9–14–10 Tuesday Vol. 75 No. 177 Sept. 14, 2010

Pages 55663–55940

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Contents Federal Register Vol. 75, No. 177

Tuesday, September 14, 2010

Agriculture Department Department of Transportation See Forest Service See Pipeline and Hazardous Materials Safety NOTICES Administration Agency Information Collection Activities; Proposals, Submissions, and Approvals, 55736 Drug Enforcement Administration NOTICES Broadcasting Board of Governors Final Revised Aggregate Production Quotas for 2010: NOTICES Controlled Substances, 55828–55831 Meetings; Sunshine Act, 55738 Education Department Centers for Disease Control and Prevention NOTICES NOTICES Agency Information Collection Activities; Proposals, Meetings: Submissions, and Approvals, 55779–55784 Disease, Disability, and Injury Prevention and Control Final Extension of Project Period and Waiver for the State Special Emphasis Panel, 55803, 55806 and Federal Policy Forum; etc., 55784–55785 Final Extension of Project Period and Waiver: Centers for Medicare & Medicaid Services National Center on Educational Outcomes at the NOTICES University of Minnesota, 55785–55786 Medicare Program: National Secondary Transition Technical Assistance Prospective Payment System and Consolidated Billing for Center, 55786–55787 Skilled Nursing Facilities for FY 2011; Correction, List of Correspondence, 55788–55789 55801–55802 Meetings: Advisory Commission on Accessible Instructional Children and Families Administration Materials in Postsecondary Education for Students NOTICES with Disabilities, 55789–55790 Agency Information Collection Activities; Proposals, Submissions, and Approvals, 55792–55793 Energy Department See Federal Energy Regulatory Commission Coast Guard Environmental Protection Agency RULES PROPOSED RULES Special Local Regulations: Air Quality Implementation Plans: Thunderboat Regatta; Mission Bay, California, 55677– Montana; Attainment Plan for Libby, MT, etc., 55713– 55678 55725 PROPOSED RULES Approval and Promulgation of Air Quality Implementation Port Access Route Study: Plans: Approaches to Los Angeles–Long Beach and in the Santa Indiana; et al.; Determination of Attainment of the Fine Barbara Channel, 55709 Particle Standard, 55725–55728 Commerce Department Discontinuing Rulemaking Efforts Listed in Unified Agenda of Federal Regulatory and Deregulatory Actions: See International Trade Administration Withdrawals, 55728–55730 See National Oceanic and Atmospheric Administration Federal Implementation Plans to Reduce Interstate See National Telecommunications and Information Transport of Fine Particulate Matter and Ozone; Administration Correction, 55711–55713 NOTICES Commodity Futures Trading Commission Charter Renewals: PROPOSED RULES National Environmental Justice Advisory Council, 55791 Commodity Pool Operations: Clean Air Act Operating Permit Programs: Relief from Compliance with Certain Disclosure, Petition for Objection to State Operating Permit for Reporting and Recordkeeping Requirements, etc.; Alliant Energy, WPL Edgewater Generating Station, Correction, 55698 55791–55792 Consumer Product Safety Commission Executive Office of the President NOTICES See Management and Budget Office Provisional Acceptance of a Settlement Agreement and See National Drug Control Policy Office Order: Pro–Pac Distributing Corp., 55777–55778 Federal Aviation Administration PROPOSED RULES Defense Department Airworthiness Directives: NOTICES The Boeing Company Model 737–600, –700, –700C, –800, Meetings: –900, and –900ER Series Airplanes, 55691–55692 Strategic Environmental Research and Development Flightcrew Member Duty and Rest Requirements, 55852– Program Scientific Advisory Board, 55778–55779 55889

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NOTICES Draft Guidance for Industry; Availability: Environmental Impact Statements; Availability, etc.: Chronic Hepatitis C Virus Infection; Developing Direct- Sikorsky Memorial Airport; Stratford, CT, 55846 Acting Antiviral Agents for Treatment, 55797–55798 Meetings: Filing of Food Additive Petition (Animal Use): RTCA Special Committee 206: EUROCAE WG 76 Plenary: North American Bioproducts Corp., Penicillin G AIS and MET Data Link Services, 55847 Procaine, 55798–55799 RTCA Special Committee 216; Aeronautical Systems Meetings: Security (Joint Meeting), 55847–55848 Arthritis Advisory Committee, 55805–55806 Working Group with Industry on Volcanic Ash, 55846– Neurological Devices Panel of the Medical Devices 55847 Advisory Committee, 55803 Transmissible Spongiform Encephalopathies Advisory Federal Communications Commission Committee, 55803–55804 NOTICES Withdrawals of Approvals of New Animal Drug Petition for Reconsideration of Action in Rulemaking Applications: Proceeding, 55792 Chloramphenicol; Lincomycin; Pyrantel Tartrate; and Tylosin Phosphate and Sulfamethazine, 55810 Federal Emergency Management Agency RULES Forest Service Suspension of Community Eligibility, 55683–55686 PROPOSED RULES NOTICES Enhancing Policies Relating to Partnerships, 55710–55711 Emergency and Related Determinations: NOTICES Massachusetts, 55810–55811 Environmental Impact Statements; Availability, etc.: Emergency Declarations: Integrated Non-Native Invasive Plant Project; Mark Twain North Carolina; Amendment No. 2, 55811 National Forest, MO, 55736–55737 Major Disaster Declarations: Meetings: Wisconsin, Amendment No. 1, 55811 Del Norte Resource Advisory Committee, 55737–55738 Fresno County Resource Advisory Committee, 55737 Federal Energy Regulatory Commission Tehama County Resource Advisory Committee, 55738 NOTICES Meetings; Sunshine Act, 55790–55791 Health and Human Services Department See Centers for Disease Control and Prevention Federal Housing Finance Agency See Centers for Medicare & Medicaid Services RULES See Children and Families Administration 2010–2011 Enterprise Housing Goals: See Food and Drug Administration Enterprise Book-entry Procedures, 55892–55939 See Health Resources and Services Administration See National Institutes of Health Federal Retirement Thrift Investment Board See Substance Abuse and Mental Health Services NOTICES Administration Meetings; Sunshine Act, 55792 NOTICES Decision to Evaluate a Petition for Inclusion in a Special Fish and Wildlife Service Exposure Cohort: RULES Employees from the Wah Chang facility, Albany, OR, Endangered and Threatened Wildlife and Plants: 55792 Technical Corrections for Three Midwest Region Plant Species, 55686–55689 Health Resources and Services Administration PROPOSED RULES NOTICES Endangered and Threatened Wildlife and Plants: Agency Information Collection Activities; Proposals, 90-Day Finding on Petitions to Delist Gray Wolf in Submissions, and Approvals, 55793 Minnesota, Wisconsin, Michigan, and Western Great Lakes, 55730–55735 Homeland Security Department NOTICES See Coast Guard Endangered and Threatened Wildlife and Plants: See Federal Emergency Management Agency 5-Year Status Reviews of Seven Midwest Species, 55820– See U.S. Customs and Border Protection 55823 Indian Affairs Bureau Food and Drug Administration NOTICES RULES Indian Gaming, 55823 Animal Drugs, Feeds, and Related Products; Withdrawals of Land Acquisitions: Approvals of New Animal Drug Applications: Nisqually Indian Tribe, 55824 Chloramphenicol; Lincomycin; Pyrantel Tartrate; and Tylosin Phosphate and Sulfamethazine, 55676–55677 Interior Department NOTICES See Fish and Wildlife Service Cooperative Agreement to Support the Foodborne Disease See Indian Affairs Bureau Burden Epidemiology Reference Group of the World See Land Management Bureau Health Organization, 55793–55795 See National Park Service Determinations That Products Were Not Withdrawn From See Surface Mining Reclamation and Enforcement Office Sale for Reasons of Safety or Effectiveness: NOTICES VESANOID (Tretinoin) Capsules, 10 Milligrams, 55796– Senior Executive Service Performance Review Board 55797 Membership, 55816–55820

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Internal Revenue Service Requirements for Federal Funding Accountability and RULES Transparency Act Implementation, 55663–55671 Guidance Regarding Deferred Discharge of Indebtedness Income of Corporations, etc.; Correction, 55677 National Drug Control Policy Office PROPOSED RULES NOTICES Guidance Regarding Deferred Discharge of Indebtedness Appointment of Members of Senior Executive Services Income of Corporations, etc.; Correction, 55698–55699 Performance Review Board, 55831 Series LLCs and Cell Companies, 55699–55709 NOTICES National Institutes of Health Agency Information Collection Activities; Proposals, NOTICES Submissions, and Approvals, 55849 Government-Owned Inventions; Availability for Licensing, 55799–55801 International Trade Administration Meetings: NOTICES Eunice Kennedy Shriver National Institute of Child Export Trade Certificate of Review, 55739–55740 Health and Human Development, 55807 Extension of Preliminary Results of Antidumping Duty National Eye Institute, 55806 Administrative Review: National Heart, Lung, and Blood Institute, 55807 Certain Frozen Warmwater Shrimp from the Socialist National Institute of Environmental Health Sciences, Republic of Vietnam, 55740–55741 55805, 55807 Extension of Time Limit for Preliminary Results and Partial National Institute of General Medical Sciences, 55804– Rescission of Antidumping Duty Administrative 55805 Review: National Institute of Nursing Research, 55808 Honey from Argentina, 55741–55742 Prospective Grant of Exclusive License: Extension of Time Limit for Preliminary Results of the Development of AAV5 Based Therapeutics to Treat Antidumping Duty Administrative Review: Human Diseases, 55808–55809 Certain Hot-Rolled Carbon Steel Flat Products from India, The Development of Immunotoxins/Targeted Toxins for 55742–55743 the Treatment of Human Cancers, 55809–55810 Preliminary Results and Partial Rescission of Countervailing Duty Administrative Reviews: National Oceanic and Atmospheric Administration Corrosion-Resistant Carbon Steel Flat Products from the RULES Republic of Korea, 55745–55754 Fisheries of the Exclusive Economic Zone Off Alaska: Preliminary Results of Antidumping Duty Administrative Reallocation of Pacific Cod in Bering Sea and Aleutian Review: Islands Management Area, 55690 Floor-Standing, Metal-Top Ironing Tables and Certain Reallocation of Yellowfin Sole in Bering Sea and Parts Thereof from the People’s Republic of China, Aleutian Islands Management Area, 55689–55690 PROPOSED RULES 55754–55764 Proposed Research Area within the Grays Reef National Preliminary Results of Countervailing Duty Administrative Marine Sanctuary, 55692–55698 Review: NOTICES Dynamic Random Access Memory Semiconductors from Applications: the Republic of Korea, 55764–55769 Marine Mammals File No. 15654, 55738–55739 Preliminary Results of the Sixteenth Antidumping Duty Meetings: Administrative Review: Mid-Atlantic Fishery Management Council, 55743 Certain Corrosion-Resistant Carbon Steel Flat Products North Pacific Fishery Management Council, 55743–55745 from the Republic of Korea, 55769–55776 Pacific Fishery Management Council, 55745 Vaccine Production and Additional Planning for Future Permits: Possible Pandemic Influenza, 55776–55777 Marine Mammals; File No. 87–1851, 55745 International Trade Commission National Park Service NOTICES NOTICES Meetings; Sunshine Act, 55827 Inventory Completions: Denver Museum of Nature and Science, Denver, CO; Justice Department Correction, 55823–55824 See Drug Enforcement Administration NOTICES National Telecommunications and Information Agency Information Collection Activities; Proposals, Administration Submissions, and Approvals, 55827–55828 NOTICES Land Management Bureau Cybersecurity, Innovation, and the Internet Economy, 55739 RULES Minerals Management: Nuclear Regulatory Commission Adjustment of Cost Recovery Fees, 55678–55683 NOTICES NOTICES Call for Nominations: Proposed Land Withdrawal; California, 55824–55827 Advisory Committee on the Medical Uses of Isotopes, 55831–55832 Management and Budget Office Meetings; Sunshine Act, 55832 RULES Financial Assistance Use of Universal Identifier and Central Office of Management and Budget Contractor Registration, 55671–55676 See Management and Budget Office

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Pipeline and Hazardous Materials Safety Administration Surface Mining Reclamation and Enforcement Office NOTICES NOTICES Pipeline Safety; Request for Special Permit, 55848–55849 Agency Information Collection Activities; Proposals, Submissions, and Approvals, 55820 Securities and Exchange Commission Transportation Department NOTICES See Federal Aviation Administration Approval of Allocation of Regulatory Responsibilities: See Pipeline and Hazardous Materials Safety Financial Industry Regulatory Authority, Inc. and the Administration Chicago Stock Exchange, Inc., 55833–55835 Meetings; Sunshine Act, 55835–55836 Treasury Department Self-Regulatory Organizations; Proposed Rule Changes: BATS Exchange, Inc., 55838–55840 See Internal Revenue Service Financial Industry Regulatory Authority, 55842–55846 U.S. Customs and Border Protection National Securities Clearing Corp., 55836 NYSE Amex LLC, 55837–55838 NOTICES NYSE Arca, Inc, 55840–55842 Testing method of Pressed and Toughened (Specially Tempered) Glassware, 55811–55816

Small Business Administration NOTICES Separate Parts In This Issue Agency Information Collection Activities; Proposals, Submissions, and Approvals, 55832 Part II Disaster Declarations: Transportation Department, Federal Aviation Tennessee, 55833 Administration, 55852–55889 Wisconsin; Amendment 1, 55832–55833 Part III State Department Federal Housing Finance Agency, 55892–55939 NOTICES Meetings: UNCITRAL Working Group on Procurement, 55846 Reader Aids Consult the Reader Aids section at the end of this page for Substance Abuse and Mental Health Services phone numbers, online resources, finding aids, reminders, Administration and notice of recently enacted public laws. To subscribe to the Federal Register Table of Contents NOTICES LISTSERV electronic mailing list, go to http:// Current List of Laboratories That Minimum Standards To listserv.access.gpo.gov and select Online mailing list Engage in Urine Drug Testing for Federal Agencies, archives, FEDREGTOC-L, Join or leave the list (or change 55795–55796 settings); then follow the instructions.

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CFR PARTS AFFECTED IN THIS ISSUE

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

2 CFR Subt. A...... 55671 170...... 55663 12 CFR 1249...... 55892 1282...... 55892 14 CFR Proposed Rules: 39...... 55691 117...... 55852 121...... 55852 15 CFR Proposed Rules: 922...... 55692 17 CFR Proposed Rules: 4...... 55698 21 CFR 510...... 55676 520...... 55676 558...... 55676 26 CFR 1...... 55677 Proposed Rules: 1...... 55698 301...... 55699 33 CFR 100...... 55677 Proposed Rules: 167...... 55709 36 CFR Proposed Rules: 200...... 55710 40 CFR Proposed Rules: 51...... 55711 52 (3 documents) ...... 55711, 55713, 55725 72...... 55711 78...... 55711 97...... 55711 799...... 55728 43 CFR 3000...... 55678 3910...... 55678 3930...... 55678 44 CFR 64...... 55683 50 CFR 17...... 55686 679 (2 documents) ...... 55689, 55690 Proposed Rules: 17...... 55730

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Rules and Regulations Federal Register Vol. 75, No. 177

Tuesday, September 14, 2010

This section of the FEDERAL REGISTER in the Federal Register and that are education and an association of research contains regulatory documents having general open for comment. Simply type ‘‘FFATA universities; six nonprofit organizations applicability and legal effect, most of which subaward reporting’’ (in quotes) in the and an association of nonprofits; two are keyed to and codified in the Code of Comment or Submission search box, local governmental organizations and an Federal Regulations, which is published under click Go, and follow the instructions for association of local government 50 titles pursuant to 44 U.S.C. 1510. submitting comments. Comments officials; two commercial firms; one The Code of Federal Regulations is sold by received by the date specified above individual; and 14 Federal agencies. the Superintendent of Documents. Prices of will be included as part of the official Some of the comments concerned new books are listed in the first FEDERAL record and considered in preparing the subaward reporting under the REGISTER issue of each week. final guidance. Transparency Act but were not directly Marguerite Pridgen, Office of Federal related to the content of the guidance. Financial Management, Office of For example, we received comments OFFICE OF MANAGEMENT AND Management and Budget, 725 17th that suggested: BUDGET Street, NW., Washington, DC 20503; • Specific data elements that either telephone 202–395–7844; fax 202–395– should be included in, or excluded 2 CFR Part 170 3952; e-mail [email protected]. from, the information that will be RIN 0348–AB61 FOR FURTHER INFORMATION CONTACT: required for each subaward. Marguerite Pridgen, Office of Federal • A need for better definitions of Requirements for Federal Funding Financial Management, Office of some data elements or clarification of Accountability and Transparency Act Management and Budget, telephone the information desired in some data Implementation (202) 395–7844 (direct) or (202) 395– fields. • AGENCY: Office of Federal Financial 3993 (main office) and e-mail: Using the same information Management, Office of Management and [email protected]. technology systems for submission of Budget (OMB). SUPPLEMENTARY INFORMATION: data on both: (1) Subawards under ACTION: Federal assistance awards subject to the Interim final guidance to I. Background agencies with opportunity for comment. Transparency Act’s requirements; and On June 6, 2008 [73 FR 32417], the (2) subcontracts that entities receiving SUMMARY: OMB is issuing interim final Office of Management and Budget Federal procurement contracts must guidance to agencies to establish (OMB) published proposed guidance to submit under the Act. requirements for Federal financial Federal agencies with an award term • Other specific features that it would assistance applicants, recipients, and needed to implement requirements be important to include in those subrecipients that are necessary for the related to subaward reporting under the information technology systems. implementation of the Federal Funding Federal Funding Accountability and When we received them in 2008, we Accountability and Transparency Act of Transparency Act of 2006 (Pub. L. 109– referred comments that do not directly 2006, hereafter referred to as ‘‘the 282, as amended by section 6202 of relate to the policy guidance to the Transparency Act’’ or ‘‘the Act’’. This Public Law 110–252, hereafter referred appropriate Federal agency groups, interim final guidance provides to as ‘‘the Transparency Act’’ or ‘‘the including the groups that were working standard wording for an award term that Act’’). The guidance was proposed for on the design of systems to which each agency must include in grant and adoption in a new part 33 within title entities will submit data to fulfill their cooperative agreement awards it makes 2 of the Code of Federal Regulations reporting responsibilities under the Act. on or after October 1, 2010, to require (CFR). As stated in the 2008 Federal Register recipients to report information about We are adopting the interim final notice, the data elements and other first-tier subawards and executive guidance in 2 CFR part 170, a different aspects of subaward reporting are compensation under only those awards. 2 CFR part than part 33 in which we separate from the policy guidance. The This implementation of the requirement originally proposed to adopt it in June General Services Administration has for reporting of subawards and 2008. The reason is that part 33 now is recently published the information executive compensation under Federal within a newly created subchapter in 2 collections with an opportunity for assistance awards parallels the CFR that is for OMB guidance related to public comment that provide the implementation for subcontracts and pre-award responsibilities (for more specific data elements required for executive compensation under Federal information on the new 2 CFR Transparency Act reporting of procurement contracts, which is in the subchapters, see the notice in today’s subawards and executive compensation Federal Acquisition Regulation. Federal Register that adopts 2 CFR part [75 FR 43165]. The Federal acquisition DATES: The effective date for this 25). The content of the guidance councils have simultaneously published interim final guidance is September 14, following this preamble is better suited for public comment their proposed 2010. Comments on the interim final to another new subchapter for guidance information collection for subcontract guidance must be received by no later on national policy requirements, a reporting pursuant to the Transparency than October 14, 2010. subchapter that includes part 170. Act. ADDRESSES: Comments may be sent to We received comments from 75 As it was proposed in 2008, the new regulations.gov, a Federal E-Government entities in response to the 2008 Federal part 33 would have required direct Web site that allows the public to find, Register notice, including: 29 State recipients of Federal agency awards review, and submit comments on agencies and two associations of State and, with some exceptions, documents that agencies have published officials; 16 institutions of higher subrecipients at all lower tiers (if their

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subawards were subject to Transparency included in the interim final guidance suggested that the costs should be Act reporting requirements) to have as a result of the comment. allocable as direct program costs. A DUNS numbers and register in the CCR. number of commenters were concerned II. Comments, Responses, and Changes Since the publication of the June 2008 that the added burdens of reporting to the Guidance proposal, OMB proposed a new part 25 could discourage some entities, to 2 CFR on February 18, 2010 [75 FR A. Comments on the 2008 Federal especially smaller subrecipient entities, 7316]. The proposed part 25 superseded Register Preamble from applying for Federal grants. Response: This guidance requires the DUNS number and CCR elements of Comment: Two commenters noted only prime grant recipients to report to the June 2008 notice and limited the that the preamble of the 2008 Federal the Federal Government on subawards DUNS number requirement to Register notice missed one data applicants, recipients, and first-tier and executive compensation. element—an award title descriptive of Nevertheless, we understand the subrecipients only. The preamble of the the purpose of the funding action— February 2010 Federal Register administrative changes and effort that when it listed the data elements that the are associated with reporting on document also contained responses to Transparency Act specifies for Federal the public comments on the DUNS and subawards. As section (d)(2)(A) of the agencies’ awards. Transparency Act provides, recipients CCR requirements proposed in June Response: The commenters are correct 2008. Part 25 is being finalized in and subrecipients are allowed ‘‘to that the Act specifies the additional data allocate reasonable costs for the another document in this section of element. The inadvertent omission did today’s Federal Register. Therefore, the collection and reporting of subaward not affect the proposed guidance, data as indirect costs.’’ We will assess DUNS and CCR requirements will not however. The data elements were listed be addressed further in this document. the overall cost impact of the new solely as background explanatory requirements on recipients and The remainder of this document information in the preamble of the 2008 addresses the portions of the 2008 subrecipients, as well as their ability to Federal Register notice. recover the indirect costs under current proposal related to reporting of Comment: With respect to that same subawards, as well as the additional limitations in statute, policy, program list of data elements in the preamble, regulations, or practice. reporting on executive compensation one commenter asked whether the that is required by the subsequent Comment: Nine commenters inclusion of the country of the recipient suggested that it was premature to amendment to the Transparency Act. In and its parent entity was a developing the interim final policy propose the policy guidance. Among typographical error. The commenter reasons given were that we did not yet guidance on subaward reporting, we suggested that the data element likely considered: provide details about all data elements was meant to be the county, rather than that will be required in each report of • All comments relevant to that the country. an obligating action, the definitions of subject in the 2008 proposal; Response: Although the specifics of • the data elements, and the reporting The experience gained under the the data elements do not affect the format and procedures that will be used. guidance for, and practical guidance, the data element specified in A few commenters noted that the award implementation of, recipient reporting the Transparency Act is the country, term in the proposed guidance referred required by section 1512 of the rather than the county. to a Web site at which entities would American Recovery and Reinvestment submit subaward data but observed that Act of 2009 (Pub. L. 111–5, hereafter B. General Comments Related to the Act and Guidance the site was not ready to receive data referred to as ‘‘the Recovery Act’’), and had no further details on what or which we consider to be the pilot Comment: Thirty nine commenters how to report. One commenter asked if program for subaward reporting expressed concern that recipients and there was an exception process when envisioned by paragraph (d)(1) of subrecipients must allocate additional there are systems issues to be resolved. section 2 of the Transparency Act; and resources in order to comply with the Response: We revised the wording of • New transparency and Open new requirements for subaward the award term to further clarify that the Government policies put in effect since reporting. They cited the need to change Web site will be the source of the the publication of the 2008 proposal, business processes and systems to begin detailed information on what to report including the amendment of the to collect data that they are not (i.e., the specific data elements and their Transparency Act by section 6202 of collecting now and do it electronically. definitions) and how to report (i.e., the Public Law 110–252 to require the They also noted the continuing need for formats and information technology reporting of the names and total resources to compile and report data system features). That information will compensation of a recipient’s or after that initial transition period. Most be posted at the Web site before non- subrecipient’s five most highly of the commenters noted the fiscal Federal entities are required to report compensated executives. impact of subaward reporting and the data on subaward obligations. In Because most aspects of this guidance provision in the Transparency Act that addition, the General Services were proposed in 2008, with provides for recovering the additional Administration’s Paperwork Reduction opportunity for comment, and given the costs. Some State agencies expressed Act information collection also provides public benefits to be gained by concern that the increased the specific data elements required for expediting the implementation of administration costs would deplete Transparency Act reporting. subaward reporting under the resources available for program There is an important distinction to Transparency Act, we are publishing purposes and some suggested that the be made between the policy guidance this guidance as interim final. new requirement is an unfunded contained in this Federal Register The following section provides mandate. Some institutions of higher notice and the operational details on detailed responses to comments that we education noted that the limitation in what and how to report. Under the received on the portions of the guidance OMB Circular A–21 on recovery of current statute, non-Federal entities will proposed in 2008 that are relevant to indirect costs could prevent them from be required to report subaward data, a subaward reporting. Each response recovering those costs from their basic requirement that does not depend describes any revisions that we Federal awards. Some State agencies on the specific data elements and

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procedural details. The policy guidance paragraph (d)(1) of section 2 of the guidance is distinct from that of the and the award term it contains are the Transparency Act. Various audits and operational details. What requires PRA means for having agencies formally reviews have been conducted on clearance, as correctly noted by the communicate that basic statutory Recovery Act implementation. Some of second commenter, are the data requirement to recipients and the reports from those reviews are elements and similar details for which subrecipients. Neither the guidance nor available on the Recovery.gov Web site reporting burdens can be estimated. The the award term needs to contain the under the ‘‘Accountability’’ section and General Services Administration has operational details about the specific include information on recipient recently published the information data elements to be reported or how to challenges with implementing reporting collections for public comment that submit the data. Both need to be in requirements under the Recovery Act. provide the specific data elements place now so that agencies can use the In a memorandum dated April 6, 2010 required for Transparency Act reporting award term to provide timely with the subject line ‘‘Open Government of subawards and executive notification to recipients and Directive—Federal Spending compensation [75 FR 43165]. It is not subrecipients about their Transparency,’’ OMB established an pertinent to the issuance of the guidance responsibilities. October 1, 2010 deadline for Federal in this Federal Register notice on the Nonetheless, we fully recognize that agencies to initiate subaward reporting basic statutory requirement to report. the operational details also are very pursuant to the Transparency Act and Comment: With respect to the important. To ensure adequate provide a timeline for additional requirement to report each action under opportunity for public comment, we guidance to assist in meeting the goals a subaward that obligates $25,000 or have published the data elements and established in the memorandum. more in Federal funding, ten other details that affect the public. Comment: Three commenters pointed commenters recommended raising the Further, we have made every effort to out that the proposed guidance did not $25,000 threshold due to the potential minimize the burden associated with include a detailed implementation of a magnitude of the burdens, especially on Transparency Act reporting, through Transparency Act provision that small entities. The commenters both pre-population of data and use of provides an exemption from the suggested setting the threshold at an electronic system that facilitates subaward reporting requirement for an $100,000 or more, to be parallel with streamlined reporting [75 FR 43165– entity that demonstrates to the Director their State’s reporting requirement, the 43166]. With respect to the question of OMB that its gross income, from all simplified acquisition threshold for concerning the exception process, the sources, did not exceed $300,000 in the Federal procurement contracts, or the Transparency Act does not provide for previous tax year. The Act provides for threshold in OMB Circular A–133 at exceptions due to unresolved systems the exemption until the Director which an entity must have a single issues. determines that the imposition of the audit. One State agency asked if it could Comment: Twenty two commenters reporting requirement will not place an request a waiver to increase that recommended delaying the January 1, undue burden on such entities. The threshold. 2009, date on which the Transparency commenters noted that the guidance did Response: We made no change to the Act provided that subaward reporting not disclose how to request a reporting threshold in the guidance. The $25,000 would begin. They stated that the exemption, what proofs would be threshold is set by the Transparency Act implementation timeframe was not required, and what evaluation factors and there is no provision in the statute reasonable, especially since the OMB would use in granting exemptions. that authorizes a waiver to increase the procedures for compiling and Response: The award term in threshold. submitting the data would not be set Appendix A to part 170 of the guidance Comment: Four commenters stated until after completion of a pilot that had properly includes that exception to the that the new subaward reporting not yet begun. Seven of the commenters subaward reporting requirement. requirement overlapped with at least also recommended that OMB grant the Section 2(e) of the Transparency Act some Federal agencies’ existing 18-month extension to the deadline that allows the Director, OMB, to exempt requirements for reporting on the Act allowed for subrecipients under any entity that demonstrates its gross subawards. As an example, one awards to State, local, and tribal income, from all sources, did not exceed commenter cited information about governments, if the Director of OMB $300,000 in the entity’s previous tax subawards that applications to agencies determined that compliance would year, from reporting the first-tier either contain or could be amended to impose an undue burden for those subaward information, until the Director contain. Two non-Federal entities and subrecipients. determines that the imposition of the one Federal agency were concerned that Response: A subaward reporting pilot reporting requirement will not cause the existing and new requirements was conducted in the Fall of 2008 to undue burden on the entity. The could be redundant, thereby assess the burden of subaward reporting Director has exempted entities that fall unnecessarily increasing the burdens of on recipients and subrecipients. The under this category at this time. subaward reporting. One Federal agency results of the pilot were mixed and Comment: Two commenters raised stated that it currently obtained showed that there were various questions concerning the applicability information about all subawards, and unresolved policy and procedural issues of the Paperwork Reduction Act (PRA). not just those above the $25,000 surrounding subaward reporting. In One stated that the Transparency Act threshold, and did not want to lose 2009, the Recovery Act was enacted and and guidance did not comply with the insight into the subawards below required reporting of funds awarded to PRA. The other suggested that OMB $25,000 due to the Transparency Act prime recipients, subrecipients and could not yet provide the PRA clearance threshold. vendors. The Recovery Act reporting for the information collection associated Response: Relatively few Federal effort, which commenced in October with subaward reporting, because the agency awarding offices currently obtain 2009, served as a demonstration of data elements and format were not the details about each subaward subaward reporting on a specified in the guidance proposed on obligation that they would need to do governmentwide scale which is why we 2008. the reporting under the Transparency consider it to be the pilot program for Response: As stated in the response to Act. Many agencies receive individual subaward reporting envisioned by a previous comment, the nature of the applications that identify the applicant’s

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intent to make a subaward of a specified stimulate financing for small and rural data regarding other Federal awards.’’ amount if its application is successful. businesses. The commenter The Transparency Act’s definition of However, the actual subaward recipient recommended not applying the ‘‘federal award’’ includes types of may not be known at that time or, if guidance to loan guarantees under those financial assistance awards that are not known, the amount that a successful programs until a Federal Register notice subject to the administrative applicant obligates may not be the same was published, with an opportunity to requirements in 2 CFR part 215, and as it originally planned and proposed, comment, that proposed applying therefore includes them both at the for various reasons (e.g., the Federal Transparency Act requirements to those prime tier between Federal agencies and award it receives may be for a lesser programs specifically. recipients and at lower tiers between amount than it proposed or it may Response: Although the 2008 Federal recipients and subrecipients. While only rebudget after receiving the award, as Register notice proposed applicability subawards under grants and cooperative pertinent Federal rules allow it to do of the guidance broadly to all of the agreements need to be reported at this without the Federal agency’s prior types of financial assistance subject to time, subawards under all types of approval). Given that what the the Transparency Act, we revised the Federal financial assistance subject to application describes is only a plan, it interim final guidance to implement at the Transparency Act will need to be cannot serve as a definitive source of this time only the reporting reported at a later date. information for Transparency Act requirements specifically for first-tier Comment: One Federal agency purposes. At this time, we are not subawards under grants and cooperative expressed concern that it would be asking for reporting of subaward agreements in light of these public difficult to provide an actual dollar information below the first-tier. comments and concerns. We are amount associated with a transfer of With respect to the relatively few deferring to a later date the title to Federally owned property. Federal awarding offices that do obtain implementation of subaward reporting Response: We revised the definition post-award data on actual subaward under other financial assistance subject of ‘‘Federal financial assistance subject obligations, we are directing those to the Act, which includes loans and to the Transparency Act’’ in that section agencies to take the necessary steps to loan guarantees, as well as lower-tier (which now is section 170.320) to ensure that their recipients are not subawards. clarify that the guidance does not apply required, due to the combination of We understand the legitimate concern to transfers of title to Federally owned agency-specific and Transparency Act that additional administrative property. reporting requirements, to submit the requirements can have an impact on Comment: One Federal agency same or similar data multiple times financial assistance applicants and suggested amending the proposed during a given reporting period. recipients under any Federal program. guidance to explicitly exclude Comment: Five commenters asked However, to publish a notice that lists Cooperative Research and Development about the consequences of a the hundreds of programs individually Agreements (CRDAs) under 15 U.S.C. subrecipient’s noncompliance with would be unnecessary and impractical. 3710a from coverage under the requirements related to the Comment: One Federal agency Transparency Act. CRDAs are Transparency Act. Two commenters suggested we make it clearer that instruments authorized for use between expressed concern that delivery of financial assistance provided through Federal laboratories and non-Federal essential services could be interrupted if assessed and voluntary contributions is entities for technology transfer awards could not be made or payments subject to the guidance, by explicitly purposes. The commenter noted that the had to be suspended. listing that type of assistance in the statute permits a Federal laboratory to Response: After a subaward is made, proposed definition of ‘‘Federal receive funds from a non-Federal entity the range of consequences that may financial assistance subject to the under a CRDA and expressed concern result from the subrecipient’s material Transparency Act.’’ The definition in that a funds transfer might be perceived failure to comply with a requirement section 33.325 of the proposed guidance as a subaward to the Federal laboratory. related to the Transparency Act should included them only implicitly, through Response: We agree and made a be no different than it is for a material the inclusion of a category of ‘‘other change to the definition of ‘‘Federal failure to comply with other Federal financial assistance transactions that financial assistance subject to the requirements. The same remedies are authorize the non-Federal entities’ Transparency Act’’ in that section available to the recipient and—should expenditure of Federal funds.’’ (which now is section 170.320) of the the matter of a subrecipient entity’s Response: We agree and made the guidance. The definition of ‘‘cooperative noncompliance become an issue for the change to the guidance (in what now is research and development agreement’’ Federal Government—to a Federal section 170.320). in 15 U.S.C. 3710a excludes transactions agency. Comment: A Federal agency under which Federal funds are provided recommended that the guidance not to non-Federal entities. It also C. Comments Related to the apply to loans, loan guarantees, interest distinguishes CRDAs, which are not Applicability of the Guidance subsidies, and insurance that recipients Federal financial assistance awards, Comment: One commenter stated that provide as subawards to subrecipients. from cooperative agreements under the the guidance should not apply to loan The agency stated that the Transparency Federal Grant and Cooperative guarantees because the definition of Act did not explicitly identify them as Agreement Act in 31 U.S.C., chapter 63. ‘‘federal award’’ in the Transparency Act subawards and their inclusion would be Comment: One commenter noted that does not explicitly mention them. The inconsistent with coverage of the the proposed guidance did not apply to commenter expressed concern that the administrative requirements for grants a Federal agency that receives an award requirement in the guidance for lenders, to and agreements with educational and from another agency and asked whether small businesses, and rural businesses other nonprofit organizations that are in it would apply to an award that a to obtain DUNS numbers could be an 2 CFR part 215 (OMB Circular A–110). Federal agency receives from a non- added barrier to their participation in Response: We did not revise the Federal entity. U.S. Department of Agriculture (USDA) guidance. The Act requires OMB to Response: Yes, the guidance applies. rural development and Small Business ‘‘ensure that data regarding subawards The non-Federal entity would have to Administration (SBA) programs that are disclosed in the same manner as report the subaward. At this time, the

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non-Federal entity would not have to cooperative agreements with an award commenters asked how the date of report lower-tier subawards. To clarify date on or after October 1, 2010, and obligation would be defined for a this, we revised the definition of ‘‘entity’’ resulting first-tier subawards, are subject subaward that allowed reimbursement in the award term that now is in to the reporting requirements in this of pre-award costs a subrecipient Appendix A to part 170. guidance. New Federal grants and incurred on or after a ‘‘start date’’ that Comment: One commenter stated that cooperative agreements are grants and was prior to the date on which the it acts as a fund manager overseeing cooperative agreements with a new subaward was signed. accounts for Federal agencies into Federal Award Identification Number Response: With respect to a subaward, which voluntary payments, court- (FAIN) as of October 1, 2010. They do an obligating action is a transaction that ordered settlements, fines, and other not include obligating actions on or after makes available to the subrecipient a sources of funds are deposited. It noted October 1, 2010, that provide additional known amount of funding for program that the Federal agency specifies the funding under continuing grants and purposes. Examples include a new entities to whom funds from those cooperative agreements awarded in subaward, an incremental funding accounts are obligated. The commenter prior fiscal years. amendment that increases the total asked if it is the recipient in that case amount of a subaward, or a quarterly and the other entities are the D. Other Comments allotment under a formula grant subrecipients, or if the entities to whom Comment: Two commenters raised program. it awards the funds are the prime questions about the dates in the We made no change to the guidance, recipients because the Federal agency proposed paragraph 33.200(a)(2). One since ‘‘obligations’’ is a well established makes the funding decisions. commenter asked what was meant by term in OMB’s guidance on Response: If the funds cited in the the effective date of the part cited in administrative requirements for grants comment are available for obligation or paragraph (a)(2)(i). The other and agreements (2 CFR part 215 and the reobligation for Federal program commenter recommended changing the common rule that Federal agencies purposes, this situation is somewhat date in paragraph (a)(2)(ii). That adopted to implement OMB Circular A– similar to that of a grant under which paragraph required a Federal agency to 102). Under most Federal grants and the recipient is authorized to: (1) Make incorporate Transparency Act cooperative agreements, recipients loans for program purposes to requirements into a program regularly report amounts of ‘‘unobligated subrecipients; (2) merge the funds announcement or other application balances’’ to Federal agencies on the received from those subrecipients’ loan instructions if awards would be made standard financial reporting forms. payments back into the corpus of grant after October 1, 2008, in response to The date of obligation for a subaward funding; and (3) use those repaid funds applications using those instructions. is the date on which the recipient to make new loans. In both that case and The commenter recommended changing authorizes the subrecipient to incur the case raised by the commenter, the the date to December 31, 2008. costs against the known amount it non-Federal entity that manages Federal Response: The guidance in 2 CFR part obligates, and does so in a way that agency funds that are available for 170 is effective today, with its legally obliges the recipient to provide program purposes is the recipient. The publication in the Federal Register. We funds to cover costs that are incurred in entities that receive the funds that the revised the date in paragraph accordance with the subaward’s terms recipient obligates or reobligates are 170.200(a)(2)(ii) to October 1, 2010. and conditions. That date usually is subrecipients. Comment: Three commenters noted associated with the signature of a formal Comment: One commenter suggested that some entities may want to take document, either the initial subaward or not applying the reporting requirement advantage of the flexibility that the an amendment to it. That is distinct below the first-tier of subawards under award term in the proposed guidance from the ‘‘start date’’ cited in the mandatory programs such as block and gave a recipient to either: (1) Pass the example of pre-award costs, since we formula grants and other types of responsibility for reporting on lower-tier assume that the subrecipient incurs assistance to State, local, and tribal subawards to the subrecipients who those costs at its own risk, in governments. made those subawards; or (2) do that anticipation of the subaward, and that Response: The Transparency Act does reporting itself, which would require the recipient has no legal obligation— not authorize a limitation on the the recipient to collect the information until it signs the subaward—to provide reporting requirement to the first-tier of from lower-tier subrecipients. One, a award funds to cover those costs. subawards. At this time, however, we State agency, stated that it maintains a Comment: Eight commenters are deferring to a later date the complete data base that should be questioned whether the guidance implementation of the reporting sufficient to meet the Transparency Act required reporting of obligations or requirement below the first-tier. requirements. disbursements as the award amounts. Comment: Six commenters asked Response: We recognize the burdens One commenter recommended that whether the requirements in the associated with subaward reporting and recipients and subrecipients report guidance applied to prior program understand that programs and ‘‘expenditures,’’ the term used in the announcements, awards, and organizations differ. However, prime Transparency Act. Four State agencies subawards. One of the commenters recipients will not have the option to asked how ‘‘obligations’’ would be pointed out that an applicant who delegate reporting of subgrant determined in some programs that already had applied in response to a information to their subrecipients. We adjust the amount a subrecipient previously issued announcement might believe that this may help reduce receives at some time after the initial have decided not to apply if it had been reporting burden on subaward obligation. One of the agencies cited the informed about the Transparency Act recipients. example of the school lunch program, requirements prior to doing so. Others Comment: Six commenters asked for under which the amount obligated is noted they would need to amend clarification on the meaning of the not known until after the subrecipient previously issued awards if the phrases ‘‘date of obligation’’ and expends the funds. requirements applied to them. ‘‘obligating action’’ used in the award Response: The guidance requires Response: New Federal, non-Recovery term in the proposed section 33.220 reporting of each obligation, rather than Act funded grant awards and with respect to subawards. Two each disbursement against the amount

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obligated. If a recipient obligates a the lower-tier transaction is the same as under a grant or cooperative agreement specific known amount for a subaward, the purpose of the substantive program to an entity other than an individual even if it may be adjusted later, it must supported by the Federal award at the who is a natural person, the subaward report the obligation when it is made. prime tier, so that the recipient through is $25,000 or more, and no exemptions For a program like the school lunch that lower tier transaction is in effect apply, the state would need to report the program, however, where the initial handing a portion of the substantive subaward. subaward provides the subrecipient program over to the lower-tier entity for Comment: Three commenters raised with an open-ended authorization of performance, the lower-tier transaction issues with wording in the award term unspecified amount, the obligation date is a subaward. The two examples in the proposed section 33.220 that corresponds to the date on which the follow: related to the $25,000 reporting • amount of the obligation is specified. Example 1: Provision of health threshold for subawards. Two Reporting is required by the end of the services. A Federal program provides commenters asked for clarification on month following the month in which funding to State agencies to deliver a the meaning of ‘‘life of the subaward,’’ as the subaward obligation was made. variety of services for older citizens. If that phrase was used, both in the award Comment: One commenter the State provides funds to a third party term and the associated guidance to recommended revising the requirement to carry out a type of service (e.g., Federal agencies on use of the award to report each obligating action within mental health services) that is term. Another commenter suggested that 30 days of the date of obligation. The authorized under the program and the readers might perceive ‘‘$25,000 over commenter suggested allowing reporting State otherwise might deliver itself, the the life of the subaward’’ to be quarterly, semiannually, or annually. agreement is a subaward because the inconsistent with ‘‘each action that Response: We changed the guidance third party is carrying out substantive obligates $25,000 or more in Federal and award term to require obligations to programmatic activity that is the funding.’’ One of the commenters also be reported no later than the end of the purpose of the Federal award. If a suggested consistent wording to replace month following the month of the recipient or subrecipient obtains the ‘‘a total value of $25,000’’ in one obligation. For example, if a subaward services of a third party to help in paragraph and ‘‘in that range’’ in another is made on October 2, 2010, the designing public service paragraph. subaward information must be reported announcements or developing Response: With respect to the by no later than November 30, 2010. educational materials about the comment concerning the apparent Comment: Ten commenters requested program—goods or services that the inconsistency between ‘‘a total value of additional clarification about the State or subrecipient needs to carry out 25,000’’ and ‘‘each action that obligates difference between a subaward, which the program that is the purpose of the $25,000 or more in Federal funding,’’ it must be reported under the award—that would be a procurement should be noted that the two phrases Transparency Act, and procurement under the award or subaward. under an award, which is not subject to • Example 2: Research. An agency refer to related but different the reporting requirement. makes an award to a university to requirements addressing lower-tier Response: It is worth noting that investigate basic physics to understand subaward reporting. We have revised recipients for many years have had to why certain materials have the the interim final guidance to show that judge whether a transaction under their properties they do. To do some of the only recipient reporting of first-tier Federal award was a subaward or a experiments, the university researchers subawards will be required at this time, procurement action. That is because a need an instrument that does not yet and therefore, the comment is no longer recipient must include different exist. The university provides funding relevant. We have replaced the phrase requirements in a subaward than it does under the Federal award to a small firm ‘‘life of the subaward’’ with alternative in a procurement under an award, in to carry out a research and development wording that more clearly specifies accordance with the administrative project and develop an instrument. The when a recipient must include the requirements in 2 CFR part 215 (OMB award to the firm has the purpose of Transparency Act reporting requirement Circular A 110) or the common rule instrument development, and does not in a subaward it makes to a implementing OMB Circular A 102. have the same purpose as the Federal subrecipient. For new Federal grants or Also, when the transaction provides award. The award to the firm is a cooperative agreements as of October 1, funds to a for-profit entity, the recipient procurement action. If the university 2010, if the initial award is $25,000 or must properly take into account instead made an award to the firm to more, reporting of subaward whether the transaction would be more perform some of the basic research on information is required. If the initial characteristic of a vendor relationship physics of materials that is the award is below $25,000 but subsequent than a subrecipient under ___.210 of substantive program purpose of the award modifications result in a total OMB Circular A–133. The judgments a Federal award, and the recipient award of $25,000 or more, the award is recipient must make to decide whether determines it does not have a vendor subject to the reporting requirements, as a lower tier agreement is a subaward or relationship with the firm under this of the date the award exceeds $25,000. procurement for Transparency Act award as described in Sec. __.210 of the If the initial award is $25,000 or more, reporting purposes are the same as the attachment to OMB Circular A–133, the but funding is subsequently de- judgments it makes to establish which award to the firm would be a subaward. obligated such that the total award terms and conditions to include in the Comment: One commenter from a amount falls below $25,000, the award agreement. Prime recipients should refer State agency said that it is unclear continues to be subject to the reporting to awarding agency supplemental whether Medicaid is considered Federal requirements of the Transparency Act. guidance, if any, in making such a financial assistance for the purposes of Comment: One commenter asked for determination. the subaward reporting requirement. clarification concerning reporting Two examples may help clarify the Response: There are no program requirements for incrementally funded distinction, which is based on the exemptions under this guidance even subawards. The commenter gave as an purpose of the transaction between the though there are other types of example a subaward that a recipient recipient or subrecipient and the entity exemptions which are described in the expected to exceed $25,000 over the at the next lower tier. If the purpose of guidance. If a state makes a subaward duration of the subaward, but for which

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the initial obligation was less than $25,000 but subsequent award List of Subjects in 2 CFR Part 170 $25,000. modifications result in a total award of Business and industry, Colleges and Response: Each action that obligates $25,000 or more, the award is subject to universities, Cooperative agreements, $25,000 or more in Federal funds must the reporting requirements, as of the Farmers, Federal aid programs, Grant be reported. date the award exceeds $25,000. If the programs, Grants administration, Comment: Three commenters asked initial award exceeds $25,000 but Hospitals, Indians, Insurance, whether a recipient or subrecipient funding is subsequently de-obligated International organizations, Loan would be required to report a downward such that the total award amount falls programs, Nonprofit organizations, adjustment in the amount of a subaward below $25,000, the award continues to Reporting and recordkeeping it had made previously. be subject to the reporting requirements Response: We made no change to the requirements, State and local guidance. The award term that now is of the Transparency Act. If a single governments, Subsidies. action obligates funding from multiple in section Appendix A to part 170 of the Danny Werfel, programs, the data submitted for that guidance refers recipients and Controller. subrecipients to the web site at which action would include the CFDA number data submission instructions will be for the program that is the predominant Authority and Issuance source of the Federal funding. If a posted. Those instructions will include ■ For the reasons set forth above, the program’s funding is obligated by a the specific data elements and their Office of Management and Budget separate amendment to the same definitions that, as discussed in Section amends 2 CFR chapter I by adding part subaward agreement that provides other I of this Federal Register notice, have 170 to read as follows: been established through a separate programs’ funding, however, then the process under the Paperwork Reduction data reported for each amendment to the PART 170—REPORTING SUBAWARD Act [75 FR 43165]. The instructions will agreement would include the CFDA AND EXECUTIVE COMPENSATION address whether reporting of reductions number of the program that provided INFORMATION in subaward amounts, sometimes called the funding for that amendment. ‘‘deobligations,’’ are a subcategory of Comment: One commenter asked Sec. obligations to be reported. whether, in light of the new reporting Subpart A—General Comment: One commenter asked requirements, a subrecipient would be 170.100 Purposes of this part. about the requirement to submit subject to Federal audit requirements if changed information other than 170.105 Types of awards to which this part it received $500,000 or more either from applies. subaward amounts, such as a change in a single program or a combination of 170.110 Types of entities to which this part subrecipient information. programs. applies. Response: If the information that was 170.115 Deviations. reported was correct at the time it was Response: The new reporting Subpart B—Policy reported and changed at a later date, requirements under the Transparency there would be no need to subsequently Act do not change the audit 170.200 Requirements for program revise the information in previously requirements in OMB Circular A–133, announcements, regulations, and section ll.200, that apply to a non- application instructions. submitted reports. The updated 170.220 Award term information would be included in Federal entity that expends $500,000 or reports of subsequent obligations under more in ‘‘federal awards’’ (which the Subpart C—Definitions the same subaward, however. Circular defines to include Federal 170.300 Agency. That is distinct from a case in which financial assistance received indirectly 170.305 Award. a recipient later discovers that through pass-through entities). 170.310 Entity. information it reported was erroneous at 170.315 Executive the time it was reported. Questions III. Next Steps 170.320 Federal financial assistance subject to the Transparency Act. concerning error corrections in that case Federal agencies that award Federal 170.325 Subaward. are being considered by the interagency financial assistance subject to the 170.330 Total compensation. group developing the data elements and Transparency Act will implement the Appendix A to Part 170—Award Term information technology systems for interim final guidance in 2 CFR part 170 subaward reporting. As discussed in the Authority: Pub. L. 109–282; 31 U.S.C. through their regulations, internal response to the previous comment, the 6102. policy guidance to awarding offices, process for resolving those issues will program announcements and Subpart A—General include an opportunity for public input. application instructions, and the award Comment: Four commenters asked § 170.100 Purposes of this part. how one would report subawards to term that now is in section Appendix A to part 170. The General Services This part provides guidance to recipients with multiple Federal agencies to establish requirements for funding sources. One commenter asked Administration has recently published in the Federal Register with an recipients’ reporting of information on if the amount of funding from each subawards and executive total program listed in the Catalog of Federal opportunity for public comment the information collections that provide the compensation, as required by the Domestic Assistance (CFDA) would Federal Funding Accountability and need to be reported. specific data elements required for Transparency Act reporting of Transparency Act of 2006 (Pub. L. 109– Response: Each action that obligates 282), as amended by section 6202 of subawards and executive compensation $25,000 or more in Federal funding Public Law 110–252, hereafter referred [75 FR 43165]. The information would need to be separately reported. to as ‘‘the Transparency Act’’. For new Federal grants or cooperative collections will be modified as agreements as of October 1, 2010, if the appropriate in response to public § 170.105 Types of awards to which this initial award is $25,000 or more, comments and published with any other part applies. reporting of subaward information is operational guidelines before recipients This part applies to an agency’s required. If the initial award is below begin reporting data on subawards. grants, cooperative agreements, loans,

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and other forms of Federal financial (2) That either: § 170.315 Executive. assistance subject to the Transparency (i) Is issued on or after the effective Executive means officers, managing Act, as defined in § 170.320. date of this part; or partners, or any other employees in (ii) Has application or plan due dates management positions. § 170.110 Types of entities to which this after October 1, 2010. part applies. (b) The program announcement, § 170.320 Federal financial assistance (a) General. Through an agency’s regulation, or other issuance must subject to the Transparency Act. implementation of the guidance in this require each entity that applies and does Federal financial assistance subject to part, this part applies to all entities, not have an exception under the Transparency Act means assistance other than those excepted in paragraph § 170.110(b) to ensure they have the that non-Federal entities described in (b) of this section, that— necessary processes and systems in § 170.105 receive or administer in the (1) Apply for or receive agency place to comply with the reporting form of— awards; or requirements should they receive (a) Grants; (2) Receive subawards under those funding. (b) Cooperative agreements (which awards. (c) Federal agencies that obtain post- does not include cooperative research (b) Exceptions. (1) None of the award data on subaward obligations and development agreements pursuant requirements in this part apply to an outside of this policy should take the to the Federal Technology Transfer Act individual who applies for or receives necessary steps to ensure that their of 1986, as amended (15 U.S.C. 3710a)); an award as a natural person (i.e., recipients are not required, due to the (c) Loans; unrelated to any business or non-profit combination of agency-specific and (d) Loan guarantees; organization he or she may own or Transparency Act reporting (e) Subsidies; (f) Insurance; operate in his or her name). requirements, to submit the same or (2) None of the requirements (g) Food commodities; similar data multiple times during a (h) Direct appropriations; regarding reporting names and total given reporting period. compensation of an entity’s five most (i) Assessed and voluntary highly compensated executives apply § 170.220 Award term. contributions; and (j) Other financial assistance unless in the entity’s preceding fiscal (a) To accomplish the purposes transactions that authorize the non- year, it received— described in § 170.100, an agency must Federal entities’ expenditure of Federal (i) 80 percent or more of its annual include the award term in Appendix A funds. gross revenue in Federal procurement to this part in each award to a non- (b) Does not include— contracts (and subcontracts) and Federal Federal entity under which the total (1) Technical assistance, which financial assistance awards subject to funding will include $25,000 or more in provides services in lieu of money; the Transparency Act, as defined at Federal funding at any time during the (2) A transfer of title to Federally § 170.320 (and subawards); and project or program period. owned property provided in lieu of (ii) $25,000,000 or more in annual (b) An agency— money, even if the award is called a gross revenue from Federal procurement (1) Consistent with paragraph (a) of grant; contracts (and subcontracts) and Federal this section, is not required to include (3) Any classified award; or financial assistance awards subject to the award term in Appendix A to this (4) Any award funded in whole or in the Transparency Act, as defined at part if it determines that there is no part with Recovery funds, as defined in § 170.320; and possibility that the total amount of section 1512 of the American Recovery (3) The public does not have access to Federal funding under the award will and Reinvestment Act of 2009 (Pub. L. information about the compensation of equal or exceed $25,000. However, the 111–5). the senior executives through periodic agency must subsequently amend the reports filed under section 13(a) or 15(d) award to add the award term if changes § 170.325 Subaward. of the Securities Exchange Act of 1934 in circumstances increase the total Subaward has the meaning given in (15 U.S.C. 78m(a), 78o(d)) or section Federal funding under the award to paragraph e.3 of the award term in 6104 of the Internal Revenue Code of $25,000 or more during the project or Appendix A to this part. 1986. program period. 170.330 Total compensation. § 170.115 Deviations. Subpart C—Definitions Total Compensation has the meaning Deviations from this part require the given in paragraph e.5 of the award term prior approval of the Office of § 170.300 Agency. in Appendix A to this part. Management and Budget (OMB). Agency means a Federal agency as defined at 5 U.S.C. 551(1) and further Appendix A to Part 170—Award Term Subpart B—Policy clarified by 5 U.S.C. 552(f). I. Reporting Subawards and Executive Compensation. § 170.200 Requirements for program § 170.305 Award. a. Reporting of first-tier subawards. announcements, regulations, and Award, for the purposes of this part, 1. Applicability. Unless you are exempt as application instructions. effective October 1, 2010, means a grant provided in paragraph d. of this award term, (a) Each agency that makes awards of or cooperative agreement. On future you must report each action that obligates Federal financial assistance subject to dates to be specified by OMB in policy $25,000 or more in Federal funds that does the Transparency Act must include the memoranda available at the OMB Web not include Recovery funds (as defined in requirements described in paragraph (b) section 1512(a)(2) of the American Recovery site, award also will include other types and Reinvestment Act of 2009, Pub. L. of this section in each program of awards of Federal financial assistance announcement, regulation, or other 111–5) for a subaward to an entity (see subject to the Transparency Act, as definitions in paragraph e. of this award issuance containing instructions for defined in § 170.320. term). applicants: 2. Where and when to report. (1) Under which awards may be made § 170.310 Entity. i. You must report each obligating action that are subject to Transparency Act Entity has the meaning given in 2 CFR described in paragraph a.1. of this award reporting requirements; and part 25. term to http://www.fsrs.gov.

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ii. For subaward information, report no assistance subject to the Transparency Act 5. Total compensation means the cash and later than the end of the month following the (and subawards); and noncash dollar value earned by the executive month in which the obligation was made. ii. The public does not have access to during the recipient’s or subrecipient’s (For example, if the obligation was made on information about the compensation of the preceding fiscal year and includes the November 7, 2010, the obligation must be executives through periodic reports filed following (for more information see 17 CFR reported by no later than December 31, 2010.) under section 13(a) or 15(d) of the Securities 229.402(c)(2)): 3. What to report. You must report the Exchange Act of 1934 (15 U.S.C. 78m(a), i. Salary and bonus. information about each obligating action that 78o(d)) or section 6104 of the Internal ii. Awards of stock, stock options, and the submission instructions posted at Revenue Code of 1986. (To determine if the stock appreciation rights. Use the dollar http://www.fsrs.gov specify. public has access to the compensation amount recognized for financial statement b. Reporting Total Compensation of information, see the U.S. Security and reporting purposes with respect to the fiscal Recipient Executives. Exchange Commission total compensation year in accordance with the Statement of 1. Applicability and what to report. You filings at http://www.sec.gov/answers/ Financial Accounting Standards No. 123 must report total compensation for each of execomp.htm.) (Revised 2004) (FAS 123R), Shared Based your five most highly compensated 2. Where and when to report. You must Payments. executives for the preceding completed fiscal report subrecipient executive total iii. Earnings for services under non-equity year, if— compensation described in paragraph c.1. of incentive plans. This does not include group i. the total Federal funding authorized to this award term: life, health, hospitalization or medical date under this award is $25,000 or more; i. To the recipient. reimbursement plans that do not ii. in the preceding fiscal year, you ii. By the end of the month following the discriminate in favor of executives, and are received— month during which you make the subaward. available generally to all salaried employees. (A) 80 percent or more of your annual gross For example, if a subaward is obligated on iv. Change in pension value. This is the revenues from Federal procurement contracts any date during the month of October of a change in present value of defined benefit (and subcontracts) and Federal financial given year (i.e., between October 1 and 31), and actuarial pension plans. assistance subject to the Transparency Act, as you must report any required compensation v. Above-market earnings on deferred defined at 2 CFR 170.320 (and subawards); information of the subrecipient by November compensation which is not tax-qualified. and 30 of that year. vi. Other compensation, if the aggregate (B) $25,000,000 or more in annual gross d. Exemptions value of all such other compensation (e.g. revenues from Federal procurement contracts If, in the previous tax year, you had gross severance, termination payments, value of (and subcontracts) and Federal financial income, from all sources, under $300,000, life insurance paid on behalf of the assistance subject to the Transparency Act, as you are exempt from the requirements to employee, perquisites or property) for the report: defined at 2 CFR 170.320 (and subawards); executive exceeds $10,000. i. Subawards, and [FR Doc. 2010–22705 Filed 9–13–10; 8:45 am] and iii. The public does not have access to ii. The total compensation of the five most BILLING CODE 3110–01–P information about the compensation of the highly compensated executives of any executives through periodic reports filed subrecipient. under section 13(a) or 15(d) of the Securities e. Definitions. For purposes of this award OFFICE OF MANAGEMENT AND Exchange Act of 1934 (15 U.S.C. 78m(a), term: BUDGET 78o(d)) or section 6104 of the Internal 1. Entity means all of the following, as Revenue Code of 1986. (To determine if the defined in 2 CFR part 25: 2 CFR Subtitle A, Chapter I, and Part public has access to the compensation i. A Governmental organization, which is 25 information, see the U.S. Security and a State, local government, or Indian tribe; Exchange Commission total compensation ii. A foreign public entity; Financial Assistance Use of Universal filings at http://www.sec.gov/answers/ iii. A domestic or foreign nonprofit execomp.htm.) Identifier and Central Contractor organization; Registration 2. Where and when to report. You must iv. A domestic or foreign for-profit report executive total compensation organization; AGENCY: Office of Federal Financial described in paragraph b.1. of this award v. A Federal agency, but only as a Management, Office of Management and term: subrecipient under an award or subaward to Budget. i. As part of your registration profile at a non-Federal entity. http://www.ccr.gov. 2. Executive means officers, managing ACTION: Final guidance. ii. By the end of the month following the partners, or any other employees in SUMMARY: OMB is issuing guidance to month in which this award is made, and management positions. annually thereafter. 3. Subaward: Federal agencies concerning two c. Reporting of Total Compensation of i. This term means a legal instrument to requirements for financial assistance Subrecipient Executives. provide support for the performance of any applicants and recipients, and one 1. Applicability and what to report. Unless portion of the substantive project or program requirement for first-tier subrecipients. you are exempt as provided in paragraph d. for which you received this award and that An agency under the guidance must of this award term, for each first-tier you as the recipient award to an eligible require applicants other than subrecipient under this award, you shall subrecipient. individuals, with some specific report the names and total compensation of ii. The term does not include your exceptions, to have Dun and Bradstreet each of the subrecipient’s five most highly procurement of property and services needed compensated executives for the to carry out the project or program (for Data Universal Numbering System subrecipient’s preceding completed fiscal further explanation, see Sec. ll .210 of the (DUNS) numbers and maintain current year, if— attachment to OMB Circular A–133, ‘‘Audits registrations in the Central Contractor i. in the subrecipient’s preceding fiscal of States, Local Governments, and Non-Profit Registration (CCR) database. An agency year, the subrecipient received— Organizations’’). must require applicants and recipients (A) 80 percent or more of its annual gross iii. A subaward may be provided through of grants and cooperative agreements to revenues from Federal procurement contracts any legal agreement, including an agreement comply with the DUNS number and (and subcontracts) and Federal financial that you or a subrecipient considers a CCR requirements by October 1, 2010 assistance subject to the Transparency Act, as contract. defined at 2 CFR 170.320 (and subawards); 4. Subrecipient means an entity that: and require applicants and recipients of and i. Receives a subaward from you (the all other financial assistance types to (B) $25,000,000 or more in annual gross recipient) under this award; and comply by October 1, 2011. The revenues from Federal procurement contracts ii. Is accountable to you for the use of the guidance provides standard wording for (and subcontracts), and Federal financial Federal funds provided by the subaward. a new award term that each agency must

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include in its financial assistance FR 38402] and communicated to Federal for recipients that receive awards from awards to require recipients to maintain agencies in OMB Memorandum M–03– multiple agencies. current CCR registrations, which 16. The requirement was broadened to Applicants and recipients of grants requires that they also have DUNS include applicants for other types of and cooperative agreements must numbers. The guidance also specifies Federal financial assistance subject to comply with the policy by October 1, that each recipient may make subawards the Transparency Act in 2008, in OMB 2010. Applicants and recipients of all only to entities that have DUNS Memorandum 08–19. Therefore, the sole other financial assistance types must numbers. effect of the guidance following this comply by a date to be provided by the agency. DATES: Effective September 14, 2010. preamble is to relocate the requirement in the Code of Federal Regulations, in 2 FOR FURTHER INFORMATION CONTACT: III. Comments and Responses CFR part 25. Marguerite Pridgen, Office of Federal There are several existing We received comments on the Financial Management, Office of proposed guidance in 2 CFR part 25 Management and Budget, telephone requirements concerning applicants’ registration in the CCR. For example, an from three State agencies and three (202) 395–7844. Federal agencies. We considered the applicant must be registered in CCR if SUPPLEMENTARY INFORMATION: comments in developing the final it wants to submit its applications guidance, which closely parallels the I. Summary of Changes electronically through Grants.gov. In proposed guidance. We made some another example, several providers of On February 18, 2010 (75 FR 7316), changes based on the recommendations payment management services require OMB proposed a number of changes to and others for clarity. The following that recipients be registered in CCR title 2 of the Code of Federal paragraphs summarize the comments before receiving payments. As yet Regulations (2 CFR). Some of the and our responses: proposed changes were to provide new another example, OMB Memorandum Comment: Three State agencies guidance to agencies that was needed to M–09–10 required applicants for commented on the requirements for implement section 872 of the Duncan funding under the American Recovery first-tier subrecipients in the award term Hunter National Defense Authorization and Reinvestment Act of 2009 (Pub. L. in Appendix A to the proposed 2 CFR Act for Fiscal Year 2009 (Pub. L. 110– 111–5, hereafter referred to as ‘‘the part 25. Two agencies cited burdens on 417, hereafter referred to as ‘‘section Recovery Act’’) to register in CCR. The subrecipients and the Transparency 872’’), as that statute applies to grants. guidance following this preamble Act’s definition of ‘‘Federal award’’ as Some of the other proposed changes broadens the existing requirements to reasons to exempt a subrecipient from were to update guidance that existed all other applicants for Federal financial the requirement to register in the CCR elsewhere and relocate it in 2 CFR to assistance awards subject to the if the amount of the subaward is provide needed context for the new Transparency Act. $25,000 or less. The third agency asked guidance implementing section 872. Similarly, the requirement for whether the prime recipient would be The remaining changes were recipients to maintain their registration required to submit verification of administrative in nature, to create seven in the CCR throughout the period of subrecipients’ compliance with the CCR subchapters in 2 CFR, Chapter I, as a performance under their awards is not requirement to the Federal agency and, better organizational framework for entirely new. The final OMB guidance if so, how frequently it would be existing and future content in that on reporting under the Recovery Act, required to do so. One of the agencies chapter. OMB Memorandum M–09–21, requires also recommended exempting OMB now is finalizing some of those recipients to register in CCR in order to subrecipients with awards of $25,000 or proposed changes, with the rest to access the FederalReporting.gov site at less from the requirement to obtain a follow separately. The substantive which they must report. That DUNS number. changes being finalized relate to the use memorandum also allows a recipient to Response: Agree in part. We revised of DUNS numbers and registration in delegate some reporting responsibilities the final guidance so that there is no the CCR. These changes are being to its first-tier subrecipients, in which requirement at this time for any finalized separately and expedited case those subrecipients must register in subrecipient to register in the CCR. because they will enhance the quality of the CCR in order to report (a first-tier Concerning the requirement for first-tier information available to the public subrecipient is one that receives a subrecipients to obtain a DUNS number, when recipients begin on October 1, subaward directly from the prime we did not adopt a $25,000 threshold. 2010 to report information on recipient, as distinct from a lower-tier The DUNS number still is the only subawards, as required by the Federal subrecipient that receives a subaward identifier with the advantages that led Funding Accountability and from another subrecipient). For prime us to establish it in 2003 as the Transparency Act of 2006 (Pub. L. 109– recipients, the guidance following this universal identifier for recipients of 282, as amended, hereafter referred to as preamble broadens the existing grants and cooperative agreements (see ‘‘the Transparency Act’’). OMB also is Recovery Act requirement to recipients the preamble to 68 FR 38403, June 27, finalizing the administrative changes of other awards subject to the 2003). We do not agree that the one-time proposed in February 2010, by creating Transparency Act. Although the requirement to obtain a DUNS number the new subchapters in 2 CFR, Chapter guidance proposed in February 2010 is an undue hardship. We appreciate I. would have broadened the CCR that first-tier subrecipients who are not requirement to first-tier subrecipients, also prime recipients of other Federal II. Relationship to Existing the final guidance being adopted at this awards may need to adjust their Requirements time does not require CCR registration procedures and systems initially to The requirement for applicants to for any subrecipients. accommodate the DUNS number have DUNS numbers is not new. OMB The standard award term that requirement, but we believe that the established the DUNS requirement for agencies must use to communicate the long-term benefits to transparency applicants for grants or cooperative DUNS and CCR requirements to justify those changes. agreements in 2003. The policy was recipients is new. It will help ensure Comment: Two Federal agencies published in the Federal Register [68 Government-wide uniformity, a benefit commented on the definition of ‘‘award’’

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in section 25.305 of the proposed 2 CFR issuing amendments to the previously 25.320 Entity. part 25. One agency questioned whether issued announcements. 25.325 For-profit organization. excluding technical assistance and 25.330 Foreign public entity. List of Subjects in 2 CFR Part 25 transfers of Federally owned property 25.335 Indian Tribe (or ‘‘Federally ’’ from the definition could have the Administrative practice and recognized Indian Tribe ). 25.340 Local government. inadvertent effect of exempting them procedures, Grants administration, Grant programs, Loan programs. 25.345 Nonprofit organization. from the effects of suspension and 25.350 State. debarment actions taken under 2 CFR Danny Werfel, 25.355 Subaward. part 180, in which the term Controller. 25.360 Subrecipient. ‘‘nonprocurement transaction’’ is Appendix A to Part 25—Award Term defined in a way that would include Authority and Issuance Authority: Pub. L. 109–282; 31 U.S.C. them. The second agency suggested ■ For the reasons set forth above, the 6102. ‘‘ adding the words for the purposes of Office of Management and Budget ’’ this part to the definition. amends 2 CFR, subtitle A, as follows: Subpart A–General Response: Agree to add ‘‘for the purposes of this part’’ for added clarity, SUBTITLE A § 25.100 Purposes of this part. as the term ‘‘award’’ must be defined in This part provides guidance to each part of 2 CFR in a way that PARTS 2–99—[TRANSFERRED TO agencies to establish: conforms to the purpose of that part. For CHAPTER I] (a) The Dun and Bradstreet (D&B) example, the definitions of ‘‘award’’ in 2 ■ 1. In subtitle A to title 2, parts 2 Data Universal Numbering System CFR parts 182 and 225 differ (DUNS) number as a universal identifier significantly. Part 182 implements the through 99, which are currently reserved, are transferred to chapter I. for Federal financial assistance Drug-Free Workplace Act of 1988 (41 applicants, as well as recipients and ■ 2. Subchapter A to chapter I, U.S.C. 701–707, as amended) and their direct subrecipients. consisting of parts 2 through 19, is defines ‘‘award’’ to include grants and (b) The Central Contractor established and reserved to read as cooperative agreements. The definition Registration (CCR) as the repository for follows: of ‘‘award’’ in 2 CFR part 225, ‘‘Cost standard information about applicants Principles for State, Local, and Indian Subchapter A—General Matters [Reserved] and recipients. Tribal Governments (OMB Circular A– 87),’’ includes not only grants and other PARTS 2–19—[RESERVED] § 25.105 Types of awards to which this financial assistance awards but also cost part applies. ■ reimbursement contracts, because that 3. Subchapter B to chapter I, This part applies to an agency’s part specifies principles and standards consisting of parts 20 through 39, is grants, cooperative agreements, loans, for determining costs for that wider established and added to read as and other types of Federal financial range of Federal funding instruments. follows: assistance included in the definition of Comment: A Federal agency suggested Subchapter B—Pre-Award Responsibilities ‘‘award’’ in § 25.305. The requirements that we delete paragraph 25.200(a)(2) in in this part must be implemented for the proposed 2 CFR part 25 because it PARTS 20–24—[RESERVED] grants and cooperative agreements by would be burdensome for an agency to October 1, 2010. The requirements in modify every program announcement it PART 25—UNIVERSAL IDENTIFIER this part must be implemented for all already had issued under which it AND CENTRAL CONTRACTOR other award forms listed in § 25.200 anticipated making awards after October REGISTRATION requirement at a date to be specified in 1, 2010. It further noted that the Sec. the future. wording included some announcements under which applications already had Subpart A—General § 25.110 Types of recipient and subrecipient entities to which this part been submitted. 25.100 Purposes of this part. Response: We disagree. We did not 25.105 Types of awards to which this part applies. delete paragraph 25.200(a)(2), as applies. (a) General. Through an agency’s suggested. We revised it to require 25.110 Types of recipient and subrecipient implementation of the guidance in this agencies to notify potential applicants entities to which this part applies. part, this part applies to all entities, only in previously issued 25.115 Deviations. other than those exempted in announcements that have due dates for Subpart B—Policy paragraphs (b), (c), and (d) of this applications or plans after October 1, 25.200 Requirements for program section, that— 2010, and not all announcements under announcements, regulations, and (1) Apply for or receive agency which awards would be made after that application instructions. awards; or date. This does not change the fact that 25.205 Effect of noncompliance with a (2) Receive subawards directly from all new awards, as defined in the policy, requirement to obtain a DUNS number or recipients of those agency awards. after October 1, 2010 must reflect this register in the CCR. (b) Exemptions for individuals. None 25.210 Authority to modify agency reporting requirement. Providing application forms or formats. of the requirements in this part apply to potential applicants with more complete 25.215 Requirements for agency an individual who applies for or information about the requirements information systems. receives Federal financial assistance as with which they will have to comply if 25.220 Use of award term. a natural person (i.e., unrelated to any their applications are successful is Subpart C—Definitions business or non-profit organization he important, in order to enable them to or she may own or operate in his or her make better informed decisions on 25.300 Agency. name). 25.305 Award. whether to invest the time and expense 25.310 Central Contractor Registration (c) Exemptions for Federal agencies. in preparing applications. That benefit (CCR). The requirement in this part to maintain for potential applicants justifies the 25.315 Data Universal Numbering System a current registration in the CCR does burdens on agencies associated with (DUNS) Number. not apply to an agency of the Federal

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Government that receives an award from (b) The program announcement, (2) May use that determination as a another agency. regulation, or other issuance must basis for making an award to another (d) Other exemptions. (1) Under a require each entity that applies and does applicant. condition identified in paragraph (d)(2) not have an exemption under § 25.110 of this section, an agency may exempt to: § 25.210 Authority to modify agency application forms or formats. an entity from an applicable (1) Be registered in the CCR prior to requirement to obtain a DUNS number, submitting an application or plan; To implement the policies in register in the CCR, or both. (2) Maintain an active CCR §§ 25.200 and 25.205, an agency may (i) In that case, the agency must use registration with current information at add a DUNS number field to application a generic DUNS number in data it all times during which it has an active forms or formats previously approved reports to USASpending.gov if reporting Federal award or an application or plan by OMB, without having to obtain for a prime award to the entity is under consideration by an agency; and further approval to add the field. required by the Federal Funding (3) Provide its DUNS number in each § 25.215 Requirements for agency Accountability and Transparency Act application or plan it submits to the information systems. (Pub. L. 109–282, hereafter cited as agency. ‘‘Transparency Act’’). Each agency that makes awards (as (c) For purposes of this policy: (ii) Agency use of a generic DUNS defined in § 25.325) must ensure that should be used rarely for prime award (1) The applicant is the entity that systems processing information related reporting because it prevents prime meets the agency’s or program’s to the awards, and other systems as awardees from being able to fulfill the eligibility criteria and has the legal appropriate, are able to accept and use subward or executive compensation authority to apply and to receive the the DUNS number as the universal reporting required by the Transparency award. For example, if a consortium identifier for financial assistance Act. applies for an award to be made to the applicants and recipients. consortium as the recipient, the (2) The conditions under which an § 25.220 Use of award term. agency may exempt an entity are— consortium must have a DUNS number. (i) For any entity, if the agency If a consortium is eligible to receive (a) To accomplish the purposes determines that it must protect funding under an agency program but described in § 25.100, an agency must information about the entity from the agency’s policy is to make the award include in each award (as defined in disclosure, to avoid compromising to a lead entity for the consortium, the § 25.305) the award term in Appendix A classified information or national DUNS number of the lead entity will be to this part. (b) An agency may use different security or jeopardizing the personal used. letters and numbers than those in safety of the entity’s clients. (2) A ‘‘program announcement’’ is any (ii) For a foreign entity applying for or paper or electronic issuance that an Appendix A to this part to designate the receiving an award or subaward for a agency uses to announce a funding paragraphs of the award term, if project or program performed outside opportunity, whether it is called a necessary, to conform the system of the United States valued at less than ‘‘program announcement,’’ ‘‘notice of paragraph designations with the one $25,000, if the agency deems it to be funding availability,’’ ‘‘broad agency used in other terms and conditions in impractical for the entity to comply announcement,’’ ‘‘research the agency’s awards. announcement,’’ ‘‘solicitation,’’ or some with the requirement(s). Subpart C—Definitions (3) Agencies’ use of generic DUNS other term. numbers, as described in paragraphs (3) To remain registered in the CCR § 25.300 Agency. (d)(1) and (2) of this section, should be database after the initial registration, the Agency means a Federal agency as rare. Having a generic DUNS number applicant is required to review and defined at 5 U.S.C. 551(1) and further limits a recipient’s ability to use update on an annual basis from the date clarified by 5 U.S.C. 552(f). Governmentwide systems that are of initial registration or subsequent needed to comply with some reporting updates its information in the CCR § 25.305 Award. requirements. database to ensure it is current, accurate (a) Award, for the purposes of this and complete. part, means an award of Federal § 25.115 Deviations. financial assistance that a non-Federal Deviations from this part require the § 25.205 Effect of noncompliance with a entity described in § 25.110(a) receives prior approval of the Office of requirement to obtain a DUNS number or register in the CCR. or administers in the form of— Management and Budget (OMB). (1) A grant; (a) An agency may not make an award (2) A cooperative agreement (which Subpart B—Policy to an entity until the entity has does not include a cooperative research § 25.200 Requirements for program complied with the requirements and development agreement pursuant to announcements, regulations, and described in § 25.200 to provide a valid the Federal Technology Transfer Act of application instructions. DUNS number and maintain an active 1986, as amended (15 U.S.C. 3710a)); (a) Each agency that awards types of CCR registration with current (3) A loan; Federal financial assistance included in information (other than any requirement (4) A loan guarantee; the definition of ‘‘award’’ in § 25.305 that is not applicable because the entity (5) A subsidy; must include the requirements is exempted under § 25.110). (6) Insurance; described in paragraph (b) of this (b) At the time an agency is ready to (7) Food commodities; section in each program announcement, make an award, if the intended recipient (8) A direct appropriation; regulation, or other issuance containing has not complied with an applicable (9) Assessed or voluntary instructions for applicants that either: requirement to provide a DUNS number contributions; or (1) Is issued on or after the effective or maintain an active CCR registration (10) Any other financial assistance date of this part; or with current information, the agency: transaction that authorizes the non- (2) Has application or plan due dates (1) May determine that the applicant Federal entity’s expenditure of Federal after October 1, 2010. is not qualified to receive an award; and funds.

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(b) An Award does not include: Claims Settlement Act (43 U.S.C. 1601, Appendix A to Part 25—Award Term (1) Technical assistance, which et seq.)) that is recognized by the United I. Central Contractor Registration and provides services in lieu of money; and States as eligible for the special Universal Identifier Requirements (2) A transfer of title to Federally programs and services provided by the owned property provided in lieu of United States to Indians because of their A. Requirement for Central Contractor money, even if the award is called a status as Indians. Registration (CCR) grant. Unless you are exempted from this § 25.340 Local government. requirement under 2 CFR 25.110, you as the § 25.310 Central Contractor Registration Local government means a: recipient must maintain the currency of your (CCR). (a) County; information in the CCR until you submit the Central Contractor Registration (CCR) (b) Borough; final financial report required under this has the meaning given in paragraph C.1 (c) Municipality; award or receive the final payment, of the award term in Appendix A to this (d) City; whichever is later. This requires that you part. (e) Town; review and update the information at least (f) Township; annually after the initial registration, and § 25.315 Data Universal Numbering (g) Parish; more frequently if required by changes in System (DUNS) Number. (h) Local public authority, including your information or another award term. Data Universal Numbering System any public housing agency under the B. Requirement for Data Universal (DUNS) Number has the meaning given United States Housing Act of 1937; Numbering System (DUNS) Numbers in paragraph C.2 of the award term in (i) Special district; (j) School district; If you are authorized to make subawards Appendix A to this part. (k) Intrastate district; under this award, you: (l) Council of governments, whether 1. Must notify potential subrecipients that § 25.320 Entity. no entity (see definition in paragraph C of or not incorporated as a nonprofit Entity, as it is used in this part, has this award term) may receive a subaward corporation under State law; and the meaning given in paragraph C.3 of from you unless the entity has provided its (m) Any other instrumentality of a the award term in Appendix A to this DUNS number to you. local government. part. 2. May not make a subaward to an entity § 25.345 Nonprofit organization. unless the entity has provided its DUNS § 25.325 For-profit organization. number to you. Nonprofit organization— For-profit organization means a non- (a) Means any corporation, trust, C. Definitions Federal entity organized for profit. It association, cooperative, or other For purposes of this award term: includes, but is not limited to: organization that— 1. Central Contractor Registration (CCR) (a) An ‘‘S corporation’’ incorporated (1) Is operated primarily for scientific, means the Federal repository into which an under Subchapter S of the Internal educational, service, charitable, or entity must provide information required for Revenue Code; similar purposes in the public interest; the conduct of business as a recipient. (b) A corporation incorporated under (2) Is not organized primarily for Additional information about registration another authority; profit; and procedures may be found at the CCR Internet (c) A partnership; (3) Uses net proceeds to maintain, site (currently at http://www.ccr.gov). (d) A limited liability corporation or improve, or expand the operations of 2. Data Universal Numbering System partnership; and the organization. (DUNS) number means the nine-digit number (e) A sole proprietorship. (b) Includes nonprofit— established and assigned by Dun and (1) Institutions of higher education; Bradstreet, Inc. (D&B) to uniquely identify § 25.330 Foreign public entity. (2) Hospitals; and business entities. A DUNS number may be (3) Tribal organizations other than obtained from D&B by telephone (currently Foreign public entity means: 866–705–5711) or the Internet (currently at (a) A foreign government or foreign those included in the definition of http://fedgov.dnb.com/webform). governmental entity; ‘‘Indian Tribe.’’ 3. Entity, as it is used in this award term, (b) A public international § 25.350 State. means all of the following, as defined at 2 organization, which is an organization CFR part 25, subpart C: entitled to enjoy privileges, exemptions, State means— a. A Governmental organization, which is and immunities as an international (a) Any State of the United States; a State, local government, or Indian Tribe; (b) The District of Columbia; organization under the International b. A foreign public entity; (c) Any agency or instrumentality of c. A domestic or foreign nonprofit Organizations Immunities Act (22 a State other than a local government or U.S.C. 288–288f); organization; State-controlled institution of higher d. A domestic or foreign for-profit (c) An entity owned (in whole or in education; organization; and part) or controlled by a foreign (d) The Commonwealths of Puerto e. A Federal agency, but only as a government; and Rico and the Northern Mariana Islands; subrecipient under an award or subaward to (d) Any other entity consisting wholly and a non-Federal entity. or partially of one or more foreign (e) The United States Virgin Islands, 4. Subaward: governments or foreign governmental Guam, American Samoa, and a territory a. This term means a legal instrument to entities. provide support for the performance of any or possession of the United States. portion of the substantive project or program § 25.335 Indian Tribe (or ‘‘Federally § 25.355 Subaward. for which you received this award and that recognized Indian Tribe’’). you as the recipient award to an eligible Subaward has the meaning given in subrecipient. Indian Tribe (or ‘‘Federally recognized paragraph C.4 of the award term in Indian Tribe’’) means any Indian Tribe, b. The term does not include your Appendix A to this part. procurement of property and services needed band, nation, or other organized group to carry out the project or program (for § 25.360 Subrecipient. or community, including any Alaskan further explanation, see Sec. ll.210 of the Native village or regional or village Subrecipient has the meaning given in attachment to OMB Circular A–133, ‘‘Audits corporation (as defined in, or paragraph C.5 of the award term in of States, Local Governments, and Non-Profit established under, the Alaskan Native Appendix A to this part. Organizations’’).

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c. A subaward may be provided through DEPARTMENT OF HEALTH AND congressional review requirements in 5 any legal agreement, including an agreement HUMAN SERVICES U.S.C. 801–808. that you consider a contract. 5. Subrecipient means an entity that: Food and Drug Administration List of Subjects a. Receives a subaward from you under this 21 CFR Part 510 award; and 21 CFR Parts 510, 520, and 558 b. Is accountable to you for the use of the Administrative practice and [Docket No. FDA–2010–N–0002] Federal funds provided by the subaward. procedure, Animal drugs, Labeling, Reporting and recordkeeping Animal Drugs, Feeds, and Related PART 26–39—[RESERVED] requirements. Products; Withdrawal of Approval of New Animal Drug Applications; 21 CFR Part 520 ■ 4. Subchapter C to chapter I, Chloramphenicol; Lincomycin; Animal drugs. consisting of parts 40 through 59, is Pyrantel Tartrate; and Tylosin established and reserved to read as Phosphate and Sulfamethazine 21 CFR Part 558 follows: AGENCY: Food and Drug Administration, Animal drugs, Animal feeds. Subchapter C—Award Content and Format HHS. [Reserved] ■ Therefore, under the Federal Food, ACTION: Final rule. Drug, and Cosmetic Act and under PARTS 40–59—[RESERVED] authority delegated to the Commissioner SUMMARY: The Food and Drug of Food and Drugs and redelegated to Administration (FDA) is amending the ■ the Center for Veterinary Medicine, 21 5. Subchapter D to chapter I, animal drug regulations by removing consisting of parts 60 through 79, is CFR parts 510, 520, and 558 are those portions that reflect approval of amended as follows: established and added to read as four new animal drug applications follows: (NADAs). In a notice published PART 510—NEW ANIMAL DRUGS Subchapter D—Post-Award Responsibilities elsewhere in this issue of the Federal Register, FDA is withdrawing approval ■ 1. The authority citation for 21 CFR PARTS 60–79—[RESERVED] of these NADAs. part 510 continues to read as follows: DATES: This rule is effective September Authority: 21 U.S.C. 321, 331, 351, 352, ■ 6. Subchapter E to chapter I, 24, 2010. 353, 360b, 371, 379e. consisting of parts 80 through 99, is FOR FURTHER INFORMATION CONTACT: John established and reserved to read as Bartkowiak, Center for Veterinary 510.600 [Amended] follows: Medicine (HFV–212), Food and Drug ■ 2. In § 510.600, in the table in Administration, 7519 Standish Pl., Subchapter E—Cost Principles [Reserved] paragraph (c)(1), remove the entries for Rockville, MD 20855, 240–276–9079; ‘‘Feed Service Co., Inc.’’ and ‘‘John J. PARTS 80–99—[RESERVED] email: [email protected]. Ferrante’’; and in the table in paragraph SUPPLEMENTARY INFORMATION: John J. (c)(2), remove the entries for ‘‘030841’’ ■ 7. Subchapter F to chapter I, Ferrante, 11 Fairway Lane, Trumbull, and ‘‘058034’’. consisting of parts 100 through 119, is CT 06611; International Nutrition, Inc., 7706 ‘‘I’’ Plaza, Omaha, NE 68127; and PART 520—ORAL DOSAGE FORM established and reserved to read as NEW ANIMAL DRUGS follows: Feed Service Co., Inc., 303 Lundin Blvd., P.O. Box 698, Mankato, MN Subchapter F—Audit Requirements 56001 have requested that FDA ■ 3. The authority citation for 21 CFR [Reserved] withdraw approval of the four NADAs part 520 continues to read as follows: listed in the following paragraph Authority: 21 U.S.C. 360b. PARTS 100–119—[RESERVED] because they are no longer ■ 4. In § 520.390b, revise paragraph (b) manufactured or marketed: to read as follows: ■ 8. Subchapter G to chapter I, In a notice published elsewhere in consisting of parts 120 through 199, is this issue of the Federal Register, FDA § 520.390b Chloramphenicol capsules. established, and a new subchapter gave notice that approval of NADA 65– * * * * * heading is added to read as follows: 137, 121–337, 132–923, and 138–342, (b) Sponsors. See Nos. 000069 and Subchapter G—National Policy and all supplements and amendments 050057 in § 510.600(c) of this chapter Requirements thereto, is withdrawn, effective for use as in paragraph (d) of this September 24, 2010. As provided in the section. [FR Doc. 2010–22706 Filed 9–13–10; 8:45 am] regulatory text of this document, the BILLING CODE P animal drug regulations are amended to * * * * * reflect these withdrawals of approval. PART 558—NEW ANIMAL DRUGS FOR Following these changes of USE IN ANIMAL FEEDS sponsorship, Feed Service Co., Inc., and John J. Ferrante are no longer the ■ 5. The authority citation for 21 CFR sponsor of an approved application. part 558 continues to read as follows: Accordingly, 21 CFR 510.600(c) is being amended to remove the entries for these Authority: 21 U.S.C. 360b, 371. firms. ■ 6. In § 558.325, revise paragraphs (a) This rule does not meet the definition and (c)(3)(ii); and in the table in of ‘‘rule’’ in 5 U.S.C. 804(3)(A) because paragraphs (d)(2)(ii) and (d)(2)(iii), in it is a rule of ‘‘particular applicability.’’ the ‘‘Sponsor’’ column, remove ‘‘043733’’ Therefore, it is not subject to the to read as follows:

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§ 558.325 Lincomycin. DATES: This correction is effective on (D) * * * If an electing corporation (a) Approvals. Type A articles and September 14, 2010, and is applicable has been in existence for less than three Type B feeds approved for sponsors in on August 13, 2010. years, the period during which the § 510.600(c) of this chapter for specific FOR FURTHER INFORMATION CONTACT: electing corporation has been in uses as in paragraph (d) of this section Concerning the acceleration rules for existence is substituted for the as follows: deferred COD income and deferred OID preceding three taxable years. * * * (1) No. 000009 for 20 and 50 grams deductions, and the rules for earnings * * * * * per pound. and profits, Robert M. Rhyne at (202) LaNita Van Dyke, (2) No. 051311 for 2.5 and 8 grams per 622–7790; and concerning the rules for pound. deferred OID deductions, Rubin B. Chief, Publications and Regulations Branch, Legal Processing Division, Associate Chief * * * * * Ranat at (202) 622–7530 (not toll-free Counsel, (Procedure and Administration). (c) * * * numbers). [FR Doc. 2010–22792 Filed 9–13–10; 8:45 am] (3) * * * SUPPLEMENTARY INFORMATION: (ii) No. 051311:‘‘CAUTION: Not to be BILLING CODE 4830–01–P fed to swine that weigh more than 250 Background lb.’’ The temporary regulations (TD 9497) DEPARTMENT OF HOMELAND * * * * * that are the subject of this document are SECURITY under section 108 of the Internal § 558.485 [Amended] Revenue Code. Coast Guard ■ 7. In paragraph (b)(3) of § 558.485, Need for Correction remove ‘‘043733’’. 33 CFR Part 100 As published, the temporary § 558.630 [Amended] regulations (TD 9497) contain errors that [Docket No. USCG–2010–0672] ■ 8. In paragraph (b)(5) of § 558.630, may prove to be misleading and are in Notice of Enforcement for Special remove ‘‘030841’’. need of clarification. Local Regulation; Thunderboat Dated: September 1, 2010. List of Subjects in 26 CFR Part 1 Regatta; Mission Bay, CA Bernadette Dunham, Income taxes, Reporting and AGENCY: Coast Guard, DHS. Director, Center for Veterinary Medicine. recordkeeping requirements. [FR Doc. 2010–22808 Filed 9–13–10; 8:45 am] ACTION: Notice of enforcement of regulation. BILLING CODE 4160–01–S Correction of Publication ■ Accordingly, 26 CFR part 1 is SUMMARY: The Coast Guard will enforce corrected by making the following the Thunderboat Regatta Special Local DEPARTMENT OF THE TREASURY correcting amendments: Regulation from 7 a.m. PST on September 17, 2010 through 5:30 p.m. Internal Revenue Service PART 1—INCOME TAXES on September 19, 2010. This action is necessary to provide for the safety of the 26 CFR Part 1 ■ Paragraph 1. The authority citation for part 1 continues to read in part as participants, crew, spectators, [TD 9497] follows: participating vessels, and other vessels RIN 1545–BI97 and users of the waterway. During the Authority: 26 U.S.C. 7805 * * *. enforcement period, no person or vessel Guidance Regarding Deferred ■ Par. 2. Section 1.108(i)–1T is may enter the zone established by the Discharge of Indebtedness Income of amended by revising the fifth sentence special local regulation without Corporations and Deferred Original of paragraph (b)(2)(iii)(A) and the fifth permission of the Captain of the Port. Issue Discount Deductions; Correction sentence of paragraph (b)(2)(iii)(D) to DATES: The regulations in 33 CFR read as follows: 100.1101 will be enforced from 7 a.m. AGENCY: Internal Revenue Service (IRS), to 5:30 p.m. on September 17, 18, and Treasury. § 1.108(i)–1T Deferred discharge of indebtedness income and deferred original 19, 2010. ACTION: Correcting amendment. issue discount deductions of C FOR FURTHER INFORMATION CONTACT: If corporations (temporary). SUMMARY: This document contains you have questions on this notice, call correcting amends to temporary * * * * * or e-mail Petty Officer Shane Jackson, regulations under section 108(i) of the (b) * * * Waterways Management, U.S. Coast Internal Revenue Code. These (2) * * * Guard Sector San Diego, Coast Guard; regulations primarily affect C (iii) * * * telephone 619–278–7262, e-mail corporations regarding the acceleration (A) * * * For purposes of [email protected]. of deferred discharge of indebtedness determining an electing corporation’s SUPPLEMENTARY INFORMATION: (COD) income (deferred COD income) gross asset value, the amount of any The Coast Guard will enforce the and deferred original issue discount distribution that is not treated as an special local regulation for the (OID) deductions (deferred OID impairment transaction under paragraph Thunderboat Regatta in 33 CFR deductions) under section 108(i)(5)(D), (b)(2)(iii)(D) of this section 100.1101 on September 17, 2010, from and the calculation of earnings and (distributions and charitable 7 a.m. PST to 5:30 p.m., September 18, profits as a result of an election under contributions consistent with historical 2010, from 7 a.m. PST to 5:30 p.m., and section 108(i). These errors were made practice) or under paragraph September 19, 2010, from 7 a.m. PST to when the agency published temporary (b)(2)(iii)(E) of this section (special rules 5:30 p.m. regulations (TD 9497) in the Federal for RICs and REITs) is treated as an asset Under the provisions of 33 CFR Register on Friday, August 13, 2010 (75 of the electing corporation. * * * 100.1101, a vessel may not enter the FR 49394). * * * * * regulated area, unless it receives

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permission from the COTP. Spectator amounts from the rule text to the U.S.C. 553(b)(B) and (d)(3) that notice vessels may safely transit outside the general cost recovery fee table so that and public comment procedures are regulated area but may not anchor, mineral cost recovery fees can be found unnecessary and that the rule may be block, loiter in, or impede the transit of in one location. effective less than 30 days after participants or official patrol vessels. DATES: This final rule is effective publication. The Coast Guard may be assisted by October 1, 2010. II. Discussion of Final Rule other Federal, State, or local law FOR FURTHER INFORMATION CONTACT: enforcement agencies in enforcing this Steve Salzman, Chief, Division of Fluid The BLM publishes a fee update rule regulation. Minerals, (202) 912–7143, or Faith each year, which becomes effective on This notice is issued under authority Bremner, Regulatory Affairs Analyst, October 1 of that year. The fee updates of 33 CFR 100.1101(a) and 5 U.S.C. (202) 912–7441. Persons who use a are based on the IPD–GDP for the 4th 552(a). In addition to this notice in the telecommunications device for the deaf Quarter of the preceding calendar year. Federal Register, the Coast Guard will (TDD) may leave a message for these The BLM’s most recent fee update rule provide the maritime community with individuals with the Federal became effective on October 1, 2009, 74 notification of this enforcement period Information Relay Service (FIRS) at 1– FR 49330 (Sept. 28, 2009), based on the via the Local Notice to Mariners, marine 800–877–8339, 24 hours a day, 7 days IPD–GDP for the 4th Quarter of 2008. information broadcasts, local radio a week. This fee update rule is based on the stations and area newspapers. If the ADDRESSES: You may send inquiries or IPD–GDP for the 4th Quarter of 2009, COTP or his designated representative suggestions to Director (630), Bureau of thus reflecting the rate of inflation over determines that the regulated area need Land Management, MS–LS 401, 1849 C the four calendar quarters since the 4th not be enforced for the full duration Street, NW., Washington, DC 20240; Quarter of 2008. stated in this notice, he or she may use Attention: RIN 1004–AE18. The fee is calculated by applying the a Broadcast Notice to Mariners to grant SUPPLEMENTARY INFORMATION: IPD–GDP to the base value from the general permission to enter the previous year’s rule. This results in an regulated area. I. Background updated base value. This updated base Dated: August 26, 2010. The BLM has specific authority to value is then rounded to the closest T.H. Farris, charge fees for processing applications multiple of $5, or to the nearest cent for Captain, U.S. Coast Guard, Captain of the and other documents relating to public fees under $1, to establish the new fee. Port San Diego. lands under section 304 of the Federal Under this rule, 44 fees will remain Land Policy and Management Act of [FR Doc. 2010–22798 Filed 9–13–10; 8:45 am] the same, and 4 fees will increase, as 1976 (FLPMA), 43 U.S.C. 1734. In 2005, BILLING CODE 9110–04–P follows: the BLM published a final cost recovery (A) The Geothermal Program’s lands rule (70 FR 58854) establishing or nomination fee will increase from plus revising certain fees and service charges, DEPARTMENT OF THE INTERIOR 10 cents per acre to plus 11 cents per and establishing the method it would acre; use to adjust those fees and service Bureau of Land Management (B) The Solid Minerals (other than charges on an annual basis. Coal and Oil Shale) Program’s lease At 43 CFR 3000.12(a), the regulations renewal fee will increase from $480 to 43 CFR Parts 3000, 3910, and 3930 provide that the BLM will annually adjust fees established in Subchapter C $485; [L13100000 PP0000 LLWO310000; L1990000 (C) The Mining Law Administration PO0000 LLWO320000] according to changes in the Implicit Price Deflator for Gross Domestic Program’s fee for mineral patent RIN 1004–AE18 Product (IPD–GDP), which is published adjudication of more than 10 claims will quarterly by the U.S. Department of increase from $2,820 to $2,840; and Minerals Management: Adjustment of (D) The Mining Law Administration Cost Recovery Fees Commerce. See also 43 CFR 3000.10. Because the fee recalculations are Program’s fee for mineral patent AGENCY: Bureau of Land Management, simply based on a mathematical adjudication of 10 or fewer claims will Interior. formula, we have changed the fees in increase from $1,410 to $1,420. ACTION: Final rule. this final rule without providing In this rule we also moved the cost opportunity for notice and comment. recovery fees for the oil shale program SUMMARY: This final rule amends the This final rule will allow the BLM to into the Processing and Filing Fee Table Bureau of Land Management (BLM) update these fees and service charges by at 43 CFR 3000.12. We added a mineral resources regulations to update October 1 of this year, as required by the reference to the f ee table in the relevant some fees that cover the BLM’s cost of 2005 regulation. The public had an sections of the rule text at 43 CFR processing certain documents relating to opportunity to comment on this sections 3910.31, 3933.20, and 3933.31. its mineral programs and some filing procedure during the comment period This is an administrative revision for fees for mineral-related documents. on the original cost recovery rule, and the convenience of the reader and has These updates include fees for actions this new rule simply administers the no substantive effect. such as lease renewals and mineral procedure set forth in those regulations. The calculations that resulted in the patent adjudications. This rule also The Department of the Interior, new fees are included in the table moves the oil shale cost recovery fee therefore, for good cause finds under 5 below.

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FIXED COST RECOVERY FEES FY11

Existing Existing IPD–GDP Document/Action New value 4 New fee 5 fee 1 value 2 increase 3

Oil & Gas (parts 3100, 3110, 3120, 3130, 3150)

Noncompetitive lease application ...... $ 375 $ 374.68 $ 2.55 $ 377.23 $ 375 Competitive lease application ...... 145 145.40 0.99 146.39 145 Assignment and transfer of record title or operating rights 85 83.88 0.57 84.45 85 Overriding royalty transfer, payment out of production ...... 10 11.18 0.08 11.26 10 Name change, corporate merger or transfer to heir/devi- see ...... 195 195.72 1.33 197.05 195 Lease consolidation ...... 415 413.82 2.81 416.63 415 Lease renewal or exchange ...... 375 374.68 2.55 377.23 375 Lease reinstatement, Class I ...... 75 72.69 0.49 73.18 75 Leasing under right-of-way ...... 375 374.68 2.55 377.23 375 Geophysical exploration permit application—Alaska ...... 25 ...... 25 6 Renewal of exploration permit—Alaska ...... 25 ...... 25 7

Geothermal (part 3200)

Noncompetitive lease application ...... 375 374.68 2.55 377.23 375 Competitive lease application ...... 145 145.40 0.99 146.39 145 Assignment and transfer of record title or operating rights 85 83.88 0.57 84.45 85 Name change, corporate merger or transfer to heir/devi- see ...... 195 195.72 1.33 197.05 195 Lease consolidation ...... 415 413.82 2.81 416.63 415 Lease reinstatement ...... 75 72.69 0.49 73.18 75 Nomination of lands ...... 105 104.69 0.71 105.40 105 plus per acre nomination fee ...... 0.10 0.10469 0.00071 0.10540 0.11 Site license application ...... 55 55.92 0.38 56.30 55 Assignment or transfer of site license ...... 55 55.92 0.38 56.30 55

Coal (parts 3400, 3470)

License to mine application ...... 10 11.18 0.08 11.26 10 Exploration license application ...... 310 307.57 2.09 309.66 310 Lease or lease interest transfer ...... 60 61.52 0.42 61.94 60

Leasing of Solid Minerals Other Than Coal and Oil Shale (parts 3500, 3580)

Applications other than those listed below ...... 35 33.55 0.23 33.78 35 Prospecting permit application amendment ...... 60 61.52 0.42 61.94 60 Extension of prospecting permit ...... 100 100.66 0.68 101.34 100 Lease modification or fringe acreage lease ...... 30 27.97 0.19 28.16 30 Lease renewal ...... 480 480.93 3.27 484.20 485 Assignment, sublease, or transfer of operating rights ...... 30 27.97 0.19 28.16 30 Transfer of overriding royalty ...... 30 27.97 0.19 28.16 30 Use permit ...... 30 27.97 0.19 28.16 30 Shasta and Trinity hardrock mineral lease ...... 30 27.97 0.19 28.16 30 Renewal of existing sand and gravel lease in Nevada ...... 30 27.97 0.19 28.16 30

Multiple Use; Mining (part 3700)

Notice of protest of placer mining operations ...... 10 11.18 0.08 11.26 10

Mining Law Administration (parts 3800, 3810, 3830, 3850, 3860, 3870)

Application to open lands to location ...... 10 11.18 0.08 11.26 10 Notice of location ...... 15 16.77 0.11 16.88 15 Amendment of location ...... 10 11.18 0.08 11.26 10 Transfer of mining claim/site ...... 10 11.18 0.08 11.26 10 Recording an annual FLPMA filing ...... 10 11.18 0.08 11.26 10 Deferment of assessment work ...... 100 100.66 0.68 101.34 100 Recording a notice of intent to locate mining claims on Stockraising Homestead Act lands ...... 30 27.97 0.19 28.16 30 Mineral patent adjudication: (more than 10 claims) ...... 2,820 2,818.47 19.17 2,837.64 2,840 (10 or fewer claims) ...... 1,410 1,409.23 9.58 1,418.81 1,420 Adverse claim ...... 100 100.66 0.68 101.34 100 Protest ...... 60 61.52 0.42 61.94 60

Oil Shale Management (parts 3900, 3910, 3930)

Exploration license application ...... 295 295 2.01 297.01 295

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FIXED COST RECOVERY FEES FY11—Continued

Existing Existing IPD–GDP Document/Action New value 4 New fee 5 fee 1 value 2 increase 3

Application for assignment or sublease of record title or overriding royalty...... 60 60 0.41 60.41 60 Source for Implicit Price Deflator for Gross Domestic Product data: U.S. Department of Commerce, Bureau of Economic Analysis. 1 The Existing Fee was established by the 2009 (Fiscal Year 2010) cost recovery fee update rule published September 28, 2009 (74 FR 49330), effective October 1, 2009. 2 The Existing Value is the figure from the New Value column in the previous year’s rule. In the case of fees that were not in the table the pre- vious year, or that had no figure in the New Value column the previous year, the Existing Value is the same as the Existing Fee. 3 From 4th Quarter 2008 to 4th Quarter 2009, the IPD–GDP increased by 0.68 percent. The value in the IPD–GDP Increase column is 0.68 percent of the Existing Value. 4 The sum of the Existing Value and the IPD–GDP Increase is the New Value. 5 The New Fee for 2011 is the New Value rounded to the nearest $5 for values equal to or greater than $1, or to the nearest penny for values under $1. 6 Section 365 of the Energy Policy Act of 2005 (Pub. L. 109–58) directed in subsection (i) that ‘‘the Secretary shall not implement a rulemaking that would enable an increase in fees to recover additional costs related to processing drilling-related permit applications and use authorizations.’’ In the 2005 cost recovery rule, the BLM interpreted this prohibition to apply to geophysical exploration permits. 70 FR 58854—58855. While the $25 fees for geophysical exploration permit applications for Alaska and renewals of exploration permits for Alaska pre-dated the 2005 cost recov- ery rule and were not affected by the Energy Policy Act prohibition, we interpret the provision quoted as prohibiting us from increasing this $25 fee. 7 We interpret the Energy Policy Act prohibition discussed in footnote 6, above, as prohibiting us from increasing this $25 fee, as well.

III. How Fees Are Adjusted the threshold in Executive Order 12866. of this section, a small entity is defined Each year, the figures in the Existing For instructions on how to view a copy by the Small Business Administration Value column in the table above, not of the analysis prepared in conjunction (SBA) for mining (broadly inclusive of those in the Existing Fee column, are with the 2005 final rule, please contact metal mining, coal mining, oil and gas used as the basis for calculating the one of the persons listed in the FOR extraction, and the mining and adjustment to these fees. The Existing FURTHER INFORMATION CONTACT section, quarrying of nonmetallic minerals) as an Value is the figure from the New Value above. individual, limited partnership, or small column in the previous year’s rule. In This rule will not create company considered to be at arm’s length from the control of any parent the case of fees that were not in the table inconsistencies or otherwise interfere companies, with fewer than 500 the previous year, or that had no figure with an action taken or planned by employees. The SBA defines a small in the New Value column the previous another agency. This rule does not entity differently, however, for leasing year, the Existing Value is the same as change the relationships of the onshore Federal land for coal mining. A coal the Existing Fee. Because in setting the minerals programs with other agencies’ lessee is a small entity if it employs not fees, values are rounded to the nearest actions. These relationships are more than 250 people, including people $5, or the nearest penny for fees under included in agreements and memoranda of understanding that would not change working for its affiliates. $1, adjustments based on the figures in The SBA would consider many, if not the Existing Fee column would lead to with this rule. In addition, this final rule does not most, of the operators the BLM works significantly over-or-under-valued fees materially affect the budgetary impact of with in the onshore minerals programs over time. Fee adjustments are made by entitlements, grants, or loan programs, to be small entities. The BLM notes that multiplying the annual change in the or the rights and obligations of their this final rule does not affect service IPD–GDP by the figure in the Existing recipients. This rule does apply an industries, for which the SBA has a Value column. This calculation defines inflation factor that increases a handful different definition of ‘‘small entity.’’ a new value for this year, which is then of existing user fees for processing The final rule will not affect a large rounded to the nearest $5, or the nearest documents associated with the onshore number of small entities since only four penny for fees under $1, to establish the minerals programs. However, most of fees for activities on public lands will be new fee. these fee increases are less than 1 increased. We have concluded that the IV. Procedural Matters percent and none of the increases effects will not be significant. Only 4 materially affects the budgetary impact out of 48 fees will be adjusted upward, Regulatory Planning and Review of user fees. and most of the fixed fee increases will (Executive Order 12866) Finally, this rule will not raise novel be less than 1 percent as a result of this This document is not a significant legal issues. As explained above, this final rule. For the 2005 final rule, the rule and the Office of Management and rule simply implements an annual BLM completed a threshold analysis Budget has not reviewed this rule under process to account for inflation that was which is available for public review in Executive Order 12866. proposed and explained in the 2005 cost the administrative record for that rule. The BLM has determined that the rule recovery rule. (For instructions on how to view a copy will not have an annual effect on the of that analysis, please contact one of economy of $100 million or more. It will The Regulatory Flexibility Act the persons listed in the FOR FURTHER not adversely affect in a material way This final rule will not have a INFORMATION CONTACT section, above.) the economy, a sector of the economy, significant economic effect on a The analysis for the 2005 rule productivity, competition, jobs, the substantial number of small entities as concluded that the fees would not have environment, public health or safety, or defined under the Regulatory Flexibility a significant economic effect on a State, local, or Tribal governments or Act (5 U.S.C. 601 et seq.). A Regulatory substantial number of small entities. communities. The changes in today’s Flexibility Analysis is not required. The fee increases implemented in rule are much smaller than those in the Accordingly, a Small Entity Compliance today’s rule are substantially smaller 2005 final rule, which did not approach Guide is not required. For the purposes than those provided for in the 2005 rule.

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The Small Business Regulatory Mining Claims The Unfunded Mandates Reform Act of Enforcement Fairness Act 1995 (7) 1004–0025 which expires March This final rule is not a ‘‘major rule’’ as 31, 2013; The BLM has determined that this defined at 5 U.S.C. 804(2). The final rule final rule is not significant under the (8) 1004–0114 which expires August Unfunded Mandates Reform Act of will not have an annual effect on the 31, 2013; and economy greater than $100 million; it 1995, 2 U.S.C. 1501 et seq., because it will not result in major cost or price Leasing of Solid Minerals Other Than will not result in State, local, private increases for consumers, industries, Oil Shale sector, or Tribal government government agencies, or regions; and it expenditures of $100 million or more in will not have significant adverse effects (9) 1004–0121 which expires February any one year, 2 U.S.C. 1532. This rule on competition, employment, 28, 2013. will not significantly or uniquely affect investment, productivity, innovation, or small governments. Therefore, the BLM Takings Implication Assessment is not required to prepare a statement the ability of U.S.-based enterprises to (Executive Order 12630) containing the information required by compete with foreign-based enterprises. the Unfunded Mandates Reform Act. For the 2005 final rule, which As required by Executive Order established the fee adjustment 12630, the Department of the Interior Consultation and Coordination With procedure that this rule implements, the has determined that this rule will not Indian Tribal Governments (Executive BLM completed a threshold analysis, cause a taking of private property. No Order 13175) private property rights will be affected which is available for public review in In accordance with Executive Order by a rule that merely updates service the administrative record for that rule. 13175, the BLM has determined that fees. The Department therefore certifies The fee increases implemented in this final rule does not include policies that this final rule does not represent a today’s rule are substantially smaller that have Tribal implications. A key governmental action capable of than those provided for in the 2005 rule. factor is whether the rule would have interference with constitutionally Executive Order 13132, Federalism substantial direct effects on one or more protected property rights. Indian Tribes. The BLM has not found This final rule will not have a Civil Justice Reform (Executive Order any substantial direct effects. substantial direct effect on the States, on 12988) Consequently, the BLM did not utilize the relationship between the national the consultation process set forth in government and the States, or on the In accordance with Executive Order Section 5 of the Executive Order. distribution of power and 12988, the BLM finds that this final rule Information Quality Act responsibilities among the various will not unduly burden the judicial levels of government. In accordance system and meets the requirements of In developing this rule, the BLM did with Executive Order 13132, therefore, sections 3(a) and 3(b)(2) of the Executive not conduct or use a study, experiment, we find that the final rule does not have Order. or survey requiring peer review under significant federalism effects. A the Information Quality Act (Pub. L. The National Environmental Policy Act 106–554). federalism assessment is not required. (NEPA) The Paperwork Reduction Act of 1995 Effects on the Nation’s Energy Supply The BLM has determined that this (Executive Order 13211) final rule is administrative and involves These regulations contain information In accordance with Executive Order only procedural changes addressing fee collection requirements. As required by 13211, the BLM has determined that requirements. In promulgating this rule, the Paperwork Reduction Act of 1995 this final rule is not likely to have a the government is conducting routine (44 U.S.C. 3501 et seq.), the BLM significant adverse effect on the supply, and continuing government business of submitted a copy of the proposed distribution, or use of energy. The an administrative nature having limited information collection requirements to distribution of or use of energy would context and intensity. Therefore, it is the Office of Management and Budget not be unduly affected by this final rule. categorically excluded from (OMB) for review. The OMB approved It merely adjusts certain administrative the information collection requirements environmental review under section cost recovery fees to account for under the following Control Numbers: 102(2)(C) of NEPA, pursuant to 43 CFR inflation. 46.205 and 46.210(c) and (i). The final Oil and Gas rule does not meet any of the 10 criteria Author (1) 1004–0034 which expires July 31, for exceptions to categorical exclusions The principal author of this rule is 2012; listed at 43 CFR 46.215. Faith Bremner of the Division of (2) 1004–0137 which expires Pursuant to Council on Regulatory Affairs, Bureau of Land September 30, 2010, renewal pending; Environmental Quality regulation (40 Management. CFR 1508.4) and the environmental (3) 1004–0162 which expires May 31, List of Subjects policies and procedures of the 2012; Department of the Interior, the term 43 CFR Part 3000 (4) 1004–0185 which expires ‘‘categorical exclusions’’ means Public lands—mineral resources, November 30, 2012; categories of actions which do not Reporting and recordkeeping Geothermal individually or cumulatively have a requirements. significant effect on the human (5) 1004–0132 which expires environment and which have been 43 CFR Part 3910 September 30, 2010, renewal pending; determined to have no such effect on Environmental protection, Coal procedures adopted by a Federal Exploration licenses, Intergovernmental agency, and therefore require neither an relations, Oil shale reserves, Public (6) 1004–0073 which expires June 30, environmental assessment nor an lands—mineral resources, Reporting 2013; environmental impact statement. and recordkeeping requirements.

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43 CFR Part 3930 Authority: 16 U.S.C. 3101 et seq.; 30 annually according to the change in the U.S.C. 181 et seq., 301–306, 351–359, and Administrative practice and Implicit Price Deflator for Gross 601 et seq.; 31 U.S.C. 9701; 40 U.S.C. 471 et Domestic Product (IPD–GDP) by way of procedure, Environmental protection, seq.; 42 U.S.C. 6508; 43 U.S.C. 1701 et seq.; Mineral royalties, Oil shale reserves, and Pub. L. 97–35, 95 Stat. 357. publication of a final rule in the Federal Public lands—mineral resources, Register, and will subsequently be Reporting and recordkeeping Subpart 3000—General posted on the BLM Web site (http:// requirements, Surety bonds. www.blm.gov) before October 1 each ■ 2. Amend § 3000.12 by revising year. Revised fees are effective each year Ned Farquhar, paragraph (a) and the table following on October 1. Deputy Assistant Secretary, Land and Minerals Management. paragraph (b) to read as follows: * * * * * ■ For reasons stated in the preamble, the § 3000.12 What is the fee schedule for (b) * * * Bureau of Land Management amends 43 fixed fees? CFR Chapter II as follows: (a) The table in this section shows the PART 3000—MINERALS fixed fees that you must pay to BLM for MANAGEMENT: GENERAL the services listed for Fiscal Year 2011. These fees are nonrefundable and must ■ 1. The authority citation for part 3000 be included with documents you file continues to read as follows: under this chapter. Fees will be adjusted

FY 2011 PROCESSING AND FILING FEE TABLE

Document/action FY 2011 fee

Oil & Gas (parts 3100, 3110, 3120, 3130, 3150)

Noncompetitive lease application ...... $375 Competitive lease application ...... 145 Assignment and transfer of record title or operating rights ...... 85 Overriding royalty transfer, payment out of production ...... 10 Name change, corporate merger or transfer to heir/devisee ...... 195 Lease consolidation ...... 415 Lease renewal or exchange ...... 375 Lease reinstatement, Class I ...... 75 Leasing under right-of-way ...... 375 Geophysical exploration permit application—Alaska ...... 25 Renewal of exploration permit—Alaska ...... 25

Geothermal (part 3200)

Noncompetitive lease application ...... 375 Competitive lease application ...... 145 Assignment and transfer of record title or operating rights ...... 85 Name change, corporate merger or transfer to heir/devisee ...... 195 Lease consolidation ...... 415 Lease reinstatement ...... 75 Nomination of lands ...... 105 plus per acre nomination fee ...... 0.11 Site license application ...... 55 Assignment or transfer of site license ...... 55

Coal (parts 3400, 3470)

License to mine application ...... 10 Exploration license application ...... 310 Lease or lease interest transfer ...... 60

Leasing of Solid Minerals Other Than Coal and Oil Shale (parts 3500, 3580)

Applications other than those listed below ...... 35 Prospecting permit application amendment ...... 60 Extension of prospecting permit ...... 100 Lease modification or fringe acreage lease ...... 30 Lease renewal ...... 485 Assignment, sublease, or transfer of operating rights ...... 30 Transfer of overriding royalty ...... 30 Use permit ...... 30 Shasta and Trinity hardrock mineral lease ...... 30 Renewal of existing sand and gravel lease in Nevada ...... 30

Multiple Use; Mining (part 3730)

Notice of protest of placer mining operations ...... 10

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FY 2011 PROCESSING AND FILING FEE TABLE—Continued

Document/action FY 2011 fee

Mining Law Administration (parts 3800, 3810, 3830, 3850, 3860, 3870)

Application to open lands to location ...... 10 Notice of location * ...... 15 Amendment of location ...... 10 Transfer of mining claim/site ...... 10 Recording an annual FLPMA filing ...... 10 Deferment of assessment work ...... 100 Recording a notice of intent to locate mining claims on Stockraising Homestead Act lands ...... 30 Mineral patent adjudication ...... 2,840 (more than 10 claims) 1,420 (10 or fewer claims) Adverse claim ...... 100 Protest ...... 60

Oil Shale Management (parts 3900, 3910, 3930)

Exploration license application ...... 295 Application for assignment or sublease of record title or overriding royalty ...... 60 * To record a mining claim or site location, you must pay this processing fee along with the initial maintenance fee and the one-time location fee required by statute. 43 CFR part 3833.

PART 3910—OIL SHALE in the fee schedule in § 3000.12 of this adopted the required floodplain EXPLORATION LICENSES chapter. * * * management measures prior to the ■ 7. Amend § 3933.31 by revising effective suspension date given in this ■ 3. The authority citation for part 3910 paragraph (b)(3) to read as follows: rule, the suspension will not occur and continues to read as follows: a notice of this will be provided by § 3933.31 Record title assignments. Authority: 25 U.S.C. 396(d) and 2107, 30 publication in the Federal Register on a U.S.C. 241(a), 42 U.S.C. 15927, 43 U.S.C. * * * * * subsequent date. 1732(b) and 1740. (b) * * * DATES: Effective Dates: The effective (3) The filing fee found in the fee date of each community’s scheduled Subpart 3910—Exploration Licenses schedule in § 3000.12 of this chapter. suspension is the third date (‘‘Susp.’’) * * * * * listed in the third column of the ■ 4. Amend § 3910.31 by revising [FR Doc. 2010–22885 Filed 9–13–10; 8:45 am] following tables. paragraph (b)(2) to read as follows: BILLING CODE 4310–84–P FOR FURTHER INFORMATION CONTACT: If § 3910.31 Filing of an application for an you want to determine whether a exploration license. particular community was suspended * * * * * DEPARTMENT OF HOMELAND on the suspension date or for further SECURITY (b) * * * information, contact David Stearrett, Mitigation Directorate, Federal (2) The filing fee for an exploration Federal Emergency Management Emergency Management Agency, 500 C license application found in the fee Agency Street SW., Washington, DC 20472, schedule in § 3000.12 of this chapter; (202) 646–2953. * * * * * 44 CFR Part 64 SUPPLEMENTARY INFORMATION: The NFIP PART 3930—MANAGEMENT OF OIL [Docket ID FEMA–2010–0003; Internal enables property owners to purchase Agency Docket No. FEMA–8149] SHALE EXPLORATION AND LEASES flood insurance which is generally not otherwise available. In return, Suspension of Community Eligibility ■ 5. The authority citation for part 3930 communities agree to adopt and continues to read as follows: AGENCY: Federal Emergency administer local floodplain management Management Agency, DHS. aimed at protecting lives and new Authority: 25 U.S.C. 396d and 2107, 30 construction from future flooding. U.S.C. 241(a), 42 U.S.C. 15927, 43 U.S.C. ACTION: Final rule. 1732(b), 1733, and 1740. Section 1315 of the National Flood SUMMARY: This rule identifies Insurance Act of 1968, as amended, 42 Subpart 3933—Assignments and communities, where the sale of flood U.S.C. 4022, prohibits flood insurance Subleases insurance has been authorized under coverage as authorized under the NFIP, the National Flood Insurance Program 42 U.S.C. 4001 et seq.; unless an ■ 6. Amend § 3933.20 by revising the (NFIP), that are scheduled for appropriate public body adopts first sentence of the section to read as suspension on the effective dates listed adequate floodplain management follows: within this rule because of measures with effective enforcement noncompliance with the floodplain measures. The communities listed in § 3933.20 Filing fees. management requirements of the this document no longer meet that Each application for assignment or program. If the Federal Emergency statutory requirement for compliance sublease of record title or overriding Management Agency (FEMA) receives with program regulations, 44 CFR part royalty must include the filing fee found documentation that the community has 59. Accordingly, the communities will

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be suspended on the effective date in the communities listed on the date Regulatory Classification. This final the third column. As of that date, flood shown in the last column. The rule is not a significant regulatory action insurance will no longer be available in Administrator finds that notice and under the criteria of section 3(f) of the community. However, some of these public comment under 5 U.S.C. 553(b) Executive Order 12866 of September 30, communities may adopt and submit the are impracticable and unnecessary 1993, Regulatory Planning and Review, required documentation of legally because communities listed in this final 58 FR 51735. enforceable floodplain management rule have been adequately notified. Executive Order 13132, Federalism. measures after this rule is published but Each community receives 6-month, This rule involves no policies that have prior to the actual suspension date. 90-day, and 30-day notification letters federalism implications under Executive These communities will not be addressed to the Chief Executive Officer Order 13132. suspended and will continue their stating that the community will be Executive Order 12988, Civil Justice eligibility for the sale of insurance. A suspended unless the required floodplain management measures are Reform. This rule meets the applicable notice withdrawing the suspension of standards of Executive Order 12988. the communities will be published in met prior to the effective suspension the Federal Register. date. Since these notifications were Paperwork Reduction Act. This rule made, this final rule may take effect does not involve any collection of In addition, FEMA has identified the within less than 30 days. information for purposes of the Special Flood Hazard Areas (SFHAs) in National Environmental Policy Act. Paperwork Reduction Act, 44 U.S.C. these communities by publishing a This rule is categorically excluded from 3501 et seq. Flood Insurance Rate Map (FIRM). The the requirements of 44 CFR part 10, date of the FIRM, if one has been Environmental Considerations. No List of Subjects in 44 CFR Part 64 published, is indicated in the fourth environmental impact assessment has Flood insurance, Floodplains. column of the table. No direct Federal been prepared. financial assistance (except assistance Regulatory Flexibility Act. The ■ Accordingly, 44 CFR part 64 is pursuant to the Robert T. Stafford Administrator has determined that this amended as follows: Disaster Relief and Emergency rule is exempt from the requirements of Assistance Act not in connection with a the Regulatory Flexibility Act because PART 64—[AMENDED] flood) may legally be provided for the National Flood Insurance Act of ■ construction or acquisition of buildings 1968, as amended, 42 U.S.C. 4022, 1. The authority citation for part 64 in identified SFHAs for communities prohibits flood insurance coverage continues to read as follows: not participating in the NFIP and unless an appropriate public body Authority: 42 U.S.C. 4001 et seq.; identified for more than a year, on adopts adequate floodplain management Reorganization Plan No. 3 of 1978, 3 CFR, FEMA’s initial flood insurance map of measures with effective enforcement 1978 Comp.; p. 329; E.O. 12127, 44 FR 19367, the community as having flood-prone measures. The communities listed no 3 CFR, 1979 Comp.; p. 376. areas (section 202(a) of the Flood longer comply with the statutory § 64.6 [Amended] Disaster Protection Act of 1973, 42 requirements, and after the effective U.S.C. 4106(a), as amended). This date, flood insurance will no longer be ■ 2. The tables published under the prohibition against certain types of available in the communities unless authority of § 64.6 are amended as Federal assistance becomes effective for remedial action takes place. follows:

Date certain Federal assist- State and location Community Effective date authorization/cancellation of Current effective ance no longer No. sale of flood insurance in community map date available in SFHAs

Region V Wisconsin: Gillett, City of, Oconto County ...... 550295 September 30, 1975, Emerg; February 1, October 6, 2010 October 6, 2010 1984, Reg; October 6, 2010, Susp. Lena, Village of, Oconto County ...... 550296 July 7, 1975, Emerg; September 18, 1985, ...... do ...... Do. Reg; October 6, 2010, Susp. Oconto, City of, Oconto County ...... 550297 September 17, 1973, Emerg; August 3, ...... do ...... Do. 1981, Reg; October 6, 2010, Susp. Oconto County, Unincorporated Areas 550294 May 21, 1973, Emerg; January 6, 1983, ...... do ...... Do. Reg; October 6, 2010, Susp. Oconto Falls, City of, Oconto County ... 550298 June 23, 1975, Emerg; July 16, 1981, Reg; ...... do ...... Do. October 6, 2010, Susp. Pulaski, Village of, Brown, Oconto, and 550024 February 27, 1976, Emerg; August 3, 1981, ...... do ...... Do. Shawano Counties. Reg; October 6, 2010, Susp. Suring, Village of, Oconto County...... 550300 January 30, 1975, Emerg; December 1, ...... do ...... Do. 1983, Reg; October 6, 2010, Susp. Region VI Arkansas: Elaine, City of, Phillips County...... 050167 March 29, 1974, Emerg; September 4, ...... do ...... Do. 1985, Reg; October 6, 2010, Susp. Helena-West Helena, City of, Phillips 050168 February 15, 1974, Emerg; July 16, 1979, ...... do ...... Do. County. Reg; October 6, 2010, Susp. Lake View, City of, Phillips County ...... 050169 July 23, 1976, Emerg; February 1, 1987, ...... do ...... Do. Reg; October 6, 2010, Susp. Marvell, City of, Phillips County ...... 050170 July 28, 1993, Emerg; August 1, 2008, Reg; ...... do ...... Do. October 6, 2010, Susp.

