407–3707, Attention: Director, Office of Public Housing, Telephone No. (602) 379–4434 Telephone No. (910) 547–4001 Trade Center Building, 50 Louis, N.W., California State Office South Carolina State Office Grand Rapids, MI 49503–2648, Telephone No. (616) 456–2127 Attention: Director, Office of Public Housing, Attention: Director, Office of Public Housing, Phillip Burton Federal Building and U.S. Strom Thurmond Federal Building, 1835 Southeast Courthouse, 450 Golden Gate Avenue, P.O. Assembly Street, Columbia, SC 29201– Arkansas State Office Box 36003, San Francisco, CA 94102–3448, 2480, Telephone No. (803) 765–5592 Telephone No. (415) 556–4752 Attention: Director, Office of Public Housing, Tennessee State Office TCBY Tower, 425 West Capitol Avenue, Hawaii State Office Attention: Director, Office of Public Housing, Little Rock, AR 72201–3488, Telephone Attention: Director, Office of Public Housing, 251 Cumberland Bend Drive Suite 200, No. (501) 324–5931 Seven Waterfront Plaza, Suite 500, 500 Ala 42366 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices

Moana Boulevard, Honolulu, HI 96813– Office of Native American Program Offices Suite 1650, 400 North Fifth Street, Suite 4918, Telephone No. (808) 522–8175 Serves East of the River (including all of 1650, Phoenix, AZ 85004–2361, Telephone Los Angeles Area Office Minnesota) No. (602) 379–4156 or Attention: Director, Office of Public Housing, Eastern Woodlands Office of Native 1615 W. Olympic Boulevard, Los Angeles, American Programs Albuquerque Division of Native American CA 90015–3801, Telephone No. (213) 251– Attention: Administrator, Office of Native Programs 7122 American Programs, Mecalfe Federal Albuquerque Plaza, 201 3rd Street, Suite Building, 77 West Jackson Boulevard, Sacramento Area Office 1830, Albuquerque, NM 87102–3368, Chicago, IL 60604–3507, Telephone No. Telephone No. (505) 766–1372 Attention: Director, Office of Public Housing, (312) 353–1282 or 800–735–3239 or 777 12th Street, Suite 200, Sacramento, CA Serves: Louisiana, Missouri, Kansas, Office of Native American Programs, HUD 95814–1997, Telephone No. (916) 551– Oklahoma and Eastern Texas 1351 450 Golden Gate Avenue, 8th Floor, Box Southern Plains Office of Native American 36003, San Francisco, CA 94102–3448 Northwest/Alaska Programs Serves: Iowa, Washington, Idaho and Oregon Alaska State Office Attention: Administrator, Office of Native American Programs, 500 West Main Street, Attention: Director, Office of Public Housing, Northwest Office of Native American Suite 400, Oklahoma City, OK 73102, Programs University Plaza Building, Suite 401, 949 Telephone No. (405) 553–7525 Attention: Administrator, Office of Native East 36th Avenue, Anchorage, AK 99508– Serves: Colorado, Montana, The Dakotas, American Programs, 909 1st Avenue, Suite 4399, Telephone No. (907) 271–4170 Nebraska, and Wyoming Oregon State Office 300, Seattle, WA 98104–1000, Telephone Northern Plains Office of Native American No. (206) 220–5270 Attention: Director, Office of Public Housing, Programs Serves: Alaska 520 Southwest Sixth Avenue, Portland, OR Attention: Administrator, Office of Native 97204–1596, Telephone No. (503) 326– American Programs, First Interstate Tower Alaska Office of Native American Programs 2561 North, 633 17th Street, Denver, CO 80202– Attention: Administrator, Office of Native 3607, Telephone No. (303) 672–5462 Washington State Office American Programs, University Plaza Serves: California, Nevada, Arizona and New Attention: Director, Office of Public Housing, Building, 949 East 36th Avenue, Suite 401, Mexico Seattle Federal Office Building, Suite 200, Anchorage, AK 99508–4399, Telephone 909 1st Avenue, Seattle, WA 98104–1000, Southwest Office of Native American No. (907) 271–4633 Programs Telephone No. (206) 220–5101 [FR Doc. 96–20698 Filed 8–9–96; 12:50 pm] Attention: Administrator, Office of Native American Programs, Two Arizona Center, BILLING CODE 4210±33±P federal register August 14,1996 Wednesday Year 1997;Notices Applications forNewAwardsFiscal Grant ApplicationCompetitionand Readers fortheStudentSupportServices Inviting IndividualsToServeasField Education Department of Part IV 42367 42368 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices