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Date certain Federal assist- State and location Community Effective date authorization/cancellation of Current effective ance no longer No. sale of flood insurance in community map date available in SFHAs

Phillips County, Unincorporated Areas. 050166 April 28, 1981, Emerg; April 1, 1988, Reg; ...... do ...... Do. October 6, 2010, Susp. New Mexico: Portales, City of, Roosevelt County...... 350054 October 29, 1974, Emerg; January 20, ...... do ...... Do. 1982, Reg; October 6, 2010, Susp. Red River, Town of, Taos County ...... 350079 April 18, 1975, Emerg; July 1, 1987, Reg; ...... do ...... Do. October 6, 2010, Susp. Taos, Town of, Taos County...... 350080 August 25, 1975, Emerg; August 4, 1987, ...... do ...... Do. Reg; October 6, 2010, Susp. Taos County, Unincorporated Areas ..... 350078 September 25, 1975, Emerg; January 5, ...... do ...... Do. 1989, Reg; October 6, 2010, Susp. Texas: Big Spring, City of, Howard County ...... 480360 February 7, 1975, Emerg; September 30, ...... do ...... Do. 1981, Reg; October 6, 2010, Susp. Brooks County, Unincorporated Areas .. 481196 July 21, 1975, Emerg; July 1, 1987, Reg; ...... do ...... Do. October 6, 2010, Susp. Coahoma, City of, Howard County ...... 481099 September 13, 2007, Emerg; October 6, ...... do ...... Do. 2010, Reg; October 6, 2010, Susp. Falfurrias, City of, Brooks County ...... 480086 March 21, 1975, Emerg; August 17, 1981, ...... do ...... Do. Reg; October 6, 2010, Susp. Howard County, Unincorporated Areas 481227 June 3, 1982, Emerg; February 1, 1988, ...... do ...... Do. Reg; October 6, 2010, Susp. Kountze, City of, Hardin County ...... 480845 February 27, 1987, Emerg; November 1, ...... do ...... Do. 1989, Reg; October 6, 2010, Susp. Lumberton, City of, Hardin County ...... 481111 May 8, 1979, Emerg; May 8, 1979, Reg; ...... do ...... Do. October 6, 2010, Susp. Rose Hill Acres, City of, Hardin County 480846 March 8, 1974, Emerg; April 15, 1977, Reg; ...... do ...... Do. October 6, 2010, Susp. Silsbee, City of, Hardin County ...... 480285 June 7, 1974, Emerg; May 1, 1978, Reg; ...... do ...... Do. October 6, 2010, Susp. Sour Lake, City of, Hardin County ...... 480286 June 3, 1974, Emerg; October 28, 1977, ...... do ...... Do. Reg; October 6, 2010, Susp. Region VII Iowa: Earlham, City of, Madison County ...... 190570 September 6, 1977, Emerg; September 30, ...... do ...... Do. 1988, Reg; October 6, 2010, Susp. East Peru, City of, Madison County ...... 190450 April 25, 1977, Emerg; February 1, 1987, ...... do ...... Do. Reg; October 6, 2010, Susp. Madison County, Unincorporated Areas 190887 September 10, 1993, Emerg; September 1, ...... do ...... Do. 1996, Reg; October 6, 2010, Susp. Patterson, City of, Madison County ...... 190451 March 27, 1979, Emerg; January 1, 1987, ...... do ...... Do. Reg; October 6, 2010, Susp. Winterset, City of, Madison County ...... 190944 April 24, 1992, Emerg; May 3, 1993, Reg; ...... do ...... Do. October 6, 2010, Susp. Kansas: Harvey County, Unincor- 200585 October 19, 1978, Emerg; August 15, 1983, ...... do ...... Do. porated Areas. Reg; October 6, 2010, Susp. Newton, City of, Harvey County ...... 200133 September 13, 1974, Emerg; October 2, ...... do ...... Do. 1979, Reg; October 6, 2010, Susp. North Newton, City of, Harvey County .. 200542 June 28, 1979, Emerg; June 28, 1979, Reg; ...... do ...... Do. October 6, 2010, Susp. Region VIII Utah: Uintah County, Unincorporated Areas .. 490147 November 30, 1977, Emerg; February 1, ...... do ...... Do. 1986, Reg; October 6, 2010, Susp. Vernal, City of, Uintah County...... 490149 April 16, 1975, Emerg; March 18, 1986, ...... do ...... Do. Reg; October 6, 2010, Susp. *-do- =Ditto. Code for reading third column: Emerg. —Emergency; Reg. —Regular; Susp. —Suspension.

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Dated: September 3, 2010. Wildlife Service; 4401 N. Fairfax Drive, includes Physaria filiformis among six Edward L. Connor, Suite 222; Arlington, VA 22203. other Midwest species. We will give the Acting Federal Insurance and Mitigation See Public Comments in same consideration to comments in Administrator, Department of Homeland SUPPLEMENTARY INFORMATION for more regard to the taxonomy of Missouri Security, Federal Emergency Management information about submitting bladderpod submitted in response to Agency. comments. either this direct final rule or our notice [FR Doc. 2010–22796 Filed 9–13–10; 8:45 am] FOR FURTHER INFORMATION CONTACT: to initiate 5-year reviews; you do not BILLING CODE 9110–12–P Carlita Payne, Fish and Wildlife need to submit separate comments Biologist, U.S. Fish and Wildlife pertaining to this issue for both Service, Midwest Regional Office, documents. DEPARTMENT OF THE INTERIOR Division of Endangered Species, 1 Public Comments Federal Drive, Fort Snelling, MN 55111– Fish and Wildlife Service 4056; telephone 612–713–5350. You may submit your comments and Individuals who are hearing impaired or materials regarding this direct final rule 50 CFR Part 17 speech impaired may call the Federal by one of the methods listed in the [Docket No. FWS–R3–ES–2010–0068; Relay Service at 800–877–8337 for TTY ADDRESSES section. Please include 92220–1113–0000–B3] (telephone typewriter or teletypewriter) sufficient information with your comments that allows us to verify any RIN 1018–AX28 assistance 24 hours a day, 7 days a week. scientific or commercial information you include. We will not consider Endangered and Threatened Wildlife SUPPLEMENTARY INFORMATION: and Plants; Technical Corrections for comments sent by e-mail or fax, or to an Three Midwest Region Plant Species Purpose of Direct Final Rule and Final address not listed in the ADDRESSES Action section. AGENCY: Fish and Wildlife Service, We will post all comments on Interior. The purpose of this direct final rule is to notify the public that we are http://www.regulations.gov. This ACTION: Direct final rule. revising the List of Endangered and generally means that we will post any personal information you provide us. SUMMARY: We, the U.S. Fish and Threatened Plants to reflect the scientifically accepted taxonomy and Before including your address, phone Wildlife Service, announce the revised number, e-mail address, or other taxonomy of Lesquerella filiformis nomenclature of three plant species listed under section 4 of the Act (16 personal information in your comment, (Missouri bladderpod), Sedum you should be aware that your entire integrifolium ssp. leedyi (Leedy’s U.S.C. 1531 et seq.). These changes to the List of Endangered and Threatened comment—including your personal roseroot), and Mimulus glabratus var. identifying information—may be made michiganensis (Michigan monkey- Plants (50 CFR 17.12(h)) reflect the most recently accepted scientific names in publicly available at any time. While flower) under the Endangered Species you can ask us in your comment to Act of 1973, as amended (Act). We are accordance with 50 CFR 17.12(b). We are publishing this rule without a withhold your personal identifying revising the List of Endangered and information from public review, we Threatened Plants to reflect the current prior proposal because this is a noncontroversial action that does not cannot guarantee that we will be able to scientifically accepted taxonomy and do so. nomenclature of these species. We alter the regulatory protections afforded revise the scientific names of these to these species, and therefore, in the Comments and materials we receive, species as follows: Physaria filiformis best interest of the public, should be as well as supporting documentation we (=Lesquerella f.), Rhodiola integrifolia undertaken in as timely a manner as used in preparing this direct final rule, ssp. leedyi (=Sedum integrifolium ssp. possible. This rule will be effective, as will be available for public inspection l.), and Mimulus michiganensis (=M. published in this document, on the on the Internet at http:// glabratus var. michiganensis), effective date specified in the DATES www.regulations.gov or by appointment, respectively. section, unless we receive significant during normal business hours at the adverse comments on or before the U.S. Fish and Wildlife Service Midwest DATES: This rule is effective December comment due date specified in the Regional Office (see FOR FURTHER 13, 2010, without further action, unless DATES section of this document. INFORMATION CONTACT). Please note that significant adverse comment is received Significant adverse comments are comments posted to http:// by October 14, 2010. If significant comments that provide strong www.regulations.gov are not adverse comment is received, we will justifications as to why this rule should immediately viewable. When you publish a timely withdrawal of the rule not be adopted or why it should be submit a comment, the system receives in the Federal Register. changed. it immediately. However, the comment ADDRESSES: You may submit comments If we receive significant adverse will not be publicly viewable until we by one of the following methods: comments, we will publish a document post it, which might not occur until • Federal eRulemaking Portal: http:// in the Federal Register withdrawing several days after submission. www.regulations.gov. Follow the this rule before the effective date, and Information regarding this rule is instructions for submitting comments to we will engage in the normal available in alternative formats upon Docket No. FWS–R3–ES–2010–0068. rulemaking process to promulgate these request (see FOR FURTHER INFORMATION • U.S. mail or hand-delivery: Public changes to 50 CFR 17.12. CONTACT). For information pertaining to Comments Processing, Attn: FWS–R3– Elsewhere in today’s issue of the specific species, please contact the ES–2010–0068; Division of Policy and Federal Register, we have published a following Ecological Services Field Directives Management; U.S. Fish and notice to initiate 5-year reviews that Offices:

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Contact Person, Phone, Species E-mail Contact Address

Physaria filiformis (=Lesquerella f.) ...... Charlie Scott, Field Supervisor, or Paul Columbia Missouri Field Office, U.S. Fish and McKenzie, Endangered Species Coordi- Wildlife Service, 101 Park DeVille Drive, nator; (573) 234–2132, extension 107, Suite A, Columbia, MO 65203–0057. [email protected]. Rhodiola integrifolia ssp. leedyi (=Sedum Tony Sullins, Field Supervisor, or Phil Twin Cities Field Office, U.S. Fish and Wildlife integrifolium ssp. l.). Delphey, Endangered Species Coordinator; Service, 1401 American Boulevard E., (612) 725–3548, [email protected]. Bloomington, MN 55425–1665. Mimulus michiganensis (=M. glabratus var. Acting Field Supervisor, or Tameka East Lansing Field Office, U.S. Fish and Wild- michiganensis). Dandridge, Biologist; (517) 351–8315, life Service, 2651 Coolidge Road, Suite [email protected]. 101, East Lansing, MI 48823–5902.

Background similarities in the floral patterns, W. Moore) H. Ohba (Ohba 2003, p. 218). growth, and trichome morphology The species was listed as threatened on Section 17.12(b) of title 50 of the Code between Lesquerella and Physaria (Al- April 22, 1992 (57 FR 14649) and will of Federal Regulations (CFR) requires us Shehbaz and O’Kane 2002, p. 319). The continue to be listed as threatened. to use the most recently accepted genera are also characterized by their scientific name of any plant species that Mimulus michiganensis colpate pollen grains, which is a we have determined to be an distinguishable synapomorphic trait The scientific name change of endangered or threatened species. Using from the rest of the family (Al-Shehbaz Mimulus michiganensis from Mimulus the best available scientific information, and O’Kane 2002, p. 320). The new glabratus var. michiganensis is this direct final rule documents combination is Physaria filiformis supported by Posto and Prather’s (2003, taxonomic changes of the scientific (Rollins) O’Kane & Al-Shehbaz (Al- pp. 172–173) extensive evolutionary names to three entries on the List of Shehbaz and O’Kane 2002, p. 323). Only and genetic studies. At the time of its Endangered and Threatened Plants (50 North American species’ nomenclatural listing (55 FR 25596; June 21, 1990), CFR 17.12(h)). The basis for the adjustments were included in Al- Mimulus glabratus var. michiganensis taxonomic changes is supported by Shehbaz and O’Kane’s publication (Michigan monkey-flower) was ranked published studies in peer-reviewed (2002, p. 321). This taxonomic change is as a variety. Posto and Prather’s (2003, journals. We revise the scientific names included in our most recent 5-year pp. 172–178) study supports the of these species under section 4 of the review for the species (USFWS 2008, p. elevation of the taxon in rank to species Act (16 U.S.C. 1531 et seq.) as follows: 2), as well as the reclassification of this Mimulus michiganensis, and, therefore, Physaria filiformis (=Lesquerella f.) plant from endangered to threatened the new combination was established (Missouri bladderpod), Rhodiola status on October 15, 2003 (68 FR and accepted in the scientific integrifolia ssp. leedyi (=Sedum 59337). This species will continue to be community. Pennell (1935 in USFWS integrifolium ssp. l.) (Leedy’s roseroot), listed as threatened. 1997, p. 1) originally described the and Mimulus michiganensis (=M. taxon as a subspecies of M. glabratus, Rhodiola integrifolia ssp. leedyi glabratus var. michiganensis) (Michigan and Fassett (1939 in USFWS 1997, p. 1) monkey-flower). We make these changes The scientific name change of subsequently gave the taxon varietal to the List of Endangered and Rhodiola integrifolia ssp. leedyi status. Past researchers noted Threatened Plants (50 CFR 17.12(h)) to (Leedy’s roseroot) from Sedum morphological overlap with other taxa, reflect the most recently accepted integrifolium ssp. leedyi is supported by particularly the more common, wide- scientific names in accordance with 50 extensive morphological and genetic ranging James’ monkey-flower (M. CFR 17.12(b). studies. Carl Linnaeus described the glabratus var. jamesii) (Crispin 1981 in Taxonomic Classification genus Rhodiola in 1753, recognizing it USFWS 1997, p. 1; Bliss 1983 in as distinct from the genus Sedum USFWS 1997, p. 1; Bliss 1986 in Physaria filiformis (Moran 2000, p. 137; Ohba 2003, p. USFWS 1997, p. 1), but floral character The scientific name change of 210), but many twentieth century studies of closely related taxa supported Physaria filiformis (Rollins) O’Kane & authors regarded the genus as a maintaining variety michiganensis as a Al-Shehbaz (Missouri bladderpod) from synonym of Sedum L. (Ohba 1980, pp. distinct taxonomic entity (Bliss 1983 in Lesquerella filiformis Rollins (Rollins 356–358). However, recent evidence, USFWS 1997, p. 1; Bliss 1986 in 1956, pp. 201–202; Rollins 1993, p. 618) including chloroplast and nuclear DNA USFWS 1997, p. 1; Minc 1989 in is supported by Al-Shehbaz and data, support the original recognition of USFWS 1997, p. 1). O’Kane’s (2002, pp. 319–320) extensive Sedum and Rhodiola as distinct genera However, random amplified molecular, ecological, morphological, (Ohba 1980, pp. 356–358; Van Ham and polymorphic DNA (RAPD) data (Posto and distributional data. Al-Shehbaz and ‘T Hart 1998, p. 127; Ohba 2003, p. 210; and Prather 2003, pp. 176–177) revealed O’Kane (2002, p. 321) concluded that Mayuzumi and Ohba 2004, p. 588). R. the following: M. michiganensis is the genus Lesquerella should be united T. Clausen (1975, p. 474), following the genetically distinct from other members with the earlier-published genus mid-twentieth century trend, treated of the Mimulus complex; it has low Physaria, initially discussed in Gray Rhodiola as a subgenus of Sedum, but genetic similarity to M. glabratus var. (1848, pp. 161–162). Although Rollins the Flora of North America has more jamesii (a species implicated in its (1939, pp. 393–398; 1993, pp. 588–589, recently returned to the original origin); and groups of M. michiganensis pp. 696–697) supported the separation recognition of Rhodiola as a distinct individuals separate from all other of the two genera because Physaria has genus (Moran 2009, p. 164) that individuals in the Unweighted Pair didymous fruits with deep sinuses includes Leedy’s roseroot. The new Group Method with Arithmetic Mean between the valves distally, and often combination is Rhodiola integrifolia (UPGMA) phenogram. In addition, M. proximally as well, he also noted strong Rafinesque ssp. leedyi (Rosendahl & J. michiganensis is not interfertile with

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any other member of the M. glabratus adopted under section 4(a) of the List of Subjects in 50 CFR Part 17 complex, and it maintains its Endangered Species Act. We published Endangered and threatened species, morphological distinctiveness where it a notice outlining our reasons for this Exports, Imports, Reporting and is found sympatric with other M. determination in the Federal Register recordkeeping requirements, glabratus (Posto and Prather 2003, p. on October 25, 1983 (43 FR 49244). Transportation. 177). For these reasons, Posto and Prather (2003, p. 172) report the Clarity of the Rule Regulation Promulgation elevation of the taxon in rank from We are required by Executive Orders ■ variety to species, and they found no 12866 and 12988 and by the For the reasons given in the preamble, evidence to support earlier hypotheses Presidential Memorandum of June 1, we amend part 17, subchapter B of or a role of M. guttatus in the origin of 1998, to write all rules in plain chapter I, title 50 of the Code of Federal M. michiganensis through hybridization language. This means that each rule we Regulations, as set forth below: with M. glabratus var. jamesii or publish must: PART 17—[AMENDED] through direct ancestry via an (a) Be logically organized; aneuploidy event. The species will (b) Use the active voice to address ■ 1. The authority citation for part 17 continue to be listed as endangered. readers directly; continues to read as follows: Required Determinations (c) Use clear language rather than Authority: 16 U.S.C. 1361–1407; 16 U.S.C. jargon; 1531–1544; 16 U.S.C. 4201–4245; Public Law Paperwork Reduction Act of 1995 (d) Be divided into short sections and 99–625; 100 Stat. 3500; unless otherwise This rule does not contain any new sentences; and noted. collections of information that require (e) Use lists and tables wherever § 17.12 [Amended] approval by OMB under the Paperwork possible. Reduction Act (44 U.S.C. 3501 et seq.). ■ 2. Amend the List of Endangered and This rule will not impose recordkeeping If you feel that we have not met these Threatened Plants in § 17.12(h) by: or reporting requirements on State or requirements, send us comments by one ■ a. Removing the entries under local governments, individuals, of the methods listed in the ADDRESSES FLOWERING PLANTS for ‘‘Lesquerella businesses, or organizations. An agency section. To help us to revise this rule, filiformis’’, ‘‘Mimulus glabratus var. may not conduct or sponsor, and a your comments should be as specific as michiganensis’’, and ‘‘Sedum person is not required to respond to, a possible. For example, you should tell integrifolium ssp. leedyi’’; and collection of information unless it us the numbers of the sections or ■ b. Adding in alphabetic order under displays a currently valid OMB control paragraphs that are unclearly written, FLOWERING PLANTS entries for number. which sections or sentences are too ‘‘Mimulus michiganensis (=M. glabratus long, the sections where you feel lists or var. michiganensis)’’, ‘‘Physaria National Environmental Policy Act tables would be useful, etc. filiformis (=Lesquerella f.)’’, and We have determined that we do not References Cited ‘‘Rhodiola integrifolia ssp. leedyi need to prepare Environmental (=Sedum integrifolium ssp. l.)’’ to read Assessments, or Environmental Impact A complete list of the referenced as follows: Statements, as defined under the materials is available upon request from authority of the National Environmental the U.S. Fish and Wildlife Service § 17.12 Endangered and threatened plants. Policy Act of 1969 (42 U.S.C. 4321 et Midwest Regional Office (see FOR * * * * * seq.), in connection with regulations FURTHER INFORMATION CONTACT). (h) * * *

Species Historic Family Status When listed Critical habi- Special Scientific name Common name range tat rules

******* Mimulus Michigan monkey- U.S.A. (MI) ...... Scrophulariaceae .... E 392, NA NA michiganensis flower. 780 (=Mimulus glabratus var. michiganensis).

******* Physaria filiformis Missouri bladderpod U.S.A. (AR, MO) ..... Brassicaceae ...... T 253, 739, NA NA (=Lesquerella f.). 780

******* Rhodiola integrifolia Leedy’s roseroot ..... U.S.A. (MN, NY) ..... Crassulaceae ...... T 460, NA NA ssp. leedyi 780 (=Sedum integrifolium ssp. l.).

*******

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Dated: August 19, 2010. (TAC) assigned to the Bering Sea and metric tons (mt) and to the Amendment Wendi Weber, Aleutian Islands trawl limited access 80 cooperative is 90,733 mt as Acting Deputy Director, Fish and Wildlife sector to the Amendment 80 cooperative established by the final 2010 and 2011 Service. in the Bering Sea and Aleutian Islands harvest specifications for groundfish in [FR Doc. 2010–22810 Filed 9–13–10; 8:45 am] management area (BSAI). This action is the BSAI (75 FR 11778, March 12, BILLING CODE 4310–55–P necessary to allow the 2010 total 2010). allowable catch of yellowfin sole to be The Administrator, Alaska Region, fully harvested. NMFS, has determined that 20,000 mt of DEPARTMENT OF COMMERCE DATES: Effective September 9, 2010, the yellowfin sole TAC assigned to the through 2400 hrs, Alaska local time BSAI trawl limited access sector will National Oceanic and Atmospheric (A.l.t.), December 31, 2010. not be harvested. Therefore, in Administration FOR FURTHER INFORMATION CONTACT: accordance with § 679.91(f), NMFS reallocates 20,000 mt of yellowfin sole 50 CFR Part 679 Steve Whitney, 907–586–7269. SUPPLEMENTARY INFORMATION: NMFS from the BSAI trawl limited access [Docket No. 0910131363–0087–02] manages the groundfish fishery in the sector to the Amendment 80 cooperative RIN 0648–XY99 BSAI according to the Fishery in the BSAI. In accordance with Management Plan for Groundfish of the § 679.91(f), NMFS will reissue Fisheries of the Exclusive Economic Bering Sea and Aleutian Islands cooperative quota permits for the Zone Off Alaska; Reallocation of Management Area (FMP) prepared by reallocated yellowfin sole following the Yellowfin Sole in the Bering Sea and the North Pacific Fishery Management procedures set forth in § 679.91(f)(3). Aleutian Islands Management Area Council under authority of the The harvest specifications for AGENCY: National Marine Fisheries Magnuson-Stevens Fishery yellowfin sole included in the harvest Service (NMFS), National Oceanic and Conservation and Management Act. specifications for groundfish in the Atmospheric Administration (NOAA), Regulations governing fishing by U.S. BSAI (75 FR 11778, March 12, 2010) are Commerce. vessels in accordance with the FMP revised as follows: 22,369 mt to the appear at subpart H of 50 CFR part 600 ACTION: Temporary rule; reallocation. BSAI trawl limited access sector and and 50 CFR part 679. 110,733 mt to the Amendment 80 SUMMARY: NMFS is reallocating the The 2010 yellowfin sole TAC assigned cooperative in the BSAI. Table 7a is projected unused amount of the 2010 to the Bering Sea and Aleutian Islands correctly revised and republished in its yellowfin sole total allowable catch trawl limited access sector is 42,369 entirety as follows:

TABLE 7A—FINAL 2010 COMMUNITY DEVELOPMENT QUOTA (CDQ) RESERVES, INCIDENTAL CATCH AMOUNTS (ICAS), AND AMENDMENT 80 ALLOCATIONS OF THE ALEUTIAN ISLANDS PACIFIC OCEAN PERCH, AND BSAI FLATHEAD SOLE, ROCK SOLE, AND YELLOWFIN SOLE TACS [Amounts are in metric tons]

Pacific ocean perch Flathead Rock Yellowfin sole sole sole Sector Eastern Central Western Aleutian Aleutian Aleutian District District District BSAI BSAI BSAI

TAC ...... 4,220 4,270 6,540 60,000 90,000 219,000 CDQ ...... 452 457 700 6,420 9,630 23,433 ICA ...... 100 50 50 5,000 10,000 2,000 BSAI trawl limited access ...... 367 376 116 0 0 22,369 Amendment 80 ...... 3,302 3,387 5,674 48,580 70,370 171,198 Amendment 80 limited access ...... 1,751 1,796 3,009 5,708 17,507 60,465 Amendment 80 cooperatives ...... 1,551 1,591 2,666 42,872 52,863 110,733

This will enhance the socioeconomic (AA), finds good cause to waive the the revised allocations. Immediate well-being of harvesters dependent requirement to provide prior notice and notification is necessary to allow for the upon yellowfin sole in this area. The opportunity for public comment orderly conduct and efficient operation Regional Administrator considered the pursuant to the authority set forth at 5 of this fishery, to allow the industry to following factors in reaching this U.S.C. 553(b)(B) as such requirement is plan for the fishing season, and to avoid decision: (1) The current catch of impracticable and contrary to the public potential disruption to the fishing fleet yellowfin sole by the BSAI trawl limited interest. This requirement is as well as processors. NMFS was unable access sector and, (2) the harvest impracticable and contrary to the public to publish a notice providing time for capacity and stated intent on future interest as it would prevent NMFS from public comment because the most harvesting patterns of the Amendment responding to the most recent fisheries recent, relevant data only became 80 cooperative that participates in this data in a timely fashion and would available as of September 8, 2010. BSAI fishery. delay the reallocation of yellowfin sole The AA also finds good cause to Classification from the BSAI trawl limited access waive the 30-day delay in the effective This action responds to the best sector to the Amendment 80 cooperative date of this action under 5 U.S.C. available information recently obtained in the BSAI. Since the fishery is 553(d)(3). This finding is based upon from the fishery. The Assistant currently open, it is important to the reasons provided above for waiver of Administrator for Fisheries, NOAA immediately inform the industry as to

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prior notice and opportunity for public (FMP) prepared by the North Pacific following factors in reaching this comment. Fishery Management Council under decision: (1) the current catch of Pacific This action is required by § 679.91 authority of the Magnuson-Stevens cod by the applicable BSAI sectors and, and is exempt from review under Fishery Conservation and Management (2) the harvest capacity and stated intent Executive Order 12866. Act. Regulations governing fishing by on future harvesting patterns of vessels Authority: 16 U.S.C. 1801 et seq. U.S. vessels in accordance with the FMP in the sectors participating in this appear at subpart H of 50 CFR part 600 fishery. Dated: September 9, 2010. and 50 CFR part 679. Classification Emily H. Menashes, The 2010 Pacific cod total allowable Acting Director, Office of Sustainable catch (TAC) in the BSAI is 168,780 Fisheries, National Marine Fisheries Service. This action responds to the best metric tons (mt) as established by the available information recently obtained [FR Doc. 2010–22868 Filed 9–9–10; 4:15 pm] final 2010 and 2011 harvest from the fishery. The Assistant BILLING CODE 3510–22–P specifications for groundfish in the Administrator for Fisheries, NOAA BSAI (75 FR 11778, March 12, 2010). (AA), finds good cause to waive the Pursuant to ’ 679.20(a)(7)(ii), the DEPARTMENT OF COMMERCE requirement to provide prior notice and allocations of the Pacific cod TAC are opportunity for public comment National Oceanic and Atmospheric 3,467 mt to American Fisheries Act pursuant to the authority set forth at 5 Administration (AFA) trawl catcher/processors and U.S.C. 553(b)(B) as such requirement is 16,878 mt to the Amendment 80 impracticable and contrary to the public 50 CFR Part 679 cooperative. The allocation to catcher interest. This requirement is vessels using trawl gear is 32,809 mt impracticable and contrary to the public [Docket No. 0910131363–0087–02] after one reallocation (75 FR 52478, interest as it would prevent NMFS from RIN 0648–XZ01 August 26, 2010). responding to the most recent fisheries As of September 8, 2010 the data in a timely fashion and would Fisheries of the Exclusive Economic Administrator, Alaska Region, NMFS delay the reallocation of Pacific cod. Zone Off Alaska; Reallocation of (Regional Administrator), has Since the fishery is currently open, it is Pacific cod in the Bering Sea and determined that catcher vessels using important to immediately inform the Aleutian Islands Management Area trawl gear will not be able to harvest industry as to the revised allocations. 4,000 mt of Pacific cod allocated to Immediate notification is necessary to AGENCY: National Marine Fisheries those vessels under ’ 679.20(a)(7)(ii). Service (NMFS), National Oceanic and allow for the orderly conduct and The Regional Administrator has efficient operation of this fishery, to Atmospheric Administration (NOAA), determined that the projected Commerce. allow the industry to plan for the fishing unharvested amount is unlikely to be season, and to avoid potential ACTION: Temporary rule; reallocation. harvested by any of the other catcher disruption to the fishing fleet as well as SUMMARY: NMFS is reallocating vessel sectors described in processors. NMFS was unable to projected unused amounts of Pacific cod § 679.20(a)(7)(iii)(A). Therefore, in publish a notice providing time for from catcher vessels using trawl gear to accordance with § 679.20(a)(7)(iii)(B), public comment because the most American Fisheries Act catcher/ NMFS apportions 600 mt of Pacific cod recent, relevant data only became processors and the Amendment 80 from catcher vessels using trawl gear to available as of September 8, 2010. AFA trawl/catcher processors and 3,400 cooperative in the Bering Sea and The AA also finds good cause to Aleutian Islands management area. mt of Pacific cod from catcher vessels using trawl gear to the Amendment 80 waive the 30 day delay in the effective These actions are necessary to allow the date of this action under 5 U.S.C. 2010 total allowable catch of Pacific cod cooperative. The allocations for Pacific cod 553(d)(3). This finding is based upon established for trawl catcher vessels to the reasons provided above for waiver of be harvested. specified in the final 2010 and 2011 final harvest specifications for prior notice and opportunity for public DATES: Effective September 9, 2010, groundfish in the BSAI (75 FR 11778, comment. until 2400 hours, A.l.t., December 31, March 12, 2010) and one reallocation This action is required by ’ 679.20 and 2010. (75 FR 52478, August 26, 2010) are is exempt from review under Executive FOR FURTHER INFORMATION CONTACT: revised as follows: 4,067 mt to AFA Order 12866. Obren Davis, 907–586 7228. catcher/processors using trawl gear, Authority: 16 U.S.C. 1801 et seq. SUPPLEMENTARY INFORMATION: NMFS 20,278 mt to the Amendment 80 manages the groundfish fishery in the cooperative, and 28,809 mt to catcher Dated: September 9, 2010. Bering Sea and Aleutian Islands vessels using trawl gear. Emily H. Menashes, management area (BSAI) according to This will enhance the socioeconomic Acting Director, Office of Sustainable the Fishery Management Plan for well-being of harvesters dependent Fisheries, National Marine Fisheries Service. Groundfish of the Bering Sea and upon Pacific cod in this area. The [FR Doc. 2010–22871 Filed 9–9–10; 4:15 pm] Aleutian Islands Management Area Regional Administrator considered the BILLING CODE 3510–22–S

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Proposed Rules Federal Register Vol. 75, No. 177

Tuesday, September 14, 2010

This section of the FEDERAL REGISTER and 5 p.m., Monday through Friday, www.regulations.gov, including any contains notices to the public of the proposed except Federal holidays. personal information you provide. We issuance of rules and regulations. The For service information identified in will also post a report summarizing each purpose of these notices is to give interested this proposed AD, contact Boeing substantive verbal contact we receive persons an opportunity to participate in the Commercial Airplanes, Attention: Data about this proposed AD. rule making prior to the adoption of the final & Services Management, P. O. Box 3707, rules. Discussion MC 2H–65, Seattle, Washington 98124– 2207; telephone 206–544–5000, We received reports that the warning DEPARTMENT OF TRANSPORTATION extension 1; fax 206–766–5680; e-mail horn did not sound during the takeoff [email protected]; Internet warning system test of the S132 ‘‘nose Federal Aviation Administration https://www.myboeingfleet.com. You up stab takeoff warning switch.’’ Certain may review copies of the referenced airplanes were found to have switch 14 CFR Part 39 service information at the FAA, failures, which resulted in lack of aural Transport Airplane Directorate, 1601 warning when the stabilizer was [Docket No. FAA–2010–0853; Directorate positioned outside of the green band Identifier 2010–NM–116–AD] Lind Avenue, SW., Renton, Washington. For information on the availability of limits. Also, operators found that both RIN 2120–AA64 this material at the FAA, call 425–227– internal contacts would not actuate 1221. during switch rotation. A takeoff Airworthiness Directives; The Boeing warning system switch failure, if not Company Model 737–600, –700, –700C, Examining the AD Docket corrected, could result in auto-rotation, –800, –900, and –900ER Series You may examine the AD docket on resulting in tail strike, stall, high-speed Airplanes the Internet at http:// runway overrun, rejected takeoff, or AGENCY: Federal Aviation www.regulations.gov; or in person at the failure to clear terrain or obstacles after Administration (FAA), DOT. Docket Management Facility between 9 takeoff, which could reduce the ability a.m. and 5 p.m., Monday through of the flightcrew to maintain the safe ACTION: Notice of proposed rulemaking flight and landing of the airplane. (NPRM). Friday, except Federal holidays. The AD docket contains this proposed AD, the Relevant Service Information SUMMARY: We propose to adopt a new regulatory evaluation, any comments airworthiness directive (AD) for certain received, and other information. The We have reviewed Boeing Service Model 737–600, –700, –700C, –800, street address for the Docket Office Bulletin 737–27–1289, dated April 7, –900, and –900ER series airplanes. This (telephone 800–647–5527) is in the 2010, which describes procedures for proposed AD would require repetitive ADDRESSES section. Comments will be repetitive testing of the stabilizer takeoff testing of the stabilizer takeoff warning available in the AD docket shortly after warning switches. The corrective switches, and corrective actions if receipt. actions include replacing failed necessary. This proposed AD results FOR FURTHER INFORMATION CONTACT: stabilizer warning switches. from reports that the warning horn did Jeffrey W. Palmer, Aerospace Engineer, FAA’s Determination and Requirements not sound during the takeoff warning Systems and Equipment Branch, ANM– of this Proposed AD system test of the S132 ‘‘nose up stab 130S, FAA, Seattle Aircraft Certification We are proposing this AD because we takeoff warning switch.’’ We are Office (ACO), 1601 Lind Avenue SW., evaluated all relevant information and proposing this AD to detect and correct Renton, Washington 98057–3356; determined the unsafe condition a takeoff warning system switch failure, telephone (425) 917–6472; fax (425) described previously is likely to exist or which could reduce the ability of the 917–6590. develop in other products of these same flightcrew to maintain the safe flight SUPPLEMENTARY INFORMATION: type designs. This proposed AD would and landing of the airplane. Comments Invited require accomplishing the actions DATES: We must receive comments on specified in the service information this proposed AD by October 29, 2010. We invite you to send any written described previously. ADDRESSES: You may send comments by relevant data, views, or arguments about any of the following methods: this proposed AD. Send your comments Costs of Compliance • Federal eRulemaking Portal: Go to to an address listed under the We estimate that this proposed AD http://www.regulations.gov. Follow the ADDRESSES section. Include ‘‘Docket No. would affect 963 airplanes of U.S. instructions for submitting comments. FAA–2010–0853; Directorate Identifier registry. We also estimate that it would • Fax: 202–493–2251. 2010–NM–116–AD’’ at the beginning of take 1 work-hour per product to comply • Mail: U.S. Department of your comments. We specifically invite with this proposed AD. The average Transportation, Docket Operations, M– comments on the overall regulatory, labor rate is $85 per work-hour. Based 30, West Building Ground Floor, Room economic, environmental, and energy on these figures, we estimate the cost of W12–140, 1200 New Jersey Avenue, SE., aspects of this proposed AD. We will this proposed AD to the U.S. operators Washington, DC 20590. consider all comments received by the to be $81,855, or $85 per product. • Hand Delivery: U.S. Department of closing date and may amend this Transportation, Docket Operations, M– proposed AD because of those Authority for this Rulemaking 30, West Building Ground Floor, Room comments. Title 49 of the United States Code W12–140, 1200 New Jersey Avenue, SE., We will post all comments we specifies the FAA’s authority to issue Washington, DC 20590, between 9 a.m. receive, without change, to http:// rules on aviation safety. Subtitle I,

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section 106, describes the authority of The Boeing Company: Docket No. FAA– requested using the procedures found in 14 the FAA Administrator. ‘‘Subtitle VII: 2010–0853; Directorate Identifier 2010– CFR 39.19. Send information to Attn: Jeffrey Aviation Programs,’’ describes in more NM–116–AD. W. Palmer, Aerospace Engineer, Systems and detail the scope of the Agency’s Equipment Branch, ANM–130S, FAA, Seattle Comments Due Date ACO, 1601 Lind Avenue SW., Renton, authority. (a) We must receive comments by October Washington 98057–3356; telephone (425) We are issuing this rulemaking under 29, 2010. 917–6472; fax (425) 917–6590. Information the authority described in ‘‘Subtitle VII, Affected ADs may be e-mailed to: 9-ANM-Seattle-ACO- Part A, Subpart III, Section 44701: [email protected]. General requirements.’’ Under that (b) None. (2) To request a different method of section, Congress charges the FAA with Applicability compliance or a different compliance time promoting safe flight of civil aircraft in for this AD, follow the procedures in 14 CFR (c) This AD applies to The Boeing 39.19. Before using any approved AMOC on air commerce by prescribing regulations Company Model 737–600, –700, –700C, for practices, methods, and procedures any airplane to which the AMOC applies, –800, –900, and –900ER series airplanes, notify your principal maintenance inspector the Administrator finds necessary for certificated in any category; as identified in (PMI) or principal avionics inspector (PAI), safety in air commerce. This regulation Boeing Service Bulletin 737–27–1289, dated as appropriate, or lacking a principal is within the scope of that authority April 7, 2010. inspector, your local Flight Standards District because it addresses an unsafe condition Subject Office. The AMOC approval letter must specifically reference this AD. that is likely to exist or develop on (d) Air Transport Association (ATA) of products identified in this rulemaking America Code 27: Flight Controls. Issued in Renton, Washington, on action. September 3, 2010. Unsafe Condition Jeffrey E. Duven, Regulatory Findings (e) This AD results from reports that the Acting Manager, Transport Airplane warning horn did not sound during the We determined that this proposed AD Directorate, Aircraft Certification Service. would not have federalism implications takeoff warning system test of the S132 ‘‘nose [FR Doc. 2010–22847 Filed 9–13–10; 8:45 am] under Executive Order 13132. This up stab takeoff warning switch.’’ The Federal proposed AD would not have a Aviation Administration is issuing this AD to BILLING CODE 4910–13–P detect and correct a takeoff warning system substantial direct effect on the States, on switch failure, which could reduce the ability the relationship between the national of the flightcrew to maintain the safe flight DEPARTMENT OF COMMERCE Government and the States, or on the and landing of the airplane. distribution of power and Compliance National Oceanic and Atmospheric responsibilities among the various Administration levels of government. (f) You are responsible for having the actions required by this AD performed within For the reasons discussed above, I 15 CFR Part 922 certify this proposed regulation: the compliance times specified, unless the actions have already been done. 1. Is not a ‘‘significant regulatory [Docket No. 070726412–0071–01] action’’ under Executive Order 12866, Test RIN 0648–AV88 2. Is not a ‘‘significant rule’’ under the (g) Within 6 months after the effective date DOT Regulatory Policies and Procedures of this AD, test the stabilizer takeoff warning Proposed Research Area Within the (44 FR 11034, February 26, 1979), and switches, in accordance with the Gray’s Reef National Marine Sanctuary 3. Will not have a significant Accomplishment Instructions of Boeing economic impact, positive or negative, Service Bulletin 737–27–1289, dated April 7, AGENCY: Office of National Marine on a substantial number of small entities 2010. Repeat the test at intervals not to Sanctuaries (ONMS), National Oceanic exceed 750 flight hours. under the criteria of the Regulatory and Atmospheric Administration Flexibility Act. Replacement and Re-test (NOAA), Department of Commerce (DOC). You can find our regulatory (h) If any stabilizer takeoff warning switch evaluation and the estimated costs of fails the test required in paragraph (g) or (h) ACTION: Proposed rule. compliance in the AD Docket. of this AD, replace the stabilizer takeoff warning switch with a new switch and test SUMMARY: The National Oceanic and List of Subjects in 14 CFR Part 39 the new switch before further flight, in Atmospheric Administration (NOAA) is proposing to create a research area Air transportation, Aircraft, Aviation accordance with the Accomplishment within the Gray’s Reef National Marine safety, Incorporation by reference, Instructions of Boeing Service Bulletin 737– 27–1289, dated April 7, 2010. Within 750 Sanctuary (GRNMS, or Sanctuary). A Safety. flight hours after replacement of any switch, research area is a region specifically The Proposed Amendment test the replaced switch, in accordance with designed for conducting controlled the Accomplishment Instructions of Boeing Accordingly, under the authority scientific studies in the absence of Service Bulletin 737–27–1289, dated April 7, certain human activities that could delegated to me by the Administrator, 2010, and repeat this test on the replaced the FAA proposes to amend 14 CFR part switch thereafter at intervals not to exceed affect the results. NOAA proposes to 39 as follows: 750 flight hours. prohibit fishing, diving, and stopping while transiting in the proposed PART 39—AIRWORTHINESS Special Flight Permit research area. DIRECTIVES (i) Special flight permits, as described in DATES: Comments must be received by Section 21.197 and Section 21.199 of the December 13, 2010. 1. The authority citation for part 39 Federal Aviation Regulations (14 CFR 21.197 Dates for public hearings are: continues to read as follows: and 21.199), are not allowed. (1) October 19, 6–8 p.m., Richmond Authority: 49 U.S.C. 106(g), 40113, 44701. Alternative Methods of Compliance Hill City Center, 529 Cedar Street, (AMOCs) Richmond Hill, GA. § 39.13 [Amended] (j)(1) The Manager, Seattle Aircraft (2) October 20, 6–8 p.m., Bulloch 2. The FAA amends § 39.13 by adding Certification Office (ACO), FAA, has the County Courthouse, 30 N. Main Street, the following new AD: authority to approve AMOCs for this AD, if Statesboro, GA.

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(3) October 21, 6–8 p.m., College of patches of productive live bottom sanctuary. Recreational fishing is the Coastal Georgia, Southeast Georgia habitat. The sanctuary is influenced by primary fishing activity and occurs Conference Center, 3700 Altama complex ocean currents and serves as a throughout the sanctuary but tends to be Avenue, Brunswick, GA. mixing zone for temperate (colder concentrated in certain areas. ADDRESSES: You may submit comments, water) and sub-tropical species. An Because fishing is allowed throughout identified by 0648–AV88, by any one of estimated 180 species of fish, the sanctuary, NOAA has limited the following methods: encompassing a wide variety of sizes, options for gaining better management • Electronic Submissions: Submit all forms, and ecological roles, have been information on the effects it has on fish electronic public comments via the recorded at GRNMS. Loggerhead sea and invertebrate populations and their Federal eRulemaking Portal http:// turtles, a threatened species, use habitats. A research area would allow www.regulations.gov (search for docket GRNMS year-round for foraging and investigations to evaluate possible NOAA–NOS–2009–0103) resting, and the highly endangered impacts from fishing—particularly • Mail: Gray’s Reef National Marine northern right whale is occasionally bottom fishing—on the sanctuary’s Sanctuary, 10 Ocean Science Circle, seen in Gray’s Reef. natural resources by providing a zone Savannah, GA 31411, Attn: Dr. George The sanctuary contains one of the relatively free of human activities and Sedberry, Superintendent. largest nearshore live-bottom reefs in impacts that can be compared to the rest Instructions: No comments will be the southeastern United States. Within of the sanctuary. The research area posted for public viewing until after the the sanctuary, rock outcroppings stand would also allow researchers to more comment period has closed. All above the shifting sands. The series of accurately determine the effects of comments received are a part of the rock ledges and sand expanses has natural events (e.g., hurricanes) and public record and will generally be produced a complex habitat of burrows, cycles (e.g. droughts) on the sanctuary. posted to http://www.regulations.gov troughs, and overhangs that provide a The research area could also serve as an without change. All Personal Identifying solid base for the abundant sessile important sentinel site to monitor and Information (for example, name, invertebrates to attach and grow. This study impacts of climate change, such address, etc.) voluntarily submitted by topography supports an unusual as ocean acidification, which can be the commenter may be publicly assemblage of temperate and tropical better determined in the absence of accessible. Do not submit confidential marine flora and fauna. This flourishing additional human factors such as business information or otherwise ecosystem attracts numerous species of fishing. Sentinel sites are areas well sensitive or protected information. benthic and pelagic fish including suited to ensure sustained observations ONMS will accept anonymous mackerel, grouper, red snapper, black of environmental change, to track comments (enter N/A in the required sea bass, angelfish, and a host of other indicators of ecosystem integrity, and to fields, if you wish to remain fishes. Since GRNMS lies in a transition provide early warning services. anonymous). You may submit area between temperate and tropical Currently the effects of subtle natural attachments to electronic comments in waters, the composition of reef fish variability may be masked by the Microsoft Word, Excel, WordPerfect, or populations changes seasonally. sometimes overwhelming effect of fishing. The ability to conduct these Adobe PDF file formats only. Copies of B. Purpose and Need for Research Area the draft environmental impact investigations in a marine environment statement and proposed rule can be In 2008, NOAA released a report on free of human influences is critical to downloaded or viewed on the Internet the condition of GRNMS providing a meet the resource protection and at http://www.regulations.gov (search summary of the status of resources, scientific research mandates of the for docket #NOAA–NOS–2009–0103) or pressures on those resources, current GRNMS. at http://graysreef.noaa.gov. conditions and trends, and management To provide for comprehensive and responses to the pressures that threaten FOR FURTHER INFORMATION CONTACT: coordinated conservation and the integrity of the marine environment. Resource Protection Coordinator Becky management of natural resources of Specifically, the document includes Shortland at (912) 598–2381. GRNMS as required by the National information on water quality, habitat, Marine Sanctuaries Act (NMSA), SUPPLEMENTARY INFORMATION: living resources, and maritime research that includes a control or I. Background archaeological resources and the human research area where human impacts are activities that affect them. Overall, the limited is needed. There are currently A. Gray’s Reef National Marine resources protected by GRNMS appear no natural live-bottom areas in the Sanctuary to be in fair condition, as defined in the South Atlantic Bight that have been set NOAA designated GRNMS as the 2008 GRNMS condition report. aside for scientific use. Because GRNMS nation’s fourth national marine Emerging threats to the sanctuary is relatively shallow, it affords the sanctuary in 1981 for the purposes of: include invasive species, contamination opportunity to conduct experiments and protecting the quality of this unique and of organisms by waterborne chemicals make observations using SCUBA in a fragile ecological community; promoting from human coastal activities, climate productive reef habitat that is relatively scientific understanding of this live change and ever increasing coastal close to shore. The proximity of the bottom ecosystem; and enhancing populations and recreational use of the sanctuary to coastal universities and public awareness and wise use of this sanctuary. For a copy of the 2008 marine research laboratories makes significant regional resource. GRNMS is GRNMS condition report, please visit GRNMS a logical natural area that can located 16 miles offshore of Sapelo http://sanctuaries.noaa.gov/science/ be used to further understanding and Island, Georgia, on an area of condition/grnms/welcome.html. management of these complex continental shelf stretching from Cape NOAA’s regulations for the sanctuary ecosystems. There is scientific Hatteras, North Carolina, to Cape limit fishing gear in the sanctuary to rod agreement that without having an area Canaveral, Florida (referred to as the and reel (which is used by the vast of the naturally occurring live bottom South Atlantic Bight). GRNMS protects majority of users in the sanctuary), and devoted to research, it becomes very 16.68 square nautical miles of open handline. Despite these gear restrictions, difficult to understand how these reefs ocean and submerged lands of fishing continues to impact the living function in the life history of many particularly dense and nearshore marine resources and habitat of the economically valuable species, and the

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effects of extractive uses on that including trolling for pelagic fish fishing regulations for this action to the productivity. NOAA believes the species could significantly compromise ONMS. proposed action provides a balance the integrity and effectiveness of a II. Proposed Revisions to GRNMS between user concerns and the research research area. Terms of Designation opportunities that are emphasized in the Law enforcement officials expressed sanctuary’s goals and objectives. concern that the enforcement of Section 304(a)(4) of the NMSA requires that the terms of designation C. Research Area Background prohibitions on fishing would be more difficult if diving or stationary vessels include the geographic area included The concept of a research (control) were allowed to continue in the within the Sanctuary; the characteristics area within the sanctuary has been research area, due to the difficulty of of the area that give it conservation, under discussion for many years. The determining the activities of a boat’s recreational, ecological, historical, idea was first raised by members of the occupants from a distance or as officers research, educational, or aesthetic value; public in 1999 during the early stages of approach a boat. The SAC also observed and the types of activities subject to the GRNMS management plan review that any recreational diving activity in regulation by the Secretary to protect process at public scoping meetings. The the research area would make law these characteristics. Section 304(a)(4) GRNMS advisory council set a target to enforcement difficult and could also specifies that the terms of increase the opportunity to distinguish undermine the validity of the research designation may be modified only by scientifically between natural and area. the same procedures by which the human-induced change to species From 2004–2008, the RAWG and SAC original designation was made. To populations in the sanctuary (NMSP also continued to evaluate criteria and implement this action, NOAA proposes 2006). As a means to reach this target, boundaries utilizing the GIS tool and to modify the GRNMS terms of the Sanctuary Advisory Council (SAC) incorporating new information as it designation, which were most recently formed a broad-based Research Area published in the Federal Register on Working Group (RAWG) to consider the became available. Ultimately, four boundary scenarios were recommended October 12, 2006 (74 FR 60055), to read concept of a research area within the as follows (new text in bold and deleted sanctuary. as viable locations for a research area in GRNMS. These boundary scenarios and text in brackets and italics): The RAWG consisted of 1. No change to Article 1, Designation representatives from research, academia, several activity restrictions became the focus of public scoping during March and Effect conservation groups, sport fishing and 2. No change to Article 2, Description diving interests, education, commercial and April 2008. After consideration of public comments and deliberations by of the Area fishing, law enforcement and state and 3. No change to Article 3, federal agency representatives. The the RAWG, the sanctuary superintendent received final Characteristics of the Area RAWG employed a consensus-driven, 4. Article 4, Scope of Regulation, constituent-based process. A Geographic recommendations from the SAC in January 2009. The proposed action Section 1, Activities Subject to Information System (GIS) tool was also Regulation, is modified by: developed by NOAA to analyze options presented in this document are the direct result of the RAWG’s a. Modifying the 4th bullet of Section RAWG members brought forward; this 1 to read as follows: ‘‘Injuring, catching, tool is described in more detail in the recommendations that were adopted by the SAC and provided to GRNMS harvesting, or collecting any marine environmental impact statement organism or any part thereof, living or supporting this action. superintendent, and comments received dead, or attempting any of these The principle conclusion of the during the spring 2008 public scoping. activities;, [ by any means except by use RAWG, which was ultimately adopted Several alternatives to the proposed of rod and reel, and handline gear;]’’ by the entire SAC, was that significant action are analyzed in the b. Modifying the 6th bullet of Section research questions exist at GRNMS that accompanying draft environmental 1 as follows: ‘‘Using explosives, or can only be addressed by establishing a impact statement (DEIS). devices that produce electric charges research area. The final SAC E. South Atlantic Fishery Management underwater; [and’’ recommendations to NOAA, presented Council c. Modifying the 7th bullet of Section in 2008, also included the unanimous 1 as follows: ‘‘Moving, removing, recommendation that all fishing be The action recommended to GRNMS injuring, or possessing a historical prohibited in the research area. by the SAC would close the research In the decision to recommend area to all fishing activity. Therefore, resource, or attempting to move, prohibition of all fishing in the research pursuant to section 304(a)(5) of the remove, injure, or possess a historical area, the RAWG took into consideration National Marine Sanctuaries Act (16 resource[.] , and’’ new information on the growing U.S.C. 1434(a)(5); NMSA), NOAA’s d. Adding the following at the end of knowledge of the linkages between Office of National Marine Sanctuaries Section 1: ‘‘8. Diving.’’ benthic and pelagic natural (ONMS) consulted with the South 5. No Change to Article 5, Relation to communities. The RAWG also Atlantic Fishery Management Council Other Regulatory Programs considered methods used by sport (SAFMC or Council) to develop fishing 6. No change to Article 6, Alteration fishermen to fish both coastal pelagic regulations associated with this of This Designation and bottom fish (reef) species at the proposed research area. The revised terms of designation same time. In addition, downriggers and On March 4, 2009, the SAFMC passed would read as follows: planers, currently permitted in the a motion to: ‘‘Defer to Gray’s Reef NMS Revised Designation Document for the sanctuary, allow anglers to fish the for rule-making in terms of the Gray’s Reef National Marine Sanctuary entire water column, including near the establishment of the Research Area.’’ On bottom. These gear types can impact April 22, 2009, the Council’s decision to Article 1. Designation and Effect benthic communities and allow catch of allow ONMS to draft the fishing The Gray’s Reef National Marine bottom fish, a primary marine resource regulations was formally communicated Sanctuary was designated on January to be studied in the research area. when the SAFMC sent a letter to the 16, 1981 (46 FR 7942). The Act Therefore, allowing any fishing GRNMS Superintendent deferring authorizes the Secretary of Commerce to

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issue such regulations as are necessary all applicable regulatory laws, without outlined in paragraphs (a) and (b) of to implement the designation, including going through the designation section 304 of the Act including public managing and protecting the procedures required by paragraphs (a) hearings, consultation with interested conservation, recreational, ecological, and (b) of section 304 of the NMSA (16 Federal, State, and local government historical, cultural, archaeological, U.S.C. 1434(a) and (b)). agencies, and the South Atlantic Fishery scientific, educational or aesthetic 1. Dredging, drilling into, or otherwise Management Council, review by the resources and qualities of a national altering the submerged lands of the appropriate congressional committees, marine sanctuary. Section 1 of Article 4 sanctuary; and approval by the Secretary of of this Designation Document lists 2. Within the boundary of the Commerce or designee. activities of the type that are presently sanctuary, discharging or depositing any [End of designation document] being regulated or may need to be material or other matter or constructing, regulated in the future, in order to placing, or abandoning any structure, III. Summary of Proposed Revisions to protect sanctuary resources and material or other matter; or discharging the Sanctuary Regulations qualities. Listing in Section 1 does not or depositing any material or other A. Establishment of a Research Area matter outside the boundary of the mean a type of activity is currently The proposed regulations would regulated or would be regulated in the sanctuary that subsequently enters the sanctuary and injures a sanctuary establish a research area within the future. If a type of activity is not listed, GRNMS that would prohibit fishing, however, it may not be regulated except resource or quality; 3. Vessel operations, including diving and stopping a vessel within the on an emergency basis, unless section 1 area. This area is referred to as the is amended to include the type of anchoring; 4. Injuring, catching, harvesting, or Southern Boundary Option. Please refer activity following the same procedures to the GRNMS Web site and the draft by which the original designation was collecting any marine organism or any part thereof, living or dead, or environmental impact statement made. Nothing in this Designation supporting this rulemaking for more Document is intended to restrict attempting any of these activities; 5. Possessing fishing gear that is not information and a map depicting the activities that do not cause an adverse location of the proposed research area effect on the resources or qualities of the allowed to be used in the sanctuary; 6. Using explosives, or devices that within the GRNMS. The research area, sanctuary or on sanctuary property or produce electric charges underwater; which would occupy the southern that do not pose a threat of harm to 7. Moving, removing, injuring, or portion of the GRNMS, would be wholly users of the sanctuary. possessing a historical resource, or within the boundary of the sanctuary Article 2. Description of the Area attempting to move, remove, injure, or and would not change its overall size. possess a historical resource; and The total area that would be designated The sanctuary consists of an area of 8. Diving. as a research area inside GRNMS would ocean waters and the submerged lands be 6.25 square nautical miles (see the thereunder located 17.5 nautical miles Section 2. Emergency Regulation Appendix for coordinates). due east of Sapelo Island, Georgia. The Where necessary to prevent or According to boat sighting data from exact coordinates are defined by minimize the destruction of, loss of, or 1999–2007, only 9.2 percent of boats regulation (15 CFR 922.90). injury to a sanctuary resource or quality; sighted in the sanctuary visited or Article 3. Characteristics of the Area or to minimize the imminent risk of transited the area of the proposed such destruction, loss or injury, any The sanctuary consists of submerged research area, leading to the conclusion activity, including any not listed in that this area is not as popular with calcareous sandstone rock reefs with Section 1 of this Article, is subject to contiguous shallow-buried hard layer sport fishermen and sport divers as the immediate temporary regulation, north-central portion of the sanctuary. and soft sedimentary regime which including prohibition. supports rich and diverse marine plants, NOAA believes the proposed action invertebrates, finfish, turtles, and Article 5. Relation to Other Regulatory provides a balance between user occasional marine mammals in an Programs concerns and the research opportunities that are emphasized in the sanctuary’s otherwise sparsely populated expanse of Section 1. Defense Activities ocean seabed. The area attracts multiple goals and objectives. human uses, including recreational The regulation of activities listed in B. Activities Prohibited Within the fishing and diving, scientific research, Article 4 shall not prohibit any Research Area and educational activities. Department of Defense activity that is essential for national defense or because If adopted, the regulatory changes Article 4. Scope of Regulation of emergency. Such activities shall be would prohibit: (1) Injuring, catching, harvesting, or collecting sanctuary Section 1. Activities Subject to consistent with the regulations to the maximum extent practical. resources (including by fishing); Regulation (2) diving within the research area; and The following activities are subject to Section 2. Other Programs (3) stopping a vessel in the research regulation under the NMSA. Such All applicable regulatory programs area. The proposed regulations would regulation may include prohibitions to will remain in effect, and all permits, add prohibitions specific to the research ensure the protection and management licenses and other authorizations issued area in addition to the existing of the conservation, recreational, pursuant thereto shall be valid within prohibitions set out in 922.92, which ecological, historical, scientific, the sanctuary unless authorizing any apply throughout the Sanctuary. In the educational, cultural, archaeological or activity prohibited by a regulation proposed research area, the following aesthetic resources and qualities of the implementing Article 4. activities would be prohibited and thus area. Because an activity is listed here unlawful for any person to conduct or does not mean that such activity is Article 6. Alteration of This Designation cause to be conducted: Injuring, being or would be regulated. If an The terms of designation, as defined catching, harvesting, or collecting, or activity is listed, however, the activity under section 304(a) of the Act, may be attempting to injure, catch, harvest, or can be regulated, after compliance with modified only by the procedures collect, any marine organism, or any

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part thereof, living or dead (there would IV. Classification rule has been determined to be not be a rebuttable presumption that any significant within the meaning of E.O. A. National Marine Sanctuaries Act marine organism or part thereof, living 12866. or dead, found in the possession of a Section 301(b) of the National Marine D. Executive Order 13132: Federalism person within the research area has Sanctuaries Act (NMSA; 16 U.S.C. 1434) Assessment been collected from the research area); provides authority for comprehensive possessing, carrying, or using any and coordinated conservation and management of national marine All of the proposed actions would fishing gear or means for fishing unless sanctuaries in coordination with other occur in the Exclusive Economic Zone such gear or means is stowed and not resource management authorities. beyond state jurisdiction. There are no available for immediate use while on Section 304(a)(4) of the NMSA requires federalism implications as that term is board a vessel transiting through the the procedures specified in section 304 used in E.O. 13132. The changes will research area without interruption or for for designating a national marine not preempt State law, but will simply valid law enforcement purposes; diving; sanctuary be followed for modifying any complement existing State authorities. stopping a vessel when transiting the term of designation. This action In keeping with the intent of the Order, research area. proposes to revise the terms of NOAA consulted with a number of designation (e.g., scope of regulations) C. Enforcement entities within the region, the State of for the GRNMS. Therefore, NOAA is Georgia, and the South Atlantic Fishery If adopted, the proposed regulations required to comply with Section 304. In Management Council which would be enforced by NOAA and other addition, Section 304(a)(5) of the NMSA participated in development of the authorized agencies (i.e., United States requires that NOAA consult with the research area. Coast Guard, and Georgia Department of appropriate fishery management council E. Regulatory Flexibility Act Natural Resources) in a coordinated and on any action proposing to regulate comprehensive way. Enforcement fishing. As stated in the preamble above, NOAA has worked with the South In accordance with the requirements actions for an infraction would be Atlantic Fishery Management Council, of section 603(a) of the Regulatory prosecuted under the appropriate State of Georgia, and NOAA Fisheries Flexibility Act (RFA; 5 U.S.C. 603(a)), statutes or regulations governing that Service on this issue and all necessary NOAA has prepared an initial infraction. The prohibition against requirements have been completed. In regulatory flexibility analysis (IRFA) catching or harvesting marine organisms accordance with Section 304, the describing the impact of the proposed would include a rebuttable presumption appropriate documents are being action on small businesses. Section that any marine organism or part thereof submitted to the specified Congressional 603(b) (5 U.S.C. 603(b)) requires that found in the possession of a person committees. each IRFA contain a description of the within the research area has been reasons the action is being considered, B. National Environmental Policy Act collected from the research area. a succinct statement of the objectives of, In accordance with Section 304(a)(2) D. Permitting and legal basis for, the action, a of the NMSA (16 U.S.C. 1434(a)(2)), and description of and, where feasible, an If adopted, a research area in the the provisions of the National estimate of the number of small entities southern portion of the sanctuary would Environmental Policy Act (NEPA; to which the proposed action will provide researchers a valuable 42 U.S.C. 4321–4370(a)), a DEIS has apply, a description of the projected been prepared for this proposed action. opportunity to discern between human- reporting, recordkeeping and other The DEIS contains a statement of the induced and natural changes in the compliance requirements of the purpose and need for the project, Gray’s Reef area. Researchers would be description of proposed alternatives proposed action, including an estimate required to obtain permits to conduct including the no action alternative, of the classes of small entities which activities related to research that would description of the affected environment, would be subject to the requirement and otherwise be prohibited by the and evaluation and comparison of the type of professional skills necessary regulations. environmental consequences including for preparation of the report or record, The ONMS regulations, including the cumulative impacts. The preferred and an identification, to the extent regulations for the GRNMS, allow alternative incorporates the creation of a practicable, of all relevant Federal rules NOAA to issue permits to conduct research area in the Southern Option which may duplicate, overlap or activities that would otherwise be Boundary, and proposed prohibition of conflict with the proposed action. prohibited by the regulations (15 CFR fishing, diving, and stopping a vessel In addition, section 603(c) (5 U.S.C. 922 and 922.93). Most permits are while transiting through the research 603(c)) requires that each IRFA contain issued by the Superintendent of the area. Copies of the DEIS are available a description of any significant GRNMS. Requirements for filing permit upon request at the address and Web alternatives to the proposed action applications are specified in ONMS site listed in the ADDRESSES section of which accomplish the stated objectives regulations and the Office of this rule. of applicable statutes and which Management and Budget-approved C. Executive Order 12866: Regulatory minimize any significant economic application guidelines (OMB control Impact impact of the proposed action on small number 0648–0141). Criteria for Under Executive Order (E.O.) 12866, entities. A statement of why NOAA is reviewing permit applications are also if the proposed regulations are considering this action and the contained in the ONMS regulations at ‘‘significant’’ as defined in section objectives of, and legal basis for, the 15 CFR 922.93. In general, permits may 3(f)(1), (2), (3), or (4) of the Order, an proposed rule is contained in the be issued for activities related to assessment of the potential costs and preamble section for the proposed rule scientific research, education, and benefits of the regulatory action must be and is not repeated here. The analysis management. prepared and submitted to the Office of conducted to meet the remaining Management and Budget. This proposed requirements under the RFA follows.

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Initial Regulatory Flexibility Act $1,029,000 and their total operating to total profit. The Optimal Scientific Analysis expenses was $582,000 with total profit Boundary Option impacts 67 percent of of $447,000. Converting these values to recreational fishing resulting in impacts The Small Business Administration 2008 dollars using the consumer price of $335K to total gross revenue and has established thresholds on the index results in gross revenue of $146K to total profit. The Minimal User designation of businesses as ‘‘small $1,251,264, total operating expenses of Impact Boundary Option impacts entities.’’ A fish-harvesting business is $707,712, and total profit of $543,552. 15 percent of recreational fishing considered a ‘‘small’’ business if it has The survey found that approximately annual receipts not in excess of resulting in impacts of $75K to total 40 percent of their fishing activity took gross revenue and $32K to total profit. $3.5 million (13 CFR 121.201). Sports place in GRNMS. and recreation businesses and scenic The Compromise Boundary Option The economic impact of the five impacts 35 percent of recreational and sightseeing transportation alternatives considered for this action, businesses are considered ‘‘small’’ fishing resulting in impacts of $175K to and further described in the DEIS, can total gross revenue and $76K to total businesses if they have annual receipts be estimated by combining results from profit. not in excess of $6 million (13 CFR the 2002 survey with boat location 121.201). According to these limits, analysis completed in 2008. The results This analysis assumes that all each of the businesses listed below are of this analysis are summarized in Table economic value associated with the considered small entities. All analyses 1. The five alternatives contain a no areas closed is lost. Any factor that are based on the most recently updated action alternative (i.e., no designation of could mitigate or off-set the level of and best available information. a research area) and four alternatives impact is not addressed. The estimated In 2002, a survey of charter fishing distinguished by different locations impacts are thought of as ‘‘maximum boat owners/operators was completed. within the sanctuary and by varying potential losses’’ because impacted This survey identified 15 charter boats sizes. The Southern Boundary Option businesses may take action to at least that utilize GRNMS as one of their (preferred) impacts 9 percent of mitigate or off-set most losses (i.e., by fishing locations. It was estimated that recreational fishing resulting in impacts conducting charter operations their 2001 total gross revenue was of $46K to total gross revenue and $20K somewhere nearby).

TABLE 1—ESTIMATED ECONOMIC IMPACTS TO RECREATIONAL CHARTER FISHING BUSINESSES BY ALTERNATIVE, IN 2008 $

Percent Total impact to Total impact to Alternative impact gross revenue profit

No Action ...... 0 ...... Southern Boundary Options (preferred) ...... 9 46,047 20,003 Optimal Scientific Boundary Option ...... 67 335,339 145,672 Minimal User Impact Boundary Option ...... 15 75,076 32,613 Compromise Boundary Option ...... 35 175,177 76,097

No economic impact is expected to searching existing data sources, other provision of the law, no person is result to recreational charter diving gathering and maintaining the data required to respond to, nor shall any businesses because there appear to be needed, and completing and reviewing person be subject to a penalty for failure none currently operating within the the collection of information. to comply with, a collection of sanctuary. In September 2007, in-person Nationwide, NOAA issues information subject to the requirements interviews were conducted with all approximately 200 national marine of the PRA, unless that collection of businesses and organizations offering sanctuary permits each year. Of this information displays a currently valid scuba diving trips along the Georgia amount, three permits are active for OMB Control Number. coast. Four charter scuba operations and research activities within the GRNMS. one scuba diving club were identified Even though this proposed rule may List of Subjects in 15 CFR Part 922 and interviewed. The interviews result in a few additional permits Administrative practice and gathered information that included applications for scientific research at procedure, Coastal zone, Education, operating profiles, preferred diving GRNMS, this rule would not Environmental protection, Marine locations and methods, detailed appreciably change the average annual resources, Natural resources, Penalties, business data (revenue and costs), and number of respondents or the reporting general opinions of the current state of burden for this information Recreation and recreation areas, scuba diving and spearfishing off the requirement. Therefore, NOAA has Reporting and recordkeeping Georgia coast. None of the businesses determined that the proposed requirements, Research. offer scuba diving trips to GRNMS. regulations do not necessitate a Dated: September 3, 2010. modification to its information F. Paperwork Reduction Act Holly Bamford, collection approval by the Office of Acting Deputy Assistant Administrator for This rule contains a collection-of- Management and Budget under the Ocean Services and Coastal Zone information requirement subject to the Paperwork Reduction Act. Management. Paperwork Reduction Act (PRA) which Send comments regarding this burden Accordingly, for the reasons set forth has been approved by OMB under estimate, or any other aspect of this data above, 15 CFR part 922 is proposed to control number 0648–0141. The public collection, including suggestions for reporting burden for national marine reducing the burden, to NOAA (see be amended as follows: sanctuary permits is estimated to ADDRESSES) and by e-mail to average 1 hour per response, including [email protected], or fax to the time for reviewing instructions, (202) 395–7285. Notwithstanding any

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PART 922—NATIONAL MARINE Appendix A to Subpart I of Part 922— FOR FURTHER INFORMATION CONTACT: SANCTUARY PROGRAM Gray’s Reef National Marine Sanctuary David A. Stawick, 202–418–5071. Research Area Boundary Coordinates REGULATIONS Correction [Coordinates listed in this Appendix are 1. The authority citation for Part 922 unprojected (Geographic) and based on the In proposed rule FR Doc. 2010–22395, continues to read as follows: North American Datum of 1983.] beginning on page 54794 in the issue of Authority: 16 U.S.C. 1431 et seq. The research area boundary is defined by September 9, 2010, make the following the coordinates provided in Table 1 and the correction. In the ADDRESSES section, 2. In § 922.92, revise the section following textual description. The research add the e-mail address heading to read as follows: area boundary extends from Point 1, the [email protected] in the southwest corner of the sanctuary, to Point 2 place of ‘‘[email address TBD]’’. § 922.92 Prohibited or otherwise regulated along a straight line following the western Dated: September 9, 2010. activities—Sanctuary-wide. boundary of the Sanctuary. It then extends * * * * * along a straight line from Point 2 to Point 3, David A. Stawick, Secretary of the Commission. 3. In § 922.93, revise paragraph (a) to which is on the eastern boundary of GRNMS. The boundary then follows the eastern read as follows: [FR Doc. 2010–22906 Filed 9–13–10; 8:45 am] boundary line of the sanctuary southward BILLING CODE P § 922.93 Permit procedures and criteria. until it intersects the line of the southern boundary of GRNMS at Point 4, the (a) A person may conduct an activity southeastern corner of the sanctuary. The last prohibited by § 922.92(a)(1) through straight line is defined by connecting Point DEPARTMENT OF THE TREASURY (a)(10) and § 922.94 if conducted in 4 and Point 5, along the southern boundary accordance within the scope, purpose, of the GRNMS. Internal Revenue Service manner, terms and conditions of a TABLE 1—COORDINATES FOR THE permit issued under this section and 26 CFR Part 1 § 922.48. RESEARCH AREA * * * * * Point Latitude Longitude [REG–142800–09] 4. Add § 922.94 to Subpart I to read ID (north) (west) as follows: RIN 1545–BI96 1 ...... 31.36250 N ...... ¥80.92111 W § 922.94 Prohibited or otherwise regulated 2 ...... 31.38444 N ...... ¥80.92111 W Guidance Regarding Deferred activities—Research area. 3 ...... 31.38444 N ...... ¥80.82806 W Discharge of Indebtedness Income of ¥ 4 ...... 31.36250 N ...... 80.82806 W Corporations and Deferred Original In addition to the prohibitions set out 5 ...... 31.36250 N ...... ¥80.92111 W in § 922.92, which apply throughout the Issue Discount Deductions; Correction Sanctuary, the following activities are [FR Doc. 2010–22567 Filed 9–10–10; 11:15 am] AGENCY: Internal Revenue Service (IRS), prohibited and thus unlawful for any BILLING CODE 3510–NK–P Treasury. person to conduct or cause to be conducted within the research area ACTION: Correction to notice of proposed described in Appendix A to this rulemaking by cross-reference to COMMODITY FUTURES TRADING temporary regulations. subpart. The exceptions described in COMMISSION § 922.92(a) and (b) also apply to the SUMMARY: This document contains a prohibitions in this section: 17 CFR Part 4 correction to a notice of proposed (a)(1)(i) Injuring, catching, harvesting, RIN 3038–AC46 rulemaking by cross-reference to or collecting, or attempting to injure, temporary regulations (REG–142800–09) catch, harvest, or collect, any marine Commodity Pool Operations: Relief that was published in the Federal organism, or any part thereof, living or From Compliance With Certain Register on Friday, August 13, 2010 (75 dead. Disclosure, Reporting and FR 49428) primarily affecting C (ii) There shall be a rebuttable Recordkeeping Requirements for corporations regarding the acceleration presumption that any marine organism Registered CPOs of Commodity Pools of deferred discharge of indebtedness or part thereof referenced in this Listed for Trading on a National (COD) income (deferred COD income) paragraph found in the possession of a Securities Exchange; CPO Registration and deferred original issue discount person within the research area has Exemption for Certain Independent (OID) deductions (deferred OID been collected from the research area. Directors or Trustees of These deductions) under section 108(i)(5)(D), (2) Using any fishing gear or means Commodity Pools; Correction and the calculation of earnings and profits as a result of an election under for fishing, or possessing, or carrying AGENCY: Commodity Futures Trading section 108(i). In addition, these any fishing gear or means for fishing Commission. unless such gear or means is stowed and regulations provide rules applicable to ACTION: Notice of proposed rulemaking; all taxpayers regarding deferred OID not available for immediate use while correction. on board a vessel transiting through the deductions under section 108(i) as a research area without interruption or for SUMMARY: This document corrects a result of a reacquisition of an applicable valid law enforcement purposes. missing e-mail address in a proposed debt instrument by an issuer or related party. (3) Diving. rule published in the Federal Register of September 9, 2010, regarding relief FOR FURTHER INFORMATION CONTACT: (4) Stopping a vessel in the research from certain disclosure, reporting and Concerning the proposed regulations, area. recordkeeping requirements that Robert M. Rhyne, (202) 622–7790 and (b) [Reserved] Commission staff previously has issued Rubin B. Ranat, (202) 622–7530 (not 5. Add Appendix A to Subpart I to on a case-by-case basis to commodity toll-free numbers). read as follows: pool operators (CPOs). SUPPLEMENTARY INFORMATION:

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Background for Federal tax purposes generally is the series LLC. For example, certain The correction notice that is the determined under the same rules that statutes provide for the chartering of a subject of this document is under govern the classification of other types legal entity (or the establishment of section 108 of the Internal Revenue of separate entities. The proposed cells) under a structure commonly Code. regulations provide examples known as a protected cell company, illustrating the application of the rule. segregated account company or Need for Correction The proposed regulations will affect segregated portfolio company (cell As published, the notice of proposed domestic series LLCs; domestic cell company). A cell company may rulemaking by cross-reference to companies; foreign series, or cells that establish multiple accounts, or cells, temporary regulations (REG–142800–09) conduct insurance businesses; and their each of which has its own name and is contains an error that may prove to be owners. identified with a specific participant, misleading and is in need of DATES: Written or electronic comments but generally is not treated under local clarification. and requests for a public hearing must law as a legal entity distinct from the be received by December 13, 2010. cell company. The assets of each cell are Correction of Publication ADDRESSES: Send submissions to: statutorily protected from the creditors Accordingly, the publication of the CC:PA:LPD:PR (REG–119921–09), Room of any other cell and from the creditors notice of proposed rulemaking by cross- 5203, Internal Revenue Service, PO Box of the cell company. reference to temporary regulations 7604, Ben Franklin Station, Washington, Under current law, there is little (REG–142800–09), which was the DC 20044. Submissions may be hand- specific guidance regarding whether for subject of FR Doc. 2010–20059, is delivered Monday through Friday Federal tax purposes a series (or cell) is corrected as follows: between the hours of 8 a.m. and 4 p.m. treated as an entity separate from other On page 49429, column 2, in the to CC:PA:LPD:PR (REG–119921–09), series or the series LLC (or other cells authority citation for part 1, the Courier’s Desk, Internal Revenue or the cell company, as the case may language ‘‘Section 1.108(i)-0T also Service, 1111 Constitution Avenue, be), or whether the company and all of issued under 26 U.S.C. 108(i)(7). * * *’’ NW., Washington, DC, or sent its series (or cells) should be treated as is removed and the language ‘‘Section electronically, via the Federal a single entity. 1.108(i)-0T also issued under 26 U.S.C. eRulemaking portal at http:// Notice 2008–19 (2008–5 IRB 366) 108(i)(7) and 1502. * * *’’ is added in www.regulations.gov (IRS REG–119921– requested comments on proposed its place. 09). guidance concerning issues that arise if arrangements entered into by a cell LaNita Van Dyke, FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations, constitute insurance for Federal income Chief, Publications and Regulations Branch, Joy Spies, (202) 622–3050; concerning tax purposes. The notice also requested Legal Processing Division, Associate Chief comments on the need for guidance Counsel, Procedure and Administration. submissions of comments, concerning similar segregated [FR Doc. 2010–22791 Filed 9–13–10; 8:45 am] Oluwafunmilayo (Funmi) Taylor, (202) 622–7180 (not toll-free numbers). arrangements that do not involve BILLING CODE 4830–01–P SUPPLEMENTARY INFORMATION: insurance. The IRS received a number of comments requesting guidance for Background DEPARTMENT OF THE TREASURY similar arrangements not involving 1. Introduction insurance, including series LLCs and cell companies. These comments Internal Revenue Service A number of States have enacted statutes providing for the creation of generally recommended that series and 26 CFR Part 301 entities that may establish series, cells should be treated as separate entities for Federal tax purposes if they [REG–119921–09] including limited liability companies (series LLCs). In general, series LLC are established under a statute with RIN 1545–BI69 statutes provide that a limited liability provisions similar to the series LLC company may establish separate series. statutes currently in effect in several Series LLCs and Cell Companies Although series of a series LLC States. The IRS and Treasury Department generally agree with these AGENCY: Internal Revenue Service (IRS), generally are not treated as separate comments. See § 601.601(d)(2)(ii)(b). Treasury. entities for State law purposes and, ACTION: Notice of proposed rulemaking. thus, cannot have members, each series 2. Entity Classification for Federal Tax has ‘‘associated’’ with it specified Purposes SUMMARY: This document contains members, assets, rights, obligations, and proposed regulations regarding the investment objectives or business A. Regulatory Framework classification for Federal tax purposes of purposes. Members’ association with Sections 301.7701–1 through a series of a domestic series limited one or more particular series is 301.7701–4 of the Procedure and liability company (LLC), a cell of a comparable to direct ownership by the Administration Regulations provide the domestic cell company, or a foreign members in such series, in that their framework for determining an series or cell that conducts an insurance rights, duties, and powers with respect organization’s entity classification for business. The proposed regulations to the series are direct and specifically Federal tax purposes. Classification of provide that, whether or not a series of identified. If the conditions enumerated an organization depends on whether the a domestic series LLC, a cell of a in the relevant statute are satisfied, the organization is treated as: (i) A separate domestic cell company, or a foreign debts, liabilities, and obligations of one entity under § 301.7701–1, (ii) a series or cell that conducts an insurance series generally are enforceable only ‘‘business entity’’ within the meaning of business is a juridical person for local against the assets of that series and not § 301.7701–2(a) or a trust under law purposes, for Federal tax purposes against assets of other series or of the § 301.7701–4, and (iii) an ‘‘eligible it is treated as an entity formed under series LLC. entity’’ under § 301.7701–3. local law. Classification of a series or Certain jurisdictions have enacted Section 301.7701–1(a)(1) provides cell that is treated as a separate entity statutes providing for entities similar to that the determination of whether an

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entity is separate from its owners for organization is an entity separate from (1975–2 CB 261). See also Rev. Rul. 79– Federal tax purposes is a matter of its owners for Federal tax purposes is a 77 (1979–1 CB 448), (see Federal tax law and does not depend on matter of Federal tax law and does not § 601.601(d)(2)(ii)(b)). whether the organization is recognized depend on whether the organization is Rev. Proc. 2002–22 (2002–1 CB 733), as an entity under local law. Section recognized as an entity under local law. (see § 601.601(d)(2)(ii)(b)), specifies the 301.7701–1(a)(2) provides that a joint Section 301.7701–1(a)(1). In Moline conditions under which the IRS will venture or other contractual Properties, Inc. v. Commissioner, 319 consider a request for a private letter arrangement may create a separate U.S. 436 (1943), the Supreme Court ruling that an undivided fractional entity for Federal tax purposes if the noted that, so long as a corporation was interest in rental real property is not an participants carry on a trade, business, formed for a purpose that is the interest in a business entity under financial operation, or venture and equivalent of business activity or the § 301.7701–2(a). A number of factors divide the profits therefrom. However, a corporation actually carries on a must be present to obtain a ruling under joint undertaking merely to share business, the corporation remains a the revenue procedure, including a limit expenses does not create a separate taxable entity separate from its on the number of co-owners, a entity for Federal tax purposes, nor does shareholders. Although entities that are requirement that the co-owners not treat mere co-ownership of property where recognized under local law generally are the co-ownership as an entity (that is, activities are limited to keeping also recognized for Federal tax that the co-ownership may not file a property maintained, in repair, and purposes, a State law entity may be partnership or corporate tax return, rented or leased. Id. disregarded if it lacks business purpose conduct business under a common Section 301.7701–1(b) provides that or any business activity other than tax name, execute an agreement identifying the tax classification of an organization avoidance. See Bertoli v. Commissioner, any or all of the co-owners as partners, recognized as a separate entity for tax 103 T.C. 501 (1994); Aldon Homes, Inc. shareholders, or members of a business purposes generally is determined under v. Commissioner, 33 T.C. 582 (1959). entity, or otherwise hold itself out as a §§ 301.7701–2, 301.7701–3, and The Supreme Court in Commissioner partnership or other form of business 301.7701–4. Thus, for example, an v. Culbertson, 337 U.S. 733 (1949), and entity), and a requirement that certain organization recognized as an entity that Commissioner v. Tower, 327 U.S. 280 rights with respect to the property does not have associates or an objective (1946), set forth the basic standard for (including the power to make certain to carry on a business may be classified determining whether a partnership will management decisions) must be as a trust under § 301.7701–4. be respected for Federal tax purposes. In retained by co-owners. The revenue Section 301.7701–2(a) provides that a general, a partnership will be respected procedure provides that an organization business entity is any entity recognized if, considering all the facts, the parties that is an entity for State law purposes for Federal tax purposes (including an in good faith and acting with a business may not be characterized as a co- entity with a single owner that may be purpose intended to join together to ownership under the guidance in the disregarded as an entity separate from conduct an enterprise and share in its revenue procedure. its owner under § 301.7701–3) that is profits and losses. This determination is The courts and the IRS have not properly classified as a trust or made considering not only the stated addressed the Federal tax classification otherwise subject to special treatment intent of the parties, but also the terms of investment trusts with assets divided under the Internal Revenue Code of their agreement and their conduct. among a number of series. In National (Code). A business entity with two or Madison Gas & Elec. Co. v. Securities Series-Industrial Stocks more members is classified for Federal Commissioner, 633 F. 2d 512, 514 (7th Series v. Commissioner, 13 T.C. 884 tax purposes as a corporation or a Cir. 1980); Luna v. Commissioner, 42 (1949), acq., 1950–1 CB 4, several series partnership. See § 301.7701–2(a). A T.C. 1067, 1077–78 (1964). that differed only in the nature of their business entity with one owner is Conversely, under certain assets were created within a statutory classified as a corporation or is circumstances, arrangements that are open-end investment trust. Each series disregarded. See § 301.7701–2(a). If the not recognized as entities under State regularly issued certificates representing entity is disregarded, its activities are law may be treated as separate entities shares in the property held in trust and treated in the same manner as a sole for Federal tax purposes. Section regularly redeemed the certificates proprietorship, branch, or division of 301.7701–1(a)(2). For example, courts solely from the assets and earnings of the owner. However, § 301.7701– have found entities for tax purposes in the individual series. The Tax Court 2(c)(2)(iv) and (v) provides for an some co-ownership situations where the stated that each series of the trust was otherwise disregarded entity to be co-owners agree to restrict their ability taxable as a separate regulated treated as a corporation for certain to sell, lease or encumber their interests, investment company. See also Rev. Rul. Federal employment tax and excise tax waive their rights to partition property, 55–416 (1955–1 CB 416), (see purposes. or allow certain management decisions § 601.601(d)(2)(ii)(b)). But, see Union Section 301.7701–3(a) generally to be made other than by unanimous Trusteed Funds v. Commissioner, 8 T.C. provides that an eligible entity, which is agreement among co-owners. Bergford v. 1133 (1947), (series funds organized by a business entity that is not a Commissioner, 12 F. 3d 166 (9th Cir. a State law corporation could not be corporation under § 301.7701–2(b), may 1993); Bussing v. Commissioner, 89 T.C. treated as if each fund were a separate elect its classification for Federal tax 1050 (1987); Alhouse v. Commissioner, corporation). purposes. T.C. Memo. 1991–652. However, the In 1986, Congress added section Internal Revenue Service (IRS) has ruled 851(g) to the Code. Section 851(g) B. Separate Entity Classification that a co-ownership does not rise to the contains a special rule for series funds The threshold question for level of an entity for Federal tax and provides that, in the case of a determining the tax classification of a purposes if the owner employs an agent regulated investment company (within series of a series LLC or a cell of a cell whose activities are limited to collecting the meaning of section 851(a)) with company is whether an individual rents, paying property taxes, insurance more than one fund, each fund generally series or cell should be considered an premiums, repair and maintenance is treated as a separate corporation. For entity for Federal tax purposes. The expenses, and providing tenants with these purposes, a fund is a segregated determination of whether an customary services. Rev. Rul. 75–374 portfolio of assets the beneficial

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interests in which are owned by holders The Delaware statute provides that a the series to exceed the fair market of interests in the regulated investment limited liability company may establish, value of the series’ assets. company that are preferred over other or provide for the establishment of, one The series LLC statutes of Illinois, 805 classes or series with respect to these or more designated series of members, ILCS 180/37–40 (the Illinois statute), assets. managers, LLC interests or assets. Under and Iowa, I.C.A. § 489.1201 (the Iowa the Delaware statute, any such series statute) provide that a series with C. Insurance Company Classification may have separate rights, powers, or limited liability will be treated as a Section 7701(a)(3) and § 301.7701– duties with respect to specified property separate entity to the extent set forth in 2(b)(4) provide that an arrangement that or obligations of the LLC or profits and the articles of organization. The Illinois qualifies as an insurance company is a losses associated with specified statute provides that the LLC and any of corporation for Federal income tax property or obligations, and any such its series may elect to consolidate their purposes. Sections 816(a) and 831(c) series may have a separate business operations as a single taxpayer to the define an insurance company as any purpose or investment objective. extent permitted under applicable law, company more than half the business of Additionally, the Delaware statute elect to work cooperatively, elect to which during the taxable year is the provides that the debts, liabilities, contract jointly, or elect to be treated as issuing of insurance or annuity obligations, and expenses of a particular a single business for purposes of contracts or the reinsuring of risks series are enforceable against the assets qualification to do business in Illinois or any other State. underwritten by insurance companies. of that series only, and not against the In addition, under the Illinois statute, See also § 1.801–3(a)(1), (‘‘[T]hough its assets of the series LLC generally or any a series’ existence begins upon filing of name, charter powers, and subjection to other series of the LLC, and, unless the LLC agreement provides otherwise, a certificate of designation with the State insurance laws are significant in Illinois secretary of state. A certificate of determining the business which a none of the debts, liabilities, obligations, and expenses of the series LLC generally designation must be filed for each series company is authorized and intends to that is to have limited liability. The carry on, it is the character of the or of any other series of the series LLC are enforceable against the assets of the name of a series with limited liability business actually done in the taxable must contain the entire name of the LLC year which determines whether a series, provided that the following requirements are met: (1) The LLC and be distinguishable from the names company is taxable as an insurance of the other series of the LLC. If different company under the Internal Revenue agreement establishes or provides for the establishment of one or more series; from the LLC, the certificate of Code.’’). Thus, an insurance company designation for each series must list the includes an arrangement that conducts (2) records maintained for any such series account for the assets of the series names of the members if the series is insurance business, whether or not the member-managed or the names of the separately from the other assets of the arrangement is a State law entity. managers if the series is manager- series LLC, or of any other series of the managed. The Iowa and Illinois statutes 3. Overview of Series LLC Statutes and series LLC; (3) the LLC agreement so both provide that, unless modified by Cell Company Statutes provides; and (4) notice of the limitation the series LLC provisions, the on liabilities of a series is set forth in the A. Domestic Statutes provisions generally applicable to LLCs series LLC’s certificate of formation. and their managers, members, and Although § 301.7701–1(a)(1) provides Unless otherwise provided in the LLC that State classification of an entity is transferees are applicable to each series. agreement, a series established under Some States have enacted series not controlling for Federal tax purposes, Delaware law has the power and provisions outside of LLC statutes. For the characteristics of series LLCs and capacity to, in its own name, contract, example, Delaware has enacted series cell companies under their governing hold title to assets, grant liens and limited partnership provisions (6 Del. C. statutes are an important factor in security interests, and sue and be sued. § 17–218). In addition, Delaware’s analyzing whether series and cells A series may be managed by the statutory trust statute permits a statutory generally should be treated as separate members of the series or by a manager. trust to establish series (12 Del. C. entities for Federal tax purposes. Any event that causes a manager to § 3804). Both of these statutes contain Series LLC statutes have been enacted cease to be a manager with respect to a provisions that are nearly identical to in Delaware, Illinois, Iowa, Nevada, series will not, in itself, cause the the corresponding provisions of the Oklahoma, Tennessee, Texas, Utah and manager to cease to be a manager of the Delaware series LLC statute with respect Puerto Rico. Delaware enacted the first LLC or of any other series of the LLC. to the ability of the limited partnership series LLC statute in 1996. Del. Code Under the Delaware statute, unless or trust to create or establish separate Ann. Tit. 6, section 18–215 (the the LLC agreement provides otherwise, series with the same liability protection Delaware statute). Statutes enacted any event that causes a member to cease enjoyed by series of a Delaware series subsequently by other States are similar, to be associated with a series will not, LLC. but not identical, to the Delaware in itself, cause the member to cease to All of the series LLC statutes contain statute. All of the statutes provide a be associated with any other series or provisions that grant series certain significant degree of separateness for with the LLC, or cause termination of attributes of separate entities. For individual series within a series LLC, the series, even if there are no remaining example, individual series may have but none provides series with all of the members of the series. Additionally, the separate business purposes, investment attributes of a typical State law entity, Delaware statute allows a series to be objectives, members, and managers. such as an ordinary limited liability terminated and its affairs wound up Assets of a particular series are not company. Individual series generally are without causing the dissolution of the subject to the claims of creditors of not treated as separate entities for State LLC. However, all series of the LLC other series of the series LLC or of the law purposes. However, in certain terminate when the LLC dissolves. series LLC itself, provided that certain States (currently Illinois and Iowa), a Finally, under the Delaware statute, a recordkeeping and notice requirements series is treated as a separate entity to series generally may not make a are observed. Finally, most series LLC the extent provided in the series LLC’s distribution to the extent that the statutes provide that an event that articles of organization. distribution will cause the liabilities of causes a member to cease to be

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associated with a series does not cause Explanation of Provisions powers, or duties with respect to the the member to cease to be associated 1. In General series. with the series LLC or any other series The proposed regulations define a of the series LLC. The proposed regulations provide series as a segregated group of assets that, for Federal tax purposes, a and liabilities that is established However, all of the State statutes limit domestic series, whether or not a pursuant to a series statute by agreement the powers of series of series LLCs. For juridical person for local law purposes, of a series organization. A series example, a series of a series LLC may is treated as an entity formed under includes a cell, segregated account, or not convert into another type of entity, local law. segregated portfolio, including a cell, merge with another entity, or segregated account, or segregated domesticate in another State With one exception, the proposed regulations do not apply to series or portfolio that is formed under the independent from the series LLC. cells organized or established under the insurance code of a jurisdiction or is Several of the series LLC statutes do not laws of a foreign jurisdiction. The one engaged in an insurance business. expressly address a series’ ability to sue exception is that the proposed However, the term ‘‘series’’ does not or be sued, hold title to property, or regulations apply to a foreign series that include a segregated asset account of a contract in its own name. Ordinary engages in an insurance business. life insurance company, which consists LLCs and series LLCs generally may Whether a series that is treated as a of all assets the investment return and exercise these rights. Additionally, most market value of which must be allocated of the series LLC statutes provide that local law entity under the proposed regulations is recognized as a separate in an identical manner to any variable the dissolution of a series LLC will entity for Federal tax purposes is life insurance or annuity contract cause the termination of each of its determined under § 301.7701–1 and invested in any of the assets. See series. general tax principles. The proposed § 1.817–5(e). Such an account is B. Statutes with Respect to Insurance regulations further provide that the accorded special treatment under classification of a series that is subchapter L. See generally section The insurance codes of a number of recognized as a separate entity for 817(a) through (c). States include statutes that provide for Federal tax purposes is determined Certain series statutes provide that the the chartering of a legal entity under § 301.7701–1(b), which provides series liability limitation provisions do not apply if the series organization or commonly known as a protected cell the rules for classifying organizations series does not maintain records company, segregated account company, that are recognized as entities for adequately accounting for the assets or segregated portfolio company. See, Federal tax purposes. for example, Vt. Stat. Ann. tit. 8, associated with each series separately The proposed regulations define a from the assets of the series organization chap.141, §§ 6031–6038 (sponsored series organization as a juridical entity captive insurance companies and or any other series of the series that establishes and maintains, or under organization. The IRS and the Treasury protected cells of such companies); S.C. which is established and maintained, a Code Ann. tit. 38, chap. 10, §§ 38–10– Department considered whether a series. A series organization includes a failure to elect or qualify for the liability 10 through 39–10–80 (protected cell series limited liability company, series insurance companies). Under those limitations under the series statute partnership, series trust, protected cell should affect whether a series is a statutes, as under the series LLC statutes company, segregated cell company, described above, the assets of each cell separate entity for Federal tax purposes. segregated portfolio company, or However, limitations on liability of are segregated from the assets of any segregated account company. other cell. The cell may issue insurance owners of an entity for debts and The proposed regulations define a obligations of the entity and the rights or annuity contracts, reinsure such series statute as a statute of a State or contracts, or facilitate the securitization of creditors to hold owners liable for foreign jurisdiction that explicitly debts and obligations of the entity of obligations of a sponsoring insurance provides for the organization or generally do not alter the company. Rev. Rul. 2008–8 (2008–1 CB establishment of a series of a juridical characterization of the entity for Federal 340), (see § 601.601(d)(2)(ii)(b)), person and explicitly permits (1) tax purposes. Therefore, the proposed analyzes whether an arrangement members or participants of a series regulations provide that an election, entered into between a protected cell organization to have rights, powers, or agreement, or other arrangement that and its owner possesses the requisite duties with respect to the series; (2) a permits debts and liabilities of other risk shifting and risk distribution to series to have separate rights, powers, or series or the series organization to be qualify as insurance for Federal income duties with respect to specified property enforceable against the assets of a tax purposes. Under certain domestic or obligations; and (3) the segregation of particular series, or a failure to comply insurance codes, the sponsor may be assets and liabilities such that none of with the recordkeeping requirements for organized under a corporate or the debts and liabilities of the series the limitation on liability available unincorporated entity statute. organization (other than liabilities to the under the relevant series statute, will Series or cell company statutes in a State or foreign jurisdiction related to not prevent a series from meeting the number of foreign jurisdictions allow the organization or operation of the definition of ‘‘series’’ in the proposed series or cells to engage in insurance series organization, such as franchise regulations. For example, a series businesses. See, for example, The fees or administrative costs) or of any generally will not cease to be an entity Companies (Guernsey) Law, 2008 Part other series of the series organization under the proposed regulations simply XXVII (Protected Cell Companies), Part are enforceable against the assets of a because it guarantees the debt of another XXVIII (Incorporated Cell Companies); particular series of the series series within the series organization. The Companies (Jersey) law, 1991, Part organization. For purposes of this The proposed regulations treat a 18D; Companies Law, Part XIV (2009 definition, a ‘‘participant’’ of a series series as created or organized under the Revision) (Cayman Isl.) (Segregated organization includes an officer or laws of the same jurisdiction in which Portfolio Companies); and Segregated director of the series organization who the series is established. Because a Accounts Companies Act (2000) has no ownership interest in the series series may not be a separate juridical (Bermuda). or series organization, but has rights, entity for local law purposes, this rule

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provides the means for establishing the forth in the articles of organization). greater certainty to both taxpayers and jurisdiction of the series for Federal tax Additionally, while the statutes the IRS regarding the tax status of purposes. enabling series organizations grant domestic series and foreign series that Under § 301.7701–1(b), § 301.7701– series significant autonomy, under no conduct insurance businesses. In effect, 2(b) applies to a series that is recognized current statute do series possess all of taxpayers that establish domestic series as a separate entity for Federal tax the attributes of independence that are placed in the same position as purposes. Therefore, a series that is entities recognized under local law persons that file a certificate of itself described in § 301.7701–2(b)(1) generally possess. For example, series organization for a State law entity. The through (8) would be classified as a generally cannot convert into another IRS and the Treasury Department corporation regardless of the type of entity, merge with another believe that the approach of the classification of the series organization. entity, or domesticate in another proposed regulations is straightforward The proposed regulations also provide jurisdiction independent of the series that, for Federal tax purposes, organization. In addition, the and administrable, and is preferable to ownership of interests in a series and of dissolution of a series organization engaging in a case-by-case the assets associated with a series is generally will terminate all of its series. determination of the status of each determined under general tax The IRS and the Treasury Department series that would require a detailed principles. A series organization is not believe that, notwithstanding that series examination of the terms of the relevant treated as the owner of a series or of the differ in some respects from more statute. Finally, the IRS and the assets associated with a series merely traditional local law entities, domestic Treasury Department believe that a rule because the series organization holds series generally should be treated for generally treating domestic series as legal title to the assets associated with Federal tax purposes as entities formed local law entities would be consistent the series. For example, if a series under local law. Because Federal tax with taxpayers’ current ability to create organization holds legal title to assets law, and not local law, governs the similar structures using multiple local associated with a series because the question of whether an organization is law entities that can elect their Federal statute under which the series an entity for Federal tax purposes, it is tax classification pursuant to organization was organized does not not dispositive that domestic series § 301.7701–3. expressly permit a series to hold assets generally are not considered entities for in its own name, the series will be local law purposes. Additionally, the The IRS and the Treasury Department treated as the owner of the assets for IRS and the Treasury Department believe that domestic series should be Federal tax purposes if it bears the believe that, overall, the factors classified as separate local law entities economic benefits and burdens of the supporting separate entity status for based on the characteristics granted to assets under general Federal tax series outweigh the factors in favor of them under the various series statutes. principles. Similarly, for Federal tax disregarding series as entities separate However, except as specifically stated in purposes, the obligor for the liability of from the series organization and other the proposed regulations, a particular a series is determined under general tax series of the series organization. series need not actually possess all of principles. Specifically, managers and equity the attributes that its enabling statute In general, the same legal principles holders are ‘‘associated with’’ a series, permits it to possess. The IRS and the that apply to determine who owns and their rights, duties, and powers Treasury Department believe that a interests in other types of entities apply with respect to the series are direct and domestic series should be treated as a to determine the ownership of interests specifically identified. Also, individual separate local law entity even if its in series and series organizations. These series may (but generally are not business purpose, investment objective, principles generally look to who bears required to) have separate business or ownership overlaps with that of other the economic benefits and burdens of purposes and investment objectives. series or the series organization itself. ownership. See, for example, Rev. Rul. The IRS and the Treasury Department Separate State law entities may have 55–39 (1955–1 CB 403), (see believe these factors are sufficient to common or overlapping business § 601.601(d)(2)(ii)(b)). Furthermore, treat domestic series as entities formed purposes, investment objectives and common law principles apply to the under local law. determination of whether a person is a Although some statutes creating series ownership, but generally are still treated partner in a series that is classified as a organizations permit an individual as separate local law entities for Federal partnership for Federal tax purposes series to enter into contracts, sue, be tax purposes. under § 301.7701–3. See, for example, sued, and/or hold property in its own The proposed regulations do not Commissioner v. Culbertson, 337 U.S. name, the IRS and the Treasury address the entity status for Federal tax 733 (1949); Commissioner v. Tower, 327 Department do not believe that the purposes of a series organization. U.S. 280 (1946). failure of a statute to explicitly provide Specifically, the proposed regulations The IRS and the Treasury Department these rights should alter the treatment of do not address whether a series considered other approaches to the a domestic series as an entity formed organization is recognized as a separate classification of series for Federal tax under local law. These attributes entity for Federal tax purposes if it has purposes. In particular, the IRS and the primarily involve procedural formalities no assets and engages in no activities Treasury Department considered and do not appear to affect the independent of its series. whether series should be disregarded as substantive economic rights of series or entities separate from the series their creditors with respect to their Until further guidance is issued, the organization for Federal tax purposes. property and liabilities. Even in entity status of a foreign series that does This approach would be supported by jurisdictions where series may not not conduct an insurance business will the fact that series are not generally possess these attributes, the statutory be determined under applicable law. considered entities for local law liability shields would still apply to the Foreign series raise novel Federal purposes (except, for example, assets of a particular series, provided income tax issues that continue to be potentially under the statutes of Illinois the statutory requirements are satisfied. considered and addressed by the IRS and Iowa, where a series may be treated Furthermore, the rule provided in the and the Treasury Department. as a separate entity to the extent set proposed regulations would provide

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2. Classification of a Series That Is purposes. Series covered by the regardless of how it otherwise would be Treated as a Separate Entity for Federal proposed regulations are subject to treated under §§ 301.7701–1, 301.7701– Tax Purposes applicable law to the same extent as 2, or 301.7701–3. If a domestic series or a foreign series other entities. Thus, a series may be The IRS and the Treasury Department engaged in an insurance business is disregarded under applicable law even are aware that insurance-specific if it satisfies the requirements of the treated as a separate entity for Federal guidance may still be needed to address proposed regulations to be treated as an tax purposes, then § 301.7701–1(b) the issues identified in § 3.02 of Notice entity formed under local law. For applies to determine the proper tax 2008–19 and insurance-specific example, if a series has no business classification of the series. However, the transition issues that may arise for purpose or business activity other than proposed regulations do not provide protected cell companies that tax avoidance, it may be disregarded how a series should be treated for previously reported in a manner under appropriate circumstances. See Federal employment tax purposes. If a inconsistent with the regulations. See Bertoli v. Commissioner, 103 T.C. 501 domestic series is treated as a separate § 601.601(d)(2)(ii)(b). (1994); Aldon Homes, Inc. v. entity for Federal tax purposes, then the Commissioner, 33 T.C. 582 (1959). 6. Effect of Local Law Classification on series generally is subject to the same Furthermore, the anti-abuse rule of Tax Collection treatment as any other entity for Federal § 1.701–2 is applicable to a series or The IRS and Treasury Department tax purposes. For example, a series that series organization that is classified as a understand that there are differences in is treated as a separate entity for Federal partnership for Federal tax purposes. local law governing series (for example, tax purposes may make any Federal tax rights to hold title to property and to sue 5. Applicability to Organizations That elections it is otherwise eligible to make and be sued are expressly addressed in Qualify as Insurance Companies independently of other series or the some statutes but not in others) that may series organization itself, and regardless Notice 2008–19 requested comments affect how creditors of series, including of whether other series (or the series on proposed guidance setting forth State taxing authorities, may enforce organization) do not make certain conditions under which a cell of a obligations of a series. Thus, the elections or make different elections. protected cell company would be proposed regulations provide that, to 3. Entity Status of Series Organizations treated as an insurance company the extent Federal or local law permits separate from any other entity for a creditor to collect a liability The proposed regulations do not Federal income tax purposes. Those attributable to a series from the series address the entity status or filing who commented on the notice generally organization or other series of the series requirements of series organizations for supported the proposed guidance, and organization, the series organization and Federal tax purposes. A series further commented that it should extend other series of the series organization organization generally is an entity for to non-insurance arrangements as well, may also be considered the taxpayer local law purposes. An organization that including series LLCs. Rather than from whom the tax assessed against the is an entity for local law purposes provide independent guidance for series may be collected pursuant to generally is treated as an entity for insurance company status setting forth administrative or judicial means. Federal tax purposes. However, an what is essentially the same standard, Further, when a creditor is permitted to organization characterized as an entity the proposed regulations define the term collect a liability attributable to a series for Federal income tax purposes may series to include a cell, segregated organization from any series of the not have an income or information tax account, or segregated portfolio that is series organization, a tax liability filing obligation. For example, formed under the insurance code of a assessed against the series organization § 301.6031(a)–(1)(a)(3)(i) provides that a jurisdiction or is engaged in an may be collected directly from a series partnership with no income, insurance business (other than a of the series organization by deductions, or credits for Federal segregated asset account of a life administrative or judicial means. income tax purposes for a taxable year insurance company). is not required to file a partnership Although the proposed regulations do 7. Employment Tax and Employee return for that year. Generally, filing not apply to a series organized or Benefits Issues fees of a series organization paid by established under the laws of a foreign A. In General series of the series organization would jurisdiction, an exception is provided be treated as expenses of the series and for certain series conducting an The domestic statutes authorizing the not as expenses of the series insurance business. Under this creation of series contemplate that a organization. Thus, a series organization exception, a series that is organized or series may operate a business. If the characterized as a partnership for established under the laws of a foreign operating business has workers, it will Federal tax purposes that does not have jurisdiction is treated as an entity if the be necessary to determine how the income, deductions, or credits for a arrangements and other activities of the business satisfies any employment tax taxable year need not file a partnership series, if conducted by a domestic obligations, whether it has the ability to return for the year. company, would result in its being maintain any employee benefit plans classified as an insurance company. and, if so, whether it complies with the 4. Continuing Applicability of Tax Law Thus, a foreign series would be treated rules applicable to those plans. Authority to Series as an entity if more than half of the Application of the employment tax Notwithstanding that a domestic series’ business is the issuing or requirements will depend principally series or a foreign series engaged in an reinsuring of insurance or annuity on whether the workers are employees, insurance business is treated as an contracts. The IRS and the Treasury and, if so, who is considered the entity formed under local law under the Department believe it is appropriate to employer for Federal income and proposed regulations, the Commissioner provide this rule even though the employment tax purposes. In general, an may under applicable law, including proposed regulations otherwise do not employment relationship exists when common law tax principles, characterize apply to a foreign series because an the person for whom services are a series or a portion of a series other insurance company is classified as a per performed has the right to control and than as a separate entity for Federal tax se corporation under section 7701(a)(3) direct the individual who performs the

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services, not only as to the result to be is disregarded for Federal tax purposes, apply. In this connection, the IRS and accomplished by the work but also as to such an entity cannot be disregarded for Treasury Department expect to issue the details and means by which that Federal employment tax purposes. See regulations under section 414(o) that result is accomplished. See § 301.7701–2(c)(2)(iv). would prevent the avoidance of any §§ 31.3121(d)–1(c)(2), 31.3306(i)–1(b), Once the employer is identified, employee benefit plan requirement and 31.3401(c)– 1(b). additional issues arise, including but through the use of the separate entity not limited to the following: How would status of a series. B. Employment Tax the wage base be determined for An entity must be a person in order employees, particularly if they work for 8. Statement Containing Identifying to be an employer for Federal more than one series in a common line Information About Series employment tax purposes. See sections of business? How would the common As the series organization or a series 3121(b), 3306(a)(1), 3306(c), and 3401(d) paymaster rules apply? Who would be of the series organization may be treated and § 31.3121(d)–2(a). However, status authorized to designate an agent under as a separate entity for Federal tax and as a person, by itself, is not enough to section 3504 for reporting and payment related reporting purposes but may not make an entity an employer for Federal of employment taxes, and how would be a separate entity under local law, the employment tax purposes. The entity the authorization be accomplished? IRS and Treasury Department believe must also satisfy the criteria to be an How would the statutory exceptions that a new statement may need to be employer under Federal employment from the definitions of employment and created and required to be filed tax statutes and regulations for purposes wages apply given that they may be annually by the series organization and of the determination of the proper based on the identity of the employer? each series of the series organization to amount of employment taxes and the Which entity would be eligible for tax provide the IRS with certain identifying party liable for reporting and paying the credits that go to the employer such as information to ensure the proper taxes. Treatment of a series as a separate the Work Opportunity Tax Credit under assessment and collection of tax. person for Federal employment tax section 51 or the tip credit under section Accordingly, these regulations propose purposes would create the possibility 45B? If a series organization handles to amend the Procedure and that the series could be an ‘‘employer’’ payroll for a series and is also the Administration Regulations under for Federal employment tax purposes, nominal owner of the series assets, section 6011 to include this requirement which would raise both substantive and would the owners or the managers of and a cross-reference to those administrative issues. the series organization be responsible regulations is included under The series structure would make it persons for the Trust Fund Recovery § 301.7701–1. The IRS and Treasury difficult to determine whether the series Penalty under section 6672? Department are considering what or the series organization is the Special administrative issues might information should be required by these employer under the relevant criteria arise if the series were to be treated as statements. Information tentatively with respect to the services provided. the employer for Federal employment being considered includes (1) the name, For example, if workers perform all of tax purposes but not for State law address, and taxpayer identification their services under the direction and purposes. For example, if the series number of the series organization and control of individuals who own the were the employer for Federal each of its series and status of each as interests in a series, but the series has employment tax purposes and filed a a series of a series organization or as the no legal authority to enter into contracts Form W–2, ‘‘Wage and Tax Statement,’’ series organization; (2) the jurisdiction or to sue or be sued, could the series reporting wages and employment taxes in which the series organization was nonetheless be the employer of the withheld, but the series were not formed; and (3) an indication of whether workers? If workers perform services recognized as a juridical person for State the series holds title to its assets or under the direction and control of the law purposes, then administrative whether title is held by another series or series, but they are paid by the series problems might ensue unless separate the series organization and, if held by organization, would the series Forms W–2 were prepared for State and another series or the series organization, organization, as the nominal owner of local tax purposes. Similarly, the IRS the name, address, and taxpayer all the series assets, have control over and the States might encounter identification number of the series the payment of wages such that it would challenges in awarding the FUTA credit organization and each series holding be liable as the employer under section under section 3302 to the appropriate title to any of its assets. The IRS and 3401(d)? entity and certifying the amount of State Treasury Department are also The structure of a series organization unemployment tax paid. considering the best time to require could also affect the type of In light of these issues, the proposed taxpayers to file the statement. For employment tax liability. For example, regulations do not currently provide example, the IRS and Treasury if a series were recognized as a distinct how a series should be treated for Department are considering whether the person for Federal employment tax Federal employment tax purposes. statement should be filed when returns, purposes, a worker providing services as such as income tax returns and excise an employee of one series and as a C. Employee Benefits tax returns, are required to be filed or member of another series or the series Various issues arise with respect to whether it should be a stand-alone organization would be subject to FICA the ability of a series to maintain an statement filed separately by a set date tax on the wages paid for services as an employee benefit plan, including issues each year, as with information returns employee and self-employment tax on related to those described above with such as Forms 1099. A cross-reference the member income. Note further that, respect to whether a series may be an to these regulations was added to the if a domestic series were classified as a employer. The proposed regulations do Procedure and Administration separate entity that is a business entity, not address these issues. However, to regulations under section 6071 for the then, under § 301.7701–3, the series the extent that a series can maintain an time to file returns and statements. The would be classified as either a employee benefit plan, the aggregation proposed regulations under section partnership or a corporation. While a rules under section 414(b), (c), (m), (o) 6071 provide that the statement will be business entity with one owner is and (t), as well as the leased employee a stand-alone statement due March 15th generally classified as a corporation or rules under section 414(n), would of each year. In addition, the IRS and

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Treasury Department are considering companies, on and prior to September information to ensure the proper revising Form SS–4, ‘‘Application for 14, 2010; (3) If the series was assessment and collection of tax. The Employer Identification Number,’’ to established pursuant to a foreign statute, regulations affect domestic series LLCs, include questions regarding series the series’ classification was relevant (as domestic cell companies, and foreign organizations. defined in § 301.7701–3(d)), and more series and cells that conduct insurance than half the business of the series was businesses, and their owners. Based on Proposed Effective Date the issuing of insurance or annuity information available at this time, the These regulations generally apply on contracts or the reinsuring of risks IRS and the Treasury Department the date final regulations are published underwritten by insurance companies believe that many series and series in the Federal Register. Generally, when for all taxable years beginning with the organizations are large insurance final regulations become effective, taxable year that includes September 14, companies or investment firms and, taxpayers that are treating series 2010; (4) No owner of the series treats thus, are not small entities. Although a differently for Federal tax purposes than the series as an entity separate from any number of small entities may be subject series are treated under the final other series of the series organization or to the information reporting regulations will be required to change from the series organization for requirement of the new statement, any their treatment of series. In this purposes of filing any Federal income economic impact will be minimal. The situation, a series organization that tax returns, information returns, or information that the IRS and the previously was treated as one entity withholding documents for any taxable Treasury Department are considering with all of its series may be required to year; (5) The series and series requiring on the proposed statement begin treating each series as a separate organization had a reasonable basis should be known by or readily available entity for Federal tax purposes. General (within the meaning of section 6662) for to the series or the series organization. tax principles will apply to determine their claimed classification; and (6) Therefore, it should take minimal time the consequences of the conversion Neither the series nor any owner of the and expense to collect and report this from one entity to multiple entities for series nor the series organization was information. For example, the IRS and Federal tax purposes. See, for example, notified in writing on or before the date the Treasury Department are section 708 for rules relating to final regulations are published in the considering requiring the following partnership divisions in the case of a Federal Register that classification of information: (1) The name, address, and series organization previously treated as the series was under examination (in taxpayer identification number of the a partnership for Federal tax purposes which case the series’ classification will series organization and each of its series converting into multiple partnerships be determined in the examination). and status of each as a series of a series upon recognition of the series This exception will cease to apply on organization or as the series organization’s series as separate entities. the date any person or persons who organization; (2) The jurisdiction in While a division of a partnership may were not owners of the series which the series organization was be tax-free, gain may be recognized in organization (or series) prior to formed; and (3) An indication of certain situations under section September 14, 2010 own, in the whether the series holds title to its 704(c)(1)(B) or section 737. Sections 355 aggregate, a 50 percent or greater assets or whether title is held by another and 368(a)(1)(D) provide rules that interest in the series organization (or series or the series organization and, if govern certain divisions of a series). For this purpose, the term held by another series or the series corporation. The division of a series interest means (i) in the case of a organization, the name, address, and organization into multiple corporations partnership, a capital or profits interest taxpayer identification number of the may be tax-free to the corporation and and (ii) in the case of a corporation, an series organization and each series to its shareholders; however, if the equity interest measured by vote or holding title to any of its assets. The IRS corporate division does not satisfy one value. This transition rule does not and the Treasury Department request or more of the requirements in section apply to any determination other than comments on the accuracy of the 355, the division may result in taxable the entity status of a series, for example, statement that the regulations in this events to the corporation, its tax ownership of a series or series document will not have a significant shareholders, or both. organization or qualification of a series economic impact on a substantial The regulations include an exception or series organization conducting an number of small entities. Pursuant to for series established prior to insurance business as a controlled section 7805(f) of the Code, this notice publication of the proposed regulations foreign corporation. of proposed rulemaking has been that treat all series and the series submitted to the Chief Counsel for Special Analyses organization as one entity. If the Advocacy of the Small Business requirements for this exception are It has been determined that this notice Administration for comment on its satisfied, after issuance of the final of proposed rulemaking is not a impact on small businesses. regulations the series may continue to significant regulatory action as defined be treated together with the series in Executive Order 12866. Therefore, a Comments and Requests for a Public organization as one entity for Federal regulatory assessment is not required. It Hearing tax purposes. Specifically, these also has been determined that section Before these proposed regulations are requirements are satisfied if (1) The 553(b) of the Administrative Procedure adopted as final regulations, series was established prior to Act (5 U.S.C. chapter 5) does not apply consideration will be given to any September 14, 2010; (2) The series to these regulations. written comments (a signed original and (independent of the series organization Pursuant to the Regulatory Flexibility eight (8) copies) that are submitted or other series of the series organization) Act (5 U.S.C. chapter 6), it is hereby timely to the IRS. Alternatively, conducted business or investment certified that the regulations will not taxpayers may submit comments activity or, in the case of a foreign have a significant economic impact on electronically directly to the Federal series, more than half the business of a substantial number of small entities. eRulemaking portal at http:// the series was the issuing of insurance The regulations require that series and www.regulations.gov. or annuity contracts or the reinsuring of series organizations file a statement to The IRS and the Treasury Department risks underwritten by insurance provide the IRS with certain identifying request comments on the proposed

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regulations. In addition, the IRS and the PART 301—PROCEDURE AND section, a series (as defined in paragraph Treasury Department request comments ADMINISTRATION (a)(5)(viii)(C) of this section) organized on the following issues: or established under the laws of the Paragraph 1. The authority citation (1) Whether a series organization United States or of any State, whether for part 301 is amended by adding should be recognized as a separate or not a juridical person for local law entries in numerical order to read in entity for Federal tax purposes if it has purposes, is treated as an entity formed part as follows: no assets and engages in no activities under local law. independent of its series; Authority: 26 U.S.C. 7805 * * * (ii) Certain foreign series conducting (2) The appropriate treatment of a Section 301.6011–6 also issued under 26 an insurance business. For Federal tax U.S.C. 6011(a). * * * series that does not terminate for local purposes, except as provided in Section 301.6071–2 also issued under 26 paragraph (a)(5)(ix) of this section, a law purposes when it has no members U.S.C. 6071(a). * * * series organized or established under associated with it; Par. 2. Section 301.6011–6 is added to the laws of a foreign jurisdiction is (3) The entity status for Federal tax read as follows: treated as an entity formed under local purposes of foreign cells that do not law if the arrangements and other conduct insurance businesses and other § 301.6011–6 Statements of series and activities of the series, if conducted by tax consequences of establishing, series organizations. a domestic company, would result in operating, and terminating all foreign (a) Statement required. Each series classification as an insurance company cells; and series organization (as defined in within the meaning of section 816(a) or (4) How the Federal employment tax paragraph (b) of this section) shall file section 831(c). issues discussed and similar technical a statement for each taxable year (iii) Recognition of entity status. issues should be resolved; containing the identifying information Whether a series that is treated as a local (5) How series and series with respect to the series or series law entity under paragraph (a)(5)(i) or organizations will be treated for State organization as prescribed by the (ii) of this section is recognized as a employment tax purposes and other Internal Revenue Service for this separate entity for Federal tax purposes state employment-related purposes and purpose and shall include the is determined under this section and how that treatment should affect the information required by the statement general tax principles. Federal employment tax treatment of and its instructions. (iv) Classification of series. The series and series organizations (b) Definitions—(1) Series. The term classification of a series that is (comments from the states would be series has the same meaning as in recognized as a separate entity for particularly helpful); § 301.7701–1(a)(5)(viii)(C). Federal tax purposes is determined (6) What issues could arise with (2) Series organization. The term under paragraph (b) of this section. respect to the provision of employee series organization has the same (v) Jurisdiction in which series is organized or established. A series is benefits by a series organization or meaning as in § 301.7701– treated as created or organized under series; and 1(a)(5)(viii)(A). (c) Effective/applicability date. This the laws of a State or foreign jurisdiction (7) The requirement for the series section applies to taxable years if the series is established under the organization and each series of the beginning after the date of publication laws of such jurisdiction. See series organization to file a statement of the Treasury decision adopting these § 301.7701–5 for rules that determine and what information should be rules as final regulations in the Federal whether a business entity is domestic or included on the statement. Register. foreign. All comments will be available for Par. 3. Section 301.6071–2 is added to (vi) Ownership of series and the assets public inspection and copying. A public read as follows: of series. For Federal tax purposes, the hearing may be scheduled if requested ownership of interests in a series and of in writing by a person who timely § 301.6071–2 Time for filing statements of the assets associated with a series is series and series organizations. submits comments. If a public hearing is determined under general tax scheduled, notice of the date, time and (a) In general. Statements required by principles. A series organization is not place for the hearing will be published § 301.6011–6 must be filed on or before treated as the owner for Federal tax in the Federal Register. March 15 of the year following the purposes of a series or of the assets period for which the return is made. Drafting Information associated with a series merely because (b) Effective/applicability date. This the series organization holds legal title The principal author of these section applies to taxable years to the assets associated with the series. proposed regulations is Joy Spies, IRS beginning after the date of publication (vii) Effect of Federal and local law Office of the Associate Chief Counsel of the Treasury decision adopting these treatment. To the extent that, pursuant (Passthroughs and Special Industries). rules as final regulations in the Federal to the provisions of this paragraph However, other personnel from the IRS Register. (a)(5), a series is a taxpayer against and the Treasury Department Par. 4. Section 301.7701–1 is whom tax may be assessed under participated in their development. amended by: Chapter 63 of Title 26, then any tax 1. Adding paragraph (a)(5). assessed against the series may be List of Subjects in 26 CFR Part 301 2. Revising paragraphs (e) and (f). The additions and revisions read as collected by the Internal Revenue Employment taxes, Estate taxes, follows: Service from the series in the same Excise taxes, Gift taxes, Income taxes, manner the assessment could be Penalties, Reporting and Recordkeeping § 301.7701–1 Classification of collected by the Internal Revenue requirements. organizations for Federal tax purposes. Service from any other taxpayer. In addition, to the extent Federal or local Proposed Amendments to the (a) * * * (5) Series and series organizations— law permits a debt attributable to the Regulations (i) Entity status of a domestic series. For series to be collected from the series Accordingly, 26 CFR part 301 is Federal tax purposes, except as organization or other series of the series proposed to be amended as follows: provided in paragraph (a)(5)(ix) of this organization, then, notwithstanding any

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other provision of this paragraph (a)(5), company. See section 817(d)(1); term State includes the District of and consistent with the provisions of § 1.817–5(e). An election, agreement, or Columbia. Federal or local law, the series other arrangement that permits debts (f) Effective/applicability dates—(1) In organization and other series of the and liabilities of other series or the general. Except as provided in series organization may also be series organization to be enforceable paragraphs (f)(2) and (f)(3) of this considered the taxpayer from whom the against the assets of a particular series, section, the rules of this section are tax assessed against the series may be or a failure to comply with the record applicable as of January 1, 1997. administratively or judicially collected. keeping requirements for the limitation (2) Cost sharing arrangements. The Further, when a creditor is permitted to on liability available under the relevant rules of paragraph (c) of this section are collect a liability attributable to a series series statute, will be disregarded for applicable on January 5, 2009. organization from any series of the purposes of this paragraph (3) Series and series organizations— series organization, a tax liability (a)(5)(viii)(C). (i) In general. Except as otherwise assessed against the series organization (ix) Treatment of series and series provided in this paragraph (f)(3), may be collected directly from a series organizations under Subtitle C— paragraph (a)(5) of this section applies of the series organization by Employment Taxes and Collection of on and after the date final regulations administrative or judicial means. Income Tax (Chapters 21, 22, 23, 23A, are published in the Federal Register. (viii) Definitions—(A) Series 24 and 25 of the Internal Revenue (ii) Transition rule—(A) In general. organization. A series organization is a Code). [Reserved.] Except as provided in paragraph juridical entity that establishes and (x) Examples. The following examples (f)(3)(ii)(B) of this section, a taxpayer’s maintains, or under which is illustrate the principles of this treatment of a series in a manner established and maintained, a series (as paragraph (a)(5): inconsistent with the final regulations will be respected on and after the date defined in paragraph (a)(5)(viii)(C) of Example 1. Domestic Series LLC. (i) Facts. this section). A series organization Series LLC is a series organization (within final regulations are published in the includes a series limited liability the meaning of paragraph (a)(5)(viii)(A) of Federal Register, provided that— company, series partnership, series this section). Series LLC has three members (1) The series was established prior to trust, protected cell company, (1, 2, and 3). Series LLC establishes two September 14, 2010; segregated cell company, segregated series (A and B) pursuant to the LLC statute (2) The series (independent of the portfolio company, or segregated of state Y, a series statute within the meaning series organization or other series of the account company. of paragraph (a)(5)(viii)(B) of this section. series organization) conducted business (B) Series statute. A series statute is Under general tax principles, Members 1 and or investment activity, or, in the case of a statute of a State or foreign jurisdiction 2 are the owners of Series A, and Member 3 a series established pursuant to a foreign is the owner of Series B. Series A and B are that explicitly provides for the not described in § 301.7701–2(b) or statute, more than half the business of organization or establishment of a series paragraph (a)(3) of this section and are not the series was the issuing of insurance of a juridical person and explicitly trusts within the meaning of § 301.7701–4. or annuity contracts or the reinsuring of permits— risks underwritten by insurance (ii) Analysis. Under paragraph (a)(5)(i) (1) Members or participants of a series companies, on and prior to September of this section, Series A and Series B are organization to have rights, powers, or 14, 2010. duties with respect to the series; each treated as an entity formed under (3) If the series was established (2) A series to have separate rights, local law. The classification of Series A pursuant to a foreign statute, the series’ powers, or duties with respect to and Series B is determined under classification was relevant (as defined in specified property or obligations; and paragraph (b) of this section. The default § 301.7701–3(d)), and more than half the (3) The segregation of assets and classification under § 301.7701–3 of business of the series was the issuing of liabilities such that none of the debts Series A is a partnership and of Series insurance or annuity contracts or the and liabilities of the series organization B is a disregarded entity. reinsuring of risks underwritten by (other than liabilities to the State or Example 2. Foreign Insurance Cell. insurance companies for all taxable foreign jurisdiction related to the (i) Facts. Insurance CellCo is a series years beginning with the taxable year organization or operation of the series organization (within the meaning of that includes September 14, 2010; organization, such as franchise fees or paragraph (a)(5)(viii)(A) of this section) (4) No owner of the series treats the administrative costs) or of any other organized under the laws of foreign Country series as an entity separate from any series of the series organization are X. Insurance CellCo has established one cell, Cell A, pursuant to a Country X law that is other series of the series organization or enforceable against the assets of a a series statute (within the meaning of from the series organization for particular series of the series paragraph (a)(5)(viii)(B) of this section). More purposes of filing any Federal income organization. than half the business of Cell A during the tax returns, information returns, or (C) Series. A series is a segregated taxable year is the issuing of insurance or withholding documents in any taxable group of assets and liabilities that is annuity contracts or the reinsuring of risks year; established pursuant to a series statute underwritten by insurance companies. If the (5) The series and series organization (as defined in paragraph (a)(5)(viii)(B) of activities of Cell A were conducted by a had a reasonable basis (within the this section) by agreement of a series domestic company, that company would meaning of section 6662) for their organization (as defined in paragraph qualify as an insurance company within the claimed classification; and meaning of sections 816(a) and 831(c). (a)(5)(viii)(A) of this section). A series (6) Neither the series nor any owner includes a series, cell, segregated (ii) Analysis. Under paragraph of the series nor the series organization account, or segregated portfolio, (a)(5)(ii) of this section, Cell A is treated was notified in writing on or before the including a cell, segregated account, or as an entity formed under local law. date final regulations are published in segregated portfolio that is formed Because Cell A is an insurance the Federal Register that classification under the insurance code of a company, it is classified as a of the series was under examination (in jurisdiction or is engaged in an corporation under § 301.7701–2(b)(4). which case the series’ classification will insurance business. However, the term * * * * * be determined in the examination). series does not include a segregated (e) State. For purposes of this section (B) Exception to transition rule. asset account of a life insurance and §§ 301.7701–2 and 301.7701–4, the Paragraph (f)(3)(ii)(A) of this section

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will not apply on and after the date any will be held at the Port of Los Angeles We encourage you to participate in person or persons who were not owners Administration Building at 425 S. Palos this study by submitting comments at of the series organization (or series) Verdes St., San Pedro, CA 90731. Visitor the meeting either orally or in writing. prior to September 14, 2010 own, in the parking is available in the Liberty Hill If you bring written comments to the aggregate, a fifty percent or greater Plaza parking lot directly across the meeting, you may submit them to Coast interest in the series organization (or street from the Port of Los Angeles Guard personnel specified at the series). For purposes of the preceding Administration Building. Government- meeting to receive written comments. sentence, the term interest means— issued photo identification will be These comments will be posted to our (1) In the case of a partnership, a required for entrance into both online public docket. All comments capital or profits interest; and buildings. received will be posted without change (2) In the case of a corporation, an equity interest measured by vote or FOR FURTHER INFORMATION CONTACT: If to http://www.regulations.gov and will value. you have questions concerning the include any personal information you meeting or the study, please call or e- have provided. Steven T. Miller, mail LTJG Lucas Mancini, Coast Guard; Anyone can search the electronic Deputy Commissioner for Services and telephone 510–437–3801, e-mail form of comments received into any of Enforcement. [email protected]. If you have our dockets by the name of the [FR Doc. 2010–22793 Filed 9–13–10; 8:45 am] questions on viewing the docket call individual submitting the comment (or BILLING CODE 4830–01–P Ms. Renee V. Wright, Program Manager, signing the comment, if submitted on Docket Operations, telephone 202–366– behalf of an association, business, labor 9826. union, etc.). You may review a Privacy DEPARTMENT OF HOMELAND SUPPLEMENTARY INFORMATION: Act notice regarding our public dockets SECURITY Background and Purpose in the January 17, 2008, issue of the Coast Guard Federal Register (73 FR 3316). We published a notice of study in the Federal Register on April 7, 2010 (75 FR Information on Service for Individuals 33 CFR Part 167 17562), entitled ‘‘Port Access Route With Disabilities [Docket No. USCG–2009–0765] Study: In the Approaches to Los Angeles-Long Beach and In the Santa For information on facilities or Port Access Route Study: In the Barbara Channel’’ in which we did not services for individuals with disabilities Approaches to Los Angeles-Long state a plan to hold a public meeting. or to request special assistance at the Beach and in the Santa Barbara We received several requests for a public meeting, contact LTJG Lucas Channel meeting in comments submitted to the Mancini at the telephone number or e- mail address indicated under the FOR AGENCY: Coast Guard, DHS. docket and have concluded that a public FURTHER INFORMATION CONTACT section of ACTION: Notice of public meetings; meeting would aid this study. this notice. request for comments. Therefore, we are publishing this notice. In the notice of PARS, we discussed Public Meeting SUMMARY: The Coast Guard announces increased vessel traffic observed two separate public meetings to receive bypassing the Santa Barbara Channel The Coast Guard will hold public comments on the study entitled ‘‘Port Traffic Separation Scheme (TSS) and meetings regarding its Port Access Route Access Route Study: In the Approaches opting for routes south of San Miguel, Study In the Approaches to Los to Los Angeles-Long Beach and in the Santa Rosa, and Santa Cruz Islands Angeles-Long Beach and In the Santa Santa Barbara Channel’’ that was approaching the San Pedro Channel. Barbara Channel proposed rule on published in the Federal Register on This study will assess whether the Wednesday, October 13, 2010 from 7 Wednesday, April 7, 2010. As stated in creation of a vessel routing system is p.m. to 9 p.m. at the Oxnard Harbor that document, the Coast Guard is necessary to increase the predictability District Offices and Thursday, October conducting a Port Access Route Study of vessel movements, which may 14, 2010 from 7 p.m. to 9 p.m. in the (PARS) to evaluate the continued decrease the potential for collisions, oil 2nd floor board room at the Port of Los applicability of and the potential need spills, and other events that could Angeles Administration Building, for modifications to the current vessel threaten the marine environment. routing in the approaches to Los telephone (310) SEA–PORT (732–7668). You may view the notice of PARS in Government-issued photo identification Angeles-Long Beach and in the Santa our online docket, in addition to Barbara Channel. (for example, a driver’s license or TWIC) comments submitted thus far by going will be required for entrance into both DATES: Public meetings will be held on to http://www.regulations.gov. Once buildings. We will provide a written Wednesday, October 13, 2010 from 7 there, insert ‘‘USCG–2009–0765’’ in the summary of the meeting and additional p.m. to 9 p.m., and on Thursday, ‘‘Keyword’’ box and click ‘‘Search.’’ If October 14, 2010 from 7 p.m. to 9 p.m. you do not have access to the internet, comments received at the meeting in the to provide an opportunity for oral you may view the docket online by docket. comments. Written comments and visiting the Docket Management Facility Dated: September 2, 2010. related material may also be submitted in Room W12–140 on the ground floor S.P. Metruck, to Coast Guard personnel specified at of the Department of Transportation Captain, U.S. Coast Guard, Acting the meetings. West Building, 1200 New Jersey Commander, Eleventh Coast Guard District. ADDRESSES: The October 13, 2010 public Avenue, SE., Washington, DC 20590, [FR Doc. 2010–22799 Filed 9–13–10; 8:45 am] meeting will be held at Oxnard Harbor between 9 a.m. and 5 p.m., Monday District Offices at 333 Ponoma Street in through Friday, except Federal holidays. BILLING CODE 9110–04–P Port Hueneme, CA. Visitor parking is We have an agreement with the available in the adjacent parking lot. Department of Transportation to use the The October 14, 2010 public meeting Docket Management Facility.