DEPARTMENT OF EDUCATION Estimated Range of Awards: California 94117–1080, Janice Cook, $170,000–300,000. (415) 666–6476 Estimated Average Size of Award: [CFDA No.: 84.042] Tuesday, September 24, 1996, 9:00 $215,000. a.m.–4:00 p.m. Student Support Services Program; Estimated Number of Awards: 705– Notice Inviting Applications for New 750. University of Massachusetts, 100 Awards for Fiscal Year (FY) 1997 Note: The Department is not bound by any Morrisey Boulevard, Boston, of the estimates in this notice. Massachusetts 02125, Charles Diggs, Purpose of Program: Provides grants (617) 287–5870 to institutions of higher education for Project Period: Up to 60 months. projects offering support services to Applicable Regulations: (a) The Thursday, September 26, 1996, 9:00 low-income, first generation, or disabled Education Department General a.m.–4:00 p.m. college students. These support services Administrative Regulations (EDGAR) in should increase their retention and 34 CFR Parts 74, 75, 77, 79, 82, 85 and Fordham University, TRIO Program, graduation rates, facilitate their transfer 86; and (b) the regulations for this SMH 301, Bronx, New York 10458, from two-year to four-year colleges, and program in 34 CFR Part 646, as Elliott Palais, (718) 817–4821 foster an institutional climate published in the Federal Register on Friday, September 27, 1996, 9:00 a.m.– supportive of the success of low-income July 24, 1996 (61 FR 38534). 4:00 p.m. and first generation college students and Technical Assistance Workshops: The students with disabilities. The Student Department of Education will conduct University Center at Tulsa, Room 150, Support Services Program increases the twelve technical assistance workshops 700 N. Greenwood, Tulsa, OK 74106, number of disadvantaged students in to assist prospective applicants in Matthew Taylor, (214) 767–3811 the United States who successfully developing proposals for the Student Monday, September 30, 1996, 9:00 a.m.– complete a program of study at the Support Services Program. The 4:00 p.m. postsecondary level of education. technical assistance workshops will be Eligible Applicants: Institutions of held as follows: Saint Mary’s University, University higher education and combinations of Saturday, September 7, 1996, 1:00 p.m.– Center, Conference Room A, Camino institutions of higher education. 4:00 p.m. Santa Maria Street, San Antonio, Supplementary Information: Texas 78228–8500, Jackie Dansby- Grand Hyatt Hotel, 1000 H Street, N.W., Applicants must address the changes in Edwards, (210) 436–3206 the Student Support Services program Washington, DC, Julia Tower, (202) For Applications or Further included in the final regulations 347–7430 Information Contact: Virginia A. Mason, published in the Federal Register on Tuesday, September 17, 1996, 9:00 Division of Student Services, U.S. July 24, 1996 (61 FR 38534). In general, a.m.–4:00 p.m. Department of Education, 600 the grantee selection criteria have been Independence Avenue, S.W., The modified with particular emphasis on University of Chicago, Ida Noyes Hall, Portals Building, Suite 600D, the sections relevant to Need, Plan of 1212 E. 59th Street, Chicago, Illinois Washington, D.C. 20202–5249. Operation, Evaluation and Prior 60637, Terhonda Palacios, (312) 702– Telephone: (202) 708–4804 or by Experience. The final regulations will be 8288 Internet to [email protected]. Individuals included in the application package Metropolitan State College, Tivoli who use a telecommunications device made available by the Department. Union, Turnhall Room 250, 900 for the deaf (TDD) may call the Federal Deadline for Transmittal of Auraria Parkway, Denver, Colorado Information Relay Services (FIRS) at 1– Applications: October 29, 1996. 80217, Gloria Ortega, (303) 556–3484 800–877–8339 between 8 a.m. and 8 Deadline for Intergovernmental University of Hawaii/Manoa, Campus p.m., Eastern time, Monday through Review: December 30, 1996. Center Ballroom, 1755A Pope Road, Friday. Applications Available: August 28, Honolulu, Hawaii 96822–2337, 1996. Melvin Yoshimoto, (808) 956–8402 Information about the Department’s Available Funds: The Congress has Thursday, September 19, 1996, 9:00 funding opportunities, including copies not yet enacted a fiscal year 1997 a.m.–4:00 p.m. of application notices for discretionary appropriation for the Department of grant competitions, can be viewed on University of North Carolina/Charlotte, Education. However, the Department is the Department’s electronic bulletin Cone Center, Rm. 210, 9201 publishing this notice in order to give board (ED Board), telephone (202) 260– University City Boulevard, Charlotte, potential applicants adequate time to 9950; on the Internet Gopher Server (at North Carolina 28223–0001, Marcia prepare applications. The estimated gopher://gcs.ed.gov/); or on the World Willis, (704) 547–2851/2924 amount of funds available for this Wide Web (at http://gcs.ed.gov). Caribbean University, Hostos Building/ program is based in part on the However, the official application notice 4th Floor Conf. Rm., Rt. 167 Kilom President’s 1997 budget and in part on for a discretionary grant competition is Forest Hills, Bayamon, Puerto Rico the level of funding available for fiscal the notice published in the Federal 00960, Lillian Matos-Freyes, (809) year 1996. Register. 780–0070 x423 Note: Currently funded Student Support Authority: 20 U.S.C. 1070a-11 and 1070a. Services grantees with five year awards Friday, September 20, 1996, 9:00 a.m.– Dated: August 9, 1996. expiring August 31, 1998 must submit an 4:00 p.m. David A. Longanecker, application during this competition to be Seattle Central Community College, considered for a new award under the fiscal Assistant Secretary for Postsecondary year 1997 funding cycle. The project start 3212 Lecture Hall, 1701 Broadway, Education. date for new grants awarded to current five- Seattle, Washington 98122, Joan Ray, [FR Doc. 96–20750 Filed 8–13–96; 8:45 am] year grantees who are successful applicants (206) 587–5466 BILLING CODE 4000±01±P under this competition will be September 1, University of San Francisco, 2130 1998. Fulton Street, San Francisco, Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Notices 42369

DEPARTMENT OF EDUCATION of applications will take place in experience: (a) Counseling, mentoring, Washington, D.C. Each field reader will tutoring, or teaching, in programs for Office of Postsecondary Education; serve for a period of approximately 5 to disadvantaged students at the Notice Inviting Individuals To Serve as 10 days and receive compensation for postsecondary level; (b) planning and Field Readers for the Student Support certain travel expenses, a per diem designing other educational support Services Grant Application allowance, and an honorarium. Because programs on college campuses; (c) Competition of the standards (e.g. conflict of interest) designing, establishing, administering, and needs of the Department, some or coordinating educational programs at AGENCY: Department of Education. applicants, although otherwise the postsecondary level; and (d) SUMMARY: The Assistant Secretary for qualified, may not be selected to serve administering, teaching or counseling in Postsecondary Education invites as field readers. However, they will be an educational program for disabled interested individuals to apply to serve included in our data base for future students at the postsecondary level. as field readers evaluating grant consideration. FOR FURTHER INFORMATION CONTACT: applications submitted for funding for A potential field reader who is Virginia A. Mason, Division of Student fiscal year (FY) 1997 for the Student employed should include in his or her Services, U.S. Department of Education, Support Services Program. resume the name of the employer, the 600 Independence Avenue, S.W., The DATES: An individual interested in potential reader’s current position with Portals Building, Suite 600D, serving as a field reader should submit that employer, and the mailing address Washington, D.C. 20202–5249. his or her resume to the Division of of the employer. Telephone: (202) 708-4804 or by Student Services no later than PROGRAM DESCRIPTIONS AND FIELD internet to [email protected]. Individuals September 30, 1996 (see FOR FURTHER READER QUALIFICATIONS: The Student who use a telecommunications device INFORMATION CONTACT section of this Support Services Program awards grants for the deaf (TDD) may call the Federal notice). Because of the many activities to institutions of higher education for Information Relay Service (FIRS) at 1– involved with scheduling the projects that provide support services to 800–877–8339 between 8 a.m. and 8 competition, a delay in the receipt of a low-income, first generation, or disabled p.m., Eastern time, Monday through resume may preclude an individual college