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DEPARTMENT OF AGRICULTURE Throughout its 100-year history, the authorities; accountability and Forest Service has utilized partnership reporting; human resources and ethics; Forest Service arrangements with States, Tribes, non- and funding. governmental organizations, and others Public Input Requested On Policy 36 CFR Part 200 to help carry out the motto ‘‘Caring for Needs RIN 0596–AC89 the Land and Serving People.’’ These arrangements are used in a variety of The Forest Service is requesting Enhancing Policies Relating to ways to support Forest Service programs public input with respect to Agency Partnerships on Federal, State, Tribal and private policy. Our intent with the issuance of lands, including ecological restoration this notice is to consider such input AGENCY: Forest Service, USDA. and enhancement, interpretation and and, as appropriate, incorporate it in ACTION: Advance notice of proposed rule educational services, enhancement of developing this policy. Certain making; request for comment. recreation opportunities, and wildlife suggestions, whether due to legislative habitat improvements. These programs or other limitations, may not be SUMMARY: The Forest Service is readily provide a spectrum of benefits to implemented through Agency policy, proposing to establish an internal the Forest Service, its partners, and the and we wish for the public to directive at Forest Service Handbook public and may include various understand that as well. (FSH) 1509.14 that would enhance instruments to formalize relationships, The Forest Service is especially policies related to partnerships. We including grants, contracts or ‘‘mutual interested in receiving input to the invite public comment on assessing benefit’’ agreements. following questions: what changes or additions are needed A number of statutory authorities 1. Purposes served by partnership relating to the Agency’s use of govern how and when the Forest arrangements: What should be the partnership arrangements in carrying Service may work cooperatively with purpose(s) of partnership arrangements out our mission. These comments will partners, such as the Cooperative Funds between the Forest Service and State, be considered in developing the Act, Cooperative Funds and Deposits Tribal, non-governmental, or other proposed directive. Act, Cooperative Forestry Assistance organizations or individuals? Where can DATES: Comments must be received in Act, Granger-Thye Act, Federal Grants or should partnerships have the greatest writing by November 15, 2010. and Cooperative Agreements Act, and impact in the future, and toward what ends? ADDRESSES: Written comments Public Law 105–277, Section 323 as amended by Public Law 111–11, Section 2. Essential characteristics of concerning this notice should be partnerships: When the Forest Service addressed to Forest Service, USDA, 3001, Watershed Restoration and Enhancement Agreements. (For more and a partner work together, what are Attn: Director, National Partnership the essential characteristics that are Office, Joe Meade, Mailstop 1158, 1400 background on the Forest Service’s use of partnership arrangements, readers are needed in that relationship to lead to a Independence Ave., SW., Washington, successful outcome? In what ways does DC, 20250–1125. referred to the Partnership Guide, http:// Agency guidance regarding the essential Comments may also be sent via e-mail characteristics of the partnership to [email protected], or by the www.partnershipresourcecenter.org/ resources/partnership-guide/ relationship need clarification? electronic process available at Federal e- 3. Reaching new partners: As the Rulemaking portal at http:// Partnership-Guide.pdf). Establishing partnerships and Nation’s demographics change, the www.regulations.gov. utilizing them to their greatest potential people served by the Forest Service are All comments, including names and has not always been a simple matter for becoming increasingly diverse. The addresses when provided, are placed in the Forest Service and its partners. Agency wants to reflect this diversity in the record and are available for public Challenges have resulted, in part, from its partnership activities. We are inspection and copying. The public may the multiplicity of partnership interested in hearing from the public inspect comments received at 201 14th authorities, varying interpretation of about: (a) Which potential partners are Street, SW., Room 3NE, Washington, DC these authorities, and time-consuming under-represented and under-served; (b) 20250. Visitors are encouraged to call processes for consummating partnership what kinds of work are these ahead 202–205–1055 to facilitate agreements. To address such challenges, individuals or organizations involved entrance into the building. the Forest Service has taken a number in; (c) how engaging these partners will FOR FURTHER INFORMATION CONTACT: of steps in recent years, including be beneficial; and (d) how the Forest Andrea Bedell-Loucks, Deputy Director, creating an internal task force, to Service can better access and National Partnership Office, 202–205– identify barriers to partnership communicate with under-represented 8336 or [email protected]. utilization, establishing the National and under-served groups. Individuals who use Partnership Office, and developing 4. Partner recognition and telecommunication devices for the deaf various legislative proposals. sponsorship: Increasingly, non- (TDD) may call the Federal Relay In 2007, the Forest Service embarked governmental organizations and Service (FRS) at 1–800–877–8339, on an initiative to institute needed individuals are expressing interest in between 8 a.m. and 8 p.m., Eastern modifications to Agency policy working with the Forest Service to Standard Time, Monday through Friday. intended to reduce barriers to improve the condition of our SUPPLEMENTARY INFORMATION: partnership arrangements. An essential environment, including our Nation’s part of this initiative was the review of forests. The Forest Service is able to Background and Need for the Proposed a number of policy issues raised over work with many of these organizations Directive the years by those inside and outside directly, as well as indirectly through Strong partnerships are vital to the the Forest Service that impede effective established non-profits (for example, the Forest Service’s mission, and by use of partnerships. Based on that National Forest Foundation and others). ensuring clear guidance on the use of review, these issues fall into several As a Federal agency, there are such arrangements, the Forest Service broad categories: Administrative limitations on how we work with and will be better able to promote their use. processes; interpretation of legal recognize particular partners (for

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example, signage, plaques, media and Public Hearing: As explained in the (75 FR 45340)) of the preamble compare communication). What are the proposed Transport Rule, three public the proposed rule with the Clean Air appropriate ways the Forest Service hearings were scheduled to be held Interstate Rule and the Acid Rain should recognize our partners, both before the end of the comment period. Program and mention in a summary way non-profit and for-profit? The dates, times and locations were the treatment of opt-in units in the announced separately. Please refer to proposed rule. Two sentences in those Conclusion the notice of public hearings (75 FR portions of the preamble erroneously The Forest Service is considering how 45075, August 2, 2010) on the proposed state that the proposal does not allow best to proceed with policy Transport Rule for additional units to opt in. development relating to partnership information on the comment period and EPA believes that the proposed arrangements. Public input relating to the public hearings. Transport Rule, as written, makes it the questions listed above will be ADDRESSES: The EPA has established a clear that the Agency is proposing to helpful in developing the Agency’s docket for the proposed Transport Rule, allow units to opt into the Transport policy. including this action, under Docket ID Rule trading programs. Furthermore, on Dated: September 8, 2010. EPA–HQ–OAR–2009–0491. All July 15, 2010, EPA put a statement on Thomas L. Tidwell, documents in the docket are listed in its Web site noting that the proposed the http://www.regulations.gov index. trading programs allow for opt-in units Chief, Forest Service. Although listed in the index, some and explaining that the two sentences [FR Doc. 2010–22819 Filed 9–13–10; 8:45 am] information is not publicly available, on 75 FR 45338 and 45340 are in error. BILLING CODE 3410–11–P e.g., confidential business information On August 2, 2010, the docket for the or other information whose disclosure is proposed Transport Rule, including a restricted by statute. Certain other memorandum noting that this statement ENVIRONMENTAL PROTECTION material, such as copyrighted material, had been put on EPA’s Web site, became AGENCY will be publicly available only in hard publicly available. copy. Publicly available docket While EPA maintains that its proposal 40 CFR Parts 51, 52, 72, 78, and 97 materials are available either is clear in proposing to allow opt-in [EPA–HQ–OAR–2009–0491; FRL–9201–6] electronically in http:// units, EPA is publishing this www.regulations.gov or in hard copy at amendment to the proposed Transport RIN 2060–AP50 the EPA Docket Center EPA/DC, EPA Rule to eliminate any possible claim of West, Room 3334, 1301 Constitution confusion. Specifically, EPA is Federal Implementation Plans To Ave., NW., Washington, DC. The Public amending the two erroneous sentences Reduce Interstate Transport of Fine Reading Room is open from 8:30 a.m. to in the proposed Transport Rule Particulate Matter and Ozone; 4:30 p.m., Monday through Friday, preamble as follows. The second Correction excluding legal holidays. The telephone sentence in section V.F.3 of the AGENCY: Environmental Protection number for the Public Reading Room is preamble (75 FR 45338 (col. 1)) is Agency (EPA). (202) 566–1744, and the telephone amended to read: ‘‘First, the proposed number for the EPA Docket Center is Transport Rule allows units to opt into ACTION: Proposed rule; correcting ’’ amendments. (202) 566–1742. This action and other the trading programs. The seventh rulemaking actions related to the sentence of section V.G.1 of the SUMMARY: The preamble to the proposed proposed Transport Rule are also preamble (75 FR 45340 (col. 2)) is Transport Rule contains minor, available at EPA’s Air Transport Web amended to read: ‘‘The Transport Rule technical errors that EPA is correcting in site at http://www.epa.gov/airtransport. programs as proposed have opt-in this action. In the portion of the FOR FURTHER INFORMATION CONTACT: Mr. provisions, so sources, including those preamble discussing in detail the Tim Smith, Air Quality Policy Division, that have opted into the Acid Rain proposed trading programs, EPA states Office of Air Quality Planning and Program, would be able to opt into the clearly that it is proposing provisions Standards (C539–04), Environmental Transport Rule programs.’’ These that allow units to opt into these trading Protection Agency, Research Triangle amendments are technical changes that programs. Moreover, the proposed rule Park, NC 27711; telephone number: do not alter the substance of the text for the Transport Rule includes (919) 541–4718; fax number: (919) 541– proposal. On the contrary, the detailed opt-in provisions for each 0824; e-mail address: amendments simply make two proposed trading program. However, [email protected]. sentences in the preamble that two sentences in other portions of the SUPPLEMENTARY INFORMATION: summarily refer to the treatment of opt- Transport Rule preamble erroneously The proposed Transport Rule contains in units in the proposal consistent with state that the proposed trading programs minor, technical errors in two sentences the portions of the preamble and rule do not allow units to opt in. In this in the preamble. In the portion of the text that contain not only a proposed rule, EPA is correcting these preamble (i.e., section V.D.4.a (75 FR comprehensive, detailed discussion of technical errors. 45307–9)) that discusses in detail the EPA’s proposed inclusion of opt-in DATES: Effective Date: These correcting proposed Transport Rule trading units in the proposed Transport Rule amendments are effective on September programs, EPA states clearly that it is programs, but also the proposed opt-in 14, 2010. proposing provisions that allow units to provisions themselves. Comments: The deadline for receipt of opt into the proposed trading programs. Statutory and Executive Order Reviews comments on the proposed Transport Moreover, the proposed rule text in the Rule (including the corrections proposed Transport Rule (75 FR 45389– A. Executive Order 12866: Regulatory proposed by this action) continues to be 92, 45414–17, 45438–41, and 45462–65) Planning and Review October 1, 2010, the same date set forth includes detailed opt-in provisions for This action only corrects minor, in the proposed Transport Rule (75 FR each of these trading programs. technical errors in the proposed 45210, August 2, 2010) as the deadline However, subsequent portions (i.e., Transport Rule and, as discussed above, for receipt of comments. sections V.F.3 (75 FR 45338) and V.G.1 does not make any substantive change

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in the proposal. This action is therefore E. Executive Order 13132: Federalism I. National Technology Transfer not an ‘‘economically significant EPA previously discussed the Advancement Act regulatory action’’ under Executive federalism implications of the proposed EPA previously discussed the Order 12866, Regulatory Planning and Transport Rule. This action correcting consistency of the proposed Transport Review (58 FR 51735, October 4, 1993). minor, technical errors does not have Moreover, the Office of Management any federalism implications. The Rule with the requirements of section and Budget (OMB) previously reviewed discussion of federalism implications 12(b) of the National Technology the proposed Transport Rule under and of the applicability of Executive Transfer and Advancement Act of 1995, Executive Order 12866. Order 13132, Federalism (64 FR 43255, (NTAA) Public Law 104–113, 12(d) (15 In addition, EPA previously prepared August 10, 1999) in the proposed U.S.C. 272 note). This action correcting the Regulatory Impacts Analysis (RIA) Transport Rule remain fully applicable minor, technical errors does not involve for the proposed Transport Rule. This to the proposed Transport Rule with the the use of technical standards. The action correcting minor, technical errors corrections proposed by this action. discussion of the application of NTAA requirements in the proposed Transport does not affect the RIA. The RIA and the F. Executive Order 13175: Consultation Rule remains fully applicable to the discussion of it in the proposed and Coordination With Indian Tribal Transport Rule remain fully applicable Governments proposed Transport Rule with the to the proposed Transport Rule with the corrections proposed by this action. corrections proposed by this action. EPA previously discussed the tribal implications of the proposed Transport J. Executive Order 12898: Federal B. Paperwork Reduction Act Rule. This action correcting minor, Actions To Address Environmental technical errors does not have any tribal Justice in Minority Populations and EPA previously submitted for implications. The discussion of tribal Low-Income Populations approval by OMB under the Paperwork implications, and of the applicability of Reduction Act (44 U.S.C. 3501, et seq.) Executive Order 13175, Consultation EPA previously discussed the the information collection requirements and Coordination With Indian Tribal application of the requirements of in the proposed Transport Rule. This Governments (65 FR 67249, November Executive Order 12898, Federal Actions action correcting minor, technical errors 9, 2000), in the proposed Transport Rule To Address Environmental Justice in does not change these requirements and remain fully applicable to the proposed Minority Populations and Low-Income their estimated burden. The discussion Transport Rule with the corrections Populations (59 FR 7629, February 16, of the requirements and their burden in proposed by this action. 1994) to the proposed Transport Rule. the proposed Transport Rule remain G. Executive Order 13045: Protection of This action correcting minor, technical fully applicable to the proposed errors does not change the human Transport Rule with the corrections Children From Environmental Health and Safety Risks health or environmental effects of the proposed by this action. proposed Transport Rule on minority, EPA previously discussed the low-income, and Tribal populations in C. Regulatory Flexibility Act (RFA) applicability of Executive Order 13045, the United States. The discussion Protection of Children From EPA previously certified that the applying the requirements of Executive proposed Transport Rule will not have Environmental Health and Safety Risks (62 FR 19885, April 23, 1997) to the Order 12898 in the proposed Transport a significant economic impact on a Rule remains fully applicable to the substantial number of small entities. proposed Transport Rule. This action correcting minor, technical errors does proposed Transport Rule with the This action correcting minor, technical corrections proposed by this action. errors does not change the economic not involve decisions on environmental impact. The certification and the health and safety that may List of Subjects discussion of it in the proposed disproportionately affect children. The 40 CFR Part 52 Transport Rule remain fully applicable discussion in the proposed Transport Rule concerning Executive Order 13045 to the proposed Transport Rule with the Administrative practice and corrections proposed by this action. remains fully applicable to the proposed Transport Rule with the corrections procedure, Air pollution control, D. Unfunded Mandates Reform Act proposed by this action. Intergovernmental relations, Nitrogen oxides, Ozone, Particulate matter, EPA previously prepared a written H. Executive Order 13211: Actions That Regional haze, Reporting and statement under section 202 of the Significantly Affect Energy Supply, recordkeeping requirements, Sulfur Unfunded Mandates Reform Act of 1995 Distribution, or Use dioxide. (UMRA) (2 U.S.C. 1531–1538), and EPA previously prepared a Statement addressed the requirements of sections of Energy Effects under Executive Order 40 CFR Part 78 203 through 205 of UMRA, concerning 13211, Actions Concerning Regulations Acid rain, Administrative practice the proposed Transport Rule. This That Significantly Affect Energy Supply, and procedure, Air pollution control, action correcting minor, technical errors Distribution, or Use (66 FR 28355, May Electric utilities, Intergovernmental does not contain a Federal mandate that 22, 2001). This action correcting minor, relations, Nitrogen oxides, Reporting may result in expenditures of $100 technical errors not only is not a and recordkeeping requirements, Sulfur million or more for state, local, and ‘‘significant energy action’’ as defined in tribal governments, in the aggregate, or section 4(b) of Executive Order 13211, dioxide. the private sector in any one year. The but also does not affect the Statement of 40 CFR Part 97 written statement and the discussion of Energy Effects. The statement and the the requirements of sections 203 discussion of the statement in the Administrative practice and through 205 of UMRA in the proposed proposed Transport Rule remain fully procedure, Air pollution control, Transport Rule remain fully applicable applicable to the proposed Transport Electric utilities, Nitrogen oxides, to the proposed Transport Rule with the Rule with the corrections proposed by Reporting and recordkeeping corrections proposed by this action. this action. requirements, Sulfur dioxide.

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Dated: September 8, 2010. DATES: Written comments must be encryption, and be free of any defects or Lisa Jackson, received on or before October 14, 2010. viruses. For additional information Administrator. ADDRESSES: Submit your comments, about EPA’s public docket, visit the EPA [FR Doc. 2010–22851 Filed 9–13–10; 8:45 am] identified by Docket ID No. EPA–R08– Docket Center homepage at http:// BILLING CODE 6560–50–P OAR–2006–0952, by one of the www.epa.gov/epahome/dockets.htm. following methods: For additional instructions on • http://www.regulations.gov. Follow submitting comments, go to Section I, ENVIRONMENTAL PROTECTION the on-line instructions for submitting ‘‘General Information,’’ of the AGENCY comments. SUPPLEMENTARY INFORMATION section of • E-mail: [email protected]. this document. 40 CFR Part 52 • Fax: (303) 312–6064 (please alert Docket: All documents in the docket [EPA–R08–OAR–2006–0952; FRL–9200–9] the individual listed in FOR FURTHER are listed in the http:// INFORMATION CONTACT if you are faxing www.regulations.gov index. Although Air Quality Implementation Plans; comments). listed in the index, some information is Montana; Attainment Plan for Libby, • Mail: Callie Videtich, Director, Air not publicly available, e.g., CBI or other MT PM2.5 Nonattainment Area and Program, Environmental Protection information whose disclosure is PM10 State Implementation Plan Agency (EPA), Region 8, Mailcode 8P– restricted by statute. Certain other Revisions AR, 1595 Wynkoop St., Denver, material, such as copyrighted material, will be publicly available only in hard AGENCY: Environmental Protection Colorado 80202–1129. • copy. Publicly available docket Agency (EPA). Hand Delivery: Callie Videtich, Director, Air Program, Environmental materials are available either ACTION: Proposed rule. Protection Agency (EPA), Region 8, Mail electronically in http:// SUMMARY: EPA is proposing to approve Code 8P–AR, 1595 Wynkoop St., www.regulations.gov or in hard copy at the State Implementation Plan (SIP) Denver, Colorado 80202–1129. Such the Air Program, Environmental revision submitted by the State of deliveries are only accepted Monday Protection Agency (EPA), Region 8, Montana on March 26, 2008. Montana through Friday, 8 a.m. to 4:30 p.m., 1595 Wynkoop St., Denver, Colorado submitted this SIP revision to meet excluding Federal holidays. Special 80202–1129. EPA requests that, if at all Clean Air Act requirements for attaining arrangements should be made for possible, you contact the individual the 15.0 micrograms per cubic meter deliveries of boxed information. listed in FOR FURTHER INFORMATION (μg/m3) annual fine Particulate Matter Instructions: Direct your comments to CONTACT to view the hard copy of the (PM2.5) national ambient air quality Docket ID No. EPA–R08–OAR–2006– docket. You may view the hard copy of standard (NAAQS) for the Libby 0952. EPA’s policy is that all comments the docket Monday through Friday, 8 nonattainment area. The plan, herein received will be included in the public a.m. to 4 p.m., excluding Federal called an ‘‘attainment plan,’’ includes an docket without change and may be holidays. attainment demonstration, an analysis made available online at http:// FOR FURTHER INFORMATION CONTACT: of Reasonably Available Control www.regulations.gov, including any Crystal Freeman, Air Program, Technology and Reasonably Available personal information provided, unless Environmental Protection Agency Control Measures (RACT/RACM), base- the comment includes information (EPA), Region 8, Mailcode 8P–AR, 1595 year and projection year emission claimed to be Confidential Business Wynkoop Street, Denver, Colorado inventories, and contingency measures. Information (CBI) or other information 80202–1129, Phone: (303) 312–6602, The requirement for a Reasonable whose disclosure is restricted by statute. Fax: (303) 312–6064, Further Progress (RFP) plan is satisfied Do not submit information that you [email protected]. because Montana projects that consider to be CBI or otherwise SUPPLEMENTARY INFORMATION: attainment with the 1997 PM2.5 NAAQS protected through http:// will occur in the Libby nonattainment www.regulations.gov or e-mail. The Definitions area by April 2010. In addition, we are http://www.regulations.gov Web site is For the purpose of this document, we proposing to approve the PM10 SIP an anonymous access system, which are giving meaning to certain words or revisions to the Lincoln County Air means EPA will not know your identity initials as follows: Pollution Control Program submitted by or contact information unless you (i) The words or initials Act or CAA Montana on June 26, 2006 for inclusion provide it in the body of your comment. mean or refer to the Clean Air Act, into Libby’s attainment plan. This If you send an e-mail comment directly unless the context indicates otherwise. submittal contains provisions, including to EPA, without going through http:// (ii) The words EPA, we, us or our contingency measures, for controlling www.regulations.gov, your e-mail mean or refer to the United States both PM10 and PM2.5 emissions from address will be automatically captured Environmental Protection Agency. woodstoves, road dust, and outdoor and included as part of the comment (iii) The initials SIP mean or refer to burning. Finally, EPA is proposing to that is placed in the public docket and State Implementation Plan. find on-road directly emitted PM2.5 and made available on the Internet. If you (iv) The initials PM2.5 mean or refer to oxides of nitrogen (NOX) in the Libby, submit an electronic comment, EPA particulate matter with an aerodynamic Montana nonattainment area recommends that you include your diameter of less than 2.5 micrometers. insignificant for regional transportation name and other contact information in (v) The initials PM10 mean or refer to conformity purposes. If this the body of your comment and with any particulate matter with an aerodynamic insignificance finding is finalized as disk or CD–ROM you submit. If EPA diameter of less than 10 micrometers. proposed, the Libby, Montana cannot read your comment due to (vi) The word State or Montana refers nonattainment area will not have to technical difficulties and cannot contact to the State of Montana unless the perform a regional emissions analysis you for clarification, EPA may not be context indicates otherwise. for either direct PM2.5 or NOX as part of able to consider your comment. (vii) The initials NAAQS mean or future conformity determinations for the Electronic files should avoid the use of refer to National Ambient Air Quality annual 1997 PM2.5 NAAQS. special characters, any form of Standards.

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Table of Contents d. Describe any assumptions and standards based on significant evidence provide any technical information and/ and numerous health studies I. General Information or data that you used. demonstrating that serious health effects II. What Action Is EPA Proposing? e. If you estimate potential costs or are associated with exposures to PM2.5. III. What Is the Background for EPA’s burdens, explain how you arrived at Proposed Action? Following promulgation of a new or your estimate in sufficient detail to A. Designation History revised NAAQS, EPA is required by the B. Clean Air Fine Particle Implementation allow for it to be reproduced. f. Provide specific examples to CAA to designate areas throughout the Rule United States as attaining or not IV. What Is Included in Montana’s Submittal? illustrate your concerns, and suggest A. Background alternatives. attaining the NAAQS; this designation process is described in section 107(d)(1) B. PM10 SIP Revisions to the Lincoln g. Explain your views as clearly as County Air Pollution Control Program possible, avoiding the use of profanity of the CAA. In 1999, EPA and state air C. Libby and Vicinity PM2.5 Control Plan or personal threats. quality agencies initiated the monitoring V. EPA’s Analysis of Montana’s Submittal h. Make sure to submit your process for the 1997 PM2.5 NAAQS, and, A. PM10 SIP Revisions to Lincoln County comments by the comment period by January 2001, established a complete Air Pollution Control Program set of air quality monitors. On January B. Attainment Demonstration deadline identified. 5, 2005, EPA published initial air C. Analysis of Montana’s Submittal II. What action is EPA proposing? 1. Pollutants Addressed and Attainment quality designations for the 1997 PM2.5 Date EPA is proposing to approve two NAAQS (70 FR 944), based on air 2. Monitoring Data Montana SIP submittals for the Libby quality monitoring data for calendar 3. Emission Inventory nonattainment area: (1) PM10 SIP years 2001–2003. On April 14, 2005, 4. Modeling revisions to the Lincoln County Air EPA published a final supplemental 5. RACT/RACM Pollution Control Program submitted by 6. Contingency Measures rule amending the agency’s initial Montana on June 26, 2006; and (2) the designations (70 FR 19844). EPA did not 7. Transportation Conformity Libby PM attainment plan submitted Requirements 2.5 consider modifications made in this rule VI. Proposed Action by Montana on March 26, 2008. EPA has to be ‘‘re-designations’’ because the determined that the PM SIP revisions VII. Statutory and Executive Order Reviews 10 changes were made before April 5, 2005, and the PM attainment plan meet 2.5 the effective date of the initial applicable requirements of the Clean Air I. General Information designations. As a result of the final Act, including the Clean Air Fine A. What should I consider as I prepare Particle Implementation Rule (herein supplemental rule, PM2.5 nonattainment my comments for EPA? referred to as the implementation rule) designations are in effect for 39 areas, issued by EPA on April 25, 2007 (72 FR comprising 208 counties within 20 1. Submitting CBI. Do not submit this states (and the District of Columbia) information to EPA through http:// 20586). Furthermore, EPA has determined that Montana’s PM2.5 SIP nationwide, with a combined www.regulations.gov or e-mail. Clearly population of about 88 million people. mark the part or all of the information submittal for the Libby area includes an The Libby nonattainment area which is that you claim to be CBI. For CBI attainment demonstration, an analysis the subject of this rulemaking is information in a disk or CD ROM that of RACT/RACM, base-year and you mail to EPA, mark the outside of the projection-year emission inventories included in the list of areas not attaining disk or CD ROM as CBI and then and contingency measures. The the 1997 PM2.5 NAAQS. identify electronically within the disk or attainment plan supports a On October 17, 2006, EPA determination that the Libby PM2.5 CD ROM the specific information that is strengthened the 24-hour PM2.5 NAAQS claimed as CBI. In addition to one nonattainment area will attain the 1997 to 35 μg/m3 and retained the level of the PM2.5 NAAQS by the April 2010 3 complete version of the comment that annual PM2.5 standard at 15.0 μg/m (71 includes information claimed as CBI, a deadline for attainment. Finally, EPA is FR 61144). On November 13, 2009 EPA proposing to find on-road directly copy of the comment that does not designated areas as either attainment/ emitted PM and NO in the Libby, contain the information claimed as CBI 2.5 X unclassified or nonattainment with Montana nonattainment area must be submitted for inclusion in the respect to the revised 24-hour NAAQS insignificant for regional transportation public docket. Information so marked (74 FR 58688). In the November 2009 will not be disclosed except in conformity purposes. EPA’s analysis and findings are designation action, EPA established a accordance with procedures set forth in deadline of December 14, 2012 for states 40 CFR part 2. discussed in this proposed rulemaking. Additional technical support documents to submit attainment plans for areas 2. Tips for Preparing Your Comments. are available at http:// designated as nonattainment for the When submitting comments, remember www.regulations.gov, Docket No. EPA– revised 24-hour PM2.5 NAAQS. to: R08–OAR–2006–0952. Of relevance to the proposed a. Identify the rulemaking by docket rulemaking herein, the notice for the number and other identifying III. What is the background for EPA’s proposed action? November 2009 action clarified information (subject heading, Federal designations for the 1997 PM2.5 NAAQS Register date and page number). A. Designation History by relabeling the existing designation b. Follow directions—The agency may On July 18, 1997 (62 FR 38652), EPA tables to identify designations for the ask you to respond to specific questions established PM2.5 NAAQS, including an annual NAAQS, and by providing a or organize comments by referencing a annual standard of 15.0 μg/m3 based on separate table identifying designations Code of Federal Regulations (CFR) part a 3-year average of annual mean PM2.5 for the 1997 24-hour NAAQS (i.e., 65 or section number. concentrations, and a 24-hour (or daily) μlg/m3). In that table, the Libby c. Explain why you agree or disagree; standard of 65 μg/m3 based on a 3-year nonattainment area is designated as suggest alternatives and substitute average of the 98th percentile of 24-hour attaining the 1997 24-hour PM2.5 language for your requested changes. concentrations. EPA established the NAAQS.

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B. Clean Air Fine Particle Under these policies, sources of direct PM2.5 under section 107(d)(3) of the Implementation Rule PM2.5 emissions (including organic CAA, on April 5, 2005 (40 CFR part 81). On April 25, 2007, EPA issued the particles, elemental carbon and The air quality planning requirements Clean Air Fine Particle Implementation inorganic particles) and SO2 must be for PM2.5 nonattainment areas are set out 1 Rule for the 1997 PM NAAQS (72 FR evaluated for emission reduction in Title I subpart 1 of the Act. 2.5 Historically, Libby was designated 20586). The implementation rule measures in all PM2.5 nonattainment nonattainment for PM by operation of describes the CAA framework and areas. Sources of NOX must be evaluated 10 law on November 15, 1990 (56 FR requirements for developing state PM for emission reduction measures in each 2.5 56694, 56794, November 6, 1991), under attainment plans. An attainment plan area unless the state and EPA CAA section 107(d)(4)(B) and was must include a demonstration that a demonstrate that NOX is not a classified as ‘‘Moderate.’’ The PM nonattainment area will meet applicable significant contributor to PM2.5 10 attainment plan was approved by EPA NAAQS within the timeframe provided concentrations in a specific area. on August 30, 1994 (59 FR 44627). in the statute. This demonstration must Neither VOC nor ammonia sources are Montana has submitted revisions to the include modeling (40 CFR 51.1007) that required to be evaluated for emission reduction measures in an area unless Lincoln County Air Pollution Control is performed in accordance with EPA Program (herein referred to as the modeling guidance (EPA–454/B–07– the state or EPA demonstrates that either of these pollutant types Program) and the Libby and Vicinity 002, April 2007). It must also include PM Control Plan (herein referred to as supporting technical analyses and significantly contributes to PM2.5 2.5 concentrations. To reverse any of the the Libby attainment plan) for the descriptions of all relevant adopted purpose of demonstrating attainment of federal, state, and local regulations and presumptive precursor policies, the the annual PM2.5 NAAQS. After public control measures that have been implementation rule provided guidance on the types of analyses that may be notice, public hearings regarding these implemented by the proposed two submittals were held on February attainment date. included in a technical demonstration. The implementation rule also 27, 2006 for the Lincoln County Air For the 1997 PM2.5 NAAQS, an Pollution Control Program and on attainment plan must show that a provided guidance on other elements of a state’s attainment plan, including but March 25, 2008 for the Libby and nonattainment area will attain the Vicinity PM Control Plan. The standard by 2010. Alternatively, if the not limited to, consideration of emission 2.5 inventories, contingency measures, and Montana Board of Environmental area is not expected to meet the NAAQS Review approved the revised Lincoln by 2010, a state may propose an motor vehicle emissions budgets used for transportation conformity purposes. County Air Pollution Control Program attainment-date extension for up to five on March 23, 2006 and the Libby years based on the severity of the IV. What is included in Montana’s attainment plan on March 25, 2008. nonattainment problem and on the submittal? Montana has met the requirements of availability and feasibility of pollution A. Background Section 110(a)(2) for reasonable notice control measures (CAA section and public hearings. 172(a)(2)). Libby, Montana, a small rural For each nonattainment area, the state community, is located in Lincoln B. PM10 SIP Revisions to the Lincoln must demonstrate that it has adopted all County in the northwestern part of the County Air Pollution Control Program RACT/RACM needed to show that the State. Libby sits in the narrow, Montana submitted revisions to the ‘‘ area will attain the PM2.5 standards as triangular Kootenai valley at an PM10 SIP for the Lincoln County Air expeditiously as practicable.’’ The elevation of 2,100 feet. The Pollution Control Program for the Libby implementation rule provided guidance nonattainment area is dominated by nonattainment area to improve and for making these RACM and RACT three major mountain ranges that limit strengthen the PM10 attainment plan. determinations (72 FR 20616–21). Any the air-shed: (1) The Rocky Mountain The revisions include several provisions measures that are necessary to meet and Flathead Ranges on the eastern to regulate solid fuel burning devices these requirements which are not boundary; (2) the Purcell Range, which and require owners and operators to already either federally promulgated or roughly bisects the area from north to obtain operating permits. Operating part of the state’s SIP must be submitted south; and (3) the Selkirk and Cabinet permits may only be issued for EPA- in enforceable form as part of a state’s Ranges on the western boundary. The certified woodstoves or for pellet stoves. attainment plan. vast majority of the area surrounding Furthermore, only specified materials The implementation rule also Libby is National Forest managed by the can be burned in these devices, and included policies on pollutants that U.S. Forest Service. Based on the 2000 visible emissions of greater than 20% comprise total PM2.5. Five main types of census and a growth rate through 2005 opacity from them are prohibited. pollutants contribute to fine particle of 3.71%, Libby’s population is Additionally, these provisions allow for concentrations: direct PM2.5, sulfur estimated at 2,674. air pollution alerts if PM10 or PM2.5 dioxide (SO2), nitrogen oxides (NOX), The highest PM2.5 concentrations in concentrations averaged over a 4-hour ammonia, and volatile organic Libby generally occur during the winter period exceed a level 20 percent below compounds (VOCs). All but direct PM2.5 months of November through February. any federal or state particulate matter is considered to be ‘‘precursors’’ to PM2.5 The winter concentrations are related to standard. Provisions are also included formation. The effect of reducing stagnant weather conditions dominated for penalties for non-compliance and emissions of each of these five types of by light winds and strong temperature contingency measures. pollutants varies by area, depending on inversions. These meteorological Additionally, revisions were made for PM2.5 composition, emission levels, and conditions can trap emissions within open and outdoor burning regarding other area-specific factors. For this the valley for many days or weeks. prohibited materials, major open reason, the implementation rule Air quality data recorded during burning and management burning, established policies regarding what 2001–2003 at the PM2.5 monitor at the minor open burning or residential open states should include in their PM2.5 Libby Courthouse Annex showed attainment plans for evaluating these violations of the annual PM2.5 standard. 1 Subpart 1 applies to nonattainment areas pollutants. Libby was designated nonattainment for generally.

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burning, and special burning. These Montana, Center for Environmental declared during the winter months; revisions generally included significant Health Sciences (UM–CEHS). The goal solid fuel burning devices must have an limits on the time periods for open of the CMB study was to identify those operating permit; only EPA-certified burning activities as compared to the emission sources in the Libby area that woodstoves and pellet fuel burning existing PM10 SIP. Further restrictions contributed to elevated PM2.5 devices can obtain permits; and only also include prohibitions on burning concentrations. The CMB model runs permitted pellet fuel devices can from November 1 to March 31, which is indicated that emissions from operate during air pollution alerts. the winter-time period when residential wood combustion were the Other control strategies for PM2.5 have exceedances of PM2.5 typically occur. major source of the fine particles on the included an expanded area for the Lincoln County’s Program prohibits PM2.5 filters, averaging 82% during the prescribed burning control program and burning the same materials as the State CMB study period (i.e., winter months). the continuing federal tailpipe but is more restrictive because the Other contributing PM2.5 sources standards. burning of trade waste, Christmas tree identified by the CMB model were 7. Analysis for RACT/RACM was waste, leaves, grass clippings and automobile exhaust (7%), ammonium stumps is prohibited within the Air conducted for the Libby area. EPA’s nitrate (5%), diesel exhaust (4%), and RACT/RACM guidance covers three Pollution Control District 2 (herein sulfate (2%).3 general source categories: stationary, referred to as the District). The June 26, 3. Carbon 14 (14C) analysis, as a part mobile and area (79 FR 20586). The 2006 submittal also included a of the CMB study completed by UM– Libby PM CMB study did not identify stringency analysis for the Program CEHS, was conducted by the University 2.5 any emissions from local stationary showing that the revisions are more of Arizona’s Accelerator Mass sources, only a minor amount from stringent than comparable State law. Spectrometry Laboratory Facility to mobile sources, and a significant provide further evidence that wood C. Libby and Vicinity PM2.5 Control Plan amount from an area source category— combustion was the major source of residential wood combustion. EPA’s The Libby attainment plan provides a PM emissions in Libby.4 2.5 area source RACM guidance covers four demonstration that the annual PM2.5 4. The Libby base year PM EI NAAQS will be met by April 2010 2.5 source categories: (1) Reduced solvent included a quantification of actual PM2.5 through the implementation of the emissions and apportioned the usage or solvent substitution; (2) Lincoln County Program described in emissions on a seasonal and annual controls on charbroiling or other section B above. The Libby attainment basis for point and area sources. The commercial cooking operations; (3) plan includes an emissions inventory State used calendar year 2005 as the controls on woodstoves and fireplaces; (EI), a woodstove air pollution control base year for the development of an EI and (4) new or improved regulations on calculation, and a technical analysis for the Libby area. The EI was used to open burning (79 FR 20586 and 20621). showing that the emissions of PM2.5 will support a proportional rollback model The Libby attainment plan concluded be reduced sufficiently to meet the for the emission control plan. The State that wood combustion control strategies NAAQS. The key components of the developed information for 2005 that and more stringent rules on open Libby attainment plan are described as allowed for the calculation of residential burning constituted RACM for area follows: wood combustion and commercial fuel sources. The analysis further noted that 1. Ambient air quality monitoring in use. the other two categories of area sources, the Libby area began in 1999 and is 5. The Libby PM SIP as revised also commercial users of solvent and conducted using Federal Reference 10 serves as the control plan for emissions commercial cooking, were infrequent in Method (FRM) PM samplers at the 2.5 of PM . Controls exist for reducing the Libby area. The analysis also Courthouse Annex site in downtown 2.5 emissions from re-entrained road dust considered mobile sources, but Libby. Based on monitoring data from through aggressive street sweeping and determined that in light of their small the years 2001 to 2003, the 3-year flushing, and traction sand durability contribution to PM2.5 nonattainment, annual design value was 15.9 μg/m3, requirements. Emissions of organic existing federal tailpipe standards and which is a violation of the annual PM 2.5 carbon are controlled through natural turnover rates of the local NAAQS. In February 2002, speciation residential woodstove regulations and vehicle fleet made additional measures monitoring was conducted to determine outdoor burning restrictions. for mobile sources unnecessary. possible PM emission sources. The 2.5 6. A significant part of the PM results identified organic carbon as the 2.5 8. The Lincoln County Air Pollution control strategies has been the main component of wintertime PM Control Program is legally enforceable 2.5 completion of a woodstove changeout emissions. Further ambient monitoring by Lincoln County, and by the State program. Approximately 1,130 was conducted from November 2003 to should Lincoln County fail to uncertified woodstoves were replaced February 2004 to determine the administer the program. The Libby with EPA-certified woodstoves or pellet geographic distribution of PM attainment plan also provides for 2.5 fuel burning devices. After the concentrations. After additional contingency measures if the NAAQS are changeout, PM emissions have been monitoring from various locations 2.5 exceeded after implementation. There is reduced from approximately 138.78 beyond Libby city limits and one contingency measure for wood tons/year to 57.21 tons/year, a decrease meteorological data from Libby burning for space heating purposes if it of 59%. Courthouse Annex site, it was is determined that wood burning PM control strategies are primarily determined that the Libby Courthouse 2.5 emissions contribute to an exceedance focused on residential wood Annex site represented the worst-case of the PM2.5 NAAQS, then only biomass combustion. The control strategies also ambient PM levels in the area. pellet fuel burners may operate within 2.5 include: air pollution alerts may be 2. A chemical mass balance study the District. Other contingency (CMB) was conducted during the winter measures are included for re-entrained 3 Ward, T.J., Rinehart, L.R., Lange, T. The 2003/ dust and industrial facilities. There is of 2003–2004 by the University of 2004 Libby, Montana PM2.5 Source Apportionment Research Study. Aerosol Science and Technology. also a review process to consider 2 The boundaries of the District are identical to Vol. 40:166–177. 2006. permanent adoption of a contingency those for the nonattainment area. 4 Ibid. measure.

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V. EPA’s Analysis of Montana’s C. Analysis of Montana’s Submittals 3. Emission Inventory Submittal 1. Pollutants Addressed and Attainment CAA section 172(c)(3) states that for A. PM10 SIP Revisions to Lincoln County Date nonattainment areas, the State shall Air Pollution Control Program prepare a statewide emission inventory In accordance with policies described no later than three years after EPA’s summary of the PM10 SIP in the implementation rule, Montana’s designation. The baseline emission revisions is addressed in detail under PM2.5 attainment plan evaluates inventory for calendar year 2005 or section IV.B. These revisions were made emissions of direct PM2.5, SO2 and NOX another suitable year shall be used for in the Libby area. Montana provided for two purposes: (1) To address PM2.5 attainment planning (40 CFR attainment plan requirements; and (2) to documentation of expeditious 51.1008(b)). EPA promulgated the Air improve and strengthen requirements attainment of the annual PM2.5 NAAQS Emissions Reporting Rule (AERR) (40 in the Libby area by April 2010. Areas for continued attainment of PM10. The CFR part 51, subpart A) in order to revisions are a significant improvement that demonstrate attainment by 2010 are consolidate the various reporting to a plan that was approved by EPA 16 considered to have satisfied the requirements that already exist, requirement to show reasonable further years ago. The Libby area has not had including those requirements outlined progress toward attainment and need an exceedance of the PM NAAQS in the PM2.5 implementation rule. The 10 not submit a separate RFP plan. For since 1993. Furthermore, clarifications AERR requires states to report state- similar reasons such areas are also not were made to the language to better wide emissions every three years. subject to a requirement for a mid- Montana prepared a statewide emission explain to the public the requirements course review. of the air quality program. The revisions inventory for 2005. This inventory removed exemptions and replaced them Montana’s evaluation of emissions is included annual totals of emissions of with requirements for obtaining permits based on the work conducted by UM– criteria pollutants and their precursors. for wood burning appliances. These CEHS for the CMB model runs The State used data from this statewide inventory to create an emission revisions also added enforcement indicating that emissions from inventory specific to the Libby area. provisions where previously none had residential wood combustion were the Monitoring data for 2005 showed an existed. major source (82%) of the fine particles on the PM2.5 filters. Other PM2.5 sources exceedance of the PM2.5 annual Section 110(l) of the Clean Air Act identified by the CMB model were standard. The year 2005 is a suitable states that a SIP revision cannot be automobile exhaust (7%), ammonium year for attainment planning because an approved if the revision would interfere nitrate (5%), diesel exhaust (4%), and emission inventory for this year is with any applicable requirement sulfate (2%). In addition, a Carbon 14 representative of ambient emission concerning attainment and reasonable analysis confirmed that wood levels that led to the exceedance of the further progress toward attainment of combustion is the major source of PM2.5 annual standard. The 2005 emission the NAAQS or any other applicable emissions in the Libby area and that inventory showed that residential wood requirement of the Act. The Libby area emissions of both SO2 and NOX are very burning comprised 82% of the direct is currently meeting the NAAQS for all minor compared to PM2.5 emissions PM2.5 emissions during the winter. The criteria pollutants and has not had any from residential wood combustion. As next largest direct source, road dust, violations of the PM10 standard for over described in the emissions inventory, was 11%, followed by locomotive a decade. Furthermore, the revisions do the sources of SO2 are from home emissions at 3.4%. The remaining not relax the stringency of any SIP heating oil and sources of NOX are from criteria pollutant emissions were very provision; in fact, the revisions on-road and off-road mobile sources (see minor, including the precursors of PM2.5 generally strengthen the SIP. As a result, further discussion in section V.C.7. on (i.e., NOX and SO2). Background values the PM10 SIP revisions do not interfere NOX emissions from mobile sources). of PM2.5 were accounted for by the State using monitored data collected at with attainment of the NAAQS or any 2. Monitoring Data other applicable requirement of the Act. remote stations far away from emissions Therefore, section 110(l) requirements As shown in the table below, the sources in the Libby area. EPA notes are satisfied. annual weighted average for 2009 shows that the State used a conservative that the Libby area has met the April emission inventory approach for B. Attainment Demonstration 2010 deadline for the 1997 PM2.5 projecting future growth for the 2010 attainment year which involved In accordance with section 172(c) of NAAQS. The trend in annual average increasing the vehicle emissions by the CAA and the implementation rule, concentrations is downward and 2.1% (the population growth rate) from the attainment plan submitted by coincides with the implementation of the woodstove changeout program. This the 2005 base year inventory, and not Montana for the Libby area included: (1) taking any credit for potential emission Emission inventories for the plan’s base is based on quality-controlled and quality-assured monitoring data from reductions that may have been available year (2005) and projection year (2009); from fleet turnover and the Federal and (2) an attainment demonstration 2005–2009 that is available in the EPA Air Quality System (AQS). tailpipe standards for vehicles. consisting of: (a) Technical analyses that Condensable particulate matter was not locate, identify, and quantify sources of TABLE V.2–1 considered in the emission inventory emissions contributing to violations of because of a lack of sources in the Libby the annual PM2.5 NAAQS; (b) analyses area. Year Annual weighted average of future-year emission reductions and (μg/m3) air quality improvements expected to 4. Modeling result from national and local programs, 2005 ...... 15.8 CAA Section 172(c) requires states and from new measures to meet RACT/ 2006 ...... 15.2 with nonattainment areas to submit an RACM requirements; (c) adopted 2007 ...... 13.0 attainment demonstration. A PM 2008 ...... 12.9 2.5 emission reduction measures; and (d) 2009 ...... 10.7 attainment demonstration consists of (1) contingency measures. analyses which estimate whether

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selected emissions reductions will guidance defines rule effectiveness (RE) reasoned that mobile sources are result in ambient concentrations that as a method to account for the reality currently regulated, make only a minor meet the NAAQS and (2) a set of control that not all emission sources are in contribution to the nonattainment measures which will result in the compliance 100% of the time. problem, and the overall emissions will required emissions reductions. The guidance provides a listing of the continue to be reduced through fleet Montana’s analysis of future-year factors that are most likely to affect RE. turnover. Thus, the first step focused on emissions reductions and air quality EPA used a conservative 70% RE measures for area sources. improvements was based on a instead of a 100 percent compliance to The analysis further noted that two proportional rollback model for showing determine if Libby would still reach types of area sources (commercial users attainment of the standard and a roll attainment of the PM2.5 standard. EPA of solvents and commercial charbroilers forward model demonstrating estimated that using the more or other commercial cooking operations) attainment in the future. The conservative compliance percentage for were infrequent in the Libby area. The proportional models were applied in wood burning restrictions, the future analysis also discussed re-entrained conjunction with the findings from value for Libby would still be below the road dust, which the CMB study did not 3 chemical mass balance and Carbon 14 PM2.5 standard of 15 μg/m . As stated identify as a contributor to PM2.5 studies conducted by the University of above in Table V.2.–1 the Libby area nonattainment, and noted that there Montana. 2009 annual average is currently 10.7 were existing SIP provisions to control In the particular case of Libby, a μg/m3. road dust. As to home heating oil, a proportional model is more appropriate source of SO , the CMB study found 5. RACT/RACM 2 than dispersion models. The great only a 2% contribution to PM2.5 majority of periods with elevated PM2.5 Determination of RACT/RACM is a nonattainment for all sulfates combined. concentrations in Libby occur during three-step process: (1) Identifying Thus, the RACM analyses focused on wintertime stagnation conditions. potential measures that are reasonable; the remaining area sources of wood Furthermore, dispersion in Libby is (2) modeling to identify the attainment burning devices and open burning and constrained by steep terrain. The most date that is as expeditious as identified several control measures to be suitable approach for stagnation practicable; and (3) selecting RACT/ included in the attainment plan. conditions should be determined on a RACM. Identification of potential For the second step, as discussed in case-by-case basis, (see sections 7.2.8 measures should ordinarily be more detail in section V.C.4, Montana and 8.3.4.2(b) of the Guideline on Air supported by an inventory of emissions modeled attainment by 2010 based on Quality Models, 40 CFR part 51, of directly emitted PM2.5 and of adoption of these reasonable control appendix W), and an alternative model precursors from the relevant sources measures. Finally, for the third step, should be selected by the EPA Regional and source categories; the based on the analysis, Montana selected Office when a preferred model is less technologically feasible control and adopted RACM for wood burning appropriate (see section 3.2.2 of the measures for each source or source devices and open burning. For wood Guideline). category; and, for each measure, the burning devices, the State developed The proportional model used the control efficiency, possible emission and implemented a woodstove emission inventory for 2005 when there reductions by pollutant, estimated cost changeout control strategy. The was an exceedance of the standard. The per ton, and the date by which the woodstove changeout permanently decrease in PM2.5 emissions for the measure was or could be implemented; removed 1,130 old, uncertified Libby area resulting from the woodstove and other relevant information. woodstoves and replaced them with changeout program was calculated For the first step, identification of EPA-certified woodstoves or pellet based on the amount of wood burned by potential measures that are reasonable, stoves. Additionally, the State adopted the EPA-certified woodstoves and then Montana supported its RACT/RACM measures that require permits for solid compared to the amount of emissions analysis with the emissions inventory fuel burning devices (including resulting from burning the same amount and the CMB study. The RACT/RACM woodstoves) and restrict installation of wood from the uncertified analysis first noted that there are no and operation of these devices to three woodstoves that were still in use. The major stationary sources of PM2.5 in the categories: pellet stoves, devices with a decrease in emissions would be an Libby area. It also noted that minor catalytic emissions control system, and indication of the effectiveness of the stationary sources are currently devices with a non-catalytic emissions control strategy. Montana estimated that regulated under Montana’s minor source control system. For the latter two, PM2.5 emissions would be reduced by program, which requires permits and a emission limits are imposed. 81.57 tons as a result of the new EPA- Best Available Control Technology RACM measures were also included certified woodstoves installed in Libby (BACT) review. As discussed in the for major open burning, management households. implementation rule, if state or federal burning, residential burning, and The State projected future annual rules already regulate a given sector, it special burning. The PM2.5 attainment average PM2.5 concentrations for Libby is reasonable for a state to look to plan includes BACT and permits for an at 9.5 μg/m3. This projection was based unregulated sectors for RACT/RACM expanded area, which is the entire Air on the installation of the new stoves and measures. Furthermore, the Pollution Control District, for all of a 100 percent compliance with the implementation rule permits the state to these different types of burning wood burning restrictions for Libby. use reason in the extent of its effort to activities. Additionally, these burning EPA’s guidance is based on emission identify potential control measures. For activities were restricted to shorter time sources complying with state and local example, the rigor of the analysis may periods. restrictions on emission sources depend on the relative contribution of a In summary, the State evaluated, by (Emissions Inventory Guidance for particular pollutant to the PM2.5 source category, sources of direct PM2.5, Implementation of Ozone and nonattainment problem (72 FR 20613). SO2 and NOX for RACT/RACM control Particulate Matter National Ambient Air As shown by the CMB study, stationary measures. The State’s evaluation of Quality Standards (NAAQS) and sources are a very minor contributor to sources of SO2 and NOX resulted in Regional Haze Regulations, appendix B, PM2.5 nonattainment in Libby. their decision that no additional EPA–454/R–05–001, August 2005.) The Similarly, the RACT/RACM analysis controls are necessary to attain the

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NAAQS based on the absence of major entrained dust are sufficient to meet the vehicles in the Libby PM2.5 sources or area sources that can be cost requirements of the CAA, including nonattainment area are an insignificant effectively or reasonably controlled. The equivalence to one year of RFP. contributor to the areas’ nonattainment State therefore adopted RACM for direct problem for a relevant NAAQS and/or 7. Transportation Conformity PM . In accordance with Section 172(c) 2.5 Requirements precursor. of the CAA, Montana has adopted all To consider making such an RACT/RACM needed to attain the Transportation conformity is required insignificant finding, EPA evaluated the standards as expeditiously as under CAA section 176(c) (42 U.S.C. provisions of 40 CFR 93.109(m) against practicable. EPA has reviewed 7506(c)) to ensure that transportation the relevant information contained in Montana’s RACT/RACM analysis and plans, transportation improvement the SIP attainment plan, the SIP has determined that the state reasonably programs (TIPs) and federally supported revision’s associated technical support highway and transit projects are identified potential control measures, document (TSD), and additional consistent with (‘‘conform to’’) the state modeled the attainment date that is as information as developed by EPA. We air quality implementation plan. expeditious as practicable and evaluated the following factors in Transportation conformity applies to reasonably selected RACT/RACM for determining whether on-road direct areas that are designated nonattainment, the Libby area. PM and NO emissions are and to those areas redesignated to 2.5 X insignificant contributors to the area’s 6. Contingency Measures attainment after 1990 with a CAA PM air quality problem; (1) the In conformance with Section 172(c)(9) section 175A maintenance plan 2.5 percentage of motor vehicle emissions of the CAA, the implementation rule (‘‘maintenance areas’’), for in the context of the total SIP inventory; requires that PM attainment area transportation-related criteria 2.5 (2) the current state of air quality as plans include contingency measures. pollutants: carbon monoxide (CO), NO X determined by monitoring data for that These measures must be fully adopted and particulate matter (PM2.5 and PM10). or otherwise ready for quick EPA’s transportation conformity rule NAAQS; (3) the absence of SIP motor implementation, should contain trigger (40 CFR parts 51 and 93) establishes the vehicle control measures; and (4) mechanisms and an implementation criteria and procedures for determining historical trends and future projections schedule, should be measures not whether transportation activities of the growth of motor vehicle included in the SIP control strategy, and conform to the SIP. One requirement of emissions. Our evaluation and should provide the equivalent of one the rule is that transportation plans, conclusions are as follows: year of RFP. Once triggered, a TIPs, and projects must satisfy a a. The Percentage of PM2.5 Motor contingency measure should take effect regional emissions analysis for the Vehicle Emissions in the Context of the without further action by the State or relevant pollutants and precursors (40 Total SIP Inventory EPA. CFR 93.118, 119). However, section The Libby SIP contains contingency 93.109(m) of this rule states that an area This factor, with regard to PM2.5 measures for residential wood burning, is not required to satisfy a regional emissions, is addressed in two areas of re-entrained dust, and industrial emissions analysis for a pollutant or the SIP revision documentation. Table facilities. If it is determined that precursor if the SIP demonstrates that 27.12.11.4B (‘‘PM2.5 Annual residential wood burning contributes to motor vehicle emissions of that Demonstration of Compliance’’) of the an exceedance of the PM2.5 NAAQS, pollutant or precursor are an Libby attainment plan provides relevant then only biomass pellet fuel burners insignificant contributor to the area’s air information with regard to 2003–2004 may operate within the District. If re- quality problem. In today’s notice, EPA CMB percentages by source category, entrained dust contributes to is proposing to find that motor vehicle percent reduction in emissions due to noncompliance, then the existing emissions of PM2.5 and NOX are control strategies, estimated growth in regulations (which currently only apply insignificant contributors to Libby’s emissions over the 2005 to 2010 time in a limited area) are made applicable to PM2.5 nonattainment problem. If this period, and 2010 compliance year the entire Air Pollution Control District. proposal is finalized, PM2.5 and NOX contributions. The dominant CMB Finally, if an industrial facility motor vehicle emissions budgets source was residential woodstoves at contributes to noncompliance, the (MVEB) would not be established and a 82% with motor vehicle tailpipe Montana Department of Environmental regional emissions analysis would not emissions at 7% of total PM2.5 mass and Quality (MTDEQ) will initiate be required for either PM2.5 or NOX in diesel exhaust at 4% of the total PM2.5 contingency measures to reduce any future conformity determination in mass. emissions. Once a contingency measure Libby. Please note, however, that this The contribution of motor vehicle is initiated, it must remain active until proposed action would not apply to PM2.5 emissions is also documented in the Libby SIP demonstration is revised PM2.5 hot-spot analyses for individual Table 5.1A (‘‘Seasonal PM 2.5 Emissions and resubmitted to EPA for approval. projects, if such an analysis is required in Libby by Source Category’’) of the The contingency measures for in the future for transportation SIP’s TSD. Table 5.1A presents residential wood burning and re- conformity purposes. estimated emissions based on metric entrained dust meet the requirements of There are specific transportation tons and percentage of the inventory for the implementation rule. The conformity provisions that EPA 2005, by season; we have provided these contingency measure for major point proposes to determine as applicable to motor vehicle tailpipe PM2.5 emissions, sources would require further action by the Libby PM2.5 nonattainment area. As as percent of total PM2.5 emissions, in MTDEQ to determine whether provided in more detail in 40 CFR Table V.7–1 below. We note that in additional controls are necessary. 93.109(m), these specific conformity Table 5.1A of the SIP’s TSD, the However, the contingency measures for provisions are addressed when EPA inventory is dominated by woodstove residential wood burning and re- finds that emissions from motor emissions in all four seasons.

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TABLE V.7—1 MOTOR VEHICLE PM2.5 EMISSIONS PERCENTAGE OF TOTAL INVENTORY FOR 2005 (All figures are in metric tons)

Total inventory Motor vehicle Season Motor vehicle emissions % of PM2.5 emissions PM2.5 emissions total

Winter ...... 0.48 80.63 0.59 Spring ...... 0.55 46.43 1.18 Summer ...... 0.66 13.66 4.83 Fall ...... 0.51 97.67 0.52 Total Year ...... 2.2 238.38 0.92

As shown in Table V.7.–1 above, TABLE V.2.–1 vehicle tailpipe emissions contributed 3 motor vehicle tailpipe PM2.5 emissions 1.1 μg/m (7%), and diesel exhaust 3 3 represent an annual average of only PM2.5 annual weighted aver- emissions contributed 0.7 μg/m μg/m Year age (4%). Based on the results of this 0.92% of the total PM2.5 inventory. That (μg/m3) is, motor vehicle emissions are less than modeling Montana based its attainment one percent of the inventory over the 2005 ...... 15.8 strategy for the area on a woodstove course of a year. During the summer, 2006 ...... 15.2 change-out program. motor vehicle emissions make up close 2007 ...... 13.0 The SIP assumes that the woodstove 2008 ...... 12.9 change-out program will reduce those to five percent of the inventory, but 2009 ...... 10.7 emissions by 59% in 2010. The SIP also motor vehicle emissions are only assumes that motor vehicle tailpipe slightly higher during the summer than c. The Absence of SIP Motor Vehicle emissions and diesel exhaust emissions during other seasons. The motor vehicle Control Measures for PM2.5 would grow by 2.1% between 2005 and emissions percentage is much greater 2010, which is equal to the expected during the summer compared with other The Libby PM2.5 attainment plan relies on a 59% reduction in residential population growth rate during that seasons primarily because total PM2.5 woodstove emissions to reach period. The SIP does not account for emissions are significantly reduced attainment of the annual PM NAAQS any reductions in motor vehicle during the summer compared to other 2.5 and took no credit for any emission emissions or diesel exhaust that would seasons; summer is the season with the reductions in the motor vehicle tailpipe occur due to fleet turnover to new lower fewest emissions from woodstoves. The and diesel exhaust categories (e.g. emission motor vehicles, on-road diesel information provided in the State’s Federal tailpipe emission standards and vehicles or off-road equipment. Table submittal supports a conclusion that fleet turnover). The State further 27.12.11.4B in the Libby attainment regional PM2.5 on-road mobile source described these assumptions in sections plan shows that in 2010 the predicted emissions are a minimal percentage in 27.12.7.3 (‘‘Federal Tailpipe Standards annual average PM2.5 concentration μ 3 the context of the total PM2.5 emissions Control Program’’) and 27.12.11.4 would be 8.37 g/m . The table also inventory. Therefore, this factor (‘‘PM2.5 2010 Demonstration of shows that residential wood smoke is supports the proposed finding that on- Compliance’’) of the Libby attainment expected to contribute 5.44 μg/m3 (65%) road PM2.5 emissions are insignificant plan. EPA also notes there is no State or in 2010, motor vehicle tailpipe μ 3 for the Libby PM2.5 nonattainment area. local mandated motor vehicle emission emissions would contribute 1.12 g/m control requirements (e.g., inspection (13%), and diesel exhaust emissions b. The Current State of Air Quality as and maintenance program, fuels, or would contribute 0.71 μg/m3 (8%). As Determined by Monitoring Data for the transportation control measures) for the can be seen, on a percentage basis the PM2.5 NAAQS Libby PM2.5 nonattainment area. contribution of motor vehicle emissions Therefore, this factor supports the and diesel exhaust increases; however, This factor is addressed as shown in proposed finding that on-road PM2.5 overall PM2.5 concentrations are the table below. From the State’s SIP emissions are insignificant for the Libby expected to decrease by 53% to 8.37 μg/ revision and section V.B.2 above, from 3 PM2.5 nonattainment area. m , the contribution of wood smoke 2007 to 2009 the Libby area continues emissions is expected to decrease by to demonstrate attainment of the 1997 d. Historical Trends and Future 59%, and the total contribution of Projections of the Growth of Motor annual PM2.5 NAAQS. Furthermore, the emissions from motor vehicles and Vehicle PM2.5 Emissions trend in annual average concentrations diesel exhaust to PM2.5 mass in 2010 is is downward and coincides with the Libby’s annual PM2.5 2001–2003 expected to increase by only 0.03 μg/m3 implementation of the woodstove design value was 15.9 μg/m3. In between 2005 and 2010. This increase changeout program. This data is based November 2003 through February 2004 in mass is due to the assumptions that on quality-controlled and quality- air quality data was collected in Libby emissions from these sources increase at assured monitoring data from 2005– to support CMB modeling. This CMB the same rate as population growth and 2009 that are available in the EPA AQS. modeling showed that residential wood that no emissions reductions from fleet This factor supports the proposed smoke was the primary source of PM2.5 turnover are included in the finding that on-road PM2.5 emissions are in Libby. Table 27.12.11.4B in the Libby calculations. Both of these are attainment plan shows that, when the insignificant for the Libby PM2.5 conservative assumptions. nonattainment area. results of the CMB modeling are applied EPA notes that the contribution of to the air quality data from 2001–2003, motor vehicle emissions of 13% to PM2.5 residential wood smoke contributed mass in 2010 represents the projected 3 13.0 μg/m (82%) of the 2001–2003 chemical mass balance of PM2.5 and not annual PM2.5 design value, motor an emission inventory projection. The

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SIP includes a base year PM2.5 inventory emissions. We have not performed an filters. EPA, therefore, drew upon other (Table 5.1A) for 2005. That inventory in-depth analysis, but we do note that relevant, available data to evaluate shows that motor vehicle emissions of the monitor is located directly adjacent whether NOX motor vehicle emissions PM2.5 are 2.20 tpy and that total PM2.5 to U.S. Highway 2, the main north/south in the Libby PM2.5 nonattainment area emissions in the base year are 238.39 highway through Libby. Although motor are significant and require that a NOX tpy. Therefore, the motor vehicle vehicle PM2.5 emissions are shown to be motor vehicle emissions budget be emissions in the base year are slightly minimal in the State’s emissions established for transportation less than 1% of the total direct PM2.5 inventory (ref. Table 5.1A: ‘‘Seasonal conformity purposes or whether on-road emissions. On the surface this may seem PM2.5 Emissions in Libby by Source NOX emissions could be found to be in conflict with the results of the Category’’ and Table V.7.-1 above), insignificant based on the criteria in 40 CMB modeling, which shows that motor motor vehicle emissions may have CFR 93.109(m). vehicle exhaust contributed about 7% of shown a greater than anticipated EPA reviewed relevant information the PM mass in the base year. 2.5 contribution on the chemical mass from EPA’s National Emissions However, it should be noted that the balance analysis due to the monitor’s Inventory (NEI) data for 2005 that were chemical mass balance data and the close proximity to Highway 2. used for the 2009 final designations for PM2.5 data collected at the Libby Overall, this factor supports the the 24-hour 2006 PM NAAQS (74 FR Courthouse Annex represents only one proposed finding that on-road PM 2.5 2.5 58688, November 13, 2009).5 However, receptor within the City of Libby, and emissions are insignificant for the Libby since the NEI data were for Lincoln only for the period of late 2003 through PM nonattainment area. In summary, 2.5 County as a whole, we needed to assess early 2004. While this location is all four factors support the proposed how much of the Lincoln County on- believed to be representative of Libby’s finding. After weighing these four road NO inventory could be air quality, numerous factors influence factors described in 40 CFR 93.109(m) X apportioned to the Libby PM the local particulate matter and evaluated above, EPA proposes to 2.5 nonattainment area. Our methodology concentrations and air quality. Local find that on-road PM emissions are 2.5 was to calculate how many vehicle scale meteorology (wind speed, wind insignificant for the Libby PM 2.5 miles traveled (VMT) the Libby PM direction, temperature, relative nonattainment area. We turn to applying 2.5 nonattainment area contributes to humidity, barometric pressure, and the four factors to on-road NO X Lincoln County’s total VMT and to solar radiation at a minimum), traffic emissions. patterns, and precipitation are a few assign that same proportion of the total examples of these factors which vary e. The Percentage of NOX Motor Vehicle Lincoln County on-road NOX emissions throughout the city. Accepting that Emissions in the Context of the Total to the Libby PM2.5 nonattainment area, variable conditions exist throughout SIP Inventory as explained further below. We then Libby, as well as the inherent The Libby attainment plan focuses on needed to determine what percentage this was of total NOX from the Libby uncertainty associated with ambient air directly emitted PM2.5 and controls of PM2.5 nonattainment area. monitoring, the difference that exists PM2.5 emissions from woodstoves and between PM2.5 monitoring data at one does not address any motor vehicle NOX Specific emissions data for Lincoln receptor and a city-wide emission emissions other than to indicate in County, MT, which includes the Libby inventory appears to be plausible. Table 27.12.11.4B ‘‘PM2.5 Annual PM2.5 nonattainment area, are presented We also note that the actual location Demonstration of Compliance’’ that the in Table V.7.–2 below and are from of the monitor may have exposed it to CMB data show that ammonium nitrate EPA’s PM2.5 24-hour 2006 NAAQS final additional influence from motor vehicle was only 5% of the mass found on the designations information.

TABLE V.7.–2—(ALL EMISSION FIGURES ARE IN TONS PER YEAR)

County Major category VOC NOX SO2 NH3 PM2.5 OC EC SO4 NO3 PMFine

Lincoln ...... Fires ...... 6106 310 277 425 2199 1286 219 20 10 664 Lincoln ...... Non-Road ...... 338 2403 169 1 76 16 55 0 0 4 Lincoln ...... On-Road ...... 366 545 15 23 11 3 6 0 0 2 Lincoln ...... Other-Stationary ...... 871 138 74 57 453 108 16 5 1 323 Total ...... 7681 3395 535 506 2738 1412 296 25 11 994

The ‘‘On-Road’’ or motor vehicle, 2005 545 tpy of on-road NOX. To calculate nonattainment area, 54,877,360, came 7 NEI emissions were calculated by EPA the estimated on-road NOX emissions from the MTDEQ. This is 23.73% of for Lincoln County based on a county for the Libby PM2.5 nonattainment area, Lincoln County’s total VMT (i.e., annual total of VMT of 231,246,800. we first needed to determine what 54,877,360 VMT from Libby divided by This VMT figure, which represents data percentage of Lincoln County’s total 231,246,800 VMT from Lincoln County for the entire county, is also referenced VMT is attributed to the Libby PM2.5 as a whole). It is reasonable to assume in our 2006 PM2.5 24-hour NAAQS final nonattainment area. We then applied that the Libby PM2.5 nonattainment area designations information.6 that VMT percentage to the total Lincoln contributes this same percentage of on- Based on the 2005 NEI data County on-road NOX emissions to get road NOX emissions to the total Lincoln referenced above in Table V.7.–2, the estimated on-road NOX emissions County on-road NOX emissions. Lincoln County’s total annual VMT of for the Libby PM2.5 nonattainment area. Therefore, we applied this 23.73% to 231,246,800 results in approximately The total VMT for the Libby PM2.5 the Lincoln County total of 545 tpy of

5 6 7 The 2005 NEI data from EPA’s PM2.5 24-hour See http://www.epa.gov/ttn/naaqs/pm/ VMT data was communicated in a February 26, 2006 NAAQS final designations information are pm25_2006_techinfo.html; Factor 4.B ‘‘Vehicle 2010, email from Jim Carlin of MTDEQ to Tim Russ available at: http://www.epa.gov/ttn/naaqs/pm/ Miles Traveled’’. of EPA Region 8. pm25_2006_techinfo.html.

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on-road motor vehicle NOX emissions, for Lincoln County as a whole, we would be the same as the percentage of which results in approximately 129.33 needed to assess how much of the Lincoln County’s anthropogenic PM2.5 tpy of on-road NOX emissions for the Lincoln County total anthropogenic emissions coming from Libby, as Libby PM2.5 nonattainment area. In lieu NOX could be apportioned to the Libby described below. of other specific data, EPA considers PM2.5 nonattainment area. To do so, we First, we determined the this approach a reasonable estimate of needed to establish what NOX emissions anthropogenic NO emissions for the on-road NO emissions for the Libby X X were from anthropogenic sources in the Lincoln County from the ‘‘Non-Road’’ PM2.5 nonattainment area. Libby PM nonattainment area other Once we had a figure for the number 2.5 and ‘‘Other Stationary’’ source than from on-road motor vehicle of tons of on-road NO emissions from categories. We used the data from Table X tailpipes. To develop these particular Libby, the next step in our analysis was V.7.–2 above and eliminated the to determine what percentage of the emissions figures, we assumed that the ‘‘Fires’’ 8 and ‘‘On-Road’’ emissions percentage of Lincoln County’s total anthropogenic NOX this represents. categories from the Lincoln County 2005 Again, since the NEI data available were anthropogenic NOX coming from Libby NEI data (see Table V.7.-3 below):

TABLE V.7.–3—(ALL EMISSIONS ARE IN TONS PER YEAR)

PM County Major category VOC NOX SO2 NH3 PM2.5 OC EC SO4 NO3 Fine

Lincoln ...... Non-Road ...... 338 2403 169 1 76 16 55 0 0 4 Lincoln ...... Other-Stationary ...... 871 138 74 57 453 108 16 5 1 323 Total ...... 1209 2541 243 58 529 124 71 5 1 327

The total anthropogenic NOX in nonattainment area from the State’s SIP not included from the State’s Table Lincoln County from sources other than emission inventory Table 5.1A, but did 5.1A); see Table V.7.-4 below. on-road is 2541 tpy. not include emissions from fires (i.e., Next, we summed-up the PM2.5 PM2.5 emissions from ‘‘Large Prescribed emissions from the Libby PM2.5 Burning’’ and ‘‘General Burning’’ were

TABLE V.7.–4—LIBBY ANTHROPOGENIC PM2.5 EMISSIONS

(As adapted from Table 5.1A ‘‘Seasonal PM2.5 Emissions in Libby by Source Category’’ of the Libby Attainment SIP Emission Inventory)

Sources Winter Spring Summer Fall

Woodstoves Residential/Com...... 66.65 20.74 5.08 58.76 Paved Roads Fugitive Dust ...... 8.92 2.57 3.23 9.61 Large Prescribed Burning ...... ------General Burning ...... ------Locomotives ...... 2.72 2.72 2.72 2.72 Unpaved Roads Fugitive Dust ...... 1.22 1.34 1.53 1.2 Propane Heating Residential/Com...... 0.13 0.04 0.01 0.11 Oil Heating Residential/Com...... 0.48 0.15 0.04 0.42 Aircraft ...... 0.0 0.03 0.03 0.0 Road & Building Construction Dust ...... 0.02 0.36 0.36 0.36 Motor Vehicle Tailpipe ...... 0.48 0.55 0.66 0.51 Total (Metric Tons) ...... 80.62 28.50 13.66 73.69 Total Short Tons (2000 lbs. per ton) ...... 88.88 31.42 15.06 81.24

Total Annual Anthropogenic Short Tons of PM2.5 Emissions = 216.60 tons.

Based on the data in Table V.7.-4 from ‘‘Non-Road’’ and ‘‘Other Stationary’’ sources’ NOX emissions as 1028.6 tpy. above, the total annual anthropogenic anthropogenic sources is approximately Therefore, the total estimated annual short tons of PM2.5 emissions (without 40.48%. anthropogenic NOX emissions from all including emissions from the ‘‘Motor We then added Lincoln County NOX of these source categories are estimated Vehicle Tailpipe’’ category) from ‘‘Non- emissions from the ‘‘Non-Road’’ and to be 1157.93 tpy for the Libby PM2.5 Road’’ and ‘‘Other Stationary’’ sources in ‘‘Other Stationary’’ sources categories, nonattainment area. The approximate the Libby PM2.5 nonattainment area are 2541 tpy (see Table V.7–3 above), and contribution of annual on-road NOX estimated as 214.17 tons per year. attributed 40.48% of those emissions to motor vehicle emissions (129.33 tpy) to The Libby PM2.5 nonattainment area’s the Libby PM2.5 nonattainment area’s the total estimated NOX annual annual emissions of PM2.5 from ‘‘Non- NOX ‘‘Non-Road’’ and ‘‘Other Stationary’’ anthropogenic emissions from all Road’’ and ‘‘Other Stationary’’ sources categories, which results in sources (1157.93 tpy) in the Libby PM2.5 anthropogenic sources is 214.17 tpy, 1028.6 tpy. To summarize, EPA nonattainment area is 11.17% of the whereas these sources emit 529 tpy for estimated the Libby PM2.5 total inventory. Lincoln County as a whole (see Table nonattainment area’s on-road NOX EPA indicated in its July 1, 2004 V.7.-3 above). Therefore, Libby’s share motor vehicle emissions as 129.33 tpy, Transportation Conformity final rule (69 of Lincoln County’s PM2.5 emissions and the non-road and other stationary FR 40004) that mobile source emissions

8 The ‘‘Fires’’ category of the 2005 NEI relates to correlates to the ‘‘Large Prescribed Burning’’ and ‘‘General Burning’’ categories in the State’s Table wildfires, prescribed burns and such. This 5.1A.

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of approximately 10% may be certain circumstances relating to the overall f. The Current State of Air Quality as considered insignificant, but did not composition of the air quality situation. In Determined by Monitoring Data for make 10% a specific threshold. While general, the percentage of motor vehicle PM2.5 NAAQS emissions in the area’s total inventory is an the 11.7% figure calculated for on-road This factor is addressed with the NOX in the Libby PM2.5 nonattainment important criterion for determining whether motor vehicles are a significant or ambient PM2.5 air quality data presented area is slightly greater than this, in this in section V.7.B above which same rulemaking EPA explained: insignificant contributor to an area’s air quality problem, yet there are other criteria demonstrate the Libby PM2.5 ‘‘This example also illustrates the reason that EPA will examine when making this nonattainment area is attaining the EPA believes it is important to have finding, as described in the regulatory text for PM2.5 annual NAAQS. Additional data, flexibility in implementing this provision. § 93.109(k).’’ (69 FR 40062) 9 relevant to NOX or in this case nitrates Although the commenter specifically 10 derived from NOX emissions, were mentions 10% as the threshold for finding As stated in the 2004 preamble, 10 provided by EPA with the 2009 final motor vehicle emissions insignificant, EPA percent is a guideline only. As designations for the 24-hour 2006 PM2.5 clarifies that this figure is a general guideline described below, EPA considered other only. Depending on the circumstances, we NAAQS. This information, as provided factors that lead EPA to propose that in Table V.7–5 below, is from EPA’s may find that motor vehicle emissions that motor vehicle emissions of NO are an make up less than 10% of an area’s total X PM2.5 24-hour 2006 NAAQS final inventory are still significant. Conversely, we insignificant regional contributor to the designations and is located at: http:// may also find that motor vehicle emissions PM2.5 nonattainment problem. www.epa.gov/ttn/naaqs/pm/pm25_2006 in excess of 10% are still insignificant, under _techinfo.html.

TABLE V.7–5—PM2.5 COMPOSITION DATA FOR LIBBY, MT

Nitrate Carbon Crustal Total Nitrate Carbon Area/County/State PM composition data Sulfate 2.5 (μmg/m3) (μmg/m3) (μmg/m3) (μmg/m3) (μmg/m3) percent percent

Libby/Lincoln/MT ...... Total Concentration (Cold) ...... 1.4 0.8 41.9 0.3 44.4 2 94 Regional Concentration (Cold) 0.9 0.4 2.4 0.2 3.9 10 62 Urban Concentration (Cold) .... 0.5 0.4 39.5 0.1 40.5 1 98 Total Concentration (Warm).... 1.2 0.0 6.7 0.8 8.7 0 77 Regional Concentration 1.0 0.0 2.5 1.1 4.6 0 54 (Warm). Urban Concentration (Warm).. 0.2 0.0 4.2 0.0 4.4 0 95 Total Concentration (Annual 1.0 0.1 12.8 0.4 14.3 1 90 Average).

As can be seen in Table V.7–5 above, maintenance program, fuels, or emissions by 2.1% (the population nitrates (as derived from NOX) are a very transportation control measures) for the growth rate) from the 2005 base year small component of the PM2.5 Libby PM2.5 nonattainment area. inventory, and not taking any credit for composition found in the Libby PM2.5 Therefore this factor supports the potential emission reductions that may nonattainment area. Therefore, NOX as proposed finding that on-road NOX have been available from fleet turnover derived from motor vehicle tailpipe emissions are insignificant for the Libby and the Federal tailpipe standards for emissions also is a very small PM2.5 nonattainment area. vehicles. In addition, as we noted above, component. This factor thus supports h. Historical Trends and Future there are no State or local mandated the proposed finding that on-road NO X Projections of the Growth of NO Motor motor vehicle emission control emissions are insignificant for the Libby X Vehicle Emissions requirements (e.g., inspection and PM2.5 nonattainment area. maintenance program) for the Libby As noted in our discussion in section g. The Absence of SIP Motor Vehicle PM2.5 nonattainment area. V.7.D above, the Libby attainment plan This factor supports the proposed Control Measures for NOX uses a 59% reduction in residential finding that on-road NOX emissions are As discussed in section V.7.C above, woodstove emissions to reach insignificant for the Libby PM2.5 the Libby PM2.5 attainment plan took no attainment of the annual PM2.5 NAAQS nonattainment area. After weighing credit for any emission reductions in the and took no credit for any emission these four factors described in 40 CFR motor vehicle tailpipe and diesel reductions in the motor vehicle tailpipe 93.109(m) and evaluated above, EPA exhaust categories (e.g. Federal tailpipe and diesel exhaust categories. The State proposes to find that on-road NOx emission standards and fleet turnover). further described these assumptions in emissions are insignificant for the Libby The State further described these sections 27.12.7.3 (‘‘Federal Tailpipe PM2.5 nonattainment area. assumptions in sections 27.12.7.3 Standards Control Program’’) and i. Conclusion (‘‘Federal Tailpipe Standards Control 27.12.11.4 (‘‘PM2.5 2010 Demonstration Program’’) and 27.12.11.4 (‘‘PM2.5 2010 of Compliance’’) of the Libby attainment In view of our evaluation presented Demonstration of Compliance’’) of the plan. EPA notes that the State used a above per 40 CFR 93.109(m), EPA is Libby attainment plan. EPA also notes conservative emission inventory proposing to find that direct PM2.5 and there is no State or local mandated approach for projecting the 2010 NOX motor vehicle emissions are an motor vehicle emission control attainment year future growth which insignificant contributor to the air requirements (e.g., inspection and involved merely increasing the vehicle quality issues associated with the PM2.5

9 EPA redesignated the insignificance provision of 10 Nitrogen oxides react in the atmosphere to form the transportation conformity rule from 40 CFR nitrates. For our purposes, the impact of NOX 93.109(k) to 40 CFR 93.109(m) in its March 24, 2010 emissions is measured as the amount of nitrates ‘‘PM Amendments’’ final rule (75 FR 14260). found at the PM2.5 monitor.

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annual NAAQS in the Libby PM2.5 a serious inconsistency or otherwise EPA generally must prepare a written nonattainment area; thus, motor vehicle interfere with an action taken or statement, including a cost-benefit emission budgets for on-road direct planned by another agency; (3) analysis, for proposed and final rules PM2.5 and NOX would not be established materially alter the budgetary impact of with ‘‘Federal mandates’’ that may result by this rulemaking. Based on our entitlements, grants, user fees, or loan in expenditures to state, local, and tribal evaluation of the four factors described programs or the rights and obligations of governments, in the aggregate, or to the in 93.109(m), EPA proposes to conclude recipients thereof; or (4) raise novel private sector, of $100 million or more that it would be unreasonable to expect legal or policy issues arising out of legal in any one year. Before promulgating an that the Libby PM2.5 nonattainment area mandates, the President’s priorities, or EPA rule for which a written statement would experience enough motor vehicle the principles set forth in the Executive is needed, section 205 of the UMRA emissions growth such that a PM2.5 Order.’’ The OMB has exempted this generally requires EPA to identify and annual NAAQS violation would occur. regulatory action from Executive Order consider a reasonable number of 12866 review. regulatory alternatives and adopt the VI. Proposed Action least costly, most cost-effective or least B. Paperwork Reduction Act The EPA has reviewed Montana’s SIP burdensome alternative that achieves revision for attaining the 15μg/m3 This action does not impose an the objectives of the rule. The annual PM2.5 NAAQS for the Libby information collection burden under the provisions of section 205 do not apply PM2.5 nonattainment area. EPA is provisions of the Paperwork Reduction when they are inconsistent with proposing to approve the State of Act, 44 U.S.C. 3501 et seq. This action applicable law. Moreover, section 205 Montana’s revisions to the Lincoln proposes to approve the SIP revisions allows EPA to adopt an alternative other County Air Pollution Control Program to submitted by the State of Montana. than the least costly, most cost-effective be included in Montana’s SIP, C. Regulatory Flexibility Act or least burdensome alternative if the submitted on June 26, 2006, and the Administrator publishes with the final The Regulatory Flexibility Act (RFA) Libby PM2.5 attainment plan, submitted rule an explanation why that alternative on March 26, 2008. Action was not generally requires an agency to prepare was not adopted. Before EPA establishes taken earlier on the June 26, 2006, a regulatory flexibility analysis of any any regulatory requirements that may submittal at the request of the State of rule subject to notice and comment significantly or uniquely affect small Montana to delay action until the rulemaking requirements under the governments, including tribal Administrative Procedure Act or any submittal of the Libby PM2.5 attainment governments, it must have developed plan at a later date. EPA has determined other statute unless the agency certifies under section 203 of the UMRA a small that the SIP meets applicable that the rule will not have a significant government agency plan. The plan must requirements of the CAA, as described economic impact on a substantial provide for notifying potentially in the Clean Air Fine Particle number of small entities. Small entities affected small governments, enabling Implementation Rule. Specifically, EPA include small businesses, small officials of affected small governments has determined that Montana’s SIP organizations, and small governmental to have meaningful and timely input in includes an attainment demonstration jurisdictions. the development of EPA regulatory This proposed rule will not have a and adopted state regulations and proposals with significant Federal significant impact on a substantial programs needed to support the intergovernmental mandates, and number of small entities because SIP determination that the Libby PM informing, educating, and advising 2.5 approvals and disapprovals under nonattainment area will continue small governments on compliance with section 110 and subchapter I, part D of attaining the annual PM NAAQS. the regulatory requirements. 2.5 the Clean Air Act do not create any new Finally, EPA is proposing to find on- EPA has determined that this rule requirements, but simply approve or road, directly emitted PM and NO in does not contain a Federal mandate that 2.5 X disapprove requirements that the state is the Libby, Montana nonattainment area may result in expenditures of $100 already imposing. Therefore because the insignificant for regional transportation million or more for state, local, and Federal SIP approval does not create conformity purposes. tribal governments, in the aggregate, or any new requirements, I certify that this the private sector in any one year. This VII. Statutory and Executive Order action will not have a significant Federal action proposes to partially Reviews economic impact on a substantial approve and partially disapprove pre- number of small entities. Moreover, due A. Executive Order 12866, Regulatory existing requirements under state or to the nature of the Federal-state Planning and Review local law, and to disapprove a relationship under the Clean Air Act, redesignation request, and imposes no Under Executive Order 12866, (58 FR preparation of flexibility analysis would new requirements. Accordingly, no 51735 (October 4, 1993)) the Agency constitute Federal inquiry into the additional costs to state, local, or tribal must determine whether the regulatory economic reasonableness of state action. governments, or to the private sector, action is ‘‘significant’’ and therefore The Clean Air Act forbids EPA to base result from this action. Thus, today’s subject to the Office of Management and its actions concerning SIPs on such rule is not subject to the requirements Budget (OMB) review and the grounds. Union Electric Co., v. U.S. of sections 202 and 205 of the UMRA. requirements of the Executive Order. EPA, 427 U.S. 246, 255–66 (1976); 42 E. Executive Order 13132, Federalism The Order defines ‘‘significant U.S.C. 7410(a)(2). regulatory action’’ as one that is likely to Executive Order 13132, entitled result in a rule that may: (1) Have an D. Unfunded Mandates Reform Act ‘‘Federalism’’ (64 FR 43255, August 10, annual effect on the economy of $100 Title II of the Unfunded Mandates 1999), requires EPA to develop an million or more or adversely affect in a Reform Act of 1995 (UMRA), Public accountable process to ensure material way the economy, a sector of Law 104–4, establishes requirements for ‘‘meaningful and timely input by state the economy, productivity, competition, Federal agencies to assess the effects of and local officials in the development of jobs, the environment, public health or their regulatory actions on state, local, regulatory policies that have federalism safety, or state, local, or tribal and tribal governments and the private implications.’’ ‘‘Policies that have governments or communities; (2) create sector. Under section 202 of the UMRA, federalism implications’’ is defined in

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the Executive Order to include and reasonably feasible alternatives ENVIRONMENTAL PROTECTION regulations that have ‘‘substantial direct considered by the Agency. AGENCY effects on the states, on the relationship EPA interprets Executive Order 13045 40 CFR Part 52 between the national government and as applying only to those regulatory the states, or on the distribution of actions that are based on health or safety [EPA–R05–OAR–2010–0210; FRL–9201–3] power and responsibilities among the risks, such that the analysis required various levels of government.’’ Approval and Promulgation of Air This proposed rule does not have under section 5–501 of the Order has the potential to influence the regulation. Quality Implementation Plans; Indiana; federalism implications. It will not have Kentucky; Louisville Nonattainment substantial direct effects on the states, This proposed rule is not subject to Executive Order 13045 because it Area; Determination of Attainment of on the relationship between the national the Fine Particle Standard government and the states, or on the proposes to approve a state rule distribution of power and implementing a Federal program. AGENCY: Environmental Protection responsibilities among the various H. Executive Order 13211, Actions That Agency (EPA). levels of government, as specified in ACTION: Proposed rule. Executive Order 13132. This rule merely Significantly Affect Energy Supply, Distribution, or Use proposes to partially approve and SUMMARY: EPA is proposing to partially disapprove state rules This rule is not subject to Executive determine that the bi-state Louisville implementing a Federal standard, and to Order 13211, Actions Concerning (Indiana and Kentucky) fine particle disapprove a redesignation request, and Regulations That Significantly Affect (PM2.5) nonattainment area has attained does not alter the relationship or the Energy Supply, Distribution, or Use (66 the 1997 annual average PM2.5 National distribution of power and Ambient Air Quality Standard FR 28355, May 22, 2001) because it is responsibilities established in the Clean (NAAQS). This proposed determination not a significant regulatory action under Air Act. Thus, Executive Order 13132 is based upon complete, quality- Executive Order 12866. does not apply to this rule. assured, and certified ambient air F. Executive Order 13175, Coordination I. National Technology Transfer and monitoring data for the 2007–2009 With Indian Tribal Governments Advancement Act period showing that the area has monitored attainment of the annual Executive Order 13175, entitled Section 12(d) of the National PM2.5 NAAQS. If EPA finalizes this Consultation and Coordination With Technology Transfer and Advancement proposed determination, the Indian Tribal Governments (65 FR Act of 1995 (‘‘NTTAA’’), Public Law requirements for the area to submit an 67249, November 9, 2000), requires EPA 104–113, section 12(d) (15 U.S.C. 272 attainment demonstration and to develop an accountable process to note) directs EPA to use voluntary associated reasonably available control ensure meaningful and timely input by consensus standards in its regulatory measures (RACM), a reasonable further tribal officials in the development of activities unless to do so would be progress (RFP) plan, contingency regulatory policies that have tribal inconsistent with applicable law or measures, and other planning State implications. This proposed rule does Implementation Plan (SIP) revisions not have tribal implications, as specified otherwise impractical. Voluntary consensus standards are technical related to attainment of the standard in Executive Order 13175. It will not shall be suspended for so long as the have substantial direct effects on tribal standards (e.g., materials specifications, test methods, sampling procedures, and area continues to attain the annual PM2.5 governments, on the relationship NAAQS. between the Federal government and business practices) that are developed or Indian tribes, or on the distribution of adopted by voluntary consensus DATES: Comments must be received on power and responsibilities between the standards bodies. The NTTAA directs or before October 14, 2010. Federal government and Indian tribes. EPA to provide Congress, through OMB, ADDRESSES: Submit your comments This action does not involve or impose explanations when the Agency decides regarding the Indiana portion of the bi- any requirements that affect Indian not to use available and applicable state Louisville area, identified by Tribes. Thus, Executive Order 13175 voluntary consensus standards. Docket ID No. EPA–R05–OAR–2010– 0210, by one of the following methods: does not apply to this rule. This proposed rulemaking does not 1. http://www.regulations.gov: Follow G. Executive Order 13045, Protection of involve technical standards. Therefore, the on-line instructions for submitting Children From Environmental Health EPA is not considering the use of any comments. Risks and Safety Risks voluntary consensus standards. 2. E-mail: [email protected]. Protection of Children From List of Subjects in 40 CFR Part 52 3. Fax: (312) 692–2054. Environmental Health Risks and Safety 4. Mail: Jay Bortzer, Chief, Air Risks (62 FR 19885, April 23, 1997), Environmental protection, Air Programs Branch (AR–18J), U.S. applies to any rule that: (1) Is pollution control, Intergovernmental Environmental Protection Agency, 77 determined to be economically relations, Oxides of nitrogen, Particulate West Jackson Boulevard, Chicago, significant as defined under Executive matter, Reporting and recordkeeping Illinois 60604. Order 12866, and (2) concerns an requirements. 5. Hand Delivery: Jay Bortzer, Chief, environmental health or safety risk that Air Programs Branch (AR–18J), U.S. Authority: 42 U.S.C. 7401 et seq. EPA has reason to believe may have a Environmental Protection Agency, 77 disproportionate effect on children. If Dated: September 2, 2010. West Jackson Boulevard, Chicago, the regulatory action meets both criteria, Stephen S. Tuber, Illinois 60604. Such deliveries are only the Agency must evaluate the Acting Regional Administrator, Region 8. accepted during the Regional Office environmental health or safety effects of [FR Doc. 2010–22848 Filed 9–13–10; 8:45 am] normal hours of operation, and special the planned rule on children, and arrangements should be made for BILLING CODE 6560–50–P explain why the planned regulation is deliveries of boxed information. The preferable to other potentially effective Regional Office official hours of

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business are Monday through Friday, technical difficulties and cannot contact ambient air monitoring data for the 8:30 a.m. to 4:30 p.m., excluding you for clarification, EPA may not be 2007–2009 monitoring period that show Federal holidays. able to consider your comment. that the area has monitored attainment Submit your comments regarding the Electronic files should avoid the use of of the 1997 annual PM2.5 NAAQS. Kentucky portion of the bi-state special characters, any form of II. What is the background for this Louisville area, identified by Docket ID encryption, and be free of any defects or action? No. EPA–R05–OAR–2010–0210, by one viruses. of the following methods: Docket: All documents in the docket On July 18, 1997 (62 FR 36852), EPA 1. http://www.regulations.gov: Follow are listed in the www.regulations.gov established an annual PM2.5 NAAQS at the on-line instructions for submitting index. Although listed in the index, 15.0 micrograms per cubic meter (μg/ comments. some information is not publicly m3) based on a three-year average of 2. E-mail: [email protected]. available, e.g., CBI or other information annual mean PM2.5 concentrations. At 3. Fax: (404) 562–9040. whose disclosure is restricted by statute. that time, EPA also established a 24- 4. Mail: EPA–R05–OAR–2010–0210, Certain other material, such as hour standard of 65 μg/m3 (today’s Regulatory Development Section, Air copyrighted material, will be publicly action does not address the 24-hour Planning Branch, Air, Pesticides and available only in hard copy. Publicly standard). See 40 CFR 50.7. On January Toxics Management Division, U.S. available docket materials are available 5, 2005 (70 FR 944), EPA published its Environmental Protection Agency, either electronically in air quality designations and Region 4, 61 Forsyth Street, SW., www.regulations.gov or in hard copy at classifications for the 1997 PM2.5 Atlanta, Georgia 30303–8960. the Environmental Protection Agency, NAAQS based upon air quality 5. Hand Delivery: Lynorae Benjamin, Region 5, Air and Radiation Division, 77 monitoring data from those monitors for Regulatory Development Section, Air West Jackson Boulevard, Chicago, calendar years 2001–2003. These Planning Branch, Air, Pesticides and Illinois 60604. This Facility is open designations became effective on April Toxics Management Division, U.S. from 8:30 a.m. to 4:30 p.m., Monday 5, 2005. The Louisville area was Environmental Protection Agency, through Friday, excluding Federal designated nonattainment for the 1997 Region 4, 61 Forsyth Street, SW., holidays. We recommend that you PM2.5 NAAQS. See 40 CFR 81.315 Atlanta, Georgia 30303–8960. Such telephone Melissa M. Barnhart by phone (Indiana) and 40 CFR 81.318 deliveries are only accepted during the at (312) 353–8641 or by e-mail at (Kentucky). Regional Office normal hours of [email protected] before On October 17, 2006 (71 FR 61144), operation, and special arrangements visiting the Region 5 office. EPA retained the 1997 annual PM2.5 should be made for deliveries of boxed NAAQS at 15.0 μg/m3 based on a three- FOR FURTHER INFORMATION CONTACT: information. The Regional Office official year average of annual mean PM Melissa M. Barnhart, Environmental 2.5 hours of business are Monday through concentrations, and promulgated a 24- Scientist, Control Strategies Section, Air Friday, 8:30 a.m. to 4:30 p.m., excluding hour standard of 35 μg/m3 based on a Programs Branch (AR–18J), Federal holidays. three-year average of the 98th percentile Environmental Protection Agency, Instructions: Direct your comments to of 24-hour concentrations. On Region 5, 77 West Jackson Boulevard, Docket ID No. EPA–R05–OAR–2010– November 13, 2009, EPA designated the Chicago, Illinois 60604, (312) 353–8641, 0210. EPA’s policy is that all comments Louisville area as attainment for the [email protected]. In Region 4, received will be included in the public 2006 24-hour standard (74 FR 58688). In contact Joel Huey, Environmental docket without change and may be that action, EPA also clarified the made available online at http:// Scientist, Regulatory Development designations for the NAAQS www.regulations.gov, including any Section, Air Planning Branch, Air, promulgated in 1997, stating that the personal information provided, unless Pesticides and Toxics Management Louisville area was designated as the comment includes information Division, U.S. Environmental Protection nonattainment for the annual standard claimed to be Confidential Business Agency, Region 4, 61 Forsyth Street, but attainment for the 24-hour standard. Information (CBI) or other information SW., Atlanta, Georgia 30303–8960, (404) Thus, today’s action does not address whose disclosure is restricted by statute. 562–9104, [email protected]. attainment of either the 1997 or the Do not submit information that you SUPPLEMENTARY INFORMATION: 2006 24-hour standard. consider to be CBI or otherwise Throughout this document whenever In response to legal challenges of the protected through http:// ‘‘we,’’ ‘‘us,’’ or ‘‘our’’ is used, we mean annual standard promulgated in 2006, www.regulations.gov or e-mail. The EPA. the U.S. Court of Appeals for the District www.regulations.gov Web site is an This supplementary information of Columbia Circuit (D.C. Circuit) anonymous access system, which means section is arranged as follows: remanded this standard to EPA for EPA will not know your identity or I. What action is EPA taking? further consideration. See American contact information unless you provide II. What is the background for this action? Farm Bureau Federation and National it in the body of your comment. If you III. Does the Louisville area meet the annual Pork Producers Council, et al. v. EPA, send an e-mail comment directly to EPA PM2.5 standard? 559 F.3d 512 (D.C. Cir. 2009). However, without going through A. Criteria B. Louisville Area Air Quality given that the 1997 and 2006 annual www.regulations.gov your e-mail IV. What is the effect of this action? standards are essentially identical, address will be automatically captured V. Statutory and Executive Order Reviews attainment of the 1997 annual standard and included as part of the comment would also indicate attainment of the that is placed in the public docket and I. What action is EPA taking? remanded 2006 annual standard. made available on the Internet. If you EPA is proposing to determine that On April 25, 2007 (72 FR 20664), EPA submit an electronic comment, EPA the Louisville PM2.5 annual standard promulgated its PM2.5 implementation recommends that you include your nonattainment area (which consists of rule, codified at 40 CFR part 51, subpart name and other contact information in portions in both Indiana and Kentucky) Z, in which the Agency provided the body of your comment and with any has attained the 1997 annual PM2.5 guidance for state and tribal plans to disk or CD–ROM you submit. If EPA NAAQS. The proposal is based upon implement the 1997 PM2.5 standards. cannot read your comment due to complete, quality-assured, and certified This rule, at 40 CFR 51.1004(c),

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specifies some of the regulatory Kentucky portion of this area is defined certified, and recorded in EPA’s Air consequences of attaining the standard, at 40 CFR 81.318, and includes Bullitt Quality System database. This review as discussed below. and Jefferson Counties. addresses air quality data collected in Under EPA regulations at 40 CFR the three-year period from 2007 to 2009. III. Does the Louisville area meet the 50.7, the annual primary and secondary The following table provides the annual PM2.5 standard? PM2.5 standards are met when the annual average concentrations averaged A. Criteria annual arithmetic mean concentration, over 2007 to 2009 at all sites in the as determined in accordance with 40 Louisville area with at least 75 percent Today’s rulemaking assesses whether CFR part 50, Appendix N, is less than complete data in each quarter for each the Louisville PM2.5 nonattainment area or equal to 15.0 μg/m3 at all relevant of those three years, including sites in is attaining the 1997 annual PM2.5 monitoring sites in the subject area. both Indiana and Kentucky. The highest NAAQS. The Louisville nonattainment three-year average annual concentration area includes certain counties in B. Louisville Area Air Quality for 2007 to 2009 on this table is Indiana and in Kentucky. The Indiana EPA has reviewed the ambient air recorded at site 18–019–0006, recording portion of this area is defined at 40 CFR monitoring data for the Louisville area a three-year average annual 81.315, and comprises Clark and Floyd in accordance with the provisions of 40 concentration of 14.6 μg/m3. All sites in Counties and a portion of Jefferson CFR part 50, Appendix N. All data the area have three-year average annual 3 County (Madison Township). The considered have been quality-assured, PM2.5 concentrations below 15.0 μg/m .

Annual average Site name County Site No. concentration (μg/m3)

Jeffersonville ...... Clark, IN ...... 18–019–0006 14.6 New Albany ...... Floyd, IN ...... 18–043–1004 13.1 Shepherdsville ...... Bullitt, KY ...... 21–029–0006 13.0 Wyandotte Park ...... Jefferson, KY ...... 21–111–0044 13.5 37th & Southern ...... Jefferson, KY ...... 21–111–0043 13.4 Watson Elementary ...... Jefferson, KY ...... 21–111–0051 13.0

In addition to the sites listed in the Louisville area is now meeting the that the Louisville area has attained the table above, three sites, Barret Avenue, annual PM2.5 NAAQS. 1997 annual PM2.5 NAAQS. Cannons Lane, and Indiana Armory, did Following discontinuation of the EPA is soliciting public comments on not operate for the entire three-year Barret Avenue site, two new sites began its proposal to determine that the period from 2007 to 2009, either operation. The Indiana Armory site (site Louisville area has attained the 1997 because the site ended operation before number 18–019–0008) began operation annual PM2.5 NAAQS. the end of that period or because the site in the third quarter of 2008, and the IV. What is the effect of this action? began operation after the beginning of Cannons Lane site (site number 21–111– that period. 0067) began operation at the beginning If this proposed determination is made final, the requirements for the The first of these three sites, Barret of 2009. These two sites started Louisville PM nonattainment area to Avenue (site number 21–111–0048), operation after 2007 and thus have not 2.5 1 submit an attainment demonstration ended operation at the end of 2008. yet collected three years of data. and associated RACM, a RFP plan, Thus, the most recent three-year period Nevertheless, EPA examined the data at contingency measures, and any other of data for this site is 2006 to 2008. For these sites to consider whether these planning SIPs related to attainment of this period, the Barret Avenue site data are consistent with the findings the 1997 annual PM NAAQS would monitored an average annual discussed above that were derived for 2.5 μ 3 be suspended for so long as the area concentration of 14.1 g/m , reflecting sites with a complete three-year set of continues to attain the PM NAAQS. attainment of the standard. The Barret data for the 2007–2009 period. 2.5 Avenue site has not historically See 40 CFR 51.1004(c). Notably, as An examination of data from these monitored the highest concentrations in described below, any such two sites (as well as an examination of the area. In addition, the other sites in determination would not be equivalent data at the Barret Avenue site) is the area, which have continued to to the redesignation of the area to provided in a memorandum (available operate, are currently attaining the attainment for the annual PM2.5 in the docket for this proposed standard and are showing decreased NAAQS. rulemaking) dated June 22, 2010. The concentrations. Thus, EPA believes that If this proposed rulemaking is Indiana Armory site monitored an the standard was and continues to be finalized and EPA subsequently average concentration in the second half determines, after notice-and-comment attained at this site. μ 3 More generally, EPA believes that the of 2008 of 13.4 g/m , and an annual rulemaking in the Federal Register, that Louisville area has a sufficient network average concentration in 2009 of 10.8 the area has violated the annual PM2.5 μ 3 of sites collecting complete data g/m . The Cannons Lane site for 2009 NAAQS, the basis for the suspension of showing attainment to conclude that the monitored an annual average the specific requirements would no concentration of 11.7 μg/m3. All of these longer exist for the Louisville 1 In letters dated November 4, 2008, and January values are below the standard. nonattainment area, and the area would 28, 2009, to the Louisville Metro Air Pollution Since few data are available for 2010, thereafter have to address the applicable Control District, EPA approved the District’s request the 2007 to 2009 data represent the most requirements. See 40 CFR 51.1004(c). to terminate the operation of the Barret Avenue monitor for safety reasons, and to establish a new recent available data for EPA to use in Finalizing this proposed action would monitor starting operation January 1, 2009, at the its assessment. On the basis of this not constitute a redesignation of the area Cannons Lane site, approximately 4 miles away. review, EPA is proposing to determine to attainment of the annual PM2.5

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NAAQS under section 107(d)(3) of the Federal Government and Indian tribes, ENVIRONMENTAL PROTECTION Clean Air Act (CAA). Further, finalizing as specified by Executive Order 13175 AGENCY this proposed action does not involve (65 FR 67249, November 9, 2000). This approving maintenance plans for the proposed action also does not have 40 CFR Part 799 area as required under section 175A of Federalism implications because it does [EPA–HQ–OPPT–2009–0555; FRL–8428–8] the CAA, nor would it find that the area not have substantial direct effects on the has met all other requirements for States, on the relationship between the RIN 2070–AB79 and RIN 2070–AC76 redesignation. Even if EPA finalizes the national government and the States, or proposed action, the designation status on the distribution of power and Withdrawal of Proposed Rules; of the Louisville area would remain responsibilities among the various Discontinuing Rulemaking Efforts nonattainment for the 1997 annual levels of government, as specified in Listed in the Unified Agenda of Federal Regulatory and Deregulatory Actions PM2.5 NAAQS until such time as EPA Executive Order 13132 (64 FR 43255, determines that the area meets the CAA August 10, 1999), because it merely AGENCY: Environmental Protection requirements for redesignation to proposes to make a determination based Agency (EPA). attainment and takes action to on air quality data and would, if ACTION: Proposed rules; withdrawals. redesignate the area. finalized, result in the suspension of This action is only a proposed certain Federal requirements, and does SUMMARY: EPA is withdrawing two determination that the Louisville area not alter the relationship or the proposed rules for which the Agency no has attained the 1997 annual PM2.5 distribution of power and longer intends to issue a final rule. This NAAQS. Today’s action does not responsibilities established in the CAA. document identifies the proposed rules address the 24-hour PM2.5 NAAQS. This proposed rule also is not subject to and explains the Agency’s decision not If the Louisville area continues to Executive Order 13045 ‘‘Protection of to pursue a final rulemaking at this monitor attainment of the annual PM2.5 Children from Environmental Health time. This withdrawal of these proposed NAAQS, the requirements for the Risks’’ (62 FR 19885, April 23, 1997) rules does not preclude the Agency from Louisville area to submit an attainment because it proposes to determine that air initiating the same or similar demonstration and associated RACM, a quality in the affected area is meeting rulemaking at a future date. It does, RFP plan, contingency measures, and Federal standards. however, close out the entry for these any other planning SIPs related to The requirements of 12(d) of the proposed rules in the EPA Semi-Annual attainment of the annual PM2.5 NAAQS National Technology Transfer and Regulatory Agenda, published as part of will remain suspended. Advancement Act of 1995 (15 U.S.C. the Unified Agenda of Federal V. Statutory and Executive Order 272 note) do not apply because it would Regulatory and Deregulatory Actions Reviews be inconsistent with applicable law for (Unified Agenda). Should the Agency EPA, when determining the attainment decide at some future date to initiate the Under Executive Order 12866 (58 FR status of an area, to use voluntary 51735, October 4, 1993), this proposed same or similar rulemaking, it will add consensus standards in place of an appropriate new entry to the EPA action is not a ‘‘significant regulatory promulgated air quality standards and action’’ and therefore is not subject to Semi-Annual Regulatory Agenda to monitoring procedures to otherwise reflect the initiation of the action. review by the Office of Management and satisfy the provisions of the CAA. This ADDRESSES: Budget. For this reason, this action is proposed rule does not impose an EPA has established a not subject to Executive Order 13211, information collection burden under the docket for this action under docket ‘‘Actions Concerning Regulations That provisions of the Paper Reduction Act of identification (ID) number EPA–HQ– Significantly Affect Energy Supply, 1995 (44 U.S.C. 3501 et seq.). OPPT–2009–0555. All documents in the Distribution, or Use’’ (66 FR 28355, May Under Executive Order 12898, EPA docket are listed in the docket index 22, 2001). This action proposes to make finds that this rule, pertaining to the available at http://www.regulations.gov. a determination based on air quality determination of attainment of the fine Although listed in the docket index, data and would, if finalized, result in particle standard for the bi-state some information is not publicly the suspension of certain Federal Louisville (Indiana and Kentucky) area, available, e.g., Confidential Business requirements. Accordingly, the involves proposed determinations of Information (CBI) or other information Administrator certifies that this rule attainment based on air quality data and whose disclosure is restricted by statute. will not have a significant economic will not have disproportionately high Certain other material, such as impact on a substantial number of small and adverse human health or copyrighted material, is not placed on entities under the Regulatory Flexibility environmental effects on any the Internet and will be publicly Act (5 U.S.C 601 et seq.). Because this communities in the area, including available only in hard copy form. rule proposes to make a determination minority and low-income communities. Publicly available docket materials are based on air quality data, and would, if available in the electronic docket at finalized, result in the suspension of List of Subjects in 40 CFR Part 52 http://www.regulations.gov, or, if only certain Federal requirements, it does not Environmental protection, Air available in hard copy, at the OPPT contain any unfunded mandate or pollution control, Particulate matter, Docket. The OPPT Docket is located in significantly or uniquely affect small Intergovernmental relations, Reporting the EPA Docket Center (EPA/DC) at Rm. governments, as described in the and recordkeeping requirements. 3334, EPA West Bldg., 1301 Unfunded Mandates Reform Act of 1995 Dated: August 9, 2010. Constitution Ave., NW., Washington, DC. The EPA/DC Public Reading Room (Pub. L. 104–4). Susan Hedman, This proposed rule also does not have hours of operation are 8:30 a.m. to 4:30 tribal applications because it will not Regional Administrator, Region 5. p.m., Monday through Friday, excluding have a substantial direct effect on one or Dated: August 27, 2010. legal holidays. The telephone number of more Indian tribes, on the relationship Beverly H. Banister, the EPA/DC Public Reading Room is between the Federal Government and Acting Regional Administrator, Region 4. (202) 566–1744, and the telephone Indian tribes, or on the distribution of [FR Doc. 2010–22850 Filed 9–13–10; 8:45 am] number for the OPPT Docket is (202) power and responsibilities between the BILLING CODE 6560–50–P 566–0280. Docket visitors are required

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to show photographic identification, development process includes developing health assessments pursuant pass through a metal detector, and sign stakeholders working with us to identify to CERCLA, 42 U.S.C. 9601 et seq. the EPA visitor log. All visitor bags are the most practical and effective ATSDR had referred the chemicals processed through an X-ray machine solutions to problems and we stress this subject to the proposed rule to EPA and subject to search. Visitors will be point most strongly in all of our training under authority of section 104(i) of provided an EPA/DC badge that must be programs for rule and policy developers. CERCLA, 42 U.S.C. 9604(i). Since then, visible at all times in the building and The Semi-Annual Regulatory Agenda is ATSDR has informed EPA that it no returned upon departure. often used as a tool to solicit interest longer needs EPA to finalize this FOR FURTHER INFORMATION CONTACT: For and participation from stakeholders. As proposed rule. Therefore, OPPT is technical information contact: Robert such, EPA believes that the public is withdrawing this proposed test rule and Jones, Chemical Control Division best served by a Semi-Annual removing it from the EPA Semi-Annual (7405M), Office of Pollution Prevention Regulatory Agenda that reflects active Regulatory Agenda. and Toxics, Environmental Protection rulemaking efforts. The withdrawal of 3. Where can I get more information Agency, 1200 Pennsylvania Ave., NW., these inactive rulemaking efforts will about this action? EPA established a Washington, DC 20460–0001; telephone streamline the Semi-Annual Regulatory docket for this action under docket ID number: (202) 564–8161; e-mail address: Agenda and allow the public to better number EPA–HQ–OPPT–2002–0073, [email protected]. identify and focus on those rulemaking which is available at regulations.gov. For general information contact: The activities that are active. See ADDRESSES for more detailed TSCA-Hotline, ABVI-Goodwill, 422 For the individual reasons described information about this docket. South Clinton Ave., Rochester, NY in this document, the Agency has 14620; telephone number: (202) 554– decided not to complete these actions at B. The Proposed Test Rule for 1404; e-mail address: TSCA- this time. By withdrawing the proposed Hazardous Air Pollutants (RIN 2070– [email protected]. rules, the Agency is eliminating the AC76) pending nature of that regulatory action. SUPPLEMENTARY INFORMATION: 1. What was proposed? In the Federal Should the Agency determine to pursue Register issue of June 26, 1996 (61 FR I. Does this Action Apply to Me? anything in these areas in the future, it 33177) (FRL–4869–1), EPA published This action is directed to the public will issue a new proposed rule and the ‘‘Proposed Test Rule for Hazardous in general, and may be of particular create a new entry in the Agency’s Air Pollutants’’ (HAPs). This document interest to those persons who follow Semi-Annual Regulatory Agenda. proposed using EPA’s authority under proposed rules issued under the Toxic III. Which Rulemakings are Being section 4 of TSCA for testing 21 Substances Control Act (TSCA). Since Withdrawn? chemicals that are listed as hazardous others may also be interested, the air pollutants under section 112 of the Agency has not attempted to describe all The following two proposed rules are being withdrawn. The titles match that Clean Air Act (CAA) and solicited the specific entities potentially proposals for enforceable consent interested. used in the Semi-Annual Regulatory Agenda, and the ‘‘RIN’’ refers to the agreements. II. Why is EPA Issuing this Withdrawal regulatory identifier number assigned to 2. Why is it being withdrawn? EPA’s Document? the rulemaking effort in the Semi- Office of Air and Radiation (OAR), along with EPA’s Office of Research and This document serves two purposes: Annual Regulatory Agenda. Development (ORD), referred the 1. It announces to the public that EPA A. The Proposed Test Rule for Certain chemicals subject to this proposed rule is withdrawing certain proposed rules Chemicals on the ATSDR/EPA CERCLA for which the Agency no longer intends to OPPT for obtaining certain health Priority List of Hazardous Substances effects data to assess the risk remaining to issue a final rule . (RIN 2070–AB79) 2. It officially terminates the ongoing after the imposition of technology-based rulemaking activities, which allows the 1. What was proposed? In the Federal emissions standards required by CAA Agency to close out the individual Register issue of October 20, 2006 (71 section 112(d), 42 U.S.C. 7412(d). OPPT rulemaking entries for these actions that FR 61926) (FRL–8081–3), EPA explained that the reason it proposed to appear in the Agency’s Semi-Annual published the ‘‘Proposed Test Rule for use EPA’s authority under section 4 of Regulatory Agenda. Certain Chemicals on the ATSDR/EPA TSCA was to support OAR and ORD in All agencies publish Semi-Annual CERCLA Priority List of Hazardous meeting EPA’s statutory obligation Regulatory Agendas describing Substances’’ for the consideration of under CAA section 112(f), 42 U.S.C. regulatory actions they are developing testing for four chemicals (chloroethane, 7412(f). After the proposal was issued in or have recently completed. These hydrogen cyanide, methylene chloride, 1996, OAR and ORD informed OPPT Semi-Annual Regulatory Agendas are and sodium cyanide). The chemicals are that they no longer support the need for published in the Federal Register, listed on the Agency for Toxic a final rule. Additionally, OPPT has usually during the spring and fall of Substances and Disease Registry determined that the record does not each year, as part of the Unified Agenda. (ATSDR)/EPA priority list of hazardous address scientific information The Agency publishes the EPA Semi- substances which is compiled under the developed since the original proposal Annual Regulatory Agenda to update Comprehensive Environmental was issued in 1996. Therefore OPPT is the public about: Regulations and major Response Compensation and Liability withdrawing this proposed test rule and policies currently under development, Act (CERCLA). removing it from the EPA Semi-Annual reviews of existing regulations and 2. Why is it being withdrawn? In the Regulatory Agenda. major policies, and rules and major proposal for this test rule, EPA 3. Where can I get more information policies completed or canceled since the explained that the reason EPA proposed about this action? EPA established a last Semi-Annual Regulatory Agenda. to use its authority under section 4 of docket for this action under docket (See http://www.epa.gov/lawsregs/ TSCA was to support ATSDR’s control number OPPTS–42187, which is search/regagenda.html.) Substance Specific Applied Research available at regulations.gov. See We believe our actions will be more Program, a program for collecting data ADDRESSES for more detailed cost-effective and protective if our and other information needed for information about this docket.