students to enhance their Friday. from being considered for service during academic skills, increase their retention FY 1997. and college graduation rates, facilitate Authority: 20 U.S.C. 1070d, 1070d–1b SUPPLEMENTARY INFORMATION: The their transfer from two-year to four-year Dated: August 9, 1996. Department will base selection on the colleges, and foster an institutional David A. Longanecker, resume provided by each potential field climate supportive of the success of Assistant Secretary for Postsecondary reader. Field readers will review low-income, first generation college Education. applications according to the applicable students and students with disabilities. [FR Doc. 96–20751 Filed 8–13–96; 8:45 am] published selection criteria. All reviews Field readers are needed who have BILLING CODE 4000±01±P i

Reader Aids Federal Register Vol. 61, No. 158 Wednesday, August 14, 1996

CUSTOMER SERVICE AND INFORMATION CFR PARTS AFFECTED DURING AUGUST

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±523±5227 publishes separately a List of CFR Sections Affected (LSA), which aids lists parts and sections affected by documents published since the revision date of each title. Laws 8 CFR Public Laws Update Services (numbers, dates, etc.) 523±6641 3 CFR For additional information 523±5227 Executive Orders: 217...... 41684 10163 (Amended by Proposed Rules: Presidential Documents EO 13013)...... 41483 3...... 40552, 41684 Executive orders and proclamations 523±5227 13013...... 41483 103...... 40552, 41684 The United States Government Manual 523±5227 212...... 40552 5 CFR 235...... 40552 Other Services 531...... 40949 236...... 40552 Electronic and on-line services (voice) 523±4534 831...... 41714 242...... 40552 Privacy Act Compilation 523±3187 837...... 41714 287...... 40552 TDD for the hearing impaired 523±5229 841...... 41714 292...... 40552 842...... 41714 292a...... 40552 843...... 41714 ELECTRONIC BULLETIN BOARD 9 CFR 844...... 41714 Free Electronic Bulletin Board service for Public Law numbers, 847...... 41714 78...... 41730 Federal Register finding aids, and list of documents on public 1620...... 41485 94...... 40292 inspection. 202±275±0920 2634...... 40145 317...... 42143 2635...... 40950 FAX-ON-DEMAND 10 CFR 2470...... 41293 You may access our Fax-On-Demand service. You only need a fax 2471...... 41293 50...... 41303 machine and there is no charge for the service except for long 2472...... 41293 Proposed Rules: distance telephone charges the user may incur. The list of 2473...... 41293 25...... 40555 documents on public inspection and the daily Federal Register’s Ch. LIV...... 40500 95...... 40555 table of contents are available using this service. The document Ch. LXVI ...... 40505 430...... 41748 numbers are 7050-Public Inspection list and 7051-Table of Proposed Rules: 434...... 40882 Contents list. The public inspection list will be updated 591...... 41746 435...... 40882 immediately for documents filed on an emergency basis. 490...... 41032 7 CFR NOTE: YOU WILL ONLY GET A LISTING OF DOCUMENTS ON 11 CFR FILE AND NOT THE ACTUAL DOCUMENT. Documents on 26...... 40145 public inspection may be viewed and copied in our office located 51...... 40289 110...... 40961 at 800 North Capitol Street, N.W., Suite 700. The Fax-On-Demand 400...... 40952 Proposed Rules: telephone number is: 301±713±6905 457...... 41297 109...... 41036 620...... 42137 110...... 41036 FEDERAL REGISTER PAGES AND DATES, AUGUST 663...... 41949 915...... 40290 12 CFR 40145±40288...... 1 920...... 40506 26...... 40293 40289±40504...... 2 922...... 40954 212...... 40293 348...... 40293 40505±40716...... 5 923...... 40954 924...... 40954, 40956 563...... 40293 40717±40948...... 6 928...... 40146 701...... 41312 40949±41292...... 7 929...... 41729 931...... 40311 41293±41482...... 8 932...... 40507 Proposed Rules: 41483±41728...... 9 944...... 40507 357...... 40756 41729±41948...... 10 985...... 40959 613...... 42091 41949±42136...... 13 1005...... 41488 614...... 42091 42137±42370...... 14 1007...... 41488 615...... 42901 1011...... 41488 618...... 42901 1046...... 41488 619...... 42901 1467...... 42137 620...... 42901 Proposed Rules: 626...... 42901 220...... 40481 703...... 41750 226...... 40481 704...... 41750 301 ...... 40354, 40361, 41990 934...... 41535 319...... 40362 935...... 40364 457...... 41527, 41531 911...... 40550 13 CFR 944...... 40550 107...... 41496 1530...... 40749 1710...... 41025 14 CFR 1714...... 41025 25...... 41949,42144 1717...... 41025 39 ...... 40313, 40511, 41951, 1786...... 41025 41953, 41955, 41957 ii Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Reader Aids

71 ...... 40147, 40315, 40316, 23 CFR 110...... 40993 201±23...... 40708 40717, 40718, 40719, 40961, Proposed Rules: 117...... 40515 201±24...... 40708 41684, 41735, 41736, 42146 655...... 40484 154...... 41452 Ch. 301 ...... 40524 39...... 41733, 156...... 41452 95...... 40148 24 CFR 157...... 41684 42 CFR 97...... 40150, 40151 103...... 41480 165...... 40515, 40994 406...... 40343 Proposed Rules: 111...... 41282 Proposed Rules: 407...... 40343 Ch. 1 ...... 41750 115...... 41282 165...... 40587 408...... 40343 23...... 41688 416...... 40343 982...... 42129 36 CFR 25 ...... 40710, 41688, 41924 3500...... 41944 33...... 41688 31...... 40996 43 CFR 39 ...... 40159, 40758, 40760, 25 CFR 211...... 415070 4...... 40347 40762, 41037, 41039, 41537, 12...... 40525 Proposed Rules: Proposed Rules: 41539, 41751, 41753, 41755, 214...... 41365 7...... 41058 Proposed Rules: 41757, 42195 242...... 41060 3600...... 40373 71...... 40365 26 CFR 3610...... 40373 91...... 41040 37 CFR 1...... 40993, 42165 3620...... 40373 93...... 41040 31...... 40993 101...... 40997 121...... 41040 44 CFR 301...... 42178 102...... 40997 135...... 41040 602...... 40993 501...... 40997 64...... 40525, 42179 255...... 42197, 42208 65...... 40527 Proposed Rules: 38 CFR 15 CFR 1...... 42217 Proposed Rules: Proposed Rules: 67...... 40595 679...... 40481 27 CFR 1...... 40589 774...... 41326 3...... 41368 45 CFR 799A ...... 41326 252...... 41500 290...... 41500 17...... 41108 1610...... 41960 1617...... 41963 16 CFR Proposed Rules: 39 CFR 1632...... 41964 4...... 40568 1700...... 40317 1633...... 41965 5...... 40568 Proposed Rules: Proposed Rules: 701...... 42219 1507...... 41043 7...... 40568 46 CFR 19...... 40568 40 CFR 31...... 41684 17 CFR 20...... 40568 22...... 40568 3...... 40500 35...... 41684 1...... 41496 24...... 40568 5...... 41330 70...... 40281 4...... 42146 25...... 40568 30...... 41959 108...... 40281 211...... 40721 27...... 40568 51...... 40940, 41838 133...... 40281 52 ...... 40516, 41331, 41335, 168...... 40281 18 CFR 70...... 40568 250...... 40568 41338, 41342, 41838 199...... 40281 284...... 40962 251...... 40568 81...... 40516, 41342 572...... 40530 381...... 40722 85...... 40940 Proposed Rules: Proposed Rules: 28 CFR 122...... 41698 10...... 41208 35...... 41759 29...... 40723 180 ...... 40337, 40338, 40340 15...... 41208 284...... 41406 90...... 40727 261...... 40519 271...... 40520, 41345 47 CFR 19 CFR 29 CFR 272...... 41345 1 ...... 40155, 41006, 41966 10...... 41737 282...... 41507 4...... 40714 2...... 41006 12...... 41737 300...... 40523 5...... 40714 15...... 41006 102...... 41737 1926...... 41738 Proposed Rules: 20...... 40348 134...... 41737 2510...... 41220 52 ...... 40591, 40592, 41371, 24...... 41006 41372 63...... 40531 Proposed Rules: 20 CFR 59...... 40161 64...... 42181 1...... 40366 404...... 41329 64...... 41991 68...... 42181 5...... 40366 70...... 41991, 42222 73 ...... 40156, 40746, 41019, 102...... 40369 21 CFR 71...... 41991 42189, 42190 73...... 40317 30 CFR 81 ...... 41371, 41759, 41764 90...... 40747 101...... 40320, 40963 153...... 41764 97...... 41006 203...... 40734 136...... 40513 159...... 41764 Proposed Rules: 735...... 40155 137...... 40513 260...... 41111 20...... 40374 937...... 40155 139...... 40513 261...... 41111, 42318 25...... 40772 950...... 40735 184...... 40317 262...... 41111 32...... 40161, 41208 522...... 41498 Proposed Rules: 264...... 41111 64...... 40161, 41208 601...... 40153 250...... 41541 268...... 41111 73 ...... 40774, 40775, 41114, 620...... 40153 936...... 40369 269...... 41111 42228, 42229, 42230 271...... 41111, 42318 630...... 40153 31 CFR 640...... 40153 281...... 40592 48 CFR 650...... 40153 211...... 41739 300...... 40371 Ch. 1...... 41466, 41477 660...... 40153 Proposed Rules: 302...... 42318 2...... 41467 680...... 40153 344...... 40764 5...... 41467 1309...... 40981 41 CFR 7...... 41467 1310...... 40981 32 CFR 50±201...... 40714 8...... 41467 1313...... 40981 Proposed Rules: 50±206...... 40714 9...... 41467, 41472 202...... 40764 101±11...... 41000 12...... 41467 22 CFR 101±35...... 41003 15...... 41467 126...... 41499, 41737 33 CFR 101±43...... 41352 16...... 41467 602...... 40332 100 ...... 40513, 42505, 41506 101±46...... 41352 17...... 41467 Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Reader Aids iii