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List of Subjects in 40 CFR Part 799 the deadline for submitting an interested parties. We seek information Environmental protection, Chemicals, electronic comment is 12:00 Midnight, on: (1) The species’ biology, range, and Hazardous substances, Health, Eastern Standard Time on this date. population trends, including: Reporting and recordkeeping ADDRESSES: You may submit (a) Habitat requirements for feeding, requirements. information by one of the following methods: breeding, and sheltering; Dated: September 8, 2010. • Federal eRulemaking Portal: http:// (b) Genetics and taxonomy; Stephen A. Owens, www.regulations.gov. In the box that (c) Historical and current range reads ‘‘Enter Keyword or ID,’’ enter the including distribution patterns; Assistant Administrator, Office of Chemical (d) Historical and current population Safety and Pollution Prevention. Docket number for this finding, which is [FWS–R3–ES–2010–0062]. Check the levels, and current and projected trends; [FR Doc. 2010–22862 Filed 9–13–10; 8:45 am] and BILLING CODE 6560–50–S box that reads ‘‘Open for Comment/ Submission,’’ and then click the Search (e) Past and ongoing conservation button. You should then see an icon that measures for the species, its habitat or ‘‘ ’’ both. DEPARTMENT OF THE INTERIOR reads Submit a Comment. Please ensure that you have found the correct (2) The factors that are the basis for making a delisting determination for a Fish and Wildlife Service rulemaking before submitting your comment. species under section 4(a) of the • Endangered Species Act of 1973, as 50 CFR Part 17 U.S. mail or hand-delivery: Public Comments Processing, Attn: FWS–R3– amended (Act) (16 U.S.C. 1531 et seq.), [Docket No. FWS–R3–ES–2010–0062; ES–2010–0062, Division of Policy and which are: 92220–1113–0000–C6] Directives Management, U.S. Fish and (a) The present or threatened Wildlife Service, 4401 N. Fairfax Drive, destruction, modification, or Endangered and Threatened Wildlife Suite 222, Arlington, VA 22203. We will curtailment of its habitat or range; and Plants; 90-Day Finding on post all information we receive on (b) Overutilization for commercial, Petitions To Delist the Gray Wolf in http://www.regulations.gov. This recreational, scientific, or educational Minnesota, Wisconsin, Michigan, and generally means that we will post any purposes; the Western Great Lakes personal information you provide us (c) Disease or predation; (d) The inadequacy of existing AGENCY: Fish and Wildlife Service, (see the Request for Information section regulatory mechanisms; or below for more details). Interior. (e) Other natural or manmade factors ACTION: Notice of petition finding and After the date specified in DATES, you must submit information directly to the affecting its continued existence. initiation of status review. (3) Current or planned activities in the Regional Office (see FOR FURTHER western Great Lakes region and their SUMMARY: INFORMATION CONTACT section below). We, the U.S. Fish and possible impacts on the wolf and its Please note that we might not be able to Wildlife Service, announce a 90-day habitat; address or incorporate information that finding on petitions to remove (delist) (4) Information concerning the we receive after the above requested the gray wolf in the western Great Lakes adequacy of the recovery criteria date. from the List of Endangered and described in the 1992 Recovery Plan for Threatened Wildlife (List) established FOR FURTHER INFORMATION CONTACT: the Eastern Timber Wolf; under the Endangered Species Act of Laura Ragan, Endangered Species (5) The extent and adequacy of 1973, as amended (Act). Based on our Listing Coordinator, Midwest Regional Federal, State, and tribal protection and review, we find that the petitions Office, U.S. Fish and Wildlife Service, 1 management that would be provided to present substantial scientific or Federal Drive, Fort Snelling, Minnesota, the wolf in the western Great Lakes commercial information indicating that 55111, by telephone (612–713–5350), or region as a delisted species; removing the gray wolf in Minnesota, by facsimile (612–713–5292). If you use (6) Whether gray wolves in Minnesota Wisconsin, and Michigan from the List a telecommunications device for the alone; or in Minnesota and Wisconsin may be warranted. Therefore, with the deaf (TDD), please call the Federal combined; or in Minnesota, Wisconsin, publication of this notice, we are Information Relay Service (FIRS) at and Michigan combined constitute initiating a review of the status of the 800–877–8339. distinct population segments or entities species to determine if delisting in SUPPLEMENTARY INFORMATION: that which may be removed from the Minnesota, Wisconsin, and Michigan is List of Endangered and Threatened warranted. To ensure that this status Request for Information Wildlife under the Act; and review is comprehensive, we are When we make a finding that a (7) Information or data regarding the requesting scientific and commercial petition to remove (delist) a species taxonomy of wolves in the western data and other information regarding the from the List of Endangered and Great Lakes region. gray wolf in Minnesota, Wisconsin, and Threatened Wildlife presents substantial Please include sufficient information Michigan. Based on the status review, information that the petitioned action with your submission (such as scientific we will issue a 12-month finding on the may be warranted, we are required to journal articles or other publications) to petitions, which will address whether promptly commence a review of the allow us to verify any scientific or any of the petitioned actions are status of the species (status review). For commercial information you include. warranted, as provided in section the status review to be complete and Submissions merely stating support 4(b)(3)(B) of the Act. based on the best available scientific for or opposition to the action under DATES: To allow us adequate time to and commercial information, we request consideration without providing conduct this review, we request that we information on the gray wolf in supporting information, although noted, receive information on or before Minnesota, Wisconsin, and Michigan will not be considered in making a November 15, 2010. Please note that if from governmental agencies, Native determination. Section 4(b)(1)(A) of the you are using the Federal eRulemaking American Tribes, the scientific Act directs that determinations as to Portal (see ADDRESSES section, below), community, industry, and any other whether any species is an endangered or

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threatened species must be made ‘‘solely endangered or threatened species under conterminous 48 States and Mexico, on the basis of the best scientific and the Act. In an April 16, 2010, letter to except for Minnesota, where the gray commercial data available.’’ the MNDNR, we responded that we wolf was reclassified to threatened. In You may submit your information received the petition and provided an addition, critical habitat was designated concerning this status review by one of explanation of the petition process. On in that rulemaking. In 50 CFR 17.95(a), the methods listed in the ADDRESSES April 26, 2010, we received a petition we describe Isle Royale National Park, section. If you submit information via from the Wisconsin Department of Michigan, and Minnesota wolf http://www.regulations.gov, your entire Natural Resources (WIDNR) requesting management zones 1, 2, and 3 submission—including any personal that the gray wolf in Minnesota and (delineated in 50 CFR 17.40(d)(1)) as identifying information—will be posted Wisconsin be removed from the lists of critical habitat. At that time we also on the Web site. If you submit a endangered or threatened species under developed special regulations under hardcopy that includes personal the Act. In a May 14, 2010 letter, to the section 4(d) of the Act for managing identifying information, you may WIDNR, we responded that we received wolves in Minnesota. The depredation request at the top of your document that the petition and provided an control portion of the special regulation we withhold this personal identifying explanation of the petition process. On was later modified (50 FR 50792; information from public review. April 26, 2010, we received a petition December 12, 1985); these special However, we cannot guarantee that we from the U.S. Sportsmen’s Alliance, regulations are found in 50 CFR will be able to do so. We will post all representing five other organizations, 17.40(d)(2). hardcopy submissions on http:// requesting that gray wolves in the Great On April 1, 2003, we published a final www.regulations.gov. Lakes area be removed from the lists of rule revising the listing status of the Information and supporting endangered or threatened species under gray wolf across most of the documentation that we received and the Act. In a May 28, 2010, letter to the conterminous United States (68 FR used in preparing this finding is U.S. Sportsmen’s Alliance, we 15804). Within that rule, we identified available for you to review at http:// responded that we received the petition three distinct population segments www.regulations.gov, or you may make and provided an explanation of the (DPS) for the gray wolf. Gray wolves in an appointment during normal business petition process. On June 17, 2010, we the Western DPS and the Eastern DPS hours at the U.S. Fish and Wildlife received a petition from Safari Club were reclassified from endangered to Service, Midwest Regional Office (see International, Safari Club International threatened, except where already FOR FURTHER INFORMATION CONTACT). Foundation and the National Rifle classified as threatened or as an Association of America requesting that experimental population. Gray wolves Background wolves of the western Great Lakes be in the Southwestern DPS retained their Section 4(b)(3)(A) of the Act (16 removed from the list of endangered and previous endangered or experimental U.S.C. 1533(b)(3)(A)) requires that we threatened species. In a June 30, 2010, population status. The three existing make a finding on whether a petition to letter to the Safari Club International we gray wolf experimental population list, delist, or reclassify a species responded that we received the petition designations were not affected by the presents substantial scientific or and provided an explanation of the April 1, 2003, final rule. We removed commercial information indicating that petition process. gray wolves from the lists of threatened the petitioned action may be warranted. All of the petitions clearly identified and endangered wildlife in all or parts We are to base this finding on themselves as such and included the of 16 southern and eastern States where information provided in the petition, requisite identification information from the species historically did not occur. supporting information submitted with the petitioner, as required by 50 CFR We also established a new special rule the petition, and information otherwise 424.14(a). This finding addresses the under section 4(d) of the Act for the available in our files. To the maximum four petitions. threatened Western DPS to increase our extent practicable, we are to make this ability to effectively manage wolf– Previous Federal Actions finding within 90 days of our receipt of human conflicts outside the two the petition and publish our notice of The eastern timber wolf (Canis lupus experimental population areas in the the finding promptly in the Federal lycaon) was listed as endangered in Western DPS. In addition, we Register. Minnesota and Michigan, and the established a second section 4(d) rule Our standard for substantial scientific northern Rocky Mountain wolf (C. l. that applied provisions similar to those or commercial information within the irremotus) was listed as endangered in previously in effect in Minnesota to Code of Federal Regulations (CFR) with Montana and Wyoming in the first list most of the Eastern DPS. These two regard to a 90-day petition finding is of species that were protected under the special rules were codified in 50 CFR ‘‘that amount of information that would 1973 Act, published in May 1974 (USDI 17.40(n) and (o), respectively. lead a reasonable person to believe that 1974). A third gray wolf subspecies, the On January 31, 2005, and August 19, the measure proposed in the petition Mexican wolf (C. l. baileyi), was listed 2005, U.S. District Courts in Oregon and may be warranted’’ (50 CFR 424.14(b)). as endangered on April 28, 1976, (41 FR Vermont, respectively, ruled that the If we find that substantial scientific or 17736) with its known range given as April 1, 2003, final rule violated the Act commercial information was presented, ‘‘Mexico, USA (Arizona, New Mexico, (Defenders of Wildlife v. Secretary, U.S. we are required to promptly conduct a Texas).’’ On June 14, 1976, (41 FR Dep’t of the Interior, 354 F.Supp.2d species status review, which we 240624) the subspecies C. l. 1156 (D.Or. 2005); National Wildlife subsequently summarize in our 12- monstrabilis was listed as endangered Fed’n v. Norton, 386 F.Supp.2d 553 month finding. (under the misleading common name (D.Vt. 2005) . The Courts’ rulings ‘‘Gray wolf’’), and its range was invalidated the revisions to the gray Petition History described as ‘‘Texas, New Mexico, wolf listing. Therefore, the status of gray On March 15, 2010, we received a Mexico.’’ wolves outside of Minnesota and petition from the Minnesota Department On March 9, 1978, we published a outside of areas designated as of Natural Resources (MNDNR) rule (43 FR 9607) relisting the gray wolf nonessential experimental populations requesting that the gray wolf in at the species level (Canis lupus) as reverted back to endangered (as had Minnesota be removed from the lists of endangered throughout the been the case prior to the 2003

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reclassification). The courts also special regulations for the gray wolf in the National Marine Fisheries Service invalidated the associated special Minnesota (74 FR 15070). That final rule (now the National Oceanic and regulations. addressed the narrow issue Atmospheric Administration— On March 27, 2006, we published a objectionable to the court and was Fisheries), published the Policy proposal (71 FR 15266–15305) to otherwise substantially the same as the Regarding the Recognition of Distinct identify a Western Great Lakes (WGL) 2007 vacated rule. We did not seek Vertebrate Population Segments (DPS DPS of the gray wolf, to remove the additional public comment on the 2009 Policy) in the Federal Register on WGL DPS from the protections of the final rule. February 7, 1996 (61 FR 4722). Under Act, to remove designated critical On June 15, 2009, five parties filed a the DPS Policy, three elements are habitat for the gray wolf in Minnesota complaint against the Department and considered in the decision regarding the and Michigan, and to remove special the Service alleging that we violated the establishment and classification of a regulations for the gray wolf in Endangered Species Act, the population of a vertebrate species as a Minnesota. The proposal was followed Administrative Procedure Act (APA), possible DPS. Similarly, these three by a 90-day comment period, during and the Court’s Remand Order by elements are applied for additions to which we held four public hearings on publishing the 2009 final rule. The and removals from the List of the proposal. Humane Society, et al. v. Salazar, 09– Endangered and Threatened Wildlife On February 8, 2007, we published a cv–1092 (D.D.C. 2009). On that same and Plants. These elements are: (1) The final rule identifying a WGL DPS of the day, the plaintiffs also filed a motion for discreteness of a population in relation gray wolf, removing the WGL DPS from preliminary injunction alleging that we to the remainder of the species to which the protections of the Act, removing violated the notice and comment it belongs, (2) the significance of the designated critical habitat for the gray requirement of the APA, the Endangered population segment to the species to wolf in Minnesota and Michigan, and Species Act’s requirement that we which it belongs, and, if these first two removing special regulations for the consider the best available science, and criteria are met, (3) the population gray wolf in Minnesota (72 FR 6052). the court’s remand order by publishing segment’s conservation status in relation On April 16, 2007, four parties filed the 2009 final rule. We conceded that to the Act’s standards for listing, a lawsuit against the U.S. Department of we erred by publishing the 2009 final delisting, or reclassification. the Interior (Department) and the rule without providing for notice and Discreteness Service, challenging the Service’s comment as required by APA (5 U.S.C. February 8, 2007 (72 FR 6052), 553). On July 2, 2009, a settlement Under our DPS policy, a population identification and delisting of the WGL agreement between the parties was segment of a vertebrate species may be DPS. The plaintiffs argued that the signed by the court, remanding and considered discrete if it satisfies either Service may not identify a DPS within vacating the 2009 final rule. one of the following two conditions: a broader pre-existing listed entity for On September 16, 2009, we published (1) It is markedly separated from other the purpose of delisting the DPS. Based a final rule reinstating protections for populations of the same taxon as a on this argument, on September 29, the gray wolf in the western Great Lakes consequence of physical, physiological, 2008, the U.S. District Court for the pursuant to the settlement agreement ecological, or behavioral factors District of Columbia remanded and and court-order (74 FR 47483). (quantitative measures of genetic or vacated the February 8, 2007, WGL DPS morphological discontinuity may final rule (72 FR 6052). The court found Species Information provide evidence of this separation); or that the Service had made that decision For a discussion of the biology and (2) It is delimited by international based on its interpretation that the plain ecology of gray wolves and general governmental boundaries within which meaning of the Act authorizes the recovery planning efforts, see the differences in control of exploitation, Service to identify and delist a DPS proposed WGL wolf rule published on management of habitat, conservation within an already-listed entity. The March 27, 2006, (71 FR 15266–15305), status, or regulatory mechanisms exist court disagreed, and concluded that the also available on http://www.fws.gov/ that are significant in light of section Act is ambiguous as to whether the midwest/wolf/. 4(a)(1)(D) of the Act (61 FR 4722). Service has this authority. The court Significance accordingly remanded the final rule so Defining a Species Under the Act that the Service could provide a Section 3(16) of the Act defines If a population segment is considered reasoned explanation of how its ‘‘species’’ to include ‘‘any species or discrete under one or more of the interpretation is consistent with the subspecies of fish and wildlife or plants, conditions described in the Service’s text, structure, legislative history, and any distinct vertebrate population DPS policy, its biological and ecological judicial interpretations, and policy segment of fish or wildlife that significance will be considered in light objectives of the Act (Humane Society of interbreeds when mature’’ (16 U.S.C. of congressional guidance that the the United States v. Kempthorne, 579 F. 1532 (16)). Our implementing authority to list DPSs be used Supp. 2d 7 (D.D.C. 2008). regulations at 50 CFR 424.02 provide ‘‘sparingly’’ while encouraging the On December 11, 2008, we published further guidance for determining conservation of genetic diversity (see a final rule reinstating protections for whether a particular taxon or Senate Report 151, 96th Congress, 1st the gray wolf in the western Great Lakes population is a species or subspecies for Session). In making this determination, and northern Rocky Mountains the purposes of the Act: ‘‘The Secretary we consider available scientific pursuant to court-orders (73 FR 75356). shall rely on standard taxonomic evidence of the discrete population On April 2, 2009, we published a final distinctions and the biological expertise segment’s importance to the taxon to rule identifying the western Great Lakes of the Department and the scientific which it belongs. Since precise populations of gray wolves as a DPS, community concerning the relevant circumstances are likely to vary revising the List of Endangered and taxonomic group’’ (50 CFR 424.11). considerably from case to case, the DPS Threatened Wildlife by removing the To interpret and implement the policy does not describe all the classes DPS from that list, removing designated distinct vertebrate population segment of information that might be used in critical habitat for the gray wolf in (DPS) provisions of the Act and determining the biological and Minnesota and Michigan, and removing Congressional guidance, the Service and ecological importance of a discrete

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population. However, the DPS policy common spatial arrangement that In the 12-month finding, we will fully describes four possible classes of interbreed when mature. For purposes analyze whether gray wolves in those information that provide evidence of a of this rulemaking, the gray wolf (Canis areas constitute ‘‘species’’ under the Act, discrete population segment’s biological lupus) group in Mexico and the 48 and whether they are a threatened and ecological importance to the taxon coterminous States of the United States, species or endangered species under the to which it belongs. As specified in the other than Minnesota, is being Act. DPS policy, this consideration of the considered as one ‘species’, and the gray Evaluation of Information for This population segment’s significance may wolf group in Minnesota is being Finding include, but is not limited to, the considered as another ‘species.’ ’’ (43 FR following: 9610). Section 4 of the Act (16 U.S.C. 1533) (1) Persistence of the discrete The 1978 rule stated that this and its implementing regulations at 50 population segment in an ecological determination was ‘‘based solely on an CFR 424 set forth the procedures for setting unusual or unique to the taxon; evaluation of the best available adding a species to, or removing a (2) Evidence that loss of the discrete biological data.* * * The only major species from, the Federal Lists of population segment would result in a population of the gray wolf remaining Endangered and Threatened Wildlife significant gap in the range of a taxon; anywhere in the 48 conterminous States and Plants. A species may be (3) Evidence that the discrete is in northern Minnesota.’’ Id. at 9607 & determined to be an endangered species population segment represents the only 9610–11. or threatened species due to one or more surviving natural occurrence of a taxon Wolves in Minnesota and Wisconsin of the five factors described in section that may be more abundant elsewhere as 4(a)(1) of the Act: an introduced population outside its The petition from the Wisconsin DNR (A) The present or threatened historic range; or requests removing the ‘‘Minnesota wolf destruction, modification, or (4) Evidence that the discrete species,’’ which occurs in Minnesota curtailment of its habitat or range; population segment differs markedly and Wisconsin, from the protections of (B) Overutilization for commercial, from other populations of the species in the Act. The petition presents the recreational, scientific, or educational its genetic characteristics. following information. purposes; A population segment needs to satisfy Gray wolves moved from Minnesota (C) Disease or predation; only one of these conditions to be to Wisconsin and Michigan, and are (D) The inadequacy of existing considered significant. Furthermore, now established in those states. regulatory mechanisms; or other information may be used as Minnesota gray wolves settled into (E) Other natural or manmade factors appropriate to provide evidence for eastern Pine County along the border affecting its continued existence. significance. with Wisconsin in 1974–1975 (Mech We must consider these same five and Nowak 1981, pp. 408–409) and factors in delisting a species. We may Information Provided in the Petitions soon spread eastward into Wisconsin. remove a threatened species or Regarding the ‘‘Species’’ Requested for Movements of wolves from Minnesota endangered species from the Act’s Delisting into Wisconsin and Michigan continued protections according to 50 CFR Wolves in Minnesota to be documented into the 1990s (Mech 424.11(d) if the best available scientific et al. 1995; Wydeven 1994). More recent and commercial data indicate that the The petition from the Minnesota DNR genetic analysis also demonstrates that species is neither endangered nor requests removing the ‘‘Minnesota wolf the wolves currently in Wisconsin and threatened for the following reasons: species’’ from the protections of the Act. Michigan are genetically similar to (1) The species is extinct; The petition presents the following wolves in Minnesota (Wheeldon 2009; (2) The species has recovered and is information. Fain et al. 2010). no longer endangered or threatened; or In 1978, the Service issued a final rule (3) The original scientific data used at reclassifying ‘‘the gray wolf in the Wolves in Minnesota, Wisconsin, and the time the species was classified were United States and Mexico’’ and Michigan in error. determining critical habitat for the The petition from the U.S. In making this 90-day finding, we species of gray wolf in Michigan and Sportsmen’s Alliance requests removing evaluated whether information Minnesota (43 FR 9607). The rule stated, gray wolves in Minnesota, Wisconsin, regarding the reduction of threats to the ‘‘(t)he reclassification is considered to and Michigan from the protections of gray wolf in Minnesota, Wisconsin, accurately express the current status of the Act. In the alternative, they request Michigan, and the western Great Lakes the gray wolf, based solely on an removing gray wolves within the area as a whole as presented in the evaluation of the best available somewhat broader boundaries of the petitions and other information biological data.’’ Western Great Lakes Distinct Population available in our files, is substantial, As stated in Minnesota’s March 15, Segment (DPS), as identified in the 2007 thereby indicating that the petitioned 2010, petition, the Service in 1978 and 2009 final rules (72 FR 6052, action may be warranted. issued a final rule that listed the gray February 8, 2007; 74 FR 15070, April 2, We reviewed the relevant five factors wolf population in Minnesota as 2009) that were later vacated. The extensively in previous delisting threatened and treated the gray wolf in petition references information decisions for the gray wolf in an area Minnesota as another ‘‘species’’ separate provided in the petitions from previously identified as the WGL DPS, from the gray wolf species that was Minnesota and Wisconsin and in the which includes Minnesota, Wisconsin, listed as endangered in the other 2007 and 2009 final rules. and Michigan (71 FR 15266, March 27, conterminous 48 States and Mexico (43 We find that the four petitions 2006; 74 FR 15070, April 2, 2009). Our FR 9607, March 9, 1978). The 1978 final provide substantial information that the files have no information to indicate rule states, ‘‘as defined in section 3 of wolf in Minnesota alone; in Minnesota there has been a significant change since the Act, the term ‘‘species’’ includes any and Wisconsin combined; in Minnesota, those previous analyses in how these subspecies of fish or wildlife or plants Wisconsin, and Michigan; and in the factors affect wolves in the western and any other group of fish or wildlife western Great Lakes area, may be Great Lakes area. We find that the of the same species or smaller taxa in considered as a ‘‘species’’ under the Act. information provided in the petition, as

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well as other information in our files, Lakes region in the past. These impacts showed wolf population stability or presents substantial scientific or have been both direct, resulting in increases with human-caused mortality commercial information indicating that mortality of individual wolves, and rates of 24 to 30 percent. The clear the petitioned action may be warranted indirect, by reducing longevity and conclusion is that a wolf population in light of one or more of the five factors fecundity of individuals or entire packs with high pup productivity—the normal described in section 4(a)(1) of the Act. or populations. Canine parvovirus situation in a wolf population—can A. The Present or Threatened stalled wolf population growth in withstand levels of overall and of Destruction, Modification, or Wisconsin in the early and mid-1980s human-caused mortality without Curtailment of Its Habitat or Range: The and has been implicated in the decline suffering a long-term decline in wolf population in the western Great in the mid-1980s of the isolated Isle numbers. Lakes area currently occupies all Royale wolf population in Michigan, The wolf populations in Minnesota, suitable habitat identified for recovery and in attenuating wolf population Wisconsin, and Michigan will stop in this area in the 1978 and 1992 growth in Minnesota (Mech in litt. growing when they have saturated the Recovery Plans and most of the 2006). Sarcoptic mange has affected suitable habitat and are curtailed in less potentially suitable habitat in the States wolf recovery in Michigan’s Upper suitable areas by natural mortality of Minnesota, Wisconsin, and Michigan. Peninsula and in Wisconsin over the (disease, starvation, and intraspecific Unsuitable habitat, and the small last 12 years, and it is recognized as a aggression), depredation management, fragmented areas of suitable habitat continuing issue. Despite these and incidental mortality (e.g., road kill), away from these core areas, are areas other diseases and parasites, the overall illegal killing, and other means. At that where viable wolf populations are trend for wolf populations in the time, we should expect to see unlikely to develop and persist. Western Great Lakes area continues to population declines in some years Although they may have been historical be upward. Wolf management plans for followed by short-term increases in habitat, many of these areas are no Minnesota, Michigan, and Wisconsin other years, resulting from fluctuations longer suitable for wolves, and none of include disease-monitoring components in birth and mortality rates. Adequate them are important to meet the that we expect will identify future wolf monitoring programs, however, as biological needs of the species. disease and parasite problems in time to described in the Michigan, Wisconsin, B. Overutilization for Commercial, allow corrective action to avoid a and Minnesota wolf management plans Recreational, Scientific, or Educational significant decline in overall population are likely to identify high mortality rates Purposes: No wolves have been legally viability. or low birth rates that warrant corrective removed from the wild for educational The high reproductive potential of action by the management agencies. The purposes in recent years. Wolves that wolves allows wolf populations to goals of all three State wolf management have been used for such purposes are withstand relatively high mortality plans are to maintain wolf populations the captive-reared offspring of wolves rates, including human-caused consistent with or above the objectives that were already in captivity for other mortality. The principle of in the Federal Eastern Timberwolf reasons, and this is not likely to change compensatory mortality is believed to Recovery Plan to ensure long-term, as a result of Federal delisting. We do occur in wolf populations. This means viable wolf populations. The State not expect taking for educational that human-caused mortality is not management plans recommend a purposes to constitute any threat to wolf simply added to ‘‘natural’’ mortality, but minimum wolf population of 1,600 in populations in the western Great Lakes rather replaces a portion of it. For Minnesota, 350 in Wisconsin, and 200 area for the foreseeable future. See example, some of the wolves that are in Michigan. Factor E for a discussion of taking of killed during depredation control Despite human-caused mortalities of gray wolves by Native Americans for actions would have otherwise died wolves in Minnesota, Wisconsin, and religious, spiritual, or traditional during that year from disease, Michigan, these wolf populations have cultural purposes. See the Depredation intraspecific strife, or starvation. Thus, continued to increase in both numbers Control Programs sections under Factor the addition of intentional killing of and range. As long as other mortality D for discussion of other past, current, wolves to a wolf population will reduce factors do not increase significantly and and potential future forms of intentional the mortality rates from other causes on monitoring is adequate to document, and accidental take by humans, the population. Based on 19 studies by and if necessary counteract, the effects including depredation control, public other wolf researchers, Fuller et al. of excessive human-caused mortality safety, and under public harvest. While (2003, pp. 182–186) concludes that should that occur, the Minnesota– public harvest may include recreational human-caused mortality can replace Wisconsin–Michigan wolf population harvest, public harvest may also serve as about 70 percent of other forms of will not decline to nonviable levels in a management tool, so it is discussed in mortality. the foreseeable future as a result of Factor D. Taking wolves for scientific or Fuller et al. (2003, p. 182 Table 6.8) human-caused killing or other forms of educational purposes in the western has summarized the work of various predation. Great Lakes area may not be regulated researchers in estimating mortality rates, D. The Inadequacy of Existing or closely monitored in the future, but especially human harvest, that would Regulatory Mechanisms: The wolf the threat to wolves in Minnesota, result in wolf population stability or management plans currently in place for Wisconsin, and Michigan will not be decline. They provide a number of Minnesota, Wisconsin, and Michigan significant to the long-term viability of human-caused and total mortality rate will be more than sufficient to retain the wolf population in the western Great estimates and the observed population viable wolf populations in each State, Lakes area. The potential limited effects in wolf populations in the United and even for three completely isolated commercial and recreational harvest States and Canada. While variability is wolf populations. These State plans that may occur will be regulated by apparent, in general, wolf populations provide a very high level of assurance State or Tribal conservation agencies increased if their total average annual that wolf populations in these three and is discussed under Factor D. mortality was 30 percent or less, and States will not decline to nonviable C. Disease or Predation: Several populations decreased if their total levels in the foreseeable future. While diseases have had noticeable impacts on average annual mortality was 40 percent these State plans recognize there may be wolf population growth in the Great or more. Four of the cited studies a need to control or even reduce wolf

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populations at some future time, none of adequately protected on Tribal lands. In information indicating that delisting the the plans include a public harvest of addition, on the basis of information gray wolf in Minnesota, Wisconsin, wolves. received from other Federal land Michigan, or the western Great Lakes Wolves in Minnesota, Wisconsin, and management agencies in Minnesota, area as a whole may be warranted, we Michigan would continue to receive Wisconsin, and Michigan, we expect are initiating a status review to protection from general human National Forests, units of the National determine whether delisting the gray persecution by State laws and Park System, military bases, and wolf in those States and the surrounding regulations. Michigan met the criteria National Wildlife Refuges will provide region under the Act is warranted. protections to gray wolves after delisting established in their management plan The ‘‘substantial information’’ that will match, and in some cases will for State delisting and in April 2009 standard for a 90-day finding differs exceed, the protections provided by removed gray wolves from the State’s from the Act’s ‘‘best scientific and State wolf management plans and State threatened and endangered species list commercial data’’ standard that applies protective regulations. and amended the Wildlife Conservation to a status review to determine whether Order to grant ‘‘protected animal’’ status E. Other Natural or Manmade Factors Affecting Its Continued Existence: The a petitioned action is warranted. A 90- to the gray wolf in the State (Roell 2009, day finding does not constitute a status pers. comm.). That status ‘‘prohibit[s] information contained within the petitions and our files conclude that review under the Act. In a 12-month take, establish[es] penalties and finding, we will determine whether a restitution for violations of the Order, other natural or manmade factors may not be threats sufficient to cause the petitioned action is warranted after we and detail[s] conditions under which have completed a thorough status lethal depredation control measures wolves in the western Great Lakes area to warrant listing; this includes taking of review of the species, which is could be implemented’’ (Humphries in conducted following a substantial 90- litt. 2004). Since 2004 wolves have been wolves by Native Americans for religious, spiritual, or traditional day finding. Because the Act’s standards listed as a ‘‘protected wild animal’’ by for 90-day and 12-month findings are the WI DNR, allowing no lethal take cultural purposes, public attitudes toward the gray wolf, and coyote different, as described above, a unless special authorization is requested substantial 90-day finding does not from the WI DNR (Wydeven et al. hybridization. If requested by the Tribes, multitribal natural resource mean that the 12-month finding will 2009c). Following Federal delisting, agencies, or the States, the Service or result in a warranted finding. Wisconsin will fully implement that other appropriate Federal agencies will ‘‘protected wild animal’’ status for the References Cited work with these parties to help species, including protections that determine if a harvestable surplus provide for fines of $1,000 to $2,000 for A complete list of references cited is exists, and if so, to assist in devising unlawful hunting. Minnesota DNR will available on the Internet at http:// reasonable and appropriate methods consider population management www.regulations.gov and upon request and levels of harvest for delisted wolves measures, including public hunting and from the Midwest Regional Office (see for traditional cultural purposes. We trapping, but this will not occur sooner FOR FURTHER INFORMATION CONTACT). conclude that the small number of than 5 years after a Federal delisting and wolves that may be taken by Native Author will maintain a wolf population of at Americans will not be a significant The primary authors of this notice are least 1600 animals (MN DNR 2001, p. 2). threat to the viability of the population. In the meantime, wolves in Zone A the staff members of the Midwest could be legally taken in Minnesota Finding Regional Office (see FOR FURTHER only for depredation management or On the basis of our determination INFORMATION CONTACT). public safety (MN DNR 2001, pp. 3–4). under section 4(b)(3)(A) of the Act, we Authority Since the wolf management plan was have determined that the petitions completed in 2001, MN DNR has fully present substantial scientific or The authority for this action is the staffed its conservation officer corps in commercial information indicating that Endangered Species Act of 1973, as the State’s wolf range (Stark 2009a, pers. delisting the gray wolf in Minnesota, amended (16 U.S.C. 1531 et seq.). comm.). Wisconsin, Michigan, or the western Dated: August 19, 2010. Additionally, although to our Great Lakes area as a whole may be knowledge no Tribes have completed warranted. This finding is based on Wendi Weber, wolf management plans at this time, information provided under all five Acting Director, U.S. Fish and Wildlife based on communications with Tribes factors. Service. and Tribal organizations, federally- Because we have found that the [FR Doc. 2010–22752 Filed 9–13–10; 8:45 am] delisted wolves are very likely to be petitions present substantial BILLING CODE 4310–55–P

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Notices Federal Register Vol. 75, No. 177

Tuesday, September 14, 2010

This section of the FEDERAL REGISTER the collection of information unless it Total Burden Hours: 38. contains documents other than rules or displays a currently valid OMB control Ruth Brown, proposed rules that are applicable to the number. public. Notices of hearings and investigations, Departmental Information Collection committee meetings, agency decisions and Animal and Plant Health Inspection Clearance Officer. rulings, delegations of authority, filing of Service [FR Doc. 2010–22795 Filed 9–13–10; 8:45 am] petitions and applications and agency BILLING CODE 3410–34–P statements of organization and functions are Title: Importation of Artificially examples of documents appearing in this Dwarfed Plants. section. OMB Control Number: 0579–0176. DEPARTMENT OF AGRICULTURE Summary of Collection: Under the Plant Protection Act (7 U.S.C. 7701– Forest Service DEPARTMENT OF AGRICULTURE 7772), the Secretary of Agriculture is authorized to prohibit or restrict the Mark Twain National Forest; Missouri; Submission for OMB Review; Integrated Non-Native Invasive Plant Comment Request importation, entry or movement of plants and plant pests, to prevent the Project September 8, 2010. introduction of plant pests into the AGENCY: Forest Service, USDA. The Department of Agriculture has United States or their dissemination submitted the following information within the United States. The Plant ACTION: Notice of intent to prepare an collection requirement(s) to OMB for Protection and Quarantine, a program environmental impact statement. review and clearance under the within USDA’s Animal and Plant Health Paperwork Reduction Act of 1995, Inspection Service (APHIS), enforce SUMMARY: The Mark Twain National Public Law 104–13. Comments these regulations. APHIS requires Forest (MTNF) proposes to implement regarding (a) Whether the collection of artificially dwarfed plants that are an integrated Forest-wide management information is necessary for the proper imported into the United States to have strategy to control the spread of non- performance of the functions of the been grown under certain conditions in native invasive plants (NNIP) within the agency, including whether the greenhouses or screen houses within National Forest over the next 10 years, information will have practical utility; nurseries registered with the or until circumstances change to the (b) the accuracy of the agency’s estimate government of the country where the point that the analysis is no longer of burden including the validity of the plants were grown. valid. The proposal utilizes several management tools, including registered methodology and assumptions used; (c) Need and Use of the Information: herbicides, bio-agents, and manual/ ways to enhance the quality, utility and APHIS will collect information from the mechanical methods. clarity of the information to be phytosanitary certificate to state that the collected; (d) ways to minimize the plants were: (1) Grown for at least 2 DATES: Comments concerning the scope burden of the collection of information years in a nursery that is registered with of the analysis must be received by on those who are to respond, including the government of the country of export; October 4, 2010. The draft through the use of appropriate (2) grown in pots containing only sterile environmental impact statement is automated, electronic, mechanical, or growing media; (3) grown on benches at expected November 2010 and the final other technological collection least 50 cm above the ground; and (4) environmental impact statement is techniques or other forms of information inspected (along with the nursery itself) expected March 2011. technology should be addressed to: Desk at least once each year by the plant ADDRESSES: Send written comments to Officer for Agriculture, Office of protection service of the country of Information and Regulatory Affairs, Integrated NNIP Project, 401 export. The collected information will Fairgrounds Road, Rolla, MO 65401. Office of Management and Budget enable PPQ to verify that the imported (OMB), OIRA_Submission@ Comments may also be sent via e-mail plants were grown under conditions to [email protected], OMB.EOP.GOV or fax (202) 395–5806 that helped keep the plants free from and to Departmental Clearance Office, or via facsimile to (573) 364–6844. infestation by certain longhorned USDA, OCIO, Mail Stop 7602, It is important that reviewers provide beetles and other pests. APHIS also uses Washington, DC 20250–7602. their comments at such times and in the information on this certificate to Comments regarding these information such a way that they are useful to the determine the pest condition of the collections are best assured of having Agency’s preparation of the EIS. shipment at the time of inspection in their full effect if received within 30 Therefore, comments should be the foreign country. Without the days of this notification. Copies of the provided prior to the close of the information, all shipment would need to submission(s) may be obtained by comment period and should clearly be inspected very thoroughly, thereby calling (202) 720–8958. articulate the reviewer’s concerns and requiring considerably more time. This An agency may not conduct or contentions. would slow the clearance of sponsor a collection of information Comments received in response to international shipments. unless the collection of information this solicitation, including names and displays a currently valid OMB control Description of Respondents: Business addresses of those who comment, will number and the agency informs or other for-profit; Federal Government. be part of the public record for this potential persons who are to respond to Number of Respondents: 30. proposed action. Comments submitted the collection of information that such Frequency of Responses: Reporting; anonymously will be accepted and persons are not required to respond to On occasion. considered, however.

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FOR FURTHER INFORMATION CONTACT: MTNF, the lead agency, on this develop a timeline for receiving project Brian K Davidson, 401 Fairgrounds proposal. proposals for the next funding cycle and Road, Rolla, MO 65401. review monitoring accomplishments. Responsible Official Individuals who use DATES: The meeting will be held on telecommunication devices for the deaf The forest supervisor of the Mark October 27, 2010 from 6 p.m. to 8:30 (TDD) may call the Federal Information Twian National Forest is the responsible p.m. Relay Service (FIRS) at 1–800–877–8339 official. between 8 a.m. and 8 p.m., Eastern ADDRESSES: The meeting will be held at Nature of Decision To Be Made Time, Monday through Friday. the Sierra National Forest Supervisor’s SUPPLEMENTARY INFORMATION: The forest supervisor will make a Office, 1600 Tollhouse Road Prather, decision on whether to implement the CA. Send written comments to Robbin Purpose and Need for Action Integrated NNIP strategy on National Ekman, Fresno County Resource The purpose of this project is to Forest System land as proposed, an Advisory Committee Coordinator, c/o protect and restore naturally- alternative, or no action. Sierra National Forest, High Sierra functioning native ecosystems on the Ranger District, 29688 Auberry Road, Preliminary Issues MTNF by controlling current and future Prather, CA 93651 or electronically to threats of NNIP infestations. Control The interdisciplinary team has [email protected]. means, as appropriate, eradicating, identified preliminary issues. FOR FURTHER INFORMATION CONTACT: suppressing, reducing, or managing Unintended detrimental environmental Robbin Ekman, Fresno County Resource NNIP populations, preventing the effects to non-target species could result Advisory Committee Coordinator. (559) spread of NNIP, and taking steps such from the application of herbicide or 855–5355 ext. 3341. as restoration of native species and release of bio-agents. The application of SUPPLEMENTARY INFORMATION: The habitats to reduce the effects of invasive herbicide could result in an increase of meeting is open to the public. species and to prevent further invasions toxic chemicals in groundwater. Committee discussion is limited to (Executive Order 13112 invasive Scoping Process Forest Service staff and Committee species). Resiliency, integrity, and members. However, persons who wish sustainability of a variety of ecosystems Typically, this notice of intent to bring Payments to States Fresno on the MTNF could be compromised if initiates the scoping process, which County Title II project matters to the NNIP infestations continue to spread. guides the development of the This proposal is needed because environmental impact statement. attention of the Committee may file existing populations of NNIP currently Scoping for this project began in written statements with the Committee occur on the MTNF and are degrading November 2009 with a letter to the staff before or after the meeting. Agenda natural communities. Inventoried and public and posting of information to items to be covered include: (1) Accept new or unknown infestations continue MTNF world wide Web site. Four new project proposals and (2) Discuss to spread unchecked. Past projects to comment letters were received in monitoring accomplishments of current control invasive plants on the MTNF response to that solicitation. Those projects. have been authorized as small portions comments will be incorporated into the Dated: September 7, 2010. of larger vegetation management analysis for this EIS. Ray Porter, projects. Those limited actions have not It is important that reviewers provide District Ranger. been able to keep pace with the extent their comments at such times and in [FR Doc. 2010–22735 Filed 9–13–10; 8:45 am] in which several NNIP species spread such manner that they are useful to the BILLING CODE 3410–11–M and encroach into new areas. Species agency’s preparation of the such as garlic mustard, spotted environmental impact statement. knapweed, and Sericea lespedeza are Therefore, comments should be DEPARTMENT OF AGRICULTURE too wide-spread and aggressive to provided prior to the close of the address individually or at a smaller comment period and should clearly Forest Service project level in order to be successful. articulate the reviewer’s concerns and contentions. Del Norte Resource Advisory Proposed Action Committee (RAC) Dated: August 23, 2010. The MTNF proposes to implement an AGENCY: Forest Service, USDA. integrated program for the prevention, David C. Whittekiend, eradication, suppression, and reduction Forest Supervisor. ACTION: Notice of meeting. [FR Doc. 2010–22820 Filed 9–13–10; 8:45 am] of existing and future NNIP infestations SUMMARY: The Del Norte Resource BILLING CODE 3410–11–P on the forest. The integrated approach Advisory Committee (RAC) will meet in considers the best available scientific Crescent City, California. The committee information, most current NNIP DEPARTMENT OF AGRICULTURE meeting is authorized under the Secure inventories, and the effectiveness of Rural Schools and Community Self- control methods designed to meet Forest Service Determination (SRS) Act (Pub. L. 110– desired treatment objectives to control 343) and in compliance with the Federal NNIP infestations on National Forest Fresno County Resource Advisory Advisory Committee Act. System lands with the MTNF Committee boundaries. These control methods DATES: The meeting will be held would include various combinations of AGENCY: Forest Service, USDA. September 27 and 28, 2010, from 6 p.m. to 8:30 p.m. manual, mechanical, chemical, cultural, ACTION: Notice of meeting. and biological treatments. ADDRESSES: The meeting will be held at SUMMARY: The Fresno County Resource the Del Norte County Unified School Cooperating Agencies Advisory Committee will be meeting in District, Board Room, 301 West Missouri Department of Conservation Clovis, California, October 27, 2010. The Washington Boulevard, Crescent City, (MDC) is a cooperating agency with the purpose of the meeting will be to California 95531.

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FOR FURTHER INFORMATION CONTACT: Julie Dated: September 7, 2010. DATES: Written, telefaxed, or e-mail Ranieri, Committee Coordinator, Six Eduardo Olmedo, comments must be received on or before Rivers National Forest, at (707) 441– Designated Federal Official. October 14, 2010. 3673; e-mail [email protected]. [FR Doc. 2010–22739 Filed 9–13–10; 8:45 am] ADDRESSES: The application and related SUPPLEMENTARY INFORMATION: The BILLING CODE 3410–11–M documents are available for review by meeting is open to the public. The selecting ‘‘Records Open for Public public will present their Title II Project Comment’’ from the Features box on the Proposals to the RAC. Public input BROADCASTING BOARD OF Applications and Permits for Protected opportunity will be provided and GOVERNORS Species (APPS) home page, https:// individuals will have the opportunity to apps.nmfs.noaa.gov, and then selecting address the Committee at that time. Sunshine Act Meeting File No. 15654 from the list of available Dated: Sept. 7, 2010. applications. DATE AND TIME: Friday, September 17, These documents are also available Tyrone Kelley, 2010, 10 a.m.–12 p.m. upon written request or by appointment Forest Supervisor. PLACE: Cohen Building, Room 3321, in the following office(s): [FR Doc. 2010–22816 Filed 9–13–10; 8:45 am] 330 Independence Ave., SW., Permits, Conservation and Education BILLING CODE 3410–11–P Washington, DC 20237. Division, Office of Protected Resources, SUBJECT: Notice of Meeting of the NMFS, 1315 East-West Highway, Room Broadcasting Board of Governors. 13705, Silver Spring, MD 20910; phone DEPARTMENT OF AGRICULTURE SUMMARY: The Broadcasting Board of (301)713–2289; fax (301)713–0376; Governors (BBG) will be meeting at the Alaska Region, NMFS, P.O. Box Forest Service time and location listed above. The BBG 21668, Juneau, AK 99802–1668; phone Tehama County Resource Advisory will be considering BBG Governance (907)586–7221; fax (907)586–7249; and Northeast Region, NMFS, 55 Great Committee Committee recommendations, paying a tribute to OCB Director Pedro Roig, and Republic Drive, Gloucester, MA 01930; AGENCY: Forest Service, USDA. discussing the BBG’s research program phone (978)281–9328; fax (978) 281– 9394. ACTION: Notice of Meeting. and matters concerning the BBG’s draft FY 2012 annual budget. The meeting is Written comments on this application SUMMARY: The Tehama County Resource open—via webcast—to the public, but should be submitted to the Chief, Advisory Committee (RAC) will meet in the portion of the meeting concerning Permits, Conservation and Education Red Bluff, California. Agenda items to the BBG’s draft FY 2012 annual budget Division, at the address listed above. be covered include: (1) Introductions, will be closed to the public pursuant to Comments may also be submitted by (2) Approval of Minutes, (3) Public 5 U.S.C. 552b(c)(9)(B). The open portion facsimile to (301)713–0376, or by email Comment, (4) Chairman’s Perspective, of the meeting is available for the public to [email protected]. (5) Project Presentations, (6) Project to observe via streaming on the BBG’s Please include the File No. in the Voting, (7) Next Agenda. Web site at http://www.bbg.gov. subject line of the email comment. Those individuals requesting a public DATES: The meeting will be held on CONTACT PERSON FOR MORE INFORMATION: Persons interested in obtaining more hearing should submit a written request September 21, 2010 from 9 a.m. and end to the Chief, Permits, Conservation and at approximately 12 p.m. information should contact Paul Kollmer-Dorsey at (202) 203–4545. Education Division at the address listed ADDRESSES: The meeting will be held at above. The request should set forth the the Lincoln Street School, Pine Room, Paul Kollmer-Dorsey, specific reasons why a hearing on this 1135 Lincoln Street, Red Bluff, CA. Deputy General Counsel. application would be appropriate. Individuals wishing to speak or propose [FR Doc. 2010–23004 Filed 9–10–10; 4:15 pm] FOR FURTHER INFORMATION CONTACT: agenda items must send their names and BILLING CODE 8610–01–P Amy Sloan or Laura Morse, (301)713– proposals to Randy Jero, Committee 2289. Coordinator, 825 N. Humboldt Ave., Willows, CA 95988. SUPPLEMENTARY INFORMATION: The DEPARTMENT OF COMMERCE subject permit is requested under the FOR FURTHER INFORMATION CONTACT: authority of the Marine Mammal Randy Jero, Committee Coordinator, National Oceanic and Atmospheric Administration Protection Act of 1972, as amended USDA, Mendocino National Forest, (MMPA; 16 U.S.C. 1361 et seq.), the Grindstone Ranger District, 825 N. RIN 0648–XY93 regulations governing the taking and Humboldt Ave., Willows, CA 95988. importing of marine mammals (50 CFR (530) 934–1269; e-mail [email protected]. Marine Mammals; File No. 15654 part 216), the Endangered Species Act of SUPPLEMENTARY INFORMATION: The AGENCY: National Marine Fisheries 1973, as amended (ESA; 16 U.S.C. 1531 meeting is open to the public. Service (NMFS), National Oceanic and et seq.), and the regulations governing Committee discussion is limited to Atmospheric Administration (NOAA), the taking, importing, and exporting of Forest Service staff and Committee Commerce. endangered and threatened species (50 members. However, persons who wish ACTION: Notice; receipt of application. CFR 222–226). to bring matters to the attention of the The applicant proposes to receive and Committee may file written statements SUMMARY: Notice is hereby given that maintain tissues of bowhead whales to with the Committee staff before or after George Church, Ph.D. (Applicant), sequence the DNA (genome) and RNA the meeting. Public input sessions will Professor of Genetics, Harvard Medical (transcriptome) of the cells. Tissues be provided and individuals who made School, 77 Avenue Louis Pasteur, would be received from a permitted written requests by September 16, 2010 Boston MA 02115, has applied in due laboratory (Permit No. 1008–1637–02 will have the opportunity to form for a permit to receive bowhead issued to John Wise, Ph.D.) and address the committee at those whale (Balaena mysticetus) cells for maintained at Harvard University for sessions. scientific research. the proposed study. No live animals

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would be affected by the proposed should be labeled with the name and DEPARTMENT OF COMMERCE permit. The requested duration of the organizational affiliation of the filer and permit is five years. the name of the word processing International Trade Administration In compliance with the National program used to create the document. [Application No. 92–9A001] Environmental Policy Act of 1969 (42 Comments will be posted at http://www. U.S.C. 4321 et seq.), an initial ntia.doc.gov/internetpolicytaskforce and Export Trade Certificate of Review determination has been made that the http://csrc.nist.gov. activity proposed is categorically ACTION: Notice of Application (#92– excluded from the requirement to FOR FURTHER INFORMATION CONTACT: For 9A001) to amend an export trade prepare an environmental assessment or general questions about this amended certificate of review previously issued to environmental impact statement. Notice contact: Jon Boyens, Aerospace Industries Association of Concurrent with the publication of International Trade Administration, America, Inc. this notice in the Federal Register, U.S. Department of Commerce, 1401 NMFS is forwarding copies of the Constitution Avenue, NW., Room 2806, SUMMARY: The Office of Competition application to the Marine Mammal Washington, DC 20230, telephone (202) and Economic Analysis, International Commission and its Committee of 482–0573, e-mail [email protected]; Trade Administration, U.S. Department Scientific Advisors. or Alfred Lee, National of Commerce, has received an application to amend an Export Trade Dated: September 8, 2010. Telecommunications and Information Certificate of Review (‘‘Certificate’’). This Administration, U.S. Department of P. Michael Payne, notice summarizes the proposed Commerce, 1401 Constitution Avenue, Chief, Permits, Conservation and Education amendment and requests comments Division, Office of Protected Resources, NW., Room 4725, Washington, DC relevant to whether the Certificate National Marine Fisheries Service. 20230, telephone (202) 482–1880, e-mail should be issued. [FR Doc. 2010–22897 Filed 9–13–10; 8:45 am] [email protected]. Please direct media FOR FURTHER INFORMATION CONTACT: BILLING CODE 3510–22–S inquires to the National Institute of Joseph Flynn, Director, Office of Standards and Technology Office of Competition and Economic Analysis, Public and Business Affairs at (301) DEPARTMENT OF COMMERCE International Trade Administration, 975–6478. (202) 482–5131 (this is not a toll-free National Telecommunications and SUPPLEMENTARY INFORMATION: On April number) or by e-mail at Information Administration 21, 2010, the Department of Commerce [email protected]. [Docket No. 100721305–0436–02] (the ‘‘Department’’) announced the SUPPLEMENTARY INFORMATION: Title III of formation of a Commerce-wide Internet the Export Trading Company Act of RIN 0660–XA18 Policy Task Force (‘‘Task Force’’) to 1982 (15 U.S.C. 4001–21) authorizes the Cybersecurity, Innovation and the identify leading public policy and Secretary of Commerce to issue Export Internet Economy operational issues impacting the U.S. Trade Certificates of Review. An Export private sector’s ability to realize the Trade Certificate of Review protects the AGENCY: National Telecommunications potential for economic growth and job holder and the members identified in and Information Administration, U.S. creation through the Internet.1 On July the Certificate from State and Federal Department of Commerce. 28, 2010, the Task Force issued a notice government antitrust actions and from ACTION: Notice of extension of comment of inquiry on the nexus between private treble damage antitrust actions period. cybersecurity challenges in the for the export conduct specified in the commercial sector and innovation in the Certificate and carried out in SUMMARY: The Department of compliance with its terms and Commerce’s Internet Policy Task Force Internet economy, with a closing date 2 conditions. Section 302(b)(1) of the announces that the closing deadline for for comments of September 13, 2010. The Task Force announces that the Export Trading Company Act of 1982 submission of comments responsive to and 15 CFR 325.6(a) requires the the July 28, 2010 notice of inquiry on closing deadline for submission of comments responsive to the July 28, Secretary to publish a notice in the the nexus between cybersecurity Federal Register identifying the 2010 notice has been extended until 5 challenges in the commercial sector and applicant and summarizing its proposed p.m. Eastern Daylight Time (EDT) on innovation in the Internet economy has export conduct. been extended until 5 p.m. Eastern September 20, 2010. Daylight Time (EDT) on September 20, Dated: September 8, 2010. Request for Public Comments 2010. Lawrence E. Strickling, Interested parties may submit written DATES: Comments are due by 5 p.m. Assistant Secretary for Communications and comments relevant to the determination EDT on September 20, 2010. Information. whether an amended Certificate should ADDRESSES: Written comments may be be issued. If the comments include any [FR Doc. 2010–22774 Filed 9–13–10; 8:45 am] submitted by mail to Diane Honeycutt, privileged or confidential business National Institute of Standards and BILLING CODE 3510–60–P information, it must be clearly marked Technology, 100 Bureau Drive, Stop and a nonconfidential version of the 8930, Gaithersburg, MD 20899. comments (identified as such) should be Submissions may be in any of the included. Any comments not marked following formats: HTML, ASCII, Word, privileged or confidential business 1 rtf, or pdf. Online submissions in Commerce Secretary Locke Launches Internet information will be deemed to be Policy Task Force, Department of Commerce Press electronic form may be sent to Release (April 21, 2010), at http://www.commerce. nonconfidential. An original and five (5) [email protected]. Paper gov/news/press-releases/2010/04/21/commerce- copies, plus two (2) copies of the submissions should include a three and secretary-locke-announces-public-review-privacy- nonconfidential version should be one-half inch computer diskette or policy-and-i. submitted no later than 20 days after the compact disc (CD). Diskettes or CDs 2 See 75 Fed. Reg. 44216 (July 28, 2010). date of this notice to: Office of

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Competition and Economic Analysis, Aerospace, Bay Shore, NY; Vermont DEPARTMENT OF COMMERCE International Trade Administration, Composites, Inc., Bennington, VT; U.S. Department of Commerce, Room Xerox Corporation, Norwalk, CT. International Trade Administration 7021X, Washington, DC 20230, or 2. Make the following changes in [A–552–802] transmitted by E-mail at name or address of existing Members: [email protected]. Information submitted Accenture is now located in Chicago, IL, Certain Frozen Warmwater Shrimp by any person is exempt from disclosure with controlling entity Accenture plc, From the Socialist Republic of under the Freedom of Information Act Vietnam: Extension of Preliminary Dublin, Ireland; AAR Manufacturing, (5 U.S.C. 552). However, Results of Antidumping Duty Inc., Wood Dale, IL, is a Member in nonconfidential versions of the Administrative Review comments will be made available to the place of its controlling entity, AAR applicant if necessary for determining Corp., Wood Dale, IL; Barnes Group Inc, AGENCY: Import Administration, whether or not to issue the Certificate. Bristol, CT, has replaced its subsidiary International Trade Administration, Comments should refer to this Barnes Aerospace, Windsor, CT, as the Department of Commerce. application as ‘‘Export Trade Certificate Member; Chromalloy Power Services SUMMARY: The Department of Commerce of Review, application number 92– Corporation, San Antonio, TX, has (‘‘Department’’) is extending the time 9A001.’’ changed its name to Chromalloy (at the limit for the preliminary results of the The original Certificate for Aerospace same location). The controlling entity administrative review of certain frozen Industries Association of America, Inc. remains the Carlyle Group, Washington, warmwater shrimp from the Socialist was issued on April 10, 1992 (57 FR DC; Computer Sciences Corporation Republic of Vietnam (‘‘Vietnam’’). The 13707, April 17, 1992) and last amended (CSC) moved from El Segundo, CA, to review covers the period February 1, on July 7, 2009 (74 FR 138, 2009). A Falls Church, VA; Ducommon 2009, through January 31, 2010. summary of the application for an Incorporated moved from Long Beach, DATES: Effective Date: September 14, amendment follows. CA, to Carson, CA. Elbit Systems of 2010. Summary of the Application America, LLC, Fort Worth, TX, the FOR FURTHER INFORMATION CONTACT: Jerry Applicant: Aerospace Industries controlling entity of EFW Inc., Fort Huang or Susan Pulongbarit, AD/CVD Association of America, Inc. (‘‘AIA’’), Worth, TX, has replaced EFW, Inc., as Operations, Office 9, Import 1000 Wilson Boulevard, Suite 1700, Member. The controlling entity of Elbit Administration, International Trade Arlington, Virginia 22209. Contact: Systems of America, LLC, is Elbit Administration, U.S. Department of Matthew F. Hall, Counsel, Telephone: Systems, Ltd., of Haifa, Israel. Electronic Commerce, 14th Street and Constitution (202) 862–9700. Application No.: 92- Data Systems Corporation, Plano, TX, Avenue, NW., Washington, DC 20230; 9A001. Date Deemed Submitted: August has changed its name to HP Enterprise telephone: (202) 482–4047 or (202) 482– 31, 2010. Proposed Amendment: AIA Services—Aerospace, Palo Alto, CA; 4031, respectively. seeks to amend its Certificate to: General Electric Aviation, Cincinnati, Background 1. Add the following companies as OH, has replaced its controlling entity, new Members of the Certificate within General Electric Company, Fairfield, CT, On April 9, 2010, the Department the meaning of section 325.2(1) of the as Member; Microsat Systems, Inc., published in the Federal Register a Regulations (15 CFR 325.(1)): Littleton, CO, has changed its name to notice of initiation of the administrative Acutec Precision Manufacturing, Inc., reviews of the antidumping duty orders Sierra Nevada Corporation, Space Saegertown, PA; Airdat LLC, on certain frozen warmwater shrimp Systems, Littleton, CO; RTI Morrisville, NC; Alcoa Defense, Crystal from Vietnam and the People’s Republic International Materials Inc., has moved City, VA; Alliant Techsystems, Inc. of China. See Notice of Initiation of (ATK), Minneapolis, MN; ANSYS, Inc., from Niles, OH, to Pittsburgh, PA; Administrative Reviews and Requests Canonsburg, PA; ArmorWorks Science Applications International for Revocation in Part of the Enterprises, LLC, Chandler, AZ; Corporation has moved from San Diego, Antidumping Duty Orders on Certain Bombardier, Montreal, Canada; Broad CA, to McLean, VA; Sparton Frozen Warmwater Shrimp From the Reach Engineering Company, Golden, Corporation, Jackson, MI, has moved Socialist Republic of Vietnam and the CO; Celestica Corporation, Toronto, from San Diego, CA, to McLean, VA; People’s Republic of China, 75 FR 18154 Canada; Deloitte Consulting LLP, New Vought Aircraft Industries, Inc., Dallas, (April 9, 2010). The preliminary results York, NY; Guardsmark, LLC, New York, TX, has changed its name to Triumph of the review for certain frozen NY; Integral Systems, Inc., Columbia, Aerostructures—Vought Aircraft warmwater shrimp from Vietnam is MD; Jabil Defense & Aerospace Services Division. The controlling entity is currently due no later than October 31, LLC. St. Petersburg, FL; KPMG LLP, Triumph Group, Inc., Wayne, PA. 2010. New York, NY; M7 Aerospace L.P., San Dated: September 7, 2010. Antonio, TX; Microsemi Corporation, Statutory Time Limits Irvine, CA; OSI Systems, Inc., Joseph E. Flynn, In antidumping duty administrative Hawthorne, CA; Pacifica Engineering, Director, Office of Competition and Economic reviews, section 751(a)(3)(A) of the Inc., Mukiliteo, WA; Paragon Space Analysis. Tariff Act of 1930, as amended (‘‘the Development Corporation, Tucson, AZ; [FR Doc. 2010–22696 Filed 9–13–10; 8:45 am] Act’’), requires the Department to make Plexus Corporation, Neenah, WI; PWC BILLING CODE 3510–DR–P a preliminary determination within 245 Aerospace & Defense Advisory Services, days after the last day of the anniversary McLean, VA; SAP Public Services, Inc., month of an order for which a review Washington, DC; SRA International, is requested and a final determination Inc., Fairfax, VA; Tech Manufacturing, within 120 days after the date on which LLC, Wright City, MO; Therm, the preliminary results are published. Incorporated, Ithaca, NY; TIMCO However, if it is not practicable to Aviation Services, Inc., Greensboro, NC; complete the review within these time Triumph Group Inc., Wayne, PA; UFC periods, section 751(a)(3)(A) of the Act

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allows the Department to extend the extending the preliminary results of this Initiation of Administrative Review, 75 time limit for the preliminary administrative review to no later than FR 4770 (January 29, 2010) (Initiation determination to a maximum of 365 January 7, 2011. Notice). On February 17, 2010, the days after the last day of the anniversary DATES: Effective Date: September 14, Department informed interested parties month. 2010. to this administrative review of its intent to limit the number of companies FOR FURTHER INFORMATION CONTACT: Extension of Time Limit for Preliminary to be examined. The Department David Cordell or Ericka Ukrow, AD/ Results of Review encouraged all interested parties to CVD Operations, Office 7, Import We determine that it is not practicable submit comments regarding the use of Administration, International Trade to complete the preliminary results of U.S. Customs and Border Protection Administration, U.S. Department of this administrative review within the entry data for respondent selection Commerce, 14th Street and Constitution original time limit because the purposes. See the Memorandum to the Avenue, NW., Washington, DC 20230; Department requires additional time to File, ‘‘United States Customs and Border telephone: (202) 482–0408 and (202) analyze questionnaire responses, issue Protection Entry Data for Selection of 482–0405, respectively. supplemental questionnaires, conduct Respondents for Individual Review,’’ SUPPLEMENTARY INFORMATION: verification, and to evaluate surrogate dated February 17, 2010. On March 5, value submissions. Background 2010, the Department selected the four Therefore, the Department is On December 1, 2009, the Department producers/exporters with the largest extending the time limit for completion published in the Federal Register a export volume during the POR as of the preliminary results of the notice of opportunity to request an mandatory respondents: HoneyMax S.A. administrative review by 120 days. The administrative review of the (HoneyMax), Nexco S.A. (Nexco), preliminary results will now be due no antidumping duty order on, inter alia, Patagonik S.A. (Patagonik), and later than February 28, 2011, the first honey from Argentina. See TransHoney S.A. (TransHoney). See the business day following 120 days from Antidumping or Countervailing Duty Memorandum to Richard Weible, ‘‘ the current deadline. The final results Order, Finding, or Suspended Administrative Review of the continue to be due 120 days after the Investigation; Opportunity to Request Antidumping Duty Order on Honey publication of the preliminary results. Administrative Review, 74 FR 62743 from Argentina: Respondent Selection ’’ We are issuing and publishing this (December 1, 2009). In response and Memorandum, dated March 5, 2010. notice in accordance with sections pursuant to 19 CFR 351.213(b)(2), on On March 9, 2010, the Department 751(a)(3)(A) and 777(i) of the Act. December 31, 2009, the Asociacion de issued its antidumping duty questionnaire to all four mandatory Dated: September 8, 2010. Cooperativas Argentinas S.A. (ACA), Nexco S.A. (Nexco), and Compania respondents. On March 31, 2010 and Susan H. Kuhbach, pursuant to 19 CFR 351.213(d)(1), Acting Deputy Assistant Secretary for Inversora Platense S.A. (CIPSA) requested an administrative review of petitioners timely withdrew their Antidumping and Countervailing Duty request for review of Honey Max. On Operations. the antidumping duty order on honey from Argentina for the period December April 7, 2010, petitioners and Nexco [FR Doc. 2010–22891 Filed 9–13–10; 8:45 am] timely withdrew their requests for BILLING CODE 3510–DS–P 1, 2008, through November 30, 2009. Pursuant to 19 CFR 351.213(b)(1), the review for Nexco. On April 16, 2010, American Honey Producers Association petitioners timely withdrew their request for review with respect to all DEPARTMENT OF COMMERCE and the Sioux Honey Association (collectively, petitioners), also on companies except TransHoney, International Trade Administration December 31, 2009, requested that the Patagonik, CIPSA, and ACA. Accordingly, the Department informed [A–357–812] Department conduct an administrative review of the antidumping duty order interested parties of its intent to rescind the review for all companies except Honey From Argentina: Notice of on honey from Argentina for the December 1, 2008, through November TransHoney, Patagonik, and CIPSA, to Extension of Time Limit for Preliminary continue with its deferral of the review Results and Partial Rescission of 30, 2009 period of review (POR) of entries of subject merchandise made by with respect to ACA, and to select Antidumping Duty Administrative CIPSA as a mandatory respondent. See Review eighteen Argentine producers/exporters. On January 29, 2010, the Department the Memorandum to the File, ‘‘2008/ AGENCY: Import Administration, initiated a review on seventeen 2009 Administrative Review of the International Trade Administration, companies 1 for which an administrative Antidumping Duty Order on Honey Department of Commerce. review was requested. See Initiation of from Argentina: Selection of New Antidumping and Countervailing Duty Mandatory Respondent,’’ dated April 19, SUMMARY: The U.S. Department of 2010. Commerce (the Department) is Administrative Reviews, Request for Revocation in Part, and Deferral of On April 29, 2010, ACA timely rescinding in part the administrative withdrew its request for review review of the antidumping duty order 2 1 The Federal Register notice lists eighteen submitted on December 31, 2009. on honey from Argentina for the period companies; however, the Department received a December 1, 2008, to November 30, timely request by ACA to defer for one year the 2 The withdrawal of the request for review was 2009 with respect to fifteen companies. initiation of the December 1, 2008, through submitted by ACA based on the Department’s This rescission, in part, is based on the November 30, 2009 administrative review of its notification in the Federal Register revoking the sales and entries of honey subject to the antidumping duty order with respect to honey timely withdrawal of the request for antidumping duty order on honey from Argentina exported by ACA effective December 1, 2008. review by the interested parties that in accordance with 19 CFR 351.213(c). The Because the order covering honey from Argentina requested the review. A complete list of Department received no objections to this request is revoked with respect to ACA, all entries of the companies for which the from any party cited in 19 CFR 351.213(c)(1)(ii), subject merchandise exported by ACA will be and therefore deferred for one year the initiation of liquidated without antidumping duties. administrative review is being rescinded the review for such exporter in accordance with 19 Accordingly, there will be no relevant entries that is provided in the background section CFR 351.213(c). See Initiation Notice, 75 FR at might be subject to an antidumping review. See below. Additionally, the Department is 4772–73. Continued

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Period of Review which a review is requested. However, Notification Regarding Administrative The POR is December 1, 2008, if it is not practicable to complete the Protective Orders through November 30, 2009. review within this time period, section This notice also serves as a reminder 751(a)(3)(A) of the Act allows the to parties subject to administrative Scope of the Order Department to extend the time limit for protective order (APO) of their The product covered by the order is the preliminary results to a maximum of responsibility concerning the honey from Argentina. The products 365 days after the last day of the disposition of proprietary information covered are natural honey, artificial anniversary month of an order for which disclosed under APO in accordance honey containing more than 50 percent a review is requested. with section 351.305(a)(3) of the natural honey by weight, preparations of The Department has determined it is Department’s regulations. Timely natural honey containing more than 50 not practicable to complete this review written notification of the return or percent natural honey by weight, and within the statutory time limit because destruction of APO materials or flavored honey. The subject we require additional time to gather cost conversion to judicial protective order is merchandise includes all grades and of production data for Patagonik’s hereby requested. Failure to comply colors of honey whether in liquid, suppliers of honey and sales with the regulations and terms of an creamed, comb, cut comb, or chunk information from CIPSA. The time APO is a sanctionable violation. form, and whether packaged for retail or needed to analyze cost of production This notice is issued and published in in bulk form. data and CIPSA’s sales information and accordance with section 351.213(d)(4) of The merchandise subject to the order to develop fully the record in this the Department’s regulations and is currently classifiable under administrative review makes it sections 751(a)(3)(A) and 777(i)(1) of the subheadings 0409.00.00, 1702.90.90, impracticable to complete the Act. preliminary results of this review within and 2106.90.99 of the Harmonized Tariff Dated: September 8, 2010. Schedule of the United States (HTSUS). the originally specified time limit. Susan H. Kuhbach, Although the HTSUS subheadings are Accordingly, the Department is extending the time limit for completion Acting Deputy Assistant Secretary for provided for convenience and customs, Antidumping and Countervailing Duty the Department’s written description of of the preliminary results of this Operations. the merchandise under this order is administrative review to the maximum [FR Doc. 2010–22899 Filed 9–13–10; 8:45 am] dispositive. of 365 days. BILLING CODE 3510–DS–P Rescission, in Part, of Administrative Tolling of Deadlines Review In addition, the Department exercised DEPARTMENT OF COMMERCE Pursuant to 19 CFR 351.213(d)(1), the its discretion to toll deadlines for the Secretary will rescind an administrative duration of the closure of the Federal International Trade Administration review under this section, in whole or Government from February 5, through in part, if a party that requested a review February 12, 2010, as explained in the [A–533–820] withdraws the request within 90 days of memorandum from the Deputy Certain Hot–Rolled Carbon Steel Flat the date of publication of notice of Assistant Secretary (DAS) for Import Products from India: Extension of Time initiation of the requested review. Administration. Thus, all deadlines in Limit for Preliminary Results of the Based on petitioners’ and this segment of the proceeding were Antidumping Duty Administrative respondents’ withdrawal of their extended by seven days. See Review requests of administrative review within Memorandum to the Record from the 90-day deadline, the Department is Ronald Lorentzen, DAS for Import AGENCY: Import Administration, rescinding, in part, the antidumping Administration, regarding International Trade Administration, duty administrative review on honey ‘‘Tolling of Administrative Deadlines Department of Commerce. from Argentina for the period December As a Result of the Government Closure EFFECTIVE DATE: September 14, 2010. 1, 2008 to November 30, 2009 with During the Recent Snowstorm,’’ dated FOR FURTHER INFORMATION CONTACT: respect to the following companies: February 12, 2010. Therefore, the Christopher Hargett or James Terpstra, AGLH S.A., Algodonera Avellaneda deadline for the preliminary results of AD/CVD Operations Office 3, Import S.A., Alimentos Naturales-Natural this review became no later than Administration, International Trade Foods, Alma Pura, Bomare S.A., January 7, 2011. We intend to issue the Administration, U.S. Department of Compania Apicola Argentina S.A., El final results no later than 120 days after Commerce, 14th Street and Constitution Mana S.A., Interrupcion S.A., Mielar publication of the notice of our Avenue, NW, Washington, DC 20230; S.A., Miel Ceta SRL., Productos Afer preliminary results of review. telephone: (202) 482–4161 and (202) S.A., Seabird Argentina S.A., Honey Notification to Parties 482–3965, respectively. Max, Nexco, and ACA. SUPPLEMENTARY INFORMATION: This notice serves as a reminder to Extension of Time Limit for Preliminary Background Results importers of their responsibility under section 351.402(f) of the Department’s On January 29, 2010, the Department Section 751(a)(3)(A) of the Tariff Act regulations to file a certificate regarding published a notice of initiation of of 1930, as amended (the Act), requires the reimbursement of antidumping antidumping duty administrative review the Department to complete the duties prior to liquidation of the of certain hot–rolled carbon steel flat preliminary results of an administrative relevant entries during this period of products from India for the period review within 245 days after the last day time. Failure to comply with this December 1, 2008, through November of the anniversary month of an order for requirement could result in the 30, 2009. See Initiation of Antidumping Secretary’s presumption that and Countervailing Duty Administrative Honey from Argentina: Final Results of Antidumping Duty Administrative Review and reimbursement of antidumping duties Reviews, Request for Revocation in Part, Determination to Revoke Order in Part, 75 FR 23674 occurred and subsequent assessment of and Deferral of Initiation of (May 4, 2010). double antidumping duties. Administrative Review, 75 FR 4770

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(January 29, 2010) (‘‘Initiation Notice’’). DEPARTMENT OF COMMERCE any decisions made at this meeting and The current deadline for the preliminary allow the SSC to ratify those decisions. results of this administrative review is National Oceanic and Atmospheric Notice of the webinar will be published September 9, 2010.1 Administration in the Federal Register. Statutory Time Limits RIN 0648–XY96 Special Accommodations Mid-Atlantic Fishery Management The meeting is physically accessible Section 751(a)(3)(A) of the Tariff Act to people with disabilities. Requests for ‘‘ ’’ Council; Public Meeting of 1930, as amended ( the Act ), sign language interpretation or other requires the Department to issue the AGENCY: National Marine Fisheries auxiliary aids should be directed to M. preliminary results of an administrative Service (NMFS), National Oceanic and Jan Saunders at the Mid-Atlantic review within 245 days after the last day Atmospheric Administration (NOAA), Council Office, (302) 526–5251, at least of the anniversary month of an order for Commerce. 5 days prior to the meeting date. which a review is requested and the ACTION: Notice of public meeting. final results of review within 120 days Dated: September 9, 2010. after the date on which the preliminary SUMMARY: The Mid-Atlantic Fishery Tracey L. Thompson, results are published. If it is not Management Council’s (MAFMC) Acting Director, Office of Sustainable practicable to complete the review Scientific and Statistical Committee Fisheries, National Marine Fisheries Service. within the time period, section (SSC) will hold a public meeting. [FR Doc. 2010–22866 Filed 9–13–10; 8:45 am] 751(a)(3)(A) of the Act allows the DATES: The meeting will be held on BILLING CODE 3510–22–S Department to extend these deadlines to Tuesday, September 21, 2010, from 9 a maximum of 365 days and 180 days, a.m. to 5 p.m. and Wednesday, DEPARTMENT OF COMMERCE respectively. September 22, 2010, from 8:30 a.m. to 5 p.m. Extension of Time Limit for Preliminary National Oceanic and Atmospheric Results ADDRESSES: The meeting will be held at Administration the Sheraton Four Points, 7032 Elm RIN 0648–XZ02 The Department requires additional Road, Baltimore, MD 21240; telephone: time to review and analyze the status of (410) 859–3300. North Pacific Fishery Management entries subject to this administrative Council address: Mid-Atlantic Fishery Council; Public Meeting review. Thus, it is not practicable to Management Council, 800 N. State complete this review within the Street, Suite 201, Dover, DE 19901; AGENCY: National Marine Fisheries originally anticipated time limit (i.e., by telephone: (302) 674–2331. Service (NMFS), National Oceanic and September 9, 2010). Therefore, in FOR FURTHER INFORMATION CONTACT: Atmospheric Administration (NOAA), accordance with section 751(a)(3)(A) of Christopher M. Moore Ph.D., Executive Commerce. the Act, the Department is extending the Director, Mid-Atlantic Fishery ACTION: Notice of a public meeting of the time limit for completion of the Management Council, 800 N. State North Pacific Fishery Management preliminary results by 120 days. The Street, Suite 201, Dover, DE 19901; Council and Alaska Board of Fisheries preliminary results are now due no later telephone: (302) 526–5255. Joint Protocol Committee. than January 7, 2011. The final results SUPPLEMENTARY INFORMATION: Agenda SUMMARY: The North Pacific Fishery continue to be due 120 days after items to be discussed at the SSC Management Council (Council) Joint publication of the preliminary results. meeting include: (1) new SSC member Protocol Committee of the Alaska Board This notice is issued and published in orientation; (2) review stock assessment of Fisheries and Council will meet on in accordance with sections 751(a)(3)(A) information and specify overfishing Anchorage, AK. level and acceptable biological catch for and 777(i)(1) of the Act. DATES: The meeting will be held on spiny dogfish for fishing years 2011–15; October 5, 2010, from 1 p.m. to 5 p.m. Dated: September 8, 2010. review and comment on proposed quota ADDRESSES: Susan H. Kuhbach, specifications and management The meeting will be held at measures for spiny dogfish for fishing the Captain Cook Hotel, 939 West 5th Acting Deputy Assistant Secretary for Avenue, Quarterdeck (Tower 1, 10th Antidumping and Countervailing Duty years 2011–15; (3) progress report on Operations. Management Strategy Evaluation study; Floor) Anchorage, AK. Council address: North Pacific (4) review and comment on Council five [FR Doc. 2010–22877 Filed 9–13–10; 8:45 am] Fishery Management Council, 605 W. year research plan; (5) discuss results of BILLING CODE 3510–DS–S 4th Ave., Suite 306, Anchorage, AK August 12–13, 2010 ACL Workshop and 99501–2252. planned follow-up joint workshop with 1 As explained in the memorandum from the FOR FURTHER INFORMATION CONTACT: Deputy Assistant Secretary for Import NEFSC and New England Fishery Administration, the Department has exercised its Management Council’s SSC; (6) develop Council staff; telephone: (907) 271– discretion to toll deadlines for the duration of the recommendations for stock assessment 2809. closure of the Federal Government from February SUPPLEMENTARY INFORMATION: 5, through February 12, 2010. See Memorandum to schedule; (7) set 2011 SSC schedule; (8) The the Record from Ronald Lorentzen, DAS for Import discuss development of Industry Committee will review the following: Administration, regarding ‘‘Tolling of Advisory Panel Reports; and (9) discuss pending actions for Annual Catch Administrative Deadlines As a Result of the formation of SSC Ecosystem Limits (ACLs) for crab and scallops; Government Closure During the Recent Snowstorm,’’ dated February 12, 2010. Thus, all Subcommittee and development of background on Council sector split deadlines in this segment of the proceeding were ecosystem terms of reference for the action and jig fishery for Gulf (GOA) of extended by seven days. The revised deadline for Council. Alaska Pacific cod fishery management; the preliminary results of the 2008-2009 To correct an administrative error in Board schedule for accepting State antidumping duty administrative review is therefore September 9, 2010. The final results of providing timely notice of this meeting, regulatory proposals for coordination this review continue to be due 120 days after the the Mid-Atlantic Council will conduct a with pending federal GOA action; ACL publication of the preliminary results. webinar to allow public comment on requirements and Fishery Management

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Plan (FMP) considerations for Salmon; Council address: North Pacific 6. GOA Tanner Crab Bycatch: Final proposals and agenda change requests of Fishery Management Council, 605 W. action to close areas to minimize common interest; recent federal action 4th Avenue, Suite 306, Anchorage, AK bycatch of Tanner crabs. on salmon bycatch actions; pending 99501–2252. 7. Arrowtooth Flounder Maximum action on Hagemeister Island walrus FOR FURTHER INFORMATION CONTACT: Retainable Amounts (MRAs): Final protection; pending action on closure David Witherell, Council staff; action to revise MRAs of groundfish in areas to reduce GOA Tanner crab telephone: (907) 271–2809. BSAI arrowtooth fishery. 8. Research Priorities: Finalize 5-year bycatch; status of the Steller Sea Lion SUPPLEMENTARY INFORMATION: The Biological Opinion. research priorities. Council will begin its plenary session at 9. BSAI Crab Issues: Initial review Although non-emergency issues not 8 a.m. on Wednesday, October 6 contained in this agenda may come Pribilof Bristol Bay Red King Crab continuing through Tuesday, October rebuilding plan; review discussion before this group for discussion, in 12. The Council’s Advisory Panel (AP) accordance with the Magnuson-Stevens paper on Economic Data Collection, will begin at 8 a.m., Monday, October 4 action as necessary. Fishery Conservation and Management and continue through Friday, October 8. Act (Magnuson-Stevens Act), those 10. Groundfish Specifications: The Scientific and Statistical Committee Receive Plan Team report; adopt issues may not be the subject of formal (SSC) will begin at 8 a.m. on Monday, action during this meeting. Actions will proposed catch limits. October 4 and continue through 11. Miscellaneous Issues: Review be restricted to those issues specifically Wednesday, October 6, 2010. The identified in this notice and any issues discussion paper on GOA halibut Enforcement Committee will meet Prohibited Species Catch (PSC) (T); arising after publication of this notice Tuesday, October 5 from 1 p.m. to 5 that require emergency action under review regulations and forms - BSAI p.m. All meetings are open to the Chinook Salmon Bycatch Electronic Section 305(c) of the Magnuson-Stevens public, except executive sessions. Act, provided the public has been Data Reporting; annual review notified of the Council’s intent to take Council Plenary Session: Groundfish Workplan; preliminary final action to address the emergency. screening of Habitat Areas of Particular The agenda for the Council’s plenary Concern (HAPC). Special Accommodations session will include the following 12. Staff Tasking: Review Committees issues. The Council may take This meeting is physically accessible and tasking. appropriate action on any of the issues 13. Other Business to people with disabilities. Requests for identified. sign language interpretation or other The SSC agenda will include the auxiliary aids should be directed to Gail Reports: following issues: 1. BSAI Crab ACLs/Rebuilding Bendixen at (907) 271–2809 at least 7 1. Executive Director’s Report working days prior to the meeting date. 2. BSAI Crab SAFE/OFLs NMFS Management Report (including 3. Scallop ACLs Dated: September 9, 2010. review of the draft regulations to 4. BSAI Crab Issues Tracey L. Thompson, implement the Council’s (1) halibut 5. Research Priorities Acting Director, Office of Sustainable catch sharing plan and (2) Gulf of 6. Groundfish Specifications Fisheries, National Marine Fisheries Service. Alaska (GOA) rockfish program catch The Advisory Panel will address most [FR Doc. 2010–22865 Filed 9–13–10; 8:45 am] share program for consistency with of the same agenda issues as the BILLING CODE 3510–22–S Council intent when it adopted these Council, except for ι1 reports. The programs in October 2008 and June Agenda is subject to change, and the 2010) latest version will be posted at http:// DEPARTMENT OF COMMERCE ADF&G Report (including final www.alaskafisheries.noaa.gov/npfmc/ estimates of 2009 charter halibut catches Although non-emergency issues not National Oceanic and Atmospheric in 2C and 3A) contained in this agenda may come Administration NOAA Enforcement Report before the Council for discussion, in RIN 0648–XY98 U.S. Coast Guard Report accordance with the Magnuson-Stevens U.S. Fish & Wildlife Service Report Fishery Conservation and Management North Pacific Fishery Management Protected Species Report (Report from Act (Magnuson-Stevens Act), those Council; Public Meetings NMFS on Steller Sea Lion (SSL) issues may not be the subject of formal Reasonable and Prudent Alternative action during these meetings. Actions AGENCY: National Marine Fisheries (RPA) measures; Council discussion of will be restricted to those issues Service (NMFS), National Oceanic and next steps) specifically identified in this notice and Atmospheric Administration (NOAA), 2. Observer Program Restructuring: any issues arising after publication of Commerce. Receive report from Observer this notice that require emergency ACTION: Notice of public meetings. Committee; final action on program action under Section 305(c) of the restructuring. Magnuson-Stevens Act, provided the SUMMARY: The North Pacific Fishery 3. Bering Sea Aleutian Island (BSAI public has been notified of the Council’s Management Council (Council) and its Crab Stock Assessment Fishery intent to take final action to address the advisory committees will hold public Evaluation (SAFE) report and emergency. meetings, October 4–12, 2010. Overfishing Limits (OFLs): Review and DATES: The meetings will be held approve SAFE and annual catch Special Accommodations Monday, October 4, 2010 through specifications. These meetings are physically Tuesday, October 12, 2010. See 4. BSAI Crab Annual Catch Limits accessible to people with disabilities. SUPPLEMENTARY INFORMATION for specific (ACLs)/snow crab Rebuilding Plan: Requests for sign language dates and times. Final action on amendment to establish interpretation or other auxiliary aids ADDRESSES: The meetings will be held at ACLs and rebuilding plan. should be directed to Gail Bendixen at the Captain Cook Hotel, 939 West 5th 5. Scallop ACLs: Final action to (907) 271–2809 at least 7 working days Avenue, Anchorage, AK. establish scallop ACLs. prior to the meeting date.

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Dated: September 9, 2010. Act, provided the public has been U.S.C. 1361 et seq.), and the regulations Tracey L. Thompson, notified of the CPSMT’s and SSC governing the taking and importing of Acting Director, Office of Sustainable Subcommittee’s intent to take final marine mammals (50 CFR part 216). Fisheries, National Marine Fisheries Service. action to address the emergency. Permit No. 87–1851–03 authorizes the permit holder to conduct a metabolic [FR Doc. 2010–22864 Filed 9–13–10; 8:45 am] Special Accommodations BILLING CODE 3510–22–S study on eight of 40 Weddell seals This meeting is physically accessible authorized for capture, tagging, and to people with disabilities. Requests for sampling in the Ross Sea. Permit No. DEPARTMENT OF COMMERCE sign language interpretation or other 87–1851–03 expires on January 31, auxiliary aids should be directed to Ms. 2012. National Oceanic and Atmospheric Carolyn Porter at (503) 820–2280 at least In compliance with the National Administration 5 days prior to the meeting date. Environmental Policy Act of 1969 (42 RIN 0648–XY94 Dated: September 9, 2010. U.S.C. 4321 et seq.), a final Tracey L. Thompson, determination has been made that the activity proposed is categorically Pacific Fishery Management Council; Acting Director, Office of Sustainable Public Meeting Fisheries, National Marine Fisheries Service. excluded from the requirement to prepare an environmental assessment or [FR Doc. 2010–22813 Filed 9–13–10; 8:45 am] AGENCY: National Marine Fisheries environmental impact statement. Service (NMFS), National Oceanic and BILLING CODE 3510–22–S Atmospheric Administration (NOAA), Dated: September 7, 2010. Commerce. P. Michael Payne, DEPARTMENT OF COMMERCE Chief, Permits, Conservation and Education ACTION: Notice of public meeting. Division, Office of Protected Resources, SUMMARY: The Pacific Fishery National Oceanic and Atmospheric National Marine Fisheries Service. Management Council’s (Pacific Council) Administration [FR Doc. 2010–22895 Filed 9–13–10; 8:45 am] Coastal Pelagic Species Management RIN 0648–XS41 BILLING CODE 3510–22–S Team (CPSMT) and Scientific and Statistical Committee’s Subcommittee Marine Mammals; File No. 87–1851 on Coastal Pelagic Species (SSC DEPARTMENT OF COMMERCE AGENCY: National Marine Fisheries Subcommittee) will hold a joint meeting Service (NMFS), National Oceanic and International Trade Administration that is open to the public. Atmospheric Administration (NOAA), [C–580–818] DATES: The meeting will be held Commerce. Tuesday, October 5 through Thursday, ACTION: Notice; issuance of permit October 7. Business will begin each day Corrosion-Resistant Carbon Steel Flat amendment. at 8:30 a.m. and conclude Tuesday and Products From the Republic of Korea: Preliminary Results and Partial Wednesday at 5 p.m. or until business SUMMARY: Notice is hereby given that for the day is completed. The meeting Rescission of Countervailing Duty Daniel P. Costa, Ph.D., University of Administrative Review will conclude Thursday October 7 at 4 California at Santa Cruz, Long Marine p.m. or when business for the day is Laboratory, 100 Shaffer Road, Santa AGENCY: Import Administration, completed. Cruz, CA has been issued a major International Trade Administration, ADDRESSES: The meeting will be held in amendment to Permit No. 87–1851–02. Department of Commerce. the Green Room of the National Marine ADDRESSES: The permit amendment and SUMMARY: The Department of Commerce Fisheries Service’s Southwest Fisheries related documents are available for (the Department) is conducting an Science Center; 8604 La Jolla Shores review upon written request or by administrative review of the Drive, La Jolla, CA 92037. appointment in the following office(s): countervailing duty (CVD) order on FOR FURTHER INFORMATION CONTACT: Permits, Conservation and Education corrosion-resistant carbon steel flat Kerry Griffin, Staff Officer; telephone: Division, Office of Protected Resources, products (CORE) from the Republic of (503) 820–2280. NMFS, 1315 East-West Highway, Room Korea (Korea) for the period of review (POR) January 1, 2008, through SUPPLEMENTARY INFORMATION: The 13705, Silver Spring, MD 20910; phone December 31, 2008. As a result of primary purpose of the meeting is to (301)713–2289; fax (301)713–0376; and withdrawals of request for review, we review the updated Pacific sardine stock Southwest Region, NMFS, 501 West are rescinding this review, in part, with assessment for 2010. Other issues Ocean Blvd., Suite 4200, Long Beach, respect to Dongbu Steel Co., Ltd. relevant to Coastal Pelagic Species CA 90802–4213; phone (562)980–4001; (Dongbu) and Pohang Iron and Steel Co., fisheries management and science may fax (562)980–4018. Ltd. (POSCO). For information on the be addressed as time permits. FOR FURTHER INFORMATION CONTACT: net subsidy for Hyundai HYSCO Ltd. Although non-emergency issues not Amy Sloan or Tammy Adams, Ph.D., (HYSCO) the company reviewed, see the contained in the meeting agenda may (301)713–2289. ‘‘Preliminary Results of Review’’ section come before the CPSMT and SSC SUPPLEMENTARY INFORMATION: On July 8, of this notice. Interested parties are Subcommittee for discussion, those 2010, notice was published in the invited to comment on these issues may not be the subject of formal Federal Register (75 FR 39206) that a preliminary results. See the ‘‘Public action during this meeting. CPSMT and request for an amendment to Permit No. Comment’’ section of this notice. SSC Subcommittee action will be 87–1851–02 to conduct research on restricted to those issues specifically Weddell seals (Leptonychotes weddellii) DATES: Effective Date: September 14, listed in this notice and any issues had been submitted by the above-named 2010. arising after publication of this notice applicant. The requested permit FOR FURTHER INFORMATION CONTACT: that require emergency action under amendment has been issued under the Gayle Longest, AD/CVD Operations, Section 305(c) of the Magnuson-Stevens authority of the Marine Mammal Office 3, Import Administration, Fishery Conservation and Management Protection Act of 1972, as amended (16 International Trade Administration,

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U.S. Department of Commerce, Room August 6, 2010, the Department subheadings are provided for 4014, 14th Street and Constitution Ave., received supplemental questionnaire convenience and customs purposes, the NW., Washington, DC 20230; telephone: responses from the GOK and HYSCO. Department’s written description of the (202) 482–3338. On April 9, 2010, the Department merchandise is dispositive. published in the Federal Register an SUPPLEMENTARY INFORMATION: Average Useful Life extension of its preliminary results of Background the instant administrative review. See Under 19 CFR 351.524(d)(2), we will On August 17, 1993, the Department Corrosion-Resistant Carbon Steel Flat presume the allocation period for non- published in the Federal Register the Products from the Republic of Korea: recurring subsidies to be the average CVD order on CORE from Korea. See Notice of Extension of Preliminary useful life (AUL) of renewable physical Countervailing Duty Orders and Results of Countervailing Duty assets for the industry concerned as Amendments of Final Affirmative Administrative Review, 75 FR 18153 listed in the Internal Revenue Service’s Countervailing Duty Determinations: (April 9, 2010). (IRS) 1997 Class Life Asset Depreciation Certain Steel Products from Korea, 58 In accordance with 19 CFR Range System, as updated by the FR 43752 (August 17, 1993). On August 351.213(b), this review covers only Department of the Treasury. The 3, 2009, the Department published a those producers or exporters for which presumption will apply unless a party notice of opportunity to request an a review was specifically requested. The claims and establishes that the IRS administrative review of this CVD order. company that continues to be subject to tables do not reasonably reflect the See Antidumping or Countervailing this review is HYSCO. company-specific AUL or the country- Duty Order, Finding, or Suspended Scope of Order wide AUL for the industry under Investigation: Opportunity To Request examination and that the difference Administrative Review, 74 FR 38397 Products covered by this order are between the company-specific and/or (August 3, 2009). certain corrosion-resistant carbon steel country-wide AUL and the AUL from On August 31, 2009, we received a flat products from Korea. These the IRS tables is significant. According timely request for review from Dongbu products include flat-rolled carbon steel to the IRS tables, the AUL of the steel Steel Co., Ltd. (Dongbu), Hyundai products, of rectangular shape, either industry is 15 years. No interested party HYSCO Ltd. (HYSCO), and Pohang Iron clad, plated, or coated with corrosion- challenged the 15-year AUL derived and Steel Co., Ltd. (POSCO). On resistant metals such as zinc, aluminum, from the IRS tables. Thus, in this September 22, 2009, the Department or zinc-, aluminum-, nickel- or iron- review, we have allocated, where published a notice of initiation of the based alloys, whether or not corrugated applicable, all of the non-recurring administrative review of the CVD order or painted, varnished or coated with subsidies provided to the producers/ on CORE from Korea covering the plastics or other nonmetallic substances exporters of subject merchandise over a in addition to the metallic coating, in period January 1, 2008, through 15-year AUL. December 31, 2008. See Initiation of coils (whether or not in successively Antidumping and Countervailing Duty superimposed layers) and of a width of Subsidies Valuation Information 0.5 inch or greater, or in straight lengths Administrative Reviews and Requests A. Benchmarks for Short-Term which, if of a thickness less than 4.75 for Revocation in Part (Initiation), 74 FR Financing 48224 (September 22, 2009). On October millimeters, are of a width of 0.5 inch 14, 2009, and October 23, 2009, POSCO or greater and which measures at least For those programs requiring the and Dongbu withdrew their requests for 10 times the thickness or if of a application of a won-denominated, review, respectively. thickness of 4.75 millimeters or more short-term interest rate benchmark, in Under 19 CFR 351.213(d)(1), the are of a width which exceeds 150 accordance with 19 CFR Department will rescind an millimeters and measures at least twice 351.505(a)(2)(iv), we used as our administrative review, in whole or in the thickness. The merchandise subject benchmark the company-specific part, if a party that requested a review to this order is currently classifiable in weighted-average interest rate for withdraws the request within 90 days of the Harmonized Tariff Schedule of the commercial won-denominated loans the date of publication of the notice of United States (HTSUS) at subheadings: outstanding during the POR. This initiation of the requested review. 7210.30.0000, 7210.31.0000, approach is in accordance with 19 CFR The Initiation was published on 7210.39.0000, 7210.41.0000, 351.505(a)(3)(i) and the Department’s September 22, 2009. Dongbu and 7210.49.0030, 7210.49.0090, practice. See, e.g., Corrosion–Resistant POSCO submitted timely requests for 7210.60.0000, 7210.61.0000, Carbon Steel Flat Products From the withdrawal on October 14, 2009, and 7210.70.6030, 7210.70.6060, Republic of Korea: Final Results of October 23, 2009, respectively. No other 7210.70.6090, 7210.90.1000, Countervailing Duty Administrative party requested administrative reviews 7210.90.6000, 7210.90.9000, Review, 74 FR 2512 (January 15, 2009) of Dongbu and POSCO. Therefore, we 7212.20.0000, 7212.21.0000, (Final Results of CORE from Korea are rescinding, in part, this review of the 7212.29.0000, 7212.30.1030, 2006), and accompanying Issues and countervailing duty order of CORE from 7212.30.1090, 7212.30.3000, Decision Memorandum (CORE from Korea with regard to Dongbu and 7212.30.5000, 7212.40.1000, Korea 2006 Decision Memorandum) at POSCO. 7212.40.5000, 7212.50.0000, ‘‘Benchmarks for Short-Term On November 2, 2009, the Department 7212.60.0000, 7215.90.1000, 7215.9030, Financing.’’ issued the initial questionnaire to 7215.90.5000, 7217.12.1000, HYSCO, and the Government of Korea 7217.13.1000, 7217.19.1000, B. Benchmark for Long-Term Loans (GOK). On December 22, 2009, the 7217.19.5000, 7217.20.1500, During the POR, HYSCO had Department received questionnaire 7217.22.5000, 7217.23.5000, outstanding countervailable long-term responses from HYSCO and the GOK. 7217.29.1000, 7217.29.5000, won-denominated loans from On February 17, 2010, and July 13, 7217.30.15.0000, 7217.32.5000, government-owned banks and Korean 2010, the Department issued 7217.33.5000, 7217.39.1000, commercial banks. We used the supplemental questionnaires to GOK 7217.39.5000, 7217.90.1000 and following benchmarks to calculate the and HYSCO. On March 17, 2010, and 7217.90.5000. Although the HTSUS subsidies attributable to respondents’

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countervailable long-term loans countervailable fixed-rate loans, financing under this program was less obtained through 2008: pursuant to 19 CFR 351.505(a)(2)(iii), than the amount of interest that would (1) For countervailable, won- we used benchmark rates issued in the have been paid on a comparable short- denominated long-term loans, we used, same year that the government loans term commercial loan. See discussion where available, the company-specific were issued. above in the ‘‘Subsidies Valuation interest rates on the company’s Information’’ section with respect to I. Programs Determined To Be comparable commercial, won- short-term loan benchmark interest denominated loans. If such loans were Countervailable rates. In addition, we preliminarily not available, we used, where available, A. Short-Term Export Financing determine that the program is specific, the company-specific corporate bond Export-Import Bank of Korea (KEXIM) pursuant to section 771(5A)(A) of the rate on the company’s public and supplies two types of short-term loans Act, because receipt of the financing is private bonds, as we have determined for exporting companies, short-term contingent upon exporting. HYSCO that the GOK did not control the Korean trade financing and comprehensive reported using short-term export domestic bond market after 1991. See, export financing. See the GOK’s financing during the POR. e.g., Final Negative Countervailing Duty Pursuant to 19 CFR 351.505(a)(1), to December 22, 2009, questionnaire Determination: Stainless Steel Plate in calculate the benefit under this program, response (QR) at Exhibit J–1. KEXIM Coils from the Republic of Korea, 64 FR we compared the amount of interest provides short-term loans to Korean 15530, 15531 (March 31, 1999) paid under the program to the amount exporters that manufacture goods under (Stainless Steel Investigation) and of interest that would have been paid on export contracts. Id. The loans are ‘‘Analysis Memorandum on the Korean a comparable commercial loan. As our provided up to the amount of the bill of Domestic Bond Market’’ (March 9, 1999). benchmark, we used the short-term The use of a corporate bond rate as a exchange or contracted amount, less any interest rates discussed above in the long-term benchmark interest rate is amount already received. Id. For ‘‘Subsidies Valuation Information’’ consistent with the approach the comprehensive export financing loans, section. To calculate the net subsidy Department has taken in several prior KEXIM supplies short-term loans to any rate, we divided the benefit by the free Korean CVD proceedings. See Id.; see small or medium-sized company, or any on board (f.o.b.) value of the respective also Final Affirmative Countervailing large company that is not included in company’s total exports. On this basis, Duty Determination: Structural Steel the five largest conglomerates based on we determine the net subsidy rate to be Beams from the Republic of Korea (H their comprehensive export 0.03 percent ad valorem for HYSCO. Beams Investigation), 65 FR 41051 (July performance. Id. To obtain the loans, B. Reduction in Taxes for Operation in 3, 2000), and accompanying Issues and companies must report their export Regional and National Industrial Decision Memorandum at ‘‘Benchmark performance periodically to KEXIM for Complexes Interest Rates and Discount Rates;’’ and review. Id. Comprehensive export Final Affirmative Countervailing Duty financing loans cover from 50 to 90 Under Article 46 of the Industrial Determination: Dynamic Random percent of the company’s export Cluster Development and Factory Access Memory Semiconductors from performance. Id. Establishment Act (Industrial Cluster the Republic of Korea, 68 FR 37122 In Steel Products from Korea, the Act), a state or local government may (June 23, 2003) (DRAMS Investigation), Department determined that the GOK’s provide tax exemptions as prescribed by and accompanying Issues and Decision short-term export financing program the Restriction of Special Taxation Act. Memorandum at ‘‘Discount Rates and was countervailable. See Final In accordance with this authority, Benchmark for Loans.’’ Specifically, in Affirmative Countervailing Duty Article 276 of the Local Tax Act those cases, we determined that, absent Determinations and Final Negative provides that an entity that acquires real company-specific, commercial long- Critical Circumstances Determinations: estate in a designated industrial term loan interest rates, the won- Certain Steel Products From Korea, 58 complex for the purpose of constructing denominated corporate bond rate is the FR 37338, 37350 (July 9, 1993) (Steel new buildings or enlarging existing best indicator of the commercial long- Products from Korea); see also Notice of facilities is exempt from the acquisition term borrowing rates for won- Final Affirmative Countervailing Duty and registration tax. In addition, the denominated loans in Korea because it Determination: Certain Cold-Rolled entity is exempt from 50 percent of the is widely accepted as the market rate in Carbon Steel Flat Products From the property tax on the real estate (i.e., the Korea. See Final Affirmative Republic of Korea, 67 FR 62102, land, buildings, or facilities constructed Countervailing Duty Determinations and (October 3, 2002) (Cold-Rolled or expanded) for five years from the date Final Negative Critical Circumstances Investigation), and accompanying Issues the tax liability becomes effective. The Determinations: Certain Steel Products and Decision Memorandum (Cold- exemption is increased to 100 percent of from Korea, 58 FR at 37328, 37345– Rolled Decision Memorandum) at the relevant land, buildings, or facilities 37346 (July 9, 1993) (Steel Products ‘‘Short-Term Export Financing’’ section. that are located in an industrial complex from Korea). Where company-specific No new information or evidence of outside of the Seoul metropolitan area. rates were not available, we used the changed circumstances was presented The GOK established the tax exemption national average of the yields on three- in this review to warrant any program under Article 276 in December year, won-denominated corporate reconsideration of the countervailability 1994, to provide incentives for bonds, as reported by the Bank of Korea of this program. Therefore, we continue companies to relocate from populated (BOK). This approach is consistent with to find this program countervailable. areas in the Seoul metropolitan region 19 CFR 351.505(a)(3)(ii) and our Specifically, we determine that the to industrial sites in less populated practice. See, e.g., CORE from Korea export financing constitutes a financial parts of the country. The program is 2006 Decision Memorandum at contribution in the form of a loan within administered by the local tax officials of ‘‘Benchmark for Long Term Loans.’’ the meaning of section 771(5)(D)(i) of the county where the industrial In accordance with 19 CFR the Act and confers a benefit within the complex is located. 351.505(a)(2)(i), our benchmarks take meaning of section 771(5)(E)(ii) of the During the POR, pursuant to Article into consideration the structure of the Act to the extent that the amount of 276 of the Local Tax Act, HYSCO government-provided loans. For interest the respondents paid for export received exemptions from the

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acquisition tax, registration tax, and (September 9, 2008) unchanged in Final its technology, and compilation of property tax based on the location of its Results of CORE from Korea 2006, 74 FR statistics, (2) research and development manufacturing facilities, Suncheon 2512 (January 15, 2009), and Issues and of alternative energy, (3) collection, Works, in the Yulchon Industrial Decision Memorandum for the analysis, and provision of technological Complex, a government-sponsored Countervailing Duty Administrative information on alternative energy, industrial complex designated under the Review on Corrosion-Resistant Carbon (4) guidance, education and publicity of Industrial Cluster Act. In addition, Steel Flat Products from the Republic of technologies related to alternative HYSCO received an exemption from the Korea at ‘‘Programs Determined To energy, (5) use and diffusion of local education tax during the POR. The Confer Subsidies, A. The GOK’s alternative energy, and model projects, local education tax is levied at 20 Direction of Credit’’ section. However, (6) international cooperation related to percent of the property tax. The during 2008, the respondent had an alternative energy, (7) other projects property tax exemption, therefore, outstanding loan that was provided necessary for the technological results in an exemption of the local prior to 2002. development and use or diffusion of education tax. In accordance with 19 CFR alternative energy. Id., at 2. In the CFS Paper Investigation, the 351.505(c)(2) and (4), we calculated the Pursuant to Articles 4 and 5 of the Act Department determined that the tax benefit for the loan received prior to on the Promotion of the Development exemptions under Article 276 of the 2002 as the difference between the and Use of Alternative Energy, MKE Local Tax Act are countervailable actual amount of interest paid on the prepares a base plan and a yearly subsidies. See Coated Free Sheet Paper directed loan during the POR and the execution plan for the development of from the Republic of Korea: Notice of amount of interest that would have been alternative energy. Id., at 3. The base Final Affirmative Countervailing Duty paid during the POR at the benchmark and execution plan are announced to Determination, 72 FR 60639 (October interest rate. We conducted our benefit the public. Id. According to the GOK, 25, 2007) (CFS Paper Investigation), and calculations using the benchmark any person who wishes to participate in accompanying Issues and Decision interest rates described in the ‘‘Subsidies the program prepares an R&D business Memorandum at ‘‘Reduction in Taxes Valuation Information’’ section above. plan and then submits the application to for Operation in Regional and National To calculate the net subsidy rate, we the Alternative Energy Development Industrial Complexes’’ (CFS Paper divided the company’s total benefit by Center under KEMCO, which then Decision Memorandum). No new its respective total f.o.b. sales values evaluates the application and selects the information or evidence of changed during the POR, as this program is not projects eligible for government- circumstances from HYSCO or the GOK tied to exports or a particular product. support. Id. After the selected was presented in this review to warrant For HYSCO, we preliminarily determine application is finally approved by MKE, a reconsideration of the the net subsidy rate under the direction KEMCO and the general supervising countervailability of this program. We, of credit program to be less than 0.005 institute of the consortium enter into an therefore, continue to find this program percent ad valorem, which consistent R&D agreement and then MKE provides countervailable. Specifically, we with the Department’s practice, does not the grant through KEMCO. Id. preliminarily find that the tax confer a measurable benefit and is not The costs of the R&D projects under exemptions that HYSCO received included in the calculation of the net this program are shared by the company constitute a financial contribution and countervailable rate. See, e.g., CORE (or research institution) and the GOK. confer a benefit under sections from Korea 2006 Decision Memorandum Id., at 2. Specifically, the grant ratio for 771(5)(D)(ii) and 771(5)(E) of the Act, at ‘‘GOK’s Direction of Credit’’ section. project costs are as follows: (1) For large respectively. We further preliminarily D. R&D Grants Under the Act on the companies the GOK provides grants up find that the tax exemptions are Promotion of the Development of to one-half of the project costs, (2) for regionally specific under section Alternative Energy small/medium-sized companies the 771(5A)(D)(iv) of the Act because the GOK provides grants up to three-fourth The GOK’s Development of exemptions are limited to an enterprise of the project costs, (3) for consortium 1 Alternative Energy program is designed or industry located within designated the GOK provides grants up to three- to contribute to the preservation of the geographical regions in Korea. fourth of the project costs, and (4) others environment, the sound and sustainable To calculate the benefit, we divided the GOK provides grants up to one-half development of the national economy, HYSCO’s total tax exemptions by the of the project costs. Id. and the promotion of national welfare company’s total f.o.b. sales value for When the project is evaluated as by diversifying energy resources 2008. On this basis, we preliminarily ‘‘successful’’ upon completion, the through promoting technological determine the net subsidy rate to be less participating companies must repay 40 development, the use and diffusion of than 0.005 percent ad valorem, which percent of the R&D grant to the GOK. alternative energy, and reducing the consistent with the Department’s Id., at 2. However, when the project is discharge of gases harmful to humans or practice, does not confer a measurable evaluated as ‘‘not successful’’, the the environment by activating the benefit and is not included in the company does not have to repay any of alternative energy industry. See GOK’s calculation of the net countervailable the grant amount to the GOK. Id. rate. See, e.g., CORE from Korea 2006 December 22, 2009, QR at Exhibit G–1. During the POR, HYSCO received an Decision Memorandum at ‘‘GOK’s The program is administered by the energy-related grant under the Act on Direction of Credit’’ section. Ministry of Knowledge Economy (MKE), the Promotion of the Development of Korea Energy Management Corporation Alternative Energy (Alternative Energy C. GOK’s Direction of Credit for Loans (KEMCO), and Alternative Energy Issued Prior to 2002 Act) for a R&D project in which the Development Center under KEMCO. Id. company participated with other firms. Under the Act on the Promotion of the In the Final Results of CORE from See GOK’s December 22, 2009 QR at 18. Development and Use of Alternative Korea 2006, the Department determined HYSCO reported that R&D grants under the GOK ended its practice of directing Energy, the GOK provides research and credit to the steel industry as of 2002. development (R&D) grants to support 1 If the ratio of small to medium-sized companies See Preliminary Results of CORE from the following: (1) Survey of resources in a consortium is above two-thirds, the GOK Korea 2006, 73 FR 52315; 52317 for alternative energy and demand for provides grants up to one-half of the project costs.

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the Alternative Energy Act are provided a manner that was specific within the technology. Id. at 2. This business plan with respect to specific projects, which meaning of section 771(5A) of the Act. includes support areas, qualifications, are generally multi-year projects where We preliminarily determine the and the application process. Id. the amount of funds to be provided by Alternative Energy Act is de jure According to the GOK, any person or the GOK is set out in the project specific within the meaning of company can participate in the program contract. See HYSCO’s March 17, 2010 771(5A)(D)(i) because the GOK by preparing an R&D business plan that QR at Exhibit G–10. The cost of R&D expressly limits access to the subsidy to conforms with the requirements set projects under this program is shared by the development and promotion of forth in the MKE business plan. Id. at 3. the participating companies and the alternative energy. See GOK’s December The completed application must then be GOK. Id. HYSCO’s grant is related to 22, 2009 QR at Exhibit G–2 and G–4. We submitted to KEIT, which evaluates the new technologies that are applicable to also preliminarily determine that a application and selects the projects both inputs of subject merchandise as financial contribution provided in the eligible for government-support. Id. well as subject merchandise. See form of revenue forgone, and a benefit After the selected application is finally Memorandum to the File titled within the meaning of sections approved by MKE, MKE and the ‘‘HYSCO’s R&D Grants under the Act on 771(5)(D)(ii) and 771(5)(E) of the Act. participating companies enter into an the Promotion of the Development and To determine the benefit from the R&D agreement and then MKE provides Use of Alternative Energy’’ (September grant HYSCO received from this the grant. Id. 7, 2010) (HYSCO Alternative Energy program, we calculated the GOK’s R&D project costs are shared by the Grant Memorandum), of which a public contribution for the R&D grant that was GOK and companies or research version is on file in the CRU. apportioned to HYSCO. See 19 CFR institutions as follows: (1) When the In the previous administrative review 351.504(a). Next, in accordance with group of companies involved in the of this case, we examined this R&D 19 CFR 351.524(b)(2), we determined research is made up of a ratio above grant and found that the subsidy rate whether to allocate the non-recurring two-thirds small to medium-sized under this program was less than 0.005 benefit from the grants over a 15-year companies, the GOK provides a grant up percent ad valorem, which, consistent AUL by dividing the GOK approved to three-forth of the project cost; (2) with the Department’s practice, did not grant amount by the company’s total When the group of companies involved confer a measurable benefit. See sales in the year of approval. Because in the research is made up of a ratio Corrosion-Resistant Carbon Steel Flat the approved amount was less than 0.5 below two-thirds small to medium-sized Products From the Republic of Korea: percent of the company’s total sales, we companies, the GOK provides a grant up Preliminary Results of Countervailing expensed the grant to the year of receipt. to one-half of the project cost. See Duty Administrative Review Next, to calculate the net subsidy rate, GOK’s December 22, 2009 QR, Exhibit (Preliminary Results of CORE From we divided the portion of the benefit G–5 at 2. Korea 2007), 74 FR 46100; 46106 allocated to the POR by HYSCO’s total Upon completion of the project, if the (September 8, 2009) unchanged in f.o.b. sales for 2008. See 19 CFR GOK evaluates the project as Corrosion-Resistant Carbon Steel Flat 351.525(b)(3). On this basis, we ‘‘successful’’, the participating Products From the Republic of Korea: preliminarily determine the net subsidy companies must repay 40 percent of the Final Results of Countervailing Duty rate under this program to be 0.01 R&D grant to the GOK over five years. Administrative Review (Final Results of percent ad valorem for HYSCO. See GOK’s December 22, 2009 QR, CORE From Korea 2007), 74 FR 55192 Exhibit G–5 at 2. However, if the project E. R&D Grants Under the Act on Special (October 27, 2009). Consequently, it was is evaluated by the GOK as ‘‘not Measures for the Promotion of unnecessary for the Department to make successful’’, the company does not have Specialized Enterprises for Parts and a finding as to the countervailability of to repay any of the grant amount to the Materials the program in that review. Id. GOK. Id. In this administrative review, we Under the Act on Special Measures HYSCO reported that during the POR, calculated the GOK’s contribution to the for the Promotion of Specialized it was involved in two R&D projects project that was apportioned to HYSCO Enterprises for Parts and Materials under this program. See HYSCO’s and then, in accordance with 19 CFR (Promotion of Specialized Enterprises December 22, 2009 QR at 18. HYSCO 351.524(b)(2), determined whether to Act), the GOK shares the costs of R&D further reported that it led a consortia of allocate the non-recurring benefit from projects with companies or research several companies in these projects for the grant over HYSCO’s total sales in the institutions the goal of the program is to the steel used in automobiles. Id. year the grant was approved. Because support technology development for Moreover, HYSCO stated that it received the amount of the grant is less that core parts and materials necessary for R&D grants under this program that are 0.5 percent of the relevant sales, we technological innovation and for the development of specialized expensed the benefit for the grant to the improvement in competitiveness. See technologies associated with the year of receipt. We preliminarily GOK’s December 22, 2009 QR at Exhibit production of subject merchandise. Id. determine the subsidy rate under this G–5. The program is administered by Therefore, in these preliminary program to be greater than 0.005 percent the Ministry of Knowledge Economy results, we have analyzed whether the ad valorem, which, consistent with the (MKE) and Korea Evaluation Institute of grants received from the GOK under the Department’s practice is a measurable Industrial Technology (KEIT). Id. Promotion of Specialized Enterprises benefit. Consequently, it is necessary for In accordance with Articles 3 and 4 of Act is countervailable. We analyzed the Department to make a finding as to the Promotion of Specialized whether the GOK provided grants to the the countervailability of this program. Enterprises Act, MKE prepares a base respondent and/or Korean industries in Therefore, in these preliminary plan and a yearly execution plan for the a manner that was specific within the results, we have analyzed whether the development of the parts and materials meaning of section 771(5A) of the Act. grant received from the GOK under the industry. See GOK’s December 22, 2009 Because we do not have a full Alternative Energy Act is QR at Exhibit G–5. Under the execution translation of the Promotion of countervailable. We analyzed whether plan, MKE announces to the public a Specialized Enterprises Act on the the GOK provided grants to the detailed business plan for the record, we do not have the information respondent and/or Korean industries in development of parts and materials necessary to determine whether it is

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de jure specific. Subsequent to these analysis of the GOK’s R&D grants under II. Programs Preliminarily Determined preliminary results, we will request a the Specialized Enterprises Act, we Not To Confer a Benefit During the POR full translation of the law from the GOK preliminarily determined that HYSCO A. Research and Development Grants so that we can make a de jure specificity received a disproportionate share of Under the Industrial Development Act determination for the final results. assistance under this program in 2005 (IDA) Where the Department cannot find de and 2008 because the amounts it The GOK, through the Ministry of jure specificity, section 771(5A)(D)(iii) received were significantly larger than Knowledge Economy (MKE),3 provides of the Act also directs the Department the average amount disbursed to other R&D grants to support numerous to examine whether the benefits companies in those years. See provided under the program are de facto projects pursuant to the IDA, including Specialized Enterprises Act Specificity technology for core materials, specific—that is, whether the benefits Memorandum. Therefore, consistent are specific as a matter of fact. components, engineering systems, and with our past practice, we preliminarily Subparagraphs (I) through (IV) of resource technology. See Corrosion- find that the program, with respect to section 771(5A)(D)(iii) of the Act Resistant Carbon Steel Flat Products stipulate that a program is de facto the assistance provided to HYSCO, is From the Republic of Korea: Preliminary specific if one or more of the following de facto specific within the meaning of Results of Countervailing Duty factors exist: 771(5A)(D)(iii)(III) of the Act because Administrative Review Preliminary (I) The actual recipients of the subsidy the respondent received a Results of CORE From Korea 2007), 74 whether considered on an enterprise or disproportionate amount of the benefits FR 46100; 46102 (September 8, 2009) industry basis are limited in number. under the program. See, e.g., Alloy unchanged in Corrosion-Resistant (II) An enterprise or industry is a Magnesium From Canada: Final Results Carbon Steel Flat Products From the predominant user of the subsidy. of Countervailing Duty New Shipper Republic of Korea: Final Results of (III) An enterprise or industry receives Review, 68 FR 22359 (April 28, 2003), Countervailing Duty Administrative a disproportionately large amount of the and accompanying issues and decision Review (Final Results of CORE from subsidy memorandum at Comment 2, in which Korea 2007), 74 FR 55192 (October 27, (IV) The manner in which the the Department found a program to be 2009). The IDA is designed to foster the authority providing the subsidy has de facto specific based, in part, on the development of efficient technology for industrial development. Id. To exercised discretion in the decision to fact that the amount of benefits received participate in this program a company grant the subsidy indicates that an by the respondent was, ‘‘* * * greater enterprise or industry is favored over may: (1) Perform its own R&D project, than the grants received by 99 percent (2) participate through the Korea others. of all the beneficiaries and over ninety In response to the Department’s Association of New Iron and Steel times larger than the typical grant 4 request, the GOK provided the Technology (KANIST), which is an amount.’’ We also preliminarily association of steel companies Department with a breakdown of the determine that a financial contribution R&D grants approved under the established for the development of new is provided in the form of revenue Promotion of Specialized Enterprises iron and steel technology, and/or (3) forgone, and a benefit within the Act by the GOK, for HYSCO and by participate in another company’s R&D industry, for the years 2002 through meaning of sections 771(5)(D)(ii) and project and share R&D costs as well as 2008, which corresponds to the years 771(5)(E) of the Act. funds received from the GOK. Id. To be the R&D projects in question were To determine the benefit from the eligible to participate in this program, approved and the three previous years. grants HYSCO received from the the applicant must meet the See GOK’s August 6, 2010 QR at Exhibit Specialized Enterprises Act program, we qualifications set forth in the basic plan and must perform R&D as set forth G–15 and Exhibit G–16. In conducting calculated the GOK’s contribution for under the Notice of Industrial Basic our de facto specificity analysis, we the R&D grant that was apportioned to Technology Development Plan. Id. If the identified the GOK assistance approved HYSCO. See 19 CFR 351.504(a). Next, in R&D project is not successful, the for HYSCO’s R&D projects under this accordance with 19 CFR 351.524(b)(2), company must repay the full amount of program for which it received grants we determined whether to allocate the the grants provided by the GOK. Id. during the POR. We then analyzed the non-recurring benefit from the grants In the H Beams Investigation, the distribution of all GOK grants received over a 15-year AUL by dividing the GOK Department determined that through under this program in the years in approved grant amount by the KANIST, the Korean steel industry which HYSCO’s R&D project was company’s total sales in the year of 2 receives funding specific to the steel approved and the three previous years. approval. Because the approved amount industry. Therefore, given the nature of Specifically, we compared the amount was less than 0.5 percent of the KANIST, the Department found projects of assistance approved for HYSCO to the company’s total sales, we expensed the under KANIST to be specific. See average amount of assistance approved grant to the year of receipt. Next, to Preliminary Negative Countervailing for other companies. See Memorandum calculate the net subsidy rate, we Duty Determination With Final to the file titled: ‘‘De Facto Specificity Antidumping Duty Determination: Analysis for Preliminary Results: The divided the portion of the benefit allocated to the POR by HYSCO’s total Structural Steel Beams From the Act on special Measures for the Republic of Korea, 64 FR 69731, 69740 Promotion of Specialized Enterprises for f.o.b. sales for 2008. See 19 CFR 351.525(b)(3). On this basis, we (December 14, 1999) (unchanged in the Parts and Materials 2002–2008’’ final results, 65 FR 69371 (July 3, 2000), preliminarily determine the net subsidy (Specialized Enterprises Act Specificity and accompanying Issues and Decision rate under this program to be 0.03 Memorandum) of which a public Memorandum at ‘‘R&D Grants Under the version is on file in CRU. Based on our percent ad valorem for HYSCO. 3 Prior to February 29, 2008, MKE was known as 2 The GOK only provided information by industry the Ministry of Commerce, Industry, and Energy concerning the year in which HYSCO’s R&D (MOCIE). projects were approved, 2005 and 2008, and the 4 Also known as Korea New Iron & Steel preceding three years. Technology Research Association (KNISTRA).

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Korea New Iron & Steel Technology 1, 2001, through June 30, 2002. See 11 of this Act, the Ministry of Research Association (KNISTRA)’’). Final Affirmative Countervailing Duty Commerce, Industry and Energy Further, we found that the grants Determination: Dynamic Random (MOCIE) annually announces its budget constitute a financial contribution under Access Memory Semiconductors from and the eligibility criteria to obtain a section 771(5)(D)(i) of the Act in the the Republic of Korea, 68 FR 37122 loan from MOCIE. Id. Any company that form of a grant, and bestow a benefit (June 23, 2003) (DRAMS Investigation), meets the eligibility criteria may apply under section 771(5)(E) of the Act in the and accompanying Issues and Decision for a loan to MOCIE. Id. The eligibility amount of the grant. Id. No new factual Memorandum (DRAMS Investigation criteria for receiving an ORD loan are information or evidence of changed Decision Memorandum) at ‘‘ESF that the loan should be used for circumstances has been provided to the Program’’ and ‘‘Comment 24.’’ In the surveying, exploration, development, Department with respect to this instant review, HYSCO reported that, production, engineering services and program. Therefore, we preliminarily during the POR, the company had financing for the development of continue to find that this program is outstanding balances for ESF loans that overseas natural resources. Id. The de jure specific within the meaning of were received in 2000. The applicant submits its ORD plans to section 771(5A)(D)(i) of the Act and Department’s specificity finding in the MOCIE in accordance with the Overseas constitutes a financial contribution and DRAMS Investigation did not cover the Resources Development Business Act. confers a benefit under sections year 2000. See Preliminary Affirmative Id. MOCIE requests that the KORES, a 771(5)(D)(i) and 771(5)(E) of the Act, Countervailing Duty Determination: public corporation that is wholly owned respectively. Dynamic Random Access Memory by the GOK, conduct an eligibility HYSCO benefitted from this program Semiconductors from the Republic of review, feasibility study and credit during the POR. See HYSCO’s December Korea, 68 FR 16766, 16775 (April 7, evaluation. Id. KORES was established 22, 2009 QR at 17. HYSCO participated 2003) (unchanged in final results, in 1967 and has assumed a direct role in a project indirectly through KANIST. 68 FR 37122 (June 23, 2003)). However, in establishing and implementing the Id. HYSCO claims that the project for because there is no measurable benefit GOK’s resources development policy, which grants were received from the for this program as explained below, we whose purpose is to secure mineral government was not related to subject preliminarily determine that it is resources for Korea. Id. In the selection merchandise. Id. at 18. unnecessary for the Department to make process, KORES uses a loan evaluation The Department has previously a determination on the committee to select the recipients based determined that the grants HYSCO countervailability of ESF loans that on the criteria for the project to develop received under this program are were issued in 2000. strategic minerals (e.g., bituminous coal, attributed to the production of non- We performed the loan benefit uranium, iron ore, copper, zinc, nickel, subject. See Corrosion-Resistant Carbon calculation applying the long-term etc.) including co-development with Steel Flat Products From the Republic of benchmark interest rates described resource-owning countries, mining right Korea: Preliminary Results of above in the ‘‘Subsidies Valuation of minerals, etc. KORES provides the Countervailing Duty Administrative Information’’ section. For the POR, we evaluation results and its Review (Preliminary Results of CORE preliminarily determine the net subsidy recommendation to MOCIE. Id. If the from Korea 2007), 74 FR 46100; 46102 rate under the ESF loan program to be result and recommendation are (September 8, 2010) unchanged in less than 0.005 percent ad valorem, favorable, MOCIE approves the loan Corrosion-Resistant Carbon Steel Flat which, consistent with the Department’s application and provides funds to Products From the Republic of Korea: practice, does not confer a measurable KORES. KORES then lends the funds to Final Results of Countervailing Duty benefit and is not included in the the company for foreign resource Administrative Review (Final Results of calculation of the net countervailable development. Id. CORE From Korea 2007), 74 FR 55192 rate. See, e.g., CORE from Korea 2006 During the POR, HYSCO obtained (October 27, 2008); and Memorandum to Decision Memorandum at ‘‘GOK’s loans from KORES for investment in a the File titled ‘‘HYSCO’s R&D Grants Direction of Credit’’ section. copper mine in Mexico. See HYSCO’s Under the IDA Memorandum to the file December 22, 2009 QR at 11 and Exhibit C. Overseas Resource Development in the Countervailing Duty 8 at 24. However, under 19 CFR Program: Loan From Korea Resources Administrative Review for the period of 351.505(b), no benefits were received by Corporation (KORES) review (POR) January 1, 2007 through HYSCO during the POR. Therefore, we December 31, 2007’’ (July 26, 2010) In Final Results of CORE from Korea preliminarily determine that HYSCO (HYSCO IDA Grants Memorandum), of 2006, the Department found that GOK did not receive a benefit from this which a public version is on file in the enacted the Overseas Resource program during the POR. We will CRU. Therefore, consistent with 19 CFR Development (ORD) Business Act in continue to examine this program in 351.525(b)(5)(i) and our past practice, order to establish the foundation for future reviews. we determine that these grants are tied securing the long-term supply of D. Overseas Resource Development to non-subject merchandise and, thus essential energy and major material Program: Loan From Korea National Oil did not confer a benefit to HYSCO minerals, which are mostly imported Corporation (KNOC) during the POR. because of scarce domestic resources. See Preliminary Results of CORE from In Final Results of CORE from Korea B. Energy Savings Fund Program Korea 2006, 73 FR 52315; 52326 2007, the Department found that GOK The Energy Savings Fund (ESF) (September 9, 2008) unchanged in Final enacted the Overseas Resource program provides financing for Results of CORE from Korea 2006, 74 FR Development (ORD) Business Act in investment in projects and equipment 2512 (January 15, 2009), and Issues and order to establish the foundation for that use energy efficiently. In the Decision Memorandum for the securing the long-term supply of DRAMS Investigation, the Department Countervailing Duty Administrative essential energy and major material found that the loans were not specific Review on Corrosion-Resistant Carbon minerals, which are mostly imported within the meaning of section 771(5A) Steel Flat Products from the Republic of because of scarce domestic resources. of the Act during the period of Korea at ‘‘Programs Determined To Be See Preliminary Results of CORE from investigation (POI), which was January Not Used’’ section. Pursuant to Article Korea 2007, 74 FR 46100; 46107–46108

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(September 8, 2010) unchanged in Final regulations do not expressly limit access term loans issued by the KDB across Results of CORE from Korea 2007) 74 FR to the subsidy to an enterprise or industry groups in the year in which 55192 (October 27, 2008). Pursuant to industry, or groups thereof, as a matter HYSCO’s outstanding loans were issued Article 11 of this Act, the MKE annually of law. See CFS Paper Investigation 72 as well as the two preceding years.5 announces its budget and the eligibility FR 60639 (October 25, 2007) and CFS Specifically, we compared the amount criteria to obtain a loan from MKE. Id. Paper Decision Memorandum at ‘‘Long- of long-term KDB loans issued to the Any company that meets the eligibility Term Lending Provided by the KDB and ‘‘Base Metal Industry’’ (e.g., the steel criteria may apply for a loan to MKE. Id. Other GOK-Owned Institutions’’ section. industry) to the amount of long-term For projects that are related to The Department’s finding in the CFS KDB loans issued to other industries. petroleum and natural gas, the KNOC Paper Investigation that long-term loans Based on our analysis of the long-term lends the funds to the company for issued by the KDB during the period KDB lending data coupled with the KDB foreign resources development. Id. An 2002 through 2006 are not de jure lending data reported by HYSCO in approved company enters into a specific was not limited to a particular their respective questionnaire borrowing agreement with KNOC for the industry or industries. Id. Therefore, in responses, we preliminarily determine development of the selected resource. regard to this issue, we find that the that the respondent firm, as an Id. Two types of loans are provided Department’s determination in the CFS individual enterprise, did not receive under this program: ‘‘General loans’’ and Paper Investigation is applicable to the KDB loans in a manner that was de facto ‘‘success-contingent loans’’. For a instant review. Further, concerning this specific as described in sections success-contingent loan, the repayment program, there is no information on the 771(5A)(D)(iii) of the Act. Further, based obligation is subject to the results of the record of the instant review that on these comparisons, we preliminarily development project. In the event that warrants reconsideration of the determine that the KDB did not issue the project fails, the company will be Department’s prior finding of the loans to the steel industry in a manner exempted for all or a portion of the loan absence of de jure specificity during the that was de facto specific as described repayment obligation. However, if the 2002 through 2006 period. On this basis, in section 771(5A)(D)(iii) of the Act. For project succeeds, a portion of the project we preliminarily determine that the further information, see Memorandum income is payable to KNOC. Id. KDB’s issuance of long-term loans to the File titled ‘‘Analysis of KDB During the POR, HYSCO obtained a during the 2002 through 2007 period are Lending Data’’ (September 7, 2010), loan from KNOC related to the not de jure specific within the meaning which is a public document on file in exploration for petroleum in New of sections 771(5A)(D)(i) and (ii) of the the CRU. Zealand. See HYSCO’s December 22, Act. On this basis, we preliminarily 2009 questionnaire response (QR) at 11 Where the Department finds no de determine that the long-term loans that and Exhibit 8 at 24. However, under 19 jure specificity, section 771(5A)(D)(iii) HYSCO received from the KDB during CFR 351.505(b), no benefits were of the Act also directs the Department the years 2002 through 2008 are not received by HYSCO during the POR. to examine whether the benefits specific within the meaning of section Therefore, we preliminarily determine provided under the program are de facto 771(5A) of the Act, and, therefore, we that HYSCO did not receive a benefit specific—that is, whether the benefits preliminarily determine that they are from this program during the POR. We are specific as a matter of fact. not countervailable. will continue to examine this program Subparagraphs (I) through (IV) of IV. Programs Preliminarily Determined in future reviews. section 771(5A)(D)(iii) of the Act stipulate that a program is de facto To Be Not Used III. Programs Preliminarily Determined specific if one or more of the following Overseas Resource Development To Be Not Countervailable factors exist: Program: Loan From KEXIM A. Long-Term Loans From the Korean (I) The actual recipients of the subsidy whether considered on an enterprise or In Final Results of CORE from Korea Development Band (KDB) Issued in 2006, the Department found that GOK Years 2002 through 2008 industry basis are limited in number. (II) An enterprise or industry is a enacted the Overseas Resource HYSCO had long-term loans that were predominant user of the subsidy. Development (ORD) Business Act in issued by the Korean Development Bank (III) An enterprise or industry receives order to establish the foundation for (KDB), a government policy bank, in a disproportionately large amount of the securing the long-term supply of years 2002 through 2008 on which they subsidy essential energy and major material made interest payments during the POR. (IV) The manner in which the minerals, which are mostly imported Therefore, in these preliminary results, authority providing the subsidy has because of scarce domestic resources. we have analyzed whether the long-term exercised discretion in the decision to See Corrosion-Resistant Carbon Steel KDB loans are countervailable. First, we grant the subsidy indicates that an Flat Products From the Republic of analyzed whether the KDB issued long- enterprise or industry is favored over Korea: Preliminary Results of term loans to the respondent and/or the others. Countervailing Duty Administrative Korean steel industry in a manner that In response to the Department’s Review (Preliminary Results of CORE was specific within the meaning of request, the GOK provided the from Korea 2006), 73 FR 52315; 52326 section 771(5A) of the Act. Department with a breakdown of the (September 9, 2008) unchanged in The Department has previously issuance of long-term lending by the Corrosion-Resistant Carbon Steel Flat determined that long-term loans issued KDB, by industry, for the years 2002 Products From the Republic of Korea: by the KDB during the period 2002 through 2008. See GOK’s March 17, Final Results of Countervailing Duty through 2006 are not de jure specific 2010, Questionnaire Response, at Administrative Review (Final Results of within the meaning of sections Exhibit A–5. In conducting our de facto 771(5A)(D)(i) and (ii) of the Act because: specificity analysis, we identified all 5 The GOK was able to provide information (1) They are not based on exportation; long-term loans issued by the KDB to concerning the amount of loans the KDB issued to HYSCO on which interest payments each industry during the period 2001 through 2007. (2) they are not contingent on the use of Therefore, when analyzing whether loans issued in domestic goods over imported goods; were made during the POR. We then 2002 were specific, we were only able to analyze and (3) the legislation and/or analyzed the distribution of all long- lending patterns during the period 2001 and 2002.

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CORE from Korea 2006), 74 FR 2512 • Electricity Discounts Under the Emergency companies at the most recent company- (January 15, 2009), and Issues and Load Reductions Program specific or country-wide rate applicable • Decision Memorandum at ‘‘Programs Export Industry Facility Loans and to the company. Accordingly, the cash Determined To Be Not Used’’ section. Specialty Facility Loans deposit rates that will be applied to • Local Tax Exemption on Land Outside of Pursuant to Article 11 of this Act, the a Metropolitan Area companies covered by this order, but MKE annually announces its budget and • Short-Term Trade Financing Under the not examined in this review, are those the eligibility criteria to obtain a loan Aggregate Credit Ceiling Loan Program established in the most recently from MKE. Id. Any company that meets Administered by the Bank of Korea completed administrative proceeding the eligibility criteria may apply for a • Industrial Base Fund for each company. These rates shall loan to MKE. Id. The eligibility criteria • Excessive Duty Drawback apply to all non-reviewed companies • Private Capital Inducement Act for receiving an ORD loan are that the • until a review of a company assigned Scrap Reserve Fund these rates is requested. loan should be used for surveying, • Special Depreciation of Assets on Foreign exploration, development, production, Exchange Earnings Public Comment engineering services and financing for • Export Insurance Rates Provided by the the development of overseas natural Korean Export Insurance Corporation Pursuant to 19 CFR 351.224(b), the resources. Id. The applicant submits its • Loans from the National Agricultural Department will disclose to parties to ORD plans to MKE in accordance with Cooperation Federation the proceeding any calculations • the ORD. Id. The loan evaluation Tax Incentives from Highly Advanced performed in connection with these committee evaluates the applications, Technology Businesses Under the Foreign preliminary results within five days Investment and Foreign Capital selects the recipients and gets the after the date of the public Inducement Act announcement of this notice. Pursuant approval from the minister of MKE. Id. • Other Subsidies Related to Operations at During the POR, HYSCO reported in Asan Bay: Provision of Land and to 19 CFR 351.309, interested parties its 2007–2008 financial statements that Exemption of Port Fees Under the Harbor may submit written comments in it obtained loans from KEXIM for Act response to these preliminary results. investment in a copper mine in Mexico. • D/A Loans Issued by the Korean Unless otherwise indicated by the See HYSCO’s December 22, 2009, QR at Development Bank and Other Government- Department, case briefs must be 11 and Exhibit 8 at 24; see also Owned Banks submitted within 30 days after the • R&D Grants under the Promotion of HYSCO’s Loan Agreement with KEXIM, publication of these preliminary results. Industrial Technology Innovation Act See 19 CFR 351.309(c)(1)(ii). Rebuttal Exhibit A–5. Copper is not an input • Export Loans by Commercial Banks Under used in the production of subject KEXIM’s Trade Bill Rediscounting Program briefs, which are limited to arguments merchandise. Therefore, we • Restriction of Special Taxation Act (RSTA) raised in case briefs, must be submitted preliminarily determine that HYSCO Article 94: Equipment Investment to no later than five days after the time did not use this program with respect to Promote Worker’s Welfare limit for filing case briefs, unless otherwise specified by the Department. the subject merchandise during the Preliminary Results of Review POR. We will continue to examine this See 19 CFR 351.309(d)(1). Parties who In accordance with 19 CFR program in future reviews. submit argument in this proceeding are In addition, we found that the 351.221(b)(4)(i), we calculated an requested to submit with the argument: following programs were not used individual subsidy rate for each (1) A statement of the issue; and (2) a during the POR: producer/exporter subject to this brief summary of the argument. Parties administrative review. For the period • submitting case and/or rebuttal briefs Reserve for Research and Manpower January 1, 2008, through December 31, are requested to provide the Department Development Fund Under RSTA Article 9 2008, we preliminarily determine the (TERCL Article 8) copies of the public version on disk. • RSTA Article 11: Tax Credit for Investment net subsidy rate for HYSCO to be 0.07 Case and rebuttal briefs must be served in Equipment to Development Technology percent ad valorem, a de minimis rate. on interested parties in accordance with and Manpower (TERCL Article 10) See 19 CFR 351.106(c)(1). 19 CFR 351.303(f). Also, pursuant to 19 • Reserve for Export Loss Under TERCL The Department intends to issue CFR 351.310(c), within 30 days of the Article 16 assessment instructions to U.S. Customs date of publication of this notice, • Reserve for Overseas Market Development and Border Protection (CBP) 15 days interested parties may request a public Under TERCL Article 17 • after the date of publication of the final hearing on arguments to be raised in the Reserve for Export Loss Under TERCL results of this review. If the final results Article 22 case and rebuttal briefs. Unless the • Exemption of Corporation Tax on Dividend remain the same as these preliminary secretary specifies otherwise, the Income from Overseas Resources results, the Department will instruct hearing, if requested, will be held two Development Investment Under TERCL CBP to liquidate without regard to days after the date for submission of Article 24 countervailable duties all shipments of rebuttal briefs. • Tax Credits for Temporary Investments subject merchandise produced by Pursuant to 19 CFR 351.305(b)(4), Under TERCL Article 27 representatives of parties to the • HYSCO, entered, or withdrawn from Social Indirect Capital Investment Reserve warehouse, for consumption from proceeding may request disclosure of Funds Under TERCL Article 28 proprietary information under • Energy-Savings Facilities Investment January 1, 2008, through December 31, Reserve Funds Under TERCL Article 29 2008. The Department will also instruct administrative protective order no later • Reserve for Investment (Special Cases of CBP not to collect cash deposits of than 10 days after the representative’s Tax for Balanced Development Among estimated countervailing duties on client or employer becomes a party to Areas Under TERCL Articles 41–45) shipments of the subject merchandise the proceeding, but in no event later • Tax Credits for Specific Investments Under produced by HYSCO, entered, or than the date the case briefs, under 19 TERCL Article 71 • withdrawn from warehouse, for CFR 351.309(c)(i), are due. The Asset Revaluation Under Article 56(2) of Department will publish the final the Tax Reduction and Exemption Control consumption on or after the date of Act (TERCL) publication of the final results of this results of this administrative review, • Emergency Load Reduction Program review. including the results of its analysis of • Electricity Discounts Under the Requested We will instruct CBP to continue to issues raised in any case or rebuttal brief Loan Adjustment Program collect cash deposits for non-reviewed or at a hearing.