19...... 41467 916...... 41702 14...... 41212 393...... 40781 22...... 41467 917...... 41702 15...... 40284, 41214 571 ...... 40784, 41510, 41764 23...... 41473 922...... 41702 16...... 40284, 41214 1002...... 42190 25...... 41475 928...... 41702 25...... 41214 31...... 41476 932...... 41702 31...... 41214 50 CFR 32...... 41467 933...... 41702 36...... 41212 33...... 41467 935...... 41702 37...... 40284 13...... 40481 34...... 41467 936...... 41702 46...... 40284, 41214 14...... 40481 37...... 41467 942...... 41702 52...... 40284, 41214 17...... 41020 38...... 41467 945...... 41702 909...... 40775 222...... 41514 39...... 41467 952...... 41702 952...... 40775 285...... 40352 45...... 41467 971...... 41702 970...... 40775 660...... 40156, 40157 46...... 41467 1801...... 40533 679 ...... 40158, 40353, 40748, 51...... 41467 1802...... 40533 49 CFR 41024, 41363, 41523, 41744 52...... 41467, 41473 1803...... 40533 192...... 41019 Proposed Rules: 53...... 41467 1804...... 40533 544...... 41985 30...... 41115 506...... 42190 1805...... 40533 571...... 41355, 41510 100...... 41060 547...... 42190 1806...... 40533 Proposed Rules: 216...... 40377 552...... 42190 1852...... 40533 361...... 40781 217...... 41116 901...... 41702 Proposed Rules: 362...... 40781 222...... 41116, 41541 905...... 41702 1...... 41212 363...... 40781 227...... 40810 906...... 41702 4...... 41212, 41214 364...... 40781 300...... 41987 908...... 41702 5...... 41212 385...... 40781 660...... 41988 909...... 41684 7...... 40284 386...... 40781 679...... 40380 915...... 41702 12...... 41214 391...... 40781 iv Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Reader Aids

REMINDERS Oranges and grapefruit grown Commercial items contracts Air programs: The items in this list were in Texas; comments due by and subcontracts; cost Stratospheric ozone editorially compiled as an aid 8-21-96; published 7-22-96 accounting standards protection-- to Federal Register users. Oranges, grapefruit, exemption; comments due Fire extinguishers Inclusion or exclusion from tangerines, and tangelos by 8-20-96; published 6- containing this list has no legal grown in Florida; comments 21-96 hydrochloro- significance. due by 8-23-96; published Contracts, fixed-priced; fluorocarbons (HCFCs); 7-24-96 performance incentives; ban reconsideration; comments due by 8-19- AGRICULTURE comments due by 8-19- 96; published 7-18-96 RULES GOING INTO DEPARTMENT 96; published 6-20-96 Costs related to legal/other Air quality implementation EFFECT TODAY Animal and Plant Health proceedings; comments plans; approval and Inspection Service promulgation; various AGRICULTURE due by 8-19-96; published Hawaiian and territorial States: DEPARTMENT 6-20-96 quarantine notices: Drug-free workplace; California; comments due by Agricultural Marketing Papaya, carambola, and certification requirements; 8-19-96; published 7-18- Service litchi; comments due by comments due by 8-19- 96 Raisins produced from grapes 8-22-96; published 7-23- 96; published 6-20-96 Louisiana; comments due by grown in California; 96 Foreign selling costs; 8-21-96; published 7-22- published 7-15-96 Plant-related quarantine, comments due by 8-19- 96 AGRICULTURE domestic: 96; published 6-20-96 Oregon; comments due by DEPARTMENT Mediterranean fruit fly; Historically black colleges 8-19-96; published 7-18- Animal and Plant Health comments due by 8-19- and universities/minority 96 Inspection Service 96; published 6-19-96 institutions; collection of Tennessee; comments due Exportation and importation of award data; comments by 8-19-96; published 7- AGRICULTURE 18-96 animals and animal DEPARTMENT due by 8-19-96; published 6-20-96 Washington; comments due products: Food and Consumer Service Independent research and by 8-22-96; published 7- Goats from Mexico for Child nutrition programs: 23-96 immediate slaughter and development/bid and National school lunch, proposal in cooperative Pesticides; tolerances in food, horse quarantine facilities; animal feeds, and raw published 7-15-96 school breakfast, child arrangements; comments and adult care food, and due by 8-19-96; published agricultural commodities: AGRICULTURE summer food service 6-20-96 Avermectin B1 and its delta- DEPARTMENT programs-- Irrevocable letters of credit 8,9-isomer; comments due Commodity Credit Meat alternates; and alternatives to Miller by 8-23-96; published 7- Corporation comments due by 8-19- Act bonds; comments due 24-96 Wetlands reserve program: 96; published 7-5-96 by 8-19-96; published 6- N-acyl sarcosines and sodium n-acyl Responsibility transferred COMMERCE DEPARTMENT 20-96 from NCRS to Commodity sarcosinates; comments International Trade North American Free Trade Credit Corporation; due by 8-23-96; published Administration Agreement Implementation published 8-14-96 Act; implementation; 7-24-96 Watches duty exemption Polybutene; comments due ENERGY DEPARTMENT comments due by 8-19- program: 96; published 6-20-96 by 8-23-96; published 7- Energy Efficiency and Duty-exemption entitlement 24-96 Renewable Energy Office Preaward debriefings; allocations in Virgin comments due by 8-23- Vinyl alcohol-vinyl acetate Consumer products; energy Islands, Guam, American 96; published 6-24-96 copolymer, benzaldehyde- conservation program: Samoa, and Northern o-sodium sulfonate ENERGY DEPARTMENT Energy efficiency standards; Mariana Islands; condensate; comments Acquisition regulations: consideration procedures; comments due by 8-21- due by 8-19-96; published published 7-15-96 96; published 7-22-96 Management and operating 7-18-96 contracts-- TREASURY DEPARTMENT COMMERCE DEPARTMENT Solid wastes: Contract reform initiative; Hazardous waste Internal Revenue Service National Oceanic and implementation; combustors, etc.; Atmospheric Administration Procedure and administration: comments due by 8-23- maximum achievable Performance of acts where International Code of Conduct 96; published 6-24-96 control technologies last day falls on Saturday, for Responsible Fisheries Contract reform initiative; performance standards; Sunday, or legal holiday; implementation plan; implementation; comments due by 8-19- time; published 8-14-96 availability; comments due comments due by 8-23- 96; published 5-30-96 by 8-23-96; published 7-25- 96; published 6-24-96 Superfund program: 96 COMMENTS DUE NEXT Performance-based National oil and hazardous WEEK DEFENSE DEPARTMENT management substances contingency Army Department contracting, fines, plan-- penalties, etc.; National priorities list AGRICULTURE Environmental analysis of comments due by 8-23- update; comments due DEPARTMENT army actions; comments 96; published 7-25-96 by 8-21-96; published Agricultural Marketing due by 8-21-96; published 7-22-96 ENVIRONMENTAL 7-22-96 Service PROTECTION AGENCY National priorities list Milk marketing orders: DEFENSE DEPARTMENT Air pollutants, hazardous; update; comments due Carolina et al.; comments Acquisition regulations: national emission standards: by 8-21-96; published due by 8-19-96; published U.S. European Command Industrial Combustion 7-22-96 7-18-96 (EUCOM) supplement; Coordinated Rulemaking FEDERAL Nectarines and peaches comments due by 8-19- Advisory Committee-- COMMUNICATIONS grown in California; 96; published 6-20-96 Establishment; comments COMMISSION comments due by 8-21-96; Federal Acquisition Regulation due by 8-20-96; Radio stations; table of published 7-22-96 (FAR): published 6-21-96 assignments: Federal Register / Vol. 61, No. 158 / Wednesday, August 14, 1996 / Reader Aids v

Texas; comments due by 8- due by 8-22-96; published Records access and TRANSPORTATION 19-96; published 7-3-96 5-24-96 information release; DEPARTMENT comments due by 8-20- FEDERAL DEPOSIT HEALTH AND HUMAN Aviation economic regulations: INSURANCE CORPORATION SERVICES DEPARTMENT 96; published 6-21-96 Large certificated air Deposit insurances rules; Health Care Financing NATIONAL AERONAUTICS carriers; passenger origin- simplification; comments due Administration AND SPACE destination survey reports; by 8-20-96; published 5-22- Medicare and Medicaid: ADMINISTRATION comments due by 8-23- 96 Provider appeals; technical Federal Acquisition Regulation 96; published 6-24-96 GENERAL SERVICES amendments; comments (FAR): ADMINISTRATION due by 8-23-96; published Commercial items contracts TRANSPORTATION 6-24-96 and subcontracts; cost Federal Acquisition Regulation DEPARTMENT accounting standards (FAR): INTERIOR DEPARTMENT Federal Aviation Watches duty exemption exemption; comments due Commercial