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These preliminary results of review Final Determination of Sales at Less 2009 and December 1, 2009 are issued and published in accordance Than Fair Value and Antidumping Duty respectively. Petitioner filed comments with sections 751(a)(1) and 777(i)(1) of Order: Floor–Standing, Metal–Top on Foshan Shunde’s sections A, C and the Act and 19 CFR 351.221(b)(4). Ironing Tables and Certain Parts D responses on November 15, 2009. Dated: September 7, 2010. Thereof From the People’s Republic of Petitioner filed comments on Since China, 69 FR 47868 (August 6, 2004) Ronald K. Lorentzen, Hardware’s sections A, C, and D (Amended Final and Order). responses on December 7, 2009. Deputy Assistant Secretary for Import On August 3, 2009, the Department The Department subsequently issued Administration. published a notice of opportunity to [FR Doc. 2010–22901 Filed 9–13–10; 8:45 am] supplementary questionnaires to Foshan request an administrative review of the Shunde and Since Hardware on BILLING CODE 3510–DS–P antidumping duty order on, inter alia, February 24, 2010 and May 5, 2010. ironing tables from the People’s Foshan Shunde timely responded to Republic of China. See Antidumping or DEPARTMENT OF COMMERCE each of these supplemental requests for Countervailing Duty Order, Finding, or information on March 8, 2010, March International Trade Administration Suspended Investigation; Opportunity 25, 2010, April 9, 2010, and May 18, to Request Administrative Review, 74 2010. Since Hardware timely responded [A–570–888] FR 38397 (August 3, 2009). On August to each of the Department’s 31, 2009, Home Products International Floor–Standing, Metal–Top Ironing supplemental requests for information (the Petitioner in this proceeding) on March 25, 2010, April 9, 2010, and Tables and Certain Parts Thereof from requested, in accordance with 19 CFR the People’s Republic of China: June 3, 2010. On, April 9, 2010, 351.213(b)(1), an administrative review Petitioner filed additional comments on Preliminary Results of Antidumping of this order for Foshan Shunde and Duty Administrative Review the original and supplemental sections Since Hardware. A, C, and D responses submitted by On September 22, 2009, the AGENCY: Import Administration, Since Hardware. On April 15, 2010, Department initiated an administrative International Trade Administration, Petitioner filed additional comments on review of Foshan Shunde and Since Department of Commerce. the original and supplemental sections SUMMARY: In response to requests from Hardware. See Initiation of Antidumping and Countervailing Duty A, C, and D responses submitted by interested parties, the Department of Foshan Shunde. On August 25, 2010, Commerce (the Department) is Administrative Reviews and Requests for Revocation in Part, 74 FR 48224 Petitioner filed comments concerning conducting an administrative review of the Department’s verification of Since the antidumping duty order on floor– (September 22, 2009). On February 16, 2010, the Department issued a Hardware. On August 26, 2010, standing, metal–top ironing tables and Petitioner filed comments concerning certain parts thereof from the People’s memorandum that tolled the deadlines for all Import Administration cases by the Department’s verification of Foshan Republic of China (PRC). The period of Shunde. review (POR) is August 1, 2008 through seven calendar days due to the recent July 31, 2009. We have preliminarily Federal Government closure. See Verification Memorandum for the Record from determined that respondents Foshan As provided in section 782(i)(3) of the Shunde Yongjian Housewares & Ronald Lorentzen, DAS for Import Administration, regarding Tolling of Act, we verified the information Hardware Co., Ltd. (Foshan Shunde) Administrative Deadlines as a Result of submitted by Foshan Shunde and Since and Since Hardware (Guangzhou) Co., the Government Closure During the Hardware upon which we have relied in Ltd. (Since Hardware) have made sales Recent Snowstorm, dated February 12, these preliminary results of review. We to the United States of the subject 2010. conducted our verification of Foshan merchandise at prices below normal On April 28, 2010, in accordance with Shunde from June 14 through June 18, value. We invite interested parties to section 751(a)(3)(A) of the Tariff Act of 2010 and our verification of Since comment on these preliminary results. 1930, as amended (the Act), and 19 CFR Hardware from June 21 through June 25, Parties filing comments are requested to 351.213(h)(2), the Department extended 2010. The Department’s verification submit with each argument (1) a the deadline for the preliminary results reports are on the record of this review statement of the issue and (2) a brief of review until September 7, 2010. See in the Central Records Unit, Room 1117 summary of the argument(s). Floor–Standing, Metal–Top Ironing of the main Department building. We EFFECTIVE DATE: September 14, 2010. Tables and Certain Parts Thereof from used standard verification procedures, FOR FURTHER INFORMATION CONTACT: the People’s Republic of China: including examination of relevant Michael J. Heaney or Robert James, AD/ Extension of the Time Limit for the accounting and production records, as CVD Operations, Office 7, Import Preliminary Results of the well as source documentation provided Administration, International Trade Administrative Review, 75 FR 22372 by the respondents. See ‘‘Verification of Administration, U.S. Department of (April 28, 2010). the Sales and Factors Response of Commerce, 14th Street and Constitution The Department issued its original Foshan Shunde (Guangzhou) Co., Ltd. Avenue, NW, Washington, DC 20230; antidumping questionnaire to both in the Antidumping Review of Floor telephone: (202) 482–4475 or (202) 482– Foshan Shunde and Since Hardware on Standing, Metal–Top Ironing Tables and 0649, respectively. September 29, 2009. Foshan Shunde Certain Parts Thereof from the People’s SUPPLEMENTARY INFORMATION: timely filed its response to Section A of Republic of China (PRC)’’ (Foshan the questionnaire on November 13, Shunde Verification Report) dated Background 2009; Foshan Shunde’s Sections C and August 17, 2010 . See also ‘‘Verification On August 6, 2004, the Department D responses followed on November 20, of the Sales and Factors Response of published in the Federal Register the 2009. Since Hardware timely filed its Since Hardware (Guangzhou) Co. Ltd. in antidumping duty order regarding floor– response to Section A of the the Antidumping Review of Floor standing, metal–top ironing tables and questionnaire on October 29, 2009; Standing, Metal–Top Ironing Tables and certain parts thereof (ironing tables) Since Hardware’s Sections C and D Certain Parts Thereof from the People’s from the PRC. See Notice of Amended responses followed on November 19, Republic of China (PRC)’’ dated August

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16, 2010 (Since Hardware 2008–2009 or components of ironing tables that are that of the NME country, and (2) are Verification Report ). intended to be covered by this order significant producers of comparable under the term ‘‘certain parts thereof’’ merchandise. The Department Surrogate Country and Surrogate Value consist of the metal top component determined India, the Philippines, Data (with or without assembled supports Indonesia, Thailand, Ukraine and Peru On July 13, 2010, the Department sent and slides) and/or the leg components, are countries comparable to the PRC in interested parties a letter inviting whether or not attached together as a leg economic development. (See comments on surrogate country assembly. The order covers separately Memorandum to Richard Weible from selection and surrogate value data. See shipped metal top components and leg Carole Showers Request for a List of the Department’s Letter to All Interested components, without regard to whether Surrogate Countries for an Parties; Administrative Review of the respective quantities would yield an Administrative Review of the Floor–Standing, Metal–Top, Ironing exact quantity of assembled ironing Antidumping Order on Floor Standing Tables and Parts Thereof from the tables. Metal–Top Ironing Tables and Certain People’s Republic of China (‘‘PRC’’): Ironing tables without legs (such as Parts (‘‘Ironing Tables’’) from the Surrogate Country List, dated July 13, models that mount on walls or over People’s Republic of China dated July 8, 2010 (Surrogate Country List). On doors) are not floor–standing and are 2010 (Surrogate Country List)). August 17, 2010, the Department specifically excluded. Additionally, Based on publicly available received information to value factors of tabletop or countertop models with information placed on the record by production (FOP) from Foshan Shunde, short legs that do not exceed 12 inches interested parties (e.g., production data), Since Hardware and the Petitioner. With in length (and which may or may not the Department determines India to be the exception of the surrogate value data collapse or retract) are specifically a reliable source for surrogate values to value labor, all of the surrogate values excluded. because India is at a comparable level of placed on the record were obtained from The subject ironing tables are economic development pursuant to sources in India. currently classifiable under Harmonized section 773(c)(4) of the Act, is a Tariff Schedule of the United States Scope of the Order significant producer of the subject (HTSUS) subheading 9403.20.0011. The merchandise, and has publicly available For purposes of this order, the subject metal top and leg components and reliable data. Accordingly, the product covered consists of floor– are classified under HTSUS subheading Department has selected India as the standing, metal–top ironing tables, 9403.90.8040. Although the HTSUS surrogate country for purposes of assembled or unassembled, complete or subheadings are provided for valuing the FOPs because it meets the incomplete, and certain parts thereof. convenience and for Customs and Department’s criteria for surrogate The subject tables are designed and Border Protection (CBP) purposes, the country selection. used principally for the hand ironing or Department’s written description of the Separate Rates pressing of garments or other articles of scope remains dispositive. fabric. The subject tables have full– In proceedings involving NME height leg assemblies that support the Non–Market-Economy Status countries, the Department has a ironing surface at an appropriate (often In every case conducted by the rebuttable presumption that all adjustable) height above the floor. The Department involving the PRC, the PRC companies within the country are subject tables are produced in a variety has been treated as a non–market subject to government control and, thus, of leg finishes, such as painted, plated, economy (NME). In accordance with should be assigned a single or matte, and they are available with section 771(18)(C)(i) of the Act, any antidumping duty rate. It is the various features, including iron rests, determination that a foreign country is Department’s policy to assign all linen racks, and others. The subject an NME country shall remain in effect exporters of subject merchandise in an ironing tables may be sold with or until revoked by the administering NME country this single rate unless an without a pad and/or cover. All types authority. See, e.g., Brake Rotors from exporter can demonstrate that it is and configurations of floor–standing, the People’s Republic of China: Final sufficiently independent so as to be metal–top ironing tables are covered by Results and Partial Rescission of the entitled to a separate rate. See Policy this review. 2004/2005 Administrative Review and Bulletin 05.1: Separate Rates Practice Furthermore, this order specifically Notice of Rescission of 2004/2005 New and Application of Combination Rates covers imports of ironing tables, Shipper Review, 71 FR 66304 in Antidumping Investigations assembled or unassembled, complete or (November 14, 2006). None of the involving Non–Market Economy incomplete, and certain parts thereof. parties to this administrative review has Countries, available at http://ia.ita.gov/ For purposes of this order, the term contested such treatment. Accordingly, policy/bull05–1.pdf. Exporters can ‘‘unassembled’’ ironing table means a we calculated normal value (NV) in demonstrate this independence through product requiring the attachment of the accordance with section 773(c) of the the absence of both de jure and de facto leg assembly to the top or the Act, which applies to NME countries. governmental control over export attachment of an included feature such activities. The Department analyzes as an iron rest or linen rack. The term Surrogate Country each entity exporting the subject ‘‘complete’’ ironing table means product When the Department investigates merchandise under a test arising from sold as a ready–to-use ensemble imports from an NME country and the Final Determination of Sales at Less consisting of the metal–top table and a available information does not permit Than Fair Value: Sparklers from the pad and cover, with or without the Department to determine NV People’s Republic of China, 56 FR 20588 additional features, e.g., iron rest or pursuant to section 773(a) of the Act, at Comment 1 (May 6, 1991) (Sparklers). linen rack. The term ‘‘incomplete’’ then, pursuant to section 773(c)(4) of the This concept was further developed in ironing table means product shipped or Act, the Department bases NV on an Notice of Final Determination of Sales sold as a ‘‘bare board’’ i.e., a metal–top NME producer’s FOPs to the extent at Less Than Fair Value: Silicon Carbide table only, without the pad and cover possible, in one or more market– from the People’s Republic of China, 59 with or without additional features, e.g., economy countries that (1) are at a level FR 22585 (May 2, 1994). (Silicon iron rest or linen rack. The major parts of economic development comparable to Carbide). However, if the Department

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determines that a company is wholly enactments decentralizing control of absence of and de facto government foreign–owned or located in a market companies; and (3) formal measures control with respect to Foshan Shunde’s economy, then a separate rate analysis (e.g., the Foreign Trade Law) and Since Hardware’s exports of the is unnecessary to determine whether it decentralizing control of companies. subject merchandise. Accordingly, we is independent from government See, e.g., Foshan Shunde November 13, have determined that Foshan Shunde control. 2009 Section A questionnaire response and Since Hardware have demonstrated Accordingly, we have considered at pages at A–4–A–5; see also Since eligibility for separate rates. whether Foshan Shunde and Since Hardware October 29, 2009 Fair Value Comparisons Hardware are independent from questionnaire response at pages A–3–A– government control, and therefore 5. To determine whether the eligible for separate rates. The respondents’ sales of the subject Department’s separate–rate test to Absence of De Facto Control merchandise to the United States were determine whether the exporters are Typically, the Department considers made at prices below normal value independent from government control four factors in evaluating whether a (NV), we compared its United States does not consider, in general, respondent is subject to de facto prices to normal values, as described in macroeconomic/border–type controls, government control of its export the ‘‘U.S. Price’’ and ‘‘Normal Value’’ e.g., export licenses, quotas, and functions: (1) whether the export prices sections of this notice. See section minimum export prices, particularly if are set by, or subject to, the approval of 773(a) of the Act. a government authority; (2) whether the these controls are imposed to prevent U.S. Price dumping. See Notice of Final respondent has authority to negotiate Determination of Sales at Less Than and sign contracts and other Export Price Fair Value: Certain Preserved agreements; (3) whether the respondent We based U.S. price for Foshan Mushrooms from the People’s Republic has autonomy from the government in Shunde and Since Hardware on export of China, 63 FR 72255, 72256 making decisions regarding the price (EP) in accordance with section (December 31, 1998). The test focuses, selection of its management; and (4) 772(a) of the Act, because the first sale rather, on controls over the investment, whether the respondent retains the to an unaffiliated purchaser was made pricing, and output decision–making proceeds of its export sales and makes prior to importation, and constructed process at the individual firm level. See, independent decisions regarding export price (CEP) was not otherwise e.g., Notice of Final Determination of disposition of profits or financing of warranted by the facts on the record. We losses. See Silicon Carbide 59 FR 22857; Sales at Less than Fair Value: Certain calculated EP based on the packed price see also Notice of Final Determination Cut–to-Length Carbon Steel Plate from from the exporter to the first unaffiliated of Sales at Less Than Fair Value: Ukraine, 62 FR 61754, 61758 (November customer in the United States. We Furfuryl Alcohol from the People’s 19, 1997); see also Tapered Roller deducted foreign inland freight, and Republic Of China, 60 FR 22544 (May Bearings and Parts Thereof, Finished foreign brokerage and handling 8, 1995) The Department has and Unfinished, From the People’s expenses from the starting price (gross determined that an analysis of de facto Republic of China; Final Results of unit price), in accordance with section control is critical in determining Antidumping Duty Administrative 772(c) of the Act. Where appropriate, we whether respondents are, in fact, subject Review, 62 FR 61276, 61279 (November made an addition to U.S. price for 17, 1997). to a degree of governmental control, which would preclude the Department billing adjustments. Foshan Shunde and Since Hardware Both Since Hardware and Forever both provided complete separate–rate from assigning separate rates. . Holdings incurred foreign inland freight information in their responses to our The evidence provided by Foshan and foreign brokerage and handling original and supplemental Shunde and Since Hardware support a expenses from PRC service providers. questionnaires. Accordingly, we preliminary finding of de facto absence We therefore valued these services using performed a separate–rates analysis to of government control based on the Indian surrogate values (see ‘‘Factors of determine whether Foshan Shunde and following: (1) the absence of evidence Production’’ section below for further Since Hardware are independent from that the export prices are set by or are discussion). government control. subject to the approval of a government agency; (2) the respondents have Normal Value Absence of De Jure Control authority to negotiate and sign contracts The Department considers the and other agreements; (3) the Factors of Production (FOPs) following de jure criteria in determining respondents have autonomy from Section 773(c)(1) of the Act provides whether an individual company may be government in making decisions that the Department shall determine NV granted a separate rate: (1) an absence of regarding the selection of management; using an FOP methodology if the restrictive stipulations associated with and (4) the respondents retain the merchandise is exported from an NME an individual exporter’s business and proceeds of their export sales and make country and the Department finds that export licenses; (2) any legislative independent decisions regarding the available information does not enactments decentralizing control of disposition of profits or financing of permit the calculation of NV using companies; and (3) other formal losses. See Foshan Shunde November home–market prices, third–country measures by the government 13, 2010 Section A questionnaire prices, or constructed value under decentralizing control of companies. See response at A–7 through- A–9; see also section 773(a) of the Act. When Sparklers, 56 FR 20588 at Comment 1. Since Hardware October 29, 2010 determining NV in an NME context, the The evidence provided by Foshan Section A questionnaire response at A– Department will base NV on FOPs Shunde and Since Hardware supports a 5 through A–8. because the presence of government preliminary finding of de jure absence In accordance with the criteria control on various aspects of these of control based on the following: (1) an identified in Sparklers and Silicon economies renders price comparisons absence of restrictive stipulations Carbide, the evidence placed on the and the calculation of production costs associated with their business and record of this review by Foshan Shunde invalid under our normal export licenses; (2) applicable legislative and Since Hardware demonstrates an methodologies. The Department’s

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questionnaires required Foshan Shunde Critical Circumstances: Diamond raw materials, by–products and packing and Since Hardware to provide Sawblades and Parts Thereof from the material inputs. The Department has information regarding the weighted– People’s Republic of China, 71 FR 29303 disregarded statistics from NMEs, average FOP. (May 22, 2006) (Diamond Sawblades countries with generally available In accordance with 19 CFR from the PRC), and accompanying export subsidies, and undetermined 351.408(c)(1), the Department will Issues and Decision Memorandum at countries, in calculating average value. normally use publically available Comment 9, unchanged in Notice of In accordance with the Omnibus Trade information to find an appropriate SV to Amended Final Determination of Sales and Competiveness Act of 1988, Conf. value FOPs, but when a producer at Less Than Fair Value: Diamond Report to Accompany HR. 3, HR Rep. sources an input from a market Sawblades and Parts Thereof from the No., 100th Cong,. 2nd Session (1988), economy and pays for it in market– People’s Republic of China, 71 FR 35864 the Department continues to apply its economy currency, the Department may (June 22, 2006). This is consistent with long–standing practice of disregarding value the factor using the actual price accounting principles based on a surrogate values if it has a reason to paid for the input. See 19 CFR reasonable assumption that if a believe or suspect the source data may 351.408(c)(1); see also Shakeproof company sells a by–product, the by– be subsidized. In this regard, the Assembly Components, Div. of Ill. Tool product necessarily incurs expenses for Department has previously found that it Works, Inc. v. United States, 268 F. 3rd overhead, SG&A, and profit. Id. is appropriate to disregard such prices 1376, 1382–1383 (Fed. Cir. 2001) In selecting the surrogate Indian from India, Indonesia, South Korea and (affirming the Department’s use of values, we considered the quality, Thailand because we have determined market–based prices to value FOPs). specificity, and contemporaneity of the that these countries maintain broadly During the POR, Foshan Shunde data, in accordance with our practice. available, non–industry specific export reported that it purchased a certain See, e.g., Electrolytic Manganese subsidies. See, e.g. Expedited Sunset production material from a market Dioxide from the People’s Republic of Review of the Countervailing Duty Order economy supplier. See Foshan Shunde China: Final Determination of Sales at on Carbazole Violet Pigment 23 from November 20, 2009 Section D response Less Than Fair Value and India, 75 FR 13257 (March 19, 2010), at exhibit D–2. Because Foshan Shunde accompanying Issues and Decision and accompanying Issues and Decisions purchased more than 33 percent of its Memorandum at Comment 2. The Memorandum at pages 4–5; Expedited total volume of this particular input Department adjusted input prices by Sunset Review of the Countervailing from a market economy supplier, we including freight costs to make them Duty Order on Certain Cut–to Length used the market economy price paid for delivered prices, as appropriate. Carbon Quality Steel Plate from that material to value this input. See Specifically, the Department added to Indonesia, 70 FR 45692 (August 8, Foshan Shunde November 20, 2009 Indian import SVs a surrogate freight 2005), and accompanying Issues and questionnaire response at exhibit D–2.) cost using the shorter of the reported Decisions Memorandum at page 4; During the POR, Since Hardware made distance from the domestic supplier to Certain Hot–Rolled Carbon Steel Flat no purchases from market economy the factory or the distance from the Products from Thailand: Final Results suppliers. See Since Hardware nearest seaport to the factory of of Countervailing Duty Determination, December 1, 2009 at Appendix D–6. production. This adjustment is in 66 FR 50410 (October 3, 2001), and We calculated NV based on FOPs in accordance with the decision of the U.S. accompanying Issues and Decision accordance with section 773(c)(3) and Court of Appeals for the Federal Circuit Memorandum at page 23. For a detailed (4) of the Act and 19 CFR 351.408(c). (Federal Circuit) in Sigma Corp. v. description of all surrogate values used The FOPs include but are not limited to: United States, 117 F. 3rd 1401, 1407–08 for Foshan Shunde and Since Hardware, (1) hours of labor required; (2) quantities (Fed. Cir. 1997). A detailed description see the Factors Valuation Memorandum. of raw material employed; (3) amounts of all SVs used to value Foshan of energy and other utilities consumed; Shunde’s and Since Hardware’s FOPs In past cases, it has been the and (4) representative capital costs. The may be found in the September 7, 2010 Department’s practice to value various Department used FOPs reported by Memorandum to the File through Robert FOPs using import statistics of the Foshan Shunde and Since Hardware for James, Program Manager Office 7 from primary selected surrogate country from materials, energy, labor, by–products, Michael J. Heaney International Trade the World Trade Atlas (WTA), as and packing. To calculate NV, we Analyst: Antidumping Duty published by GTIS. See, e.g., Certain multiplied the reported unit factor Administrative Review of Floor– Preserved Mushrooms from the People’s quantities by publicly available values Standing, Metal Top Ironing Tables and Republic of China: Preliminary Results in the surrogate country, India. Certain Parts Thereof from the People’s of Antidumping Duty New Shipper Foshan Shunde and Since Hardware Republic of China, dated September 7, Review, 74 FR 50946, 50950 (October 2, both reported by–product sales. 2010 (Factors Valuation Memorandum.) 2009). However, in October 2009, the Consistent with the Department’s The Department calculated SVs for Department learned that Indian import determination in the investigation of the majority of reported FOPs purchased data obtained from the WTA, as Diamond Sawblades from the PRC, we from NME sources using the published by GTIS, began identifying will deduct the surrogate value of by– contemporaneous, weighted average the original reporting currency for India products sold from normal value unit import value derived from the as the U.S. dollar. The Department then because the surrogate financial Ministry of Commerce of India (Indian contacted GTIS about the change in the statements on the record of this Import Statistics) for the POR. The original reporting currency for India administrative review contain no Department used Indian import data from the Indian rupee to the U.S. dollar. references to the treatment of by– from the Global Trade Atlas (GTA) Officials at GTIS explained that while products and because Since Hardware published by Global Trade Information GTIS obtains data on imports into India and Foshan Shunde provided evidence Services, Inc. (GTIS) which is sourced directly from the Ministry of Commerce, to demonstrate sales of their by– from the Directorate General of Government of India, as denominated products. See Final Determination of Commercial Intelligence & Statistics, and published in Indian rupees, the Sales at Less Than Fair Value and Final Indian Ministry of Commerce, to WTA software is limited with regard to Partial Affirmative Determination of determine the surrogate values for most the number of significant digits it can

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manage. Therefore, GTIS made a We valued diesel fuel using the rates We are preliminarily granting a by– decision to change the official reporting provided by the OECD’s International product offset to both Foshan Shunde currency for Indian data from the Indian Energy Agency’s publication: Key World and Since Hardware for scrap steel rupee to the U.S. dollar in order to Energy Statistics. The prices are based sales. See Factors Valuation reduce the loss of significant digits on July 2007 prices in India for diesel. Memorandum at pages 3–4. when obtaining data through the WTA See Factor Valuation Memorandum at Currency Conversion software. GTIS explained that it page 7. converts the Indian rupee to the U.S. For direct, indirect, and packing Where necessary, the Department dollar using the monthly Federal labor, pursuant to a recent decision by made currency conversions into U.S. Reserve exchange rate applicable to the the Federal Circuit, we have calculated dollars, in accordance with section relevant month of the data being an hourly wage rate to use in valuing 773(A) of the Act, based on the downloaded and converted. See Certain Foshan Shunde’s and Since Hardware’s exchange rates in effect on the date of Oil Country Tubular Goods from the reported labor input by averaging the U.S. sale, as certified by the Federal People’s Republic of China: Final earnings and/or wages in countries that Reserve Board. are economically comparable to the PRC Determination of Sales at Less Than Preliminary Results of Review Fair Value , Affirmative Final and that are significant producers of determination of Critical Circumstances, comparable merchandise. See Dorbest We preliminarily determine that the and Final Determination of Targeted Ltd. v. United States, 2009–1257 at 20 following antidumping duty margins Dumping, 75 FR 20335 (April 19, 2010), (Fed. Cir. 2010). Because this wage rate exist: and accompanying Issues and Decision does not separate labor rates into Exporter Margin (percent) Memorandum at Comment 4. different skill levels or types of labor, the Department has applied the same However, the data reported in the Foshan Shunde GTA software report import statistics, wage rate to all skill levels and types of Yongjian Housewares such as data from India, in the original labor reported by either Foshan Shunde & Hardware Co., Ltd. 8.49 reporting currency and thus these data or Since Hardware. See Factors Since Hardware ...... 56.49 correspond to the original currency Valuation Memorandum at page 7. Since Hardware claimed that it value reported by each country. Assessment Rates utilized hot rolled steel as a production Additionally, the data reported in GTA input of the subject merchandise. Pursuant to 19 CFR 351.212(b), the software are reported to the nearest digit However, Since Hardware’s supporting Department will determine, and CBP and thus there is not a loss of data by documentation provided to Department shall assess, antidumping duties on all rounding, as there is with the data officials at verification did not appropriate entries. The Department reported by the WTA software. demonstrate Since Hardware purchased will issue appropriate assessment Consequently, the Department will now hot–rolled steel in sizes of less than 1.1 instructions directly to CBP 15 days obtain import statistics from GTA for millimeters. See Since Hardware 2008– after the date of publication of the final valuing FOPs because the GTA import 2009 Verification Report at pages 21–23. results of this review. For assessment statistics are in the original reporting We, therefore, assigned the surrogate purposes, where possible, we calculated currency of the country from which the value of cold–rolled steel to value this importer–specific ad valorem data are obtained and have the same production input. assessment rates for ironing tables from level of accuracy as the original data The Department valued truck freight the PRC based on the ratio of the total released. expenses using a per–unit average rate amount of the dumping duties The Department valued electricity calculated from data on the Infobanc calculated for the examined sales to the using the updated electricity price data Web site: http://www.infobanccom/ total entered value of those same sales. for small, medium, and large industries, logistics/logtruck.htm. The logistics We will instruct CBP to assess as published by the Central Electricity section of this Web site contains inland antidumping duties on all appropriate Authority, an administrative body of the freight truck rates between many large entries covered by this review if any Government of India, in its publication Indian cities. Since this value is not assessment rate calculated in the final titled Electricity Tariff & Duty and contemporaneous with the POR, the results of this review is above de Average Rates of Electricity Supply in Department deflated the rate using the minimis. The final results of this review India, dated March 2008. These Wholesale Price Index of India. See shall be the basis for the assessment of electricity rates represent actual, Factors Valuation Memorandum at page antidumping duties on entries of country–wide, publically–available 9. merchandise covered by the final results information on tax–exclusive electricity The Department valued brokerage and of these reviews and for future deposits rates charged to small, medium, and handling using a price list of export of estimated duties, where applicable. large industries in India. We did not procedures necessary to export a inflate this value because utility rates standardized cargo of goods in India. Cash Deposit Requirements represent current rates, as indicated by The price list is compiled based on a The following cash deposit the effective dates listed for each of the survey case study of the procedural requirements will be effective upon rates provided. See Factors Valuation requirements for trading a standard publication of the final results of this Memorandum at page 7. shipment of goods by ocean transport in administrative review for all shipments The Department valued water using India that is published in Doing of the subject merchandise entered, or data from the Maharashtra Industrial Business 2010: India, by the World withdrawn from warehouse, for Development Corporation (MDIC) as it Bank. consumption on or after the publication includes a wide range of industrial To value factory overhead, selling, date, as provided for by section water tariffs. To value water, we used general and administrative (SG&A) 751(a)(2)(C) of the Act: (1) for the the average rate for industrial use from expenses, and profit the Department exporters listed above, the cash deposit MDIC water rates at http:// used the audited 2005–2006 financial rate will be established in the final www.midcindia.org. See Factors statements of Infiniti Modules Pvt. Ltd. results of this review (except, if the rate Valuation Memorandum at page 8. (Infiniti Modules). is zero or de minimis, i.e., less than 0.5

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percent, no cash deposit will be case brief and may make a rebuttal Hardware) has made sales to the United required for that company); (2) for presentation only on arguments States of the subject merchandise at previously investigated or reviewed PRC included in that party’s rebuttal brief in prices below normal value. We invite and non–PRC exporters not listed above accordance with 19 CFR 351.310(c). interested parties to comment on these that have separate rates, the cash Parties should confirm by telephone the preliminary results. Parties filing deposit rate will continue to be the time, date, and place of the hearing comments are requested to submit with exporter–specific rate published for the within 48 hours before the scheduled each argument (1) a statement of the most recent period; (3) for all PRC time. The Department will issue the issue and (2) a brief summary of the exporters of subject merchandise which final results of this review, which will argument(s). have not been found to be entitled to a include the results of its analysis of DATES: Effective Date: September 14, separate rate, the cash deposit rate will issues raised in the briefs, not later than 2010. be the PRC–wide rate of 157.68 percent 120 days after the date of publication of (see Amended Final and Order); and (4) this notice in accordance with section FOR FURTHER INFORMATION CONTACT: for all non–PRC exporters of subject 751(a)(3)(A) of the Act and 19 CFR Michael J. Heaney or Robert James, AD/ merchandise which have not received 351.213(h)(1). CVD Operations, Office 7, Import their own rate, the cash deposit rate will Administration, International Trade Notification to Importers be the rate applicable to the PRC Administration, U.S. Department of exporters that supplied that non–PRC This notice also serves as a Commerce, 14th Street and Constitution exporter. These deposit requirements, preliminary reminder to importers of Avenue, NW., Washington, DC 20230; when imposed, shall remain in effect their responsibility under 19 CFR telephone: (202) 482–4475 or (202) 482– until publication of the final results of 351.402(f) to file a certificate regarding 0649, respectively. the next administrative review. the reimbursement of antidumping SUPPLEMENTARY INFORMATION: duties prior to liquidation of the Background Public Comment relevant entries during these review The Department will disclose periods. Failure to comply with this On August 6, 2004, the Department calculations performed in connection requirement could result in the published in the Federal Register the with the preliminary results of this Secretary’s presumption that antidumping duty order regarding floor- review within five days of the date of reimbursement of antidumping duties standing, metal-top ironing tables and publication of this notice in accordance occurred and the subsequent assessment certain parts thereof (ironing tables) with 19 CFR 351.224(b). Any interested of double antidumping duties. from the PRC. See Notice of Amended party may request a hearing within 30 These preliminary results of Final Determination of Sales at Less days of publication of this notice in administrative review are issued and Than Fair Value and Antidumping Duty accordance with 19 CFR 351.310(c). this notice is published in accordance Order: Floor-Standing, Metal-Top Any hearing will be held 37 days after with sections 751(a)(1) and 777(i)(1) of Ironing Tables and Certain Parts the publication of this notice, or the first the Act. Thereof From the People’s Republic of workday thereafter unless the Dated: September 7, 2010. China, 69 FR 47868 (August 6, 2004) (Amended Final and Order). Department alters the date pursuant to Ronald K. Lorentzen, 19 CFR 351.310(d). Individuals who On August 1, 2008, the Department Deputy Assistant Secretary for Import published a notice of opportunity to wish to request a hearing must submit Administration. a written request within 30 days of the request an administrative review of the [FR Doc. 2010–22893 Filed 9–13–10; 8:45 am] publication of this notice in the Federal antidumping duty order on, inter alia, Register to the Assistant Secretary for BILLING CODE 3510–DS–S ironing tables from the People’s Import Administration, U.S. Department Republic of China. See Antidumping or of Commerce, Room 1870, 14th Street DEPARTMENT OF COMMERCE Countervailing Duty Order, Finding, or and Constitution Avenue, NW, Suspended Investigation; Opportunity Washington, DC 20230. Requests for a International Trade Administration to Request Administrative Review, 73 public hearing should contain: (1) the FR 44966 (August 1, 2008). On August party’s name, address, and telephone [A–570–888] 29, 2008, Home Products International number; (2) the number of participants; Floor-Standing, Metal-Top Ironing (the Petitioner in this proceeding) and (3) to the extent practicable, an Tables and Certain Parts Thereof From requested, in accordance with 19 CFR identification of the arguments to be the People’s Republic of China: 351.213(b)(1), an administrative review raised at the hearing. Preliminary Results of Antidumping of this order for Since Hardware. Since Unless otherwise notified by the Duty Administrative Review Hardware’s request for an Department, interested parties may administrative review of its sales submit case briefs within 30 days of the AGENCY: Import Administration, pursuant to 19 CFR 351.213(b)(2) date of publication of this notice in International Trade Administration, followed on September 2, 2008. (The accordance with 19 CFR Department of Commerce. deadline for filing a request for review, 351.309(c)(1)(ii). As part of the case SUMMARY: In response to requests from August 31, 2008, fell on a weekend; brief, parties are encouraged to provide interested parties, the Department of Since Hardware’s request was timely a summary of the arguments and a table Commerce (the Department) is filed on the first business day of authorities cited in accordance with conducting an administrative review of thereafter.) In its request for review, 19 CFR 351.309(c)(2). Rebuttal briefs, the antidumping duty order on floor- Since Hardware also requested that the which must be limited to issues raised standing, metal-top ironing tables and Department defer initiation of the in the case briefs, must be filed within certain parts thereof from the People’s administrative review for one year, five days after the case brief is filed in Republic of China (PRC). The period of pursuant to 19 CFR 351.213(c). accordance with 19 CFR 351.309(d). If a review (POR) is August 1, 2007 through On October 29, 2008, the Department hearing is held, an interested party may July 31, 2008. We have preliminarily published its notice of deferral of the make an affirmative presentation only determined that respondent Since administrative review for one year with on arguments included in that party’s Hardware (Guangzhou) Co., Ltd. (Since respect to Since Hardware, pursuant to

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19 CFR 351.213(c). (This notice of Verification without a pad and/or cover. All types deferral was inadvertently omitted from As provided in section 782(i)(3) of the and configurations of floor-standing, our September 30th notice of initiation). Act, we verified the information metal-top ironing tables are covered by See Initiation of Antidumping and submitted by Since Hardware upon this review. Furthermore, this order specifically Countervailing Duty Administrative which we have relied in these covers imports of ironing tables, Reviews and Deferral of Administrative preliminary results of review. We Review, 73 FR 64305 (October 29, 2008) assembled or unassembled, complete or conducted our verification from June 21, In accordance with the deferral of incomplete, and certain parts thereof. through June 25, 2010. The administrative review, on September 22, For purposes of this order, the term 2009, the Department initiated an Department’s verification report is on ‘‘unassembled’’ ironing table means a administrative review of Since the record of this review in the Central product requiring the attachment of the Hardware for the period of review of Records Unit, Room 1117 of the main leg assembly to the top or the August 1, 2007 through July 31, 2008. Department building. We used standard attachment of an included feature such See Initiation of Antidumping and verification procedures, including as an iron rest or linen rack. The term Countervailing Duty Administrative examination of relevant accounting and ‘‘complete’’ ironing table means product Reviews and Requests for Revocation in production records, as well as source sold as a ready-to-use ensemble Part, 74 FR 48224 (September 22, 2009). documentation provided by Since consisting of the metal-top table and a On February 16, 2010, the Department Hardware. See August 23, 2010 pad and cover, with or without issued a memorandum that tolled the Verification of the Sales and Factors additional features, e.g., iron rest or deadlines for all Import Administration Response of Since Hardware linen rack. The term ‘‘incomplete’’ cases by seven calendar days due to the (Guangzhou) Co. Ltd. in the ironing table means product shipped or recent Federal Government closure. See Antidumping Review of Floor Standing, sold as a ‘‘bare board’’—i.e., a metal-top Memorandum for the Record from Metal-Top Ironing Tables and Certain table only, without the pad and cover— Ronald Lorentzen, DAS for Import Parts Thereof from the People’s with or without additional features, e.g., Administration, regarding Tolling of Republic of China (PRC) (Since iron rest or linen rack. The major parts Administrative Deadlines as a Result of Hardware 2007–2008 Verification or components of ironing tables that are the Government Closure During the Report). intended to be covered by this order Recent Snowstorm, dated February 12, Surrogate Country and Surrogate Value under the term ‘‘certain parts thereof’’ 2010. Data consist of the metal top component On April 28, 2010, in accordance with (with or without assembled supports section 751(a)(3)(A) of the Tariff Act of On July 13, 2010, the Department sent and slides) and/or the leg components, 1930, as amended (the Act), and 19 CFR interested parties a letter inviting whether or not attached together as a leg 351.213(h)(2), the Department extended comments on surrogate country assembly. The order covers separately the deadline for the preliminary results selection and surrogate value data. See shipped metal top components and leg of review until September 7, 2010. See the Department’s Letter to All Interested components, without regard to whether Floor-Standing, Metal-Top Ironing Parties; Administrative Review of Floor- the respective quantities would yield an Tables and Certain Parts Thereof from Standing, Metal-Top, Ironing Tables and exact quantity of assembled ironing the People’s Republic of China: Parts Thereof from the People’s tables. Extension of the Time Limit for the Republic of China (PRC): Surrogate Ironing tables without legs (such as Preliminary Results of the Country List, dated July 13, 2010 models that mount on walls or over Administrative Review, 75 FR 22371 (Surrogate Country List). On August 17, doors) are not floor-standing and are (April 28, 2010). 2010, the Department received specifically excluded. Additionally, The Department issued its original information to value factors of tabletop or countertop models with antidumping questionnaire to Since production (FOP) from Since Hardware short legs that do not exceed 12 inches Hardware on September 29, 2009. Since and the Petitioner. With the exception in length (and which may or may not Hardware timely filed its response to of the surrogate value data to value labor collapse or retract) are specifically Section A of the questionnaire on rates, all of the surrogate values placed excluded. October 29, 2009; Since Hardware’s on the record were obtained from The subject ironing tables are Sections C and D responses followed on sources in India. currently classifiable under Harmonized November 19, 2009 and December 1, Scope of the Order Tariff Schedule of the United States 2009 respectively. Petitioner filed (HTSUS) subheading 9403.20.0011. The comments on Since Hardware’s sections For purposes of this order, the subject metal top and leg components A, C, and D responses on December 7, product covered consists of floor- are classified under HTSUS subheading 2009. standing, metal-top ironing tables, 9403.90.8040. Although the HTSUS The Department subsequently issued assembled or unassembled, complete or subheadings are provided for supplemental questionnaires to Since incomplete, and certain parts thereof. convenience and for Customs and Hardware on February 24, 2010, and The subject tables are designed and Border Protection (CBP) purposes, the May 5, 2010. Since Hardware timely used principally for the hand ironing or Department’s written description of the responded to each of the Department’s pressing of garments or other articles of scope remains dispositive. supplemental requests for information fabric. The subject tables have full- on March 25, 2010, April 9, 2010 and height leg assemblies that support the Non-Market-Economy Status June 3, 2010. On April 9, 2010, ironing surface at an appropriate (often In every case conducted by the Petitioner filed additional comments on adjustable) height above the floor. The Department involving the PRC, the PRC the original and supplemental sections subject tables are produced in a variety has been treated as a non-market A, C, and D responses submitted by of leg finishes, such as painted, plated, economy (NME). In accordance with Since Hardware. On August 26, 2010, or matte, and they are available with section 771(18)(C)(i) of the Act, any Petitioner filed comments concerning various features, including iron rests, determination that a foreign country is the Department’s verification of Since linen racks, and others. The subject an NME country shall remain in effect Hardware. ironing tables may be sold with or until revoked by the administering

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authority. See, e.g., Brake Rotors from NME country this single rate unless an rates analysis to determine whether the People’s Republic of China: Final exporter can demonstrate that it is Since Hardware is independent from Results and Partial Rescission of the sufficiently independent so as to be government control. 2004/2005 Administrative Review and entitled to a separate rate. See Policy Absence of De Jure Control Notice of Rescission of 2004/2005 New Bulletin 05.1: Separate Rates Practice Shipper Review, 71 FR 66304 and Application of Combination Rates The Department considers the (November 14, 2006). None of the in Antidumping Investigations following de jure criteria in determining parties to this administrative review has involving Non-Market Economy whether an individual company may be contested such treatment. Accordingly, Countries, available at http:// granted a separate rate: (1) An absence we calculated normal value (NV) in ia.ita.gov.policy/bull05-1.pdf. Exporters of restrictive stipulations associated accordance with section 773(c) of the can demonstrate this independence with an individual exporter’s business Act, which applies to NME countries. through the absence of both de jure and and export licenses; (2) any legislative de facto governmental control over enactments decentralizing control of Surrogate Country export activities. The Department companies; and (3) other formal When the Department investigates analyzes each entity exporting the measures by the government imports from an NME country and subject merchandise under a test arising decentralizing control of companies. See available information does not permit from the Final Determination of Sales at Sparklers, 56 FR 20588 at Comment 1. the Department to determine NV Less Than Fair Value: Sparklers from The evidence provided by Since pursuant to section 773(a) of the Act, the People’s Republic of China, 56 FR Hardware supports a finding of de jure then, pursuant to section 773(c)(4) of the 20588 at Comment 1 (May 6, 1991) absence of control based on the Act, the Department bases NV on an (Sparklers). This test was further following: (1) An absence of restrictive NME producer’s FOP’s to the extent developed in Notice of Final stipulations associated with its business possible, in one or more market- Determination of Sales at Less Than and export licenses, (2) applicable economy countries that (1) are at a level Fair Value: Silicon Carbide from the legislative enactments decentralizing of economic development comparable to People’s Republic of China, 59 FR 22585 control of companies; and (3) formal that of the NME country, and (2) are (May 2, 1994). (Silicon Carbide). measures (e.g., the Foreign Trade Law) significant producers of comparable However, if the Department determines decentralizing control of companies, merchandise. The Department that a company is wholly foreign-owned See, e.g., Since Hardware October 29, determined India, the Philippines, or located in a market economy, then a 2009 questionnaire response at pages A– Indonesia, Thailand, Ukraine and Peru separate rate analysis is unnecessary to 3–A–5. are countries comparable to the PRC in determine whether it is independent Absence of De Facto Control economic development for purposes of from government control. this administrative review. (See Accordingly, we have considered Typically, the Department considers Memorandum to Richard Weible from whether Since Hardware is independent four factors in evaluating whether a Carole Showers Request for a List of from government control, and therefore respondent is subject to de facto Surrogate Countries for an eligible for a separate rate. The government control of its export Administrative Review of the Department’s separate-rate test to functions: (1) Whether the export prices Antidumping Order on Floor Standing determine whether the exporters are are set by, or subject to, the approval of Metal-Top Ironing Tables and Certain independent from government control a government authority; (2) whether the Parts (‘‘Ironing Tables’’) from the does not consider, in general, respondent has authority to negotiate People’s Republic of China dated July 8, macroeconomic/border-type controls, and sign contracts and other 2010 (Surrogate Country List).) e.g., export licenses, quotas, and agreements; (3) whether the respondent Based on publicly available minimum export prices, particularly if has autonomy from the government in information placed on the record by these controls are imposed to prevent making decisions regarding the interested parties (e.g., production data), dumping. See Notice of Final selection of its management; and (4) the Department determines India to be Determination of Sales at Less Than whether the respondent retains the a reliable source for surrogate values Fair Value: Certain Preserved proceeds of its export sales and makes because India is at a comparable level of Mushrooms from the People’s Republic independent decisions regarding economic development pursuant to of China, 63 FR 72255, 72256 disposition of profits or financing of section 773(c)(4) of the Act, is a (December 31, 1998). The test focuses, losses. See Silicon Carbide 59 FR 22857; significant producer of the subject rather, on controls over the investment, see also Notice of Final Determination merchandise, and has publicly available pricing, and output decision-making of Sales at Less Than Fair Value: and reliable data. Accordingly, the process at the individual firm level. See, Furfuryl Alcohol from the People’s Department has selected India as the e.g., Notice of Final Determination of Republic Of China, 60 FR 22544 (May surrogate country for purposes of Sales at Less than Fair Value: Certain 8, 1995) The Department has valuing the FOPs because it meets the Cut-to-Length Carbon Steel Plate from determined that an analysis of de facto Department’s criteria for surrogate Ukraine, 62 FR 61754, 61758 (November control is critical in determining country selection. 19, 1997); see also Tapered Roller whether respondents are, in fact, subject Bearings and Parts Thereof, Finished to a degree of governmental control, Separate Rates and Unfinished, From the People’s which would preclude the Department In proceedings involving NME Republic of China; Final Results of from assigning separate rates. countries, the Department has a Antidumping Duty Administrative The evidence provided by Since rebuttable presumption that all Review, 62 FR 61276, 61279 (November Hardware supports a preliminary companies within the country are 17, 1997). finding of de facto absence of subject to government control and, thus, Since Hardware provided complete government control based on the should be assigned a single separate-rate information in its following: (1) The absence of evidence antidumping duty rate. It is the responses to our original and that the export prices are set by or are Department’s policy to assign all supplemental questionnaires. subject to the approval of a government exporters of subject merchandise in an Accordingly, we performed a separate- agency, (2) Since Hardware has

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authority to negotiate and sign contracts country and the Department finds that provided evidence that it sold its by- and other agreements, (3) Since the available information does not products. See Final Determination of Hardware has autonomy from permit the calculation of NV using Sales at Less Than Fair Value and Final government in making decisions home-market prices, third-country Partial Affirmative Determination of regarding the selection of management, prices, or constructed value under Critical Circumstances: Diamond and (4) Since Hardware retains the section 773(a) of the Act. When Sawblades and Parts Thereof from the proceeds of its export sales and make determining NV in an NME context, the People’s Republic of China, 71 FR 29303 independent decisions regarding Department will base NV on FOPs (May 22, 2006) (Diamond Sawblades disposition of profits or financing of because the presence of government from the PRC), and accompanying losses. See Since Hardware October 29, control on various aspects of these Issues and Decision Memorandum at 2010 Section A questionnaire response economies renders price comparisons Comment 9, unchanged in Notice of at A–5 through A–8. and the calculation of production costs Amended Final Determination of Sales In accordance with the criteria invalid under our normal at Less Than Fair Value: Diamond identified in Sparklers and Silicon methodologies. The Department’s Sawblades and Parts Thereof from the Carbide, the evidence placed on the questionnaires required Since Hardware People’s Republic of China, 71 FR 35864 record of this review by Since Hardware to provide information regarding the (June 22, 2006). This is consistent with demonstrates an absence of de jure and weighted-average FOP. accounting principles based on a de facto government control with In accordance with 19 CFR reasonable assumption that if a respect to Since Hardware’s exports of 351.408(c)(1), the Department will company sells a by-product, the by- the subject merchandise. Accordingly, normally use publically available product necessarily incurs expenses for we have determined that Since information to find an appropriate SV to overhead, SG&A, and profit. Id. Hardware has demonstrated eligibility value FOPs, but when a producer In selecting the surrogate Indian for a separate rate. sources an input from a market values, we considered the quality, economy and pays for it in market- specificity, and contemporaneity of the Fair Value Comparisons economy currency, the Department may data, in accordance with our practice. To determine whether Since value the factor using the actual price See, e.g., Electrolytic Manganese Hardware’s sales of the subject paid for the input. See 19 CFR Dioxide from the People’s Republic of merchandise to the United States were 351.408(c)(1); see also Shakeproof China: Final Determination of Sales at made at prices below normal value Assembly Components, Div. of Ill. Tool Less Than Fair Value and (NV), we compared its United States Works, Inc. v. United States, 268 F. 3rd accompanying Issues and Decision prices to NV, as described in the ‘‘U.S. 1376, 1382–1383 (Fed. Cir. 2001) Memorandum at Comment 2. The Price’’ and ‘‘Normal Value’’ sections of (affirming the Department’s use of Department adjusted input prices by this notice. See section 773(a) of the market-based prices to value FOPs). including freight costs to make them Act. During the POR, Since Hardware delivered prices, as appropriate. purchased a certain packing material Specifically, the Department added to U.S. Price from a market economy supplier. Indian import SVs a surrogate freight We based U.S. price for Since Because Since Hardware purchased cost using the shorter of the reported Hardware on export price (EP) in more than 33 percent of its total volume distance from the domestic supplier to accordance with section 772(a) of the of this material from a market economy the factory or the distance from the Act, because the first sale to an supplier, we used the market economy nearest seaport to the factory of unaffiliated purchaser was made prior price of that material to value this input. production. This adjustment is in to importation, and constructed export See Since Hardware December 1, 2009 accordance with the decision of the U.S. price (CEP) was not otherwise Section D response at Appendix D–6. Court of Appeals for the Federal Circuit warranted by the facts on the record. We We calculated NV based on FOPs in (Federal Circuit) in Sigma Corp. v. calculated EP based on the packed price accordance with section 773(c)(3) and United States, 117 F. 3rd 1401, 1407–08 from the exporter to the first unaffiliated (4) of the Act and 19 CFR 351.408(c). (Fed. Cir. 1997). A detailed description customer in the United States. We The FOPs include but are not limited to: of all SVs used to value Since deducted foreign inland freight, and (1) Hours of labor required; (2) Hardware’s FOPs may be found in the foreign brokerage and handling quantities of raw material employed; (3) September 7, 2010 Memorandum to the expenses from the starting price (gross amounts of energy and other utilities File through Robert James, Program unit price), in accordance with section consumed; and (4) representative capital Manager, Office 7 from Michael J. costs. The Department used FOPs 772(c) of the Act. Where appropriate, we Heaney International Trade Analyst: reported by Since Hardware for made an addition to U.S. price for Antidumping Duty Administrative materials, energy, labor, by-products, billing adjustments. Review of Floor-Standing, Metal Top and packing. To calculate NV, we Since Hardware incurred foreign Ironing Tables and Certain Parts Thereof multiplied the reported unit factor inland freight and foreign brokerage and from the People’s Republic of China, quantities by publicly available values handling expenses from PRC service dated September 7, 2010 (Factors in the surrogate country, India. providers. We therefore valued these Valuation Memorandum.) In addition, Since Hardware reported The Department calculated SVs for services using Indian surrogate values by-product sales. Consistent with the the majority of reported FOPs purchased (see ‘‘Factors of Production’’ section Department’s determination in the from NME sources using the below for further discussion). investigation of Diamond Sawblades contemporaneous, weighted average Normal Value from the PRC, we will deduct the unit import value derived from the surrogate value of the by-product from Ministry of Commerce of India (Indian Factors of Production (FOP) NV because the surrogate financial Import Statistics) for the POR. The Section 773(c)(1) of the Act provides statements on the record of this Department used Indian import data that the Department shall determine NV administrative review contain no from the Global Trade Atlas (GTA) using an FOP methodology if the references to the treatment of by- published by Global Trade Information merchandise is exported from an NME products, and because Since Hardware Services, Inc. (GTIS) which is sourced

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from the Directorate General of Government of India, as denominated MDIC water rates at http:// Commercial Intelligence & Statistics, and published in Indian rupees, the www.midcindia.org. See Factors Indian Ministry of Commerce, to WTA software is limited with regard to Valuation Memorandum at page 6. determine the surrogate values for most the number of significant digits it can We valued diesel fuel using the rates raw materials, by-products and packing manage. Therefore, GTIS made a provided by the OECD’s International material inputs. The Department has decision to change the official reporting Energy Agency’s publication: Key World disregarded statistics from NMEs, currency for Indian data from the Indian Energy Statistics from 2004 and 2005. countries with generally available rupee to the U.S. dollar in order to The prices are based on 2004 and 2005 export subsidies, and undetermined reduce the loss of significant digits first quarter prices of automotive diesel countries, in calculating average value. when obtaining data through the WTA fuel retail prices. See Factor Valuation In accordance with the Omnibus Trade software. GTIS explained that it Memorandum at page 6. and Competiveness Act of 1988, Conf. converts the Indian Rupee to the U.S. For direct, indirect, and packing Report to Accompany HR. 3, HR Rep. dollar using the monthly Federal labor, pursuant to a recent decision by No., 100th Cong., 2nd Session (1988), Reserve exchange rate applicable to the the Federal Circuit, we have calculated the Department continues to apply its relevant month of the data being an hourly wage rate to use in valuing long-standing practice of disregarding downloaded and converted. See, Certain Since Hardware’s reported labor input surrogate values if it has a reason to Oil Country Tubular Goods from the by averaging earnings and/or wages in believe or suspect the source data may People’s Republic of China: Final countries that are economically be subsidized. In this regard, the Determination of Sales at Less Than comparable to the PRC and that are Department has previously found that it Fair Value, Affirmative Final significant producers of comparable is appropriate to disregard such prices determination of Critical Circumstances, merchandise. See Dorbest Ltd. v. United from India, Indonesia, South Korea and and Final Determination of Targeted States, 2009–1257 at 20 (Fed. Cir. 2010). Thailand because we have determined Dumping, 75 FR 20335 (April 19, 2010), Because this wage rate does not separate that these countries maintain broadly and accompanying Issues and Decision labor rates into different skill levels or available, non-industry specific export Memorandum at Comment 4. types of labor, the Department has subsidies. See, e.g. Expedited Sunset However, the data reported in the applied the same wage rate to all skill Review of the Countervailing Duty Order GTA software report import statistics, levels and types of labor reported by on Carbazole Violet Pigment 23 from such as data from India, in the original Since Hardware. See Factors Valuation India, 75 FR 13257 (March 19, 2010), reporting currency and thus these data Memorandum at page 5. Since Hardware claimed that it and accompanying Issues and Decisions correspond to the original currency utilized hot rolled steel as a production Memorandum at pages 4–5; Expedited value reported by each country. input of the subject merchandise. Sunset Review of the Countervailing Additionally, the data reported in GTA However, Since Hardware’s supporting Duty Order on Certain Cut-To Length software are reported to the nearest digit documentation provided to department Carbon Quality Steel Plate from and thus there is not a loss of data by rounding, as there is with the data officials at verification did not Indonesia, 70 FR 45692 (August 8, demonstrate Since Hardware purchased 2005), and accompanying Issues and reported by the WTA software. Consequently, the Department will now hot-rolled steel in sizes of less than 1.1 Decisions Memorandum at page 4; millimeters. See Since Hardware 2007– Certain Hot-Rolled Carbon Steel Flat obtain import statistics from GTA for valuing FOPs because the GTA import 2008 Verification Report at pages 25–27. Products from Thailand: Final Results statistics are in the original reporting We, therefore, assigned the surrogate of Countervailing Duty Determination, currency of the country from which the value of cold-rolled steel to value this 66 FR 50410 (October 3, 2001), and data are obtained and have the same production input. accompanying Issues and Decision level of accuracy as the original data The Department valued truck freight Memorandum at page 23. For a detailed released. expenses using a per-unit average rate description of all surrogate values used The Department valued electricity calculated from data on the Infobanc for Since Hardware, see the Factors using the updated electricity price data Web site: http://www.infobanccom/ Valuation Memorandum. for small, medium, and large industries, logistics/logtruck.htm. The logistics In past cases, it has been the as published by the Central Electricity section of this Web site contains inland Department’s practice to value various Authority, an administrative body of the freight truck rates between many large FOPs using import statistics of the Government of India, in its publication Indian cities. Since this value is not primary selected surrogate country from titled Electricity Tariff & Duty and contemporaneous with the POR, the the World Trade Atlas (WTA), as Average Rates of Electricity Supply in Department deflated the rate using the published by GTIS. See, e.g., Certain India, dated March 2008. These Wholesale Price Index of India. See Preserved Mushrooms from the People’s electricity rates represent actual, Factors Valuation Memorandum at Republic of China: Preliminary Results country-wide, publically available page 7. of Antidumping Duty New Shipper information on tax-exclusive electricity The Department valued brokerage and Review, 74 FR 50946, 50950 (October 2, rates charged to small, medium, and handling using a price list of export 2009). However, in October 2009, the large industries in India. We did not procedures necessary to export a Department learned that Indian import inflate this value because utility rates standardized cargo of goods in India. data obtained from the WTA, as represent current rates, as indicated by The price list is compiled based on a published by GTIS, began identifying the effective dates listed for each of the survey case study of the procedural the original reporting currency for India rates provided. See Factors Valuation requirements for trading a standard as the U.S. dollar. The Department then Memorandum at page 6. shipment of goods by ocean transport in contacted GTIS about the change in the The Department valued water using India that is published in Doing original reporting currency for India data from the Maharashtra Industrial Business 2010: India, by the World from the Indian rupee to the U.S. dollar. Development Corporation (MDIC) as it Bank. Officials at GTIS explained that while includes a wide range of industrial To value factory overhead, selling, GTIS obtains data on imports into India water tariffs. To value water, we used general and administrative (SG&A) directly from the Ministry of Commerce, the average rate for industrial use from expenses, and profit the Department

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used the audited financial statement of required for that company); (2) for presentation only on arguments 2005–2006 Infiniti Modules Pvt. Ltd. previously investigated or reviewed PRC included in that party’s rebuttal brief in (Infiniti Modules). and non-PRC exporters not listed above accordance with 19 CFR 351.310(c). We are preliminarily granting an that have separate rates, the cash Parties should confirm by telephone the offset to Since Hardware for its scrap deposit rate will continue to be the time, date, and place of the hearing steel sales. See Factors Valuation exporter-specific rate published for the within 48 hours before the scheduled Memorandum at page 3. most recent period; (3) for all PRC time. The Department will issue the Currency Conversion exporters of subject merchandise which final results of this review, which will have not been found to be entitled to a include the results of its analysis of Where necessary, the Department separate rate, the cash deposit rate will issues raised in the briefs, not later than made currency conversions into U.S. be the PRC-wide rate of 157.68 percent 120 days after the date of publication of dollars, in accordance with section (see Amended Final and Order); and (4) this notice in accordance with section 773(A) of the Act, based on the for all non-PRC exporters of subject 751(a)(3)(A) of the Act and 19 CFR exchange rates in effect on the date of merchandise which have not received 351.213(h)(1). the U.S. sale, as certified by the Federal their own rate, the cash deposit rate will Notification to Importers Reserve Board. be the rate applicable to the PRC Preliminary Results of Review exporters that supplied that non-PRC This notice also serves as a exporter. These deposit requirements, preliminary reminder to importers of We preliminarily determine that the when imposed, shall remain in effect their responsibility under 19 CFR following antidumping duty margins until publication of the final results of 351.402(f) to file a certificate regarding exist: the next administrative review. the reimbursement of antidumping duties prior to liquidation of the Exporter Margin (percent) Public Comment relevant entries during these review Since Hardware ...... 52.06 The Department will disclose periods. Failure to comply with this calculations performed in connection requirement could result in the with the preliminary results of this Secretary’s presumption that Assessment Rates review within five days of the date of reimbursement of antidumping duties Pursuant to 19 CFR 351.212(b), the publication of this notice in accordance occurred and the subsequent assessment Department will determine, and CBP with 19 CFR 351.224(b). Any interested of double antidumping duties. These shall assess, antidumping duties on all party may request a hearing within 30 preliminary results of administrative appropriate entries. The Department days of publication of this notice in review are issued and this notice is will issue appropriate assessment accordance with 19 CFR 351.310(c). published in accordance with sections instructions directly to CBP 15 days Any hearing will be held 37 days after 751(a)(1) and 777(i)(1) of the Act. after the date of publication of the final the publication of this notice, or the first Dated: September 7, 2010. results of this review. For assessment workday thereafter unless the Ronald K. Lorentzen, purposes, where possible, we calculated Department alters the date pursuant to importer-specific ad valorem assessment Deputy Assistant Secretary for Import 19 CFR 351.310(d). Individuals who Administration. rates for ironing tables from the PRC wish to request a hearing must submit [FR Doc. 2010–22898 Filed 9–13–10; 8:45 am] based on the ratio of the total amount of a written request within 30 days of the the dumping duties calculated for the publication of this notice in the Federal BILLING CODE 3510–DS–P examined sales to the total entered Register to the Assistant Secretary for value of those same sales. We will Import Administration, U.S. Department DEPARTMENT OF COMMERCE instruct CBP to assess antidumping of Commerce, Room 1870, 14th Street duties on all appropriate entries covered and Constitution Avenue, NW., International Trade Administration by this review if any assessment rate Washington, DC 20230. Requests for a calculated in the final results of this public hearing should contain: (1) The [C–580–851] review is above de minimis. The final party’s name, address, and telephone Dynamic Random Access Memory results of this review shall be the basis number; (2) the number of participants; Semiconductors From the Republic of for the assessment of antidumping and (3) to the extent practicable, an Korea: Preliminary Results of duties on entries of merchandise identification of the arguments to be Countervailing Duty Administrative covered by the final results of these raised at the hearing. Review reviews and for future deposits of Unless otherwise notified by the estimated duties, where applicable. Department, interested parties may AGENCY: Import Administration, submit case briefs within 30 days of the International Trade Administration, Cash Deposit Requirements date of publication of this notice in Department of Commerce. The following cash deposit accordance with 19 CFR SUMMARY: The Department of Commerce requirements will be effective upon 351.309(c)(1)(ii). As part of the case is conducting an administrative review publication of the final results of this brief, parties are encouraged to provide of the countervailing duty order on administrative review for all shipments a summary of the arguments and a table dynamic random access memory of the subject merchandise entered, or of authorities in accordance with 19 semiconductors from the Republic of withdrawn from warehouse, for CFR 351.309(c)(2). Rebuttal briefs, Korea for the period January 1, 2008, consumption on or after the publication which must be limited to issues raised through August 10, 2008. We date, as provided for by section in the case briefs, must be filed within preliminarily find that Hynix 751(a)(2)(C) of the Act: (1) For the five days after the case brief is filed in Semiconductor, Inc. received exporters listed above, the cash deposit accordance with 19 CFR 351.309(d). If a countervailable subsidies during the rate will be established in the final hearing is held, an interested party may period of review. If these preliminary results of this review (except, if the rate make an affirmative presentation only results are adopted in our final results is zero or de minimis, i.e., less than 0.5 on arguments included in that party’s of this review, we will instruct U.S. percent, no cash deposit will be case brief and may make a rebuttal Customs and Border Protection to assess

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countervailing duties as detailed in the December 22, 2009, we initiated an memory, as well as various types of ‘‘Preliminary Results of Review’’ section investigation of preferential income tax DRAMS, including fast page-mode, of this notice. Interested parties are treatment for Hynix’s 2001 and 2002 extended data-out, burst extended data- invited to comment on these debt restructurings. See Memorandum out, synchronous dynamic RAM, preliminary results. See the ‘‘Public to Susan Kuhbach, Director, Office 1, Rambus DRAM, and Double Data Rate Comment’’ section of this notice. ‘‘Sixth Countervailing Duty DRAM. The scope also includes any DATES: Effective Date: September 14, Administrative Review: Dynamic future density, packaging, or assembling 2010. Random Access Memory of DRAMS. Also included in the scope Semiconductors From Korea: New of the order are removable memory FOR FURTHER INFORMATION CONTACT: Subsidy Allegations Memorandum’’ modules placed on motherboards, with Shane Subler or Jennifer Meek, Office of (December 22, 2009) (‘‘NSA Memo’’), or without a central processing unit, AD/CVD Operations, Office 1, Import available in the Central Records Unit, unless the importer of the motherboards Administration, International Trade Room 1117 of the main Department certifies with U.S. Customs and Border Administration, U.S. Department of building. Protection (‘‘CBP’’) that neither it, nor a Commerce, Room 3069, 14th Street, and On April 20, 2010, we published a party related to it or under contract to Constitution Avenue, NW., Washington, postponement of the preliminary results it, will remove the modules from the DC 20230; telephone: (202) 482–0189 in this review until September 7, 2010. motherboards after importation. The and (202) 482–2778, respectively. See Dynamic Random Access Memory scope of the order does not include SUPPLEMENTARY INFORMATION: Semiconductors From the Republic of DRAMS or memory modules that are re- Background Korea: Extension of Time Limit for imported for repair or replacement. Preliminary Results of Countervailing The DRAMS subject to the order are On August 11, 2003, the Department Duty Administrative Review, 75 FR currently classifiable under subheadings of Commerce (‘‘the Department’’) 20564 (April 20, 2010). 8542.21.8005, 8542.21.8020 through published a countervailing duty order 8542.21.8030, and 8542.32.0001 through on dynamic random access memory Scope of the Order 8542.32.0023 of the Harmonized Tariff semiconductors (‘‘DRAMS’’) From the The products covered by the order are Schedule of the United States Republic of Korea (‘‘Korea’’). See Notice DRAMS from Korea, whether assembled (‘‘HTSUS’’). The memory modules of Countervailing Duty Order: Dynamic or unassembled. Assembled DRAMS containing DRAMS from Korea, Random Access Memory include all package types. Unassembled described above, are currently Semiconductors From the Republic of DRAMS include processed wafers, classifiable under subheadings Korea, 68 FR 47546 (August 11, 2003) uncut die, and cut die. Processed wafers 8473.30.1040, 8473.30.1080, (‘‘CVD Order’’). On August 14, 2009, we fabricated in Korea, but assembled into 8473.30.1140, and 8473.30.1180 of the published a notice of ‘‘Opportunity to finished semiconductors outside Korea HTSUS. Removable memory modules Request Administrative Review’’ for this are also included in the scope. placed on motherboards are classifiable countervailing duty order. See Processed wafers fabricated outside under subheadings 8443.99.2500, Antidumping or Countervailing Duty Korea and assembled into finished 8443.99.2550, 8471.50.0085, Order, Finding, or Suspended semiconductors in Korea are not 8471.50.0150, 8517.30.5000, Investigation; Opportunity to Request included in the scope. 8517.50.1000, 8517.50.5000, Administrative Review, 74 FR 41120 The scope of the order additionally 8517.50.9000, 8517.61.0000, (August 14, 2009). On August 18, 2009, includes memory modules containing 8517.62.0010, 8517.62.0050, we received a request for review from DRAMS from Korea. A memory module 8517.69.0000, 8517.70.0000, Hynix Semiconductor, Inc. (‘‘Hynix’’). is a collection of DRAMS, the sole 8517.90.3400, 8517.90.3600, On August 21, 2009, we received a function of which is memory. Memory 8517.90.3800, 8517.90.4400, request for review of Hynix and its modules include single in-line 8542.21.8005, 8542.21.8020, affiliates from the petitioner, Micron processing modules, single in-line 8542.21.8021, 8542.21.8022, Technology, Inc. (‘‘Micron’’). In memory modules, dual in-line memory 8542.21.8023, 8542.21.8024, accordance with 19 CFR modules, small outline dual in-line 8542.21.8025, 8542.21.8026, 351.221(c)(1)(i), we published a notice memory modules, Rambus in-line 8542.21.8027, 8542.21.8028, of initiation of the review on September memory modules, and memory cards or 8542.21.8029, 8542.21.8030, 22, 2009. See Initiation of Antidumping other collections of DRAMS, whether 8542.31.0000, 8542.33.0000, and Countervailing Duty Administrative unmounted or mounted on a circuit 8542.39.0000, 8543.89.9300, and Reviews and Request for Revocation in board. Modules that contain other parts 8543.89.9600 of the HTSUS. However, Part, 74 FR 48224 (September 22, 2009). that are needed to support the function the product description, and not the On December 22, 2009, we issued of memory are covered. Only those HTSUS classification, is dispositive of countervailing duty questionnaires to modules that contain additional items whether merchandise imported into the the Government of Korea (‘‘GOK’’) and which alter the function of the module United States falls within the scope. Hynix. We received responses to these to something other than memory, such Scope Rulings questionnaires on February 25, 2010, as video graphics adapter boards and On December 29, 2004, the and February 26, 2010, from Hynix and cards, are not included in the scope. Department received a request from the GOK, respectively. On May 27, The order also covers future DRAMS Cisco Systems, Inc., to determine 2010, we issued supplemental module types. whether removable memory modules questionnaires to Hynix and the GOK. The scope of the order additionally placed on motherboards that are We received responses on June 3, 2010, includes, but is not limited to, video imported for repair or refurbishment are and June 25, 2010, respectively. random access memory and within the scope of the order. See CVD We received new subsidy allegations synchronous graphics random access from Micron on October 5, 2009.1 On Order. The Department initiated a scope Semiconductors From Korea: New Subsidy inquiry pursuant to 19 CFR 351.225(e) 1 See submission from Micron to the Department, Allegations (October 5, 2009) (‘‘New Subsidy on February 4, 2005. On January 12, Re: Dynamic Random Access Memory Allegations’’). 2006, the Department issued a final

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scope ruling, finding that removable Department’s regulations creates a government-provided loans were taken memory modules placed on rebuttable presumption that the AUL out. For countervailable variable-rate motherboards that are imported for will be taken from the U.S. Internal loans outstanding during the POR, repair or refurbishment are not within Revenue Service’s 1977 Class Life Asset pursuant to 19 CFR 351.505(a)(5)(i), we the scope of the CVD Order provided Depreciation Range System (the ‘‘IRS used the interest rates of variable-rate that the importer certifies that it will Tables’’). For DRAMS, the IRS Tables lending instruments issued during the destroy any memory modules that are prescribe an AUL of five years. During year in which the government loans removed for repair or refurbishment. this review, none of the interested were issued. Where such loans were See Memorandum from Stephen J. parties disputed this allocation period. unavailable, the Department, consistent Claeys to David M. Spooner, regarding Therefore, we continue to allocate non- with 19 CFR 351.505(a)(3)(ii), followed Final Scope Ruling, Countervailing Duty recurring benefits over the five-year our prior practice and relied upon Order on DRAMs From the Republic of AUL. lending rates reported in the IMF’s International Financial Statistics Korea (January 12, 2006). Discount Rates and Benchmarks for Yearbook. See Final Affirmative Loans Period of Review Countervailing Duty Determination: The period for which we are For loans that we found Dynamic Random Access Memory measuring subsidies, i.e., the period of countervailable in the investigation or Semiconductors From the Republic of review (‘‘POR’’), is January 1, 2008, in the prior administrative reviews, and Korea, 68 FR 37122 (June 23, 2003) and through August 10, 2008. which continued to be outstanding accompanying Issues and Decision during the POR, we have used the Memorandum at 5–7. Changes in Ownership benchmarks from the prior Analysis of Programs Effective June 30, 2003, the administrative reviews. Department adopted a new methodology For long-term, won-denominated I. Program Preliminarily Determined To for analyzing privatizations in the loans originating in 1986 through 1995, Confer Subsidies—Income Tax countervailing duty context. See Notice we used the average interest rate for Treatment of Hynix’s Debt of Final Modification of Agency Practice three-year corporate bonds as reported Restructurings by the Bank of Korea (‘‘BOK’’) or the Under Section 123 of the Uruguay In the NSA Memo, we initiated an Round Agreements Act, 68 FR 37125 International Monetary Fund’s (‘‘IMF’s’’) International Financial Statistics investigation into the tax treatment of (June 23, 2003). The Department’s new Hynix’s debt restructurings under which methodology is based on a rebuttable Yearbook. For long-term won-denominated loans Hynix issued shares in 2002 and 2003. ‘‘baseline’’ presumption that non- In their respective February 25, 2010 recurring, allocable subsidies continue that originated in the years in which we previously determined Hynix to be and February 26, 2010, questionnaire to benefit the subsidy recipient responses, Hynix and the GOK throughout the allocation period (which uncreditworthy (2000 through 2003), we used the formula described in 19 CFR responded to the Department’s standard normally corresponds to the average 351.505(a)(3)(iii) to determine the questions on this program and provided useful life (‘‘AUL’’) of the recipient’s benchmark interest rate. We did not use additional explanation. On May 27, assets). However, an interested party the rates on Hynix’s corporate bonds for 2010, we sent a supplemental may rebut this baseline presumption by 2000–2003 for any calculations because questionnaire to the GOK on this demonstrating that, during the Hynix either did not obtain bonds or program. The GOK responded on June allocation period, a change in obtained bonds through countervailable 25, 2010. ownership occurred in which the former debt restructurings during those years. Based on information in the GOK’s owner sold all or substantially all of a For the probability of default by an and Hynix’s responses, we preliminarily company or its assets, retaining no find the GOK’s tax treatment of the debt- uncreditworthy company, we used the control of the company or its assets, and for-equity swap for which Hynix issued average cumulative default rates that the sale was an arm’s-length shares in 2002 to be countervailable.2 A reported for the Caa- to C-rated category transaction for fair market value. ruling by the Korean tax authority in of companies as published in Moody’s Hynix’s ownership changed during the 2000 (Bubin 46012–1608, July 20, 2000) Investors Service, ‘‘Historical Default AUL period as a result of debt-to-equity established new rules for the tax Rates of Corporate Bond Issuers, 1920– conversions in December 2002 and treatment of debt-for-equity swaps by 1997’’ (February 1998). For the various asset sales. In addition, Hynix companies undergoing voluntary probability of default by a creditworthy reported that its ownership changed in restructuring. The ruling stated: company, we used the cumulative 2006 because Hynix’s Share default rates for investment grade bonds In case a domestic corporation carries out Management Council decreased its as published in Moody’s Investors debt-equity swap in accordance with the ownership share in Hynix from 50.6 corporate normalization plan, with respect to Service: ‘‘Statistical Tables of Default percent to 36 percent. However, in this the amount accounted, pursuant to the Rates and Recovery Rates’’ (February administrative review, Hynix did not corporate financial accounting standards, as 1998). For the commercial interest rates challenge this baseline presumption. debt exemption gains resulting from the charged to creditworthy borrowers, we amount of difference between the issuance See Hynix’s February 25, 2010, used the rates for won-denominated price of the concerned stock and its market questionnaire response at 13. corporate bonds as reported by the BOK price, said amount ought to be deemed as the Subsidies Valuation Information and the U.S. dollar lending rates published by the IMF for each year. 2 In the NSA Memo, we initiated an investigation Allocation Period into the GOK’s tax treatment of the debt-for-equity For countervailable short-term and swaps for which Hynix issued shares in 2002 and Pursuant to 19 CFR 351.524(b), non- long-term foreign currency-denominated 2003. Based on proprietary information in Hynix’s recurring subsidies are allocated over a loans, pursuant to 19 CFR February 25, 2010, questionnaire response, period corresponding to the AUL of the 351.505(a)(2)(iv), we would normally however, we preliminarily find that only the 2002 issuance applies to this POR. See Memorandum renewable physical assets used to use an annual average of the interest from Shane Subler to Susan Kuhbach, ‘‘Preliminary produce the subject merchandise. rates on comparable commercial loans Results Calculations for Hynix Semiconductor, Section 351.524(d)(2) of the during the year in which the Inc.,’’ (September 7, 2010).

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amount in excess of the par value of the stock normally consider the date of receipt of II. Programs Previously Determined To shares issued * * * and as such, said a benefit from a tax exemption or Confer Subsidies amount shall not be included into the taxable remission as the date on which the firm We examined the following programs income or deductible expense of each filed its tax return. Because Hynix (applicable) business year.3 determined to confer subsidies in the General Korean tax principles treat received this benefit when it filed its investigation and prior administrative decreased liabilities through the 2007 tax year tax return, we reviews. exemption or lapse of debts as a taxable preliminarily find that Hynix received A. GOK Entrustment or Direction Prior gain for income tax purposes.4 Under the benefit during the POR. to 2004 the Bubin 46012–1608 ruling, however, Regarding specificity, in our May 27, the GOK deemed that any gain from 2010, supplemental questionnaire, we In the investigation, the Department debt forgiveness occurring through a asked the GOK to report the number of determined that the GOK entrusted or debt-for-equity swap could be excluded companies that underwent debt-for- directed creditor banks to participate in from taxable income. equity swaps in the ROK from 2001 financial restructuring programs, and to On June 7, 2002, in the context of its through 2003. The GOK responded that provide credit and other funds to Hynix, restructuring under the GOK’s Corporate it does not maintain information on in order to assist Hynix through its Restructuring Promotion Act (‘‘CRPA’’), which or how many companies went financial difficulties. The financial Hynix converted bonds to equity and through debt-to-equity swaps during the assistance provided to Hynix by its 6 issued shares to its creditors. Hynix’s period. Thus, record information does creditors took various forms, including 2002 financial statements show that the not allow us to determine actual use of new loans, convertible and other bonds, issue price of these shares exceeded the the program. extensions of maturities and interest market value of the shares on June 7, Section 776(a)(1) of the Act states that rate reductions on existing debt (which 2002.5 Because of the Bubin 46012– the Department may use ‘‘facts we treated as new loans), Documents 1608 ruling, Hynix did not include the available’’ if necessary information is Against Acceptance financing, usance difference between the issue price and not on the record. Information in financing, overdraft lines of credit, debt the market price of the shares as a gain Hynix’s financial statements and in a forgiveness, and debt-for-equity swaps. for its 2002 tax year taxable income. Due press release from the GOK’s Financial The Department determined that these to losses and loss carryforwards in 2002 Supervisory Service (‘‘FSS’’) shows that were financial contributions that and subsequent years, the exclusion of Hynix accounted for approximately 36 constituted countervailable subsidies this amount from Hynix’s taxable percent of the debt swapped for equity during the period of investigation. 7 income in 2002 did not affect the under the CRPA. We preliminarily In prior administrative reviews, the amount of taxes owed by Hynix until determine that this percentage provides Department also found that the GOK tax year 2007. the best proxy for measuring Hynix’s continued to entrust or direct Hynix’s We preliminarily find that the share of the benefit provided by the creditors to provide financial assistance exclusion of the gain from Hynix’s Bubin 46012–1608 ruling. We believe to Hynix throughout 2002 and 2003. taxable income constitutes a financial this is a reasonable measure because a The financial assistance provided to contribution within the meaning of company’s share of the benefit provided Hynix during this period included the section 771(5)(D)(ii) of the Tariff Act of by the exclusion is likely to be roughly December 2002 debt-for-equity swap 1930, as amended (‘‘the Act’’), because equal to the company’s share of debt- and the extensions of maturities and/or the GOK forewent income tax revenue for-equity swaps under the CRPA. On interest rate deductions on existing that it otherwise would have collected this basis, we preliminarily find the debt. in the absence of the exclusion. We also exclusion to be specific to Hynix under With the exception of loans find that Hynix received a benefit under section 771(5A)(D)(iii)(III) of the Act outstanding during the POR, all forms of 19 CFR 351.509(a) because the because Hynix received a assistance under GOK Entrustment or exemption reduced the base (i.e., disproportionately large share of the Direction Prior to 2004 were either fully Hynix’s taxable income) used to income tax benefits relative to its size allocated prior to the POR or were not calculate Hynix’s income taxes for the among all companies in Korea. outstanding during the POR. Thus, we 2007 tax year. Thus, a benefit exists to To calculate the benefit under this have only calculated the benefit from the extent that the income taxes paid by program, in accordance with 19 CFR loans outstanding during the POR. In Hynix as a result of the exclusion were 351.509(a), we divided the income taxes calculating the benefit, we have less than the taxes Hynix would have Hynix otherwise would have paid in the followed the same methodology used in paid in the absence of the exclusion. absence of the exclusion by Hynix’s prior administrative reviews. We Regarding timing, under 19 CFR total sales during the POR. On this followed the methodology described at 351.509(b), the Department will basis, we preliminarily determine that 19 CFR 351.505, using the benchmarks Hynix received a countervailable described in the ‘‘Discount Rates and 3 See Micron’s New Subsidy Allegations at 6 and subsidy of 2.84 percent ad valorem. Benchmarks for Loans’’ section above. Exhibit 13. We divided the total benefit from the 4 See ‘‘Korean Taxation,’’ Ministry of Finance and 6 See the GOK’s June 25, 2010, supplemental outstanding loans by Hynix’s POR sales. Economy (2005), at page 90, Chapter III, 5(a)(7); questionnaire response at 3. provided at Attachment 2 of Micron’s New Subsidy 7 See Attachment 7 of Micron’s New Subsidy On this basis, we preliminarily Allegations. Even though the guide is a 2005 Allegations (Hynix’s 2002 Non-Consolidated determine the countervailable subsidy edition, the guide presents established Korean tax Financial Statements at 60; see also id. at from this program to be less than 0.005 principles, not a set of new principles or rules for Attachment 8 (Hynix’s 2003 Non-Consolidated percent ad valorem during the POR. 2005. Financial Statements at 45). The financial 5 Hynix’s financial statements show that the issue statements show that Hynix swapped debts totaling Therefore, consistent with our past price of the shares was 708 won per share; the 4.84 trillion won for equity through the 2002 and practice, we did not include this market price of Hynix’s shares on June 7, 2002, was 2003 stock issuances. The FSS press release program in our preliminary net 390 won per share. See Hynix’s 2002 Non- (Attachment 26 of Micron’s New Subsidy countervailing duty rate. See, e.g., Consolidated Financial Statements at page 60 (in Allegations) shows that companies swapped a total Micron’s New Subsidy Allegations at Attachment of 13.6 trillion won of debt for equity under the Coated Free Sheet Paper from the 7); see also Micron’s New Subsidy Allegations at CRPA. Thus, 4.84 trillion won / 13.6 trillion won People’s Republic of China: Final Attachment 9. = 36 percent. Affirmative Countervailing Duty

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Determination, 72 FR 60645 (October C. Import Duty Reduction Program for materials described in government 25, 2007), and accompanying Issues and Certain Factory Automation Items notices. Decision Memorandum at 15 (‘‘CFS’’); Article 95(1).4 of the Korean Customs Further, according to the GOK, any and Final Results of Countervailing Duty Act provides for import duty reductions Korean company is eligible for the ‘‘ ’’ Administrative Review: Low Enriched on imports of ‘‘machines, instruments Import Financing Program as long as Uranium from France, 70 FR 39998 and facilities (including the constituent the equipment or material appears (July 12, 2005), and accompanying machines and tools) and key parts under the 13 headings of eligible items, Issues and Decision Memorandum at designated by the Ordinance of the the company can satisfy the financial ‘‘ ‘‘Purchases at Prices that Constitute Ministry of Finance and Economy for a criteria laid out in KEXIM’s Credit ’’ ‘More than Adequate Remuneration,’ ’’ factory automatization applying Extension Regulation, and KEXIM’s (‘‘Uranium from France’’) (citing Notice machines, electronics or data processing Credit Extension Committee approves of Final Results of Countervailing Duty techniques.’’ the financing application. Regarding the Administrative Review and Rescission Hynix reported that it had received last item, the GOK stated that all of Certain Company-Specific Reviews: duty reductions under this program decisions to offer this financing are Certain Softwood Lumber Products during the POR. See Hynix’s February based on the application and financial From Canada, 69 FR 75917 (December 25, 2010 questionnaire response at status of the applicant company. 20, 2004), and accompanying Issues and 17–18 and Exhibit 13. Hynix carried balances into the POR Decision Memorandum at ‘‘Other In a prior administrative review, the on loans received from KEXIM under Programs Determined to Confer Department found that the above this program in 2006 and 2007. See Subsidies’’). program provided a financial Hynix’s February 25, 2010 supplemental questionnaire response at 18 and B. 21st Century Frontier R&D Program contribution in the form of revenue forgone and a benefit in the amount of Exhibit 10. In a prior administrative review, the The 21st Century Frontier R&D the duty savings. See Dynamic Random Department found that the above Program (‘‘21st Century Program’’) was Access Memory Semiconductors from program provided a financial established in 1999 with a structure and the Republic of Korea: Final Results of contribution pursuant to sections governing regulatory framework similar Countervailing Duty Administrative 771(5)(B)(i) and 771(5)(D)(i) of the Act, to those of the G–7/HAN Program, and Review, 73 FR 14218 (March 17, 2008), and also provided benefits equal to the for a similar purpose, i.e., to promote and the accompanying Issues and difference between what Hynix paid on greater competitiveness in science and Decision Memorandum at 6—7 and its loans and the amount it would have technology. The 21st Century Program Comment 6. The Department also found paid on comparable commercials loans provides long-term interest-free loans in the program to be de facto specific within the meaning of section the form of matching funds. Repayment under section 771(5A)(D)(iii)(III) of the 771(5)(E)(ii) of the Act. See Dynamic of program funds is made in the form of Act. Id. No interested party provided Random Access Memory ‘‘technology usance fees’’ upon new evidence that would lead us to Semiconductors from the Republic of completion of the project, pursuant to a reconsider our earlier finding. Korea: Final Results of Countervailing schedule established under a technology Therefore, we continue to find that Duty Administrative Review, 74 FR execution or implementation contract. these duty reductions confer a 60238, 60239 (November 20, 2009). The Hynix reported that it had loans from countervailable subsidy. the 21st Century Program outstanding To calculate the benefit, we divided Department also found the program to during the POR. See Hynix’s February the total duty savings Hynix received be de facto specific within the meaning 25, 2010 questionnaire response at during the POR by Hynix’s total sales of section 771(5A)(D)(iii)(I) of the Act. 16–17 and Exhibit 10. during the POR. On this basis, we Id. No interested party provided new In the investigation, we determined preliminarily find countervailable evidence that would lead us to that this program conferred a benefits of less than 0.005 percent ad reconsider our earlier finding. countervailable subsidy on Hynix. No valorem during the POR. Therefore, Therefore, we continue to find this interested party provided new evidence consistent with our past practice, we program to be countervailable. To calculate the benefit under this that would lead us to reconsider our did not include this program in our program, we used the benchmarks earlier finding. Therefore, we continue preliminary net countervailing duty described in the ‘‘Discount Rates and to find that these loans confer a rate. See CFS and Uranium from France. countervailable subsidy. Benchmarks for Loans’’ section above, as To calculate the benefit of these loans D. Import-Export Bank of Korea Import well as the methodology described in 19 during the POR, we compared the Financing CFR 351.505. We then divided the interest actually paid on the loans As outlined in Article 18, paragraph benefit during the POR by Hynix’s total during the POR to what Hynix would 1, subparagraph 4 of the Import-Export sales during the POR. On this basis, we have paid under the benchmark Bank of Korea (‘‘KEXIM’’) Act, the preliminarily determine that Hynix described in the ‘‘Discount Rates and ‘‘Import Financing Program’’ is provided received a countervailable subsidy of Benchmarks for Loans’’ section above. to Korean importers to facilitate their 0.10 percent ad valorem under this We then divided the benefit by Hynix’s purchase of essential materials, major program. total sales in the POR to calculate the resources, and operating equipment, the III. Programs Preliminarily Found To countervailable subsidy rate. On this stable and timely supply of which is Have Provided No Benefits basis, we preliminarily find essential to the stability of the general countervailable benefits of less than economy. The equipment and materials A. KEXIM Short-Term Export Financing 0.005 percent ad valorem during the eligible to be imported under the KEXIM provides short-term export POR. Therefore, consistent with our past program fall under 13 headings listed in financing to small-, medium- and large- practice, we did not include this Article 14 of the KEXIM Business sized companies (not including program in our preliminary net Manual. The listed items range from raw companies included in the largest five countervailing duty rate. See CFS and materials to factory automation conglomerates in the ROK, unless the Uranium from France. equipment and include products and company’s headquarters is located

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outside the Seoul Metropolitan area). (Article 24 of RSTA/Article 25 of Public Comment The loans are not tied to particular TERCL) Interested parties may submit written export transactions. However, a C. Tax Credit for Investment in arguments in case briefs within 30 days company, along with the financing Facilities for Special Purposes (Article of the date of publication of this notice. application, must provide its export 25 of RSTA) Rebuttal briefs, limited to issues raised performance periodically for review by D. Reserve for Overseas Market in case briefs, may be filed not later than KEXIM. Further, any loan agreement Development (formerly, Article 17 of five days after the date of filing the case may only cover an amount ranging from TERCL) briefs. Parties who submit briefs in this 50 to 90 percent of the company’s E. Reserve for Export Loss (formerly, proceeding should provide a summary export performance up to 30 billion Article 16 of TERCL) of the arguments not to exceed five won. pages and a table of statutes, Hynix carried a balance on a loan F. Tax Exemption for Foreign Technicians (Article 18 of RSTA) regulations, and cases cited. Copies of under this program during the POR and case briefs and rebuttal briefs must be provided documentation (e.g. loan G. Reduction of Tax Regarding the Movement of a Factory That Has Been served on interested parties in application, approval document, and accordance with 19 CFR 351.303(f). loan agreement), as well as data Operated for More Than Five Years (Article 71 of RSTA) Interested parties may request a regarding the loan amount and interest hearing within 30 days after the date of H. Tax Reductions or Exemption on paid during the POR. See Hynix’s publication of this notice. Unless Foreign Investments under Article 9 of February 25, 2010 questionnaire otherwise specified, the hearing, if the Foreign Investment Promotion Act response at Exhibits 10, 12, and 18. requested, will be held two days after (‘‘FIPA’’)/FIPA (Formerly Foreign Based on Hynix’s submitted interest the scheduled date for submission of Capital Inducement Law) payment information for this loan, we rebuttal briefs. preliminarily determine that the interest I. Duty Drawback on Non-Physically The Department will publish a notice Hynix paid was greater than the interest Incorporated Items and Excessive Loss of the final results of this administrative Hynix would have paid under the Rates review within 120 days from the benchmark interest rate. Thus, we J. Electricity Discounts Under the publication of these preliminary results. preliminarily determine that Hynix Requested Load Adjustment (‘‘RLA’’) We are issuing and publishing these received no benefit from these loans Program results in accordance with sections during the POR. K. Import Duty Reduction for Cutting 751(a)(1) and 777(i)(1) of the Act. Edge Products B. Export Insurance Dated: September 7, 2010. L. System IC 2010 Project Ronald K. Lorentzen, At pages 22–25 of its February 25, M. Operation G–7/HAN Program 2010, questionnaire response, Hynix Deputy Assistant Secretary for Import reported that it purchased short-term Preliminary Results of Review Administration. export insurance from the Korea Export [FR Doc. 2010–22889 Filed 9–13–10; 8:45 am] In accordance with 19 CFR BILLING CODE 3510–DS–P Insurance Corporation (‘‘KEIC’’) during 351.221(b)(4)(i), we calculated an the POR. On page 1 of its supplemental individual subsidy rate for Hynix, the questionnaire response dated June 3, producer/exporter covered by this DEPARTMENT OF COMMERCE 2010, Hynix stated that it received no administrative review. We preliminarily insurance payouts from the KEIC during determine that the total estimated net International Trade Administration the POR and otherwise made no claims countervailable subsidy rate for Hynix [A–580–816] on KEIC insurance. for the POR is 2.94 percent ad valorem. Under 19 CFR 351.520(a)(2), the If these preliminary results are Department will normally calculate the Certain Corrosion-Resistant Carbon adopted in our final results of this benefit from an export insurance Steel Flat Products From the Republic review, 15 days after publication of the program as the difference between the of Korea: Notice of Preliminary Results final results of this review the amount of premiums paid by the firm of the Sixteenth Antidumping Duty Department will instruct CBP to and the amount received by the firm Administrative Review liquidate shipments of DRAMS by under the insurance program. Because Hynix entered or withdrawn from AGENCY: Import Administration, Hynix stated that it did not receive any warehouse, for consumption from International Trade Administration, payouts from the KEIC during the POR, January 1, 2008, through August 10, Department of Commerce. we preliminarily determine that Hynix 2008, at 2.94 percent ad valorem of the SUMMARY: In response to timely received no benefit from this program entered value. requests, the Department of Commerce during the POR. On October 3, 2008, the Department (the Department) is conducting the IV. Programs Previously Found Not To published a Federal Register notice sixteenth administrative review of the Have Been Used or Provided No Benefits that, inter alia, revoked this order, antidumping order on corrosion- resistant carbon steel flat products We preliminarily determine that the effective August 11, 2008. See Dynamic (CORE) from the Republic of Korea following programs were not used Random Access Memory (Korea).1 This review covers eight during the POR: Semiconductors From the Republic of A. Reserve for Research and Human Korea: Final Results of Sunset Review manufacturers and/or exporters Resources Development (formerly and Revocation of Order, 73 FR 57594 (collectively, the respondents) of the Technological Development Reserve) (October 3, 2008). As a result, CBP is no subject merchandise: LG Chem., Ltd. (Article 9 of the Restriction of Special longer suspending liquidation for (LG Chem); Haewon MSC Co. Ltd. Taxation Act (‘‘RSTA’’)/formerly, Article entries of subject merchandise occurring (Haewon); Dongbu Steel Co., Ltd., after the revocation. Therefore, there is 8 of Tax Reduction and Exemption 1 no need to issue new cash deposit See Initiation of Antidumping and Control Act (‘‘TERCL’’)) Countervailing Duty Administrative Reviews and B. Tax Credit for Investment in instructions in the final results of this Request for Revocation in Part, 74 FR 48224, 48225 Facilities for Productivity Enhancement administrative review. (September 22, 2009) (Initiation Notice).

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(Dongbu); Hyundai HYSCO (HYSCO); review of each of the companies for February 12, 2010. As a result of this Pohang Iron & Steel Co., Ltd. (POSCO) which a review was requested. See tolling, the revised deadline for the and Pohang Coated Steel Co., Ltd. Initiation Notice, 74 FR at 48225. preliminary results of this review (POCOS) (collectively, POSCO); On December 7, 2008, the Department became May 10, 2010. Dongkuk Industries Co., Ltd. (Dongkuk); selected Dongbu, POSCO, HYSCO and On May 10, 2010, the Department LG Hausys, Ltd. (Hausys); and Union Union as mandatory respondents in this published a notice extending the time Steel Manufacturing Co., Ltd. (Union). review. See Memorandum from Dennis period for issuing the preliminary The period of review (POR) is August 1, McClure, International Trade results of the sixteenth administrative 2008, through July 31, 2009. We Compliance Analyst, through James review to September 7, 2010.5 preliminarily determine that Union and Terpstra, Program Manager, to Melissa HYSCO Dongbu made sales of subject Skinner, Director, Office 3, entitled merchandise at less than normal value ‘‘2008–2009 Antidumping Duty On January 27, 2010, HYSCO (NV). We preliminarily determine that Administrative Review of Corrosion- submitted its section A response to the HYSCO and POSCO have not made Resistant Carbon Steel Flat Products Department’s initial questionnaire. On sales below NV. from the Republic of Korea: Selection of February 12, 2010, HYSCO submitted its In addition, based on the preliminary Respondents for Individual Review,’’ sections B through D response to the results for the respondents selected for dated December 7, 2009. The Department’s initial questionnaire. individual review, we have Department indicated that it would HYSCO submitted its response to the preliminarily determined a margin for calculate a weighted-average of the Department’s supplemental those companies that were not selected mandatory respondents’ margins to questionnaires for sections A through C for individual review. If these apply to those companies not selected on June 23, 2010, and August 11, 2010. preliminary results are adopted in the for individual examination. HYSCO submitted its response to the final results of this administrative During the most recently completed Department’s supplemental review, we will instruct U.S. Customs segments of the proceeding in which questionnaires for section D on June 23, and Border Protection (CBP) to assess HYSCO, Dongbu, POSCO and Union 2010, June 25, 2010, August 4, 2010, antidumping duties on all appropriate participated,3 the Department August 11, 2010, August 18, 2010, and entries of subject merchandise during disregarded sales below the cost of August 23, 2010. the POR. production (COP) for each of these Union DATES: Effective Date: September 14, companies. Therefore, pursuant to On January 21, 2010, Union submitted 2010. section 773(b)(2)(A)(ii) of the Tariff Act its section A response to the initial of 1930, as amended (the Act), we had FOR FURTHER INFORMATION CONTACT: questionnaire. On February 4, 2010, Jolanta Lawska (HYSCO), Victoria Cho reasonable grounds to believe or suspect Union submitted its response to sections (POSCO), Dennis McClure (Union) or that sales by these companies of the B and C and D of the Department’s Christopher Hargett (Dongbu), AD/CVD foreign like product under consideration questionnaire. On May 28, 2010, and Operations, Office 3, Import for the determination of NV in this July 15, 2010, Union submitted its Administration, International Trade review were made at prices below the responses to the Department’s Administration, U.S. Department of COP. We instructed HYSCO, Dongbu, supplemental questionnaires for Commerce, 14th Street and Constitution POSCO and Union to respond to sections A through C. On June 7, 2010, Avenue, NW., Washington, DC 20230; sections A through E of the initial 4 Union submitted its response to the telephone: (202) 482–8362, (202) 482– questionnaire, which we issued on Department’s supplemental 5075, (202) 482–5973, and (202) 482– December 7, 2009. questionnaire for section D regarding As explained in the memorandum 4161, respectively. the purchase of major inputs from from the Deputy Assistant Secretary for SUPPLEMENTARY INFORMATION: POSCO. On June 11, 2010, Union Import Administration, the Department submitted its response to the Background has exercised its discretion to toll Department’s supplemental deadlines for the duration of the closure On August 19, 1993, the Department questionnaire for sections A and D. On of the Federal Government from published the antidumping order on July 20, 2010, Union submitted its February 5, through February 12, 2010. CORE from Korea. See Antidumping response to an additional supplemental Thus, all deadlines in this segment of Duty Orders on Certain Cold-Rolled questionnaire for section D. On August the proceeding have been extended by Carbon Steel Flat Products and Certain 18, 2010, Union submitted a response to seven days. See Memorandum to the Corrosion-Resistant Carbon Steel Flat an additional supplemental Record from Ronald Lorentzen, DAS for Products from Korea, 58 FR 44159 questionnaire for section D. (August 19, 1993) (Orders on Certain Import Administration, regarding Steel from Korea). On August 3, 2009, ‘‘Tolling of Administrative Deadlines As POSCO we published in the Federal Register a Result of the Government Closure On January 20, 2010, POSCO the Antidumping or Countervailing Duty During the Recent Snowstorms,’’ dated submitted its sections A through D Order, Finding, or Suspended response to the Department’s initial Investigation; Opportunity to Request 3 See Certain Corrosion-Resistant Carbon Steel questionnaire. On June 14, 2010, Administrative Review, 74 FR 38397 Flat Products from the Republic of Korea: Notice of Final Results of the Fifteenth Administrative POSCO submitted its response to the (August 3, 2009). On August 31, 2009, Review, 75 FR 13490 (March 22, 2010) (CORE 15 Department’s first supplemental respondents and petitioners 2 requested Final Results); Certain Corrosion-Resistant Carbon questionnaire for sections A through D. a review of Dongbu, HYSCO, POSCO, Steel Flat Products from the Republic of Korea: On August 10, 2010, POSCO submitted Union, Dongkuk, Haewon, Hausys, and Notice of Final Results of the Fourteenth Administrative Review and Partial Rescission, 74 its response to the Department’s second LG Chem. The Department initiated a FR 11082 (March 16, 2009) (CORE 14 Final Results). 4 Section A: Organization, Accounting Practices, 5 See Corrosion-Resistant Carbon Steel Flat 2 Petitioners are the United States Steel Markets and Merchandise; Section B: Comparison Products From the Republic of Korea: Extension of Corporation (U.S. Steel), Nucor Corporation Market Sales; Section C: Sales to the United States; Time Limits for the Preliminary Results of (Nucor), and Mittal Steel USA ISG, Inc. (Mittal Steel Section D: Cost of Production and Constructed Antidumping Duty Administrative Review, 75 FR USA). Value; Section E: Further Manufacturing. 25841 (May 10, 2010).

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supplemental questionnaire for section been beveled or rounded at the edges and Dongbu, because we are using D. On August 25, 2010, POSCO (i.e., products which have been ‘‘worked quarterly costs, we have not made price- submitted a voluntary correction to after rolling’’). Excluded from this order to-price comparisons outside of a exhibit 25 of its June 14, 2010, first are flat-rolled steel products either quarter to lessen the potential distortion supplemental section D response. plated or coated with tin, lead, to sales prices which result from chromium, chromium oxides, both tin 6 Dongbu significantly changing costs. and lead (‘‘terne plate’’), or both On January 13, 2010, and February 3, chromium and chromium oxides (‘‘tin- Export Price/Constructed Export Price 2010, Dongbu submitted its section A free steel’’), whether or not painted, For the price to the United States, we and sections B through D responses to varnished or coated with plastics or used, as appropriate, EP or CEP, in the Department’s initial questionnaire. other nonmetallic substances in accordance with sections 772(a) and (b) Dongbu submitted its response to the addition to the metallic coating. Also of the Act. We calculated EP when the Department’s supplemental excluded from this order are clad merchandise was sold by the producer questionnaires for sections A through D products in straight lengths of 0.1875 or exporter outside of the United States on May 18, 2010, and July 16, 2009, and inch or more in composite thickness directly to the first unaffiliated August 3, 2010. Dongbu submitted a and of a width which exceeds 150 purchaser in the United States prior to reconciliation of its home market and millimeters and measures at least twice importation and when CEP was not U.S. sales databases on August 17, 2010. the thickness. Also excluded from this otherwise warranted based on the facts Period of Review order are certain clad stainless flat- on the record. We calculated CEP for rolled products, which are three-layered those sales where a person in the United The POR covered by this review is corrosion-resistant carbon steel flat- States, affiliated with the foreign August 1, 2008, through July 31, 2009. rolled products less than 4.75 exporter or acting for the account of the Scope of the Order millimeters in composite thickness that exporter, made the sale to the first consist of a carbon steel flat-rolled This order covers flat-rolled carbon unaffiliated purchaser in the United product clad on both sides with steel products, of rectangular shape, States of the subject merchandise. We stainless steel in a 20%-60%-20% ratio. based EP and CEP on the packed prices either clad, plated, or coated with These HTSUS item numbers are corrosion-resistant metals such as zinc, and the applicable delivery terms to the provided for convenience and customs aluminum, or zinc-, aluminum-, nickel- first unaffiliated customer in, or for purposes. The written descriptions or iron-based alloys, whether or not exportation to, the United States. remain dispositive. corrugated or painted, varnished or In accordance with section 772(a) of coated with plastics or other Product Comparisons the Act, we calculated EP for a number of Union’s U.S. sales because these sales nonmetallic substances in addition to In accordance with section 771(16) of the metallic coating, in coils (whether or were made before the date of the Act, we considered all CORE importation and were sales directly to not in successively superimposed products produced by the respondents, layers) and of a width of 0.5 inch or unaffiliated customers in the United covered by the scope of the order, and States, and because CEP methodology greater, or in straight lengths which, if sold in the home market during the POR of a thickness less than 4.75 millimeters, was not otherwise indicated. We made to be foreign like products for the deductions for movement expenses in are of a width of 0.5 inch or greater and purpose of determining appropriate which measures at least 10 times the accordance with section 772(c)(2)(A) of product comparisons to CORE sold in the Act, which included, where thickness or if of a thickness of 4.75 the United States. millimeters or more are of a width Where there were no sales in the 6 See Memorandum from Jolanta Lawska through which exceeds 150 millimeters and ordinary course of trade of identical James Terpstra, Program Manager Office 3, to the measures at least twice the thickness, as merchandise in the home market to File, entitled ‘‘Preliminary Results in the 16th currently classifiable in the Harmonized compare to U.S. sales, we compared Administrative Review on Corrosion-Resistant Tariff Schedule of the United States Carbon Steel Flat Products from Korea: Calculation U.S. sales to the next most similar Memorandum for Hyundai HYSCO,’’ dated (HTSUS) under item numbers foreign like product on the basis of the September 7, 2010 (HYSCO Calc Memo); 7210.30.0030, 7210.30.0060, characteristics listed in Appendix V of Memorandum from Victoria Cho through James 7210.41.0000, 7210.49.0030, the Department’s antidumping Terpstra, Program Manager Office 3, to the File, 7210.49.0090, 7210.49.0091, entitled ‘‘Preliminary Results in the 16th questionnaire. In making the product Administrative Review on Corrosion-Resistant 7210.49.0095, 7210.61.0000, comparisons, we matched foreign like Carbon Steel Flat Products from Korea: Calculation 7210.69.0000, 7210.70.6030, products based on the Appendix V Memorandum for Calculation Memorandum for 7210.70.6060, 7210.70.6090, physical characteristics reported by Pohang Iron & Steel Company, Ltd. (POSCO) and 7210.90.1000, 7210.90.6000, each respondent. Pohang Coated Steel Co., Ltd. (POCOS) 7210.90.9000, 7212.20.0000, (collectively, the POSCO Group),’’ dated September Normal Value Comparisons 7, 2010 (POSCO Calc Memo); Memorandum from 7212.30.1030, 7212.30.1090, Dennis McClure through James Terpstra, Program 7212.30.3000, 7212.30.5000, To determine whether sales of CORE Manager Office 3, to the File, entitled ‘‘Preliminary 7212.40.1000, 7212.40.5000, by the respondents to the United States Results in the 16th Administrative Review on Corrosion-Resistant Carbon Steel Flat Products from 7212.50.0000, 7212.60.0000, were made at less than NV, we Korea: Calculation Memorandum for Union Steel 7215.90.1000, 7215.90.3000, compared the Export Price (EP) or Manufacturing Inc.,’’ dated September 7, 2010 7215.90.5000, 7217.20.1500, Constructed Export Price (CEP) to the (Union Calc Memo); and Memorandum from 7217.30.1530, 7217.30.1560, NV, as described in the ‘‘Export Price/ Christopher Hargett through James Terpstra, Constructed Export Price’’ and ‘‘Normal Program Manager Office 3, to the File, entitled 7217.90.1000, 7217.90.5030, ‘‘Preliminary Results in the 16th Administrative 7217.90.5060, and 7217.90.5090. Value’’ sections of this notice. In Review on Corrosion-Resistant Carbon Steel Flat Included in the order are flat-rolled accordance with section 777A(d)(2) of Products from Korea: Calculation Memorandum for products of non-rectangular cross- the Act, we calculated monthly Dongbu Steel,’’ dated September 7, 2010 (Dongbu weighted-average prices for NV and Calc Memo) (collectively ‘‘Calculation Memos for section where such cross-section is the 16th Review’’), the public versions of which are achieved subsequent to the rolling compared these to individual U.S. on file in the Central Record Unit, Room 7046, of process including products which have transactions. Regarding HYSCO, Union the main Department building.

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appropriate, foreign inland freight to the quantity of sales to provide a reasonable quantity of the foreign like product sold port, foreign brokerage, international basis of comparison and the use of such in the exporting country was sufficient freight, marine insurance, U.S. inland sales is appropriate: (1) The price of to permit a proper comparison with the freight from the port to warehouse, U.S. identical subject merchandise sold by sales of the subject merchandise to the warehouse expenses, U.S. inland freight the exporter or producer to an United States, pursuant to section from the warehouse to the unaffiliated unaffiliated person; or (2) the price of 773(a)(1) of the Act. Therefore, in customer, U.S. brokerage and handling other subject merchandise sold by the accordance with section 773(a)(1)(B)(i) expenses, and U.S. customs duty. exporter or producer to an unaffiliated of the Act, we based NV on the price at In accordance with section 772(b) of person. which the foreign like product was first the Act, we calculated CEP where the The record evidence shows that the sold for consumption in the home record established that sales made by value added by the affiliated party to the market, in the usual commercial HYSCO, POSCO, Dongbu, and Union subject merchandise after importation in quantities and in the ordinary course of were made in the United States after the United States was significantly trade. We increased NV by U.S. packing importation. HYSCO’s, POSCO’s, greater than the 65 percent threshold we costs in accordance with section Dongbu’s and Union’s respective use in determining whether the value 773(a)(6)(A) of the Act. affiliates in the United States (1) took added in the United States by an Where appropriate, we deducted title to the subject merchandise and (2) affiliated party substantially exceeds the inland freight from the plant to invoiced and received payment from the value of the subject merchandise. See 19 distribution warehouse, warehouse unaffiliated U.S. customers for their CFR 351.402(c)(2). We then considered expense, inland freight from the plant/ sales of the subject merchandise to those whether there were sales of identical warehouse to customer, and packing, U.S. customers. Thus, where subject merchandise or other subject pursuant to section 773(a)(6)(B) of the appropriate, the Department determined merchandise sold in sufficient Act. Additionally, we made adjustments that these U.S. sales should be classified quantities by the exporter or producer to to NV, where appropriate, for credit and as CEP transactions under section 772(b) an unaffiliated person that could warranty expenses, in accordance with of the Act. Where appropriate, we made provide a reasonable basis of section 773(a)(6)(C)(iii) of the Act. deductions from the starting price for comparison. In addition to the sales to Where appropriate, we added interest foreign inland freight to the port, foreign HAC that were further manufactured, revenue and applied billing adjustments brokerage, international freight, marine HYSCO also had CEP sales of similar, to the gross unit price. insurance, U.S. inland freight from the but not identical, subject merchandise We also made adjustments for Union, port to warehouse, U.S. warehouse to unaffiliated customers in the United in accordance with 19 CFR 351.410(e), expenses, U.S. inland freight from the States in back-to-back transactions for indirect selling expenses incurred in warehouse to the unaffiliated customer, through another HYSCO affiliate in the the home market or the United States U.S. brokerage and handling expenses, United States, Hyundai HYSCO USA where commissions were granted on U.S. customs duty, credit expenses, (HHU). sales in one market but not in the other. warranty expenses, commissions, The appropriate methodology for Specifically, where commissions are inventory carrying costs incurred in the determining the CEP for sales whose incurred in one market, but not in the United States, and other indirect selling value has been substantially increased other, we will limit the amount of such expenses in the United States associated through U.S. further manufacturing allowance to the amount of either the with economic activity in the United generally must be made on a case-by- selling expenses incurred in the one States. See sections 772(c)(2)(A) and case basis. In this instance, we find that market or the commissions allowed in 772(d)(1) of the Act. Pursuant to section there is a reasonable quantity of sales of the other market, whichever is less. See 772(d)(3) of the Act, we made an subject merchandise to an unaffiliated 19 CFR 351.401(e). adjustment for CEP profit. Where person for comparison purposes. See For purposes of calculating NV, appropriate, we added interest revenue HYSCO Calc Memo. Furthermore, there section 771(16) of the Act defines to the gross unit price. is no other reasonable methodology for ‘‘foreign like product’’ as merchandise determining CEP for HAC’s CEP sales. which is either (1) identical or (2) HYSCO’s Entries of Subject Therefore, we relied on HYSCO’s other similar to the merchandise sold in the Merchandise That Were Further sales of similar merchandise to United States. When no identical Manufactured and Sold as Non-Subject unaffiliated parties in the United States products are sold in the home market, Merchandise in the United States as the basis for calculating CEP for the products which are most similar to In its section A questionnaire HYSCO’s sales through HAC, which is the product sold in the United States are response, HYSCO requested that the consistent with the four previous identified. For the non-identical or most Department excuse it from reporting administrative reviews of CORE from similar products which are identified information for certain POR sales of Korea.7 based on the Department’s product subject merchandise imported by its matching criteria, an adjustment is Normal Value wholly owned U.S. subsidiary, HYSCO made to the NV for differences in cost America Company (HAC), that were Based on a comparison of the attributable to differences in the actual further manufactured after importation aggregate quantity of home market and physical differences between the and sold as non-subject merchandise in U.S. sales, we determined that the products sold in the United States and the United States, claiming that the home market. See 19 CFR 351.411 determining CEP for sales through HAC 7 See, e.g., Certain Corrosion-Resistant Carbon and section 773(a)(6)(C)(ii) of the Act. would be unreasonably burdensome. Steel Flat Products from the Republic of Korea: Notice of Preliminary Results of the Antidumping Cost of Production Section 772(e) of the Act provides that Duty Administrative Review, 74 FR 46110, 46112 when the value added in the United (September 8, 2009) (unchanged in CORE 15 Final As stated above, in the most recently States by an affiliated party is likely to Results); Certain Corrosion-Resistant Carbon Steel completed segments of the proceeding exceed substantially the value of the Flat Products From the Republic of Korea: Notice in which HYSCO, POSCO, Dongbu and of Preliminary Results of the Antidumping Duty subject merchandise, the Department Administrative Review, 73 FR 52267, 52270 Union participated, the Department shall use one of the following prices to (September 9, 2008) (unchanged in CORE 14 Final found and disregarded sales that failed determine CEP if there is a sufficient Results). the cost test for each of these

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companies. Therefore, for this review, are significant enough to warrant a five CONNUMs with the highest volume the Department has reasonable grounds departure from our standard annual-cost of sales in each of the comparison to believe or suspect that sales of the approach. See SSPC from Belgium at market and the United States market. foreign like products under Comment 4. In the instant case, record Our comparison reveals that sale prices consideration for the determination of evidence shows that Union, Dongbu, and costs for each of the sample NV may have been made at prices below and HYSCO experienced significant CONNUMs generally trended in the the COP as provided by section changes (i.e., changes that exceeded 25 same direction and indicated that there 773(b)(2)(A)(ii) of the Act. Pursuant to percent) between the high and low is linkage between changing costs and section 773(b)(1) of the Act, the quarterly COM during the POR for the sale prices during the POR. The Department conducted a COP selected products (i.e., CONNUMs) with inventory records for HYSCO, Union investigation of sales in the home the highest sales volumes. This change and Dongbu demonstrate that the raw market by HYSCO, POSCO, Dongbu and in COM is primarily attributable to the material and finished goods inventory Union. price volatility for substrate inputs used are relatively low, indicating a minimal in the manufacture of CORE. Substrate time lag between material purchase, A. Cost Reporting Period is the major input consumed in the production and sale dates. See Union, The Department’s normal practice is production of CORE. We found that HYSCO and Dongbu Cost Calculation to calculate an annual weighted-average prices for substrate changed Memos. After reviewing this cost for the POR. See, e.g., Certain Pasta significantly throughout the POR and, as information and determining that there From Italy: Final Results of a result, directly affected the cost of the is a trend of sale prices and costs for the Antidumping Duty Administrative material inputs consumed by Union, majority of the POR, we preliminarily Review, 65 FR 77852 (December 13, Dongbu, and HYSCO.8 determine that there is linkage between 2000), and accompanying Issues and HYSCO, Union and Doungbu’s changing 2. Linkage Between Cost and Sale Price Decision Memorandum at Comment 18, costs and sales prices during the POR. Information and Notice of Final Results of See, e.g., SSSS from Mexico at Comment Antidumping Duty Administrative Consistent with past precedent, 6 and SSPC from Belgium at Comment Review: Carbon and Certain Alloy Steel because we found the changes in costs 4. Wire Rod from Canada, 71 FR 3822 to be significant, we evaluated whether Because we have found significant (January 24, 2006), and accompanying there is evidence of a linkage between cost changes in COM as well as Issues and Decision Memorandum at the cost changes and the sales prices reasonable linkage between costs and Comment 5 (explaining the during the POR. See, e.g., SSSS from sales prices, we have preliminarily Department’s practice of computing a Mexico at Comment 6, and SSPC from determined that the use of quarterly cost single weighted-average cost for the Belgium at Comment 4. The leads to more appropriate comparisons entire period). However, the Department Department’s definition of ‘‘linkage’’ in our antidumping duty calculation for recognizes that possible distortions may does not require direct traceability HYSCO, Union and Dongbu. result if we use our normal annual- between specific sales and their specific average cost method during a period of production costs, but rather relies on B. Calculation of Cost of Production significant cost changes. In determining whether there are elements that would Before making any comparisons to whether to deviate from our normal indicate a reasonable correlation NV, we conducted a quarterly COP methodology of calculating an annual between the underlying costs and the analysis of HYSCO, Union and weighted-average cost, the Department final sales prices levied by the company. Dongbu’s sales pursuant to section evaluates the case-specific record See SSPC from Belgium at Comment 4. 773(b)(3) of the Act to determine evidence using two primary factors: (1) These correlative elements may be whether HYSCO, Union and Dongbu’s The change in the cost of manufacturing measured and defined in a number of comparison market sales were made at (COM) recognized by the respondent ways depending on the associated prices below the COP. For these during the POR must be deemed industry and the overall production and preliminary results, the Department significant; (2) the record evidence must sales processes. To determine whether a used the quarterly cost database indicate that sale prices during the reasonable correlation existed between submitted on August 18, 2010, for shorter averaging periods could be the sales prices and their underlying HYSCO, the quarterly cost database reasonably linked with the COP or costs during the POR for each submitted on August 18, 2010, for constructed value (CV) during the same respondent, we compared weighted- Union, and the quarterly COP database shorter averaging periods. See Stainless average quarterly prices to the submitted on August 3, 2010, for Steel Sheet and Strip in Coils From corresponding quarterly COM for the Dongbu. Mexico: Final Results of Antidumping For POSCO, we conducted an annual Duty Administrative Review, 75 FR 6627 8 See Memorandum from Kristen Case to Neal M. COP analysis pursuant to section (February 10, 2010) (SSSS from Mexico), Halper, Director of Office of Accounting, entitled 773(b)(1)(A) and (B) of the Act to ‘‘Cost of Production and Constructed Value and accompanying Issues and Decision Calculation Adjustments for the Preliminary determine whether POSCO’s Memorandum at Comment 6 and Results—Union Steel Co., Ltd.,’’, dated September 7, comparison market sales were made at Stainless Steel Plate in Coils From 2010 (‘‘Union Cost Calculation Memo’’); prices below the COP. We calculated the Memorandum from Laurens Van Houten to Neal M. COP based on the sum of the cost of Belgium: Final Results of Antidumping Halper, Director of Office of Accounting, entitled Duty Administrative Review, 73 FR ‘‘Cost of Production and Constructed Value materials and fabrication for the foreign 75398 (December 11, 2008) (SSPC from Calculation Adjustments for the Preliminary like product, plus amounts for SG&A Belgium), and accompanying Issues and Results—Dongbu Steel,’’ dated September 7, 2010 expenses and packing, in accordance (‘‘Dongbu Cost Calculation Memo’’); and Decision Memorandum at Comment 4. Memorandum from Ji Young Oh to Neal M. Halper, with section 773(b)(3) of the Act. Director of Office of Accounting, entitled ‘‘Cost of Except as noted below, the 1. Significance of Cost Changes Production and Constructed Value Calculation Department relied on the COP data In prior cases, we established 25 Adjustments for the Preliminary Results—Hyundai submitted by HYSCO, POSCO, Union percent as the threshold (between the HYSCO’’ (HYSCO Cost Calculation Memo), dated and Dongbu and their supplemental September 7, 2010, the public versions of which are high- and low-quarter COM) for on file in the Central Record Unit, Room 7046, of section D questionnaire responses for determining that the changes in COM the main Department building. the COP calculation. Union provided

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information in its questionnaire dated May 19, 2010, and July 21, 2010, quantities.’’ Where 20 percent or more of responses showing that it purchased respectively. However, HYSCO’s the respondent’s home market sales of a substrate from affiliated parties. We responses to date have not provided an given model were at prices less than the consider substrate to be a major input adequate explanation of how negative COP, we disregarded the below-cost and therefore have applied the major- POR production costs could be incurred sales because: (1) They were made input rule to value such purchases. to produce products. See HYSCO’s within an extended period of time in Accordingly, pursuant to section section D supplemental questionnaire ‘‘substantial quantities,’’ in accordance 773(f)(3) of the Act and 19 CFR responses, dated June 23, 2010, and with sections 773(b)(2)(B) and (C) of the 351.407(b), we adjusted Union’s August 4, 2010, respectively. Act; and (2) based on our comparison of substrate costs. Additionally, for the Accordingly, the Department prices to the indexed POR or POR, as purposes of calculating Union’s general determines that it lacks the information appropriate, weighted-average COPs, and administrative (G&A) expense ratio, necessary to calculate accurate they were at prices which would not we excluded an item of non-operating production costs for certain CONNUMs permit the recovery of all costs within income. See Union Cost Calculation in these preliminary results. Therefore, a reasonable period of time, in Memo at 3. we determine that application of partial accordance with section 773(b)(2)(D) of For POSCO we excluded the gains facts available is warranted pursuant to the Act. related to the disposition and valuation sections 776(a)(1) and (2)(A) of the Act of trading securities from the calculation and have used the weighted-average Therefore, for HYSCO, POSCO, Union of the G&A expense ratio because these value for each of those cost fields. See and Dongbu, we disregarded below-cost gains are related to the company’s HYSCO Cost Calculation Memo. The sales of a given product of 20 percent or investment activities. See Memorandum Department intends to seek further more and used the remaining sales as from Sheikh M. Hannan, Senior explanation from HYSCO for the the basis for determining NV, in Accountant to Neal M. Halper, Director, negative values in its cost file and will accordance with section 773(b)(1) of the Office of Accounting, entitled ‘‘Cost of analyze any new data in the final Act. See HYSCO, POSCO, Union and Production and Constructed Value results. Dongbu Cost Calculation Memos. Calculation Adjustments for the Furthermore, HYSCO did not provide Calculation of NV Based on ’’ hot-rolled coil cost for CONNUMs sold, Preliminary Results—POSCO, dated Comparison Market Prices September 7, 2010 (‘‘POSCO Cost but not produced, during the POR. For Calculation Memo’’). CONNUMs sold but not produced For those comparison products for HYSCO provided information in its during the POR, we selected as partial which there were sales at prices above questionnaire responses showing that it facts available pursuant to sections the COP for HYSCO, POSCO, Union and purchased substrate from affiliated 776(a)(1) and (2)(A) of the Act the next Dongbu, we based NV on home market parties. We consider substrate to be a similar CONNUM, in accordance with prices. In these preliminary results, we major input and therefore have applied the product characteristics as defined in were able to match all U.S. sales to the major-input rule to value such the Department’s questionnaire, to use contemporaneous sales, made in the purchases. Accordingly, pursuant to as the surrogate to compute the costs for ordinary course of trade, of either an section 773(f)(3) of the Act and 19 CFR these CONNUMs. See HYSCO Cost identical or a similar foreign like 351.407(b), we adjusted HYSCO’s Calculation Memo. product, based on the matching substrate costs. Additionally, we characteristics identified in Appendix V adjusted the cost of goods sold C. Test of Comparison Market Sales Prices of the original questionnaire. We denominator used in the G&A expense calculated NV based on free on board As required under section 773(b)(2) of ratio and financial expense ratios to (FOB) mill or delivered prices to the Act, we compared the quarterly or reflect the major input adjustment. See unaffiliated customers, or prices to POR, as appropriate, weighted-average HYSCO Cost Calculation Memo. affiliated customers which were COP to the per-unit price of the determined to be at arm’s length (see Application of Facts Available comparison market sales of the foreign discussion below regarding these arm’s- Section 776(a) of the Act provides that like product to determine whether these length sales). We made deductions, the Department shall apply ‘‘facts sales had been made at prices below the where appropriate, from the starting otherwise available’’ if (1) necessary COP within an extended period of time price for billing adjustments, discounts, information is not on the record, or (2) in substantial quantities, and whether rebates, and inland freight. an interested party or any other person such prices were sufficient to permit the Additionally, we added interest (A) Withholds information that has been recovery of all costs within a reasonable revenue. In accordance with section requested, (B) fails to provide period of time. We determined the net 773(a)(6) of the Act, we deducted home information within the deadlines comparison market prices for the below market packing costs and added U.S. established, or in the form and manner cost test by subtracting from the gross packing costs. See Calculation Memos requested by the Department, subject to unit price any applicable movement for the 16th Review. subsections (c)(1) and (e) of section 782 charges, discounts, rebates, direct and of the Act, (C) significantly impedes a indirect selling expenses (also In accordance with section proceeding, or (D) provides information subtracted from the COP), and packing 773(a)(6)(C)(iii) of the Act, we adjusted that cannot be verified as provided by expenses. for differences in the circumstances of section 782(i) of the Act. sale. These circumstances included In the current review, multiple D. Results of the COP Test differences in imputed credit expenses CONNUMs in HYSCO’s submitted cost Pursuant to section 773(b)(2)(C)(i) of and other direct selling expenses, such file contained negative values for certain the Act, where less than 20 percent of as the expense related to bank charges cost fields. The Department requested sales of a given product were at prices and factoring. Id. We also made on two different occasions that HYSCO less than the COP, we did not disregard adjustments, where appropriate, for provide an explanation for these any below-cost sales of that product physical differences in the merchandise negative values. See the Department’s because we determined that the below- in accordance with section Section D supplemental questionnaire, cost sales were not made in ‘‘substantial 773(a)(6)(C)(ii) of the Act.

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Arm’s-Length Sales length) customers. If the comparison Public Comment Dongbu, Union, HYSCO and POSCO market sales are at a different LOT and The Department will disclose also reported that they made sales in the the differences affect price calculations performed within five days home market to affiliated parties. The comparability, as manifested in a of the date of publication of this notice Department calculates NV based on a pattern of consistent price differences to the parties to this proceeding in sale to an affiliated party only if it is between sales at different LOTs in the accordance with 19 CFR 351.224(b). satisfied that the price to the affiliated country in which NV is determined, we Interested parties may submit case briefs party is comparable to the price at will make an LOT adjustment under no later than 30 days after the date of which sales are made to parties not section 773(a)(7)(A) of the Act. For CEP publication of these preliminary results affiliated with the producer or exporter, sales, if the NV LOT is at a more of review. See 19 CFR 351.309(c)(ii). i.e., sales at arm’s length. See 19 CFR advanced stage of distribution than the Rebuttal briefs are limited to issues 351.403(c). CEP LOT and the data available do not raised in the case briefs and may be To test whether these sales were made provide an appropriate basis to filed no later than five days after the at arm’s length, we compared the determine an LOT adjustment, we will time limit for filing the case briefs. See reported home market prices of sales to grant a CEP offset, as provided in 19 CFR 351.309(d). Parties submitting affiliated and unaffiliated customers section 773(a)(7)(B) of the Act. See arguments in this proceeding are with applied billing adjustments, Notice of Final Determination of Sales requested to submit with the argument: including interest revenue and net of all at Less Than Fair Value: Certain Cut-to- (1) A statement of the issue, (2) a brief movement charges, direct selling Length Carbon Steel Plate from South summary of the argument, and (3) a expenses, discounts, rebates, and Africa, 62 FR 61731, 61732–33 table of authorities, in accordance with packing. In accordance with the (November 19, 1997). 19 CFR 351.309(d)(2). Further, parties Department’s current practice, if the We did not make an LOT adjustment submitting case and/or rebuttal briefs prices charged to an affiliated party under 19 CFR 351.412(e) because, there are requested to provide the Department were, on average, between 98 and 102 was only one home market LOT for each with an additional electronic copy of percent of the prices charged to respondent and we were unable to the public version of any such unaffiliated parties for merchandise identify a pattern of consistent price comments on a computer diskette. Case identical or most similar to that sold to differences attributable to differences in and rebuttal briefs must be served on the affiliated party, we considered the LOTs. See 19 CFR 351.412(d). Under interested parties in accordance with 19 sales to be at arm’s-length prices. See section 773(a)(7)(B) of the Act and 19 CFR 351.303(f). Notice of Preliminary Results and CFR 351.412(f), we are preliminarily An interested party may request a Partial Rescission of Antidumping Duty granting a CEP offset for HYSCO, hearing within 30 days of publication of Administrative: Ninth Administrative POSCO, Dongbu, and Union because the these preliminary results. See 19 CFR Review of the Antidumping Duty Order NV sales for each company are at a more 351.310(c). Any hearing, if requested, on Certain Pasta from Italy, 71 FR advanced LOT than the LOT for the U.S. ordinarily will be held two days after 45017, 45020 (August 8, 2006) CEP sales. the due date of the rebuttal briefs in accordance with 19 CFR 351.310(d)(1). (unchanged in Notice of Final Results of For a detailed description of our LOT the Ninth Administrative Review of the The Department will issue the final methodology and a summary of results of this administrative review, Antidumping Duty Order on Certain company-specific LOT findings for Pasta from Italy, 72 FR 7011 (February which will include the results of its these preliminary results, see analysis of issues raised in any such 14, 2007)); 19 CFR 351.403(c). Calculation Memos for the 16th Review. Conversely, where we found that the comments, or at a hearing, if requested, sales to an affiliated party did not pass Currency Conversion within 120 days of publication of these the arm’s-length test, then all sales to preliminary results, unless extended. that affiliated party have been excluded For purposes of these preliminary See section 751(a)(3)(A) of the Act and from the NV calculation. See results, we made currency conversions 19 CFR 351.213(h). in accordance with section 773A(a) of Antidumping Proceedings: Affiliated Assessment Rate Party Sales in the Ordinary Course of the Act, based on the official exchange Upon completion of the final results Trade, 67 FR 69186, 69187 (November rates published by the Federal Reserve of this administrative review, the 15, 2002); see also Calculation Memos Bank. Department shall determine, and CBP for the 16th Review. Preliminary Results of the Review shall assess, antidumping duties on all Level of Trade As a result of this review, we appropriate entries. Pursuant to 19 CFR In accordance with section preliminarily find that the following 351.212(b)(1), the Department will 773(a)(1)(B) of the Act, we determined weighted-average dumping margins calculate importer-specific assessment NV based on sales in the comparison exist: rates for each respondent based on the market at the same level of trade (LOT) ratio of the total amount of antidumping duties calculated for the examined sales as the EP or CEP sales, to the extent Manufacturer/exporter Percent possible. When there were no sales at margin to the total entered value of those sales. the same LOT, we compared U.S. sales Where the respondent did not report the to comparison market sales at a different HYSCO ...... *.22 entered value for U.S. sales, we have LOT. POSCO ...... *.04 calculated importer-specific assessment Pursuant to 19 CFR 351.412, to Union ...... 2.27 rates for the merchandise in question by Dongbu ...... 3.89 determine whether EP or CEP sales and aggregating the dumping margins Review-Specific Average Rate ap- calculated for all U.S. sales to each NV sales were at different LOTs, we plicable to the following compa- examined stages in the marketing 9 nies: LG Chem, Haewon, 9 This rate is based on the margins calculated for process and selling functions along the Hausys, and Dongkuk ...... 3.08 those companies that were selected for individual chain of distribution between the review, excluding de minimis margins or margins producer and the unaffiliated (or arm’s- *(De minimis). based entirely on adverse facts available.

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importer and dividing this amount by the exporter nor the manufacturer is a Mail or Hand Delivery/Courier: Jane the total quantity of those sales. To firm covered in this or any previous Earley, U.S. Department of Commerce, determine whether the duty assessment review conducted by the Department, Office of Health and Consumer Goods, rates were de minimis, in accordance the cash deposit rate will be 17.70 Room 1015, 1401 Constitution Avenue, with the requirement set forth in 19 CFR percent, the all-others rate established NW., Washington, DC 20230. 351.106(c)(2), we calculated importer- in the LTFV. See Orders on Certain FOR FURTHER INFORMATION CONTACT: For specific ad valorem rates based on the Steel from Korea. These cash deposit questions on the submission of estimated entered value. Where the requirements, when imposed, shall comments, please contact Jane Earley by assessment rate is above de minimis, we remain in effect until further notice. phone at (202) 482–2561 or Andrea will instruct CBP to assess duties on all Cornwell at (202) 482–0998. entries of subject merchandise by that Notification to Importers SUPPLEMENTARY INFORMATION: Written importer. Pursuant to 19 CFR This notice serves as a preliminary comments are sought in light of the 351.106(c)(2), we will instruct CBP to reminder to importers of their announced end of the H1N1 influenza liquidate without regard to antidumping responsibility under 19 CFR pandemic (see World Health duties any entries for which the 351.402(f)(2) to file a certificate Organization announcement of August assessment rate is de minimis (i.e., less regarding the reimbursement of 10, 2010) and the need to plan for future than 0.50 percent). The Department antidumping duties prior to liquidation pandemics. The facts and information intends to issue assessment instructions of the relevant entries during this obtained from written submissions will directly to CBP 15 days after publication review period. Failure to comply with be used to inform the participation of of the final results of this review. this requirement could result in the The Department clarified its the United States Department of Secretary’s presumption that Commerce in the interagency process to ‘‘automatic assessment’’ regulation on reimbursement of antidumping duties May 6, 2003. See Antidumping and prepare for United States participation occurred and the subsequent assessment in international meetings and Countervailing Duty Proceedings: of double antidumping duties. Assessment of Antidumping Duties, negotiations on pandemic planning, These preliminary results of review such as the meeting of the World Health 68 FR 23954 (May 6, 2003). This are issued and published in accordance clarification will apply to entries of Organization (WHO) Pandemic with sections 751(a)(1) and 777(i)(1) of Influenza Preparedness Open Ended subject merchandise during the POR the Act. produced by the respondents subject to Working Group (PIP–OEWG) December this review for which the reviewed Dated: September 7, 2010. 13–17, 2010. companies did not know that the Ronald K. Lorentzen, The Department of Commerce invites merchandise which it sold to an Deputy Assistant Secretary for Import comments from the pharmaceutical and intermediary (e.g. a reseller, trading Administration. medical technology industries and company, or exporter) was destined for [FR Doc. 2010–22887 Filed 9–13–10; 8:45 am] interested members of the public on a the United States. In such instances, we BILLING CODE 3510–DS–P number of issues regarding vaccine will instruct CBP to liquidate production for pandemic influenza. unreviewed entries at the all-others rate The Department of Commerce invites if there is no rate for the intermediary DEPARTMENT OF COMMERCE written submissions on the following involved in the transaction. For a full topics: discussion of this clarification, see id. International Trade Administration 1. Manufacturers’ experiences during the 2009 H1N1 pandemic. What issues Cash Deposit Requirements Request for Comments on Vaccine could have been better handled by The following deposit rates will be Production and Additional Planning for industry, governments and the WHO? effective upon publication of the final Future Possible Pandemic Influenza What is realistic and unrealistic to results of this administrative review for AGENCY: International Trade expect from governments, vaccine all shipments of CORE from Korea Administration, Department of manufacturers, the WHO and others entered, or withdrawn from warehouse, Commerce. during a mild pandemic such as the for consumption on or after the 2009 H1N1 pandemic? How might publication date, as provided by section ACTION: Notice and request for expectations be different for a more 751(a)(2)(C) of the Act: (1) The cash comments. severe pandemic? 2. The emergency response process. deposit rates for the companies listed SUMMARY: The International Trade above will be the rates established in the Administration invites submission of Based on the H1N1 pandemic final results of this review, except if the comments from the public and relevant experience, what changes in operational rate is less than 0.5 percent and, industries on vaccine production and procedures or practices should be made therefore, de minimis, the cash deposit additional planning for future possible to prepare for the next influenza will be zero; (2) for previously reviewed pandemic influenza. pandemic? What additional or investigated companies not listed consultation and decisional processes above, the cash deposit rate will DATES: Written comments must be (within industry and among continue to be the company-specific rate submitted on or before October 1, 2010. governments and the WHO) for published for the most recent final Comments should be no more than 15 pandemic preparedness are needed? results in which that manufacturer or pages. Business-confidential What are the most critical deficiencies exporter participated; (3) if the exporter information should be clearly identified that need to be overcome in the present is not a firm covered in this review, a as such. system to mount a more effective and prior review, or the original less-than- ADDRESSES: You may submit comments robust response to pandemic influenza? fair-value (LTFV) investigation, but the by any of the following methods: 3. Improving availability for manufacturer is, the cash deposit rate E-mail: developing countries. How can we will be the rate established for the most [email protected]. support and stimulate demand for recent final results for the manufacturer Fax: (202) 482–1975 (Attn.: Jane seasonal flu vaccine in middle and of the merchandise; and (4) if neither Earley). lower income countries? Are there other

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mechanisms to increase pandemic the Office of the Secretary by September 6. The Sweatshirts are ‘‘consumer influenza vaccine manufacturing 29, 2010. product[s],’’ and, at all times relevant capacity or otherwise improve global ADDRESSES: Persons wishing to hereto, Pro-Pac was a ‘‘manufacturer’’ of availability of pandemic influenza comment on this Settlement Agreement those consumer products, which were vaccine? Have manufacturers discussed should send written comments to the ‘‘distributed in commerce,’’ as those recent proposals by WHO member Comment 10–C0005, Office of the terms are defined in CPSA sections countries to implement ‘‘mandatory’’ Secretary, Consumer Product Safety 3(a)(5), (8), and (11), 15 U.S.C. mechanisms regarding participation in Commission, 4330 East West Highway, 2052(a)(5), (8), and (11). the Global Influenza Surveillance Room 820, Bethesda, Maryland 20814– 7. In February 1996, the Staff issued Network? What options to current 4408. the Guidelines for Drawstrings on proposals have been considered? FOR FURTHER INFORMATION CONTACT: Children’s Upper Outerwear ‘‘ ’’ 4. Other matters that are related to the Jason E. Yearout, Trial Attorney, ( Guidelines ) to help prevent children substance contained in 1–3, above. Division of Enforcement and from strangling or entangling on neck Please submit by October 1, 2010, a Information, Office of the General and waist drawstrings. The Guidelines state that drawstrings can cause, and written submission of 15 pages or less Counsel, Consumer Product Safety have caused, injuries and deaths when with facts and information on the issues Commission, 4330 East West Highway, they catch on items such as playground described above. Comments should be Bethesda, Maryland 20814–4408; equipment, bus doors, or cribs. In the submitted electronically to telephone (301) 504–7733. [email protected]. Guidelines, the Staff recommends that SUPPLEMENTARY INFORMATION: The text of Business-confidential information there be no hood and neck drawstrings the Agreement and Order appears in children’s upper outerwear sized 2T should be clearly identified. below. Upon receipt of the written to 12. submission, representatives from the Dated: September 8, 2010. 8. In June 1997, ASTM adopted a Department of Commerce and other Todd A. Stevenson, voluntary standard (ASTM F1816–97) federal agencies and departments will Secretary. that incorporated the Guidelines. The Guidelines state that firms should be consider the information. In doing so, UNITED STATES OF AMERICA entities submitting the information may aware of the hazards and should be sure CONSUMER PRODUCT SAFETY garments they sell conform to the be contacted for further information or COMMISSION explanation and, in some cases, voluntary standard. meetings with individual submitters [CPSC Docket No. 10–C0005] 9. On May 19, 2006, the Commission may be requested. posted on its Web site a letter from the In the Matter of: Pro-Pac Distributing Commission’s Director of the Office of Dated: September 8, 2010. Corp. Compliance to manufacturers, Skip Jones, Settlement Agreement importers, and retailers of children’s Deputy Assistant Secretary, Trade 1. In accordance with 16 CFR 1118.20, upper outerwear. The letter urges them Agreements and Compliance, Market Access Pro-Pac Distributing Corporation (‘‘Pro- to make certain that all children’s upper and Compliance, International Trade Pac’’) and the staff (‘‘Staff’’) of the United outerwear sold in the United States Administration, U.S. Department of complies with ASTM F1816–97. The Commerce. States Consumer Product Safety ‘‘ ’’ letter states that the Staff considers [FR Doc. 2010–22881 Filed 9–13–10; 8:45 am] Commission ( Commission ) enter into this Settlement Agreement children’s upper outerwear with BILLING CODE 3510–DA–P (‘‘Agreement’’). The Agreement and the drawstrings at the hood or neck area to incorporated attached Order (‘‘Order’’) be defective and to present a substantial settle the Staff’s allegations set forth risk of injury to young children under CONSUMER PRODUCT SAFETY below. Federal Hazardous Substances Act COMMISSION (‘‘FHSA’’) section 15(c), 15 U.S.C. Parties [CPSC Docket No. 10–C0005] 1274(c). The letter also notes the CPSA’s 2. The Staff is the staff of the section 15(b) reporting requirements. Pro-Pac Distributing Corp., Provisional Commission, an independent federal 10. Pro-Pac’s distribution in Acceptance of a Settlement Agreement regulatory agency established pursuant commerce of the Sweatshirts did not and Order to, and responsible for the enforcement meet the Guidelines or ASTM F1816– of, the Consumer Product Safety Act, 15 97, failed to comport with the Staff’s AGENCY: Consumer Product Safety U.S.C. 2051–2089 (‘‘CPSA’’). May 2006 defect notice, and posed a Commission. 3. Pro-Pac is a corporation organized strangulation hazard to children. ACTION: Notice. and existing under the laws of 11. On July 15, 2009, the Commission California, with its principal offices announced Pro-Pac’s recall of the SUMMARY: It is the policy of the located in Gardena, California. At all Sweatshirts. Commission to publish settlements times relevant hereto, Pro-Pac sold 12. Pro-Pac had presumed and actual which it provisionally accepts under the apparel. knowledge that the Sweatshirts Consumer Product Safety Act in the distributed in commerce posed a Federal Register in accordance with the Staff Allegations strangulation hazard and presented a terms of 16 CFR 1118.20(e). Published 4. In November of 2008, Pro-Pac substantial risk of injury to children below is a provisionally-accepted imported and further distributed in under FHSA section 15(c)(1), 15 U.S.C. Settlement Agreement with Pro-Pac commerce, through sale and/or holding 1274(c)(1). Pro-Pac had obtained Distributing Corp., containing a civil for sale, children’s hooded pullover and information that reasonably supported penalty of $125,000.00. zipper sweatshirts with drawstrings at the conclusion that the Sweatshirts DATES: Any interested person may ask the neck, in sizes Youth S–L contained a defect that could create a the Commission not to accept this (collectively, ‘‘Sweatshirts’’). substantial product hazard or that they agreement or otherwise comment on its 5. Pro-Pac sold Sweatshirts to created an unreasonable risk of serious contents by filing a written request with retailers. injury or death. CPSA sections 15(b)(3)

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and (4), 15 U.S.C. 2064(b)(3) and (4), any claims under the Equal Access to Order required Pro-Pac to immediately inform Justice Act. Upon consideration of the Settlement the Commission of the defect and risk. 20. The Commission may publicize Agreement entered into between Pro- 13. Pro-Pac knowingly failed to the terms of the Agreement and the Pac Distributing Corp. (‘‘Pro-Pac’’) and immediately inform the Commission Order. the U.S. Consumer Product Safety about the Sweatshirts as required by 21. The Agreement and the Order Commission (‘‘Commission’’) staff, and CPSA sections 15(b)(3) and (4), 15 shall apply to, and be binding upon, the Commission having jurisdiction U.S.C. 2064(b)(3) and (4), and as the Pro-Pac and each of its successors and over the subject matter and over Pro- term ‘‘knowingly’’ is defined in CPSA assigns. Pac, and it appearing that the Settlement 22. The Commission issues the Order section 20(d), 15 U.S.C. 2069(d). This Agreement and the Order are in the under the provisions of the CPSA, and failure violated CPSA section 19(a)(4), public interest, it is 15 U.S.C. 2068(a)(4). Pursuant to CPSA violation of the Order may subject Pro- Ordered, that the Settlement section 20, 15 U.S.C. 2069, this failure Pac and each of its successors and Agreement be, and hereby is, accepted; subjected Pro-Pac to civil penalties. assigns to appropriate legal action. and it is 23. The Agreement may be used in Pro-Pac’s Response Further ordered, that Pro-Pac shall interpreting the Order. Understandings, pay a civil penalty in the amount of one 14. Pro-Pac denies the Staff’s agreements, representations, or hundred twenty-five thousand dollars allegations above that Pro-Pac interpretations apart from those ($125,000.00) within twenty (20) knowingly violated the CPSA. contained in the Agreement and the calendar days of service of the Order may not be used to vary or Agreement of the Parties Commission’s final Order accepting the contradict their terms. The Agreement Agreement. The payment shall be made 15. Under the CPSA, the Commission shall not be waived, amended, by check payable to the order of the has jurisdiction over this matter and modified, or otherwise altered without United States Treasury. Upon the failure over Pro-Pac. written agreement thereto executed by of Pro-Pac to make the foregoing 16. The parties enter into the the party against whom such waiver, payment when due, interest on the Agreement for settlement purposes only. amendment, modification, or alteration unpaid amount shall accrue and be paid The Agreement does not constitute an is sought to be enforced. by Pro-Pac at the federal legal rate of admission by Pro-Pac, or a 24. If any provision of the Agreement interest set forth at 28 U.S.C. 1961(a) determination by the Commission, that and the Order is held to be illegal, and (b). Pro-Pac knowingly violated the CPSA. invalid, or unenforceable under present Provisionally accepted and 17. In settlement of the Staff’s or future laws effective during the terms provisional Order issued on the 7th day allegations, Pro-Pac shall pay a civil of the Agreement and the Order, such of September, 2010. penalty in the amount of one hundred provision shall be fully severable. The BY ORDER OF THE COMMISSION: twenty-five thousand dollars balance of the Agreement and the Order ($125,000.00). The civil penalty shall be shall remain in full force and effect, lllllllllllllllllll paid within twenty (20) calendar days of unless the Commission and Pro-Pac service of the Commission’s final Order Todd A. Stevenson, agree that severing the provision Secretary, U.S. Consumer Product accepting the Agreement. The payment materially affects the purpose of the Safety Commission shall be made by check payable to the Agreement and the Order. order of the United States Treasury. [FR Doc. 2010–22779 Filed 9–13–10; 8:45 am] Pro-Pac Distributing Corp. 18. Upon provisional acceptance of BILLING CODE 6355–01–P Dated: August 11, 2010. By: the Agreement, the Agreement shall be lllllllllllllllllllll placed on the public record and Young-Geun Lee published in the Federal Register in President and Owner, Pro-Pac Distributing DEPARTMENT OF DEFENSE accordance with the procedures set Corp., 204 W. Rosecrans Avenue, Gardena, forth in 16 CFR 1118.20(e). In CA 90248. Office of the Secretary accordance with 16 CFR 1118.20(f), if Dated: August 15, 2010. By: the Commission does not receive any lllllllllllllllllllll Strategic Environmental Research and Development Program, Scientific written request not to accept the Simon Langer, Law Offices of David Marh & Associates, Advisory Board Agreement within fifteen (15) calendar 3325 Wilshire Blvd., Suite 1350, Los Angeles, days, the Agreement shall be deemed CA 90010, Counsel for Pro-Pac Distributing AGENCY: Department of Defense. finally accepted on the sixteenth (16th) Corp. ACTION: Notice. calendar day after the date it is U.S. Consumer Product Safety, published in the Federal Register. Commission Staff. SUMMARY: This notice is published in 19. Upon the Commission’s final Cheryl A. Falvey, accordance with Section 10(a)(2) of the acceptance of the Agreement and General Counsel. Federal Advisory Committee Act (Pub. issuance of the final Order, Pro-Pac Ronald G. Yelenik, L. 92–463). The topic of the meeting on knowingly, voluntarily, and completely Assistant General Counsel, Office of the October 19–21, 2010, is to review new General Counsel. start research and development projects waives any rights it may have in this Dated: August 24, 2010. matter to the following: (1) An Jason E. Yearout, requesting Strategic Environmental administrative or judicial hearing; (2) Trial Attorney, Division of Compliance, Research and Development Program judicial review or other challenge or Office of the General Counsel. funds in excess of $1M. This meeting is contest of the validity of the Order or of open to the public. Any interested UNITED STATES OF AMERICA the Commission’s actions; (3) a person may attend, appear before, or file CONSUMER PRODUCT SAFETY determination by the Commission of statements with the Scientific Advisory COMMISSION whether Pro-Pac failed to comply with Board at the time and in the manner the CPSA and its underlying [CPSC Docket No. 10–C0005] permitted by the Board. regulations; (4) a statement of findings In the Matter of: Pro-Pac Distributing DATES: The meeting will be held on of fact and conclusions of law; and (5) Corp. Tuesday, October 19 (from 9 a.m. to 5

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p.m.), Wednesday, October 20 (from 9 the methodology and assumptions used; test to further refine the methodology. A a.m. to 4 p.m.) and Thursday, October (3) Enhance the quality, utility, and number of interventions to improve 21, 2010 (from 8:30 a.m. to 12:30 p.m.). clarity of the information to be response rates and data quality will be ADDRESSES: The meeting will be held at collected; and (4) Minimize the burden tested in 2011. In 2012, NCES will the SERDP Office Conference Center, of the collection of information on those conduct the first full-scale production 901 North Stuart Street, Suite 804, who are to respond, including through data collection utilizing the new design. Arlington, VA 22203. the use of appropriate automated, The 2011 test and 2012 data collections FOR FURTHER INFORMATION CONTACT: Mr. electronic, mechanical, or other will utilize the Parent and Family Jonathan Bunger, SERDP Office, 901 technological collection techniques or Involvement in Education and Early North Stuart Street, Suite 303, other forms of information technology. Childhood Program Participation Arlington, VA, or by telephone at (703) Dated: September 3, 2010. modules. Requests for copies of the information 696–2126. Darrin A. King, collection submission for OMB review Dated: September 8, 2010. Director, Information Collection Clearance may be accessed from the RegInfo.gov Mitchell S. Bryman, Division, Regulatory Information Management Services, Office of Management. Web site at http://www.reginfo.gov/ Alternate OSD Federal Register Liaison public/do/PRAMain or from the Officer, Department of Defense. Institute of Education Sciences Department’s Web site at http:// [FR Doc. 2010–22800 Filed 9–13–10; 8:45 am] Type of Review: Reinstatement. edicsweb.ed.gov, by selecting the BILLING CODE 5001–06–P Title of Collection: National ‘‘Browse Pending Collections’’ link and Household Education Survey (NHES by clicking on link number 4351. When 2011/2012) Field Test. you access the information collection, DEPARTMENT OF EDUCATION OMB Control Number: 1850–0768. click on ‘‘Download Attachments’’ to view. Written requests for information Notice of Submission for OMB Review Frequency of Responses: Once. Affected Public: Individuals or should be addressed to U.S. Department AGENCY: Department of Education. households. of Education, 400 Maryland Avenue, ACTION: Comment request. Total Estimated Number of Annual SW., LBJ, Washington, DC 20202–4537. Responses: 40,905. Requests may also be electronically SUMMARY: The Director, Information Total Estimated Annual Burden mailed to the Internet address Collection Clearance Division, Hours: 5,535. [email protected] or faxed to 202– Regulatory Information Management Abstract: The National Household 401–0920. Please specify the complete Services, Office of Management invites Education Surveys Program (NHES) title of the information collection and comments on the submission for OMB collects data directly from households OMB Control Number when making review as required by the Paperwork on early childhood care and education, your request. Reduction Act of 1995 (Pub. L. 104–13). children’s readiness for school, parent Individuals who use a DATES: Interested persons are invited to perceptions of school safety and telecommunications device for the deaf submit comments on or before October discipline, before- and after-school (TDD) may call the Federal Information 14, 2010. activities of school-age children, Relay Service (FIRS) at 1–800–877– ADDRESSES: Written comments should participation in adult and continuing 8339. be addressed to the Office of education, parent involvement in [FR Doc. 2010–22787 Filed 9–13–10; 8:45 am] Information and Regulatory Affairs, education, school choice, BILLING CODE 4000–01–M Attention: Education Desk Officer, homeschooling, and civic involvement. Office of Management and Budget, 725 NHES surveys have been conducted DEPARTMENT OF EDUCATION 17th Street, NW., Room 10222, New approximately every other year from Executive Office Building, Washington, 1991 through 2007 using random digit Notice of Submission for OMB Review DC 20503, be faxed to (202) 395–5806 or dial (RDD) sampling and telephone data e-mailed to [email protected]. collection from landline telephones AGENCY: Department of Education. gov with a cc: to [email protected]. only. Each survey collection included ACTION: Comment request. Please note that written comments the administration of household received in response to this notice will screening questions (screener) and two SUMMARY: The Acting Director, be considered public records. or three topical surveys. Like virtually Information Collection Clearance SUPPLEMENTARY INFORMATION: Section all RDD surveys, NHES Screener Division, Regulatory Information 3506 of the Paperwork Reduction Act of response rates have declined (from Management Services, Office of 1995 (44 U.S.C. Chapter 35) requires above 80% in early 1990s to 53% in Management invites comments on the that the Office of Management and 2007) and the decline in the percentage submission for OMB review as required Budget (OMB) provide interested of households without landline by the Paperwork Reduction Act of 1995 Federal agencies and the public an early telephones (from 93% in early 2004 to (Pub. L. 104–13). opportunity to comment on information about 75% in 2009 mostly due to DATES: Interested persons are invited to collection requests. The OMB is conversion to cellular-only coverage) submit comments on or before October particularly interested in comments raises issues about population coverage. 14, 2010. which: (1) Evaluate whether the To address these issues, the NHES is ADDRESSES: Written comments should proposed collection of information is transitioning from a Random Digit Dial be addressed to the Office of necessary for the proper performance of (RDD) interviewer administered study to Information and Regulatory Affairs, the functions of the agency, including an Address Based Sample, self- Attention: Education Desk Officer, whether the information will have administered study. A feasibility test of Office of Management and Budget, 725 practical utility; (2) Evaluate the the methodology was conducted 17th Street, NW., Room 10222, New accuracy of the agency’s estimate of the successfully in 2009. In 2011, the Executive Office Building, Washington, burden of the proposed collection of National Center for Education Statistics DC 20503, be faxed to (202) 395–5806 or information, including the validity of (NCES) will conduct a large scale pilot e-mailed to

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[email protected] with a public/do/PRAMain or from the response to this notice will be cc: to [email protected]. Please note Department’s Web site at http:// considered public records. that written comments received in edicsweb.ed.gov, by selecting the SUPPLEMENTARY INFORMATION: Section response to this notice will be ‘‘Browse Pending Collections’’ link and 3506 of the Paperwork Reduction Act of considered public records. by clicking on link number 4346. When 1995 (44 U.S.C. Chapter 35) requires SUPPLEMENTARY INFORMATION: Section you access the information collection, that Federal agencies provide interested 3506 of the Paperwork Reduction Act of click on ‘‘Download Attachments ’’ to parties an early opportunity to comment 1995 (44 U.S.C. Chapter 35) requires view. Written requests for information on information collection requests. The that the Office of Management and should be addressed to U.S. Department Director, Information Collection Budget (OMB) provide interested of Education, 400 Maryland Avenue, Clearance Division, Regulatory Federal agencies and the public an early SW., LBJ, Washington, DC 20202–4537. Information Management Services, opportunity to comment on information Requests may also be electronically Office of Management, publishes this collection requests. The OMB is mailed to the Internet address notice containing proposed information particularly interested in comments [email protected] or faxed to 202– collection requests at the beginning of which: (1) Evaluate whether the 401–0920. Please specify the complete the Departmental review of the proposed collection of information is title of the information collection and information collection. The Department necessary for the proper performance of OMB Control Number when making of Education is especially interested in the functions of the agency, including your request. public comment addressing the whether the information will have Individuals who use a following issues: (1) Is this collection practical utility; (2) Evaluate the telecommunications device for the deaf necessary to the proper functions of the accuracy of the agency’s estimate of the (TDD) may call the Federal Information Department?; (2) will this information burden of the proposed collection of Relay Service (FIRS) at 1–800–877– be processed and used in a timely information, including the validity of 8339. manner?; (3) is the estimate of burden the methodology and assumptions used; [FR Doc. 2010–22892 Filed 9–13–10; 8:45 am] accurate?; (4) how might the Department (3) Enhance the quality, utility, and BILLING CODE 4000–01–P enhance the quality, utility, and clarity clarity of the information to be of the information to be collected?; and collected; and (4) Minimize the burden (5) how might the Department minimize of the collection of information on those DEPARTMENT OF EDUCATION the burden of this collection on the who are to respond, including through respondents, including through the use the use of appropriate automated, Notice of Proposed Information of information technology? Collection Requests electronic, mechanical, or other Dated: September 7, 2010. technological collection techniques or AGENCY: Department of Education. Darrin A. King, other forms of information technology. ACTION: Comment Request. Director, Information Collection Clearance Dated: September 8, 2010. Division, Regulatory Information James Hyler, SUMMARY: The Department of Education Management Services, Office of Management. Acting Director, Information Collection (the Department), in accordance with Institute of Education Sciences Clearance Division, Regulatory Information the Paperwork Reduction Act of 1995 Management Services, Office of Management. (PRA) (44 U.S.C. 3506(c)(2)(A)), Type of Review: New. provides the general public and Federal Title of Collection: Integrated Office of Elementary and Secondary Evaluation of ARRA Funding, Education agencies with an opportunity to comment on proposed and continuing Implementation and Outcomes. Type of Review: Revision of a collections of information. This helps OMB Control Number: 1850–NEW. currently approved collection. the Department assess the impact of its Agency Form Number(s): N/A. Title of Collection: Consolidated State information collection requirements and Frequency of Responses: Once. Performance Report (Part I and Part II). minimize the reporting burden on the Affected Public: State, Local, or Tribal OMB Control Number: 1810–0614. public and helps the public understand Government. Total Estimated Number of Annual Agency Form Number(s): N/A. the Department’s information collection Responses: 5,551. Frequency of Responses: Annually. requirements and provide the requested Total Estimated Number of Annual Affected Public: State, Local, or Tribal data in the desired format. The Director, Burden Hours: 1,509. Government, State Educational Information Collection Clearance Abstract: On February 17, 2009, Agencies, Local Educational Agencies. Division, Regulatory Information Total Estimated Number of Annual President Obama signed the American Management Services, Office of Responses: 14,653. Recovery and Reinvestment Act (ARRA) Management, invites comments on the Total Estimated Annual Burden into law (Pub. L. 111–50). ARRA proposed information collection Hours: 11,864. supports investments in innovative requests as required by the Paperwork Abstract: The Consolidated State strategies that are intended to lead to Reduction Act of 1995. Performance Report (CSPR) is the improved results for students, long-term required annual reporting tool for each DATES: Interested persons are invited to gains in school and local education State, Bureau of Indian Education, submit comments on or before agency (LEA) capacity for success, and District of Columbia, and Puerto Rico as November 15, 2010. increased productivity and authorized under Section 9303 of the ADDRESSES: Comments regarding burden effectiveness. Elementary and Secondary Education and/or the collection activity This evaluation will focus on Act (ESEA), as amended by the No requirements should be electronically answering four sets of research Child Left Behind Act of 2001 (NCLB). mailed to [email protected] or questions: Requests for copies of the information mailed to U.S. Department of Education, • Money: Which states/districts/ collection submission for OMB review 400 Maryland Avenue, SW., LBJ, schools get which program funds, when, may be accessed from the RegInfo.gov Washington, DC 20202–4537. Please and how much? What do they spend it Web site at http://www.reginfo.gov/ note that written comments received in on? How much overlap is there across

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ARRA funding streams in terms of who ‘‘Download Attachments’’ to view. Office of Management, publishes this receives the funding or what grantees do Written requests for information should notice containing proposed information with it? be addressed to U.S. Department of collection requests at the beginning of • Strategies: What efforts and Education, 400 Maryland Avenue, SW., the Departmental review of the activities are underway as a result of LBJ, Washington, DC 20202–4537. information collection. The Department each of the ARRA programs and overall? Please include complete title of the of Education is especially interested in What state policies are changing or information collection and OMB Control public comment addressing the being enacted? What specific Number when making your request. following issues: (1) Is this collection interventions are districts and schools Individuals who use a necessary to the proper functions of the implementing? How do the strategies telecommunications device for the deaf Department (2) Will this information be line up with the four assurances or with (TDD) may call the Federal Information processed and used in a timely manner the specific strategies promoted by the Relay Service (FIRS) at 1–800–877– (3) Is the estimate of burden accurate different programs? 8339. (4) How might the Department enhance • Implementation Process: How [FR Doc. 2010–22781 Filed 9–13–10; 8:45 am] the quality, utility, and clarity of the much coordination do states and BILLING CODE 4000–01–P information to be collected; and districts report in the decision-making (5) How might the Department minimize and planning for implementation across the burden of this collection on the the various streams of funds? Are DEPARTMENT OF EDUCATION respondents, including through the use districts that receive funds directly (e.g., of information technology. thru I3) employing strategies that are Notice of Proposed Information consistent with their state’s policies and Collection Requests Dated: September 8, 2010. plans (e.g., under Race to the Top)? On James Hyler, AGENCY: Department of Education. an ongoing basis, what challenges do Acting Director, Information Collection ACTION: grantees face in enacting their plans and Comment request. Clearance Division, Regulatory Information Management Services, Office of Management. what successes have they had? SUMMARY: The Department of Education • Outcomes: Is receiving more ARRA (the Department), in accordance with Federal Student Aid funds or certain types of funds the Paperwork Reduction Act of 1995 Type of Review: Extension of a associated with improvement in student (PRA) (44 U.S.C. 3506(c)(2)(A)), outcomes or other key measures (e.g., currently approved collection. provides the general public and Federal Title of Collection: Lender’s Request more equitable distribution of teacher agencies with an opportunity to quality)? for Payment of Interest and Special comment on proposed and continuing Allowance—LaRS. The integrated evaluation will draw collections of information. This helps on existing data, including ED data OMB Control Number: 1845–0013. the Department assess the impact of its Agency Form Number(s): ED Form collections, ED ARRA program files, information collection requirements and ARRA required reporting, and databases 799. minimize the reporting burden on the of achievement and other outcomes. The Frequency of Responses: Quarterly. public and helps the public understand evaluation will also collect new Affected Public: Businesses or other the Department’s information collection information through surveys of (1) The for-profit; Not-for-profit institutions. requirements and provide the requested 50 states and the District of Columbia, Total Estimated Number of Annual data in the desired format. The Acting (2) a nationally representative sample of Responses: 11,600. Director, Information Collection school districts, and (3) a nationally Total Estimated Number of Annual Clearance Division, Regulatory representative sample of schools within Burden Hours: 28,275. Information Management Services, the sampled school districts. Surveys Abstract: The Lender’s Request for Office of Management, invites are planned for spring 2011, spring Payment of Interest and Special comments on the proposed information 2012, and spring 2013. Subsamples of Allowance—LaRS (ED Form 799) is collection requests as required by the school districts will also be drawn to used by approximately 2,900 lenders Paperwork Reduction Act of 1995. receive a smaller set of questions (polls); participating in the Title IV, Part B loan these polls will be administered twice DATES: Interested persons are invited to programs. The ED Form 799 is used to between 2011 and 2013. submit comments on or before pay interest and special allowance to A report will be prepared in the first November 15, 2010. holders of the Part B loans; and to year of the evaluation to describe the ADDRESSES: Comments regarding burden capture quarterly data from lenders’ distribution of funding. A report and and/or the collection activity loan portfolio for financial and state tabulations will be prepared after requirements should be electronically budgetary projections. each annual survey. The first report, mailed to [email protected] or Requests for copies of the proposed based on the 2011 surveys, will focus on mailed to U.S. Department of Education, information collection request may be early ARRA implementation and 400 Maryland Avenue, SW., LBJ, accessed from http://edicsweb.ed.gov, strategies. The second report, based on Washington, DC 20202–4537. Please by selecting the ‘‘Browse Pending the 2012 surveys, will expand upon note that written comments received in Collections’’ link and by clicking on link strategies implemented under ARRA. response to this notice will be number 4366. When you access the The final report will draw upon existing considered public records. information collection, click on data on outcomes as well as data from SUPPLEMENTARY INFORMATION: Section ‘‘Download Attachments’’ to view. the 2013 surveys. 3506 of the Paperwork Reduction Act of Written requests for information should Requests for copies of the proposed 1995 (44 U.S.C. Chapter 35) requires be addressed to U.S. Department of information collection request may be that Federal agencies provide interested Education, 400 Maryland Avenue, SW., accessed from http://edicsweb.ed.gov, parties an early opportunity to comment LBJ, Washington, DC 20202–4537. by selecting the ‘‘Browse Pending on information collection requests. The Requests may also be electronically Collections’’ link and by clicking on link Acting Director, Information Collection mailed to [email protected] or faxed number 4385. When you access the Clearance Division, Regulatory to 202–401–0920. Please specify the information collection, click on Information Management Services, complete title of the information

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collection and OMB Control Number public comment addressing the DEPARTMENT OF EDUCATION when making your request. following issues: (1) Is this collection Individuals who use a necessary to the proper functions of the Notice of Submission for OMB Review telecommunications device for the deaf Department; (2) will this information be AGENCY: Department of Education. (TDD) may call the Federal Information processed and used in a timely manner; ACTION: Comment request. Relay Service (FIRS) at 1–800–877– (3) is the estimate of burden accurate; 8339. (4) how might the Department enhance SUMMARY: The Acting Director, [FR Doc. 2010–22911 Filed 9–13–10; 8:45 am] the quality, utility, and clarity of the Information Collection Clearance BILLING CODE 4000–01–P information to be collected; and (5) how Division, Regulatory Information might the Department minimize the Management Services, Office of burden of this collection on the Management invites comments on the DEPARTMENT OF EDUCATION respondents, including through the use submission for OMB review as required of information technology. Notice of Proposed Information by the Paperwork Reduction Act of 1995 Collection Requests Dated: September 8, 2010. (Pub. L. 104–13). James Hyler, DATES: Interested persons are invited to AGENCY: Department of Education. Acting Director, Information Collection submit comments on or before October ACTION: Comment request. Clearance Division, Regulatory Information 14, 2010. Management Services, Office of Management. ADDRESSES: Written comments should SUMMARY: The Department of Education Federal Student Aid be addressed to the Office of (the Department), in accordance with Information and Regulatory Affairs, the Paperwork Reduction Act of 1995 Type of Review: Extension of a Attention: Education Desk Officer, (PRA) (44 U.S.C. 3506(c)(2)(A)), currently approved collection. Office of Management and Budget, 725 provides the general public and Federal Title of Collection: Federal Register 17th Street, NW., Room 10222, New agencies with an opportunity to Notice Inviting Applications for the Executive Office Building, Washington, comment on proposed and continuing Participation in the Quality Assurance DC 20503, be faxed to (202) 395–5806 or collections of information. This helps (QA) Program. e-mailed to the Department assess the impact of its OMB Control Number: 1845–0055. [email protected] with a information collection requirements and Agency Form Number(s): N/A. cc: to [email protected]. Please note Frequency of Responses: One Time. minimize the reporting burden on the that written comments received in public and helps the public understand Affected Public: Federal Government. Total Estimated Number of Annual response to this notice will be the Department’s information collection considered public records. requirements and provide the requested Responses: 125. Total Estimated Number of Annual SUPPLEMENTARY INFORMATION: Section data in the desired format. The Acting 3506 of the Paperwork Reduction Act of Director, Information Collection Burden Hours: 125. Abstract: The Secretary will invite 1995 (44 U.S.C. Chapter 35) requires Clearance Division, Regulatory institutions of higher education to send that the Office of Management and Information Management Services, a letter of application to participate in Budget (OMB) provide interested Office of Management, invites the Department of Education’s Quality Federal agencies and the public an early comments on the proposed information Assurance (QA) Program. This Program opportunity to comment on information collection requests as required by the is intended to allow and encourage collection requests. The OMB is Paperwork Reduction Act of 1995. participating institutions to develop and particularly interested in comments DATES: Interested persons are invited to implement their own comprehensive which: (1) Evaluate whether the submit comments on or before programs to verify student financial aid proposed collection of information is November 15, 2010. application data. necessary for the proper performance of ADDRESSES: Comments regarding burden Requests for copies of the proposed the functions of the agency, including and/or the collection activity information collection request may be whether the information will have requirements should be electronically accessed from http://edicsweb.ed.gov, practical utility; (2) Evaluate the mailed to [email protected] or by selecting the ‘‘Browse Pending accuracy of the agency’s estimate of the mailed to U.S. Department of Education, Collections’’ link and by clicking on link burden of the proposed collection of 400 Maryland Avenue, SW., LBJ, number 4384. When you access the information, including the validity of Washington, DC 20202–4537. Please information collection, click on the methodology and assumptions used; note that written comments received in ‘‘Download Attachments’’ to view. (3) Enhance the quality, utility, and response to this notice will be Written requests for information should clarity of the information to be considered public records. be addressed to U.S. Department of collected; and (4) Minimize the burden SUPPLEMENTARY INFORMATION: Section Education, 400 Maryland Avenue, SW., of the collection of information on those 3506 of the Paperwork Reduction Act of LBJ, Washington, DC 20202–4537. who are to respond, including through 1995 (44 U.S.C. Chapter 35) requires Requests may also be electronically the use of appropriate automated, that Federal agencies provide interested mailed to [email protected] or faxed electronic, mechanical, or other parties an early opportunity to comment to 202–401–0920. Please specify the technological collection techniques or on information collection requests. The complete title of the information other forms of information technology. Acting Director, Information Collection collection and OMB Control Number Dated: September 9, 2010. Clearance Division, Regulatory when making your request. James Hyler, Information Management Services, Individuals who use a Acting Director, Information Collection Office of Management, publishes this telecommunications device for the deaf Clearance Division, Regulatory Information notice containing proposed information (TDD) may call the Federal Information Management Services, Office of Management. collection requests at the beginning of Relay Service (FIRS) at 1–800–877– the Departmental review of the 8339. Office of Elementary and Secondary information collection. The Department [FR Doc. 2010–22910 Filed 9–13–10; 8:45 am] Education of Education is especially interested in BILLING CODE 4000–01–P Type of Review: Revision.

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Title of Collection: Migrant High mailed to the Internet address collection requests at the beginning of School Equivalency Program Annual [email protected] or faxed to 202– the Departmental review of the Performance Report. 401–0920. Please specify the complete information collection. The Department OMB Control Number: 1810–0684. title of the information collection and of Education is especially interested in Agency Form Number(s): N/A. OMB Control Number when making public comment addressing the Frequency of Responses: Annually. your request. following issues: (1) Is this collection Affected Public: Not-for-profit Individuals who use a necessary to the proper functions of the institutions; State, Local, or Tribal telecommunications device for the deaf Department; (2) will this information be Government, State Educational (TDD) may call the Federal Information processed and used in a timely manner; Agencies, Local Educational Agencies. Relay Service (FIRS) at 1–800–877– (3) is the estimate of burden accurate; Total Estimated Number of Annual 8339. (4) how might the Department enhance Responses: 42. [FR Doc. 2010–22896 Filed 9–13–10; 8:45 am] the quality, utility, and clarity of the Total Estimated Annual Burden information to be collected; and (5) how Hours: 1,344. BILLING CODE 4000–01–P Abstract: The Office of Migrant might the Department minimize the Education is collecting information for burden of this collection on the DEPARTMENT OF EDUCATION the High School Equivalency Program respondents, including through the use of information technology. Annual Performance Report in Notice of Proposed Information compliance with Higher Education Act Collection Requests Dated: September 8, 2010. of 1965, as amended, Title IV, Sec. James Hyler, AGENCY: Department of Education. 418A; 20 U.S.C. 1070d–2 (special Acting Director, Information Collection programs for students whose families ACTION: Comment request. Clearance Division, Regulatory Information are engaged in migrant and seasonal Management Services, Office of Management. farm work), the Government SUMMARY: The Department of Education Performance Results Act (GPRA) of (the Department), in accordance with Federal Student Aid 1993, Section 4 (1115), and the the Paperwork Reduction Act of 1995 Type of Review: Revision of a Education Department General (PRA) (44 U.S.C. 3506(c)(2)(A)), currently approved collection. Administrative Regulations (EDGAR), provides the general public and Federal Title of Collection: Federal Direct 34 CFR 75.253. EDGAR states that agencies with an opportunity to Consolidation Loan Program comment on proposed and continuing recipients of multi-year discretionary Application Documents (KA). grants must submit an Annual collections of information. This helps OMB Control Number: 1845–0053. Performance Report demonstrating that the Department assess the impact of its Agency Form Number(s): N/A. substantial progress has been made information collection requirements and Frequency of Responses: On occasion. towards meeting the approved minimize the reporting burden on the Affected Public: Individuals or objectives of the project. In addition, public and helps the public understand household; private sector. discretionary grantees are required to the Department’s information collection Total Estimated Number of Annual report on their progress toward meeting requirements and provide the requested Responses: 1,992,600. the performance measures established data in the desired format. The Acting Total Estimated Number of Annual for the Department of Education grant Director, Information Collection Burden Hours: 717,582. program. The Office of Migrant Clearance Division, Regulatory Abstract: The Federal Direct Education requests a revision of a Information Management Services, Consolidation Loan Application and currently approved collection to Office of Management, invites Promissory Note serves as the means by continue the use of a customized comments on the proposed information which a borrower applies for a Direct Annual Performance Report that goes collection requests as required by the Consolidation Loan and promises to beyond the Department of Education Paperwork Reduction Act of 1995. repay the loan. Related documents generic form number 524B Annual DATES: Interested persons are invited to included with this collection are (1) Performance Report to facilitate the submit comments on or before Additional Loan Listing Sheet (provides collection of more standardized and November 15, 2010. additional space for a borrower to list comprehensive data to inform GPRA, to ADDRESSES: Comments regarding burden loans that he or she wishes to improve the overall quality of data and/or the collection activity consolidate, if there is insufficient space collected, and to increase the quality of requirements should be electronically on the Application and Promissory data that can be used to inform policy mailed to [email protected] or Note), (2) Request to Add Loans (serves decisions. mailed to U.S. Department of Education, as the means by which a borrower may Requests for copies of the information 400 Maryland Avenue, SW., LBJ, add other loans to an existing Direct collection submission for OMB review Washington, DC 20202–4537. Please Consolidation Loan within a specified may be accessed from the RegInfo.gov note that written comments received in time period); and (3) Loan Verification Web site at http://www.reginfo.gov/ response to this notice will be Certificate (serves as the means by public/do/PRAMain or from the considered public records. which the U.S. Department of Education Department’s Web site at http:// SUPPLEMENTARY INFORMATION: Section obtains the information needed to pay edicsweb.ed.gov, by selecting the 3506 of the Paperwork Reduction Act of off the holders of the loans that the ‘‘Browse Pending Collections’’ link and 1995 (44 U.S.C. Chapter 35) requires borrower wants to consolidate). by clicking on link number 4298. When that Federal agencies provide interested Requests for copies of the proposed you access the information collection, parties an early opportunity to comment information collection request may be click on ‘‘Download Attachments’’ to on information collection requests. The accessed from http://edicsweb.ed.gov, view. Written requests for information Acting Director, Information Collection by selecting the ‘‘Browse Pending should be addressed to U.S. Department Clearance Division, Regulatory Collections’’ link and by clicking on link of Education, 400 Maryland Avenue, Information Management Services, number 4387. When you access the SW., LBJ, Washington, DC 20202–4537. Office of Management, publishes this information collection, click on Requests may also be electronically notice containing proposed information ‘‘Download Attachments’’ to view.

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Written requests for information should (1) Enable the Secretary to provide State Directors of Special Education to be addressed to U.S. Department of additional funds to the currently funded carry out Project Forum. Education, 400 Maryland Avenue, SW., State and Federal Policy Forum for The purpose of Project Forum is to LBJ, Washington, DC 20202–4537. Program Improvement Center for an provide States, local educational Requests may also be electronically additional 12-month period, from agencies (LEAs), and Federal decision mailed to [email protected] or faxed October 1, 2010 through September 30, makers responsible for the to 202–401–0920. Please specify the 2011; and implementation of the IDEA with access complete title of the information (2) Request comments on the to valid statistics, research findings, collection and OMB Control Number proposed extension of project period policy analyses, and current information when making your request. and waiver. on trends in the provision of special Individuals who use a There are no substantive differences education and related services and early telecommunications device for the deaf between the notice of proposed intervention services. Specifically, (TDD) may call the Federal Information extension of project period and waiver Project Forum assists States and LEAs Relay Service (FIRS) at 1–800–877– and this notice of final extension of with the process of planning systemic 8339. project period and waiver. changes that will promote improved early intervention, education, and [FR Doc. 2010–22894 Filed 9–13–10; 8:45 am] Public Comment BILLING CODE 4000–01–P transitional results for children with We invited comments on the disabilities. Project Forum also provides proposed extension of project period the Office of Special Education DEPARTMENT OF EDUCATION and waiver in the notice of proposed Programs (OSEP) with a mechanism and extension of project period and waiver. resources for analyzing policies and Final Extension of Project Period and Seven parties submitted comments in emerging issues that are of significant Waiver for the State and Federal Policy agreement with the proposal to extend national concern. Forum the grant period of the current grantee. Project Forum’s current project period We did not receive any comments is scheduled to end on September 30, AGENCY: Office of Special Education opposing the proposed extension of 2010. We do not believe it would be in Programs, Office of Special Education project period and waiver. Generally, the public interest to hold new and Rehabilitative Services, Department we do not address technical and other competitions under the TA&D program of Education. minor changes, as well as suggested until the Department has considered ACTION: Notice of final extension of changes the law does not authorize us changes being made to the Elementary project period and waiver for the State to make. Moreover, we do not address and Secondary Education Act of 1965, and Federal Policy Forum for Program comments that do not express views on as amended (ESEA), during the process Improvement Center (CFDA No. the substance of the notice of proposed of reauthorizing that law and the 84.326F). extension of project period and waiver. Department has developed a coordinated strategy for the provision of SUMMARY: The Secretary issues this Waiver of Delayed Effective Date notice to waive the requirements in the technical assistance that is designed to The Administrative Procedure Act Education Department General help States, LEAs, and schools requires that a substantive rule must be Administrative Regulations, in 34 CFR effectively implement key provisions of published at least 30 days before its 75.250 and 75.261(a) and (c), the ESEA and IDEA and improve effective date, except as otherwise educational results for all students. We respectively, that generally prohibit provided for good cause (5 U.S.C. also have concluded that it would be project periods exceeding five years and 553(d)(3)). No comments were received contrary to the public interest to have a extensions of project periods involving during the 15-day public comment lapse in the provision of technical the obligation of additional Federal period opposing the notice of proposed assistance provided under the TA&D funds. The extension of project period extension of project period and waiver, program pending the reauthorization of and waiver enable the currently funded and we have not made any substantive ESEA. For these reasons, the Secretary State and Federal Policy Forum for changes to the extension and waiver. waives the requirements in 34 CFR Program Improvement Center to receive The Secretary has determined therefore 75.250, which prohibit project periods funding from October 1, 2010 through that, to ensure a timely continuation exceeding five years, and the September 30, 2011. grant to the entity affected, a delayed requirements in 34 CFR 75.261(a) and DATES: The extension of project period effective date is not required. (c), which limit the extension of a and waiver are effective September 14, project period if the extension involves Background 2010. the obligation of additional Federal FOR FURTHER INFORMATION CONTACT: On March 3, 2005, the Department funds, and issues a continuation award David Egnor, U.S. Department of published a notice in the Federal in the amount of $450,000 to the Education, 550 12th St., SW., Room Register (70 FR 10374), inviting National Association of State Directors 4054, Potomac Center Plaza, applications for new awards for fiscal of Special Education (H326F050001) for Washington, DC 20202–2641. year (FY) 2005 under the Technical an additional twelve-month period. Telephone: (202) 245–7334. Assistance and Dissemination to Waiving these regulations and issuing If you use a telecommunications Improve Services and Results for this continuation award ensure that device for the deaf (TDD), call the Children with Disabilities (TA&D) continued technical assistance is Federal Relay Service (FRS), toll-free, at program, authorized under section 663 available to assist Federal decision 1–800–877–8339. of the Individuals with Disabilities makers, States, and LEAs with systemic SUPPLEMENTARY INFORMATION: The Education Act (IDEA), to support a State changes that will promote improved Department published a notice in the and Federal Policy Forum for Program early intervention, education, and Federal Register (75 FR 44231) on July Improvement Center (Project Forum). transitional results for children with 28, 2010, proposing an extension of Based on that notice, the Department disabilities, as the Department works on project period and a waiver in order made one award for a period of 60 reauthorization of the ESEA and designs to— months to the National Association of IDEA technical assistance competitions

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that are coordinated and aligned with Intergovernmental Review and waiver enable the currently funded the Department’s technical assistance This program is subject to the National Center on Educational priorities. requirements of Executive Order 12372 Outcomes at the University of During the next fiscal year, Project and the regulations in 34 CFR part 79. Minnesota to receive funding from Forum will conduct the following One of the objectives of the Executive October 1, 2010 through September 30, activities: order is to foster an intergovernmental 2011. (a) Identify, through contact with DATES: The extension of project period experts, research reviews, regular partnership and a strengthened federalism. The Executive order relies and waiver are effective September 14, communication with State and local 2010. policy officials, and other types of needs on processes developed by State and assessments, the information that local governments for coordination and FOR FURTHER INFORMATION CONTACT: programs need to improve, both at the review of proposed Federal financial David Malouf, U.S. Department of national, State, and local levels; assistance. This document provides Education, 550 12th St., SW., Room (b) Collect, organize, synthesize, early notification of our specific plans 4114, Potomac Center Plaza, interpret, and integrate information and actions for this program. Washington, DC 20202–2641; needed for program improvement using Accessible Format: Individuals with Telephone: (202) 245–6253. a variety of methods and formats such disabilities can obtain this document in If you use a telecommunications as surveys, interviews, brief case an accessible format (e.g., braille, large device for the deaf (TDD), call the examinations, and meetings among print, audiotape, or computer diskette) Federal Relay Service (FRS), toll-free, at special education administrators, on request to the contact person listed 1–800–877–8339. outside experts, representatives of under FOR FURTHER INFORMATION SUPPLEMENTARY INFORMATION: The students with disabilities and their CONTACT. Department published a notice in the families, and others; Electronic Access to This Document Federal Register (75 FR 44234) on July (c) Analyze emerging policy or 28, 2010, proposing an extension of program issues regarding the You can view this document, as well project period and a waiver in order administration of special education, as all other documents of this to— early intervention, and related services Department published in the Federal (1) Enable the Secretary to provide at the Federal, State, and local levels, Register, in text or Adobe Portable additional funds to the currently funded and review, plan, and provide Document Format (PDF) on the Internet National Center on Educational leadership in recommending multi-level at the following site: http://www.ed.gov/ Outcomes at the University of actions that respond to emerging issues; news/fedregister. To use PDF you must Minnesota for an additional 12-month (d) Communicate, collaborate, and have Adobe Acrobat Reader, which is period, from October 1, 2010 through form partnerships as appropriate and as available free at this site. September 30, 2011; and directed by OSEP, with technical Note: The official version of this document (2) Request comments on the assistance providers at the national and is the document published in the Federal proposed extension of project period regional levels, including those that are Register. Free Internet access to the official and waiver. part of the OSEP-supported special edition of the Federal Register and the Code There are no substantive differences education technical assistance and of Federal Regulations is available on GPO between the notice of proposed dissemination network; Access at: http://www.gpoaccess.gov/nara/ extension of project period and waiver index.html. (e) Communicate regularly with OSEP and this notice of final extension of to provide and receive information that Dated: September 7, 2010. project period and waiver. may assist OSEP in improving its efficiency and effectiveness in Alexa Posny, Public Comment administering IDEA; Assistant Secretary for Special Education and Rehabilitative Services. We invited comments on the (f) As a result of the activities proposed extension of project period [FR Doc. 2010–22880 Filed 9–13–10; 8:45 am] associated with paragraphs (a) through and waiver in the notice of proposed (e), at a minimum— BILLING CODE 4000–01–P extension of project period and waiver. (1) Complete three in-depth policy We did not receive any comments. analyses; (2) Prepare ten policy syntheses; and DEPARTMENT OF EDUCATION Waiver of Delayed Effective Date (3) Convene one policy forum and The Administrative Procedure Act write a proceedings document; Office of Special Education Programs, (g) Disseminate documents noted Office of Special Education and requires that a substantive rule must be under paragraph (f) to a wide audience, Rehabilitative Services, Department of published at least 30 days before its including State and local directors of Education; Notice of Final Extension of effective date, except as otherwise special education; and Project Period and Waiver for the provided for good cause (5 U.S.C. (h) Maintain the project Web site. National Center on Educational 553(d)(3)). No comments were received Outcomes at the University of during the 15-day public comment Regulatory Flexibility Act Certification Minnesota (CFDA No. 84.326G) period on the notice of proposed The Secretary certifies that the extension of project period and waiver extension of project period and waiver SUMMARY: The Secretary issues this and we have not made any substantive do not have a significant economic notice to waive the requirements in the changes to the extension and waiver. impact on a substantial number of small Education Department General The Secretary has determined therefore entities. The only entity affected is Administrative Regulations, in 34 CFR that, to ensure a timely continuation Project Forum. 75.250 and 75.261(a) and (c), grant to the entity affected, a delayed respectively, that generally prohibit effective date is not required. Paperwork Reduction Act of 1995 project periods exceeding five years and The extension of project period and extensions of project periods involving Background waiver do not contain any information the obligation of additional Federal On August 8, 2005, the Department collection requirements. funds. The extension of project period published a notice in the Federal

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Register (70 FR 45712), inviting assessments, as the Department works Electronic Access to This Document applications for new awards for fiscal on reauthorization of the ESEA and You can view this document, as well year (FY) 2005 under the Technical designs IDEA technical assistance as all other documents of this Assistance and Dissemination to competitions that are coordinated and Department published in the Federal Improve Services and Results for aligned with the Department’s technical Register, in text or Adobe Portable Children with Disabilities program assistance priorities. Document Format (PDF) on the Internet (TA&D), authorized under section 663 of During the next fiscal year, NCEO will at the following site: http://www.ed.gov/ the Individuals with Disabilities Act (1) Provide, upon request, technical news/fedregister. To use PDF you must (IDEA), to support a National Technical assistance to States regarding the have Adobe Acrobat Reader, which is Assistance Center on Assessment for inclusion of students with disabilities as available free at this site. Children with Disabilities. Based on that they develop new academic notice, the Department made one award Note: The official version of this document assessments, including assessments that is the document published in the Federal for a period of 60 months to the consortia of States may develop under Register. Free Internet access to the official University of Minnesota, National the Race to the Top Assessment edition of the Federal Register and the Code Center on Educational Outcomes Program, and assessments associated of Federal Regulations is available on GPO (NCEO). Under this award, the Office of with other Federal laws (e.g., the ESEA Access at: http://www.gpoaccess.gov/nara/ Special Education Programs (OSEP) and IDEA); (2) develop and implement index.html. funds NCEO to address national, State, national and regional activities to Dated: September 7, 2010. and local assessment issues related to ensure that students with disabilities are Alexa Posny, students with disabilities. NCEO also included in and benefit from emerging assists OSEP with analyzing State approaches to assessment (e.g., Assistant Secretary for Special Education and Rehabilitative Services. assessment data submitted in the State supporting communities of practice and Performance Plan/Annual Performance convening national forums); (3) [FR Doc. 2010–22904 Filed 9–13–10; 8:45 am] Reports (SPP/APR) required under the continue, update, and expand analyses BILLING CODE 4000–01–P IDEA. of State SPP/APR assessment data; (4) NCEO’s current project period is collect, analyze, synthesize, and DEPARTMENT OF EDUCATION scheduled to end on September 30, disseminate relevant information related 2010. We do not believe it would be in to the assessment of students with Office of Special Education Programs, the public interest to hold new disabilities, as appropriate; and (5) serve competitions under the TA&D program Office of Special Education and as a national resource for policymakers, until the Department has considered Rehabilitative Services, Department of administrators, teachers, advocates, and changes being made to the Elementary Education; Notice of Final Extension of parents on the assessment of students and Secondary Education Act of 1965, Project Period and Waiver for the with disabilities. as amended (ESEA), during the process National Secondary Transition of reauthorizing that law and the Regulatory Flexibility Act Certification Technical Assistance Center (CFDA Department has developed a No. 84.326J) The Secretary certifies that the coordinated strategy for the provision of extension of project period and waiver SUMMARY: The Secretary issues this technical assistance that is designed to do not have a significant economic notice to waive the requirements in the help States, local educational agencies impact on a substantial number of small Education Department General (LEAs), and schools effectively Administrative Regulations, in 34 CFR implement key provisions of the ESEA entities. The only entity affected is NCEO. 75.250 and 75.261(a) and (c), and IDEA and improve educational respectively, that generally prohibit results for all students. We also have Paperwork Reduction Act of 1995 project periods exceeding five years and concluded that it would be contrary to The extension of project period and extensions of project periods involving the public interest to have a lapse in the the obligation of additional Federal provision of technical assistance waiver do not contain any information collection requirements. funds. The extension of project period provided under the TA&D program and waiver enable the currently funded pending the reauthorization of ESEA. Intergovernmental Review National Secondary Transition For these reasons, the Secretary waives Technical Assistance Center to receive the requirements in 34 CFR 75.250, This program is subject to the requirements of Executive Order 12372 funding from December 31, 2010 which prohibit project periods through December 31, 2011. exceeding five years, and the and the regulations in 34 CFR part 79. DATES: The extension of project period requirements in 34 CFR 75.261(a) and One of the objectives of the Executive order is to foster an intergovernmental and waiver are effective October 14, (c), which limit the extension of a 2010. project period if the extension involves partnership and a strengthened the obligation of additional Federal federalism. The Executive order relies FOR FURTHER INFORMATION CONTACT: funds, and issues a continuation award on processes developed by State and Michael Slade, U.S. Department of in the amount of $1,000,000 to the local governments for coordination and Education, 550 12th St., SW., room University of Minnesota (H326G050007) review of proposed Federal financial 4083, Potomac Center Plaza, for an additional twelve-month period. assistance. This document provides Washington, DC 20202–2641. Waiving these regulations and issuing early notification of our specific plans Telephone: (202) 245–7527. this continuation award ensure that and actions for this program. If you use a telecommunications continued technical assistance is Accessible Format: Individuals with device for the deaf (TDD), call the available to assist States with disabilities can obtain this document in Federal Relay Service (FRS), toll-free, at developing and implementing an accessible format (e.g., braille, large 1–800–877–8339. appropriate assessments of students print, audiotape, or computer diskette) SUPPLEMENTARY INFORMATION: The with disabilities, as well as emerging on request to the contact person listed Department published a notice in the issues related to the inclusion of under FOR FURTHER INFORMATION Federal Register (75 FR 44233) on July children with disabilities in CONTACT. 28, 2010, proposing an extension of

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project period and a waiver in order significant progress in disseminating Report Indicator 13, which assesses to— information on evidence-based practices States’ implementation of (1) Enable the Secretary to provide and providing TA to States and local comprehensive transition planning and additional funds to the currently funded educational agencies (LEAs) to advance services, and using these data to guide National Secondary Transition implementation of effective transition improvement activities. Technical Assistance Center for an planning and services. additional 12-month period, from NSTTAC’s current project period is Regulatory Flexibility Act Certification December 31, 2010 through December scheduled to end on December 31, 2010. 31, 2011; and We do not believe it would be in the The Secretary certifies that the (2) Request comments on the public interest to hold new extension of project period and waiver proposed extension of project period competitions under the TA&D program do not have a significant economic and waiver. until the Department has considered impact on a substantial number of small There are no substantive differences changes being made to the Elementary entities. The only entity affected is between the notice of proposed and Secondary Education Act of 1965, NSTTAC. extension of project period and waiver as amended (ESEA), during the process Paperwork Reduction Act of 1995 and this notice of final extension of of reauthorizing that law and the project period and waiver. Department has developed a The extension of project period and Public Comment coordinated strategy for the provision of waiver do not contain any information technical assistance that is designed to collection requirements. We invited comments on the help States, LEAs, and schools proposed extension of project period effectively implement key provisions of Intergovernmental Review and waiver in the notice of proposed the ESEA and IDEA and improve This program is subject to the extension of project period and waiver. educational results for all students. We Five parties submitted comments in also have concluded that it would be requirements of Executive Order 12372 agreement with the proposal to extend contrary to the public interest to have a and the regulations in 34 CFR part 79. the grant period of the current grantee. lapse in the provision of technical One of the objectives of the Executive We did not receive any comments assistance provided under the TA&D order is to foster an intergovernmental opposing the proposed extension of program pending the reauthorization of partnership and a strengthened project period and waiver. Generally, the ESEA. For these reasons, the federalism. The Executive order relies we do not address technical and other Secretary waives the requirements in 34 on processes developed by State and minor changes, as well as suggested CFR 75.250, which prohibit project local governments for coordination and changes the law does not authorize us periods exceeding five years, and the review of proposed Federal financial to make. Moreover, we do not address requirements in 34 CFR 75.261(a) and assistance. This document provides comments that do not express views on (c), which limit the extension of a early notification of our specific plans the substance of the notice of proposed project period if the extension involves and actions for this program. extension of project period and waiver. the obligation of additional Federal Accessible Format: Individuals with Background funds, and issues a continuation award disabilities can obtain this document in in the amount of $1,100,000 to the On March 8, 2005, the Department an accessible format (e.g., braille, large University of North Carolina at print, audiotape, or computer diskette) published a notice in the Federal Charlotte (H326J050004) for an on request to the contact person listed Register (70 FR 11214), inviting additional twelve-month period. applications for new awards for fiscal Waiving these regulations and issuing under FOR FURTHER INFORMATION year (FY) 2005 under the Technical this continuation award ensure that CONTACT. Assistance and Dissemination to continued technical assistance is Electronic Access to This Document Improve Services and Results for available to assist States and LEAs with Children with Disabilities (TA&D) effective transition planning and You can view this document, as well program, authorized under section 663 services, as the Department works on as all other documents of this of the Individuals with Disabilities reauthorization of the ESEA and designs Department published in the Federal Education Act (IDEA), to support a TA&D competitions that are coordinated Register, in text or Adobe Portable Secondary Transition Technical and aligned with the Department’s Document Format (PDF) on the Internet Assistance Center. Based on that notice, technical assistance priorities. at the following site: http://www.ed.gov/ the Department made one award for a During the next fiscal year, NSTTAC news/fedregister. To use PDF you must period of 60 months to the University of will continue, update, and expand its have Adobe Acrobat Reader, which is North Carolina at Charlotte to carry out work to (1) Identify evidence-based available free at this site. the National Secondary Transition practices that provide a foundation for Technical Assistance Center (NSTTAC). States to improve transition planning Note: The official version of this document Currently, the Office of Special and services that enhance post-school is the document published in the Federal Education Programs (OSEP) funds outcomes; (2) disseminate information Register. Free Internet access to the official NSTTAC to support the improvement of to State personnel, practitioners, edition of the Federal Register and the Code transition planning, services, and researchers, parents, and students of Federal Regulations is available on GPO outcomes for youth with disabilities by regarding effective transition planning Access at: http://www.gpoaccess.gov/nara/ disseminating information and and services that improve post-school index.html. providing technical assistance (TA) on outcomes; (3) build the capacity of Dated: September 7, 2010. evidence-based practices with an States and LEAs to implement effective emphasis on building and sustaining transition planning and services that Alexa Posny, State-level infrastructures of support improve post-school outcomes; and (4) Assistant Secretary for Special Education and and building district-level assist State educational agencies with Rehabilitative Services. demonstrations of effective transition collecting data on IDEA Part B State [FR Doc. 2010–22903 Filed 9–13–10; 8:45 am] methods. NSTTAC has demonstrated Performance Plan/Annual Performance BILLING CODE 4000–01–P

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DEPARTMENT OF EDUCATION Deputy Associate Superintendent for Æ Letter dated February 12, 2010 to Exceptional Student Services Collette E. Alabama attorney James Irby, regarding Office of Special Education and Chapman, about (1) a State’s billing for how an IEP Team could ensure that Rehabilitative Services; List of indirect costs for IDEA American students with disabilities who need Correspondence Recovery and Reinvestment Act of 2009 additional reading instruction are not (ARRA) funds retained at the State level prevented from participating in AGENCY: Department of Education. and (2) adjustments to the statutory caps mandatory physical education ACTION: List of Correspondence from on State administration under the IDEA instruction. January 1, 2010 through March 31, 2010. and Title I of the Elementary and Section 615—Procedural Safeguards SUMMARY: The Secretary is publishing Secondary Education Act of 1965, as Topic Addressed: Independent the following list pursuant to section amended, that help defray the costs of Educational Evaluations 607(f) of the Individuals with data collection associated with the Disabilities Education Act (IDEA). ARRA. Æ Letter dated January 4, 2010 to Under section 607(f) of the IDEA, the Section 612—State Eligibility individuals (personally identifiable Secretary is required, on a quarterly information redacted) regarding whether basis, to publish in the Federal Register Topic Addressed: Personnel a public agency’s procedures relating to a list of correspondence from the U.S. Qualifications a parent’s right to obtain an Department of Education (Department) Æ Letter dated January 27, 2010 to independent educational evaluation at received by individuals during the New Jersey Speech-Language-Hearing public expense are consistent with the previous quarter that describes the Association School Affairs Chair Sue A. IDEA. interpretations of the Department of the Goldman, clarifying that the IDEA does Topic Addressed: Impartial Due Process IDEA or the regulations that implement not permit States to obtain a waiver of Hearing the IDEA. State-approved certification Æ Letter dated February 2, 2010 to FOR FURTHER INFORMATION CONTACT: requirements for related services Miami-Dade County Public Schools Laura Duos or Mary Louise Dirrigl. providers who currently do not meet Assistant Attorney Mary C. Lawson, Telephone: (202) 245–7468. State certification requirements but does clarifying that a local educational If you use a telecommunications permit States to use alternate agency may not bring an attorney to a device for the deaf (TDD), you can call certification routes for such personnel. resolution meeting if a parent brings an the Federal Relay Service (FRS), toll Topic Addressed: Maintenance of State advocate or other qualified free, at 1–800–877–8339. representative to the meeting, in lieu of Individuals with disabilities can Financial Support Æ an attorney. obtain a copy of this notice in an Letter dated February 12, 2010 to Æ Letter dated February 12, 2010 to accessible format (e.g., braille, large the American Association of School Alabama attorney James Irby, regarding print, audiotape, or computer diskette) Administrators Deputy Executive parent participation at resolution on request to the contact persons listed Director Bruce Hunter, clarifying that meetings. under FOR FURTHER INFORMATION State Fiscal Stabilization Funds under CONTACT. the ARRA may be used, under certain Part C—Infants and Toddlers With Disabilities SUPPLEMENTARY INFORMATION: The circumstances, to meet Part B of the following list identifies correspondence IDEA State and local maintenance of Section 636—Individualized Family from the Department issued from effort requirements. Service Plan January 1, 2010 through March 31, 2010. Section 614—Evaluations, Eligibility Æ Letter dated February 12, 2010 to Included on the list are those letters that Determinations, Individualized Florida Department of Health Early contain interpretations of the Education Programs, and Educational Steps Bureau Chief Janice M. Kane, requirements of the IDEA and its Placements clarifying the relationship of peer- implementing regulations, as well as reviewed research to the frequency and letters and other documents that the Topic Addressed: Evaluation Procedures intensity of the early intervention Department believes will assist the services to be included in an infant’s or public in understanding the Æ Letter dated January 13, 2010 to an toddler’s individualized family service requirements of the law and its individual (personally identifiable plan. regulations. The date of and topic information redacted) regarding Other Letters That Do Not Interpret Idea addressed by each letter are identified, students with high cognition who also But May Be of Interest to Readers and summary information is also require special education and related provided, as appropriate. To protect the services under the IDEA. Topic Addressed: Seclusion and privacy interests of the individual or Restraints Topic Addressed: Individualized individuals involved, personally Æ identifiable information has been Education Programs (IEPs) Letter dated January 26, 2010 to National Leadership Consortium on redacted, as appropriate. Æ Letter dated January 7, 2010 to Developmental Disabilities Part B—Assistance for Education of All Texas attorney Nona Matthews, representative Nancy R. Weiss, Children With Disabilities regarding the requirement to include in regarding the use of seclusion and a child’s IEP information on the Section 611—Authorization; Allotment; restraints and other aversive behavioral frequency, duration, and location of the interventions in schools. Use of Funds; Authorization of special education and related services Appropriations provided to the child. Electronic Access to This Document Topic Addressed: State Level Æ Letter dated January 7, 2010 to You can view this document, as well Activities educational advocate Dorothy M. as all other Department of Education Æ Letter dated January 7, 2010 to Richards, regarding the role of a public documents published in the Federal Arizona Department of Education agency representative on the IEP Team. Register, in text or Adobe Portable

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Document Format (PDF) on the Internet Department of Education, 550 12th (VI) solutions for low-incidence, high- at the following site: http://www.ed.gov/ Street, SW., Washington, DC 20202; cost requests for instructional materials news/fedregister/index.html. telephone: (202) 245–7642, fax: 202– in specialized formats. To use PDF you must have Adobe 245–7638. The purpose of the meeting is to Acrobat Reader, which is available free SUPPLEMENTARY INFORMATION: The swear in the members of the at this site. Advisory Commission on Accessible Commission, provide the members with Note: The official version of this document Instructional Materials in Postsecondary ethics and other administrative training, is the document published in the Federal Education for Students with Disabilities and elect a Chair and Vice-Chair of the Register. Free Internet access to the official (the Commission) is established under Commission. In addition, the edition of the Federal Register and the Code Section 772 of the Higher Education Commission, at the direction of the of Federal Regulations is available on GPO Opportunity Act, Public Law 110–315, Chair and Vice-Chair, will meet to Access at: http://www.gpoaccess.gov/nara/ dated August 14, 2008. The Commission discuss their plans to complete the index.html. is established to (a) conduct a study within the one-year framework (Catalog of Federal Domestic Assistance comprehensive study, which will—(I) provided by Congress. On September Number 84.027, Assistance to States for Assess the barriers and systemic issues 27, the Commission will meet in closed Education of Children With Disabilities) that may affect, and technical solutions session from 1:30 p.m. to 3 p.m. to Dated: September 7, 2010. available that may improve, the timely discuss the qualifications of members to serve as Chair and Vice-Chair. These Alexa Posny, delivery and quality of accessible discussions pertain solely to internal Assistant Secretary for Special Education and instructional materials for personnel rules and practices of an Rehabilitative Services. postsecondary students with print agency and will disclose information of disabilities, as well as the effective use [FR Doc. 2010–22882 Filed 9–13–10; 8:45 am] a personal nature where disclosure of such materials by faculty and staff; BILLING CODE 4000–01–P would constitute an unwarranted and (II) make recommendations related invasion of personal privacy. As such, to the development of a comprehensive the discussions are protected by DEPARTMENT OF EDUCATION approach to improve the opportunities exemptions 2 and 6 of section 552b(c) for postsecondary students with print of Title 5 U.S.C. This notice is appearing Advisory Commission on Accessible disabilities to access instructional Instructional Materials in in the Federal Register less than 15 days materials in specialized formats in a before the meeting due to efforts to Postsecondary Education for Students time frame comparable to the With Disabilities schedule the meeting before the end of availability of instructional materials for the fiscal year. AGENCY: U.S. Department of Education, postsecondary nondisabled students. Detailed minutes of the meeting, Office of Special Education and In making recommendations for the including summaries of the activities of Rehabilitative Services, Advisory study, the Commission shall consider— the closed sessions and related matters Commission on Accessible Instructional (I) How students with print disabilities that are informative to the public and Materials in Postsecondary Education may obtain instructional materials in consistent with the policy of section 5 for Students with Disabilities. accessible formats within a time frame U.S.C. 552b(c), will be available to the comparable to the availability of ACTION: Notice of a Partially Closed public within 14 days of the meeting. instructional materials for nondisabled Meeting. Records are kept of all Commission students; and to the maximum extent proceedings and are available for public SUMMARY: The notice sets forth the practicable, at costs comparable to the inspection at the Office of Special schedule and agenda of the meeting of costs of such materials for nondisabled Education and Rehabilitative Services, the Advisory Commission on Accessible students; (II) the feasibility and United States Department of Education, Instructional Materials in Postsecondary technical parameters of establishing 550 12th Street, SW., Washington, DC Education for Students with Disabilities. standardized electronic file formats, 20202, Monday–Friday during the hours The notice also describes the functions such as the National Instructional of 8 a.m. to 4:30 p.m. of the Commission. Notice of the Materials Accessibility Standard as meeting is required by section 10(a)(2) defined in Section 674(e)(3) of the Additional Information of the Federal Advisory Committee Act Individuals with Disabilities Education Individuals who will need and is intended to notify the public of Act, to be provided by publishers of accommodations for a disability in order its opportunity to attend. instructional materials to producers of to attend the meeting (e.g., interpreting DATES: September 27–28, 2010. materials in specialized formats, services, assistive listening devices, or institutions of higher education, and TIME: September 27, 2010: 8 a.m.–4:30 material in alternative format) should eligible students; (III) the feasibility of p.m. The Commission will meet in notify Elizabeth Shook at (202) 245– establishing a national clearinghouse, closed session between the hours of 1:30 7642, no later than September 20, 2010. repository, or file-sharing network for p.m. and 3 p.m.; September 28, 2010: 8 We will make every attempt to meet electronic files in specialized formats a.m.–4 p.m. requests for accommodations after this and files used in producing date, but cannot guarantee their ADDRESSES: The Commission will meet instructional materials in specialized availability. The meeting site is at the Office of Special Education and formats, and a list of possible entities accessible to individuals with Rehabilitative Services, United States qualified to administer such disabilities. Department of Education, Potomac clearinghouse, repository, or network; Electronic Access to this Document: Center Plaza, 10th Floor Auditorium, (IV) the feasibility of establishing You may view this document, as well as 550 12th Street, SW., Washington, DC market-based solutions involving all other documents of this Department 20202. collaborations among publishers of published in the Federal Register, in FOR FURTHER INFORMATION CONTACT: instructional materials, producers of text or Adobe Portable Document Elizabeth Shook, Program Specialist, materials in specialized formats, and Format (PDF) on the internet at the Office of Special Education and institutions of higher education; (V) following site: http://www.ed.gov/news/ Rehabilitative Services, United States solutions utilizing universal design; and fedregister/index.html. To use PDF you

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must have Adobe Acrobat Reader, DEPARTMENT OF ENERGY MATTERS TO BE CONSIDERED: Agenda. which is available free at this site. If you Note—Items listed on the agenda may have questions about using PDF, call the Federal Energy Regulatory be deleted without further notice. Commission U.S. Government Printing Office (GPO), CONTACT PERSON FOR MORE INFORMATION: toll free at 1–866–512–1800; or in the Sunshine Act Meeting Notice Kimberly D. Bose, Secretary, Telephone Washington, DC, area at 202–512–0000. (202) 502–8400. For a recorded message Dated: September 9, 2010. September 9, 2010. listing items struck from or added to the The following notice of meeting is Alexa Posny, meeting, call (202) 502–8627. published pursuant to section 3(a) of the This is a list of matters to be Assistant Secretary, Office of Special government in the Sunshine Act (Pub. considered by the Commission. It does Education and Rehabilitative Services. L. No. 94–409), 5 U.S.C. 552b: [FR Doc. 2010–22883 Filed 9–13–10; 8:45 am] not include a listing of all documents AGENCY HOLDING MEETING: Federal relevant to the items on the agenda. All BILLING CODE 4000–01–P Energy Regulatory Commission. public documents, however, may be DATE AND TIME: September 16, 2010, 10 viewed on line at the Commission’s a.m. Web site at http://www.ferc.gov using PLACE: Room 2C, 888 First Street, NE., the eLibrary link, or may be examined Washington, DC 20426. in the Commission’s Public Reference STATUS: Open. Room.

962ND—MEETING September 16, 2010, 10 a.m.

Item No. Docket No. Company

Administrative

A–1 ...... AD02–1–000 ...... Agency Administrative Matters. A–2 ...... AD02–7–000 ...... Customer Matters, Reliability, Security and Market Operations.

Electric

E–1 ...... EL10–29–000 ...... Terra-Gen Dixie Valley, LLC, TGP Dixie Development Company, LLC, and New York Canyon, LLC. EL10–36–000 ...... Green Borders Geothermal, LLC v. Terra-Gen Dixie Valley, LLC. E–2 ...... RR09–7–000 ...... North American Electric Reliability Corporation. AD10–14–000 ...... Reliability Standards Development and NERC and Regional Entity Enforcement. E–3 ...... RR09–6–001 ...... North American Electric Reliability Corporation. E–4 ...... RM10–22–000 ...... Promoting a Competitive Market for Capacity Reassignment. E–5 ...... OMITTED. E–6 ...... OMITTED. E–7 ...... RD10–5–000 ...... North American Electric Reliability Corporation. E–8 ...... RD09–5–000 ...... North American Electric Reliability Corporation. E–9 ...... ER08–858–000, ER08–858–001, ER08– PJM Interconnection, L.L.C. and New York Independent System Operator, Inc. 867–000, ER08–867–002. EL02–23–000, EL02–23–014 ...... Consolidated Edison Company of New York, Inc. v. Public Service Electric and Gas Company, PJM Interconnection, L.L.C. and New York Independent System Oper- ator, Inc. E–10 ...... ER05–1410–016, EL05–148–016, ER09– PJM Interconnection, L.L.C. 412–011. E–11 ...... ER10–1418–000 ...... Exelon Generation Company, LLC. E–12 ...... EL10–23–001, EL10–23–002 ...... Sagebrush, a California Partnership. E–13 ...... EL00–66–012 ...... Louisiana Public Service Commission and the Council of the City of New Orleans v. Entergy Corporation. E–14 ...... EL10–22–001 ...... Tres Amigas LLC. E–15 ...... ER10–396–001 ...... Tres Amigas LLC. E–16 ...... ER09–1039–001 ...... Southwest Power Pool, Inc. E–17 ...... ER09–1050–003, ER09–1192–000 ...... Southwest Power Pool, Inc.

Multi-Industry

M–1 ...... PL10–4–000 ...... Enforcement of Statutes, Regulations and Orders.

Hydro

H–1 ...... P–2210–192 ...... Appalachian Power Company. H–2 ...... P–400–054 ...... Public Service Company of Colorado. H–3 ...... P–12646–012 ...... City of Broken Bow, Oklahoma. H–4 ...... RM10–27–001 ...... Update of the Federal Energy Regulatory Commission’s Fees Schedule for Annual Charges for the Use of Government Lands.

Certificates

C–1 ...... CP10–14–000 ...... Kern River Gas Transmission Company.

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962ND—MEETING—Continued September 16, 2010, 10 a.m.

Item No. Docket No. Company

C–2 ...... CP10–255–000 ...... Texas Gas Transmission, LLC. C–3 ...... CP10–470–000 ...... El Paso Natural Gas Company. C–4 ...... CP10–136–000 ...... Empire Pipeline, Inc. C–5 ...... CP10–433–000 ...... Iroquois Gas Transmission System, L.P. C–6 ...... CP09–161–001 ...... Bison Pipeline LLC.

Kimberly D. Bose, advice and recommendations to the EPA denied. Any petition for review Secretary. Administrator on issues associated with shall be filed within 60 days from the A free webcast of this event is integrating environmental justice date this notice appears in the Federal available through http://www.ferc.gov. concerns into EPA’s programs, policies, Register, pursuant to section 307 of the Anyone with Internet access who and activities. Particular areas of focus Act. desires to view this event can do so by may include community engagement, ADDRESSES: You may review a copy of navigating to http://www.ferc.gov’s science, regulatory development, and the final order, the petition, and other Calendar of Events and locating this enforcement and compliance. supporting information at the EPA event in the Calendar. The event will Inquiries may be directed to Victoria Region 5 Office, 77 West Jackson contain a link to its webcast. The Robinson, NEJAC Designated Federal Boulevard, Chicago, Illinois 60604. If Capitol Connection provides technical Officer, U.S. EPA, 1200 Pennsylvania you wish to examine these documents, support for the free webcasts. It also Avenue, NW., (Mail Code 2201A), you should make an appointment at offers access to this event via television Washington, DC 20460. least 24 hours before visiting day. in the DC area and via phone bridge for Dated: September 8, 2010. Additionally, the final order for the a fee. If you have any questions, visit Charles Lee, Edgewater Generating Station petition is http://www.CapitolConnection.org or Director, Office of Environmental Justice, available electronically at: http:// contact Danelle Springer or David Office of Enforcement and Compliance www.epa.gov/region7/air/title5/ Reininger at 703–993–3100. Assurance. petitiondb/petitions/edgewater _ Immediately following the conclusion [FR Doc. 2010–22858 Filed 9–13–10; 8:45 am] response2009.pdf. of the Commission Meeting, a press BILLING CODE 6560–50–P FOR FURTHER INFORMATION CONTACT: briefing will be held in the Commission Pamela Blakley, Chief, Air Permits Meeting Room. Members of the public Section, Air Programs Branch, Air and may view this briefing in the designated ENVIRONMENTAL PROTECTION Radiation Division, EPA, Region 5, 77 overflow room. This statement is AGENCY West Jackson Boulevard, Chicago, intended to notify the public that the [Regional Docket Nos. V, FRL–9201–4] Illinois 60604, telephone (312) 886– press briefings that follow Commission 4447. meetings may now be viewed remotely Clean Air Act Operating Permit SUPPLEMENTARY INFORMATION: The Act at Commission headquarters, but will Program; Petition for Objection to affords EPA a 45-day period to review, not be telecast through the Capitol State Operating Permit for Alliant and object to as appropriate, operating Connection service. Energy—WPL Edgewater Generating permits proposed by state permitting [FR Doc. 2010–22942 Filed 9–10–10; 11:15 am] Station authorities. Section 505(b)(2) of the Act BILLING CODE 6717–01–P AGENCY: Environmental Protection authorizes any person to petition the Agency (EPA). EPA Administrator within 60 days after ACTION: Notice of final order on petition the expiration of the EPA review period ENVIRONMENTAL PROTECTION to object to Clean Air Act operating to object to state operating permits if AGENCY permit. EPA has not done so. A petition must be based only on objections to the [FRL–9201–5] SUMMARY: This document announces permit that were raised with reasonable National Environmental Justice that the EPA Administrator has specificity during the public comment Advisory Council; Notice of Charter responded to a petition asking EPA to period provided by the state, unless the Renewal object to a Clean Air Act (Act) operating petitioner demonstrates that it was permit issued by the Wisconsin impracticable to raise issues during the AGENCY: Environmental Protection Department of Natural Resources. comment period, or the grounds for the Agency. Specifically, the Administrator granted issues arose after this period. ACTION: Notice of Charter Renewal. in part and denied in part the petition On October 3, 2009, David Bender of submitted by David Bender of McGillivray Westerberg & Bender LLC, The Charter for the Environmental McGillivray Westerberg and Bender, submitted a petition to EPA on behalf of Protection Agency’s (EPA) National LLC, on behalf of the Sierra Club, to the Sierra Club, requesting that EPA Environmental Justice Advisory Council object to the operating permit for Alliant object to the Title V operating permit for (NEJAC) will be renewed for an Energy—Wisconsin Power and Light the Alliant Energy—WPL Edgewater additional two-year period. This is a Edgewater Generating Station. Generating Station. The petition raised committee of public interest and acts in Pursuant to section 505(b)(2) of the issues regarding: (1) The alleged failure accordance with the provisions of the Act, a petitioner may seek judicial to include maximum gross generation, Federal Advisory Committee Act review in the United States Court of heat input and fuel usage limits that (FACA), 5 U.S.C. App. 2 section 9(c). Appeals for the appropriate circuit of were contained in preconstruction The purpose of the NEJAC is to provide those portions of the petition which permit applications as enforceable

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limits in the permit; (2) the sufficiency FEDERAL RETIREMENT THRIFT Period of Employment: Operational of particulate matter (PM) and opacity INVESTMENT BOARD period from January 1, 1971 through monitoring; and (3) the alleged failure of December 31, 1972, and the residual WDNR to include in the permit plans it Sunshine Act; Notice of Meeting radioactivity period from January 1, relied upon in issuing the permit and to 1973 through October 31, 2009. TIME AND DATE: a.m. (Eastern Time) make those plans available for public FOR FURTHER INFORMATION CONTACT: September 20, 2010. notice and comment. Stuart L. Hinnefeld, Interim Director, PLACE: 4th Floor Conference Room, Division of Compensation Analysis and On August 18, 2010, the 1250 H Street, NW., Washington, DC Support, National Institute for Administrator issued an order granting 20005. Occupational Safety and Health in part and denying in part the petition. STATUS: All parts will be open to the (NIOSH), 4676 Columbia Parkway, MS The order explains the reasons behind public. C–46, Cincinnati, OH 45226, Telephone EPA’s conclusions. MATTERS TO BE CONSIDERED: 877–222–7570. Information requests can Dated: September 1, 2010. 1. Approval of the minutes of the also be submitted by e-mail to Susan Hedman, August 16, 2010 Board Member Meeting [email protected]. Regional Administrator, Region 5. 2. Thrift Savings Plan Activity Report John Howard, [FR Doc. 2010–22857 Filed 9–13–10; 8:45 am] by the Executive Director Director, National Institute for Occupational a. Monthly Participant Activity Report BILLING CODE 6560–50–P Safety and Health. b. Monthly Investment Performance [FR Doc. 2010–22846 Filed 9–13–10; 8:45 am] Review BILLING CODE 4163–19–P c. Legislative Report 3. Annual Budget Reports FEDERAL COMMUNICATIONS a. Fiscal Year 2010 Expenditures COMMISSION DEPARTMENT OF HEALTH AND b. Fiscal Year 2011 Budget HUMAN SERVICES c. Fiscal Year 2012 Estimates [Report No. 2914] CONTACT PERSON FOR MORE INFORMATION: Administration for Children and Thomas J. Trabucco, Director, Office of Families PETITION FOR RECONSIDERATION External Affairs, (202) 942–1640. OF ACTION IN RULEMAKING Submission for OMB Review; PROCEEDING Dated: September 10, 2010. Comment Request Thomas K. Emswiler, September 2, 2010. Secretary, Federal Retirement Thrift Title: Case Plan Requirement, Title Investment Board. IV–E of the Social Security Act. SUMMARY: A Petition for Reconsideration [FR Doc. 2010–23003 Filed 9–10–10; 4:15 pm] OMB No.: 0980–0140. has been filed in the Commission’s Description: Under section 471(a)(16) Rulemaking proceeding listed in this BILLING CODE 6760–01–P of title IV–B of the Social Security Act Public Notice and published pursuant to (the Act), to be eligible for payments, 47 CFR Section 1.429(e). The full text of states must have an approved title IV– this document is available for viewing DEPARTMENT OF HEALTH AND B plan that provides for the and copying in Room CY–B402, 445 HUMAN SERVICES development of a case plan for each 12th Street, S.W., Washington, D.C. or Decision To Evaluate a Petition To child for whom the State receives foster may be purchased from the Designate a Class of Employees From care maintenance payments and that provides a case review system that Commission’s copy contractor, Best the Wah Chang Facility, Albany, OR, meets the requirements in section 475(5) Copy and Printing, Inc. (BCPI) (1–800– To Be Included in the Special and 475(6) of the Act. The Fostering 378–3160). Oppositions to this petition Exposure Cohort must be filed by September 29, 2010. Connections to Success and Increasing See Section 1.4(b)(1) of the AGENCY: National Institute for Adoptions Act of 2008 (Pub. L. 110– Commission’s rules (47 CFR 1.4(b)(1)). Occupational Safety and Health 351) added a new section 479B to the Act providing authority at 479B(b) for Replies to an opposition must be filed (NIOSH), Department of Health and an Indian Tribe, Tribal organization or within 10 days after the time for filing Human Services (HHS). Tribal consortia (hereafter ‘‘Tribe’’) to oppositions have expired. ACTION: Notice. elect to operate a title IV–F program Subject: In the Matter of Amendment SUMMARY: HHS gives notice as required with an approved title IV–E plan. Tribes of Section 73.202(b), Table of by 42 CFR 83.12(e) of a decision to are to operate a program in the same Allotments, FM Broadcast Stations, evaluate a petition to designate a class manner as States and must provide for (Culebra, Puerto Rico, Charlotte Amalie, of employees from the Wah Chang a case plan for each child and for a case and Christiansted, Virgin Islands (MM facility, Albany, Oregon, to be included review system. The case review system Docket No. 08–243) in the Special Exposure Cohort under assures that each child has a case plan NUMBER OF PETITIONS FILED: [1] the Energy Employees Occupational designed to achieve placement in a safe Illness Compensation Program Act of setting that is the least restrictive (most Federal Communications Commission. 2000. The initial proposed definition for family-like) setting available and in Marlene H. Dortch, the class being evaluated, subject to close proximity to the child’s parental Secretary, Office of the Secretary, Office of revision as warranted by the evaluation, home, consistent with the best interest Managing Director. is as follows: and special needs of the child. Through Facility: Wah Chang. these requirements, States and Tribes [FR Doc. 2010–22870 Filed 9–13–10; 8:45 am] Location: Albany, Oregon. also comply, in part, with title IV–B BILLING CODE 6712–01–S Job Titles and/or Job Duties: All section 422(b) of the Act, which assures employees who worked in any certain protections for children in foster buildings. care.

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The case plan is a written document addressed in the case plan. The Case plan information is recorded in a that provides a narrative description of Administration for Children and format developed and maintained by the the child-specific program of care. Families (ACF) does not specify a State or Tribal child welfare agency. Federal regulations at 45 CFR 1356.21(g) recordkeeping format for the case plan Respondents: State and Tribe title IV– and section 475(1) of the Act delineate nor does ACF require submission of the B and title IV–E agencies. the specific information that should be document to the Federal government.

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

Case Plan ...... 603,453 1 4.79 2,891,169

Estimated Total Annual Burden Administration for Children and The following request has been Hours: 2,891,169. Families. submitted to the Office of Management Additional Information: Copies of the Dated: September 7, 2010. and Budget for review under the proposed collection may be obtained by Robert Sargis, Paperwork Reduction Act of 1995: writing to the Administration for Reports Clearance Officer. HRSA Telehealth Outcome Measures Children and Families, Office of [FR Doc. 2010–22788 Filed 9–13–10; 8:45 am] (OMB No. 0915–0311)—Extension Administration, Office of Information BILLING CODE 4184–01–M In order to help carry out its mission, Services, 370 L’Enfant Promenade, SW., the Office for the Advancement of Washington, DC 20447, Attn: ACF Telehealth (OAT) created a set of Reports Clearance Officer. All requests DEPARTMENT OF HEALTH AND performance measures that grantees can should be identified by the title of the HUMAN SERVICES use to evaluate the effectiveness of their information collection. E-mail address: services programs and monitor their [email protected]. Health Resources and Services Administration progress through the use of performance OMB Comment reporting data. As required by the Agency Information Collection Government Performance and Review OMB is required to make a decision Activities: Submission for OMB Act of 1993 (GPRA), all Federal agencies concerning the collection of information Review; Comment Request must develop strategic plans describing between 30 and 60 days after their overall goal and objectives. OAT publication of this document in the Periodically, the Health Resources has worked with its grantees to develop Federal Register. Therefore, a comment and Services Administration (HRSA) performance measures to be used to is best assured of having its full effect publishes abstracts of information evaluate and monitor the progress of the if OMB receives it within 30 days of collection requests under review by the grantees. Grantee goals are to: improve publication. Written comments and Office of Management and Budget access to needed services; reduce rural recommendations for the proposed (OMB), in compliance with the practitioner isolation; improve health information collection should be sent Paperwork Reduction Act of 1995 (44 system productivity and efficiency; and directly to the following: Office of U.S.C. Chapter 35). To request a copy of improve patient outcomes. In each of Management and Budget, Paperwork the clearance requests submitted to these categories, specific indicators Reduction Project, Fax: 202–395–7285, OMB for review, e-mail were designed to be reported through a E-mail: [email protected] or call the HRSA performance monitoring Web site. [email protected], Reports Clearance Office on (301) 443– The estimates of burden are as Attn: Desk Officer for the 1129. follows:

Average num- Number of ber of re- Total Hours per Total burden Form respondents sponses per responses response hours respondent

Performance Measurement Tool ...... 667 2 1,334 7 9,338

Written comments and Dated: September 7, 2010. DEPARTMENT OF HEALTH AND recommendations concerning the Sahira Rafiullah, HUMAN SERVICES proposed information collection should Director, Division of Policy and Information be sent within 30 days of this notice to Coordination. Food and Drug Administration the desk officer for HRSA, either by e- [FR Doc. 2010–22797 Filed 9–13–10; 8:45 am] [Docket No. FDA–2010–N–0466] _ mail to OIRA [email protected] BILLING CODE 4165–15–P or by fax to 202–395–6974. Please direct Cooperative Agreement to Support the all correspondence to the ‘‘attention of Foodborne Disease Burden the desk officer for HRSA.’’ Epidemiology Reference Group of the World Health Organization (U18) AGENCY: Food and Drug Administration, HHS. ACTION: Notice.

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SUMMARY: The Food and Drug • a Core (or Steering) Group to (2) identify advisers, and prepare Administration (FDA) is announcing its coordinate and oversee the scientific written working papers summarizing intention to receive and consider a work; the data on foodborne contaminants single source application for the award • four different Thematic Task Forces under consideration; and (3) prepare of a cooperative agreement in fiscal year advancing the work in specific areas: written working papers and technical 2010 (FY10) to the World Health Infectious diseases, chemicals and documents for the FAO/WHO Expert Organization (WHO). One of the toxins, source attribution, and country Consultations related to contaminants primary goals of the WHO is to provide burden of disease protocols; and (microbiological and chemical) in food. for timely collaboration on • external resource advisers who are multinational cooperative activities. invited on an ad hoc basis to provide C. Eligibility Information DATES: Important dates are as follows: specific expertise. FERG is charged with the following Competition is limited to WHO 1. The application due date is because it has unique expertise and September 16, 2010. tasks: • assemble, appraise, and report on capacity found nowhere else. As part of 2. The anticipated start date is the implementation of the WHO Global September 2010. the current, the projected, and the averted burden of foodborne disease Strategy for Food Safety, WHO launched 3. The opening date is September 16, the Initiative to Estimate the Global 2010. estimates; • Burden of Foodborne Diseases from all 4. The expiration date is September conduct epidemiological reviews major causes (of microbiological, 30, 2010. for mortality, morbidity, and disability in each of the major foodborne diseases; parasitic, and chemical origin) and in FOR FURTHER INFORMATION CONTACT: • provide models for the estimation 2007 established FERG to estimate the Center Contact: Salvatore Evola, Center of foodborne disease burden where data global health burden of foodborne for Food Safety and Applied Nutrition are lacking; disease (and to express the estimate in (HFS–300), 5100 Paint Branch Pkwy., • develop cause attribution models to DALYs) (http://www.who.int/ College Park, MD 20740, 301–436–2164, estimate the proportion of diseases that foodsafety/foodborne_disease/ferg). e-mail: [email protected]. are foodborne; and, most importantly, (FDA has verified the Web site address, Grants Management Contact: • use the FERG models to develop but FDA is not responsible for any Kimberly Pendleton, Division of user-friendly tools for burden of subsequent changes to the Web site after Acquisition Support and Grants (HFA– foodborne disease studies at country this document publishes in the Federal 500), Food and Drug Administration, level. Register.) FERG is a multisectoral and 5630 Fishers Lane, rm. 2104, Rockville, In addition, FERG aims to estimate multidisciplinary group of global MD 20857, 301–827–9363, FAX: 301– the global human health burden experts in foodborne diseases and 827–7101, e-mail: (expressed in Disability-Adjusted Life representatives from numerous UN and [email protected]. Years (DALYs)) of foodborne disease. other international agencies as well as For more information on this funding FERG will initially focus on microbial, National bodies (including the U.S. opportunity announcement (FOA) and parasitic, zoonotic, and chemical agencies FDA, United States Department to obtain detailed requirements, please contamination of food with an emphasis of Agriculture and Centers for Disease refer to the full FOA located at http:// on diseases whose incidence and Control and Prevention, among others). www.fda.gov/Food/NewsEvents/ severity is thought to be high, and on ucm176500.htm. pathogens and chemicals that are most FERG operates through several Task Forces in the area of parasitic diseases, SUPPLEMENTARY INFORMATION: likely to contaminate food and which have a high degree of preventability. enteric diseases, chemicals and toxins, I. Funding Opportunity Description FERG is supported by the WHO and source attribution (the latter aims to provide evidence that links burden of Catalog of Federal Domestic Assistance Secretariat, comprising nine WHO disease to specific food commodities, Number: 93.103 Departments as well as international organizations (such as FAO, United where possible). While FERG is A. Background Nations Environment Programme etc.) reviewing all existing scientific This funding opportunity is a single with an interest in foodborne disease evidence, including surveillance data, source application for the award of a burden estimation. the full picture of the global health cooperative agreement to the WHO to This agreement will strengthen and burden of foodborne disease can only be support the Initiative to Estimate the allow WHO to continue its work in established if national level estimates of Global Burden of Foodborne Diseases— important international risk assessment the health burden of foodborne disease Foodborne Disease Burden and public health efforts. This are collected. FERG therefore launched Epidemiology Reference Group (FERG). agreement will also assist FDA in future the Country Studies Task Force which This cooperative agreement ensures assessments of the potential hazards, aims to strengthen the capacity of FDA’s participation and leadership in risks, and public health impact of countries to undertake national burden important international risk assessment foodborne disease. WHO is an umbrella of foodborne disease assessments, and and public health efforts involving organization that provides for timely provides countries with tools with microbiological and chemical hazards. international collaboration on which to conduct these studies and Competition is limited to WHO because multinational cooperative activities. The continue to monitor disease burden in it is the parent organization of FERG. evaluations that are produced by WHO the long-term. A further strength of such expert groups are based on sound data lies in its ability to assist countries B. Research Objectives science that contributes to improved to detect important food safety threats The WHO’s FERG comprises over 30 public health and food safety early and to make and apply food safety internationally renowned experts in a worldwide. The following activities are policies and interventions based on broad range of disciplines relevant to to be supported by this cooperative sound scientific evidence pertinent to global foodborne disease epidemiology. agreement: (1) Schedule, plan, and that country. WHO aims to conduct FERG consists of the following conduct appropriate work groups, such studies in all six regions over the groups: consultations, and committee meetings; coming years.

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II. Award Information/Funds Available DEPARTMENT OF HEALTH AND certification, a laboratory must HUMAN SERVICES participate in a quarterly performance A. Award Amount testing program plus undergo periodic, The estimated amount of support in Substance Abuse and Mental Health on-site inspections. Services Administration FY10 will be up to $100,000 total costs Laboratories which claim to be in the applicant stage of certification are not to (direct plus indirect costs), with the Current List of Laboratories Which possibility of 2 additional years of be considered as meeting the minimum Meet Minimum Standards To Engage in requirements described in the HHS support for a total (over 3 years) of up Urine Drug Testing for Federal Mandatory Guidelines. A laboratory to $300,000, subject to the availability of Agencies must have its letter of certification from funds. AGENCY: Substance Abuse and Mental HHS/SAMHSA (formerly: HHS/NIDA) B. Length of Support Health Services Administration, HHS. which attests that it has met minimum ACTION: Notice. standards. The award will provide 1 year of In accordance with Subpart C of the support, with the possibility of 2 SUMMARY: The Department of Health and Mandatory Guidelines dated April 13, additional years of support, contingent Human Services (HHS) notifies Federal 2004 (69 FR 19644), the following upon satisfactory performance in the agencies of the laboratories currently laboratories meet the minimum achievement of project and program certified to meet the standards of standards to conduct drug and specimen reporting objectives during the Subpart C of the Mandatory Guidelines validity tests on urine specimens: preceding year and the availability of for Federal Workplace Drug Testing ACL Laboratories, 8901 W. Lincoln Federal fiscal year appropriations. Programs (Mandatory Guidelines). The Ave., West Allis, WI 53227, 414–328– Mandatory Guidelines were first 7840/800–877–7016 (Formerly: III. Paper Application, Registration, published in the Federal Register on Bayshore Clinical Laboratory). and Submission Information April 11, 1988 (53 FR 11970), and ACM Medical Laboratory, Inc., 160 subsequently revised in the Federal To submit a paper application in Elmgrove Park, Rochester, NY 14624, Register on June 9, 1994 (59 FR 29908), response to this FOA, applicants should 585–429–2264. on September 30, 1997 (62 FR 51118), first review the full announcement Advanced Toxicology Network, 3560 and on April 13, 2004 (69 FR 19644). Air Center Cove, Suite 101, Memphis, located at http://www.fda.gov. Persons A notice listing all currently certified interested in applying for a grant may TN 38118, 901–794–5770/888–290– laboratories is published in the Federal 1150. obtain an application at http:// Register during the first week of each Aegis Analytical Laboratories, 345 Hill grants.nih.gov/grants/forms.htm. (FDA month. If any laboratory’s certification Ave., Nashville, TN 37210, 615–255– has verified the Web site address, but is suspended or revoked, the laboratory 2400 (Formerly: Aegis Sciences FDA is not responsible for any will be omitted from subsequent lists Corporation, Aegis Analytical subsequent changes to the Web site after until such time as it is restored to full Laboratories, Inc.). this document publishes in the Federal certification under the Mandatory Alere Toxicology Services, 1111 Newton Register.) For all paper application Guidelines. St., Gretna, LA 70053, 504–361–8989/ submissions, the following steps are If any laboratory has withdrawn from 800–433–3823 (Formerly: Kroll required: the HHS National Laboratory Laboratory Specialists, Inc., Certification Program (NLCP) during the • Step 1: Obtain a Dun and Bradstreet Laboratory Specialists, Inc.). past month, it will be listed at the end, (DUNS) Number Alere Toxicology Services, 450 and will be omitted from the monthly Southlake Blvd., Richmond, VA • Step 2: Register With Central listing thereafter. 23236, 804–378–9130 (Formerly: Contractor Registration This notice is also available on the Kroll Laboratory Specialists, Inc., • Step 3: Register With Electronic Internet at http:// Scientific Testing Laboratories, Inc.; Research Administration (eRA) www.workplace.samhsa.gov and http:// Kroll Scientific Testing Laboratories, Commons www.drugfreeworkplace.gov. Inc.). Steps 1 and 2, in detail, can be found FOR FURTHER INFORMATION CONTACT: Mrs. Baptist Medical Center-Toxicology at http://www07.grants.gov/applicants/ Giselle Hersh, Division of Workplace Laboratory, 11401 I–30, Little Rock, organization_registration.jsp. Step 3, in Programs, SAMHSA/CSAP, Room AR 72209–7056, 501–202–2783 2–1042, One Choke Cherry Road, detail, can be found at https:// (Formerly: Forensic Toxicology Rockville, Maryland 20857; 240–276– commons.era.nih.gov/commons/ Laboratory Baptist Medical Center). 2600 (voice), 240–276–2610 (fax). registration/registrationInstructions.jsp. Clinical Reference Lab, 8433 Quivira SUPPLEMENTARY INFORMATION: The Road, Lenexa, KS 66215–2802, 800– After you have followed these steps, Mandatory Guidelines were developed 445–6917. submit paper applications to: Kimberly in accordance with Executive Order Doctors Laboratory, Inc., 2906 Julia Pendleton, Division of Acquisition 12564 and section 503 of Public Law Drive, Valdosta, GA 31602, 229–671– Support and Grants (HFA–500), Food 100–71. Subpart C of the Mandatory 2281, DrugScan, Inc., P.O. Box 2969, and Drug Administration, 5630 Fishers Guidelines, ‘‘Certification of 1119 Mearns Road, Warminster, PA Lane, rm. 2104, Rockville, MD 20857, Laboratories Engaged in Urine Drug 18974, 215–674–9310. 301–827–9363, FAX: 301–827–7101, e- Testing for Federal Agencies,’’ sets strict DynaLIFE Dx *, 10150–102 St., Suite mail: [email protected]. standards that laboratories must meet in 200, Edmonton, Alberta, Canada T5J Dated: September 9, 2010. order to conduct drug and specimen 5E2, 780–451–3702/800–661–9876 Leslie Kux, validity tests on urine specimens for (Formerly: Dynacare Kasper Medical Federal agencies. To become certified, Laboratories). Acting Assistant Commissioner for Policy. an applicant laboratory must undergo ElSohly Laboratories, Inc., 5 Industrial [FR Doc. 2010–22863 Filed 9–13–10; 8:45 am] three rounds of performance testing plus Park Drive, Oxford, MS 38655, 662– BILLING CODE 4160–01–S an on-site inspection. To maintain that 236–2609.

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Gamma-Dynacare Medical Hospital Airport Toxicology the HHS’ NLCP contractor continuing to Laboratories*, A Division of the Laboratory). have an active role in the performance Gamma-Dynacare Laboratory Pathology Associates Medical testing and laboratory inspection Partnership, 245 Pall Mall Street, Laboratories, 110 West Cliff Dr., processes. Other Canadian laboratories London, ONT, Canada N6A 1P4, 519– Spokane, WA 99204, 509–755–8991/ wishing to be considered for the NLCP 679–1630. 800–541–7891x7. may apply directly to the NLCP Laboratory Corporation of America Phamatech, Inc., 10151 Barnes Canyon contractor just as U.S. laboratories do. Holdings, 7207 N. Gessner Road, Road, San Diego, CA 92121, 858–643– Upon finding a Canadian laboratory to Houston, TX 77040, 713–856–8288/ 5555. be qualified, HHS will recommend that 800–800–2387. Quest Diagnostics Incorporated, 1777 DOT certify the laboratory (Federal Laboratory Corporation of America Montreal Circle, Tucker, GA 30084, Register, July 16, 1996) as meeting the Holdings, 69 First Ave., Raritan, NJ 800–729–6432 (Formerly: SmithKline minimum standards of the Mandatory 08869, 908–526–2400/800–437–4986 Beecham Clinical Laboratories; Guidelines published in the Federal (Formerly: Roche Biomedical SmithKline Bio-Science Laboratories). Register on April 13, 2004 (69 FR Laboratories, Inc.). Quest Diagnostics Incorporated, 400 19644). After receiving DOT Laboratory Corporation of America Egypt Road, Norristown, PA 19403, certification, the laboratory will be Holdings, 1904 Alexander Drive, 610–631–4600/877–642–2216 included in the monthly list of HHS- Research Triangle Park, NC 27709, (Formerly: SmithKline Beecham certified laboratories and participate in 919–572–6900/800–833–3984 Clinical Laboratories; SmithKline Bio- the NLCP certification maintenance (Formerly: LabCorp Occupational Science Laboratories). program. Testing Services, Inc., CompuChem Quest Diagnostics Incorporated, 8401 Fallbrook Ave., West Hills, CA 91304, Dated: September 8, 2010. Laboratories, Inc.; CompuChem Elaine Parry, Laboratories, Inc., A Subsidiary of 800–877–2520 (Formerly: SmithKline Beecham Clinical Laboratories). Director, Office of Management, Technology, Roche Biomedical Laboratory; Roche and Operations, SAMHSA. CompuChem Laboratories, Inc., A S.E.D. Medical Laboratories, 5601 Office [FR Doc. 2010–22818 Filed 9–13–10; 8:45 am] Member of the Roche Group). Blvd., Albuquerque, NM 87109, 505– 727–6300/800–999–5227. BILLING CODE 4160–20–P Laboratory Corporation of America South Bend Medical Foundation, Inc., Holdings, 1120 Main Street, 530 N. Lafayette Blvd., South Bend, Southaven, MS 38671, 866–827–8042/ IN 46601, 574–234–4176 x1276. DEPARTMENT OF HEALTH AND 800–233–6339 (Formerly: LabCorp Southwest Laboratories, 4625 E. Cotton HUMAN SERVICES Occupational Testing Services, Inc.; Center Boulevard, Suite 177, Phoenix, MedExpress/National Laboratory AZ 85040, 602–438–8507/800–279– Food and Drug Administration Center). 0027. [Docket No. FDA–2010–P–0157] LabOne, Inc. d/b/a Quest Diagnostics, St. Anthony Hospital Toxicology 10101 Renner Blvd., Lenexa, KS Laboratory, 1000 N. Lee St., Determination That VESANOID 66219, 913–888–3927/800–873–8845 Oklahoma City, OK 73101, 405–272– (Tretinoin) Capsules, 10 Milligrams, (Formerly: Quest Diagnostics 7052. Were Not Withdrawn From Sale for Incorporated; LabOne, Inc.; Center for STERLING Reference Laboratories, 2617 Reasons of Safety or Effectiveness Laboratory Services, a Division of East L Street, Tacoma, Washington LabOne, Inc.,). 98421, 800–442–0438. AGENCY: Food and Drug Administration, Maxxam Analytics*, 6740 Campobello Toxicology & Drug Monitoring HHS. Road, Mississauga, ON, Canada L5N Laboratory, University of Missouri ACTION: Notice. 2L8, 905–817–5700 (Formerly: Hospital & Clinics, 301 Business Loop SUMMARY: The Food and Drug Maxxam Analytics Inc., NOVAMANN 70 West, Suite 208, Columbia, MO Administration (FDA) has determined (Ontario), Inc.). 65203, 573–882–1273. MedTox Laboratories, Inc., 402 W. Toxicology Testing Service, Inc., 5426 that VESANOID (tretinoin) Capsules, 10 County Road D, St. Paul, MN 55112, N.W. 79th Ave., Miami, FL 33166, milligrams (mg), were not withdrawn 651–636–7466/800–832–3244. 305–593–2260. from sale for reasons of safety or MetroLab-Legacy Laboratory Services, U.S. Army Forensic Toxicology Drug effectiveness. This determination means 1225 NE 2nd Ave., Portland, OR Testing Laboratory, 2490 Wilson St., that FDA will not begin procedures to 97232, 503–413–5295/800–950–5295. Fort George G. Meade, MD 20755– withdraw approval of the abbreviated Minneapolis Veterans Affairs Medical 5235, 301–677–7085. new drug application (ANDA) that Center, Forensic Toxicology *The Standards Council of Canada refers to this drug product, and it will Laboratory, 1 Veterans Drive, (SCC) voted to end its Laboratory allow FDA to continue to approve Minneapolis, MN 55417, 612–725– Accreditation Program for Substance ANDAs that refer to the product as long 2088. Abuse (LAPSA) effective May 12, 1998. as they meet relevant legal and National Toxicology Laboratories, Inc., Laboratories certified through that regulatory requirements. 1100 California Ave., Bakersfield, CA program were accredited to conduct FOR FURTHER INFORMATION CONTACT: 93304, 661–322–4250/800–350–3515. forensic urine drug testing as required Molly Flannery, Center for Drug One Source Toxicology Laboratory, Inc., by U.S. Department of Transportation Evaluation and Research, Food and 1213 Genoa-Red Bluff, Pasadena, TX (DOT) regulations. As of that date, the Drug Administration, 10903 New 77504, 888–747–3774 (Formerly: certification of those accredited Hampshire Ave., Bldg. 51, rm. 6237, University of Texas Medical Branch, Canadian laboratories will continue Silver Spring, MD 20993–0002, 301– Clinical Chemistry Division; UTMB under DOT authority. The responsibility 796–3543. Pathology-Toxicology Laboratory). for conducting quarterly performance SUPPLEMENTARY INFORMATION: In 1984, Pacific Toxicology Laboratories, 9348 testing plus periodic on-site inspections Congress enacted the Drug Price DeSoto Ave., Chatsworth, CA 91311, of those LAPSA-accredited laboratories Competition and Patent Term 800–328–6942 (Formerly: Centinela was transferred to the U.S. HHS, with Restoration Act of 1984 (Public Law 98–

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417) (the 1984 amendments), which Product List’’ section of the Orange DEPARTMENT OF HEALTH AND authorized the approval of duplicate Book. There is one approved ANDA for HUMAN SERVICES versions of drug products approved tretinoin capsules, 10 mg (ANDA No. under an ANDA procedure. ANDA 77–684); this drug product is listed in Food and Drug Administration applicants must, with certain the Orange Book and, following the [Docket No. FDA–2010–D–0462] exceptions, show that the drug for discontinuation of VESANOID, was which they are seeking approval designated as the reference listed drug Draft Guidance for Industry on Chronic contains the same active ingredient in to which new ANDAs should refer. Hepatitis C Virus Infection: Developing the same strength and dosage form as Direct-Acting Antiviral Agents for the ‘‘listed drug,’’ which is a version of Rakoczy Molino Mazzochi Siwik LLP Treatment; Availability the drug that was previously approved. submitted a citizen petition dated ANDA applicants do not have to repeat March 17, 2010 (Docket No. FDA–2010– AGENCY: Food and Drug Administration, the extensive clinical testing otherwise P–0157), under 21 CFR 10.30, HHS. necessary to gain approval of a new requesting that the agency determine ACTION: Notice. drug application (NDA). The only whether VESANOID (tretinoin) SUMMARY: The Food and Drug clinical data required in an ANDA are Capsules, 10 mg, were withdrawn from Administration (FDA) is announcing the data to show that the drug that is the sale for reasons of safety or availability of a draft guidance for subject of the ANDA is bioequivalent to effectiveness. industry entitled ‘‘Chronic Hepatitis C the listed drug. After considering the citizen petition Virus Infection: Developing Direct- The 1984 amendments include what Acting Antiviral Agents for Treatment.’’ is now section 505(j)(7) of the Federal and reviewing agency records, FDA has The purpose of this guidance is to assist Food, Drug, and Cosmetic Act (21 U.S.C. determined under § 314.161 that sponsors in all phases of development 355(j)(7)), which requires FDA to VESANOID (tretinoin) Capsules, 10 mg, of direct-acting antiviral agents (DAAs), publish a list of all approved drugs. were not withdrawn for reasons of defined as agents that interfere with FDA publishes this list as part of the safety or effectiveness. The petitioner specific steps in the hepatitis C virus ‘‘Approved Drug Products With has identified no data or other (HCV) replication cycle. The guidance Therapeutic Equivalence Evaluations,’’ information suggesting that VESANOID outlines the types of nonclinical studies which is known generally as the (tretinoin) Capsules, 10 mg, were and clinical trials recommended ‘‘Orange Book.’’ Under FDA regulations, withdrawn for reasons of safety or throughout the drug development drugs are removed from the list if the effectiveness. We have carefully process to support approval of agency withdraws or suspends approval reviewed our files for records treatments for chronic hepatitis C of the drug’s NDA or ANDA for reasons concerning the withdrawal of (CHC), including in patients with of safety or effectiveness or if FDA VESANOID (tretinoin) Capsules, 10 mg, compensated and decompensated determines that the listed drug was from sale. We have also independently cirrhosis and those co-infected with withdrawn from sale for reasons of evaluated relevant literature and data human immunodeficiency virus (HIV). safety or effectiveness (21 CFR 314.162). for possible postmarketing adverse The guidance also addresses pre- Under § 314.161(a)(1) (21 CFR events and have found no information approval access in the form of treatment 314.161(a)(1)), the agency must that would indicate that this product investigational new drug applications determine whether a listed drug was was withdrawn from sale for reasons of (INDs) and intermediate-sized safety withdrawn from sale for reasons of safety or effectiveness. protocols. safety or effectiveness before an ANDA that refers to that listed drug may be Accordingly, the agency will continue DATES: Although you can comment on approved. FDA may not approve an to list VESANOID (tretinoin) Capsules, any guidance at any time (see 21 CFR ANDA that does not refer to a listed 10 mg, in the ‘‘Discontinued Drug 10.115(g)(5)), to ensure that the agency drug. Product List’’ section of the Orange considers your comment on this draft VESANOID (tretinoin) Capsules, 10 Book. The ‘‘Discontinued Drug Product guidance before it begins work on the mg, are the subject of NDA 20–438, held List’’ delineates, among other items, final version of the guidance, submit by Hoffman-La Roche Inc. (Roche), and drug products that have been either electronic or written comments initially approved on November 22, discontinued from marketing for reasons on the draft guidance by November 15, 1995. VESANOID is indicated for the other than safety or effectiveness. FDA 2010. ‘‘induction of remission in patients with will not begin procedures to withdraw ADDRESSES: Submit written requests for acute promyelocytic leukemia (APL), approval of the approved ANDA that single copies of the draft guidance to the French-American-British (FAB) refers to VESANOID. Additional ANDAs Division of Drug Information, Center for classification M3 (including the M3 Drug Evaluation and Research, Food for tretinoin capsules, 10 mg, may also variant), characterized by the presence and Drug Administration, 10903 New be approved by the agency as long as of the t(15;17) translocation and/or the Hampshire Ave., Bldg. 51, rm. 2201, presence of the PML/RARa they meet all other legal and regulatory Silver Spring, MD 20993–0002. Send [promyelocytic leukemia/retinoic acid requirements for the approval of one self-addressed adhesive label to receptor alpha] gene who are refractory ANDAs. If FDA determines that labeling assist that office in processing your to, or who have relapsed from, for this drug product should be revised requests. See the SUPPLEMENTARY anthracycline chemotherapy, or for to meet current standards, the agency INFORMATION section for electronic whom anthracycline-based will advise ANDA applicants to submit access to the draft guidance document. chemotherapy is contraindicated’’ such labeling. Submit electronic comments on the (VESANOID labeling). Dated: September 8, 2010. draft guidance to http:// In a letter dated December 2, 2009, www.regulations.gov. Submit written Leslie Kux, Roche notified FDA that VESANOID comments to the Division of Dockets (tretinoin) Capsules, 10 mg, were being Acting Assistant Commissioner for Policy. Management (HFA–305), Food and Drug discontinued, and FDA moved the drug [FR Doc. 2010–22807 Filed 9–13–10; 8:45 am] Administration, 5630 Fishers Lane, rm. product to the ‘‘Discontinued Drug BILLING CODE 4160–01–S 1061, Rockville, MD 20852.

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FOR FURTHER INFORMATION CONTACT: Committees’’ have been approved under FOR FURTHER INFORMATION CONTACT: Jeffrey Murray, Center for Drug OMB control number 0910–0581. Isabel W. Pocurull, Center for Veterinary Evaluation and Research, Food and III. Comments Medicine, Food and Drug Drug Administration, 10903 New Administration, 7519 Standish Pl., Hampshire Ave., Bldg. 22, rm. 6360, Interested persons may submit to the Rockville, MD 20855, 240–453–6853, Silver Spring, MD 20993–0002, 301– Division of Dockets Management (see email: [email protected]. 796–1500. ADDRESSES) either electronic or written comments regarding this document. It is SUPPLEMENTARY INFORMATION: Under the SUPPLEMENTARY INFORMATION: only necessary to send one set of Federal Food, Drug, and Cosmetic Act I. Background comments. It is no longer necessary to (section 409(b)(5) (21 U.S.C. 348(b)(5))), send two copies of mailed comments. FDA is announcing the availability of notice is given that a food additive Identify comments with the docket a draft guidance for industry entitled petition (FAP 2268) has been filed by number found in brackets in the ‘‘Chronic Hepatitis C Virus Infection: North American Bioproducts Corp., heading of this document. Received Developing Direct-Acting Antiviral Corporate Support Center, 1815 Satellite comments may be seen in the Division Agents for Treatment.’’ This draft Blvd., Bldg. 200, Duluth, GA 30097. The of Dockets Management between 9 a.m. guidance addresses nonclinical petition proposes to amend the food and 4 p.m., Monday through Friday. development, early phases of clinical additive regulations in part 573 Food development, phase 3 protocol designs, IV. Electronic Access Additives Permitted in Feed and and endpoints for the treatment of CHC, Persons with access to the Internet Drinking Water of Animals (21 CFR part including in patients who are treatment may obtain the document at either 573) to provide for the safe use of naı¨ve or experienced, patients without http://www.fda.gov/Drugs/Guidance penicillin G procaine as an cirrhosis, patients with compensated ComplianceRegulatoryInformation/ antimicrobial processing aid in fuel- and decompensated cirrhosis, and Guidances/default.htm or http:// ethanol fermentations with respect to its patients co-infected with HCV and HIV. www.regulations.gov. consequent presence in by-product Important issues addressed in this Dated: September 8, 2010. distiller grains used as an animal feed guidance include: Drug development or feed ingredient. methods to reduce the emergence of Leslie Kux, drug resistance, types of trial designs to Acting Assistant Commissioner for Policy. The potential environmental impact assess optimal dose and treatment [FR Doc. 2010–22806 Filed 9–13–10; 8:45 am] of this action is being reviewed. To duration, combination therapy with BILLING CODE 4160–01–S encourage public participation multiple investigational drugs, consistent with regulations issued under recommendations on development of the National Environmental Policy Act drugs to meet unmet medical needs, and DEPARTMENT OF HEALTH AND (40 CFR 1501.4(b)), the agency is use of treatment INDs or other smaller HUMAN SERVICES placing the environmental assessment submitted with the petition that is the safety protocols to provide early access Food and Drug Administration of multiple DAAs for patients at risk of subject of this notice on public display imminent progression of liver disease. [Docket No. FDA–2010–N–0455] at the Division of Dockets Management This draft guidance is being issued (see ADDRESSES) for public review and consistent with FDA’s good guidance North American Bioproducts comment. Corporation; Filing of Food Additive practices regulation (21 CFR 10.115). Petition (Animal Use); Penicillin G Interested persons may submit to the The draft guidance, when finalized, will Procaine Division of Dockets Management (see represent the agency’s current thinking ADDRESSES) electronic or written on developing DAAs for treatment of AGENCY: Food and Drug Administration, comments regarding this document. It is CHC virus infection. It does not create HHS. only necessary to submit one set of or confer any rights for or on any person ACTION: Notice. comments. It is no longer necessary to and does not operate to bind FDA or the send two copies of mailed comments. public. An alternative approach may be SUMMARY: The Food and Drug used if such approach satisfies the Administration (FDA) is announcing Identify comments with the docket requirements of the applicable statutes that North American Bioproducts Corp. number found in brackets in the and regulations. has filed a petition proposing that the heading of this document. Received food additive regulations be amended to comments may be seen in the Division II. The Paperwork Reduction Act of provide for the safe use of penicillin G of Dockets Management between 9 a.m. 1995 procaine as an antimicrobial processing and 4 p.m., Monday through Friday. This guidance refers to previously aid in fuel-ethanol fermentations with FDA will also place on public display approved collections of information that respect to its consequent presence in by- any amendments to, or comments on, are subject to review by the Office of product distiller grains used as an the petitioner’s environmental Management and Budget (OMB) under animal feed or feed ingredient. assessment without further the Paperwork Reduction Act of 1995 DATES: Submit either electronic or announcement in the Federal Register. (44 U.S.C. 3501–3520). The collections written comments on the petitioner’s If, based on its review, the agency finds of information in 21 CFR part 312 have environmental assessment by October that an environmental impact statement been approved under OMB control 14, 2010. is not required and this petition results number 0910–0014, the collections of ADDRESSES: Submit electronic in a regulation, the notice of availability information in 21 CFR part 314 have comments to http:// of the agency’s finding of no significant been approved under OMB control www.regulations.gov. Submit written impact and the evidence supporting that number 0910–0001, and the collections comments to the Division of Dockets finding will be published with the of information referred to in the Management (HFA–305), Food and Drug regulation in the Federal Register in guidance ‘‘Establishment and Operation Administration, 5630 Fishers Lane, rm. accordance with 21 CFR 25.51(b). of Clinical Trial Data Monitoring 1061, Rockville, MD 20852.