items contracts by 8-20-96; published 6- Administration and subcontracts; cost program: 21-96 Air traffic operating and flight accounting standards Duty-exemption entitlement Contracts, fixed-priced; rules: exemption; comments due allocations in Virgin performance incentives; by 8-20-96; published 6- Islands, Guam, American Rocky Mountain National comments due by 8-19- 21-96 Samoa, and Northern Park, CO; special flight 96; published 6-20-96 Contracts, fixed-priced; Mariana Islands; rules in vicinity; comments comments due by 8-21- Costs related to legal/other due by 8-19-96; published performance incentives; proceedings; comments comments due by 8-19- 96; published 7-22-96 7-23-96 INTERIOR DEPARTMENT due by 8-19-96; published 96; published 6-20-96 6-20-96 Airworthiness directives: Costs related to legal/other Minerals Management Service Drug-free workplace; Jetstream; comments due proceedings; comments certification requirements; due by 8-19-96; published Outer Continental Shelf; oil, by 8-19-96; published 7- gas, and sulphur operations: comments due by 8-19- 10-96 6-20-96 96; published 6-20-96 Unitization; model unit Drug-free workplace; Foreign selling costs; McDonnell Douglas; certification requirements; agreements; comments comments due by 8-19- due by 8-19-96; published comments due by 8-19- comments due by 8-19- 96; published 6-20-96 96; published 7-10-96 96; published 6-20-96 8-9-96 Royalty management: Historically black colleges Class D airspace; comments Foreign selling costs; and universities/minority due by 8-19-96; published Federal leases; natural gas comments due by 8-19- institutions; collection of 6-19-96 valuation regulations; 96; published 6-20-96 award data; comments amendments; comments Class E airspace; comments Historically black colleges due by 8-19-96; published due by 8-19-96; published due by 8-19-96; published and universities/minority 6-20-96 7-22-96 6-19-96 institutions; collection of Independent research and INTERIOR DEPARTMENT award data; comments development/bid and Organization, functions, and due by 8-19-96; published National Park Service proposal in cooperative authority delegations: 6-20-96 Boating and water use arrangements; comments Commercial Space activities: Independent research and due by 8-19-96; published Transportation; CFR development/bid and Prohibited operations; 6-20-96 chapter III name change; proposal in cooperative comments due by 8-23- Irrevocable letters of credit comments due by 8-21- arrangements; comments 96; published 6-24-96 and alternatives to Miller 96; published 7-22-96 due by 8-19-96; published INTERIOR DEPARTMENT Act bonds; comments due 6-20-96 Surface Mining Reclamation by 8-19-96; published 6- TRANSPORTATION Irrevocable letters of credit and Enforcement Office 20-96 DEPARTMENT and alternatives to Miller Permanent program and North American Free Trade Surface Transportation Act bonds; comments due abandoned mine land Agreement Implementation Board by 8-19-96; published 6- reclamation plan Act; implementation; 20-96 submissions: comments due by 8-19- Practice and procedure: North American Free Trade Texas; comments due by 8- 96; published 6-20-96 Rail rate reasonableness, Agreement Implementation 23-96; published 7-24-96 Preaward debriefings; exemption and revocation Act; implementation; JUSTICE DEPARTMENT comments due by 8-23- proceedings; expedited comments due by 8-19- Grants: 96; published 6-24-96 procedures; comments 96; published 6-20-96 due by 8-21-96; published Juvenile Justice and TRANSPORTATION 7-26-96 Preaward debriefings; Delinquency Prevention DEPARTMENT comments due by 8-23- Office formula grants; Coast Guard VETERANS AFFAIRS 96; published 6-24-96 comments due by 8-19- Drawbridge operations: DEPARTMENT HEALTH AND HUMAN 96; published 7-3-96 New Jersey; comments due Practice and procedure; SERVICES DEPARTMENT Privacy Act; implementation; by 8-20-96; published 6- Food and Drug comments due by 8-19-96; 21-96 Disinterments in national Administration published 7-18-96 Ports and waterways safety: cemeteries Medical devices: JUSTICE DEPARTMENT Lower Hudson River, NY; Immediate family member Latex condoms; expiration Prisons Bureau safety zone; comments definition; revision; date; labeling Inmate control, custody, care, due by 8-20-96; published comments due by 8-19- requirements; comments etc.: 8-5-96 96; published 6-20-96