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Dated: September 8, 2010. Advantages: • Identification and purification of Bernadette Dunham, • Ability to distinguish between the the normal and mutated polyomaviral Director, Center for Veterinary Medicine. specific isoforms (i.e., Arf1, Arf3, Arf4, proteins. • [FR Doc. 2010–22811 Filed 9–13–10; 8:45 am] Arf5, and Arf6). Studies of antisense • Antibodies bind preferentially to BILLING CODE 4160–01–S oligonucleotides in polyomavirus the GTP-bound form of Arf. biology. Inventor: Paul A. Randazzo (NCI). • Development of polyclonal and DEPARTMENT OF HEALTH AND Relevant Publications: monoclonal antibodies against HUMAN SERVICES 1. Spang A et al. Arf GAPs: polyomaviruses. gatekeepers of vesicle generation. FEBS Development Status: Pre-clinical. National Institutes of Health Lett. 2010 Jun 18;584(12):2646–2651. Inventors: Christopher B. Buck and [PubMed: 20394747]. Diana V. Pastrana (NCI). Government-Owned Inventions; 2. Campa F and Randazzo PA. Arf Relevant Publication: Schowalter RM Availability for Licensing GTPase-activating proteins and their et al. Merkel cell polyomavirus and two potential role in cell migration and previously unknown polyomaviruses AGENCY: National Institutes of Health, invasion. Cell Adh Migr. 2008 Oct; are chronically shed from human skin. Public Health Service, HHS. 2(4):258–262. [PubMed: 19262159]. Cell Host Microbe Jun 25;7(6):509–515. ACTION: Notice. Patent Status: HHS Reference No. E– [PubMed: 20542254]. 198–2010/0—Research Material. Patent SUMMARY: The inventions listed below Patent Status: U.S. Provisional protection is not being pursued for this are owned by an agency of the U.S. Application No. 61/318,080 filed 26 Mar technology. 2010 (HHS Reference No. E–051–2010/ Government and are available for Licensing Status: Available for licensing in the U.S. in accordance with 0–US–01). licensing. Licensing Status: Available for 35 U.S.C. 207 to achieve expeditious Licensing Contact: Patrick P. McCue, commercialization of results of licensing. PhD, (301) 435–5560; Licensing Contact: Patrick P. McCue, federally-funded research and [email protected]. development. Foreign patent PhD; 301–435–5560; Collaborative Research Opportunity: [email protected]. applications are filed on selected The Center for Cancer Research, inventions to extend market coverage Laboratory of Cellular and Molecular Fenoterol and Fenoterol Analogues for for companies and may also be available Biology, is seeking statements of Treatment of Glioma, Glioblastoma, for licensing. capability or interest from parties and Astrocytoma ADDRESSES: Licensing information and interested in collaborative research to Description of Invention: To date copies of the U.S. patent applications further develop, evaluate, or there is no effective treatment for the listed below may be obtained by writing commercialize this technology. Please brain tumors or brain cancers to the indicated licensing contact at the contact John D. Hewes, PhD at 301–435– indentified as gliomas, glioblastomas, or Office of Technology Transfer, National 3121 or [email protected] for more astrocytomas. Institutes of Health, 6011 Executive information. This technology relates to the Boulevard, Suite 325, Rockville, discovery that fenoterol and related Maryland 20852–3804; telephone: 301/ Sequences Encoding Two Novel Human Polyomaviruses analogues block astrocytoma and 496–7057; fax: 301/402–0220. A signed glioblastoma cell division at low doses. Description of Invention: Researchers Confidential Disclosure Agreement will In a xenograft model utilizing the at the National Cancer Institute, NIH, be required to receive copies of the 1321N1 astrocytoma tumor implanted in have discovered two species of a patent applications. the flank of SKID mice, the (R,R)-4- previously unknown polyomavirus methoxyfenoterol analogue significantly Assay for Arf GTP-Binding Proteins genus. Description of Invention: The Polyomaviruses are a diverse group of decreased tumor growth relative to a DNA-based viruses that infect humans control group receiving vehicle and worldwide laboratory research reagents 3 market is expected to surpass $13 and various animals. At least one studies utilizing [ H]-(R,R)-4- billion in 2010, and the field of human polyomavirus, the Merkel cell methoxyfenoterol have shown that the biotechnology appears key to polyomavirus (MCV), plays a causal role compound readily passes the blood- maintaining the market’s growth. in the development of an unusual form brain barrier. The anti-tumor effect is Antibodies are becoming increasingly of skin cancer called Merkel cell associated with the ability of fenoterol significant, especially for targeting the carcinoma. The coat proteins of and related analogues to induce diseased cells and cell compounds. polyomaviruses can spontaneously production of cyclic adenosine Researchers at the National Cancer assemble into virus-like particles (VLPs) monophosphate (cAMP), which is Institute (NCI), NIH, have developed an similar to those that have been used in normally decreased in glioblastomas antibody-based assay that measures the recent vaccines against human and astrocytomas. Induced cAMP levels of Arf GTP-binding proteins, papillomaviruses (HPVs). production inhibits brain tumor growth some of which have been linked to the Applications: in vivo. Fenoterol and related analogues invasive behavior of cancer cells. The • Development of clinical diagnostic are beta-2 adrenergic receptor (b2 AR) assay is robust, can be performed both assays to detect linkages between the agonists and the anti-tumor effect is on cell lysates and fixed cells, and can new polyomaviruses and human associated with the expression of this distinguish among specific endogenous cancers. receptor. Since there is a heterogeneous • Arf-GTP isoforms. Development of a VLP-based expression of b2 AR in human brain Applications: prophylactic vaccine similar to the HPV tumors, patients who will respond to • Research on Arf function in vaccine. fenoterol therapy can be predetermined physiology and cancer. Advantages: DNA sequences have leading to individualized treatment. In • Research on cancer invasion. broad applications in the studies of addition to use in the initial treatment • Research on membrane traffic and polyomavirus infection mechanisms of brain tumors, the systemic and CNS actin reorganization. and carcinogenesis. Notably, they are: bioavailability of the drug after oral

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administration and the minimal diseases, or a boosting effect to generate Inventors: Joost Oppenheim, Adit systemic toxicity suggest that fenoterol more effective responses to infectious Ben-Baruch, Ji Ming Wang, David and it analogs can be used in the agents, tumors, and promote wound Kelvin (all NCI). adjuvant treatment of patients with b2 healing. Chemokine receptors are Publications: AR-positive gliomas, glioblastomas or expressed on a variety of tumor cells 1. E Cohen-Hillel, et al. Cell migration astrocytomas. Studies with a number of and play a role in helping cancer cells to the chemokine CXCL8: paxillin is fenoterol analogs and CNS-implanted sense new microenvironments for activated and regulates adhesion and tumors are in progress. metastatic growth. cell motility. Cell Mol Life Sci. 2009 The fenoterol analogues discussed in Scientists at the National Institutes of Mar;66(5):884–899. [PubMed: this technology are subject to HHS Ref. Health (NIH) have developed human 19151925]. No. E–205–2006/3 (U.S. Patent embryonic kidney (HEK) 293 cell lines 2. H Attal, et al. Intracellular cross- Application No. 12/376,945 and PCT that express the CXCR1 chemokine talk between the GPCR CXCR1 and Publication No. WO/2008/022038). receptor or the CXCR2 chemokine CXCR2: role of carboxyl terminus Applications: Therapeutic in the front receptor. These two receptors are also phosphorylation sites. Exp Cell Res. line and adjuvant treatment of glioma, known as the IL-8 receptor-alpha and 2008 Jan 15;314(2):352–365. [PubMed: glioblastoma and astrocytoma. IL-8 receptor-beta, respectively. They 17996233]. Advantages: Potential first-in-class both effectively bind IL-8, a potent 3. A Ben-Baruch, et al. The therapeutic for multiple types of brain neutrophil chemoattractant, as well as differential ability of IL–8 and tumors. other chemokines with varying neutrophil-activating peptide-2 to Development Status: In vivo: tumor affinities. The collection of cell lines induce attenuation of chemotaxis is models in SKID mice. In vitro: cell- produced by these scientists includes mediated by their divergent capabilities based assays using human glioblastoma HEK 293 cells that express the wild-type to phosphorylate CXCR2 (IL–8 receptor and astrocytoma cell lines. Further in CXCR1, wild-type CXCR2, or mutant B). J Immunol. 1997 Jun vivo studies in animal models are variants of each receptor. The cell lines 15;158(12):5927–5933. [PubMed: underway. were created by stably transfecting 9190946]. 4. A Ben-Baruch, et al. IL–8 and NAP– Market: Approximately 17,000 vectors containing the cDNA for each 2 differ in their capacities to bind and Americans are diagnosed with gliomas receptor into HEK 293 cells. HEK 293 chemoattract 293 cells transfected with annually (http://www.mayoclinic.org/ cells transfected with the wild-type either IL–8 receptor type A or type B. glioma/). CXCR1 or CXCR2 display strong Inventors: Irving W. Wainer (NIA), Cytokine 1997 Jan;9(1):37–45. [PubMed: chemoattractant properties when placed et al. 9067094]. Publication: Submitted. in the presence of their corresponding 5. A Ben-Baruch, et al. Interleukin-8 Patent Status: U.S. Provisional CXC family chemokines, such as IL-8. receptor beta. The role of the carboxyl Application No. 61/312,642 filed 10 Mar Application: terminus in signal transduction. J Biol 2010 (HHS Reference No. E–013– • Research tools for testing the Chem. 1995 Apr 21;270(16):9121–9128. 2010/0). activity of potential drugs and [PubMed: 7721826]. Licensing Status: Available for chemokine analogs in their ability to Patent Status: HHS Reference No. E– licensing. block cellular responses triggered by 221–2009/0—Research Tool. Patent Licensing Contact: Fatima Sayyid, CXC chemokines, such as inflammatory protection is not being pursued for this M.H.P.M.; 301–435–4521; responses induced by IL-8 technology. [email protected]. • Cell lines expressing the wild-type Licensing Status: Available for Collaborative Research Opportunity: CXCR1 or CXCR2 can serve as positive licensing under a Biological Materials The National Institute on Aging, controls in chemokine receptor studies License Agreement. Laboratory of Clinical Investigation, is designed to identify novel Licensing Contact: Samuel E. Bish, seeking statements of capability or chemoattractants or agents that inhibit Ph.D.; 301–435–5282; interest from parties interested in chemokinetic functions. [email protected]. collaborative research to further • Research tool for screening DLC–1 Gene Deleted in Cancers develop, evaluate, or commercialize the compounds that block these receptors as Description of Invention: use of fenoterol and fenoterol analogs in a possible anti-cancer agent to inhibit Chromosomal regions that are the front line and adjuvant treatment of angiogenesis and metastasis CNS tumors and other b2 AR expressing frequently deleted in cancer cells are Advantages: tumors. Please contact Nicole Darack, thought to be the loci of tumor • PhD at 301–435–3101 or Both wild-type and mutant cell suppressor genes, which restrict cell [email protected] for more lines available: Wild-type CXCR1/ proliferation. Recurrent deletions on the information. CXCR2 receptors or mutant receptors short arm of human chromosome 8 in with point and deletion mutations have liver, breast, lung and prostate cancers Chemical Attraction: Cell Lines been cloned into HEK 293 cells. These have raised the possibility of the Expressing the CXCR1 or CXCR2 cell lines will have varying degrees of presence of tumor suppressor genes in Chemokine Receptors potency for their chemoattractant this location. Description of Invention: responses to provide a range of The inventors have discovered the Chemoattractant receptors have been functional comparisons in chemokine deletion of human DLC–1 gene in identified as important factors in studies. hepatocellular cancer (HCC) cells. They regulating many innate and adaptive • Experimental verification of have performed in vitro experiments immune responses. Modulation of these response to CXC family chemokines: demonstrating the deletion in over 40% receptors have implications for shifting The scientists have compiled years of of human primary HCC and in 90% of immune responses to create either a data over various publications HCC cell lines. The DLC–1 gene is dampening effect in fighting indicating that these receptors respond located on human chromosome 8p21.3– inflammatory diseases, such as appropriately to a profile of 22, a region frequently deleted in many autoimmune diseases or cardiovascular chemokines. types of human cancer. DLC–1 mRNA is

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expressed in all normal tissues tested, Laboratory of Experimental appeared on page 42911 of the July 22, but it has either no or low expression in Carcinogenesis, is seeking statements of 2010 notice with comment period. a high percentage of several types of capability or interest from parties These two tables illustrate the skilled human cancer, such as liver, breast, interested in collaborative research to nursing facility (SNF) prospective lung, and prostate cancers. Through in further develop, evaluate, or payment system (PPS) payment rate vitro and in vivo tumor suppression commercialize diagnostics based on computations for a hypothetical ‘‘XYZ’’ experiments, the inventors further tumor suppressor genes. Please contact SNF located in Cedar Rapids, IA (Urban demonstrated that DLC–1 acts as a new John D. Hewes, PhD, at 301–435–3121 CBSA 16300) under the RUG–IV and tumor suppressor gene for different or [email protected] for more Hybrid RUG–III (HR–III) systems, types of human cancer. information. respectively. In the title of the tables as Applications: • Method to diagnose HCC. Dated: September 7, 2010. well as in the third column (‘‘Wage • Method to treat HCC patients with Richard U. Rodriguez, Index’’), the wage index value for Cedar DLC–1 compositions. Director, Division of Technology Development Rapids, IA is incorrectly displayed as • Transgenic model to study HCC and and Transfer, Office of Technology Transfer, 0.8858. Accordingly, in section III of other types of human cancer. National Institutes of Health. this document (‘‘Correction of Errors’’), • DLC–1 compositions. [FR Doc. 2010–22834 Filed 9–13–10; 8:45 am] we are revising the entries in Tables 8A Market: BILLING CODE 4140–01–P and 8B to reflect the correct wage index • Primary liver cancer accounts for value of 0.8844. We are similarly about 2% of cancers in the U.S., but up revising the immediately preceding to half of all cancers in some DEPARTMENT OF HEALTH AND portion of the preamble text, which HUMAN SERVICES undeveloped countries. references the total PPS payment • 251,000 new cases are reported annually. Centers for Medicare & Medicaid amounts displayed in these two tables. • Post-operative five year survival Services However, we note that the corresponding entry for CBSA 16300, as rate of HCC patients is 30–40%. [CMS–1338–CN] Development Status: The technology it appears in an addendum to the July is currently in the pre-clinical stage of RIN 0938–AP87 22, 2010 notice with comment period development. (Table A, ‘‘FY 2011 Wage Index for Inventors: Bao-Zhu Yuan, Snorri S. Medicare Program; Prospective Urban Areas Based on CBSA Labor Thorgeirsson, Nicholas Popescu (NCI). Payment System and Consolidated Market Areas’’), already reflects the Publications: Billing for Skilled Nursing Facilities for correct wage index value of 0.8844 (75 1. BZ Yuan et al. DLC–1 operates as FY 2011; Correction FR 42923). We are also revising the a tumor suppressor gene in human non- AGENCY: Centers for Medicare & footnote that appears in Tables 8A and small cell lung carcinomas. Oncogene. Medicaid Services (CMS), HHS. 8B to clarify that in these examples, all 2004 Feb 19;23(7):1405–1411. [PubMed: ACTION: Correction notice. 10 of the Medicare days listed under the 14661059]. ‘‘CC2’’ RUG group would involve a 2. BZ Yuan et al. DLC–1 gene inhibits SUMMARY: This document corrects resident with AIDS and, thus, would human breast cancer cell growth and in technical errors that appeared in the qualify for the special 128 percent vitro tumorigenicity. Oncogene. 2003 notice with comment period published adjustment under section 511 of the Jan 23;22(3):445–450. [PubMed: in the Federal Register on July 22, 2010 12545165]. Medicare Prescription Drug, entitled, ‘‘Medicare Program; Improvement, and Modernization Act of 3. BZ Yuan et al. Promoter Prospective Payment System and hypermethylation of DLC–1, a candidate 2003 (MMA) (Pub. L. 108–173, enacted Consolidated Billing for Skilled Nursing on December 8, 2003). tumor suppressor gene, in several Facilities for FY 2011.’’ common human cancers. Cancer Genet DATES: III. Correction of Errors Cytogenet. 2003 Jan 15;140(2):113–117. Effective Date: This correction is effective October 1, 2010. [PubMed: 12645648]. In FR Doc. 2010–17628 (75 FR 42886), 4. BZ Yuan et al. Cloning, FOR FURTHER INFORMATION CONTACT: Bill make the following corrections: characterization, and chromosomal Ullman, (410) 786–5667. 1. On page 42910, third column, in localization of a gene frequently deleted SUPPLEMENTARY INFORMATION: line five from the bottom of the page, in human liver cancer (DLC–1) I. Background the phrase ‘‘$41,979 for RUG–IV and homologous to rat RhoGAP. Cancer Res. ’’ 1998 May 15;58(10):2196–2199. In FR Doc. 2010–17628 of July 22, $36,517 for HR–III, respectively is ‘‘ [PubMed: 9605766]. 2010 (75 FR 42886), there were several revised to read $41,935 for RUG–IV and Patent Status: technical errors that are identified and $36,479 for HR–III, respectively’’. • U.S. Patent No. 6,897,018 issued 24 corrected in the ‘‘Correction of Errors’’ 2. On page 42911, Tables 8A and 8B May 2005 (HHS Reference No. E–042– section below. The corrections are revised to read as follows: described below are effective as if they 1998/0–US–03). 3. On page 42911, underneath Table • U.S. Patent No. 7,534,565 issued 19 had been included in the document May 2009 (HHS Reference No. E–042– published on July 22, 2010. 8A and Table 8B, we removed the ‘‘ 1998/0–US–05). Accordingly, the corrections are asterisk statement *Reflects a 128 Licensing Status: Available for effective October 1, 2010. percent adjustment from section 511 of licensing. the MMA’’ and replaced it with Licensing Contact: Jennifer Wong; II. Summary of Errors ‘‘*Reflects a 128 percent adjustment 301–435–4633; [email protected]. We are correcting the titles and wage from section 511 of the MMA. All CC2 Collaborative Research Opportunity: index columns (along with the resulting days should be considered to be for a The National Cancer Institute, values) of Tables 8A and 8B, which resident with AIDS.’’

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IV. Waiver of Proposed Rulemaking corrections to the FY 2011 SNF PPS in the effective date as being contrary to and Delayed Effective Date notice with comment period. We are not the public interest. We believe that it is We ordinarily publish a notice of making substantive changes to our in the public interest for providers to proposed rulemaking in the Federal payment methodologies or policies, but receive appropriate SNF PPS payments Register to provide a period for public rather, are simply implementing in as timely a manner as possible and comment before the provisions of a rule correctly the payment methodologies to ensure that the FY 2011 SNF PPS take effect in accordance with section and policies that we previously notice with comment period accurately 553(b) of the Administrative Procedure proposed, received comment on, and reflects our payment methodologies, Act (APA) (5 U.S.C. 553(b)). We also subsequently finalized. This correction payment rates, and policies. Therefore, ordinarily provide a 30-day delay in the notice is intended solely to ensure that we find good cause to waive notice and effective date of the provisions of a the FY 2011 SNF PPS notice with comment procedures, as well as the 30- notice in accordance with section 553(d) comment period accurately reflects day delay in effective date. of the APA (5 U.S.C. 553(d)). However, these payment methodologies and we can waive both the notice and policies. Therefore, we believe that (Catalog of Federal Domestic Assistance Program No. 93.773, Medicare—Hospital comment procedure and the 30-day undertaking further notice and comment Insurance; and Program No. 93.774, delay in effective date if the Secretary rulemaking activity in connection with Medicare—Supplementary Medical finds, for good cause, that a notice and it would be unnecessary and contrary to Insurance Program) comment process is impracticable, the public interest. unnecessary, or contrary to the public Further, we believe a delayed Dated: September 9, 2010. interest, and incorporates a statement of effective date is unnecessary because Dawn L. Smalls, the finding and the reasons for it in the this correction notice merely corrects Executive Secretary to the Department. notice. inadvertent technical errors. The [FR Doc. 2010–22902 Filed 9–10–10; 11:15 am] We find for good cause that it is changes noted above do not make any unnecessary to undertake notice and substantive changes to the SNF PPS BILLING CODE 4120–01–P comment rulemaking because this payment methodologies or policies. notice merely provides technical Moreover, we regard imposing a delay

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DEPARTMENT OF HEALTH AND ACTION: Notice. immediately following lunch. Those HUMAN SERVICES desiring to make formal oral This notice announces a forthcoming presentations should notify the contact Centers for Disease Control and meeting of a public advisory committee person and submit a brief statement of Prevention of the Food and Drug Administration the general nature of the evidence or (FDA). The meeting will be open to the arguments they wish to present, the Disease, Disability, and Injury public. names and addresses of proposed Prevention and Control Special Name of Committee: Neurological participants, and an indication of the Emphasis Panel (SEP): Epi-Centers for Devices Panel of the Medical Devices approximate time requested to make the Prevention of Healthcare- Advisory Committee. their presentation on or before Associated Infections, Antimicrobial General Function of the Committee: September 22, 2010. Time allotted for Resistance and Adverse Events, To provide advice and each presentation may be limited. If the Funding Opportunity Announcement, recommendations to the agency on number of registrants requesting to CI11–001, Initial Review FDA’s regulatory issues. speak is greater than can be reasonably Date and Time: The meeting will be In accordance with Section 10(a)(2) of accommodated during the scheduled held on October 8, 2010, from 8 a.m. to open public hearing session, FDA may the Federal Advisory Committee Act 6 p.m. conduct a lottery to determine the (Pub. L. 92–463), the Centers for Disease Location: Hilton Washington DC speakers for the scheduled open public Control and Prevention (CDC) North/Gaithersburg, Ballroom, 620 Perry hearing session. The contact person will announces the aforementioned meeting: Pkwy., Gaithersburg, MD. notify interested persons regarding their Time and Date Contact Person: James Engles, Center request to speak by September 23, 2010. for Devices and Radiological Health, Persons attending FDA’s advisory 8 a.m.–5 p.m., November 8, 2010 (Closed). Food and Drug Administration, 10903 Place: Sheraton Gateway Hotel Atlanta committee meetings are advised that the Airport, 1900 Sullivan Road, Atlanta, Georgia New Hampshire Ave., Silver Spring, MD agency is not responsible for providing 30337, Telephone: (770) 997–1100. 20993, or FDA Advisory Committee access to electrical outlets. Status: The meeting will be closed to the Information Line, 1–800–741–8138 FDA welcomes the attendance of the public in accordance with provisions set (301–443–0572 in the Washington, DC public at its advisory committee forth in Section 552b(c) (4) and (6), Title 5 area), code 3014512513. Please call the meetings and will make every effort to U.S.C., and the Determination of the Director, Information Line for up-to-date accommodate persons with physical Management Analysis and Services Office, information on this meeting. A notice in CDC, pursuant to Public Law disabilities or special needs. If you the Federal Register about last minute require special accommodations due to 92–463. modifications that impact a previously Matters To Be Discussed: The meeting will a disability, please contact AnnMarie include the initial review, discussion, and announced advisory committee meeting Williams, Conference Management evaluation of applications received in cannot always be published quickly Staff, at 301–796–5966 at least 7 days in response to ‘‘Epi-Centers for the Prevention of enough to provide timely notice. advance of the meeting. Healthcare-Associated Infectious, Therefore, you should always check the FDA is committed to the orderly Antimicrobial Resistance and Adverse agency’s Web site and call the conduct of its advisory committee Events, FOA CI11–001.’’ appropriate advisory committee hot meetings. Please visit our Web site at Contact Person for More Information: line/phone line to learn about possible http://www.fda.gov/Advisory Gregory Anderson, M.S., M.P.H., Scientific modifications before coming to the Committees/AboutAdvisoryCommittees/ Review Officer, CDC, 1600 Clifton Road, NE., meeting. Mailstop E60, Atlanta, Georgia 30333, ucm111462.htm for procedures on Telephone: (404) 498–2293. Agenda: On October 8, 2010, the public conduct during advisory The Director, Management Analysis and committee will discuss and make committee meetings. Services Office, has been delegated the recommendations regarding clinical Notice of this meeting is given under authority to sign Federal Register notices trial design issues for devices indicated the Federal Advisory Committee Act (5 pertaining to announcements of meetings and for the treatment of depression. U.S.C. app. 2). other committee management activities, for FDA intends to make background both CDC and the Agency for Toxic material available to the public no later Dated: September 7, 2010. Substances and Disease Registry. than 2 business days before the meeting. Leslie Kux, Acting Assistant Commissioner for Policy. Elaine L. Baker, If FDA is unable to post the background [FR Doc. 2010–22804 Filed 9–13–10; 8:45 am] Director, Management Analysis and Services material on its Web site prior to the Office, Centers for Disease Control and meeting, the background material will BILLING CODE 4160–01–P Prevention. be made publicly available at the location of the advisory committee [FR Doc. 2010–22759 Filed 9–13–10; 8:45 am] DEPARTMENT OF HEALTH AND BILLING CODE 4163–18–P meeting, and the background material will be posted on FDA’s Web site after HUMAN SERVICES the meeting. Background material is Food and Drug Administration DEPARTMENT OF HEALTH AND available at http://www.fda.gov/ HUMAN SERVICES AdvisoryCommittees/Calendar/ [Docket No. FDA–2010–N–0001] default.htm. Scroll down to the Food and Drug Administration appropriate advisory committee link. Transmissible Spongiform Procedure: Interested persons may Encephalopathies Advisory [Docket No. FDA–2010–N–0001] present data, information, or views, Committee; Notice of Meeting Neurological Devices Panel of the orally or in writing, on issues pending AGENCY: Food and Drug Administration, Medical Devices Advisory Committee; before the committee. Written HHS. Notice of Meeting submissions may be made to the contact ACTION: Notice. person on or before September 30, 2010. AGENCY: Food and Drug Administration, Oral presentations from the public will This notice announces a forthcoming HHS. be scheduled at approximately 1 p.m., meeting of a public advisory committee

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of the Food and Drug Administration material on its Web site prior to the Dated: September 7, 2010. (FDA). The meeting will be open to the meeting, the background material will Leslie Kux, public. be made publicly available at the Acting Assistant Commissioner for Policy. Name of Committee: Transmissible location of the advisory committee [FR Doc. 2010–22805 Filed 9–13–10; 8:45 am] Spongiform Encephalopathies Advisory meeting, and the background material Committee. will be posted on FDA’s Web site after BILLING CODE 4160–01–S General Function of the Committee: the meeting. Background material is To provide advice and available at http://www.fda.gov/ DEPARTMENT OF HEALTH AND recommendations to the agency on AdvisoryCommittees/Calendar/ HUMAN SERVICES FDA’s regulatory issues. default.htm. Scroll down to the Date and Time: The meeting will be appropriate advisory committee link. National Institutes of Health held on October 28, 2010, from 8:30 Procedure: Interested persons may a.m. to approximately 5 p.m. and on present data, information, or views, October 29, 2010, from 8:30 a.m. to National Institute of General Medical orally or in writing, on issues pending Sciences; Notice of Closed Meeting approximately 12:30 p.m. before the committee. Written Location: Holiday Inn, Gaithersburg, 2 submissions may be made to the contact Montgomery Village Ave., Gaithersburg, Pursuant to section 10(d) of the person on or before October 21, 2010. MD, 20879. Federal Advisory Committee Act, as Contact Person: Bryan Emery or Oral presentations from the public will amended (5 U.S.C. App.), notice is Rosanna Harvey, Center for Biologics be scheduled on October 28, 2010, hereby given of the following meeting. between approximately 11 a.m. and Evaluation and Research (HFM–71), The meeting will be closed to the Food and Drug Administration, 1401 11:45 a.m. and between approximately 3:30 p.m. and 4 p.m. and on October 29, public in accordance with the Rockville Pike, Rockville, MD 20852, provisions set forth in sections 301–827–0314, or FDA Advisory 2010, between approximately 10:30 a.m. and 11 a.m. Those desiring to make 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., Committee Information Line, 1–800– as amended. The grant applications and 741–8138 (301–443–0572 in the formal oral presentations should notify the discussions could disclose Washington, DC area), code the contact person and submit a brief confidential trade secrets or commercial 3014512392. Please call the Information statement of the general nature of the Line for up-to-date information on this evidence or arguments they wish to property such as patentable material, meeting. A notice in the Federal present, the names and addresses of and personal information concerning Register about last minute modifications proposed participants, and an individuals associated with the grant that impact a previously announced indication of the approximate time applications, the disclosure of which advisory committee meeting cannot requested to make their presentation on would constitute a clearly unwarranted always be published quickly enough to or before October 13, 2010. Time invasion of personal privacy. allotted for each presentation may be provide timely notice. Therefore, you Name of Committee: National Institute of limited. If the number of registrants should always check the agency’s Web General Medical Sciences Special Emphasis requesting to speak is greater than can site and call the appropriate advisory Panel, Phase II Clinical Trial in Septic Shock. committee hot line/phone line to learn be reasonably accommodated during the Date: October 7, 2010. about possible modifications before scheduled open public hearing session, Time: 8:30 a.m. to 4 p.m. coming to the meeting. FDA may conduct a lottery to determine Agenda: To review and evaluate grant Agenda: On October 28, 2010, the the speakers for the scheduled open applications. Committee will discuss: (1) FDA’s risk public hearing session. The contact Place: National Institute of General assessment for potential exposure to the person will notify interested persons Medical Sciences, National Institutes of variant Creutzfeldt-Jakob disease (vCJD) regarding their request to speak by Health, 45 Center Drive, Room 3AN18K, agent in U.S.-licensed plasma-derived October 14, 2010. Bethesda, MD 20892. (Telephone Conference Factor VIII and (2) labeling of blood and Persons attending FDA’s advisory Call.) blood components and plasma-derived committee meetings are advised that the Contact Person: Brian R. Pike, PhD, products, including plasma-derived agency is not responsible for providing Scientific Review Officer, Office of Scientific albumin and products containing access to electrical outlets. Review, National Institute of General Medical plasma-derived albumin, to address the FDA welcomes the attendance of the Sciences, National Institutes of Health, 45 possible risk of transmission of vCJD. public at its advisory committee Center Drive, Room 3AN18B, Bethesda, MD On October 29, 2010, the Committee meetings and will make every effort to 20892. 301–594–3907. [email protected]. will hear informational presentations accommodate persons with physical (Catalogue of Federal Domestic Assistance related to FDA’s geographic donor disabilities or special needs. If you Program Nos. 93.375, Minority Biomedical deferral policy to reduce the possible require special accommodations due to Research Support; 93.821, Cell Biology and risk of transmission of CJD and vCJD by a disability, please contact Bryan Emery Biophysics Research; 93.859, Pharmacology, blood and blood products and human at least 7 days in advance of the Physiology, and Biological Chemistry cells, and tissue and cellular and tissue meeting. Research; 93.862, Genetics and based products. The Committee will FDA is committed to the orderly Developmental Biology Research; 93.88, also hear updates on the following conduct of its advisory committee Minority Access to Research Careers; 93.96, topics: The development of devices to meetings. Please visit our Web site at Special Minority Initiatives, National remove transmissible spongiform http://www.fda.gov/Advisory Institutes of Health, HHS) encephalopathy agents from blood Committees/AboutAdvisoryCommittees/ Dated: September 8, 2010. components and chronic wasting ucm111462.htm for procedures on Jennifer Spaeth, disease. public conduct during advisory FDA intends to make background committee meetings. Director, Office of Federal Advisory material available to the public no later Notice of this meeting is given under Committee Policy. than 2 business days before the meeting. the Federal Advisory Committee Act (5 [FR Doc. 2010–22843 Filed 9–13–10; 8:45 am] If FDA is unable to post the background U.S.C. app. 2). BILLING CODE 4140–01–P

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DEPARTMENT OF HEALTH AND hereby given of a meeting of the Estimation— Health Risks from HUMAN SERVICES Interagency Breast Cancer and Environmental Exposures; 93.142, NIEHS Environmental Research Coordinating Hazardous Waste Worker Health and Safety National Institutes of Health Committee. Training; 93.143, NIEHS Superfund Hazardous Substances—Basic Research and The meeting will be open to the Education; 93.894, Resources and Manpower National Institute of General Medical public, with attendance limited to space Sciences; Notice of Closed Meeting Development in the Environmental Health available. Individuals who plan to Sciences; 93.113, Biological Response to Pursuant to section 10(d) of the attend and need special assistance, such Environmental Health Hazards; 93.114, Federal Advisory Committee Act, as as sign language interpretation or other Applied Toxicological Research and Testing, amended (5 U.S.C. App.), notice is reasonable accommodations, should National Institutes of Health, HHS) hereby given of the following meeting. notify the Contact Person listed below Dated: September 8, 2010. The meeting will be closed to the in advance of the meeting. Jennifer S. Spaeth, public in accordance with the Name of Committee: Interagency Breast Director, Office of Federal Advisory provisions set forth in sections Cancer and Environmental Research Committee Policy. Coordinating Committee. 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., [FR Doc. 2010–22830 Filed 9–13–10; 8:45 am] Date: September 30–October 1, 2010. as amended. The grant applications and BILLING CODE 4140–01–P the discussions could disclose Time: 8:30 a.m. to 3:30 p.m. Agenda: The purpose of the meeting is to confidential trade secrets or commercial initiate the work of the Committee, which is property such as patentable material, to share and coordinate information on DEPARTMENT OF HEALTH AND and personal information concerning existing research activities, and to make HUMAN SERVICES individuals associated with the grant recommendations to the National Institutes applications, the disclosure of which of Health and other Federal agencies Food and Drug Administration regarding how to improve existing research would constitute a clearly unwarranted [Docket No. FDA–2010–N–0001] invasion of personal privacy. programs related to breast cancer and the environment. Name of Committee: National Institute of Place: JW Marriott, 1313 Pennsylvania Arthritis Advisory Committee; Notice General Medical Sciences Initial Review Avenue, NW., Washington, DC 20004. of Meeting Group, Biomedical Research and Research Contact Person: Gwen W. Collman, PhD, Training Review Subcommittee A. Acting Director, Division of Extramural AGENCY: Food and Drug Administration, Date: November 4–5, 2010. Research and Training, National Institute of HHS. Time: 8 a.m. to 5 p.m. Environmental Health Sciences, 615 Davis ACTION: Notice. Agenda: To review and evaluate grant Dr., KEY615/3112, Research Triangle Park, applications. NC 27709. (919) 541–4980. This notice announces a forthcoming Place: Embassy Suites at the Chevy Chase [email protected]. meeting of a public advisory committee Pavilion, 4300 Military Road, NW., Any member of the public interested in of the Food and Drug Administration Washington, DC 20015. presenting oral comments to the committee (FDA). The meeting will be open to the Contact Person: Carole H. Latker, PhD, should submit their remarks in writing at public. Scientific Review Officer, Office of Scientific least 10 days in advance of the meeting. Name of Committee: Arthritis Review, National Institute of General Medical Comments in document format (i.e. WORD, Sciences, National Institutes of Health, Rich Text, PDF) may be uploaded via the Advisory Committee. Natcher Building, Room 3AN18, Bethesda, following Web site: https://www.cmpinc.net/ General Function of the Committee: MD 20892. 301–594–2848. IBCERCC. Alternatively, comments may be To provide advice and [email protected]. submitted via e-mail to the Contact Person recommendations to the agency on (Catalogue of Federal Domestic Assistance listed on this notice. You do not need to FDA’s regulatory issues. Program Nos. 93.375, Minority Biomedical attend the meeting in order to submit Date and Time: The meeting will be Research Support; 93.821, Cell Biology and comments. held on November 16, 2010, from 8 a.m. Biophysics Research; 93.859, Pharmacology, Interested individuals and representatives to 5 p.m. Physiology, and Biological Chemistry of organizations may submit a letter of intent, Location: The Marriott Inn and a brief description of the organization Research; 93.862, Genetics and Conference Center, University of Developmental Biology Research; 93.88, represented, and a short description of the oral comments you wish to present. Only one Maryland University College, 3501 Minority Access to Research Careers; 93.96, University Blvd East, Adelphi, MD. The Special Minority Initiatives, National representative per organization may be Institutes of Health, HHS) allowed to present oral comments and if conference center telephone number is accepted by the committee, presentations 301–985–7300. Dated: September 8, 2010. may be limited to five minutes. Both printed Contact Person: Anuja Patel, Center Jennifer Spaeth, and electronic copies are requested for the for Drug Evaluation and Research, Food Director, Office of Federal Advisory record. The statement should include the and Drug Administration, 10903 New Committee Policy. name, address, telephone number and, when Hampshire Ave., WO31–2417, Silver applicable, the business or professional [FR Doc. 2010–22842 Filed 9–13–10; 8:45 am] affiliation of the interested person. Oral Spring, MD 20993–0002, 301–796–9001, BILLING CODE 4140–01–P comments will begin at approximately 4:15 FAX: 301–847–8533, email: p.m. on Thursday, September 30, 2010. [email protected], or FDA Although time will not be allotted for Advisory Committee Information Line, DEPARTMENT OF HEALTH AND comments on Friday, October 1, 2010, 1–800–741–8138 (301–443–0572 in the HUMAN SERVICES members of the public are welcome to attend Washington, DC area), code the entire meeting. 3014512532. Please call the Information National Institutes of Health Anyone who wishes to attend the meeting Line for up-to-date information on this and/or submit comments to the committee is National Institute of Environmental asked to RSVP via the following Web site: meeting. A notice in the Federal Health Sciences; Notice of Meeting https://www.cmpinc.net/IBCERCC. All Register about last minute modifications comments are delivered to the Contact that impact a previously announced Pursuant to section 10(a) of the Person listed on this notice. advisory committee meeting cannot Federal Advisory Committee Act, as (Catalogue of Federal Domestic Assistance always be published quickly enough to amended (5 U.S.C. App.), notice is Program Nos. 93.115, Biometry and Risk provide timely notice. Therefore, you

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should always check the agency’s Web at least 7 days in advance of the Analysis and Services Office, has been site and call the appropriate advisory meeting. delegated the authority to sign Federal committee hot line/phone line to learn FDA is committed to the orderly Register notices pertaining to about possible modifications before conduct of its advisory committee announcements of meetings and other coming to the meeting. meetings. Please visit our Web site at committee management activities, for both Agenda: On November 16, 2010, the http://www.fda.gov/ CDC and the Agency for Toxic Substances committee will discuss biologic license AdvisoryCommittees/AboutAdvisory and Disease Registry. application 125370, belimumab, Committees/ucm111462.htm for Dated: September 8, 2010. proposed trade name BENLYSTA, procedures on public conduct during Elaine L. Baker, sponsored by Human Genome Sciences, advisory committee meetings. for the proposed indication of reducing Notice of this meeting is given under Director, Management Analysis and Services disease activity in adult patients with Office, Centers for Disease Control and the Federal Advisory Committee Act (5 Prevention. active, autoantibody-positive systemic U.S.C. app. 2). lupus erythematosus. [FR Doc. 2010–22815 Filed 9–13–10; 8:45 am] Dated: September 9, 2010. FDA intends to make background BILLING CODE 4163–18–P material available to the public no later Leslie Kux, than 2 business days before the meeting. Acting Assistant Commissioner for Policy. If FDA is unable to post the background [FR Doc. 2010–22867 Filed 9–13–10; 8:45 am] DEPARTMENT OF HEALTH AND material on its Web site prior to the BILLING CODE 4160–01–S HUMAN SERVICES meeting, the background material will be made publicly available at the National Institutes of Health location of the advisory committee DEPARTMENT OF HEALTH AND meeting, and the background material HUMAN SERVICES National Eye Institute; Notice of Closed will be posted on FDA’s Web site after Meeting the meeting. Background material is Centers for Disease Control and available at http://www.fda.gov/ Prevention Pursuant to section 10(d) of the AdvisoryCommittees/Calendar/ Federal Advisory Committee Act, as Disease, Disability, and Injury default.htm. Scroll down to the amended (5 U.S.C. App.), notice is Prevention and Control Special appropriate advisory committee link. hereby given of the following meeting. Procedure: Interested persons may Emphasis Panel (SEP): Patient Protection and Affordable Care Act The meeting will be closed to the present data, information, or views, public in accordance with the orally or in writing, on issues pending (PPACA), Emerging Infections Program (EIP), Enhancing provisions set forth in sections before the committee. Written 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., submissions may be made to the contact Epidemiology and Laboratory Capacity, Funding Opportunity as amended. The grant applications and person on or before November 1, 2010. the discussions could disclose Oral presentations from the public will Announcement (FOA) CI10–003, Initial confidential trade secrets or commercial be scheduled between approximately 1 Review property such as patentable material, p.m. to 2 p.m. Those desiring to make In accordance with Section 10(a)(2) of and personal information concerning formal oral presentations should notify the Federal Advisory Committee Act individuals associated with the grant the contact person and submit a brief (Pub. L. 92–463), the Centers for Disease statement of the general nature of the applications, the disclosure of which Control and Prevention (CDC) would constitute a clearly unwarranted evidence or arguments they wish to announces the aforementioned meeting: present, the names and addresses of invasion of personal privacy. Time and Date: 12 p.m.–2 p.m., September proposed participants, and an Name of Committee: National Eye Institute indication of the approximate time 21, 2010 (Closed). Place: Teleconference. Special Emphasis Panel, RO1 Epidemiology requested to make their presentation on Status: The meeting will be closed to the Applications. or before October 22, 2010. Time public in accordance with provisions set Date: September 29, 2010. allotted for each presentation may be forth in Section 552b(c) (4) and (6), Title 5 Time: 2:30 p.m. to 5 p.m. limited. If the number of registrants U.S.C., and the Determination of the Director, Agenda: To review and evaluate grant requesting to speak is greater than can Management Analysis and Services Office, applications. be reasonably accommodated during the CDC, pursuant to Public Law 92–463. Place: National Institutes of Health, NEI, scheduled open public hearing session, This notice is being published on less than 5635 Fishers Lane, Rockville, MD 20892. FDA may conduct a lottery to determine 15 days notice to the public in order for the (Telephone Conference Call) the speakers for the scheduled open Agency to fulfill its obligations under Section Contact Person: Samuel Rawlings, PhD, 4002(b) of the PPACA prior to 2010 Fiscal Chief, Scientific Review Officer, Division of public hearing session. The contact Year-End and in order to meet the objectives Extramural Research, National Eye Institute, person will notify interested persons of the funding opportunity announcement. regarding their request to speak by Matters To Be Discussed: The meeting will National Institutes of Health, 5635 Fishers October 25, 2010. include the initial review, discussion, and Lane, Suite 1300, MSC 9300, 301–451–2020, Persons attending FDA’s advisory evaluation of applications received in [email protected]. committee meetings are advised that the response to ‘‘Patient Protection and (Catalogue of Federal Domestic Assistance agency is not responsible for providing Affordable Care Act (PPACA), Emerging Program Nos. 93.867, Vision Research, access to electrical outlets. Infections Program (EIP), Enhancing National Institutes of Health, HHS) FDA welcomes the attendance of the Epidemiology and Laboratory Capacity, Dated: September 8, 2010. public at its advisory committee Funding Opportunity Announcement FOA CI10–003.’’ Jennifer Spaeth, meetings and will make every effort to Contact Person for More Information: Director, Office of Federal Advisory accommodate persons with physical Gregory Anderson, M.S., M.P.H., Scientific Committee Policy. disabilities or special needs. If you Review Officer, CDC, 1600 Clifton Road, NE., require special accommodations due to Mailstop E60, Atlanta, GA 30333, Telephone: [FR Doc. 2010–22841 Filed 9–13–10; 8:45 am] a disability, please contact Anuja Patel (404) 498–2293. The Director, Management BILLING CODE 4140–01–P

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DEPARTMENT OF HEALTH AND amended (5 U.S.C. App.), notice is Hazardous Waste Worker Health and Safety HUMAN SERVICES hereby given of the following meetings. Training; 93.143, NIEHS Superfund The meetings will be closed to the Hazardous Substances—Basic Research and National Institutes of Health Education; 93.894, Resources and Manpower public in accordance with the Development in the Environmental Health provisions set forth in sections Sciences; 93.113, Biological Response to Eunice Kennedy Shriver National 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., Institute of Child Health & Human Environmental Health Hazards; 93.114, as amended. The grant applications and Applied Toxicological Research and Testing, Development; Notice of Closed the discussions could disclose National Institutes of Health, HHS) Meeting confidential trade secrets or commercial Dated: September 8, 2010. Pursuant to section 10(d) of the property such as patentable material, Jennifer S. Spaeth, Federal Advisory Committee Act, as and personal information concerning Director, Office of Federal Advisory amended (5 U.S.C. App.), notice is individuals associated with the grant Committee Policy. hereby given of the following meeting. applications, the disclosure of which [FR Doc. 2010–22839 Filed 9–13–10; 8:45 am] would constitute a clearly unwarranted The meeting will be closed to the BILLING CODE 4140–01–P public in accordance with the invasion of personal privacy. provisions set forth in sections Name of Committee: National Institute of 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., Environmental Health Sciences Special DEPARTMENT OF HEALTH AND as amended. The grant applications and Emphasis Panel; Sampling for Gauging HUMAN SERVICES the discussions could disclose Environmental Stressors. confidential trade secrets or commercial Date: September 29, 2010. National Institutes of Health property such as patentable material, Time: 1:30 p.m. to 2:30 p.m. and personal information concerning Agenda: To review and evaluate grant National Heart, Lung, and Blood applications. Institute; Notice of Meeting individuals associated with the grant Place: NIEHS/National Institutes of Health, applications, the disclosure of which 530 Davis Drive, Morrisville, NC 27560 Pursuant to section 10(a) of the would constitute a clearly unwarranted (Telephone Conference Call) Federal Advisory Committee Act, as invasion of personal privacy. Contact Person: Sally Eckert-Tilotta, PhD, amended (5 U.S.C. App.), notice is Name of Committee: National Institute of Scientific Review Officer, Nat. Institute of hereby given of a meeting of the Sickle Child Health and Human Development Initial Environmental Health Sciences, Office of Cell Disease Advisory Committee. Review Group, Health, Behavior, and Context Program Operations, Scientific Review The meeting will be open to the Subcommittee. Branch, P.O. Box 12233, Research Triangle public, with attendance limited to space Park, NC 27709, (919) 541–1446, Date: October 21, 2010. available. Individuals who plan to Time: 8 a.m. to 5 p.m. [email protected]. attend and need special assistance, such Agenda: To review and evaluate grant Name of Committee: National Institute of applications. Environmental Health Sciences Special as sign language interpretation or other Place: National Institutes of Health, Emphasis Panel; Uranium Exposure Through reasonable accommodations, should Neuroscience Center, 6001 Executive Diet. notify the Contact Person listed below Boulevard, Rockville, MD 20852. Date: September 30, 2010. in advance of the meeting. Contact Person: Michele C. Hindi- Time: 1:30 p.m. to 2:30 p.m. Alexander, PhD, Scientific Review Officer, Name of Committee: Sickle Cell Disease Agenda: To review and evaluate grant Advisory Committee. Division of Scientific Review, Eunice applications. Date: October 15, 2010. Kennedy Shriver National Institute of Child Place: NIEHS/National Institutes of Health, Time: 8 a.m. to 5 p.m. Health and Human Development, NIH, 6100 530 Davis Drive, Morrisville, NC 27560 Agenda: Discussion of Programs and Executive Blvd., Room 5B01, Bethesda, MD (Telephone Conference Call). Issues. 20812–7510. 301–435–8382. Contact Person: Sally Eckert-Tilotta, PhD, Place: National Institutes of Health, 6701 [email protected]. Scientific Review Officer, Nat. Institute of Rockledge Drive, Conference Rooms 9112/ (Catalogue of Federal Domestic Assistance Environmental Health Sciences, Office of 9116, Bethesda, MD 20892. Program Nos. 93.864, Population Research; Program Operations, Scientific Review Contact Person: W. Keith Hoots, MD, 93.865, Research for Mothers and Children; Branch, P.O. Box 12233, Research Triangle Director, Division of Blood Diseases and 93.929, Center for Medical Rehabilitation Park, NC 27709, (919) 541–1446, Resources, National Heart, Lung, and Blood Research; 93.209, Contraception and [email protected]. Institute, 6701 Rockledge Drive, Suite 9030, Infertility Loan Repayment Program, National Name of Committee: National Institute of Bethesda, MD 20892, 301–435–0080, Institutes of Health, HHS) Environmental Health Sciences Special [email protected]. Dated: September 8, 2010. Emphasis Panel; Social Environment Effect Information is also available on the Institute’s/Center’s home page: http:// Jennifer S. Spaeth, on Mental Health. Date: September 30, 2010. www.nhlbi.nih.gov/meetings/index.htm, Director, Office of Federal Advisory Time: 3 p.m. to 4 p.m. where an agenda and any additional Committee Policy. Agenda: To review and evaluate grant information for the meeting will be posted [FR Doc. 2010–22840 Filed 9–13–10; 8:45 am] applications. when available. BILLING CODE 4140–01–P Place: NIEHS/National Institutes of Health, (Catalogue of Federal Domestic Assistance 530 Davis Drive, Morrisville, NC 27560 Program Nos. 93.233, National Center for (Telephone Conference Call). Sleep Disorders Research; 93.837, Heart and DEPARTMENT OF HEALTH AND Contact Person: Sally Eckert-Tilotta, PhD, Vascular Diseases Research; 93.838, Lung HUMAN SERVICES Scientific Review Officer, Nat. Institute of Diseases Research; 93.839, Blood Diseases Environmental Health Sciences, Office of and Resources Research, National Institutes National Institutes of Health Program Operations, Scientific Review of Health, HHS) Branch, P.O. Box 12233, Research Triangle Dated: September 8, 2010. Park, NC 27709, (919) 541–1446, National Institute of Environmental Jennifer S. Spaeth, Health Sciences; Notice of Closed [email protected]. Director, Office of Federal Advisory Meetings (Catalogue of Federal Domestic Assistance Program Nos. 93.115, Biometry and Risk Committee Policy. Pursuant to section 10(d) of the Estimation—Health Risks from [FR Doc. 2010–22838 Filed 9–13–10; 8:45 am] Federal Advisory Committee Act, as Environmental Exposures; 93.142, NIEHS BILLING CODE 4140–01–P

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DEPARTMENT OF HEALTH AND Dated: September 8, 2010. DEPARTMENT OF HEALTH AND HUMAN SERVICES Jennifer S. Spaeth, HUMAN SERVICES Director, Office of Federal Advisory National Institutes of Health Committee Policy. National Institutes of Health [FR Doc. 2010–22832 Filed 9–13–10; 8:45 am] National Institute of Nursing Research; Prospective Grant of Exclusive Notice of Closed Meetings BILLING CODE 4140–01–P License: Development of AAV5 Based Therapeutics To Treat Human Pursuant to section 10(d) of the Diseases DEPARTMENT OF HEALTH AND Federal Advisory Committee Act, as HUMAN SERVICES AGENCY: National Institutes of Health, amended (5 U.S.C. App.), notice is Public Health Service, DHHS. hereby given of the following meetings. National Institutes of Health ACTION: Notice. The meetings will be closed to the SUMMARY: This is notice, in accordance public in accordance with the National Institute of Nursing Research; with 35 U.S.C. 209(c)(1) and 37 CFR provisions set forth in sections Notice of Closed Meeting Part 404.7(a)(1)(i), that the National 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., Institutes of Health, Department of as amended. The grant applications and Pursuant to section 10(d) of the Federal Advisory Committee Act, as Health and Human Services, is the discussions could disclose contemplating the grant of an exclusive confidential trade secrets or commercial amended (5 U.S.C. App.), notice is hereby given of the following meeting. patent license to practice the invention property such as patentable material, embodied in U.S. Patent 6, 984, 517, and personal information concerning The meeting will be closed to the entitled ‘‘AAV5 and Uses Thereof,’’ U.S. individuals associated with the grant public in accordance with the Patent 7, 479, 554, entitled ‘‘AAV5 applications, the disclosure of which provisions set forth in sections Nucleic Acids’’ and PCT Application would constitute a clearly unwarranted 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., Serial No. PCT/US99/11958 and foreign invasion of personal privacy. as amended. The grant applications and equivalents thereof, entitled ‘‘AAV5 and ’’ Name of Committee: National Institute of the discussions could disclose Uses Thereof [HHS Ref. No. E–127– Nursing Research Special Emphasis Panel; confidential trade secrets or commercial 1998/0]; and U.S. Patent 6, 855, 314 ‘‘ National Research Service Award property such as patentable material, entitled AAV5 Vector for Transducing Institutional Research Training Grants. and personal information concerning Brain Cells and Lung Cells’’ [HHS Ref. Date: October 20, 2010. individuals associated with the grant No. E–072–2000/0] to Amsterdam Time: 8 a.m. to 2 p.m. applications, the disclosure of which Molecular Therapeutics, which is Agenda: To review and evaluate grant would constitute a clearly unwarranted located in Amsterdam, The Netherlands. applications. invasion of personal privacy. The Government of the United States of Place: Bethesda Marriott Suites, 6711 America has the right to license these Name of Committee: National Institute of Democracy Boulevard, Bethesda, MD 20817. patent rights. Nursing Research Special Emphasis Panel, Contact Person: Weiqun Li, MD, Scientific The prospective exclusive license Clinical Trial Review. Review Administrator, National Institute of territory may be worldwide, and the Date: October 14, 2010. Nursing Research, National Institutes of field of use may be limited to the Time: 2 p.m. to 3:30 p.m. Health, 6701 Democracy Blvd., Ste. 710, development and sale of AAV5 based Agenda: To review and evaluate grant Bethesda, MD 20892, (301) 594–5966, therapeutic products to be delivered to applications. [email protected]. the brain, eyes and liver for treatment of Place: National Institutes of Health, One Name of Committee: National Institute of diseases originated from these organs, as Democracy Plaza, 6701 Democracy claimed in the Licensed Patent Rights. Nursing Research Special Emphasis Panel; Boulevard, Bethesda, MD 20892. (Telephone DATES: Only written comments and/or Informed-Decision Making in Young Conference Call). applications for a license which are Adolescent At-Risk for HIV/AIDS. Contact Person: Tamizchelvi Thyagarajan, received by the NIH Office of Date: November 2, 2010. PhD, Scientific Review Officer, National Technology Transfer on or before Time: 8 a.m. to 5 p.m. Institute of Nursing Reserach, National Agenda: To review and evaluate grant Institutes of Health, 6701 Democracy Blvd, October 14, 2010 will be considered. applications. Rm. 710, Bethesda, MD 20892, (301) 594– ADDRESSES: Requests for copy of the Place: Bethesda Marriott Suites, 6711 0343, [email protected]. patent, inquiries, comments, and other Democracy Boulevard, Bethesda, MD 20817. Any interested person may file written materials relating to the contemplated Contact Person: Mario Rinaudo, MD, comments with the committee by forwarding exclusive license should be directed to: Scientific Review Officer, Office of Review, the statement to the Contact Person listed on Betty B. Tong, PhD., Senior Licensing National Inst of Nursing Research, National this notice. The statement should include the and Patenting Manager, Office of Institutes of Health, 6701 Democracy Blvd name, address, telephone number and when Technology Transfer, National Institutes (DEM 1), Suite 710, Bethesda, MD 20892, applicable, the business or professional of Health, 6011 Executive Boulevard, 301–594–5973, [email protected]. affiliation of the interested person. Suite 325, Rockville, MD 20852–3804; Any interested person may file written (Catalogue of Federal Domestic Assistance Telephone: (301) 594–6565; Facsimile: comments with the committee by forwarding Program Nos. 93.361, Nursing Research, (301) 402–0220; E-mail: the statement to the Contact Person listed on National Institutes of Health, HHS) [email protected]. this notice. The statement should include the Dated: September 8, 2010. SUPPLEMENTARY INFORMATION: The name, address, telephone number and when technology describes an adeno- Jennifer S. Spaeth, applicable, the business or professional associated virus 5 (AAV5), vectors and affiliation of the interested person. Director, Office of Federal Advisory particles derived from the virus; as well (Catalogue of Federal Domestic Assistance Committee Policy. as methods of delivering nucleic acids Program Nos. 93.361, Nursing Research, [FR Doc. 2010–22831 Filed 9–13–10; 8:45 am] to a cell by using the AAV5 vectors and National Institutes of Health, HHS) BILLING CODE 4140–01–P particles. More specifically, the

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technology provides the methods of Which Has High Cytotoxic Activity’’ be directed to: David A. Lambertson, delivering nucleic acids to cells of [HHS Ref. E–269–2009/0–US–01], U.S. PhD., Senior Licensing and Patenting specific regions, tissues and cell types of Patent Application 60/969,929 entitled Manager, Office of Technology Transfer, the central nervous system (CNS); as ‘‘Deletions in Domain II of Pseudomonas National Institutes of Health, 6011 well as to cells of the lung, by using Exotoxin A That Reduce Non-Specific Executive Boulevard, Suite 325, AAV5 vectors and particles. The Toxicity’’ [HHS Ref. E–292–2007/0–US– Rockville, MD 20852–3804; Telephone: specific brain cells that are targeted by 01], U.S. Patent Application 60/703,798 (301) 435–4632; Facsimile: (301) 402– AAV5 belong to both non-neuronal/glial entitled ‘‘Mutated Pseudomonas 0220; E-mail: [email protected]. cells and neuronal cells, such as Exotoxins with Reduced Antigenicity’’ SUPPLEMENTARY INFORMATION: These cerebellar cells and ependymal cells. [HHS Ref. E–262–2005/0–US–01], U.S. inventions concern immunotoxins and The specific lung cells targeted by Patent Application 60/160,071 entitled targeted toxins, and methods of using AAV5 are the apical surfaces of the ‘‘Immunoconjugates Having High the immunotoxins/targeted toxins for airway such as alveolar cells. Binding Affinity’’ [HHS Ref. E–139– the treatment of (a) mesothelin- The prospective exclusive license will 1999/0–US–01], U.S. Patent Application expressing cancers (such as be royalty bearing and will comply with 60/067,175 entitled ‘‘Antibodies, mesothelioma, ovarian cancer and the terms and conditions of 35 U.S.C. Including Fv Molecules, and pancreatic cancer), (b) CD300LF- 209 and 37 CFR 404.7. The prospective Immunoconjugates Having High expressing cancers (such as acute exclusive license may be granted unless Binding Affinity for Mesothelin and myelogenous leukemia (AML)) or (c) within thirty (30) days from the date of Methods for Their Use’’ [HHS Ref. E– Annexin A2-expressing cancers (such as this published notice, the NIH receives 021–1998/0–US–01], U.S. Patent glioma, ovarian cancer and pancreatic written evidence and argument that Application 60/010,166 entitled cancer). Several specific immunotoxins/ establishes that the grant of the license ‘‘Molecular Cloning of Mesothelin, a targeted toxins are covered by this would not be consistent with the Differentiation Antigen Present on technology, including MORAb-009–PE– requirements of 35 U.S.C. 209 and 37 Mesothelium, Mesotheliomas and LR/8X, anti-CD300LF–PE–LR/8X and CFR 404.7. Ovarian Cancers’’ [HHS Ref. E–002– Annexin A2-targeted PE–LR/8X. Applications for a license in the field 1996/0–US–01], PCT Application PCT/ Each of these immunotoxins/targeted of use filed in response to this notice US97/00224 entitled ‘‘Mesothelin toxins comprises (1) a toxin moiety (PE– will be treated as objections to the grant Antigen and Methods and Kits for LR/8X) that is a modified version of the of the contemplated exclusive license. Targeting It’’ [HHS Ref. E–002–1996/1– Pseudomonas exotoxin A (‘‘PE’’) and (2) Comments and objections submitted to PCT–01], U.S. Patent 5,747,654 entitled either (a) an antibody fragment domain this notice will not be made available ‘‘Recombinant Disulfide-Stabilized that is capable of binding to mesothelin, for public inspection and, to the extent Polypeptide Fragments Having Binding (b) an antibody fragment domain that is permitted by law, will not be released Specificity’’ [HHS Ref. E–163–1993/0– capable of binding to CD300LF, or (c) a under the Freedom of Information Act, US–01], PCT application PCT/US96/ peptide that is capable of binding to 5 U.S.C. 552. 16327 entitled ‘‘Immunotoxin Annexin A2. The toxin moiety been Dated: September 7, 2010. Containing A Disulfide-Stabilized modified in various manners in order Antibody Fragment’’ [HHS Ref. E–163– Richard U. Rodriguez, reduce immunogenicity, thereby 1993/2–PCT–01], U.S. Patent improving the therapeutic value of PE Director, Division of Technology Development Application 07/596,291 entitled ‘‘A and Transfer, Office of Technology Transfer, while maintaining its ability to trigger National Institutes of Health. Monoclonal Antibody’’ [HHS reference cell death. Since mesothelin, CD300LF E–195–1990/0–US–01], and all [FR Doc. 2010–22833 Filed 9–13–10; 8:45 am] and Annexin A2 are each preferentially continuing applications and foreign BILLING CODE 4140–01–P expressed on certain types of cancer counterparts, to Morphotek, Inc. The cells, the targeting domains of the patent rights in these inventions have immunotoxins/targeted toxins (MORAb- DEPARTMENT OF HEALTH AND been assigned to and/or exclusively 009, anti-CD300LF and Annexin A2 HUMAN SERVICES licensed to the Government of the binding peptide) allows the United States of America. immunotoxins/targeted toxins to National Institutes of Health The prospective exclusive license selectively bind to certain cancer cells territory may be worldwide, and the so that only the cancer cells are killed. Prospective Grant of Exclusive field of use may be limited to: This results in an effective therapeutic License: The Development of The use of the MORAb-009–PE–LR/8X strategy with fewer side effects due to Immunotoxins/Targeted Toxins for the immunotoxin for the treatment of less non-specific killing of cells. Treatment of Human Cancers mesothelin-expressing cancers, the use of the The prospective exclusive license will anti-CD300LF–PE/LR/8X immunotoxin for AGENCY: National Institutes of Health, the treatment of CD300LF-expressing cancers be royalty bearing and will comply with Public Health Service, DHHS. such as acute myelogenous leukemia (AML), the terms and conditions of 35 U.S.C. ACTION: Notice. and the use of annexin A2-targeted PE–LR/ 209 and 37 CFR 404.7. The prospective 8X toxin for the treatment of annexin A2- exclusive license may be granted unless SUMMARY: This is notice, in accordance expressing cancers such as glioma, ovarian the NIH receives written evidence and with 35 U.S.C. 209(c)(1) and 37 CFR cancer and pancreatic cancer. argument that establishes that the grant 404.7(a)(1)(i), that the National DATES: Only written comments and/or of the license would not be consistent Institutes of Health, Department of applications for a license which are with the requirements of 35 U.S.C. 209 Health and Human Services, is received by the NIH Office of and 37 CFR 404.7 within thirty (30) contemplating the grant of an exclusive Technology Transfer on or before days from the date of this published patent license to practice the inventions October 14, 2010 will be considered. notice. embodied in U.S. Patent Application ADDRESSES: Requests for copies of the Applications for a license in the field 61/241,620 entitled ‘‘Development of an patent application, inquiries, comments, of use filed in response to this notice Immunotoxin in Which All B–Cell and other materials relating to the will be treated as objections to the grant Epitopes Have Been Removed and contemplated exclusive license should of the contemplated exclusive license.

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Comments and objections submitted to DEPARTMENT OF HEALTH AND regulations to remove portions reflecting this notice will not be made available HUMAN SERVICES approval of these NADAs. for public inspection and, to the extent DATES: Withdrawal of approval is permitted by law, will not be released Food and Drug Administration effective September 24, 2010. under the Freedom of Information Act, [Docket No. FDA–2010–N–0425] FOR FURTHER INFORMATION CONTACT: John 5 U.S.C. 552. Bartkowiak, Center for Veterinary Withdrawal of Approval of New Animal Dated: September 7, 2010. Medicine (HFV–212), Food and Drug Drug Applications; Chloramphenicol, Richard U. Rodriguez, Administration, 7519 Standish Pl., Lincomycin, Pyrantel Tartrate, and Rockville, MD 20855, 240–276–9079, Director, Division of Technology Development Tylosin Phosphate and Sulfamethazine email: [email protected]. & Transfer, Office of Technology Transfer, National Institutes of Health. AGENCY: Food and Drug Administration, SUPPLEMENTARY INFORMATION: John J. [FR Doc. 2010–22844 Filed 9–13–10; 8:45 am] HHS. Ferrante, 11 Fairway Lane, Trumbull, CT 06611; International Nutrition, Inc., BILLING CODE 4140–01–P ACTION: Notice. 7706 ‘‘I’’ Plaza, Omaha, NE 68127; and SUMMARY: The Food and Drug Feed Service Co., Inc., 303 Lundin Administration (FDA) is withdrawing Blvd., P.O. Box 698, Mankato, MN approval of four new animal drug 56001 have requested that FDA applications (NADAs). In a final rule withdraw approval of the four NADAs published elsewhere in this issue of the listed in table 1 because they are no Federal Register, FDA is amending the longer manufactured or marketed:

TABLE 1.

21 CFR Cite (Sponsor’s Drug Labeler Sponsor NADA Number Product (Established Name of Drug) Code)

John J. Ferrante, 11 Fairway Lane, Trum- NADA 65–137 AMPHICOL–V Capsules (chlor- § 520.390b (058034) bull, CT 06611 amphenicol)

International Nutrition, Inc., 7706 ‘‘I’’ Plaza, NADA 121–337 INI Swine Ban-Wormer B–9.6 BA. § 558.485 (043733) Omaha, NE 68127 (pyrantel tartrate)

International Nutrition, Inc., 7706 ‘‘I’’ Plaza, NADA 132–923 LINCO 8/LINCO 20 (lincomycin) § 558.325 (043733) Omaha, NE 68127

Feed Service Co., Inc., 303 Lundin Blvd., NADA 138–342 TYLAN 5 Sulfa-G Premix (tylosin § 558.630 (030841) P.O. Box 698, Mankato, MN 56001 and sulfamethazine)

Therefore, under authority delegated DEPARTMENT OF HOMELAND September 2, 2010, the President issued to the Commissioner of Food and Drugs SECURITY an emergency declaration under the and redelegated to the Center for authority of the Robert T. Stafford Veterinary Medicine, and in accordance Federal Emergency Management Disaster Relief and Emergency with § 514.116 Notice of withdrawal of Agency Assistance Act, 42 U.S.C. 5121–5207 approval of application (21 CFR [Internal Agency Docket No. FEMA–3315– (the Stafford Act), as follows: 514.116), notice is given that approval EM; Docket ID FEMA–2010–0002] I have determined that the emergency of NADAs 65–137, 121–337, 132–923, conditions in certain areas of the and 138–342, and all supplements and Massachusetts; Emergency and Commonwealth of Massachusetts resulting amendments thereto, is hereby Related Determinations from Hurricane Earl beginning on September 1, 2010, and continuing, are of sufficient withdrawn, effective September 24, AGENCY: Federal Emergency severity and magnitude to warrant an 2010. Management Agency, DHS. emergency declaration under the Robert T. In a final rule published elsewhere in ACTION: Notice. Stafford Disaster Relief and Emergency Assistance Act, 42 U.S.C. 5121 et seq. (‘‘the this issue of the Federal Register, FDA SUMMARY: This is a notice of the Stafford Act’’). Therefore, I declare that such is amending the animal drug regulations Presidential declaration of an an emergency exists in the Commonwealth of to reflect the withdrawal of approval of emergency for the Commonwealth of Massachusetts. these NADAs. You are authorized to provide appropriate Massachusetts (FEMA–3315–EM), dated assistance for required emergency measures, Dated: September 1, 2010. September 2, 2010, and related authorized under Title V of the Stafford Act, Bernadette Dunham, determinations. to save lives and to protect property and Director, Center for Veterinary Medicine. DATES: Effective Date: September 2, public health and safety, and to lessen or avert the threat of a catastrophe in the [FR Doc. 2010–22809 Filed 9–13–10; 8:45 am] 2010. designated areas. Specifically, you are BILLING CODE 4160–01–S FOR FURTHER INFORMATION CONTACT: authorized to provide assistance for Peggy Miller, Recovery Directorate, emergency protective measures (Category B), Federal Emergency Management including direct Federal assistance, under the Agency, 500 C Street, SW., Washington, Public Assistance program. This assistance excludes regular time costs for subgrantees’ DC 20472, (202) 646–3886. regular employees. SUPPLEMENTARY INFORMATION: Notice is Consistent with the requirement that hereby given that, in a letter dated Federal assistance is supplemental, any

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Federal funds provided under the Stafford SUMMARY: This notice amends the notice SUPPLEMENTARY INFORMATION: The notice Act for Public Assistance will be limited to of an emergency declaration for the of a major disaster declaration for the 75 percent of the total eligible costs. In order State of North Carolina (FEMA–3314– State of Wisconsin is hereby amended to to provide Federal assistance, you are hereby EM), dated September 1, 2010, and include the following area among those authorized to allocate from funds available for these purposes such amounts as you find related determinations. areas determined to have been adversely necessary for Federal emergency assistance DATES: Effective Date: September 4, affected by the event declared a major and administrative expenses. 2010. disaster by the President in his Further, you are authorized to make declaration of August 11, 2010. FOR FURTHER INFORMATION CONTACT: changes to this declaration for the approved Calumet County for Public Assistance. assistance to the extent allowable under the Peggy Miller, Office of Response and The following Catalog of Federal Domestic Stafford Act. Recovery, Federal Emergency Management Agency, 500 C Street, SW., Assistance Numbers (CFDA) are to be used The Federal Emergency Management Washington, DC 20472, (202) 646–3886. for reporting and drawing funds: 97.030, Agency (FEMA) hereby gives notice that Community Disaster Loans; 97.031, Cora SUPPLEMENTARY INFORMATION: pursuant to the authority vested in the Notice is Brown Fund; 97.032, Crisis Counseling; Administrator, Department of Homeland hereby given that the incident period for 97.033, Disaster Legal Services; 97.034, Security, under Executive Order 12148, this emergency is closed effective Disaster Unemployment Assistance (DUA); September 4, 2010. 97.046, Fire Management Assistance Grant; as amended, James N. Russo, of FEMA 97.048, Disaster Housing Assistance to (The following Catalog of Federal Domestic is appointed to act as the Federal Individuals and Households In Presidentially Assistance Numbers (CFDA) are to be used Coordinating Officer for this declared Declared Disaster Areas; 97.049, for reporting and drawing funds: 97.030, emergency. Presidentially Declared Disaster Assistance— The following areas of the Community Disaster Loans; 97.031, Cora Brown Fund; 97.032, Crisis Counseling; Disaster Housing Operations for Individuals Commonwealth of Massachusetts have 97.033, Disaster Legal Services; 97.034, and Households; 97.050 Presidentially been designated as adversely affected by Disaster Unemployment Assistance (DUA); Declared Disaster Assistance to Individuals this declared emergency: 97.046, Fire Management Assistance Grant; and Households—Other Needs; 97.036, Disaster Grants—Public Assistance Barnstable, Bristol, Dukes, Essex, 97.048, Disaster Housing Assistance to Individuals and Households In Presidentially (Presidentially Declared Disasters); 97.039, Middlesex, Nantucket, Norfolk, Plymouth, Hazard Mitigation Grant. Suffolk, and Worcester Counties for Declared Disaster Areas; 97.049, emergency protective measures (Category B), Presidentially Declared Disaster Assistance— W. Craig Fugate, including direct Federal assistance, under the Disaster Housing Operations for Individuals and Households; 97.050, Presidentially Administrator, Federal Emergency Public Assistance program. Management Agency. The following Catalog of Federal Domestic Declared Disaster Assistance to Individuals [FR Doc. 2010–22854 Filed 9–13–10; 8:45 am] Assistance Numbers (CFDA) are to be used and Households—Other Needs; 97.036, for reporting and drawing funds: 97.030, Disaster Grants—Public Assistance BILLING CODE 9111–23–P Community Disaster Loans; 97.031, Cora (Presidentially Declared Disasters); 97.039, Brown Fund; 97.032, Crisis Counseling; Hazard Mitigation Grant.) DEPARTMENT OF HOMELAND 97.033, Disaster Legal Services; 97.034, W. Craig Fugate, Disaster Unemployment Assistance (DUA); SECURITY 97.046, Fire Management Assistance Grant; Administrator, Federal Emergency 97.048, Disaster Housing Assistance to Management Agency. Customs and Border Protection Individuals and Households In Presidentially [FR Doc. 2010–22852 Filed 9–13–10; 8:45 am] [Docket No. USCBP–2007–0099; CBP Dec. Declared Disaster Areas; 97.049, BILLING CODE 9111–23–P Presidentially Declared Disaster Assistance— 10–31] Disaster Housing Operations for Individuals Testing Method of Pressed and and Households; 97.050, Presidentially DEPARTMENT OF HOMELAND Toughened (Specially Tempered) Declared Disaster Assistance to Individuals SECURITY and Households—Other Needs; 97.036, Glassware Disaster Grants—Public Assistance Federal Emergency Management AGENCY: U.S. Customs and Border (Presidentially Declared Disasters); 97.039, Agency Hazard Mitigation Grant. Protection, Department of Homeland [Docket ID FEMA–2010–0002; Internal Security. W. Craig Fugate, Agency Docket No. FEMA–1933–DR] ACTION: Notice of method CBP uses to Administrator, Federal Emergency test pressed and toughened (specially Management Agency. Wisconsin; Amendment No. 1 to Notice tempered) glassware for tariff [FR Doc. 2010–22853 Filed 9–13–10; 8:45 am] of a Major Disaster Declaration classification purposes. BILLING CODE 9111–23–P AGENCY: Federal Emergency SUMMARY: This document adopts Management Agency, DHS. modifications to the test method DEPARTMENT OF HOMELAND ACTION: Notice. currently applied by U.S. Customs and SECURITY SUMMARY: This notice amends the notice Border Protection (‘‘CBP’’) for the testing of a major disaster declaration for the of pressed and toughened (specially Federal Emergency Management tempered) glassware, as set forth in Agency State of Wisconsin (FEMA–1933–DR), dated August 11, 2010, and related Treasury Decision (T.D.) 94–26 which [Docket ID FEMA–2010–0002; Internal determinations. was published in the Federal Register Agency Docket No. FEMA–3314–EM] on March 22, 1994. This document sets DATES: Effective Date: September 7, forth revised criteria for interpreting the North Carolina; Amendment No. 2 to 2010. results obtained from the cutting test for Notice of an Emergency Declaration FOR FURTHER INFORMATION CONTACT: opaque glassware and provides an AGENCY: Federal Emergency Peggy Miller, Recovery Directorate, interpretation of breakage for that test. Management Agency, DHS. Federal Emergency Management In addition, this document reinstates a Agency, 500 C Street, SW., Washington, previously used testing method, the ACTION: Notice. DC 20472, (202) 646–3886. center punch test, and provides a

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description of the center punch ‘‘macroscopic analysis,’’ ‘‘thermal shock references to tempered soda lime, apparatus to be used for that test. The test,’’ and ‘‘evaluation of temper.’’ The borosilicate, and fluorosilicate glass that final CBP test method for pressed and evaluation of temper test consists of a are currently in the test because the toughened (specially tempered) polariscopic examination for composition of the glass is not relevant glassware for tariff classification transparent or translucent glassware and for testing purposes. purposes is set forth in its entirety in a cutting test for opaque glassware. The Proposal to Add Center Punch Test this document. proposed modification of the test DATES: CBP will begin applying this method was limited to the cutting test The notice of January 9, 2008, also revised test method on glassware for opaque glassware. proposed to reinstate the center punch entered, or withdrawn from warehouse, Proposed Modifications test. It was noted in the proposal that it for consumption effective October 14, is dangerous for an analyst to perform 2010. On January 9, 2008, CBP published a the cutting test on a sample that is less notice in the Federal Register (73 FR FOR FURTHER INFORMATION CONTACT: than five inches in diameter or five 1640) which proposed modifications to inches wide and that it would be Margaret Chinn, Office of Information the method applied for the testing of and Technology, Laboratories and preferable to use the center punch test pressed and toughened (specially in these cases. The center punch Scientific Services, (202) 344–1566; tempered) glassware as set forth in T.D. Stephen Cassata, Office of Information apparatus to be used to perform the test 94–26 and solicited public comments. would be a slender tool approximately and Technology, Laboratories and The notice proposed modifications to Scientific Services, (202) 344–1309. 8 to 12 inches in length with one end the cutting test for opaque glassware but tapered to a point. The tool would be SUPPLEMENTARY INFORMATION: did not propose changes to the testing long enough to allow for its insertion Background procedures used for the macroscopic into tall-form tumblers and other analysis test, thermal shock test, and articles of similar shape while This document sets forth polariscopic examination aspect of the modifications to the criteria utilized by permitting the nonpointed end to evaluation of temper test. The notice extend above the rim. This would be U.S. Customs and Border Protection also proposed to reinstate the ‘‘center necessary for handling and safety (‘‘CBP’’) to test certain glassware articles punch test’’ and provided a description purposes when performing the center to determine whether they are ‘‘pressed of the center punch apparatus that punch test. The pointed end of the and toughened (specially tempered)’’ for would be used for the proposed test. center punch would not be so sharp so tariff classification purposes under the Finally, the notice proposed to allow for as to chip the glassware on contact Harmonized Tariff Schedule of the the optional use of additional tests by without applying pressure. United States (‘‘HTSUS’’). The glassware CBP that would be used only to verify articles subject to these testing the results obtained from the other In order to perform the center punch procedures are generally imported into testing procedures. The modifications test under the proposal, a sample would the United States under subheadings set forth in the January 9, 2008, notice initially be set on a solid and level 7013.28.05, 7013.37.05, 7013.42.10, are described in greater detail below. surface. An analyst would then place 7013.49.10, and 7013.99.20, HTSUS. the pointed end of the center punch Articles of ‘‘safety glass, consisting of Proposed Changes to Cutting Test for vertically against the inside center toughened (tempered) or laminated Opaque Glassware bottom or heel of the article. The analyst glass’’ that are normally imported under The cutting test for opaque glassware would strike the dull end of the punch heading 7007, HTSUS (e.g., is used for opaque glassware and with a hammer, using blows of architectural plate glass and vehicle translucent glassware that cannot be gradually increasing severity until windshields), are not within the examined polariscopically because they breakage occurs. The breakage pattern, purview of this final notice. do not transmit adequate polarized approximate number, and relative shape Information regarding the apparatus light. In the notice of January 9, 2008, and size of the fragments would then be used, glass sample preparation, and the it was proposed to revise the criteria noted. Thereafter, the breakage pattern methods employed by CBP to test used to interpret the results obtained and/or typical fragments would be glassware articles to determine whether from the cutting test for opaque photographed. It would only be they are pressed and toughened glassware. In addition, it was proposed necessary for the broken sample to (specially tempered) was previously set to add an interpretation of breakage in exhibit ‘‘some’’ dicing, crazing, or forth in the Federal Register (59 FR the test because the guidelines set forth graveling in order to be considered 13531, March 22, 1994; see also, 59 FR in T.D. 94–26 did not clearly explain tempered for CBP’s classification 16895, April 8, 1994, correcting ‘‘T.D. how breakage should be interpreted. purposes. ‘‘Some’’ would be considered 94–25’’ to ‘‘T.D. 94–26’’). Under T.D. 94– Under the proposal, CBP would to be any diced, crazed, or graveled 26, photographic equipment, interpret the test such that the presence fragments yielded by the broken sample polariscopes, tile saws (or similar table- of ‘‘some’’ dicing or crazing would be that are more than just fugitive diced, mounted circular saws), or other sufficient to determine that a glass crazed, or graveled fragments. article has been specially tempered for apparatus and supplies, such as Proposal to Add Option to Use tariff classification purposes. Under this calipers, ovens, and water baths, can be Additional Tests used to test subject glassware articles. standard, ‘‘some’’ would be considered With respect to sample preparation, T.D. to be any diced, crazed (gravel that In addition, the notice of January 9, 94–26 states that a representative remains tenuously in contact with 2008, proposed to provide for the number of samples should be analyzed neighboring pieces), or graveled optional use of additional tests by CBP. but recognizes the possibility that only (presence of small cubes of The additional tests would be used by one sample may be available for testing. approximately equal dimensions on all CBP only to verify the results obtained The method to be used for the testing six sides) fragment yielded from the cut from the other testing procedures. It was of pressed and toughened (specially sample that is more than just a fugitive stated that the additional tests would tempered) glassware under T.D. 94–26 diced, crazed, or graveled fragment. In facilitate the overall testing process by consists of three tests. They are the addition, it was proposed to remove the ensuring that the results obtained from

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the other testing procedures are reinstatement into the method for the test in these situations will be accurate. testing of pressed and toughened interpreted in the same manner as (specially tempered) glassware is results obtained from the cutting test. Discussion of Comments necessary. In support of this Comment: Comments were solicited in the notice determination, CBP recognizes that the of January 9, 2008, and the comment reinstatement of the center punch test The commenter states that the period closed on March 17, 2008. One will provide CBP analysts with a test proposed breakage analysis for commenter responded during this time that can be used in cases where the tempered glassware subjected to the period on behalf of two clients, a cutting test yields inconclusive results cutting or center punch test (particularly manufacturer and separate importer of or when it would be dangerous to use fluorosilicate which has characteristics tempered glassware. The commenter the cutting test because of the unique to its crystalline structure) is too submitted two letters, a set of dimensions of the sample. subjective and in many instances would photographs, and a series of ten short As noted above, one instance where result in an erroneous conclusion that a videos. A description of the comments the center punch test will be used is tempered article is not tempered. With and other material in the submission, as when the cutting test yields respect to the proposed breakage well as CBP’s related analysis, follows. inconclusive results. In this situation, analysis, the commenter specifically the results of the center punch test will states that both annealed and tempered Comment: be interpreted in conjunction with the fluorosilicate plates which are subjected The commenter asserts that the results of the cutting test in order to to the center punch test break into small standard proposed for the testing of make the correct classification pizza-shaped pieces, the only real pressed and toughened (specially determination. CBP believes this difference being that the tempered tempered) glassware set forth in the additional test is required because the plates take more force to break and yield notice of January 9, 2008, would CBP Laboratory occasionally tests somewhat smaller pizza-shaped pieces. produce erroneous results and would samples that break into several large In addition, other types of articles may not meet certain parameters established pieces when subjected to the cutting react differently when subjected to the by the courts for testing methodology. test. Without the benefit of a second test center punch test. For example, a to confirm whether the tested glassware tempered mug which is subjected to the CBP’s Response: is actually pressed and toughened center punch test may break into The commenter submitted (specially tempered) in these cases, the irregular pieces smaller than those of an photographs and videos in an attempt to analyst is constrained under the current annealed mug. demonstrate that CBP’s proposed testing standard to classify the article as The commenter indicates that their method for the testing of pressed and ‘‘tempered’’ even though there may be client has performed repeated center toughened (specially tempered) doubts as to whether the article is punch tests on the full range of glassware would produce erroneous actually tempered. Accordingly, the fluorosilicate articles which they results. As discussed further below, revised standard set forth in this manufacture and have confirmed that however, CBP does not find the document will afford the CBP analyst other than the differences in the commenter’s submission persuasive in with the opportunity to utilize the appearance of the pieces noted above, this regard because the proposed center punch test in cases where the they did not observe dicing or crazing modifications to the testing method results of the cutting test are of tempered fluorosilicate glass. The would actually introduce a higher inconclusive (i.e., if the sample breaks commenter submitted various degree of accuracy into the testing into several large pieces when subjected photographs and ten short videos in process. In addition, CBP believes that to the cutting test). order to demonstrate the difficulty this testing method would withstand The second instance where the center associated with classifying glass as judicial scrutiny because the generally punch test will be employed under the tempered or non-tempered based on accepted methods in the standard are proposed revised method is cases where breakage patterns. The commenter states accurate, testable, and have been subject an article is too small to safely analyze that the photographs depict annealed to peer review and publication. with the cutting test. CBP believes this and tempered fluorosilicate (opal) and is necessary because the integrity of a soda lime plates subjected to the center Comment: tempered glassware article can fail punch test. The commenter indicates The commenter states that the center during a cutting test, potentially that of the ten videos submitted, two are punch test is not a useful or reliable test resulting in serious injury to the CBP of the center punch test performed on for tempered glassware and opposes its analyst. Accordingly, the revised tempered fluorosilicate glass plates; two reinstatement by CBP. The commenter method will afford the analyst the are of the center punch test performed expressed its concern that CBP did not opportunity to utilize the center punch on annealed fluorosilicate glass plates; make clear in the notice of January 9, test on articles considered ‘‘too small’’ to one is of the center punch test 2008, whether the center punch test safely perform a cutting test. The performed on a tempered soda lime would be used in lieu of, or in addition revised method will make clear that glass plate; one is of the center punch to, the cutting test. Moreover, if the glassware articles considered too small test performed on an annealed soda lime center punch is intended to be used in to analyze safely with a cutting test will glass plate; one is of a hammer striking addition to the cutting test, the be those that are smaller than five a tempered fluorosilicate plate; one is of commenter questions the relative weight inches in diameter or five inches wide. a hammer striking an annealed CBP will assign to each test in If a glassware article is smaller than five fluorosilicate plate; one is of the center determining whether an item is inches in diameter or five inches wide punch test performed on a tempered considered tempered. and the analyst chooses to use the fluorosilicate mug; and one is of the center punch test, a cutting test will not center punch test performed on an CBP’s Response: be performed on the article and the annealed fluorosilicate mug. CBP’s position is that the center results obtained from the center punch The commenter believes that the punch test is useful and reliable, and test will be considered independently. photographs and videos prove that the CBP has determined that its Results obtained from the center punch breakage differences resulting when the

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center punch test is performed on commenter, CBP initially agrees that in This new section also clarifies that tempered versus annealed glass can be some cases the tempered glassware pressed and toughened (specially so subtle as to be virtually non-existent. depicted in the submissions does not tempered) glassware articles are The commenter specifically notes that appear to craze, dice, or gravel when normally imported under subheadings tempered fluorosilicate glass plates will impacted with a center punch. 7013.28.05, 7013.37.05, 7013.42.10, not exhibit any dicing, graveling, or However, it is noted that no evidence 7013.49.10, and 7013.99.20, HTSUS, crazing when cut or center punched. In was submitted to demonstrate that the and that articles normally imported addition, the commenter states that glassware subjected to testing in the under heading 7007, HTSUS, such as dicing, crazing, or graveling are submissions was, in fact, tempered. In windshields, are not within the purview characteristics that are generally addition, CBP notes that the of the method. Finally, this document exhibited in heat-treated flat glass, not experiments were not technically makes other minor editorial changes to flat glassware. The commenter contends accurate because only a hammer was the test method. The revised test that because tempered dinnerware is used in some of the tests. Accordingly, method, set forth in its entirety below, very different in shape and thickness, the criteria for interpreting breakage for will be employed by CBP on glassware dicing, crazing or graveling does not the cutting test for opaque glassware entered, or withdrawn from warehouse, ordinarily occur in soda lime glass and the reinstated center punch test, as for consumption on or after 30 days dinnerware and never occurs in set forth in the January 9, 2008, notice, from the date of publication of this tempered fluorosilicate glass will not be eliminated from the revised document in the Federal Register. dinnerware. Moreover, the commenter method for the testing of pressed and states that there is no evidence that glass toughened (specially tempered) TESTING METHOD OF PRESSED AND dinnerware should dice, craze, or gravel glassware. TOUGHENED (SPECIALLY when cut. TEMPERED) GLASSWARE Comment: SAFETY PRECAUTION: CERTAIN CBP’s Response: The commenter states that CBP’s PROCEDURES DESCRIBED IN THIS CBP disagrees with the commenter’s proposal to use additional tests to verify METHOD POSE A POTENTIAL statement that the analysis of breakage the results of the other tests is improper HAZARD TO PERSONNEL FROM THE patterns for tempered glassware because tests that are never disclosed or PROXIMITY TO OR HANDLING OF subjected to the cutting or center punch described cannot be properly BREAKING OR BROKEN GLASS. THIS tests is too subjective to be deemed scrutinized. In addition, the commenter METHOD SHALL NOT BE reliable. In addition, CBP notes that states that CBP has not explained what UNDERTAKEN WITHOUT some degree of temper must be visually weight would be assigned to the SUPERVISORY CONCURRENCE THAT evident for a glassware article to be additional tests for purposes of applying ADEQUATE PRECAUTIONS FOR considered ‘‘toughened (specially the testing methodology. PERSONAL SAFETY HAVE BEEN tempered)’’ and also maintains that a IMPLEMENTED. tempered glassware article will craze, CBP’s Response: dice, or gravel when broken. CBP agrees that the verification of SCOPE AND FIELD OF APPLICATION CBP notes that the degree of temper additional test results would be This method employs macroscopic in glassware is roughly equivalent to the problematic for the reasons the analysis, thermal shock testing, and strength increase of the glass produced commenter provides. Accordingly, evaluation of temper to determine if a by the compression on the outside of the additional tests will not be used to glassware item has been pressed and article and that this increase in verify the results of the other tests, as toughened (specially tempered) for U.S. compression is compensated for by a reflected in the revised method to be Customs and Border Protection (CBP)’s greater amount of internal tension. applied for the testing of pressed and tariff classification purposes. CBP’s view is that, at some point, the toughened (specially tempered) These glassware articles are normally appearance of dicing indicates a certain glassware which is set forth below. imported under subheading numbers amount of achievement of strength Conclusion 7013.28.05, 7013.37.05, 7013.42.10, through tempering and that 7013.49.10, and 7013.99.20 of the progressively smaller fragments After analyzing the comments and Harmonized Tariff Schedule of the corresponds to even higher levels of other material contained in the United States (HTSUS). Articles of temper. The factor affecting whether an submission discussed above and further ‘‘safety glass, consisting of toughened interior crack branches into other review of the matter, CBP has decided (tempered) * * * glass,’’ normally fractures is principally the state of the to adopt, except for the use of additional imported under heading 7007 of the stress at those interior points through tests as discussed in the comment HTSUS, (e.g., vehicle windshields) are which the crack propagates. CBP’s section above, the modifications to the not within the purview of this method. criterion for ‘‘toughened (specially test method used by CBP for the testing tempered)’’ translates roughly into the of pressed and toughened (specially 1. APPARATUS: requirement that the state of tensile tempered) glassware as proposed in the Photographic Equipment: strength in the interior of the article due notice of January 9, 2008 (73 FR 1640) A camera (equipped with flash or to tempering should be high enough to for the cutting test for opaque glassware supplemented by adequate lighting) is produce this branching which is and for the reinstatement of the center recommended for making a permanent exhibited by visible dicing, crazing, or punch test for articles less than five record of unusual samples and test graveling during breakage through at inches in diameter and for inconclusive results. least part of the article. In this respect, results from the cutting test. In addition, Polariscope: whether it is flat glass or dinner this document inserts a new section, The basic instrument consists of a glassware, it is a common axiom that a ‘‘Scope and Field of Application’’, into light source, a polarizer, and an tempered glassware article will craze, the test method. This new section analyzer. The addition of a full-wave dice, or gravel when it breaks. merely clarifies that the method retardation, or tint, plate permits With respect to the photographic and employs macroscopic analysis, thermal observation of color-enhanced stress video evidence submitted by the shock testing, and evaluation of temper. patterns. Ideally, the working space, or

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distance between the polarizer and the • The presence of ribs, handles, should be conducted only on analyzer, should be large enough to flutes, etc.; transparent or translucent articles. This accommodate samples ranging up to • The size of the rim or opening, if method is not applicable to opaque eight inches in height. applicable; items or to articles which have been Tile Saw (or Similar Table-Mounted • The size of the most bulbous tempered by a process other than Circular Saw): portion of the article; thermal tempering. In addition, some A tile saw having a cutting head • Any other unusual characteristics translucent articles will not transmit which can be adjusted horizontally and (e.g., chips, cracks). enough polarized light to permit the vertically and which is equipped with Interpretation of Visual Inspection observation of stress patterns; these an 8 to 12 inch diameter continuous rim Results: Characteristics such as mold items should be evaluated for temper diamond blade designed for wet cutting marks, ribs, handles, and flutes are often using the Cutting Test. glass is adequate for testing opaque indicative of a pressed rather than • Place the full-wave retardation plate glassware articles. blown glass article. (tint plate) between the polarizer and Center Punch: 3.1.2 Dimensional Measurement the analyzer. The polarized light must The center punch is a slender tool (Applies Only to Stemware, Tumblers, pass through both the sample and the having one end tapered to a point. The Bowls, etc.): retardation plate for the color-enhanced tool should be approximately 8″; to 12″ polariscopic pattern to be observed in length to permit insertion into tall- Using a caliper or similar device, through the analyzer. Position the form tumblers and other articles of measure the minimum diameter of the retardation plate in direct contact with similar shape while the nonpointed end mouth, opening, or upper rim of the the polarizer or, alternatively, just in extends above the rim. This is necessary sample. With the same device, measure front of the analyzer. for ease of handling and for safety while the maximum inside diameter. Record • Turn on the light source. performing the center punch test. The both measurements. • Evaluate the stress in the bottom of pointed end of the center punch should Interpretation of Dimensional the intact article by placing its bottom not be sufficiently sharp so as to chip Measurement Results: A sample having surface in contact with the polarizer so the glassware on contact without the a maximum inside diameter greater than that the polarized light passes application of pressure. the minimum diameter of the mouth, perpendicularly through the bottom Other Apparatus and Supplies: opening, or upper rim is not likely to surface, or as close to perpendicularly as The method requires various common have been ‘‘pressed.’’ possible, depending upon the article’s laboratory articles such as a caliper or Interpretation of the Macroscopic shape. [This positioning does not work similar device for measuring the Analysis Test: The analyst is advised to well with stemware because of color diameter of the opening and the consider the overall features of the patterns caused by the stem itself. With maximum inside diameter of the article and the dimensional analysis test these items, it will be necessary to hold sample, an oven, a water bath, and other results in determining that an article has the glass at a slight angle to view the equipment and supplies. Appropriate been ‘‘pressed.’’ If the results show that base and the bowl separately.] safety devices and personal protective the sample is not ‘‘pressed’’, the testing • Evaluate the stress in the sides of equipment are also required. sequence for this sample should be the intact article, especially near the rim terminated at this point. 2. PREPARATION OF THE SAMPLE or edge, by positioning the article so Evaluation for Determination if an that the polarized light passes When available a representative Article Has Been Toughened (Specially perpendicularly through the sides near number of samples should be analyzed. Tempered) the rim, or as close to perpendicularly However, it is recognized that for any of as possible, depending upon the 3.2 Thermal Shock Test: several reasons, e.g., cost of the item, article’s shape. Observation of the stress only a limited number of samples may • Heat the sample(s) in an oven to patterns in the sidewall and rim areas be submitted for analysis. The 160 °C for 30 minutes. should be made while viewing through • possibility exists that only one sample Remove one sample from the oven a single thickness of glass. For some may be available for testing. and immediately immerse it in a water items, especially stemware, tumblers, ° bath set at 25 C. This results in a 135 and mugs, this will require holding the 3. ANALYSIS PROCEDURES ° C difference in temperature. [Note: article at a slight angle to the polarizer The following procedures may be Reasonable alternate oven and water conducted in whatever order the analyst (open end raised slightly). bath settings up to ± 10 °C are Interpretation of the Polariscopic deems is appropriate for the particular acceptable as long as the 135 °C Examination: Thermal tempering of sample being examined. The test difference in temperature is glassware involves heating to the protocol should be terminated at the maintained.] softening point followed by rapid point that a sample fails to meet any of Interpretation of Thermal Shock Test cooling. The surfaces cool first and the key criteria, i.e., ‘‘pressed’’, Results: Annealed glassware and reach a temperature where they become ‘‘toughened’’, or ‘‘specially tempered.’’ inadequately or partially tempered rigid. With further cooling, the interior Evaluation for Determination if an glassware will generally not survive this or core tries to shrink but is prevented Article Has Been Pressed test of durability or toughness. If from doing so by the rigid surface breakage occurs, the sample is not 3.1 Macroscopic Analysis: layers. This results in the surfaces being ‘‘toughened’’ for CBP purposes. Record locked into a state of high compression 3.1.1 Visual Inspection: the findings, and terminate the analysis. and the interior locked into Inspect the sample for the following: 3.3 Evaluation of Temper: compensating tension. • Identifying marks, labels, sizes, etc., When polarized light travels through especially those that may have been 3.3.1 The Polariscopic Examination a stressed material, they divide into caused by a push-up valve and a mold (For Transparent or Translucent slow and fast fronts. As a result of the that have been pressed into the article; Articles): difference in speed of the slow and fast • The style (stemware, tumbler, bowl, This method for the qualitative rays, interferences occur and a pattern plate, etc.); evaluation of temper in glassware of colors is observed. These colors can

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be used to evaluate the stresses in the breakage pattern and/or typical with ‘‘diced pieces’’ and implies the article. As the stress increases, the fragments, if indicated. presence of small cubes of roughly equal observed color changes to reflect the Interpretation of the Cutting Test: dimensions on all six sides. amount of stress. The color changes Annealed (non-tempered) glassware will ‘‘Toughened (specially tempered)’’ follow a rigorous sequence as the stress- readily accept the diamond-rimmed glassware will require considerably induced retardation, or distance blade and will be cleanly cut in half. more force to break than ordinary between the fast and slow rays, Tempered glass, on the other hand, will glassware with the center punch test increases. In low-stress areas, black and break into pieces when cut. The broken and, when it breaks, some graveling or shades of gray are seen. Evaluation of pieces will need to exhibit some dicing, crazing will be observed. Neither low stress is simplified by using a color- crazing (gravel remaining tenuously in graveling nor crazing will be observed enhancing retardation or tint plate contact with neighboring pieces) or in ordinary glassware. which adds a shift of one fringe order, graveling. ‘‘Some’’ will be considered to Powder and splinters will or 565 nm, in the color pattern be any diced, crazed or graveled occasionally be observed in samples of throughout the observed field. With the fragments yielded by the broken sample ‘‘toughened (specially tempered)’’ tint plate in place, even low and that is more than just a fugitive diced, glassware. Also, few, if any, of these moderately stressed areas will exhibit a crazed or graveled fragment. The word samples will be reduced entirely to contrasting color effect. ‘‘gravel’’ is intended to be synonymous gravel; larger fragments will remain. Annealed glassware will exhibit a with ‘‘diced pieces’’ and implies the However, these large fragments will uniform coloration of the polarized light presence of small cubes of roughly equal seldom be exceptionally pointed or passing through it; there will be dimensions on all six sides. The extent jagged and broken edges, especially on essentially no change from the of cutting needed to induce breakage diced pieces, will be reasonably dull. background. Tempered articles will may vary from item to item, but in no The stem and base of the stemware exhibit non-uniform coloration of the event will tempered articles be cleanly styles seldom disintegrate. The most polarized light on the bottom surface cut in half by the diamond-rimmed common breakage pattern for stemware and sidewalls and bands of color blade. is characterized by a tack-shaped parallel to the rim or lip. [Note: With 3.3.3 Center Punch Test fragment consisting of the base and a highly colored articles, it may be helpful portion of the stem remaining intact. to conduct the polariscopic exam In the event that the Cutting Test is The tip of the stem portion should be without the tint plate. There will be no inconclusive (i.e., if the sample breaks reasonably dull. color enhancement, but the gray to black into several large pieces when subjected A sample that passes the Thermal to the cutting test) or if an article is too Shock Test and shows evidence of interference patterns should be readily ″ discernible in tempered articles.] small (less than 5 in diameter) to be tempering per the guidance given above If the sample passes the Thermal safely analyzed by the Cutting Test, the for the Cutting Test and/or Center Shock Test and shows evidence of full- analyst has the option to apply the Punch Test has been ‘‘toughened surface tempering (as opposed to rim- Center Punch Test to the article. The (specially tempered)’’ for CBP’s tariff tempering or partial tempering) when Center Punch Test should be performed classification purposes. examined polariscopically, the sample as follows: • Set the sample to be tested on a Dated: September 9, 2010. has been ‘‘toughened (specially solid, level surface. Ira S. Reese, tempered)’’ for CBP purposes. • Place an upended cardboard box Executive Director, Laboratories and 3.3.2 The Cutting Test for Opaque over the item to be tested. The box Scientific Services, U.S. Customs and Border Glassware should be of sufficient size so that the Protection. entire article is covered. The box should [FR Doc. 2010–22826 Filed 9–13–10; 8:45 am] This test is applicable to opaque be altered such that there is a hole in the BILLING CODE 9111–14–P articles and to those translucent articles center which is large enough to admit which cannot be examined the shank of a center punch. polariscopically because of inadequate • Place the pointed end of the center DEPARTMENT OF THE INTERIOR transmission of the polarized light. • punch, vertically, against the inside Ensure that the saw is equipped center bottom or heel. Council of the Inspectors General on with a continuous rim diamond blade • Strike the dull end of the punch Integrity and Efficiency designed for wet cutting glass. with a hammer, using blows of • Adjust the cutting head of the saw gradually increasing severity, until Senior Executive Service Performance vertically and horizontally, as breakage occurs. Review Board Membership necessary, to accommodate the • Note the breakage pattern, number, AGENCY: Council of the Inspectors glassware article. and relative shape and size of fragments General on Integrity and Efficiency. • Be sure the water supply to both (indicate this without making an actual sides of the diamond-rimmed blade is count). Photograph the breakage pattern ACTION: Notice. adequate. and/or typical fragments, if indicated. SUMMARY: This notice sets forth the • Turn on the saw. Interpretation of Center Punch Test names and titles of the current • While holding or otherwise Results: In order to be considered membership of the Council of the securing the article to prevent twisting ‘‘ ’’ tempered for CBP purposes, it is only Inspectors General on Integrity and and binding during the cutting, slowly necessary for the broken sample to Efficiency (CIGIE) Performance Review and gently move the article into contact exhibit some dicing, crazing or Board as of October 1, 2010. with the blade. graveling. ‘‘Some’’ will be considered to • Proceed with the cutting. be any diced, crazed or graveled DATES: Effective Date: October 1, 2010. • Note the breakage pattern, number, fragments yielded by the broken sample FOR FURTHER INFORMATION CONTACT: and relative shape and size of the that are more than just fugitive diced, Individual Offices of Inspectors General fragments (indicate this without making crazed or graveled fragments. The word at the telephone numbers listed below. an actual count). Photograph the ‘‘gravel’’ is intended to be synonymous SUPPLEMENTARY INFORMATION:

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I. Background Rod DeSmet—Deputy Assistant Marta Erceg—Counsel to the Inspector The Inspector General’s Act of 1978, Inspector General for Audit. General. Tracy A. LaPoint—Deputy Assistant as amended, created the Offices of Department of Energy Inspectors General as independent and Inspector General for Audit. Karen L. Ellis—Assistant inspector Phone Number: (202) 586–4393. objective units to conduct and supervise General for Investigations. CIGIE Liaison—Juston Fontaine, (202) audits and investigations relating to Kathy C. Horsley—Deputy Assistant 586–1959. Federal programs and operations. The Inspector General for Investigations. John Hartman—Assistant Inspector Inspector General Reform Act of 2008, Suzanne M. Murrin—Assistant General for Investigations. established the Council of the Inspectors Inspector General for Management. Rickey Hass—Deputy Inspector General on Integrity and Efficiency Department of Commerce General for Audit Services. (CIGIE) to address integrity, economy, Sanford Parnes—Counsel to the and effectiveness issues that transcend Phone Number: (202) 482–4661. Inspector General. individual Government agencies; and CIGIE Liaison-Lisa Allen, (202) 482– George Collard—Assistant Inspector increase the professionalism and 5422. General for National Security and effectiveness of personnel by developing Wade Green, Jr. Counsel to the Energy Audits. policies, standards, and approaches to Inspector General. aid in the establishment of a well Judith J. Gordon—Associate Deputy Department of Health and Human trained and highly skilled workforce in Inspector General. Services the Offices of Inspectors General. The Ann E. Eilers—Principal Assistant Phone Number: (202) 619–3148. CIGIE is an interagency council whose Inspector General for Audit and CIGIE Liaison—Sheri Denkensohn, executive chair is the Deputy. Evaluation. (202) 205–9492 and Elise Stein, (202) Allen Crawley—Assistant Inspector 619–2686. II. CIGIE Performance Review Board General for Systems Acquisition and IT Joseph J. Green—Assistant Inspector Under 5 U.S.C. 4314(c)(1)–(5), and in Security. General for Financial Management and Ronald C. Prevost—Assistant accordance with regulations prescribed Regional Operations. by the Office of Personnel Management, Inspector General for Economic and Paul R. Johnson—Assistant Inspector each agency is required to establish one Statistical Program Assessment. General for Management and Policy Scott Berenberg—Assistant Inspector or more Senior Executive Service (SES) (Chief Operating Officer). performance review boards. The General for Investigations. Donald E. Meeks—Assistant Inspector Richard C. Beitel, Jr.—Assistant purpose of these boards is to review and General for Investigations. Inspector General for Whistleblower evaluate the initial appraisal of a senior Stuart E. Wright—Deputy Inspector Protection. executive’s performance by the General for Evaluation and Inspections. supervisor, along with any Department of Defense Department of Homeland Security recommendations to the appointing Phone Number: (703) 604–8324. authority relative to the performance of CIGIE Liaison—John R. Crane, (703) Phone Number: (202) 254–4100. the senior executive. The current 604–8324. CIGIE Liaison—Denise S. Johnson, members of the Council of the Michael Child—Chief of Staff. (202) 254–4100. Inspectors General on Integrity and James Burch—Deputy Inspector Charles K. Edwards—Deputy Efficiency Performance Review Board, General for Investigations. Inspector General. as of October 1, 2009, are as follows: Patricia Brannin—Deputy Inspector Matt Jadacki—Assistant Inspector General for Intelligence. General for Emergency Management Agency for International Development Donald Horstman—Deputy Inspector Oversight. Phone Number: (202) 712–1150. General for Administrative Mark McLachlan—Deputy Assistant CIGIE Liaison-Thereasa L. Lyles, (202) Investigations. Inspector General for Emergency 7121 393. John Crane—Assistant Inspector Management Oversight. Michael G. Carroll—Deputy Inspector General for Communications and Richard N. Reback—Counsel to the General. Congressional Liaison. Inspector General. Joseph Farinella (SFS)—Assistant Anna Gershman—Acting Assistant Anne L. Richards—Assistant Inspector General for Audit. Inspector General for the Office of Inspector General for Audits. Melinda Dempsey—Deputy Assistant Professional Responsibility. Edward M. Stulginsky—Deputy Inspector General for Audit. Assistant Inspector General for Audits. Howard I. Hendershot—Assistant Department of Education Carlton I. Mann—Assistant Inspector Inspector General for Investigations. Phone Number: (202) 245–6900. General for Inspections. Alvin A. Brown—Assistant Inspector CIGIE Liaison—Ten Clark, (202) 245– Thomas M. Frost—Assistant Inspector General, Millennium Challenge 6340. General for Investigations. Corporation. Mary Mitchelson—Deputy Inspector James Gaughran—Deputy Assistant Lisa Goldfluss—Legal Counsel. General. Inspector General for Investigations. Wanda Scott—Assistant Inspector Frank Deffer—Assistant Inspector Department of Agriculture General for Evaluations, Inspections and General for Information Technology. Phone Number: (202) 720–8001. Management Services. Charles K. Edwards—Acting Assistant CIGIE Liaison-Cheryl Viani, (202) Keith West—Assistant Inspector Inspector General for Management. 720–8001. General for Audit Services. David R. Gray—Deputy Inspector Patrick Howard—Deputy Assistant Department of Housing and Urban General. Inspector General for Audit Services. Development Robert W. Young—Special Assistant William Hamel—Assistant Inspector Phone Number: (202) 708–0430. to the Inspector General for the General for Investigative Services. CIGIE Liaison—Helen Albert, (202) Recovery Act. Charles Coe—Assistant Inspector 708–0614, Ext. 8187. Gilroy Harden—Assistant Inspector General for Information Technology and James A. Heist—Assistant Inspector General for Audit. Computer Crimes Investigation. General for Audit.

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John McCarty—Deputy Assistant Racketeering and Fraud Investigations. Maria A. Freedman—Assistant Inspector General for Inspections and Elliot P. Lewis—Assistant Inspector Inspector General for Audit. Evaluations. General for Audit. Robert A. Taylor—Deputy Assistant Lester Davis—Deputy Assistant Michael A. Raponi—Deputy Assistant Inspector General for Audit (Program Inspector General for Investigations. Inspector General for Audit. Audits). Randy McGinnis—Deputy Assistant Richard Clark—Deputy Assistant Joel Grover—Deputy Assistant Inspector General for Audit. Inspector General for Labor Inspector General for Audit (Financial Brenda Patterson—Deputy Assistant Racketeering and Fraud Investigations. Management Audits). Inspector General for Audit. Asa E. Cunningham—Assistant Treasury Inspector General for Tax Helen Albert—Deputy Assistant Inspector General for Inspections and Administration/Department of the Inspector General for Management and Special Investigations. Policy. Treasury Department of State and the Phone Number: (202) 622–6500. Department of the Interior Broadcasting Board of Governors CIGIE Liaison—Roderick Fillinger, Phone Number: (202) 208–5745. Phone Number: (202) 663–0340. (202) 622–3139. CIGIE Liaison—Deborah Holmes, CIGIE Liaison—Michael Wolfson, Roderick Fillinger—Chief Counsel. (202) 208–5745. (703) 284–2710. Joseph Hungate, Ill—Principal. Stephen Hardgrove—Chief of Staff. Robert B. Peterson—Assistant Deputy Inspector General. Kimberly Elmore—Assistant Inspector Inspector General for Inspections. Michael Phillips—Deputy Inspector General for Audits, Inspections and Evelyn R. Klemstine—Deputy General for Audit. Evaluations. Assistant Inspector General for Audits. Margaret Begg—Assistant Inspector Robert Romanyshyn—Deputy General for Audit (Compliance and Assistant Inspector General for Department of Transportation Enforcement Operations). Financial Audits. Phone Number: (202) 366–1959. Timothy Camus—Assistant Inspector John Dupuy—Assistant Inspector CIGIE Liaison—Nathan P. Richmond, General for Investigations. General for Investigations. (202) 366–1959. Michael Delgado—Assistant Inspector Renee Pettis—Assistant Inspector Calvin L. Scovel III—Inspector General for Investigations. General for Management. General. Alan Duncan—Assistant Inspector Eddie Saffarinia—Assistant Inspector Ann M. Calvaressi Barr- Deputy General for Audit (Security & General for Information Technology. Inspector General. Information Technology Services). Bruce Delaplaine—General Counsel. Brian A, Dettelbach—Assistant John Fowler—Deputy Assistant Roderick Anderson—Deputy Inspector General for Legal, Legislative, Inspector General for Investigations. Assistant Inspector General for and External Affairs. David Holmgren—Deputy Inspector Management. Susan L. Dailey—Assistant Inspector General for Inspections and Evaluations. Robert Knox—Assistant Inspector General for Administration. Steven Jones—Deputy Inspector General for Recovery Oversight. Lou E. Dixon—Principal Assistant General for Investigations. Department of Justice Inspector General for Auditing and Larry Koskinen—Associate Inspector Evaluation. General for Mission Support. Phone Number: (202) 514–3435. CIGIE Liaison—Cynthia Schnedar, Jeffrey B. Guzzetti—Assistant Mike McKenney—Assistant Inspector (202) 514–3435. Inspector for Aviation and Special General for Audit (Returns Processing Cynthia Schnedar—Deputy Inspector Program Audits. and Account Services). General. Mitchell L. Behm—Assistant Nancy Nakamura—Assistant Raymond J. Beaudet—Assistant Inspector General for Amtrak, High Inspector General for Audit Inspector General for Audit. Speed Rain and Economic Analysis. (Headquarters Operations and Exempt Carol F. Ochoa—Assistant Inspector Matthew E. Hampton—Deputy Organizations). Assistant Inspector General for Aviation General for Oversight and Review. Department of Veterans Affairs Gregory T. Peters—Assistant Inspector and Special Program Audits. General for Management and Planning. Rebecca C. Leng—Assistant Inspector Phone Number: (202) 461–4720. Thomas F. McLaughlin—Assistant General for Financial and Information CIGIE Liaison—Joanne Moffett, (202) Inspector General for Investigations. Technology Audits. 461–4720. Michael D. Gulledge—Assistant Joseph W. Come—Assistant Inspector Richard Griffin—Deputy Inspector Inspector General for Evaluation and General for Surface and Maritime General. Inspections. Programs. Maureen Regan—Counselor to the Caryn A. Marske—Deputy Assistant Rosalyn G. Millman—Deputy Inspector General. Inspector General for Audit. Assistant Inspector General for Surface James O’Neill—Assistant Inspector George L. Dorsett—Deputy Assistant and Maritime Programs. General for Investigations. Inspector General for Investigations. Joseph Sullivan—Deputy Assistant Department of the Treasury Inspector General for Investigations Department of Labor Phone Number: (202) 622–1090. (Field Operations). Phone Number: (202) 693–5100. CIGIE Liaison—John Czajkowski, Joseph Vallowe—Deputy Assistant CIGIE Liaison—Christopher Seagle, (202) 927–5835. Inspector General for Investigations (202) 693–5231. Dennis S. Schindel—Deputy Inspector (HQs Operations). Daniel R. Petrole—Acting Inspector General. Belinda Finn—Assistant Inspector General. Richard K. Delmar—Counsel to the General for Audits and Evaluations. Nancy F. Ruiz de Gamboa—Assistant Inspector General. Linda Halliday—Deputy Assistant Inspector General for Management and John Czajkowski—Assistant Inspector Insepctor General for Audits and Policy. General for Management. Evaluations (Field Operations). Thomas F. Farrell—Assistant P. Brian Crane—Assistant Inspector Sondra McCauley—Deputy Assistant Inspector General for Labor General for Investigations. Inspector General for Audits and

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Evaluations (HQs Management and Kevin Winters—Assistant Inspector William Tebbe—Assistant Inspector Inspections). General for Investigations. General for Investigations. Richard Ehrlichman—Assistant Alan Lamoreaux—Assistant Inspector Small Business Administration Inspector General for Management and General for Management and Planning. Administration. Phone Number: (202) 205–6586. National Archives and Records Dana Moore—Deputy Assistant CIGIE Liaison—Robert F. Fisher (202) Administration Inspector General for Management and 205–6583. Administration. Phone Number: (301) 837–3000. Peter L. McClintock—Deputy John Daigh—Assistant Inspector CIGIE Liaison—John Simms, (301) Inspector General. General for Healthcare Inspections. 837–1966. Glenn P. Harris—Counsel to the Patricia Christ—Deputy Assistant Paul Brachfeld—Inspector General. Inspector General. Debra S. Rift—Assistant Inspector Inspector General for Healthcare National Endowment for the Humanities Inspections. General for Auditing. Phone Number: (202) 606–8350. Daniel J. O’Rourke—Assistant Environmental Protection Agency CIGIE Liaison—Laura M.H. Davis, Inspector General for Investigations. Phone Number: (202) 566–0847. (202) 606–8574. Robert F. Fisher—Assistant Inspector CIGIE Liaison—Eileen McMahon, Sheldon Bemstein—Inspector General for Management and Policy. (202) 566–2546. General. Social Security Administration Bill A. Roderick—Deputy Inspector National Science Foundation General. Phone Number: (410) 966–8385. Mark Bialek—Associate Deputy Phone Number: (703) 292–7100. CIGIE Liaison—Misha Kelly (202) Inspector General and Counsel to the CIGIE Liaison—Susan Carnohan, 358–6319. Inspector General. (703) 292–5011 and Maury Pully, (703) Gale Stone—Deputy Assistant Eileen McMahon—Assistant Inspector 292–5059. Inspector General for Audit. General for Congressional, Public Allison C. Lerner—Inspector General. B. Chad Bungard—Counsel to the Affairs and Management. Thomas (Tim) Cross—Deputy Inspector General. Melissa Heist—Assistant Inspector Inspector General. Steve Mason—Deputy Assistant General for Audit. Brett M. Baker—Assistant Inspector Inspector General for Investigations. Wade Najjum—Assistant Inspector General for Audit. Michael Robinson—Assistant General for Program Evaluation. Peggy Fischer—Assistant Inspector Inspector General for Technology and Stephen Nesbitt—Assistant Inspector General for Investigations. Resource Management. General for Cyber Investigations and Peace Corps Special Inspector General for Troubled Homeland Security. Asset Relief Program Patricia Hill—Assistant Inspector Phone Number: (202) 692–2900. General for Mission Systems. CIGIE Liaison—Joaquin Ferrao (202) Phone Number: (202) 622–2658. 692–2921. CIGIE Liaison—(202) 622–2658. Federal Trade Commission Kathy Buller—Inspector General Kevin Puvalowski—Regional Director Phone Number: (202) 326—2800. (Foreign Service). (Acting Deputy Special Inspector CIGIE Liaison—Cynthia Hogue, (202) General). Nuclear Regulatory Commission 326–2800. Bryan Saddler—Chief Counsel. John Seeba—Inspector General. Phone Number: (301) 415–5930. Christy Romero—Chief of Staff. CIGIE Liaison—Deborah S. Huber, Eileen Ennis—Deputy Special General Services Administration (301) 415–5930. Inspector General, Operations. Phone Number: (202) 501–0450. David C. Lee—Deputy Inspector Christopher Sharpley—Deputy CIGIE Liaison—Sarah S. Breen, (202) General. Special Inspector General, 219–1351. Stephen D. Dingbaum—Assistant Investigations. Robert C. Erickson—Deputy Inspector Inspector General for Audits. Kurt Hyde—Deputy Special Inspector General. Joseph A. McMillan—Assistant General, Audit. Richard P. Levi—Counsel to the Inspector General for Investigations. Timothy Lee—Senior Policy Analyst. Inspector General. Office of Personnel Management United States Postal Service Theodore R. Stehney—Assistant Inspector General for Auditing. Phone Number: (202) 606–1200. Phone Number: (703) 248–2100. Regina M. O’Brien—Deputy Assistant CIGIE Liaison—Joyce D. Price, (202) CIGIE Liaison—Agapi Doulaveris, Inspector General for Auditing. 606–2156. (703) 248–2286. Gregory G. Rowe—Assistant Inspector Norbert E. Vint—Deputy Inspector Elizabeth Martin—General Counsel. General for Investigations. General. Gladis Griffith—Deputy General Geoffrey Cherrington—Deputy Tern Fazio—Assistant Inspector Counsel. Assistant Inspector General for General for Management. Ron Stith—Assistant Inspector Investigations. Michael R. Esser—Assistant Inspector General, Mission Support. General for Audits. Mary Demory—Deputy Assistant National Aeronautics and Space J. David Cope—Assistant Inspector Inspector General—Business Administration General for Legal Affairs. Operations. Phone Number: (202) 358–1220. Jeffery E. Cole—Deputy Assistant LaVan Griffith—Deputy Assistant CIGIE Liaison—Renee Juhans, (202) Inspector General for Audits. Inspector General—Investigative 358–1712. Support Services. Gail Robinson—Deputy Inspector Railroad Retirement Board David Sidransky—Chief Information General. Phone Number: (312) 751–4690. Officer. Frank LaRocca—Counsel to the CIGIE Liaison—Jill Roellig (312) 751– William Siemer—Assistant Inspector Inspector General. 4993. General for Investigations.

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Lance Carrington—Deputy Assistant Affairs, Office of Management and Bureau Form Number: None. Inspector General for Investigations— Budget, Attention: Department of Frequency of Collection: Once. West. Interior Desk Officer, by telefax at (202) Description of Respondents: Yvette Savoy—Deputy Assistant 395–5806 or via e-mail to Individuals or groups that petition the Inspector General for Investigations— [email protected]. Also, States, and the State regulatory North. please send a copy of your comments to authorities that must process the Tammy Whitcomb—Assistant John Trelease, Office of Surface Mining petitions. Inspector General for Audits. Reclamation and Enforcement, 1951 Total Annual Respondents: 4 Robert Batta—Deputy Assistant Constitution Ave., NW., Room 202–SIB, petitions and 4 regulatory authorities. Inspector General for Audits—Mission Washington, DC 20240, or electronically Total Annual Burden Hours: 5,200. Operations. to [email protected]. Total Annual Non-wage Costs: $400. John Cihota—Deputy Assistant Send comments on the need for the FOR FURTHER INFORMATION CONTACT: To Inspector General for Audits—Financial collection of information for the request a copy of this information performance of the functions of the Accountability. collection request, contact John Trelease Darrell Benjamin—Deputy Assistant agency; the accuracy of the agency’s at (202) 208–2783, or electronically to Inspector General for Audits—Revenue burden estimates; ways to enhance the [email protected]. and Systems. quality, utility and clarity of the Mark Duda—Deputy Assistant SUPPLEMENTARY INFORMATION: The Office information collection; and ways to Inspector General for Audits—Support of Management and Budget (OMB) minimize the information collection Operations. regulations at 5 CFR part 1320, which burdens on respondents, such as use of Mohammad Adra—Assistant implement provisions of the Paperwork automated means of collections of the Inspector General for Risk Analysis Reduction Act of 1995 (Pub. L. 104–13), information, to the addresses listed Research Center. require that interested members of the under ADDRESSES. Please refer to OMB Dated: August 30, 2010. public and affected agencies have an control number 1029–0030 in all Mark D. Jones, opportunity to comment on information correspondence. collection and record activities [see 5 Before including your address, phone Acting Executive Director, Council of the number, e-mail address, or other Inspectors General on Integrity and CFR 1320.8(d)]. OSM has submitted a Efficiency. request to OMB to renew its approval of personal identifying information in your the collection of information contained comment, you should be aware that [FR Doc. 2010–22691 Filed 9–13–10; 8:45 am] in: 30 CFR part 764—State Processes for your entire comment—including your BILLING CODE M Designating Areas Unsuitable for personal identifying information—may Surface Coal Mining Operations. OSM is be made publicly available at any time. DEPARTMENT OF THE INTERIOR requesting a 3-year term of approval for While you can ask us in your comment each information collection activity. to withhold your personal identifying Office of Surface Mining Reclamation An agency may not conduct or information from public review, we and Enforcement sponsor, and a person is not required to cannot guarantee that we will be able to respond to, a collection of information do so. Notice of Proposed Information unless it displays a currently valid OMB Dated: September 8, 2010. Collection for 1029–0030 control number. The OMB control John R. Craynon, number for this collection is 1029–0030, AGENCY: Office of Surface Mining Chief, Division of Regulatory Support. and displayed in 30 CFR 764.10. Reclamation and Enforcement. As required under 5 CFR 1320.8(d), a [FR Doc. 2010–22733 Filed 9–13–10; 8:45 am] ACTION: Notice and request for Federal Register notice soliciting BILLING CODE 4310–05–M comments. comments on this collection of information was published on June 29, SUMMARY: In compliance with the DEPARTMENT OF THE INTERIOR Paperwork Reduction Act of 1995, the 2010 (75 FR 37458). No comments were Office of Surface Mining Reclamation received. This notice provides the Fish and Wildlife Service and Enforcement (OSM) is announcing public with an additional 30 days in which to comment on the following [FWS–R3–ES–2010–N129; 30120–1113– its intention to request approval for the 0000–C4] collection of information for 30 CFR information collection activity: Title: 30 CFR 764—State Processes for part 764—State Processes for Endangered and Threatened Wildlife Designating Areas Unsuitable for Designating Areas Unsuitable for Surface Coal Mining Operations Areas and Plants; 5-Year Status Reviews of Surface Coal Mining Operations. This Seven Midwest Species collection request has been forwarded to designated by Act of Congress. OMB Control Number: 1029–0030. the Office of Management and Budget AGENCY: Fish and Wildlife Service, Summary: This part implements the (OMB) for review and comment. The Interior. requirement of section 522 of the information collection request describes ACTION: Notice of initiation of reviews; Surface Mining Control and the nature of the information collection request for information. Reclamation Act of 1977 (SMCRA), and the expected burden and cost. Public Law 95–87, which provides SUMMARY: We, the U.S. Fish and DATES: OMB has up to 60 days to authority for citizens to petition States Wildlife Service, are initiating 5-year approve or disapprove the information to designate lands unsuitable for surface status reviews under the Endangered collections but may respond after 30 coal mining operations, or to terminate Species Act of 1973, as amended (Act), days. Therefore, public comments such designation. The regulatory of seven animal and plant species. We should be submitted to OMB by October authority uses the information to conduct these reviews to ensure that our 14, 2010, in order to be assured of identify, locate, compare and evaluate classification of each species on the consideration. the area requested to be designated as Lists of Endangered and Threatened ADDRESSES: Submit comments to the unsuitable, or terminate the designation, Wildlife and Plants as threatened or Office of Information and Regulatory for surface coal mining operations. endangered is accurate. A 5-year review

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assesses the best scientific and I. Why do we conduct a 5-year review? (C) Threatened species means any commercial data available at the time of Under the Act (16 U.S.C. 1531 et seq.), species that is likely to become an the review. We are requesting the public we maintain Lists of Endangered and endangered species within the to send us any information that has Threatened Wildlife and Plants (which foreseeable future throughout all or a become available since the most recent we collectively refer to as the List) in significant portion of its range. status reviews on each of these species. the Code of Federal Regulations (CFR) at We must support delisting by the best Based on review results, we will 50 CFR 17.11 (for animals) and 17.12 scientific and commercial data determine whether we should change (for plants). Section 4(c)(2)(A) of the Act available, and only consider delisting if the listing status of any of these species. requires us to review each listed data substantiate that the species is DATES: To ensure consideration, please species’ status at least once every 5 neither endangered nor threatened for send your written information by years. Then, under section 4(c)(2)(B), we one or more of the following reasons (50 November 15, 2010. However, we will determine whether to remove any CFR 424.11(d)): continue to accept new information species from the List (delist), to (A) The species is considered extinct; about any listed species at any time. reclassify it from endangered to threatened, or to reclassify it from (B) The species is considered to be ADDRESSES: For how and where to send threatened to endangered. Any change recovered; or ‘‘ comments or information, see VIII. in Federal classification requires a (C) The original data available when ’’ SUPPLEMENTARY Contacts under separate rulemaking process. the species was listed, or the INFORMATION. In classifying, we use the following interpretation of data, were in error. definitions, from 50 CFR 424.02: FOR FURTHER INFORMATION CONTACT: To (A) Species includes any species or Our regulations at 50 CFR 424.21 request information, see ‘‘VIII. Contacts’’ subspecies of fish, wildlife, or plant, require that we publish a notice in the under SUPPLEMENTARY INFORMATION. and any distinct population segment of Federal Register announcing the species Individuals who are hearing impaired or any species of vertebrate, that we are reviewing. speech impaired may call the Federal interbreeds when mature; II. What species are under review? Relay Service at 800–877–8337 for TTY (B) Endangered species means any (telephone typewriter or teletypewriter) species that is in danger of extinction This notice announces our active 5- assistance. throughout all or a significant portion of year status reviews of the species in SUPPLEMENTARY INFORMATION: its range; and table 1.

TABLE 1—CURRENT LISTING STATUS OF SPECIES UNDER 5-YEAR STATUS REVIEW

Final listing rule Common name Scientific name Status Where listed publication date and citation

Animals

Higgins eye ...... Lampsilis higginsii ...... Endangered ...... U.S.A. (IA, IL, MN, MO, NE, June 14, 1976 WI). (41 FR 24064). Snail, Iowa Pleistocene ...... Discus macclintocki ...... Endangered ...... U.S.A. (IA, IL) ...... July 3, 1978 (43 FR 28932). Beetle, Hungerford’s crawl- Brychius hungerfordi ...... Endangered ...... U.S.A. (MI, Canada) ...... March 7, 1994 ing water. (59 FR 10580).

Plants

Missouri bladderpod ...... Physaria filiformis Threatened ...... U.S.A. (AR, MO) ...... October 15, 2003 (=Lesquerella filiformis). (68 FR 59337). Running buffalo clover ...... Trifolium stoloniferum ...... Endangered ...... U.S.A. (AR, IL, IN, KS, KY, June 5, 1987 MO, OH, WV). (52 FR 21478). Western prairie fringed or- Platanthera praeclara ...... Threatened ...... U.S.A. (IA, KS, MN, MO, September 28, 1989 chid. ND, NE, OK, SD), Canada (54 FR 39857). (Man.). Pitcher’s thistle ...... Cirsium pitcheri ...... Threatened ...... U.S.A. (IL, IN, MI, WI), Can- July 18, 1988 ada (Ont.). (53 FR 27137).

III. What do we consider in our review? (A) Species biology, including but not Determine Whether a Species Is limited to population trends, Endangered or Threatened?’’); and We consider all new information distribution, abundance, demographics, (E) Other new information, data, or available at the time we conduct a 5- and genetics; corrections, including but not limited to year status review. We consider the best (B) Habitat conditions, including but taxonomic or nomenclatural changes, scientific and commercial data that has not limited to amount, distribution, and identification of erroneous information become available since our current suitability; contained in the List, and improved listing determination or most recent analytical methods. status review, accessible from our Web (C) Conservation measures that have site http://www.fws.gov/midwest/ been implemented that benefit the IV. How do we determine whether a species is endangered or threatened? Endangered/recovery/5yr_rev/ species; completed5yrs.html, such as: (D) Threat status and trends (see five Section 4(a)(1) of the Act requires that factors under heading ‘‘How Do We we determine whether a species is

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endangered or threatened based on one filiformis (=Lesquerella f.), in Wildlife Service office listed under or more of the five following factors: accordance with 50 CFR 17.12(b). We ‘‘VIII. Contacts.’’ (A) The present or threatened published our direct final rule because Submit all electronic information in destruction, modification, or revision of the List for this purpose is Text or Rich Text format to curtailment of its habitat or range; a noncontroversial action that, in the FW3MidwestRegion_5YearReview (B) Overutilization for commercial, best interest of the public, should be @fws.gov. Please send information for recreational, scientific, or educational undertaken in as timely manner as each species in a separate e-mail. purposes; possible. The direct final rule will be Provide your name and return address (C) Disease or predation; effective on the date specified (see the in the body of your message, and (D) The inadequacy of existing DATES section of the rule) unless we include the following identifier in your regulatory mechanisms; or receive significant adverse comments. e-mail subject line: Information on 5- (E) Other natural or manmade factors Significant adverse comments are year review for [NAME OF SPECIES]. affecting its continued existence. comments that provide strong Under section 4(b)(1) of the Act, we justifications as to why our rule should VII. Public Availability of Comments must base our assessment of these not be adopted or why it should be Before including your address, phone factors solely on the best scientific and changed. We will give the same commercial data available. number, e-mail address, or other consideration to comments submitted in personal identifying information in your V. What could happen as a result of our response to either our direct final rule comment, you should be aware that review? or notice to initiate 5-year reviews; you your entire comment—including your do not need to submit separate For each species under review, if we personal identifying information—may comments in regard to the taxonomy of find new information that indicates a be made publicly available at any time. Missouri bladderpod for both change in classification may be While you can ask us in your comment documents. warranted, we may propose a new rule to withhold your personal identifying that could do one of the following: VI. Request for New Information information from public review, we (A) Reclassify the species from cannot guarantee that we will be able to threatened to endangered (uplist); To ensure that a 5-year review is do so. Comments and materials received (B) Reclassify the species from complete and based on the best will be available for public inspection, endangered to threatened (downlist); or available scientific and commercial by appointment, during normal business (C) Remove the species from the List information, we request new hours at the offices where the comments (delist). information from all sources. See ‘‘What are submitted. If we determine that a change in Information Do We Consider in Our VIII. Contacts classification is not warranted, then the Review?’’ for specific criteria. If you species remains on the List under its submit information, support it with Send your comments and information current status. Therefore, elsewhere in documentation such as maps, on the following species, as well as today’s issue of the Federal Register, we bibliographic references, methods used requests for information, to the have published a direct final rule to to gather and analyze the data, and/or corresponding contacts. You may view notify the public that we are revising the copies of any pertinent publications, information we receive in response to List of Endangered and Threatened reports, or letters by knowledgeable this notice, as well as other Plants (50 CFR 17.12(h)) to reflect the sources. documentation in our files, at the most recent scientifically accepted Submit your comments and materials following locations by appointment, taxonomy and nomenclature of Physaria to the appropriate U.S. Fish and during normal business hours.

Species Contact person, phone, e-mail Contact address

Higgins eye (pearlymussel) and Platanthera Mr. Phil Delphey, (612) 725–3548, Twin Cities Field Office, U.S. Fish and Wildlife praeclara. [email protected]. Service, 1401 American Boulevard E., Bloomington, MN 55425–1665. Iowa Pleistocene snail...... Ms. Kristen Lundh, (309) 757–5800, Rock Island Field Office, U.S. Fish and Wild- [email protected]. life Service, 1511 47th Avenue, Moline, IL 61265. Hungerford’s crawling water beetle...... Ms. Barbara Hosler, (517) 351–6326, bar- East Lansing Field Office, U.S. Fish and Wild- [email protected]. life Service, 2651 Coolidge Road, Suite 101, East Lansing, MI 48823–5902. Physaria filiformis (=Lesquerella filiformis) ...... Dr. Paul McKenzie, (573) 234–2132, exten- Columbia Missouri Field Office, U.S. Fish and sion 107, [email protected]. Wildlife Service, 101 Park DeVille Drive, Suite A, Columbia, MO 65203–0057. Trifolium stoloniferum ...... Ms. Julie Proell, (614) 416–8993, extension Ohio Field Office, U.S. Fish and Wildlife Serv- 19, [email protected]. ice, 4625 Morse Road, Suite 104, Colum- bus, OH 43230. Cirsium pitcheri ...... Ms. Tameka Dandridge, (517) 351–8315, East Lansing Field Office, U.S. Fish and Wild- [email protected]. life Service, 2651 Coolidge Road, Suite 101, East Lansing, MI 48823–5902.

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IX. Authority Protection and Repatriation Act pursuant to 25 U.S.C. 3001(9), the We publish this notice under the (NAGPRA), 25 U.S.C. 3003, of the human remains described above authority of the Endangered Species Act completion of an inventory of human represent the physical remains of 16 of 1973, as amended (16 U.S.C. 1531 et remains and associated funerary objects individuals of Native American seq.). in the control of the Denver Museum of ancestry. Officials of the Denver Nature & Science, Denver, CO. The Museum of Nature & Science also have Dated: August 27, 2010. human remains and associated funerary determined that, pursuant to 25 U.S.C. Thomas O. Melius, objects were removed from Grand 3001(3)(A), the 17 objects described Regional Director, Midwest Region, U.S. Fish County, UT; possibly eastern Utah or above are reasonably believed to have and Wildlife Service. western Colorado; Montezuma County, been placed with or near individual [FR Doc. 2010–22812 Filed 9–13–10; 8:45 am] CO; and the American ‘‘Southwest.’’ human remains at the time of death or BILLING CODE 4310–55–P This notice is published as part of the later as part of the death rite or National Park Service;s administrative ceremony. Lastly, officials of the Denver responsibilities under NAGPRA, 25 Museum of Nature & Science have DEPARTMENT OF THE INTERIOR U.S.C. 3003(d)(3). The determinations in determined that, pursuant to 25 U.S.C. this notice are the sole responsibility of 3001(2), a relationship of shared group Bureau of Indian Affairs the museum, institution, or Federal identity cannot be reasonably traced agency that has control of the Native between the Native American human Indian Gaming American human remains and remains and associated funerary objects AGENCY: Bureau of Indian Affairs, associated funerary objects. The and any present-day Indian tribe. Interior. National Park Service is not responsible Representatives of any other Indian ACTION: Notice of approved Tribal-State for the determinations in this notice. tribe that believes itself to be culturally This notice corrects a Notice of Class III Gaming Compact. affiliated with the human remains and Inventory Completion published in the associated funerary objects should SUMMARY: This notice publishes an Federal Register (75 FR 42770–42771, contact Dr. Chip Colwell- extension of Gaming between the Oglala July 22, 2010) with the addition of 13 Chanthaphonh, Denver Museum of Sioux Tribe and the State of South associated funerary objects. Since the Nature & Science, 2001 Colorado Blvd., Dakota. publication of the notice, additional Denver, CO 80205, telephone (303) 370– associated funerary objects likely 6378, before October 14, 2010. DATES: Effective Date: September 14, removed from an unknown site in Disposition of the human remains and 2010. eastern Utah or western Colorado by H. associated funerary objects to the Hopi FOR FURTHER INFORMATION CONTACT: Marie Wormington were found to be in Tribe of Arizona; Pueblo of Acoma, New Paula L. Hart, Director, Office of Indian the possession of the Denver Museum of Mexico; Pueblo of Zia, New Mexico; and Gaming, Office of the Deputy Assistant Nature & Science collections. the Zuni Tribe of the Zuni Reservation, Secretary—Policy and Economic In the Federal Register of July 22, New Mexico, may proceed after that Development, Washington, DC 20240, 2010, paragraph number 4, page 42770, date if no additional claimants come (202) 219–4066. is corrected by substituting the forward. SUPPLEMENTARY INFORMATION: Under following paragraph: The Denver Museum of Nature & section 11 of the Indian Gaming In the 1940s, human remains Science is responsible for notifying the Regulatory Act of 1988 (IGRA), Public representing a minimum of four Ak Chin Indian Community of the Law 100–497, 25 U.S.C. 2710, the individuals were likely removed during Maricopa (Ak Chin) Indian Reservation, Secretary of the Interior shall publish in excavations in eastern Utah or western Arizona; Fort Mojave Indian Tribe of the Federal Register notice of approved Colorado by H. Marie Wormington, Arizona, California & Nevada; Fort Sill Tribal-State compacts for the purpose of archeologist. In 1993, Wormington Apache Tribe of Oklahoma; Gila River engaging in Class III gaming activities donated these remains to the museum Indian Community of the Gila River on Indian lands. This amendment (DMNS catalogue (and CUI numbers) Indian Reservation, Arizona; Havasupai allows for the extension of the current A1985.1 (CUI 24), A1985.2 (CUI 25), Tribe of the Havasupai Reservation, Tribal-State Compact until December A1985.3 (CUI 26), and A1985.4 (CUI Arizona; Hopi Tribe of Arizona; 31, 2010. 27)). The remains include one adult Hualapai Indian Tribe of the Hualapai female, one child of indeterminate sex, Indian Reservation, Arizona; Jicarilla Dated: September 2, 2010. and two adults of indeterminate sex. Apache Nation, New Mexico; Mescalero Donald Laverdure, Most of these individuals are Apache Tribe of the Mescalero Deputy Assistant Secretary—Indian Affairs. represented by fragmentary remains. Reservation, New Mexico; Navajo [FR Doc. 2010–22784 Filed 9–13–10; 8:45 am] Newspaper wrappings around the Nation, Arizona, New Mexico & Utah; BILLING CODE 4310–4N–P remains are dated to March 12, 1949. Ohkay Owingeh, New Mexico; Pueblo of Wormingtoncoms field expeditions Acoma, New Mexico; Pueblo of Cochiti, during this time focused on the area New Mexico; Pueblo of Isleta, New DEPARTMENT OF THE INTERIOR between Utah and Colorado. No known Mexico; Pueblo of Jemez, New Mexico; individuals were identified. The 13 Pueblo of Laguna, New Mexico; Pueblo National Park Service associated funerary objects are of Nambe, New Mexico; Pueblo of Picuris, New Mexico; Pueblo of Notice of Inventory Completion: unworked rocks associated with the Pojoaque, New Mexico; Pueblo of San Denver Museum of Nature & Science, adult female (DMNS catalogue number Felipe, New Mexico; Pueblo of San Denver, CO; Correction A1985.1). In the Federal Register of July 22, Ildefonso, New Mexico; Pueblo of AGENCY: National Park Service, Interior. 2010, paragraph number 2, page 42771, Sandia, New Mexico; Pueblo of Santa ACTION: Notice; correction. is corrected by substituting the Ana, New Mexico; Pueblo of Santa following paragraph: Clara, New Mexico; Pueblo of Santo Notice is here given in accordance Officials of the Denver Museum of Domingo, New Mexico; Pueblo of Taos, with the Native American Graves Nature & Science have determined that, New Mexico; Pueblo of Tesuque, New

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Mexico; Pueblo of Zia, New Mexico; Authorization Act for Fiscal Year 2002, Tract A–1 Salt River Pima-Maricopa Indian Public Law 107–107, 115 Stat. 1012, The southwest quarter of the Community of the Salt River 1315–1316, as amended by Section 2852 northeast quarter (SW1⁄4NE1⁄4), the Reservation, Arizona; San Carlos of the Ronald W. Reagan National southwest quarter (SW1⁄4), the Apache Tribe of the San Carlos Defense Authorization Act for Fiscal northwest quarter (NW1⁄4), and the west Reservation, Arizona; Shoshone Tribe of Year 2005, Public Law 108–375, 118 1 1 half of the southeast quarter (W ⁄2SE ⁄4) the Wind River Reservation, Wyoming; Stat. 1811, 2143–2144, as amended by of Section 33 in Township 18 North, Shoshone-Bannock Tribes of the Fort Section 2862 of the National Defense Range 1 East, Williamette Meridian, in Hall Reservation of Idaho; Shoshone- Authorization Act for Fiscal Year 2010, Thurston County, Washington. Paiute Tribes of the Duck Valley Public Law 111–84, 123 Stat. 2190, Reservation, Nevada; Southern Ute 2694, the Assistant Secretary—Indian Tract A–2 Indian Tribe of the Southern Ute Affairs, on behalf of the Department of The north half of the northeast quarter Reservation, Colorado; Tohono the Interior, Bureau of Indian Affairs, (N1⁄2NE1⁄4), the southeast quarter of the O’odham Nation of Arizona; Ute Indian has accepted the custody and northeast quarter (SE1⁄4NE1⁄4), and the Tribe of the Uintah & Ouray administrative accountability for northeast quarter of the southeast Reservation, Utah; Ute Mountain Tribe approximately 179.14 acres of land at quarter (NE1⁄4SE1⁄4) of Section 33 in of the Ute Mountain Reservation, the Fort Lewis Military Reservation, Township 18 North, Range 1 East, Colorado, New Mexico & Utah; White Thurston County, Washington, subject Williamette Meridian, in Thurston Mountain Apache Tribe of the Fort to the terms, conditions, reservations, County, Washington. Apache Reservation, Arizona; Yavapai- and restrictions as described in the Dated: September 3, 2010. Apache Nation of the Camp Verde transfer letter, to be held in trust for the Larry Echo Hawk, Indian Reservation, Arizona; Yavapai- Nisqually Indian Tribe of the Nisqually Prescott Tribe of the Yavapai Reservation. Assistant Secretary—Indian Affairs. Reservation, Arizona; Ysleta Del Sur [FR Doc. 2010–22845 Filed 9–13–10; 8:45 am] Pueblo of Texas; Zuni Tribe of the Zuni Legal Description of the Property BILLING CODE 4310–W7–P Reservation, New Mexico; and the Acquired Southern Paiute Consortium, a non- federally recognized Indian group, that The property acquired includes all of DEPARTMENT OF THE INTERIOR this notice has been published. the following described tracts of land comprising a net area of 179.14 acres of Bureau of Land Management Dated: September 8, 2010. land, more or less, situated within Sherry Hutt, [LLCAD08000–L14300000–ET0000; CACA Thurston County, Washington, to wit: 51737] Manager, National NAGPRA Program. Two parcels of land in Section 33 in [FR Doc. 2010–22786 Filed 9–13–10; 8:45 am] Township 18 North, Range 1 East, Notice of Proposed Withdrawal and BILLING CODE 4312–50–S Willamette Meridian, in Thurston Opportunity for Public Meeting; County, Washington, more particularly California described as follows: DEPARTMENT OF THE INTERIOR AGENCY: Bureau of Land Management, Parcel 1: Interior. Bureau of Indian Affairs That portion of Tract A–1 (described ACTION: Notice. below) being in the northwest quarter Land Acquisitions; Nisqually Indian (NW1⁄4) of Section 33 of Township 18 SUMMARY: The Assistant Secretary of the Tribe North, Range 1 East, Willamette Interior for Land and Minerals AGENCY: Bureau of Indian Affairs, Meridian, lying northerly of the north Management proposes to withdraw, on Interior. right-of-way line of Yelm Highway SE behalf of the Bureau of Land ACTION: Notice of final agency action to and southwesterly of the southwest Management (BLM), approximately 507 transfer title from the United States to right-of-way line of Olympia-Yelm Road acres of reserved Federal minerals from the Nisqually Tribe as mandated by being State Highway 510 (formerly 5–1); the United States mining laws including Congress. and the mineral and geothermal leasing and Parcel 2: mineral materials laws, and 332,421 SUMMARY: The Assistant Secretary— acres of Federal lands from settlement, Indian Affairs accepts the transfer of the That portion of Tract A–1 (described sale, location, and entry under the approximately 179.14 acres, more or below) being in the northwest quarter public land laws, including the United 1 less, in trust for the Nisqually Indian (NW ⁄4) and the southwest quarter of the States mining laws, and the mineral and 1 1 Tribe of Washington, from the United northeast quarter (SW ⁄4NE ⁄4) of geothermal and mineral materials laws States Army Corps of Engineers. Section 33, of Township 18 North, for a period of 5 years. The withdrawal FOR FURTHER INFORMATION CONTACT: Ben Range 1 East, Willamette Meridian, and would protect the lands and preserve Burshia, Bureau of Indian Affairs, Chief, that portion of Tract A–2 (described the status quo of the lands and mineral Division of Real Estate Services, MS– below) being the north half of the estate included in the proposed training 1 1 4639–MIB, 1849 C Street, NW., northeast quarter (N ⁄2NE ⁄4) and the land acquisition/airspace establishment Washington, DC 20240, telephone no. southeast quarter of the northeast project of the United States Marine 1 1 (202) 208–7737. quarter (SE ⁄4NE ⁄4) of Section 33, of Corps (USMC) Air Ground Combat SUPPLEMENTARY INFORMATION: This Township 18 North, Range 1 East, Center (MCAGCC), Twenty-nine Palms, notice is published in the exercise of Willamette Meridian, lying northerly of California, pending the processing of an authority delegated by the Secretary of the north right-of-way line of Olympia- application for withdrawal for military the Interior to the Assistant Secretary— Yelm Road being State Highway 510 purposes under the Engle Act. The Indian Affairs by 209 DM 8. (formerly 5–1). application also includes 43,315 acres of Pursuant to subsection (a)(1) of The aggregate total acres for the two non-Federal lands located within the section 2837 of the National Defense parcels are 179.14 acres, more or less. proposed boundaries of the proposed

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withdrawal areas, and in the event that Sec. 20, N1⁄2; Sec. 35. they return to Federal ownership in the Secs. 21 to 27, inclusive; T. 3 N., R. 12 E., future, the lands would be subject to the Sec. 28, N1⁄2. Secs. 1, 2, and 3; terms and conditions described below. T. 5 N., R. 4 E., partly unsurveyed. Secs. 10 to 15, inclusive; Secs. 2 to 11, inclusive; Secs. 22, 23, and 24; The Federal and non-Federal lands are Sec. 12, all except for Mineral Survey No. Sec. 25, that portion lying west of the located in San Bernardino County. 6336; boundary of the Sheephole Valley DATES: Comments must be received on Sec. 13, E1⁄2, E1⁄2E1⁄2NW1⁄4, E1⁄2SW1⁄4, and Wilderness Area; or before December 13, 2010. E1⁄2W1⁄2SW1⁄4; Secs. 26 and 27; ADDRESSES: Secs. 14, 15, and 16; Sec. 34, that portion lying north and east Comments should be sent to 1 1 Ms. Roxie Trost, Barstow Office Field Sec. 17, NW ⁄4 and S ⁄2; of the boundary of Cleghorn Lakes Secs. 18 to 24, inclusive; Wilderness Area; Manager, Bureau of Land Management, Sec. 25, N1⁄2, SW1⁄4, and W1⁄2SE1⁄4; Sec. 35. 2601 Barstow Road, Barstow, California Sec. 26, lots 1 to 4, inclusive, W1⁄2, and T. 4 N., R. 12 E., 92311. SE1⁄4; Secs. 1 to 8, inclusive; FOR FURTHER INFORMATION CONTACT: Ms. Secs. 27 to 36, inclusive. Secs. 10, 11, 12, 14, and 15; Roxie Trost, Barstow Office Field T. 6 N., R. 4 E., Sec. 18, all except for Mineral Survey No. Secs. 1 to 15, inclusive, and Secs. 17 to 24, 5802; Manager, Bureau of Land Management, 1 760–252–6000 or Mr. Rusty Lee, inclusive; Sec. 19, N ⁄2 except for Mineral Survey Sec. 26; Nos. 5802 and 5805; Needles Office Field Manager, Bureau of Secs. 27 and 28, all except for Mineral Sec. 21, E1⁄2; Land Management, at 760–326–7000. Survey Nos. 3000 and 3980; Secs. 23 to 27, inclusive; SUPPLEMENTARY INFORMATION: The Secs. 29 to 35, inclusive; Sec. 28, E1⁄2; Assistant Secretary for Land and Sec. 36, N1⁄2 and SW1⁄4. Secs. 34 and 35. Minerals Management proposes to T. 3 N., R. 5 E., T. 5 N., R. 12 E., withdraw the following described Secs. 1, 2, and 3; Secs. 19 and 20, all except the lands Federal lands and mineral estate from Sec. 4, lots 1 to 12, inclusive; conveyed by Patent No. 1000678; Secs. 5 and 6; Secs. 21 to 27, inclusive; settlement, sale, location, and entry Sec. 9, lots 1 and 2; Sec. 28, N1⁄2 and SW1⁄4; under the public land laws, including Sec. 10, lots 1 to 7, inclusive; Secs, 29 and 30, all except the lands the United States mining laws, and from Sec. 11; conveyed by Patent No. 1000678; the operation of the mineral and Sec. 12, lots 1 to 12, inclusive. Secs. 31 to 35, inclusive. geothermal leasing laws and the T. 4 N., R. 5 E., partly unsurveyed. T. 3 N., R. 13 E., Materials Act of 1947, subject to valid Secs. 2 to 35, inclusive. Sec. 4, that portion lying west of the existing rights, to protect the lands and T. 5 N., R. 5 E., Sheephole Valley Wilderness Area; preserve the status quo pending action Secs. 4 and 5; Secs. 5 and 7; Sec. 6, lots 1 to 10, inclusive, SE1⁄4NW1⁄4, on an application for withdrawal of the Secs. 8, 17, 18, and 19, those portions lying E1⁄2SW1⁄4, N1⁄2SE1⁄4, and SW1⁄4SE1⁄4; west of the Sheephole Valley Wilderness lands for military purposes under the Sec. 7, lots 1 to 4, inclusive, lots 6 and 7, Area. Engle Act: S1⁄2NE1⁄4, SE1⁄4NW1⁄4, E1⁄2SW1⁄4, and T. 4 N., R. 13 E., 1 1. Federally Owned Surface and Mineral SE ⁄4; Secs. 1 to 4, inclusive, Secs. 6 to 15, Estate Sec. 8; inclusive, and Secs. 17 to 22, inclusive; Secs. 14, 15, 18, 19, 20, 22, 23, 26, 27, 28, Secs. 23, 24, and 27, those portions lying San Bernardino Meridian 30, 31, 32, 34, and 35. northwesterly of the Sheephole Valley Western Acquisition Area T. 6 N., R. 5 E., Wilderness Area; Secs. 17 to 20, inclusive, and Secs. 29 to Secs. 28 to 32, inclusive; T. 4 N., R. 2 E., 32, inclusive. Sec. 1. Secs. 33 and 34, that portion lying T. 5 N., R. 2 E., Southern Acquisition Area northwesterly of the Sheephole Valley Secs. 1 and 2; T. 2 N., R. 9 E., Wilderness Area. Secs. 11 to 14, inclusive, and Secs. 23 to Sec. 25; T. 5 N., R. 13 E., 26, inclusive; Sec. 26, all except for Secs. 13, 19, and 20; 1 1 1 1 1 Sec. 22, W ⁄2; Sec. 35. N ⁄2NW ⁄4SW ⁄4SW ⁄4; 1 1 1 1 1 Secs. 23 to 28, inclusive, Secs. 30, 31, 32, T. 6 N., R. 2 E., Sec. 27, E ⁄2 except for W ⁄2SE ⁄4SE ⁄4SE ⁄4; 1 1 1 1 34, and 35. Sec. 13; Sec. 34, S ⁄2NE ⁄4NE ⁄4NE ⁄4, 1 1 1 1 1 1 T. 3 N., R. 14 E., Secs. 23 to 26, inclusive; SE ⁄4NE ⁄4NE ⁄4, W ⁄2NE ⁄4NE ⁄4, 1 1 1 1 Secs. 1 and 2; Sec. 35. NW ⁄4NE ⁄4, and E ⁄2NW ⁄4; 1 1 1 1 1 Secs. 3, 4, and 10, those portions lying east T. 4 N., R. 3 E., Sec. 35, N ⁄2 except for N ⁄2NE ⁄4NE ⁄4NE ⁄4 1 1 1 1 1 of the Sheephole Valley Wilderness Sec. 1, lots 1 and 2 of NE ⁄4, lots 1 and 2 and S ⁄2SW ⁄4NW ⁄4NE ⁄4. of NW1⁄4, NW1⁄4;SW1⁄4, and SE1⁄4; T. 2 N., R. 10 E., Area; Sec. 2; Secs. 2 to 11, inclusive; Secs. 11, 12, and 13; Sec. 3, E1⁄2 of lot 1 of NE1⁄4, lot 2 of NE1⁄4, Sec. 14, that portion lying north and west Secs. 14 and 15, those portions lying east lot 2 of NW1⁄4, and S1⁄2S1⁄2; of the boundary of the Cleghorn Lakes of the Sheephole Valley Wilderness Sec. 4, lots 1 and 2 of NE1⁄4, lots 1 and 2 Wilderness Area; Area. of NW1⁄4;, SW1⁄4, and S1⁄2SE1⁄2; Sec. 15 and Secs. 17 to 22, inclusive; T. 4 N., R. 14 E., Secs 5 and 6; Sec. 23, that portion lying west of the Secs. 6, 7, 8, 10, 11, 12, 14, 15, 17, and 18; Sec. 7, E1⁄2; boundary of the Cleghorn Lakes Sec. 20, that portion lying northeasterly of Secs. 8 and 9; Wilderness Area; the Sheephole Valley Wilderness Area; Sec. 10, N1⁄2N1⁄2; Sec. 26, that portion lying west and south Secs. 21 to 24, inclusive; Sec. 12, N1⁄2 and SE1⁄4. of the boundary of the Cleghorn Lakes Sec. 25, that portion lying northwesterly of T. 5 N., R. 3 E., partly unsurveyed. Wilderness Area; the Cadiz Dunes Wilderness Area; Secs. 2 to 35, inclusive; Secs. 27 to 35, inclusive. Secs. 26, 27, and 28; Sec. 36, SW1⁄4. Sec. 29, that portion lying northeasterly of T. 4 N., R. 4 E., Eastern Acquisition Area the Sheephole Valley Wilderness Area; Secs. 1 to 15, inclusive; T. 4 N., R. 11 E., Secs. 33, 34, and 35. Sec. 17; Secs. 1, 2, 11, 12, and 14. T. 5 N., R. 14 E., Sec. 18, N;1⁄2 T. 5 N., R. 11 E., Secs. 30 and 31.

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T. 4 N, R. 15 E., Eastern Acquisition Area Sec. 26, N1⁄2NW1⁄4SW1⁄4SW1⁄4; 1 1 1 1 Secs. 1 to 4, inclusive; T. 5 N., R. 12 E., Sec. 27, W ⁄2SE ⁄4SE ⁄4SE ⁄4. Sec. 5, all except for railroad rights-of-way; 1 1 1 Sec. 5, lot 1 of NE ⁄4, W ⁄2 of lot 1 of NW ⁄4, Eastern Acquisition Area Secs. 6, 7 and 8; 1 1 lots 5 and 6 inclusive, SE ⁄4NW ⁄4, and T. 4 N., R. 11 E., Sec. 9, all except for railroad rights-of-way; 1 S ⁄2. Secs. 10 to 15, inclusive, and Secs. 18 to Sec. 13. The areas described aggregate 507 acres, T. 5 N., R. 11 E., 21, inclusive; more or less in San Bernardino County. Secs. 22 to 25, those portions lying Sec. 36. northwesterly or northeasterly of the 3. Non-Federal Lands T. 4 N., R. 12 E., Cadiz Dunes Wilderness Area, inclusive; Secs. 9, 13, 16, and 17; The following described lands are located Secs. 18 to 19, that land described by metes Secs. 28 to 30, those portions lying within the boundaries of the proposed northwesterly or northeasterly of the and bounds in Patent Nos. 973412 and withdrawal areas. In the event the United 968382, and containing 82.310 acres, Cadiz Dunes Wilderness Area, inclusive; States subsequently acquires these lands, Sec. 32, that portion lying northeasterly of more or less; they would be subject to the terms and Sec. 22, and 36. the Cadiz Dunes Wilderness Area. conditions of the withdrawal as described T. 5 N., R. 15 E., T. 5 N., R. 12 E., above. The Federal interest would be subject Secs. 19, 20, 29, and 30, all the lands Secs. 10 to 15, inclusive, and Secs. 19 to to the terms and conditions of the 35, inclusive. conveyed by Patent No. 1000678, withdrawal as described above: containing 1,342.40 acres, more or less; T. 3 N., R. 16 E., (a). Non-Federal Surface and Mineral Sec. 3, that portion lying northeasterly of Sec. 16; Estate: 1 the pipeline authorized by CACA 14013 Sec. 28, SE ⁄4; and lying northwesterly of the Old San Bernardino Meridian Sec. 36. T. 4 N., R. 13 E., Woman Mountains Wilderness Area. Western Acquisition Area T. 4 N., R. 16 E., Sec. 5 and 16; T. 5 N., R. 2 E., T. 5 N., R. 13 E., Secs. 4 and 5, those portions lying Sec. 36. southwesterly of the Old Woman Sec. 21; T. 6 N., R. 2 E., Sec. 22, E1⁄2; Mountains Wilderness Area; Sec. 36. Secs. 6, 7 and 8; Sec. 29 and 33; T. 5 N., R. 3 E., Sec. 36, SW1⁄4. Sec. 9, that portion lying southwesterly of Sec. 1; the Old Woman Mountains Wilderness T. 3 N., R. 14 E., Sec. 36, N1⁄2 and SE1⁄4. Sec. 36, that portion lying east of the Area; T. 6 N., R. 3 E., Sheephole Valley Wilderness Area. Sec. 16, that portion lying southwesterly of Sec. 1, S1⁄2 of lot 4; T. 4 N., R. 14 E., the Old Woman Mountains Wilderness Sec. 4, that land described by metes and Secs. 1 to 5, inclusive, secs. 9, 13, and 16. Area; bounds in Patent No. 04–67–0117 and T. 5 N., R. 14 E., Secs. 17 to 20, inclusive; containing 180.445 acres, more or less; Secs. 19 to 29, inclusive, and secs. 32 to Secs. 21 and 22, those portions lying Secs. 10 to 11, that land described by metes 36, inclusive. southwesterly of the Old Woman and bounds in Patent No. 04–68–0173 T. 4 N., R. 15 E., Mountains Wilderness Area; and containing 20.104 acres, more or Secs. 16 to 17, inclusive; Secs. 27, that portion lying southwesterly less; Sec. 33, that portion lying northwesterly of of the Old Woman Mountains Sec. 25; the Sheephole Valley Wilderness Area. Wilderness Area; Sec. 31, that land described by metes and T. 4 N., R. 16 E., Sec. 28; bounds in Patent No. 994392 and Sec. 29, that portion contained in railroad Sec. 29, all except for that portion in containing 41.322 acres, more or less; right-of-way containing 17 acres; railroad right-of-way containing 17 acres; Sec. 36. Sec. 33, that portion contained in railroad Secs. 30, 31, and 32, those portions lying T. 4 N., R. 4 E., right-of-way containing 14.55 acres. northeasterly of the Cadiz Dunes Sec. 16, N1⁄2 and SE1⁄4. T. 5 N., R. 16 E., Wilderness Area; T. 5 N., R. 4 E., Sec. 29, that portion lying southwesterly of Sec. 33, that portion lying northeasterly of Sec. 1; the Old Woman Mountains Wilderness the Cadiz Dunes Wilderness Area except Sec. 12, E1⁄2NE1⁄4 and N1⁄2SE1⁄4; Area. for that portion contained in railroad Sec. 13, W1⁄2NW1⁄4, west 20 rods of the The areas described aggregate 39,570 acres, right-of-way containing 14.55 acres; E1⁄2NW1⁄4, and W1⁄2W1⁄2SW1⁄4; more or less in San Bernardino County. Sec. 34, that portion lying southwesterly of Sec. 17, NE1⁄4; (b). State of California owned surface and the Old Woman Mountains Wilderness Sec. 25, lots 1 to 8, inclusive, and E1⁄2SE1⁄4. mineral estate: Area. T. 6 N., R. 4 E., T. 5 N., R. 16 E., Sec. 16, and 25; San Bernardino Meridian Secs. 6 and 7, those portions lying westerly Secs. 27 to 28, that land described by metes Western Acquisition Area of the Old Woman Mountains and bounds in Patent Nos. 24783, 38438, T. 4 N., R. 3 E., Wilderness Area; and 38980, and containing 151.250 acres, Sec. 1, NE1⁄4SW1⁄4 and S1⁄2SW1⁄4; Secs. 18, 19, and 20, those portions lying more or less; 1 1 1 1 1 1 Sec. 3, SW ⁄4NE ⁄4, S ⁄2NW ⁄4, and N ⁄2S ⁄2; 1 westerly of the Old Woman Mountains Sec. 36, SE ⁄4. 1 1 Sec. 4, N ⁄2SE ⁄4. Wilderness Area; T. 3 N., R. 5 E., T. 6 N., R. 3 E., Secs. 30 and 31; 1 1 1 1 Sec. 4, W ⁄2NW ⁄4NE ⁄4SW ⁄4, Sec. 16. Sec. 32, that portion lying westerly of the 1 1 1 1 1 1 1 NW ⁄4NE ⁄4SW ⁄4, W ⁄2SE ⁄4NE ⁄4SW ⁄4, T. 4 N., R. 4 E., 1 1 1 1 Old Woman Mountains Wilderness Area. E ⁄2NE ⁄4SW ⁄4SW ⁄4, 1 Sec. 16, SW ⁄4; 1 1 1 1 The areas described aggregate 332,421 W ⁄2NE ⁄4SW ⁄4SW ⁄4, 1 1 Sec. 19, E ⁄2E ⁄2; 1 1 1 1 acres, more or less in San Bernardino County. E ⁄2SW ⁄4SW ⁄4SW ⁄4, 1 Sec. 20, S ⁄2; 1 1 1 1 W ⁄2SE ⁄4SW ⁄4SW ⁄4, and 1 Sec. 28, S ⁄2; 2. Non-Federal Surface Estate and Federal 1 1 1 1 W ⁄2SE ⁄4SE ⁄4SW ⁄4; 1 Mineral Estate Sec. 29, E ⁄2. T. 4 N., R. 5 E., T. 5 N., R. 5 E., San Bernardino Meridian Secs. 1 and 36. Sec. 16. Southern Acquisition Area T. 5 N., R. 5 E., 1 1 Southern Acquisition Area Sec. 6, SE ⁄4SE ⁄4; T. 2 N., R. 9 E., Sec. 7, lot 5; T. 2 N., R. 10 E., 1 1 1 1 Sec. 26, N ⁄2NW ⁄4SW ⁄4SW ⁄4; Secs. 9, 17, 21, 29, and 33. Sec. 16. Sec. 27, W1⁄2SE1⁄4SE1⁄4SE1⁄4; 1 1 1 1 Southern Acquisition Area Eastern Acquisition Area Sec. 35, N ⁄2NE ⁄4NE ⁄4NE ⁄4 and S1⁄2SW1⁄4NW1⁄4NE1⁄4. T. 2 N., R. 9 E., T. 5 N., R. 13 E.,

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Sec. 36, N1⁄2 and SE1⁄4. withdrawal is approved prior to that DEPARTMENT OF JUSTICE The areas described aggregate 3,745 acres, date. more or less in San Bernardino County. Licenses, permits, cooperative [OMB Number 1103–0016] The purpose of the proposed agreement, or discretionary land use Justice Management Division; Agency withdrawal is to protect and preserved authorizations of a temporary nature Information Collection Activities: the status quo of the lands pending which will not significantly impact the Proposed Collection; Comments action on an application for withdrawal values to be protected by the Requested for military purposes under the Engle withdrawal may be allowed with the Act. Currently, the lands are not being approval of the authorized officer of ACTION: 30-Day Notice of Information used for military training purposes. BLM during the segregative period. Collection Under Review: Certification The use of a right-of-way or Authority: 43 CFR 2310.3–1(a), (b)(1) and of Identity. cooperative agreement would not (2). prohibit new mineral location. The Department of Justice (DOJ), Karla D. Norris, The proposed withdrawal would not Justice Management Division, Facilities require water. Associate Deputy State Director, CA–930. and Administrative Services Staff (JMD/ There are no suitable alternative sites. [FR Doc. 2010–22817 Filed 9–13–10; 8:45 am] FASS) will be submitting the following The USMC analyzed lands elsewhere in BILLING CODE 3810–FF–P information collection request to the the United States and concluded that Office of Management and Budget the lands located adjacent to MCAGCC (OMB) for review and approval in were the best site for the proposed INTERNATIONAL TRADE accordance with the Paperwork training. COMMISSION Reduction Act of 1995. The proposed On or before December 13, 2010, all information collection is published to persons who wish to submit comments, [USITC SE–10–027] obtain comments from the public and suggestions, or objections in connection affected agencies. This proposed Government in the Sunshine Act with the proposed withdrawal may information collection was previously Meeting Notice present their views in writing to the published in the Federal Register BLM, Barstow Field Office Manager at Volume 75, Number 133 page 39972 on AGENCY HOLDING THE MEETING: United July 13, 2010, allowing for a 60 day the address indicated above. States International Trade Commission. Comments, including names and comment period. TIME AND DATE: street addresses of respondents, will be September 20, 2010 at The purpose of this notice is to allow available for public review at the BLM 1 p.m. for an additional 30 days for public Barstow Field Office at the address PLACE: Room 101, 500 E Street, SW., comment until October 14, 2010. This above during regular business hours. Washington, DC 20436, Telephone: process is conducted in accordance with Individual respondents may request (202) 205–2000. 5 CFR 1320.10. confidentiality. Before including your STATUS: Open to the public. Written comments and/or suggestions address, phone number, e-mail address, MATTERS TO BE CONSIDERED: regarding the items contained in this or other personal identifying 1. Agenda for future meetings: none. notice, especially the estimated public information in your comment, be 2. Minutes. burden and associated response time, advised that your entire comment— 3. Ratification List. should be directed to The Office of including your personal identifying 4. Inv. No. 731–TA–125 (Third Management and Budget, Office of information—may be made publicly Review) (Potassium Permanganate from Information and Regulatory Affairs, available at any time. While you can ask China)—briefing and vote. (The Attention Department of Justice Desk us in your comment to withhold from Commission is currently scheduled to Officer, Washington, DC 20503. public review your personal identifying transmit its determination and Additionally, comments may be information, we cannot guarantee that Commissioners’ opinions to the submitted to OMB via facsimile to we will be able to do so. Secretary of Commerce on or before (202)–395–5806. Notice is hereby given that a public September 30, 2010.) Written comments and suggestions meeting will be afforded in connection 5. Inv. Nos. 731–TA–1082 and 1083 from the public and affected agencies with the proposed withdrawal. A notice (Review)(Chlorinated Isocyanurates concerning the proposed collection of of the time and place of the public from China and Spain)—briefing and information are encouraged. Your meeting will be published in the vote. (The Commission is currently comments should address one or more Federal Register and a local newspaper scheduled to transmit its determinations of the following four points: at least 30 days before the scheduled and Commissioners’ opinions to the —Evaluate whether the proposed date of the meeting. Secretary of Commerce on or before collection of information is necessary This withdrawal proposal will be September 30, 2010.) for the proper performance of the processed in accordance with the 6. Outstanding action jackets: none. functions of the agency, including regulations set forth in 43 CFR Part In accordance with Commission whether the information will have 2300. policy, subject matter listed above, not practical utility; For a period of 2 years from the date disposed of at the scheduled meeting, —Evaluate the accuracy of the agencies of publication of this notice in the may be carried over to the agenda of the estimate of the burden of the Federal Register, the lands will be following meeting. proposed collection of information, segregated from settlement, sale, including the validity of the By order of the Commission. location and entry under the public land methodology and assumptions used; laws, including the United States Issued: September 10, 2010. —Enhance the quality, utility, and mining laws, and from the operation of William R. Bishop, clarity of the information to be the mineral and geothermal leasing laws Hearings and Meetings Coordinator. collected; and and the Materials Act of 1947 unless the [FR Doc. 2010–23055 Filed 9–10–10; 4:15 pm] —Minimize the burden of the collection application is denied or canceled or the BILLING CODE 7020–02–P of information on those who are to

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respond, including through the use of ACTION: Notice of final aggregate lisdexamfetamine, meperidine, appropriate automated, electronic, production quotas for 2010. methadone, methylphenidate, morphine mechanical, or other technological (for conversion), morphine (for sale), collection techniques or other forms SUMMARY: This notice establishes final nabilone, opium (tincture), oxycodone of information technology, e.g., 2010 aggregate production quotas for (for conversion), oxycodone (for sale), permitting electronic submission of controlled substances in schedules I and oxymorphone (for sale), remifentanil, responses. II of the Controlled Substances Act sufentanil, tapentadol, (CSA). DEA has taken into consideration tetrahydrocannabinols, thebaine and Overview of This Information comments received in response to a tilidine were insufficient to provide for Collection notice of the proposed revised aggregate the estimated medical, scientific, (1) Type of Information Collection: production quotas for 2010 published research, and industrial needs of the Extension of a Currently Approved June 23, 2010 (75 FR 35838). United States, for export requirements Collection. DATES: Effective Date: September 14, and for the establishment and (2) Title of the Form/Collection: 2010. maintenance of reserve stocks. Certification of Identity. FOR FURTHER INFORMATION CONTACT: DEA has taken into consideration the (3) Agency form number, if any, and Christine A. Sannerud, Ph.D., Chief, above comments along with the relevant the applicable component of the Drug and Chemical Evaluation Section, 2009 year-end inventories, initial 2010 Department of Justice sponsoring the Drug Enforcement Administration, 8701 manufacturing quotas, 2010 export collection: Form DOJ–361. Facilities and Morrissette Drive, Springfield, VA requirements, actual and projected 2010 Administrative Services Staff, Justice 22152, Telephone: (202) 307–7183. sales, research, product development Management Division, U.S. Department requirements and additional of Justice. SUPPLEMENTARY INFORMATION: Section applications received. Based on this (4) Affected public who will be asked 306 of the CSA (21 U.S.C. 826) requires information, the DEA has adjusted the or required to respond, as well as a brief that the Attorney General establish final 2010 aggregate production quotas abstract: Primary: American Citizens. aggregate production quotas for each for alfentanil, amphetamine (for Other: Federal Government. The basic class of controlled substance listed conversion), amphetamine (for sale), information collection will be used by in schedules I and II. This responsibility carfentanil, dihydromorphine, the Department to identify individuals has been delegated to the Administrator diphenoxylate, marihuana, morphine requesting certain records under the of the DEA by 28 CFR 0.100. The (for sale), noroxymorphone (for sale), Privacy Act. Without this form an Administrator, in turn, has redelegated opium (tincture), oxycodone (for individual cannot obtain the this function to the Deputy conversion), oxycodone (for sale), information requested. Administrator, pursuant 28 CFR 0.104. oxymorphone (for conversion), (5) An estimate of the total number of The 2010 aggregate production quotas oxymorphone (for sale), tapentadol, respondents and the amount of time represent those quantities of controlled tetrahydrocannabinols, and tilidine. estimated for an average respondent to substances in schedules I and II that 4-anilino-N-phenethyl-4-piperidine respond: It is estimated that 27,000 may be produced in the United States in (ANPP) pursuant to DEA’s final rule respondents will complete the form 2010 to provide adequate supplies of published in the Federal Register on within approximately 30 minutes. each substance for: The estimated June 29, 2010 (75 FR 37295) will be (6) An estimate of the total burden (in medical, scientific, research and controlled as a schedule II controlled hours) associated with the collection: industrial needs of the United States; substance on August 30, 2010. As such, There are an estimated 13,500 annual lawful export requirements; and the DEA has established an aggregate burden hours associated with this establishment and maintenance of production quota for ANPP to meet the collection. reserve stocks (21 U.S.C. 826(a) and 21 estimated medical, scientific, research, If Additional Information is Required CFR 1303.11). These quotas do not and industrial needs of the United Contact: Lynn Murray, Department include imports of controlled States; lawful export requirements; and Clearance Officer, United States substances. the establishment and maintenance of Department of Justice, Policy and On June 23, 2010, a notice of the reserve stocks. Planning Staff, Justice Management proposed revised 2010 aggregate Regarding codeine (for conversion), Division, Suite 1600, Patrick Henry production quotas for certain controlled codeine (for sale), dextropropoxyphene, Building, 601 D Street, NW., substances in schedules I and II was gamma hydroxybutyric acid, Washington, DC 20530. published in the Federal Register (75 hydrocodone, hydromorphone, Dated: September 8, 2010. FR 35838). All interested persons were lisdexamfetamine, meperidine, invited to comment on or object to these Lynn Murray, methadone, methylphenidate, morphine proposed aggregate production quotas (for conversion), nabilone, remifentanil, Department Clearance Officer, PRA, United States Department of Justice. on or before July 23, 2010. sufentanil, and thebaine, DEA has Fourteen companies, thirteen DEA determined that the proposed revised [FR Doc. 2010–22888 Filed 9–13–10; 8:45 am] registered manufacturers and one non- 2010 aggregate production quotas are BILLING CODE 4410–CW–P registrant, commented on a total of 28 sufficient to meet the current 2010 schedules I and II controlled substances estimated medical, scientific, research, DEPARTMENT OF JUSTICE within the published comment period. and industrial needs of the United Comments received proposed that the States and to provide for adequate Drug Enforcement Administration aggregate production quotas for inventories. alfentanil, amphetamine (for Therefore, under the authority vested [Docket No. DEA–318F] conversion), amphetamine (for sale), in the Attorney General by Section 306 Controlled Substances: Final Revised codeine (for conversion), codeine (for of the CSA (21 U.S.C. 826), and Aggregate Production Quotas for 2010 sale), dextropropoxyphene, delegated to the Administrator of the dihydromorphine, diphenoxylate, DEA by 28 CFR 0.100, and redelegated AGENCY: Drug Enforcement gamma hydroxybutyric acid, to the Deputy Administrator, pursuant Administration (DEA), Justice. hydrocodone, hydromorphone, to 28 CFR 0.104, the Deputy

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Administrator hereby orders that the expressed in grams of anhydrous acid or 2010 final aggregate production quotas base, be established as follows: for the following controlled substances,

Final revised Basic class 2010 quotas

Schedule I

2,5-Dimethoxyamphetamine ...... 2 g 2,5-Dimethoxy-4-ethylamphetamine (DOET) ...... 2 g 3-Methylfentanyl ...... 2 g 3-Methylthiofentanyl ...... 2 g 3,4-Methylenedioxyamphetamine (MDA) ...... 20 g 3,4-Methylenedioxy-N-ethylamphetamine (MDEA) ...... 10 g 3,4-Methylenedioxymethamphetamine (MDMA) ...... 20 g 3,4,5-Trimethoxyamphetamine ...... 2 g 4-Bromo-2,5-dimethoxyamphetamine (DOB) ...... 2 g 4-Bromo-2,5-dimethoxyphenethylamine (2-CB) ...... 2 g 4-Methoxyamphetamine ...... 77 g 4-Methylaminorex ...... 2 g 4-Methyl-2,5-dimethoxyamphetamine (DOM) ...... 2 g 5-Methoxy-3,4-methylenedioxyamphetamine ...... 2 g Acetyl-alpha-methylfentanyl ...... 2 g Acetyldihydrocodeine ...... 2 g Acetylmethadol ...... 2 g Allylprodine ...... 2 g Alphacetylmethadol ...... 2 g Alpha-ethyltryptamine ...... 2 g Alphameprodine ...... 2 g Alphamethadol ...... 2 g Alpha-methylfentanyl ...... 2 g Alpha-methylthiofentanyl ...... 2 g Alpha-methyltryptamine (AMT) ...... 2 g Aminorex ...... 2 g Benzylmorphine ...... 2 g Betacetylmethadol ...... 2 g Beta-hydroxy-3-methylfentanyl ...... 2 g Beta-hydroxyfentanyl ...... 2 g Betameprodine ...... 2 g Betamethadol ...... 2 g Betaprodine ...... 2 g Bufotenine ...... 3 g Cathinone ...... 3 g Codeine-N-oxide ...... 602 g Diethyltryptamine ...... 2 g Difenoxin ...... 3,000 g Dihydromorphine ...... 3,608,000 g Dimethyltryptamine ...... 3 g Gamma-hydroxybutyric acid ...... 52,156,000 g Heroin ...... 20 g Hydromorphinol ...... 2 g Hydroxypethidine ...... 2 g Ibogaine ...... 1 g Lysergic acid diethylamide (LSD) ...... 15 g Marihuana ...... 21,000 g Mescaline ...... 5 g Methaqualone ...... 7 g Methcathinone ...... 4 g Methyldihydromorphine ...... 2 g Morphine-N-oxide ...... 605 g N-Benzylpiperazine ...... 2 g N,N-Dimethylamphetamine ...... 2 g N-Ethylamphetamine ...... 2 g N-Hydroxy-3,4-methylenedioxyamphetamine ...... 2 g Noracymethadol ...... 2 g Norlevorphanol ...... 52 g Normethadone ...... 2 g Normorphine ...... 16 g Para-fluorofentanyl ...... 2 g Phenomorphan ...... 2 g Pholcodine ...... 2 g Psilocybin ...... 2 g Psilocyn ...... 2 g Tetrahydrocannabinols ...... 264,000 g Thiofentanyl ...... 2 g

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Final revised Basic class 2010 quotas

Tilidine ...... 10 g Trimeperidine ...... 2 g

Schedule II

1-Phenylcyclohexylamine ...... 2 g 4-anilino-N-phenethyl-4-piperidine (ANPP) ...... 1,100,000 g Alfentanil ...... 8,000 g Alphaprodine ...... 2 g Amobarbital ...... 3 g Amphetamine (for conversion) ...... 7,500,000 g Amphetamine (for sale) ...... 18,600,000 g Carfentanil ...... 200 g Cocaine ...... 247,000 g Codeine (for conversion) ...... 65,000,000 g Codeine (for sale) ...... 39,605,000 g Dextropropoxyphene ...... 92,000,000 g Dihydrocodeine ...... 800,000 g Diphenoxylate ...... 827,000 g Ecgonine ...... 83,000 g Ethylmorphine ...... 2 g Fentanyl ...... 1,428,000 g Glutethimide ...... 2 g Hydrocodone ...... 55,000,000 g Hydromorphone ...... 3,455,000 g Isomethadone ...... 11 g Levo-alphacetylmethadol (LAAM) ...... 3 g Levomethorphan ...... 5 g Levorphanol ...... 10,000 g Lisdexamfetamine ...... 9,000,000 g Meperidine ...... 6,600,000 g Meperidine Intermediate-A ...... 3 g Meperidine Intermediate-B ...... 7 g Meperidine Intermediate-C ...... 3 g Metazocine ...... 1 g Methadone ...... 20,000,000 g Methadone Intermediate ...... 26,000,000 g Methamphetamine ...... 3,130,000 g

750,000 g of levo-desoxyephedrine for use in a non-controlled, non-prescription product; 2,331,000 g for methamphetamine (for conversion) mostly for conversion to a schedule III product; and 49,000 g for methamphetamine (for sale)

Methylphenidate ...... 50,000,000 g Morphine (for conversion) ...... 83,000,000 g Morphine (for sale) ...... 39,000,000 g Nabilone ...... 9,002 g Noroxymorphone (for conversion) ...... 9,000,000 g Noroxymorphone (for sale) ...... 41,000 g Opium (powder) ...... 230,000 g Opium (tincture) ...... 1,500,000 g Oripavine ...... 15,000,000 g Oxycodone (for conversion) ...... 5,600,000 g Oxycodone (for sale) ...... 105,500,000 g Oxymorphone (for conversion) ...... 12,800,000 g Oxymorphone (for sale) ...... 3,070,000 g Pentobarbital ...... 28,000,000 g Phenazocine ...... 1 g Phencyclidine ...... 14 g Phenmetrazine ...... 2 g Phenylacetone ...... 12,500,001 g Racemethorphan ...... 2 g Remifentanil ...... 2,500 g Secobarbital ...... 67,000 g Sufentanil ...... 7,000 g Tapentadol ...... 1,000,000 g Thebaine ...... 126,000,000 g

The Deputy Administrator further controlled substances included in 21 The Office of Management and Budget orders that the aggregate production CFR 1308.11 and 1308.12 shall be zero. has determined that notices of aggregate quotas for all other schedule I and II production quotas are not subject to

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centralized review under Executive OFFICE OF NATIONAL DRUG and committee membership activities; Order 12866. CONTROL POLICY and number of years, recentness, and This action does not preempt or type of setting for patient advocacy. modify any provision of state law; nor Appointment of Members of Senior FOR FURTHER INFORMATION CONTACT: Ms. does it impose enforcement Executive Services Performance Ashley Cockerham, U.S. Nuclear responsibilities on any state; nor does it Review Board. Regulatory Commission, Office of Federal and State Materials and diminish the power of any state to AGENCY: Office of National Drug Control enforce its own laws. Accordingly, this Policy [ONDCP]. Environmental Management Programs; action does not have federalism (240) 888–7129; ashley.cockerham@nrc. ACTION: implications warranting the application Notice of Appointments. gov. of Executive Order 13132. Heading: Appointment of Members of SUPPLEMENTARY INFORMATION: The The Deputy Administrator hereby Senior Executive Services Performance patients’ rights advocate provides certifies that this action will have no Review Board. advice to NRC staff on patients’ issues significant impact upon small entities SUMMARY: The following persons have associated with the regulation of whose interests must be considered been appointed to the ONDCP Senior medical applications of byproduct under the Regulatory Flexibility Act, 5 Executive Service Performance Review material. This advice includes ensuring U.S.C. 601 et seq. The establishment of Board: Dr. Terry Zobeck, Ms. Martha patients’ rights are represented during aggregate production quotas for Gagne, Ms. Christine Leonard, and Mr. the development and implementation of schedules I and II controlled substances Patrick Ward. NRC medical-use policy. This is mandated by law and by international FOR FURTHER INFORMATION CONTACT: individual is appointed based on his or treaty obligations. The quotas are Please direct any questions to Linda V. her professional and personal necessary to provide for the estimated Priebe, Deputy General Counsel (202) experience with and/or knowledge medical, scientific, research and 395–6622, Office of National Drug about patient advocacy, involvement industrial needs of the United States, for Control Policy, Executive Office of the and/or leadership with patient advocacy export requirements and the President, Washington, DC 20503. organizations, and other information establishment and maintenance of obtained in letters or during the reserve stocks. While aggregate Linda V. Priebe, selection process. Nominees should production quotas are of primary Deputy General Counsel. have the demonstrated ability to importance to large manufacturers, their [FR Doc. 2010–22794 Filed 9–13–10; 8:45 am] establish effective work relationships impact upon small entities is neither BILLING CODE 3180–02–P with peers and implement successful negative nor beneficial. Accordingly, the approaches to problem solving and Deputy Administrator has determined conflict resolution. ACMUI members that this action does not require a NUCLEAR REGULATORY currently serve a four-year term and regulatory flexibility analysis. COMMISSION may be considered for reappointment to This action meets the applicable an additional term. The current standards set forth in Sections 3(a) and Advisory Committee on the Medical membership is comprised of the 3(b)(2) of Executive Order 12988 Civil Uses of Isotopes: Call for Nominations following professionals: (a) Nuclear Justice Reform. medicine physician; (b) nuclear AGENCY: U.S. Nuclear Regulatory This action will not result in the cardiologist; (c) nuclear medicine Commission. expenditure by state, local, and tribal physicist; (d) therapy medical physicist; governments, in the aggregate, or by the ACTION: Call for Nominations. (e) radiation safety officer; (f) nuclear pharmacist; (g) two radiation private sector, of $126,400,000 or more SUMMARY: The U.S. Nuclear Regulatory in any one year, and will not oncologists; (h) patients’ rights Commission (NRC) is advertising for advocate; (i) Food and Drug significantly or uniquely affect small nominations for the patients’ rights governments. Therefore, no actions were Administration representative; (j) advocate position on the Advisory Agreement State representative; (k) deemed necessary under the provisions Committee on the Medical Uses of of the Unfunded Mandates Reform Act health care administrator; and (l) Isotopes (ACMUI). Nominees should diagnostic radiologist. For additional of 1995. have professional or personal This action is not a major rule as information about membership on the experience with or knowledge about ACMUI, visit the ACMUI Membership defined by Section 804 of the Small patient advocacy. Also, involvement or Business Regulatory Enforcement Web page, http://www.nrc.gov/about- leadership with patient advocacy nrc/regulatory/advisory/acmui/ Fairness Act of 1996. This action will organizations is preferred. not result in an annual effect on the membership.html. DATES: Nominations are due on or economy of $100,000,000 or more; a Nominees must be U.S. citizens and before November 15, 2010. major increase in costs or prices; or be able to devote approximately 160 significant adverse effects on NOMINATION PROCESS: Submit an hours per year to Committee business. competition, employment, investment, electronic copy of resume or curriculum Members are expected to attend semi- productivity, innovation, or on the vitae, along with a cover letter, to Ms. annual meetings in Rockville, Maryland ability of United States-based Ashley Cockerham, ashley. and to participate in teleconferences, as companies to compete with foreign- [email protected]. The cover letter needed. Members who are not Federal based companies in domestic and should describe the nominee’s current employees are compensated for their export markets. involvement with patients’ rights service. In addition, these members are advocacy and express the nominee’s reimbursed for travel and Dated: September 2, 2010. interest in the position. Please ensure correspondence expenses. Full-time Michele M. Leonhart, that resume or curriculum vitae Federal employees are reimbursed for Deputy Administrator. includes the following information, if travel expenses only. [FR Doc. 2010–22785 Filed 9–13–10; 8:45 am] applicable: education; certification; Security Background Check: The BILLING CODE 4410–09–P professional association membership selected nominee will undergo a

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thorough security background check. This meeting will be webcast live at approval on a new and/or currently Security paperwork may take the the Web address—http://www.nrc.gov. approved information collection. nominee several weeks to complete. Week of October 18, 2010—Tentative DATES: Submit comments on or before Nominees will also be required to November 15, 2010. complete a financial disclosure Wednesday, October 20, 2010 ADDRESSES: Send all comments statement to assure that there are no 9:30 a.m. Briefing on Medical Issues regarding whether this information conflicts of interest. (Public Meeting). (Contact: Michael collection is necessary for the proper Dated at Rockville, Maryland this 8th day Fuller, 301–415–0520). performance of the function of the of September, 2010. This meeting will be webcast live at agency, whether the burden estimates For the U.S. Nuclear Regulatory the Web address—http://www.nrc.gov. are accurate, and if there are ways to Commission. * * * * * minimize the estimated burden and Andrew L. Bates, The schedule for Commission enhance the quality of the collection, to Advisory Committee Management Officer. meetings is subject to change on short Jihoon Kim, Director Secondary Market [FR Doc. 2010–22827 Filed 9–13–10; 8:45 am] notice. To verify the status of meetings, & 504 Sales, Office of Financial BILLING CODE 7590–01–P call (recording)—(301) 415–1292. Assistance, Small Business Contact person for more information: Administration, 409 3rd Street, 8th Rochelle Bavol, (301) 415–1651. Floor, Washington, DC 20416. NUCLEAR REGULATORY FOR FURTHER INFORMATION CONTACT: COMMISSION * * * * * The NRC Commission Meeting Jihoon Kim, Office of Financial [NRC–2010–0002] Schedule can be found on the Internet Assistance, 202–205–7530 at: http://www.nrc.gov/about-nrc/policy- [email protected] Curtis B. Rich, Sunshine Federal Register Notice making/schedule.html Management Analyst, 202–205–7030 [email protected]. AGENCY HOLDING THE MEETINGS: Nuclear * * * * * Regulatory Commission [NRC–2010– The NRC provides reasonable SUPPLEMENTARY INFORMATION: These 0002]. accommodation to individuals with forms capture the terms and conditions of SBA’s new Secondary Market for DATES: Weeks of September 13, 20, 27, disabilities where appropriate. If you First Mortgage Loan Pool Program. SBA October 4, 11, 18, 2010. need a reasonable accommodation to participate in these public meetings, or needs this information in order to PLACE: Commissioners’ Conference need this meeting notice or the identify program participants, term of Room, 11555 Rockville Pike, Rockville, transcript or other information from the the financial transaction involving Maryland. public meetings in another format (e.g. federal government guarantees and STATUS: Public and closed. braille, large print), please notify Angela reporting on program efficiency, Week of September 13, 2010 Bolduc, Chief, Employee/Labor including the proper use of Recovery Relations and Work Life Branch, at 301– Act funds. Wednesday, September 15, 2010 492–2230, TDD: 301–415–2100, or by Title: ‘‘Secondary Market for Section 8:45 a.m. Affirmation Session (Public e-mail at [email protected]. 504 First Mortgage Loan Pool.’’ Meeting) (Tentative). Determinations on requests for Description of Respondents: a. Final Update of the Commission’s reasonable accommodation will be Secondary Market Participants. Waste Confidence Decision made on a case-by-case basis. Form Number: 2401, 2402, 2403, (Tentative). * * * * * 2404. Annual Responses: 12,490. Week of September 20, 2010—Tentative This notice is distributed electronically to subscribers. If you no Annual Burden: 33,075. There are no meetings scheduled for longer wish to receive it, or would like the week of September 20, 2010. Jacqueline White, to be added to the distribution, please Chief, Administrative Information Branch. Week of September 27, 2010—Tentative contact the Office of the Secretary, [FR Doc. 2010–22915 Filed 9–13–10; 8:45 am] Washington, DC 20555 (301–415–1969), Wednesday, September 29, 2010 BILLING CODE 8025–01–P or send an e-mail to 1 p.m. Briefing on Resolution of Generic [email protected]. Safety Issue (GSI)—191, Assessment Dated: September 9, 2010. SMALL BUSINESS ADMINISTRATION of Debris Accumulation on Pressurized Water Reactor (PWR) Rochelle C. Bavol, [Disaster Declaration #12274 and #12275] Sump Performance (Public Policy Coordinator, Office of the Secretary. Meeting). (Contact: Michael Scott, [FR Doc. 2010–22970 Filed 9–10–10; 4:15 pm] Wisconsin Disaster Number WI–00024 301–415–0565). BILLING CODE 7590–01–P AGENCY: U.S. Small Business This meeting will be webcast live at Administration. the Web address—http://www.nrc.gov. ACTION: Amendment 1. SMALL BUSINESS ADMINISTRATION Week of October 4, 2010—Tentative SUMMARY: This is an amendment of the There are no meetings scheduled for Data Collection Available for Public Presidential declaration of a major the week of October 4, 2010. Comments and Recommendations disaster for Public Assistance Only for the State of Wisconsin (FEMA–1933– Week of October 11, 2010—Tentative ACTION: Notice and request for DR), dated 08/11/2010. comments. Thursday, October 14, 2010 Incident: Severe Storms, Tornadoes, 9:30 a.m. Briefing on Alternative Risk SUMMARY: In accordance with the and Flooding. Metrics for New Light Water Paperwork Reduction Act of 1995, this Incident Period: 07/20/2010 through Reactors (Public Meeting). (Contact: notice announces the Small Business 07/24/2010. CJ Fong, 301–415–6249). Administration’s intentions to request DATES: Effective Date: 09/07/2010.

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Physical Loan Application Deadline Administrator’s disaster declaration, FINRA, the ‘‘Parties’’) filed with the Date: 10/12/2010. applications for disaster loans may be Securities and Exchange Commission Economic Injury (EIDL) Loan filed at the address listed above or other (‘‘Commission’’ or ‘‘SEC’’), pursuant to Application Deadline Date: 05/11/2011. locally announced locations. Section 17(d) of the Securities Exchange ADDRESSES: Submit completed loan The following areas have been Act of 1934 (‘‘Act’’),1 and Rule 17d–2 applications to: U.S. Small Business determined to be adversely affected by thereunder,2 an amendment to their Administration, Processing and the disaster: September 16, 1977 Agreement Between Disbursement Center, 14925 Kingsport Primary Counties: Putnam. the National Association of Securities Road, Fort Worth, TX 76155. Contiguous Counties: Dealers, Inc. (n/k/a FINRA) and the FOR FURTHER INFORMATION CONTACT: A. Tennessee: Cumberland, Dekalb, Midwest Stock Exchange Incorporated Escobar, Office of Disaster Assistance, Fentress, Jackson, Overton, Smith, (n/k/a CHX) (‘‘17d–2 Plan’’ or the ‘‘Plan’’) U.S. Small Business Administration, White. for the allocation of regulatory 409 3rd Street, SW., Suite 6050, The Interest Rates are: responsibilities. The proposed amended Washington, DC 20416. Plan was published for comment on August 12, 2010.3 The Commission SUPPLEMENTARY INFORMATION: Percent The notice received no comments on the amended of the President’s major disaster For Physical Damage: Plan. This order approves and declares declaration for Private Non-Profit Homeowners With Credit Avail- effective the amended Plan. organizations in the State of able Elsewhere ...... 5.000 WISCONSIN, dated 08/11/2010, is Homeowners Without Credit I. Introduction hereby amended to include the Available Elsewhere ...... 2.500 4 following areas as adversely affected by Businesses With Credit Avail- Section 19(g)(1) of the Act, among the disaster. able Elsewhere ...... 6.000 other things, requires every self- regulatory organization (‘‘SRO’’) Primary Counties: Calumet. Businesses Without Credit Available Elsewhere ...... 4.000 registered as either a national securities All other information in the original Non-Profit Organizations With exchange or national securities declaration remains unchanged. Credit Available Elsewhere ... 3.625 association to examine for, and enforce (Catalog of Federal Domestic Assistance Non-Profit Organizations With- compliance by, its members and persons Numbers 59002 and 59008) out Credit Available Else- associated with its members with the where ...... 3.000 Act, the rules and regulations James E. Rivera, For Economic Injury: Businesses & Small Agricultural thereunder, and the SRO’s own rules, Associate Administrator for Disaster unless the SRO is relieved of this Assistance. Cooperatives Without Credit Available Elsewhere ...... 4.000 responsibility pursuant to Section 17(d) [FR Doc. 2010–22912 Filed 9–13–10; 8:45 am] or Section 19(g)(2) of the Act.5 Without BILLING CODE 8025–01–P Non-Profit Organizations Without this relief, the statutory obligation of Credit Available Elsewhere 3.000. each individual SRO could result in a pattern of multiple examinations of SMALL BUSINESS ADMINISTRATION The number assigned to this disaster for physical damage is 12303 B and for broker-dealers that maintain [Disaster Declaration #12303 and #12304] economic injury is 123040. memberships in more than one SRO The States which received an EIDL (‘‘common members’’). Such regulatory Tennessee Disaster #TN–00042 Declaration # are Tennessee. duplication would add unnecessary AGENCY: U.S. Small Business (Catalog of Federal Domestic Assistance expenses for common members and Administration. Numbers 59002 and 59008) their SROs. 6 ACTION: Notice. Dated: September 7, 2010. Section 17(d)(1) of the Act was Karen G. Mills, intended, in part, to eliminate SUMMARY: This is a notice of an unnecessary multiple examinations and Administrator. Administrative declaration of a disaster regulatory duplication.7 With respect to for the State of Tennessee dated 09/07/ [FR Doc. 2010–22914 Filed 9–13–10; 8:45 am] a common member, Section 17(d)(1) 2010. BILLING CODE 8025–01–P authorizes the Commission, by rule or Incident: Severe Storms and Flooding. order, to relieve an SRO of the Incident Period: 08/16/2010. responsibility to receive regulatory DATES: Effective Date: 09/07/2010. SECURITIES AND EXCHANGE reports, to examine for and enforce Physical Loan Application Deadline COMMISSION compliance with applicable statutes, Date: 11/08/2010. [Release No. 34–62866; File No. 4–274] rules, and regulations, or to perform Economic Injury (EIDL) Loan other specified regulatory functions. Application Deadline Date: 06/07/2011. Program for Allocation of Regulatory To implement Section 17(d)(1), the ADDRESSES: Submit completed loan Responsibilities Pursuant to Rule 17d– Commission adopted two rules: Rule applications to: U.S. Small Business 2; Order Approving and Declaring Administration, Processing and Effective a Plan for the Allocation of 1 15 U.S.C. 78q(d). Disbursement Center, 14925 Kingsport Regulatory Responsibilities Between 2 17 CFR 240.17d–2. Road, Fort Worth, TX 76155. the Financial Industry Regulatory 3 See Securities Exchange Act Release No. 62657 Authority, Inc. and the Chicago Stock (August 5, 2010), 75 FR 49005 (August 12, 2010). FOR FURTHER INFORMATION CONTACT: A. Exchange, Inc. 4 15 U.S.C. 78s(g)(1). Escobar, Office of Disaster Assistance, 5 15 U.S.C. 78q(d) and 15 U.S.C. 78s(g)(2), U.S. Small Business Administration, September 8, 2010. respectively. 409 3rd Street, SW., Suite 6050, On July 21, 2010, the Financial 6 15 U.S.C. 78q(d)(1). Washington, DC 20416. Industry Regulatory Authority, Inc. 7 See Securities Act Amendments of 1975, Report of the Senate Committee on Banking, Housing, and SUPPLEMENTARY INFORMATION: Notice is (‘‘FINRA’’) and the Chicago Stock Urban Affairs to Accompany S. 249, S. Rep. No. hereby given that as a result of the Exchange, Inc. (‘‘CHX’’) (together with 94–75, 94th Cong., 1st Session 32 (1975).

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17d–1 and Rule 17d–2 under the Act.8 for which it was the DEA. On February to Rule 17d–2.16 In the event that a Dual Rule 17d–1 authorizes the Commission 20, 1980, the Commission noticed for Member is the subject of an to name a single SRO as the designated comment an amendment to the Plan, investigation relating to a transaction on examining authority (‘‘DEA’’) to examine which provided, in part, for the CHX, the plan acknowledges that CHX common members for compliance with handling of customer complaints, the may, in its discretion, exercise the financial responsibility review of dual members’ advertising, concurrent jurisdiction and requirements imposed by the Act, or by and the arbitration of disputes under the responsibility for such matter.17 Commission or SRO rules.9 When an Plan.12 On May 30, 1980, the Under the proposed Plan, CHX would SRO has been named as a common Commission approved the Plan, as retain full responsibility for member’s DEA, all other SROs to which amended.13 surveillance, examination, investigation, the common member belongs are and enforcement with respect to trading III. Proposed Amendment to the Plan relieved of the responsibility to examine activities or practices involving CHX’s the firm for compliance with the The proposed 17d–2 Plan is intended own marketplace; registration pursuant applicable financial responsibility rules. to reduce regulatory duplication for to its applicable rules of associated On its face, Rule 17d–1 deals only with firms that are common members 14 of persons (i.e., registration rules that are an SRO’s obligations to enforce member both CHX and FINRA. Pursuant to the not Common Rules); its duties and compliance with financial responsibility proposed 17d–2 Plan, FINRA would obligations as a DEA pursuant to Rule requirements. Rule 17d–1 does not assume certain examination and 17d–1 under the Act; and any CHX rules relieve an SRO from its obligation to enforcement responsibilities for that are not Common Rules.18 examine a common member for common members with respect to IV. Discussion compliance with its own rules and certain applicable laws, rules, and provisions of the federal securities laws regulations. The amended agreement The Commission finds that the proposed Plan is consistent with the governing matters other than financial would replace the previous Plan in its factors set forth in Section 17(d) of the responsibility, including sales practices entirety. Act 19 and Rule 17d–2(c) thereunder 20 and trading activities and practices. The text of the proposed Plan in that the proposed Plan is necessary To address regulatory duplication in delineates the proposed regulatory or appropriate in the public interest and these and other areas, the Commission responsibilities with respect to the for the protection of investors, fosters adopted Rule 17d–2 under the Act.10 Parties. Included in the proposed Plan cooperation and coordination among Rule 17d–2 permits SROs to propose is an exhibit (the ‘‘CHX Certification of SROs, and removes impediments to and joint plans for the allocation of Common Rules’’ referred to herein as the fosters the development of the national regulatory responsibilities with respect ‘‘Certification’’) that lists every CHX market system. In particular, the to their common members. Under rule, and select federal securities laws, Commission believes that the proposed paragraph (c) of Rule 17d–2, the rules, and regulations, for which FINRA Plan should reduce unnecessary Commission may declare such a plan would bear responsibility under the regulatory duplication by allocating to effective if, after providing for proposed Plan for examining and FINRA certain examination and appropriate notice and comment, it enforcing with respect to CHX members enforcement responsibilities for Dual determines that the plan is necessary or that are also members of FINRA and the Members that would otherwise be appropriate in the public interest and ‘‘ associated persons therewith ( Dual performed by both CHX and FINRA. for the protection of investors; to foster Members’’). Accordingly, the proposed Plan cooperation and coordination among the Specifically, under the proposed 17d– promotes efficiency by reducing costs to SROs; to remove impediments to, and 2 Plan, FINRA would assume Dual Members. Furthermore, because foster the development of, a national examination and enforcement CHX and FINRA will coordinate their market system and a national clearance responsibility relating to compliance by regulatory functions in accordance with and settlement system; and is in Dual Members with the rules of CHX the proposed Plan, the Plan should conformity with the factors set forth in that are substantially similar to the promote investor protection. Section 17(d) of the Act. Commission applicable rules of FINRA, as well as The Commission notes that, under the approval of a plan filed pursuant to Rule certain provisions of the federal proposed Plan, CHX and FINRA have 17d–2 relieves an SRO of those securities laws and the rules and allocated regulatory responsibility for regulatory responsibilities allocated by regulations thereunder delineated in the those CHX rules, set forth on the the plan to another SRO. Certification (‘‘Common Rules’’).15 Certification, that are substantially II. The Plan Common Rules would not include the similar to the applicable FINRA rules in application of any CHX rule or FINRA that examination for compliance with On September 26, 1978, the rule, or any rule or regulation under the such provisions and rules would not Commission approved the Plan Act, to the extent that it pertains to require FINRA to develop one or more allocating regulatory responsibilities violations of insider trading activities, new examination standards, modules, pursuant to Rule 17d–2 on a provisional because such matters are covered by a procedures, or criteria in order to basis.11 Under the Plan, FINRA was separate multiparty agreement pursuant analyze the application of the rule, or a responsible, in part, for conducting on- Dual Member’s activity, conduct, or site examinations of each dual member 12 See Securities Exchange Act Release No. 16591 output in relation to such rule. In (February 20, 1980), 45 FR 12573 (February 26, addition, under the proposed Plan, 8 17 CFR 240.17d–1 and 17 CFR 240.17d–2, 1980). respectively. 13 See Securities Exchange Act Release No. 16858 9 See Securities Exchange Act Release No. 12352 (May 30, 1980), 45 FR 37927 (June 5, 1980). 16 See Securities Exchange Act Release No. 61919 (April 20, 1976), 41 FR 18808 (May 7, 1976). 14 The proposed 17d–2 Plan refers to these (April 15, 2010), 75 FR 21051 (April 22, 2010) (File 10 See Securities Exchange Act Release No. 12935 members as ‘‘Dual Members.’’ See Paragraph 1(c) of No. 4–566) (notice of filing and order approving and (October 28, 1976), 41 FR 49091 (November 8, the proposed 17d–2 Plan. declaring effective the plan). 17 1976). 15 See paragraph 1(b) of the proposed 17d–2 Plan See paragraph 6 of the proposed 17d–2 Plan. 11 See Securities Exchange Act Release No. 15191 (defining Common Rules). See also paragraph 1(f) 18 See paragraph 2 of the proposed 17d–2 Plan. (September 26, 1978), 43 FR 46093 (October 5, of the proposed 17d–2 Plan (defining Regulatory 19 15 U.S.C. 78q(d). 1978). Responsibilities). 20 17 CFR 240.17d–2(c).

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FINRA would assume regulatory substantially similar to a FINRA rule; or The subject matter of the Open responsibility for certain provisions of leave on the Certification a CHX rule Meeting will be: the federal securities laws and the rules that is no longer substantially similar to The Commission will consider whether to and regulations thereunder that are set a FINRA rule, then such a change would propose rules that would require a public forth in the Certification. The Common constitute an amendment to the Plan, company to provide certain disclosures about Rules covered by the proposed Plan are which must be filed with the its short-term borrowings in its filings with specifically listed in the Certification, as Commission pursuant to Rule 17d–2 the Commission. The Commission will also may be amended by the Parties from under the Act.23 consider whether to publish an interpretive time to time pursuant to the terms and The Plan also permits CHX and release to provide guidance regarding the conditions specified in the Plan. FINRA to terminate the Plan, subject to Commission’s current disclosure ‘‘ According to the proposed Plan, CHX notice.24 The Commission notes, requirements in Management’s Discussion will review the Certification, at least and Analysis of Financial Condition and however, that while the Plan permits Results of Operations’’ relating to liquidity annually, or more frequently if required the Parties to terminate the Plan, the and capital resources. by changes in either the rules of CHX or Parties cannot by themselves reallocate FINRA, and, if necessary, submit to the regulatory responsibilities set forth At times, changes in Commission FINRA an updated list of Common in the Plan, since Rule 17d–2 under the priorities require alterations in the Rules to add CHX rules not included on Act requires that any allocation or re- scheduling of meeting items. For further information and to the then-current list of Common Rules allocation of regulatory responsibilities ascertain what, if any, matters have been that are substantially similar to FINRA be filed with the Commission.25 rules; delete CHX rules included in the added, deleted or postponed, please then-current list of Common Rules that IV. Conclusion contact: are no longer substantially similar to This Order gives effect to the Plan The Office of the Secretary at (202) FINRA rules; and confirm that the filed with the Commission in File No. 551–5400. remaining rules on the list of Common 4–274. The Parties shall notify all Dated: September 10, 2010. Rules continue to be CHX rules that are members affected by the Plan of their Elizabeth M. Murphy, 21 substantially similar to FINRA rules. rights and obligations under the Plan. Secretary. FINRA will then confirm in writing It is therefore ordered, pursuant to [FR Doc. 2010–22949 Filed 9–10–10; 11:15 am] whether the rules listed in any updated Section 17(d) of the Act, that the Plan BILLING CODE 8010–01–P list are Common Rules as defined in the in File No. 4–274, between FINRA and proposed Plan. Under the proposed CHX, filed pursuant to Rule 17d–2 Plan, CHX will also provide FINRA with under the Act, is approved and declared SECURITIES AND EXCHANGE a current list of Dual Members and shall effective. COMMISSION update the list no less frequently than It is therefore ordered that CHX is once each quarter.22 relieved of those responsibilities Sunshine Act; Notice of Meeting Under the proposed Plan, CHX would allocated to FINRA under the Plan in retain full responsibility for File No. 4–274. Notice is hereby given, pursuant to surveillance, examination, investigation, the provisions of the Government in the For the Commission, by the Division of and enforcement with respect to trading Sunshine Act, Public Law 94–409, that Trading and Markets, pursuant to delegated the Securities and Exchange activities or practices involving CHX’s authority.26 Commission will hold a Closed Meeting own marketplace; registration pursuant Elizabeth M. Murphy, to its applicable rules of associated on Thursday, September 16, 2010 at 3 Secretary. persons (i.e., registration rules that are p.m. not Common Rules); its duties as a DEA [FR Doc. 2010–22837 Filed 9–13–10; 8:45 am] Commissioners, Counsel to the pursuant to Rule 17d–1 under the Act; BILLING CODE 8010–01–P Commissioners, the Secretary to the and any CHX rules that are not Common Commission, and recording secretaries Rules. will attend the Closed Meeting. Certain The Commission is hereby declaring SECURITIES AND EXCHANGE staff members who have an interest in effective a plan that, among other COMMISSION the matters also may be present. The General Counsel of the things, allocates regulatory Sunshine Act Meeting responsibility to FINRA for the Commission, or his designee, has oversight and enforcement of CHX rules Notice is hereby given, pursuant to certified that, in his opinion, one or that are substantially similar to the rules the provisions of the Government in the more of the exemptions set forth in 5 of FINRA for Dual Members of CHX and Sunshine Act, Public Law 94–409, that U.S.C. 552b(c)(3), (5), (7), 9(B) and (10) FINRA. Therefore, modifications to the the Securities and Exchange and 17 CFR 200.402(a)(3), (5), (7), 9(ii) Certification need not be filed with the Commission will hold an Open Meeting and (10), permit consideration of the Commission as an amendment to the on September 17, 2010 at 10 a.m., in the scheduled matters at the Closed Plan, provided that the Parties are only Auditorium, Room L–002. Meeting. adding to, deleting from, or confirming Commissioner Paredes, as duty changes to CHX rules in the 23 The Commission also notes that the addition to officer, voted to consider the items Certification in conformance with the or deletion from the Certification of any federal listed for the Closed Meeting in a closed securities laws, rules, and regulations for which session. definition of Common Rules provided in FINRA would bear responsibility under the Plan for the Plan. However, should the Parties examining, and enforcing compliance by, Dual The subject matter of the Closed decide to add a CHX rule to the Members, also would constitute an amendment to Meeting scheduled for Thursday, Certification that is not substantially the Plan. September 16, 2010 will be: similar to a FINRA rule; delete a CHX 24 See paragraph 12 of the proposed 17d–2 Plan. Institution and settlement of injunctive 25 The Commission notes that paragraph 12 of the actions; rule from the Certification that is Plan reflects the fact that FINRA’s responsibilities under the Plan will continue in effect until the Institution and settlement of 21 See paragraph 2 of the proposed 17d–2 Plan. Commission approves any termination of the Plan. administrative proceedings; an 22 See paragraph 3 of the proposed 17d–2 Plan. 26 17 CFR 200.30–3(a)(34). opinion; and

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Other matters relating to enforcement particular security that exceeds the Members. Accordingly, NSCC is proceedings. number of shares available to NSCC amending its Rules so that municipal At times, changes in Commission through Member deliveries. To improve and corporate bonds will be ineligible priorities require alterations in the the efficiency of the clearing system in for lending through the SBP and so that scheduling of meeting items. such situations, NSCC’s has Members will be unable to lend For further information and to implemented automated stock borrow securities through the SBP that are ascertain what, if any, matters have been procedures to meet these needs for issued by the Member or any of its added, deleted or postponed, please shares of a particular CNS security. affiliates. Members will be advised of Members wishing to participate in the contact: the implementation date for these SBP notify NSCC each day of the The Office of the Secretary at (202) changes through the issuance of NSCC 551–5400. securities they have on deposit at The Depository Trust Company (‘‘DTC’’) that Important Notices. Dated: September 9, 2010. are available to be borrowed by NSCC. III. Discussion Elizabeth M. Murphy, After NSCC’s nighttime processing of Secretary. regular deliveries, NSCC borrows from The Commission finds that the [FR Doc. 2010–22900 Filed 9–10–10; 11:15 am] its Members the securities that have proposed rule change is consistent with BILLING CODE 8010–01–P been identified as available for the SBP the requirements of the Act 3 and the and that are needed to fulfill deliveries. rules and regulations thereunder The daytime and nighttime SBP are applicable to NSCC. In particular, the SECURITIES AND EXCHANGE separate processes. Members can choose Commission believes that the changes COMMISSION to participate only in the nighttime SBP, NSCC is making to the SBP to establish [Release No. 34–62849; File No. SR–NSCC– only in the daytime SBP, or in both. appropriate safeguards and enhanced 2010–07] Similarly, securities needed for efficiency to mitigate risks to NSCC unfulfilled delivery obligations during from the SBP are consistent with Self-Regulatory Organizations; the daytime processing are borrowed NSCC’s obligations under Section National Securities Clearing from Members that have made securities 17A(b)(3)(F).4 That section requires, Corporation; Order Approving available. NSCC place the borrowed among other things, that the rules of a Proposed Rule Change To Amend securities in a special CNS subaccount, Addendum C of its Rules and and the lending Member is advanced clearing agency are designed to assure Procedures To Implement Risk the full market value of the borrowed the safeguarding of securities and funds Enhancements To its Stock Borrow securities until they are returned. As which are in the custody or control of Program securities become available, borrowed the clearing agency or for which it is securities are returned through normal responsible. September 3, 2010. long allocations against the special IV. Conclusion I. Introduction subaccount. On July 1, 2010, National Securities 2. Proposed Amendment to Addendum On the basis of the foregoing, the Clearing Corporation (‘‘NSCC’’) filed C of the NSCC’s Rules Commission finds that the proposal is with the Securities and Exchange consistent with the requirements of the After reviewing the SBP, NSCC Act and in particular with the Commission (‘‘Commission’’) proposed determined that it faced increased risk requirements of Section 17A of the Act 5 rule change SR–NSCC–2010–07 when it borrows municipal or corporate and the rules and regulations pursuant to Section 19(b)(1) of the bonds and when it borrows securities Securities Exchange Act of 1934 issued by the lending Member or any of thereunder. (‘‘Act’’).1 The proposed rule change was its affiliates. First, if NSCC is unable to It is therefore ordered, pursuant to published for comment in the Federal close out in a timely manner long Section 19(b)(2) of the Act,6 that the Register on July 29, 2010.2 No comment positions in corporate or municipal proposed rule change (File No. SR– letters were received on the proposal. bonds that were created by loans of such NSCC–2010–07) be, and hereby is, This order approves the proposal. securities from a Member that becomes approved.7 insolvent, then NSCC may possess high II. Description For the Commission by the Division of concentrations of corporate or Trading and Markets, pursuant to delegated NSCC is amending its Rules to municipal bonds that it cannot deliver authority.8 implement risk enhancements whereby to the insolvent Member. Consequently, municipal and corporate bonds will be NSCC bears an increased risk of loss Florence E. Harmon, ineligible for lending through NSCC’s because it would be forced to liquidate Deputy Secretary. Stock Borrow Program (‘‘SBP’’) and those corporate or municipal bond [FR Doc. 2010–22801 Filed 9–13–10; 8:45 am] Members will be prevented from positions in thinly traded markets. BILLING CODE 8010–01–P lending through the SBP securities that Second, NSCC incurs credit exposure in were issued by that Member or any of instances where it borrows securities its affiliates. from a Member that is also the issuer of 1. SBP Background the securities or is an affiliate of the issuer. In the event that such a Member In the course of daily operations, for 3 15 U.S.C. 78q–1. becomes insolvent, then NSCC incurs various reasons, NSCC’s Continuous Net 4 15 U.S.C. 78q–1(b)(3)(F). the additional risk that the securities Settlement (‘‘CNS’’) system often 5 15 U.S.C. 78q–1. loaned through the SBP issued by the requires a number of shares for a 6 15 U.S.C. 78s(b)(2). Member or its affiliate and will likely 7 In approving the proposed rule change, the decline in value. 1 15 U.S.C. 78s(b)(1). Commission considered the proposal’s impact on 2 Securities Exchange Act Release No. 62567 (July In both situations, NSCC believes that efficiency, competition, and capital formation. 15 14, 2010), 75 FR 44828 (July 29, 2010) (SR–NSCC– the risks posed by these SBP practices U.S.C. 78c(f). 2010–07). outweigh the benefits to NSCC and its 8 17 CFR 200.30–3(a)(12).

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SECURITIES AND EXCHANGE of the most significant parts of such Market Maker (‘‘DMM’’),7 is also COMMISSION statements. scheduled to end on September 30, 2010.8 The timing of the operation of A. Self-Regulatory Organization’s [Release No. 34–62857; File No. SR– the UTP Pilot Program was designed to Statement of the Purpose of, and the NYSEAmex-2010–89] correspond to that of the NMM Pilot. In Statutory Basis for, the Proposed Rule approving the UTP Pilot Program, the Change Self-Regulatory Organizations; NYSE Commission acknowledged that the Amex LLC; Notice of Filing and 1. Purpose rules relating to DMM benefits and Immediate Effectiveness of Proposed duties in trading Nasdaq Securities on Rule Change To Extend the Pilot NYSE Amex Equities Rules 500–525, as a pilot program, govern the trading of the Exchange pursuant to the UTP Pilot Program That Allows Nasdaq Stock Program are consistent with the Act 9 Market Securities To Be Traded on the any Nasdaq-listed security on the Exchange pursuant to unlisted trading and noted the similarity to the NMM Exchange Pursuant to UTP privileges (‘‘UTP Pilot Program’’).3 The Pilot, particularly with respect to DMM obligations and benefits.10 Furthermore, September 7, 2010. Exchange hereby seeks to extend the the UTP Pilot Program rules pertaining Pursuant to Section 19(b)(1) of the operation of the UTP Pilot Program, to the assignment of securities to DMMs Securities Exchange Act of 1934 (the currently scheduled to expire on 1 2 September 30, 2010, until the earlier of are substantially similar to the rules ‘‘Act’’) and Rule 19b–4 thereunder, 11 Commission approval to make such implemented through the NMM Pilot. notice is hereby given that on August The Exchange has similarly filed to ‘‘ pilot permanent or January 31, 2011. 27, 2010, NYSE Amex LLC ( NYSE extend the operation of the NMM Pilot Amex’’ or the ‘‘Exchange’’) filed with the The UTP Pilot Program includes any security listed on Nasdaq that (i) is until the earlier of Commission approval Securities and Exchange Commission to make the NMM Pilot permanent or (the ‘‘Commission’’) the proposed rule designated as an ‘‘eligible security’’ under the Joint Self-Regulatory January 31, 2011.12 change as described in Items I and II Extension of the UTP Pilot Program in below, which Items have been prepared Organization Plan Governing the Collection, Consolidation and tandem with the NMM Pilot, both from by the Exchange. The Commission is September 30, 2010 until the earlier of publishing this notice to solicit Dissemination of Quotation and Transaction Information for Nasdaq- Commission approval to make such comments on the proposed rule change pilots permanent or January 31, 2011, from interested persons. Listed Securities Traded on Exchanges on an Unlisted Trading Privilege Basis, will provide for the uninterrupted I. Self-Regulatory Organization’s as amended (‘‘UTP Plan’’),4 and (ii) has trading of Nasdaq Securities on the Statement of the Terms of Substance of been admitted to dealings on the Exchange on a UTP basis and thus the Proposed Rule Change Exchange pursuant to a grant of unlisted continue to encourage the additional trading privileges in accordance with utilization of, and interaction with, the The Exchange proposes to amend NYSE Amex Equities market, and NYSE Amex Equities Rule 500 to extend Section 12(f) of the Securities Exchange Act of 1934, as amended (the ‘‘Act’’),5 provide market participants with the operation of the pilot program that improved price discovery, increased (collectively, ‘‘Nasdaq Securities’’).6 allows Nasdaq Stock Market (‘‘Nasdaq’’) liquidity, more competitive quotes and securities to be traded on the Exchange The Exchange notes that its New Market Model Pilot (‘‘NMM Pilot’’), greater price improvement for Nasdaq pursuant to a grant of unlisted trading Securities. privileges. The pilot is currently which, among other things, eliminated scheduled to expire on September 30, the function of specialists on the 2. Statutory Basis 2010; the Exchange proposes to extend Exchange and created a new category of The Exchange believes that the it until the earlier of Commission market participant, the Designated proposed rule change is consistent with approval to make such pilot permanent the requirements of the Act and the 3 See Securities Exchange Act Release No. 62479 or January 31, 2011. The text of the (July 9, 2010), 75 FR 41264 (July 15, 2010) (SR– rules and regulations thereunder proposed rule change is available at the NYSEAmex-2010–31) (Notice of Filing of applicable to a national securities Exchange’s principal office, the Amendment Nos. 2 and 3, and Order Granting exchange. In particular, the Exchange Commission’s Public Reference Room, Accelerated Approval to a Proposed Rule Change, believes that its proposal is consistent as Modified by Amendment Nos. 1, 2, and 3 13 the Commission’s Web site (http:// Thereto, To Adopt as a Pilot Program a New Rule with (i) Section 6(b) of the Act, in www.sec.gov), and http:// Series for the Trading of Securities Listed on the general, and furthers the objectives of www.nyse.com. Nasdaq Stock Market Pursuant to Unlisted Trading Section 6(b)(5) of the Act,14 in Privileges). particular, in that it is designed to II. Self-Regulatory Organization’s 4 See Securities Exchange Act Release No. 58863 prevent fraudulent and manipulative Statement of the Purpose of, and (October 27, 2008), 73 FR 65417 (November 3, 2008) Statutory Basis for, the Proposed Rule (Notice of filing and immediate effectiveness of acts and practices, to promote just and Amendment No. 20 to the UTP Plan). The equitable principles of trade, to remove Change Exchange’s predecessor, the American Stock In its filing with the Commission, the Exchange LLC, joined the UTP Plan in 2001. See 7 See NYSE Amex Equities Rule 103. Securities Exchange Act Release No. 55647 (April 8 See Securities Exchange Act Release No 60758 self-regulatory organization included 19, 2007), 72 FR 2091 (April 27, 2007) (S7–24–89). (October 1, 2009), 74 FR 51639 (October 7, 2009) statements concerning the purpose of, In March 2009, the Exchange changed its name to (SR–NYSEAmex-2009–65). See also Securities NYSE Amex LLC. See Securities Exchange Act and basis for, the proposed rule change Exchange Act Release No. 61030 (November 19, Release No. 59575 (March 13, 2009), 74 FR 11803 and discussed any comments it received 2009), 74 FR 62365 (November 27, 2009) (SR– (March 19, 2009) (SR–NYSEALTR–2009–24). NYSEAmex-2009–83). See also Securities Exchange on the proposed rule change. The text 5 15 U.S.C. 78l. Act Release No. 61725 (March 17, 2010), 75 FR of those statements may be examined at 6 ‘‘Nasdaq Securities’’ is included within the the places specified in Item IV below. 14223 (March 24, 2010) (SR–NYSEAmex-2010–28). definition of ‘‘security’’ as that term is used in the 9 15 U.S.C. 78. NYSE Amex Equities Rules. See NYSE Amex The Exchange has prepared summaries, 10 See supra note 1 [sic], at 41271. Equities Rule 3. In accordance with this definition, set forth in sections A, B, and C below, 11 Nasdaq Securities are admitted to dealings on the Id. Exchange on an ‘‘issued,’’ ‘‘when issued,’’ or ‘‘when 12 See SR–NYSEAmex-2010–86. 1 15 U.S.C. 78s(b)(1). distributed’’ basis. See NYSE Amex Equities Rule 13 15 U.S.C. 78f(b). 2 17 CFR 240.19b–4. 501. 14 15 U.S.C. 78f(b)(5).

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impediments to and perfect the effective pursuant to Section 19(b)(3)(A) should submit only information that mechanism of a free and open market of the Act and Rule 19b–4(f)(6)(iii) you wish to make available publicly. All and a national market system, and, in thereunder. submissions should refer to File general, to protect investors and the At any time within 60 days of the Number SR–NYSEAmex–2010–89 and public interest; (ii) Section 11A(a)(1) of filing of the proposed rule change, the should be submitted on or before the Act,15 in that it seeks to ensure the Commission summarily may October 5, 2010. temporarily suspend such rule change if economically efficient execution of For the Commission, by the Division of securities transactions and fair it appears to the Commission that such Trading and Markets, pursuant to delegated competition among brokers and dealers action is necessary or appropriate in the authority.19 and among exchange markets; and (iii) public interest, for the protection of Elizabeth M. Murphy, 16 investors, or otherwise in furtherance of Section 12(f) of the Act, which Secretary. the purposes of the Act. governs the trading of securities [FR Doc. 2010–22859 Filed 9–13–10; 8:45 am] pursuant to UTP consistent with the IV. Solicitation of Comments BILLING CODE 8010–01–P maintenance of fair and orderly markets, the protection of investors and the Interested persons are invited to public interest, and the impact of submit written data, views, and arguments concerning the foregoing, SECURITIES AND EXCHANGE extending the existing markets for such COMMISSION securities. Under the UTP Pilot Program including whether the proposed rule Nasdaq Securities trade on the Exchange change is consistent with the Act. Comments may be submitted by any of [Release No. 34–62858; File No. SR–BATS– pursuant to rules governing the trading 2010–023] of Exchange-Listed securities that the following methods: previously have been approved by the Electronic Comments Self-Regulatory Organizations; BATS Commission. NYSE Amex made certain • Use the Commission’s Internet Exchange, Inc.; Notice of Filing and minor modifications to the operation of comment form (http://www.sec.gov/ Immediate Effectiveness of Proposed these rules, and added certain new rules/sro.shtml); or Rule Change Related to Fees for Use rules, to accommodate the trading of • Send an e-mail to rule- of BATS Exchange, Inc. Nasdaq Securities on a UTP basis; the [email protected]. Please include File September 7, 2010. Commission also approved all of these Number SR–NYSEAmex–2010–89 on modifications and additions. the subject line. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 B. Self-Regulatory Organization’s Paper Comments (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 Statement on Burden on Competition • Send paper comments in triplicate notice is hereby given that on August The Exchange does not believe that to Elizabeth M. Murphy, Secretary, 30, 2010, BATS Exchange, Inc. (‘‘BATS’’ the proposed rule change will impose Securities and Exchange Commission, or ‘‘Exchange’’) filed with the Securities any burden on competition that is not 100 F Street, NE., Washington, DC and Exchange Commission necessary or appropriate in furtherance 20549–1090. (‘‘Commission’’) the proposed rule of the purposes of the Act. All submissions should refer to File change as described in Items I, II, and C. Self-Regulatory Organization’s Number SR–NYSEAmex–2010–89. This III below, which Items have been Statement on Comments on the file number should be included on the prepared by the Exchange. BATS has Proposed Rule Change Received from subject line if e-mail is used. To help the designated the proposed rule change as Members, Participants, or Others Commission process and review your one establishing or changing a member comments more efficiently, please use due, fee, or other charge imposed by the No written comments were solicited only one method. The Commission will Exchange under Section 19(b)(3)(A)(ii) or received with respect to the proposed 3 post all comments on the Commission’s of the Act and Rule 19b–4(f)(2) rule change. 4 Internet website (http://www.sec.gov/ thereunder, which renders the III. Date of Effectiveness of the rules/sro.shtml). Copies of the proposed rule change effective upon Proposed Rule Change and Timing for submission, all subsequent filing with the Commission. The Commission Action amendments, all written statements Commission is publishing this notice to with respect to the proposed rule solicit comments on the proposed rule The Exchange has filed the proposed change from interested persons. rule change pursuant to Section change that are filed with the 19(b)(3)(A)(iii) of the Act 17 and Rule Commission, and all written I. Self-Regulatory Organization’s 19b–4(f)(6) thereunder.18 Because the communications relating to the Statement of the Terms of Substance of proposed rule change does not: (i) proposed rule change between the the Proposed Rule Change Significantly affect the protection of Commission and any person, other than those that may be withheld from the The Exchange proposes to modify its investors or the public interest; (ii) 5 public in accordance with the fee schedule applicable to Members of impose any significant burden on the Exchange pursuant to BATS Rules competition; and (iii) become operative provisions of 5 U.S.C. 552, will be available for website viewing and 15.1(a) and (c). While changes to the fee prior to 30 days from the date on which schedule pursuant to this proposal will it was filed, or such shorter time as the printing in the Commission’s Public Reference Room, on official business be effective upon filing, the changes will Commission may designate, if become operative on September 1, 2010. consistent with the protection of days between the hours of 10 a.m. and investors and the public interest, the 3 p.m. Copies of the filing also will be available for inspection and copying at 19 17 CFR 200.30–3(a)(12). proposed rule change has become 1 the principal office of the Exchange. All 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 15 15 U.S.C. 78k-1(a)(1). comments received will be posted 3 15 U.S.C. 78s(b)(3)(A)(ii). 16 15 U.S.C. 78l(f). without change; the Commission does 4 17 CFR 240.19b–4(f)(2). 17 15 U.S.C. 78s(b)(3)(A)(iii). not edit personal identifying 5 A Member is any registered broker or dealer that 18 17 CFR 240.19b–4(f)(6). information from submissions. You has been admitted to membership in the Exchange.

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The text of the proposed rule change share for executions that occur at other file a rule proposal to reinstate reference is available at the Exchange’s Web site trading venues as a result of such to Market Insight on its fee schedule. at http://www.batstrading.com, at the routing. To be consistent with these (iv) Name Change of Routing Strategy principal office of the Exchange, and at proposed fees and the current fee the Commission’s Public Reference structure for CYCLE and RECYCLE The Exchange has decided to re-brand Room. routed executions, the Exchange one of its routing strategies, currently proposes to charge 0.28% of the total referred to as ‘‘DART,’’ as the ‘‘Dark II. Self-Regulatory Organization’s dollar value of the execution for any Routing Technique’’ or ‘‘DRT’’. Statement of the Purpose of, and security priced under $1.00 per share Accordingly, the Exchange proposes Statutory Basis for, the Proposed Rule that is routed away from the Exchange modification of the ‘‘DART’’ acronym Change through Parallel D or Parallel 2D. throughout the fee schedule to ‘‘DRT’’. In its filing with the Commission, the Similarly, and based on the charge of (v) Options Clearing Charges Exchange included statements $0.0033 per share for Parallel T routing, concerning the purpose of, and basis for, the Exchange proposes to charge 0.33% The Exchange currently charges $0.05 the proposed rule change and discussed of the total dollar value of the execution per contract for its standard options any comments it received on the for any security priced under $1.00 per routing service and $0.10 per contract proposed rule change. The text of these share that is routed away from the for Directed ISOs routed to away statements may be examined at the Exchange through Parallel T. markets, and, in addition, passes places specified in Item IV below. The through all destination exchange fees for Exchange has prepared summaries, set (ii) NYSE Arca Destination Specific executions at away markets. Effective forth in Sections A, B, and C below, of Orders June 1, 2010, the Exchange began the most significant aspects of such The Exchange proposes to modify its passing through to Options Members, in statements. fee schedule applicable to use of the addition to destination exchange fees, Exchange in order to amend the fees for the actual clearing fees billed to the A. Self-Regulatory Organization’s its BATS + NYSE Arca destination Exchange for the execution of orders Statement of the Purpose of, and specific routing option to continue to routed from the Exchange. The Statutory Basis for, the Proposed Rule offer a ‘‘one under’’ pricing model. The Exchange proposes to eliminate the Change Exchange has previously provided a clearing fee pass through charge, both to 1. Purpose discounted price fee for Destination simplify pricing of its routing services The Exchange proposes to modify the Specific Orders routed to certain of the and to encourage Options Members to ‘‘equities pricing’’ section of its fee largest market centers measured by utilize the Exchange’s routing services. volume (NYSE, NYSE Arca and schedule to: (i) adopt pricing for certain 2. Statutory Basis new routing strategies that the Exchange NASDAQ), which, in each instance has recently adopted; (ii) modify its pricing been $0.0001 less per share for orders The Exchange believes that the routed to such market centers by the for Destination Specific Orders executed proposed rule change is consistent with Exchange than such market centers at NYSE Arca; (iii) eliminate a currently the requirements of the Act and the currently charge for removing liquidity dormant market data product from its rules and regulations thereunder that (referred to by the Exchange as ‘‘One fee schedule; and (iv) change the name are applicable to a national securities Under’’ pricing). Based on changes in of one of its routing strategies. In exchange, and, in particular, with the pricing at NYSE Arca, BATS is 8 addition, the Exchange proposes to requirements of Section 6 of the Act. proposing a change to its price for BATS modify fees applicable to options Specifically, the Exchange believes that + NYSE Arca Destination Specific trading by eliminating certain clearing the proposed rule change is consistent Orders to align its fees so they are 9 fees that it currently passes on to its with Section 6(b)(4) of the Act, in that $0.0001 less per share for orders routed Members. it provides for the equitable allocation to NYSE Arca. Specifically, the of reasonable dues, fees and other (i) Adoption of Fees for New Parallel Exchange proposes to increase the fee charges among members and other Routing Strategies charged for BATS + NYSE Arca persons using any facility or system The Exchange recently adopted rules Destination Specific Orders executed at which the Exchange operates or permitting it to offer certain new routing NYSE Arca in Tape A and C securities controls. The Exchange notes that it strategies, and plans on offering such from $0.0028 to $0.0029 per share. operates in a highly competitive market routing strategies in the near future.6 (iii) Deletion of Data Product in which market participants can readily direct order flow to competing Accordingly, the Exchange proposes to In order to avoid confusion, the adopt fees applicable to such routing venues if they deem fee levels at a Exchange proposes to delete a reference particular venue to be excessive. The strategies. As proposed, the Exchange on its fee schedule to a specific data will offer both Parallel D and Parallel 2D Exchange believes that its fees and product that it is not currently offering. credits are competitive with those routing at the same rate as it offers its Earlier this year, the Exchange proposed CYCLE and RECYCLE routing charged by other venues. Finally, the 7 and received approval to offer certain Exchange believes that the proposed strategies. Specifically, the Exchange market data products for a fee for the proposes to charge $0.0028 per share for rates are equitable in that they apply first time. Market Insight was one such uniformly to all Members. executions that occur at other trading product proposed and approved to be venues as a result of either Parallel D or offered by the Exchange. However, the B. Self-Regulatory Organization’s Parallel 2D routing. The Exchange Exchange has decided not to offer this Statement on Burden on Competition proposes to offer its Parallel T routing product at this time, and thus, proposes strategy with a charge of $0.0033 per The Exchange does not believe that deletion of reference to the product from the proposed rule change imposes any its fee schedule to avoid confusion. If 6 See Securities Exchange Act Release No. 62404 burden on competition. (June 30, 2010), 75 FR 39303 (July 8, 2010) (SR– the Exchange does decide to offer BATS–2010–017). Market Insight as approved, it will 8 15 U.S.C. 78f. 7 See Rule 11.13(a)(3). provide notice to its Members and will 9 15 U.S.C. 78f(b)(4).

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C. Self-Regulatory Organization’s change that are filed with the Federal Register on August 4, 2010.3 Statement on Comments on the Commission, and all written The Commission received no comments Proposed Rule Change Received From communications relating to the on the proposal. This order approves the Members, Participants or Others proposed rule change between the proposed rule change. Commission and any person, other than No written comments were solicited II. Description of the Proposal or received. those that may be withheld from the public in accordance with the The Exchange proposes to list and III. Date of Effectiveness of the provisions of 5 U.S.C. 552, will be trade the Shares pursuant to NYSE Arca Proposed Rule Change and Timing for available for Web site viewing and Equities Rule 8.600, which governs the Commission Action printing in the Commission’s Public listing and trading of Managed Fund The foregoing proposed rule change Reference Room, 100 F Street, NE., Shares. The Shares will be offered by 4 has been designated as a fee change Washington, DC 20549, on official the Trust. Pacific Investment pursuant to Section 19(b)(3)(A)(ii) of the business days between the hours of 10 Management Company LLC (‘‘PIMCO’’) Act 10 and Rule 19b–4(f)(2) a.m. and 3 p.m. Copies of such filing is the investment adviser (‘‘Adviser’’) for 5 thereunder,11 because it establishes or will also be available for inspection and the Fund. State Street Bank & Trust Co. changes a due, fee or other charge copying at the principal office of the is the custodian and transfer agent for imposed on members by the Exchange. Exchange. All comments received will the Fund. The Trust’s Distributor is Accordingly, the proposal is effective be posted without change; the Allianz Global Investors Distributors upon filing with the Commission. Commission does not edit personal LLC (the ‘‘Distributor’’), an indirect At any time within 60 days of the identifying information from subsidiary of Allianz Global Investors of filing of the proposed rule change, the submissions. You should submit only America L.P. (‘‘AGI’’), PIMCO’s parent 6 Commission summarily may information that you wish to make company. The Distributor is a 7 temporarily suspend such rule change if available publicly. All submissions registered broker-dealer. The Fund seeks to achieve its it appears to the Commission that such should refer to File No. SR–BATS– investment objective by investing under action is necessary or appropriate in the 2010–023 and should be submitted on public interest, for the protection of or before October 5, 2010. 3 See Securities Exchange Act Release No. 62585 investors, or otherwise in furtherance of For the Commission, by the Division of (July 28, 2010), 75 FR 47045 (‘‘Notice’’). the purposes of the Act. Trading and Markets, pursuant to delegated 4 The Trust is a Delaware statutory trust that is authority.12 registered under the Investment Company Act of IV. Solicitation of Comments 1940 (15 U.S.C. 80a) (‘‘1940 Act’’). See Registration Elizabeth M. Murphy, Interested persons are invited to Statement on Amendment No. 15 to Form N–1A for submit written data, views and Secretary. the Trust filed with the Securities and Exchange [FR Doc. 2010–22836 Filed 9–13–10; 8:45 am] Commission on March 10, 2010 (File Nos. 333– arguments concerning the foregoing, 155395 and 811–22250) (the ‘‘Registration including whether the proposed rule BILLING CODE 8010–01–P Statement’’). change is consistent with the Act. 5 The Exchange represents that the Adviser, as the Comments may be submitted by any of investment adviser of the Fund, and its related personnel, are subject to Investment Advisers Act the following methods: SECURITIES AND EXCHANGE COMMISSION Rule 204A–1. Electronic Comments 6 The Fund has received an order granting certain exemptive relief to the Trust under the Investment [Release No. 34–62856; File No. SR– • Use the Commission’s Internet Company Act of 1940 (15 U.S.C. 80a–1) (‘‘1940 NYSEArca–2010–68] comment form (http://www.sec.gov/ Act’’). In compliance with Commentary .04 to NYSE Arca Equities Rule 8.600, which applies to Managed rules/sro.shtml); or • Self-Regulatory Organizations; NYSE Fund Shares, the Trust’s application for exemptive Send an e-mail to rule- Arca, Inc.; Order Granting Approval of relief under the 1940 Act states that the Fund will [email protected]. Please include File a Proposed Rule Change Relating to comply with the federal securities laws in accepting Number SR–BATS–2010–023 on the securities for deposits and satisfying redemptions Listing and Trading of Shares of the with redemption securities, including that the subject line. PIMCO Build America Bond Strategy securities accepted for deposits and the securities Fund used to satisfy redemption requests are sold in Paper Comments transactions that would be exempt from registration • Send paper comments in triplicate September 7, 2010. under the Securities Act of 1933 (15 U.S.C. 77a). to Elizabeth M. Murphy, Secretary, See email from Tim Malinowski, Senior Director, I. Introduction Global Index and Exchange Traded Funds, Securities and Exchange Commission, Exchange, to Ronesha Butler and Kristie Diemer, 100 F Street, NE., Washington, DC On July 14, 2010, NYSE Arca, Inc. Special Counsels, Division, Commission, dated 20549–1090. (the ‘‘Exchange’’ or ‘‘NYSE Arca’’) filed September 2, 2010, clarifying applicability of All submissions should refer to File with the Securities and Exchange Commentary .04. 7 Commentary .06 to Rule 8.600 provides that, if Number SR–BATS–2010–023. This file Commission (‘‘Commission’’), pursuant the investment adviser to the Investment Company number should be included on the to Section 19(b)(1) of the Securities issuing Managed Fund Shares is affiliated with a subject line if e-mail is used. To help the Exchange Act of 1934 (‘‘Act’’) 1 and Rule broker-dealer, such investment adviser shall erect a Commission process and review your 19b–4 thereunder,2 a proposed rule ‘‘fire wall’’ between the investment adviser and the broker-dealer with respect to access to information comments more efficiently, please use change to list and trade shares (‘‘Shares’’) concerning the composition and/or changes to such only one method. The Commission will of the PIMCO Build America Bond Investment Company portfolio. In addition, post all comments on the Commission’s Strategy Fund (the ‘‘Fund’’) of the Commentary .06 further requires that personnel Internet Web site (http://www.sec.gov/ PIMCO ETF Trust (the ‘‘Trust’’) under who make decisions on the open-end fund’s portfolio composition must be subject to procedures rules/sro/shtml). Copies of the NYSE Arca Equities Rule 8.600 designed to prevent the use and dissemination of submission, all subsequent (Managed Fund Shares). The proposed material nonpublic information regarding the open- amendments, all written statements rule change was published in the end fund’s portfolio. The Adviser is affiliated with with respect to the proposed rule a broker-dealer, Allianz Global Investors Distributors LLC, and has implemented a fire wall 12 17 CFR 200.30–3(a)(12). with respect to such broker-dealer regarding access 10 15 U.S.C. 78s(b)(3)(A)(ii). 1 15 U.S.C. 78s(b)(1). to information concerning the composition and/or 11 17 CFR 240.19b–4(f)(2). 2 17 CFR 240.19b–4. changes to a portfolio.

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normal circumstances at least 80% of its subsidy continues for the life of the consistent with Section 6(b)(5) of the assets in taxable municipal debt bonds.9 Act,15 which requires, among other securities publicly issued under the The Exchange states that the Shares things, that the Exchange’s rules be Build America Bond program. The will be subject to the initial and designed to promote just and equitable Build America Bond program was continued listing criteria under NYSE principles of trade, to remove created as part of the American Arca Equities Rule 8.600 applicable to impediments to and perfect the Recovery and Reinvestment Act of 2009 Managed Fund Shares 10 and that the mechanism of a free and open market (the ‘‘2009 Act’’) (‘‘Build America Shares will comply with Rule 10A–3 and a national market system, and, in Bonds’’). The Fund invests in U.S. under the Act,11 as provided by NYSE general, to protect investors and the dollar-denominated Fixed Income Arca Equities Rule 5.3. public interest. The Commission notes Instruments that are primarily Additional information regarding the that the Shares must comply with the investment grade, but may invest up to Trust, the Fund, the Shares, the Fund’s requirements of NYSE Arca Equities 20% of its total assets in high yield investment objectives, strategies, Rule 8.600 to be listed and traded on the securities (‘‘junk bonds’’) rated B or policies, and restrictions, risks, fees and Exchange. higher by Moody’s Investors Service, expenses, creation and redemption The Commission finds that the Inc., or equivalently rated by Standard procedures, portfolio holdings and proposal to list and trade the Shares on & Poor’s Ratings Services or Fitch, Inc., policies, distributions and taxes, the Exchange is consistent with Section or, if unrated, determined by PIMCO to availability of information, trading rules 11A(a)(1)(C)(iii) of the Act,16 which sets be of comparable quality.8 and halts, and surveillance procedures, forth Congress’ finding that it is in the The average portfolio duration of the among other things, can be found in the public interest and appropriate for the Fund normally varies within two years Registration Statement and in the protection of investors and the (plus or minus) of the duration of The Notice, as applicable.12 maintenance of fair and orderly markets Barclays Capital Build America Bond to assure the availability to brokers, III. Discussion and Commission Index, which as of June 25, 2010, was dealers, and investors of information Findings approximately 12 years. with respect to quotations for and Municipal bonds generally are issued The Commission has carefully transactions in securities. Quotation and by or on behalf of states and local reviewed the proposed rule change and last-sale information for the Shares will governments and their agencies, finds that it is consistent with the be available via the Consolidated Tape authorities and other instrumentalities. requirements of Section 6 of the Act 13 Association (‘‘CTA’’) high-speed line, Unlike most municipal bonds, interest and the rules and regulations and the Exchange will disseminate the received on Build America Bonds is thereunder applicable to a national Portfolio Indicative Value (‘‘PIV’’) at subject to federal and state income tax. securities exchange.14 In particular, the least every 15 seconds during the Core Pursuant to the 2009 Act, issuers of Commission finds that the proposal is Trading Session on the Exchange. In ‘‘direct pay’’ Build America Bonds (i.e., addition, the Fund will make available taxable municipal bonds issued to 9 Issuance of Build America Bonds will cease on on a website on each business day the provide funds for qualified capital December 31, 2010 unless the relevant provisions identities and quantities of the portfolio of the 2009 Act are extended. In the event that the ‘‘ expenditures) are entitled to receive of securities and other assets ( Disclosed Build America Bond program is not extended, the Portfolio’’) that will form the basis for payments from the U.S. Treasury over Build America Bonds outstanding at such time will the life of the bond equal to 35% (or continue to be eligible for the federal interest rate the calculation of the NAV, which will be determined as of the close of the 45% in the case of Recovery Zone subsidy, which continues for the life of the Build America Bonds; however, no bonds issued regular trading session on the Exchange Economic Development Bonds) of the following expiration of the Build America Bond (ordinarily 4 p.m. Eastern Time) on each interest paid. The federal interest program will be eligible for the federal tax subsidy. If the Build America Bond program is not extended, business day. The Fund’s website will 8 According to the Registration Statement, the the Fund will evaluate the Fund’s investment also include additional quantitative Fund may invest in ‘‘Fixed Income Instruments,’’ strategy and make appropriate changes that it information updated on a daily basis consistent with the Fund’s objective. Fixed Income believes are in the best interests of the Fund, relating to trading volume, prices, and Instruments, as used generally in the Registration including changing the Fund’s investment strategy to invest in other taxable municipal securities. NAV. Information regarding the market Statement, include: price and volume of the Shares will be • Securities issued or guaranteed by the U.S. The Exchange has represented that in the event Government, its agencies or government-sponsored the Build America Bond program is not extended continually available on a real-time enterprises (‘‘U.S. Government Securities’’); and the Fund determines to change its investment basis throughout the day via electronic strategy, the Exchange will file a proposed rule • Corporate debt securities of U.S. and non-U.S. services, and the previous day’s closing change pursuant to Rule 19b–4 under the Act to issuers, including corporate commercial paper; price and trading volume information • permit continued listing of the Fund, and the Fund Mortgage-backed and other asset-backed has represented to the Exchange that it will not for the Shares will be published daily in securities; change its investment strategy until such proposed • the financial sections of newspapers. Inflation-indexed bonds issued both by rule change is approved by the Commission or The Commission further believes that governments and corporations; becomes effective under Section 19(b) of the Act. • the proposal is reasonably designed to Trust preferred securities; 10 The Exchange states that a minimum of 100,000 • Delayed funding loans and revolving credit Shares will be outstanding at the commencement of promote fair disclosure of information facilities; trading on the Exchange, and the Exchange will that may be necessary to price the • Bank certificates of deposit, fixed time deposits obtain a representation from the issuer of the Shares Shares appropriately and to prevent and bankers’ acceptances; that the net asset value (‘‘NAV’’) per Share will be trading when a reasonable degree of • Repurchase agreements on Fixed Income calculated daily and that the NAV and the Instruments and reverse repurchase agreements on Disclosed Portfolio will be made available to all transparency cannot be assured. The Fixed Income Instruments; market participants at the same time. See Notice, Commission notes that the Exchange • Debt securities issued by states or local supra note 3. will obtain a representation from the governments and their agencies, authorities and 11 17 CFR 240.10A–3. issuer that the NAV per Share will be other government-sponsored enterprises; 12 See supra notes 3 and 4. calculated daily and that the NAV and • 13 Obligations of non-U.S. governments or their 15 U.S.C. 78f. the Disclosed Portfolio will be made subdivisions, agencies and government-sponsored 14 In approving this proposed rule change the enterprises; and Commission has considered the proposed rule’s • Obligations of international agencies or impact on efficiency, competition, and capital 15 17 U.S.C. 78f(b)(5). supranational entities. formation. See 15 U.S.C. 78c(f). 16 15 U.S.C. 78k–1(a)(1)(C)(iii).

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available to all market participants at redemptions of Shares in Creation Units rule change SR–FINRA–2010–030 the same time.17 Additionally, if it and that Shares are not individually pursuant to Section 19(b)(1) of the becomes aware that the NAV or the redeemable; (b) NYSE Arca Equities Securities Exchange Act of 1934 Disclosed Portfolio is not disseminated Rule 9.2(a), which imposes a duty of (‘‘Act’’).1 Notice of the proposal was daily to all market participants at the due diligence on its ETP Holders to published in the Federal Register on same time, the Exchange will halt learn the essential facts relating to every July 12, 2010.2 The Commission trading in the Shares until such customer prior to trading the Shares; (c) received no comment letters. For the information is available to all market the risks involved in trading the Shares reasons discussed below, the participants.18 Further, if the PIV is not during the Opening and Late Trading Commission is granting approval of the being disseminated as required, the Sessions when an updated PIV will not proposed rule change. Exchange may halt trading during the be calculated or publicly disseminated; II. Description day in which the disruption occurs; if (d) how information regarding the PIV is the interruption persists past the trading disseminated; (e) the requirement that As part of the process of developing day in which it occurred, the Exchange ETP Holders deliver a prospectus to a new consolidated rulebook will halt trading no later than the investors purchasing newly issued (‘‘Consolidated FINRA Rulebook’’), beginning of the trading day following Shares prior to or concurrently with the FINRA will adopt the NASD Rule 11000 the interruption.19 The Exchange confirmation of a transaction; and (f) Series (Uniform Practice Code [‘‘UPC’’]) represents that the Adviser is affiliated trading information. into the Consolidated FINRA Rulebook, with a broker-dealer, Allianz Global (4) The Fund will be in compliance subject to certain amendments Investors Distributors LLC, and has with Rule 10A–3 under the Act. described below.3 The UPC was implemented a ‘‘fire wall’’ between it (5) The Fund will not invest in non- originally adopted on January 20, 1941, and its broker-dealer affiliate with U.S. equity securities. and became effective on August 1, 1941. respect to access to information This approval order is based on the The UPC prescribes the manner in concerning the composition and/or Exchange’s representations. which over-the-counter securities changes to the Fund’s portfolio. Further, For the foregoing reasons, the transactions other than those cleared the Commission notes that the Commission finds that the proposed through a registered clearing agency are Reporting Authority that provides the rule change is consistent with the Act compared, cleared, and settled between Disclosed Portfolio must implement and and the rules and regulations member firms. maintain, or be subject to, procedures thereunder applicable to a national As a general matter, the UPC does not designed to prevent the use and securities exchange. apply to: dissemination of material non-public a. Transactions in securities between information regarding the actual IV. Conclusion members that are compared, cleared, or components of the portfolio.20 It is therefore ordered, pursuant to settled through the facilities of a The Exchange has represented that Section 19(b)(2) of the Act,21 that the registered clearing agency; the Shares are equity securities subject proposed rule change (SR–NYSEArca– b. Transactions in securities exempted to the Exchange’s rules governing the 2010–68), be, and it hereby is, approved. under Section 3(a)(12) of the Act or in trading of equity securities. In support municipal securities as defined in of this proposal, the Exchange has made For the Commission, by the Division of Section 3(a)(29) of the Act; representations, including: Trading and Markets, pursuant to delegated c. Transactions in redeemable authority.22 (1) The Shares will be subject to the securities issued by companies initial and continued listing criteria Elizabeth M. Murphy, registered under the Investment under NYSE Arca Equities Rule Secretary. Company Act of 1940; or 8.600(d). [FR Doc. 2010–22835 Filed 9–13–10; 8:45 am] d. Transactions in Direct Participation (2) The Exchange’s surveillance BILLING CODE 8010–01–P Program securities. procedures are adequate to properly The UPC is designed to make monitor Exchange trading of the Shares uniform, where practicable, custom, in all trading sessions and to deter and SECURITIES AND EXCHANGE practice, usage, and trading technique in detect violations of Exchange rules and COMMISSION the investment banking and securities applicable federal securities laws. business, particularly with respect to (3) Prior to the commencement of [Release No. 34–62842; File No. SR– operational and settlement issues. This trading, the Exchange will inform its FINRA–2010–030] can include such matters as trade terms, ETP Holders in an Information Bulletin Self-Regulatory Organizations; deliveries, payments, dividends, rights, of the special characteristics and risks Financial Industry Regulatory interest, stamp taxes, claims, associated with trading the Shares. Authority; Order Granting Approval of Specifically, the Information Bulletin 1 15 U.S.C. 78s(b)(1). a Proposed Rule Change To Adopt will discuss the following: (a) The 2 Securities Exchange Act Release No. 62454 (July FINRA Rule 11000 Series (Uniform procedures for purchases and 6, 2010), 75 FR 39715 (July 12, 2010). Practice Code) in the Consolidated 3 The current FINRA rulebook consists of (1) FINRA Rules, (2) NASD Rules, and (3) rules 17 FINRA Rulebook See NYSE Arca Equities Rule 8.600(d)(1)(B). incorporated from NYSE (‘‘Incorporated NYSE 18 See NYSE Arca Equities Rule 8.600(d)(2)(D). September 3, 2010. Rules’’) (together, the NASD Rules and Incorporated 19 Id. Trading in the Shares may also be halted NYSE Rules are referred to as the ‘‘Transitional because of market conditions or for reasons that, in I. Introduction Rulebook’’). While the NASD Rules generally apply the view of the Exchange, make trading in the to all FINRA members, the Incorporated NYSE Shares inadvisable. These may include: (1) The On June 14, 2010, Financial Industry Rules apply only to those members of FINRA that extent to which trading is not occurring in the Regulatory Authority, Inc. (‘‘FINRA’’) are also members of the NYSE (‘‘Dual Members’’). securities comprising the Disclosed Portfolio and/ filed with the Securities and Exchange The FINRA Rules apply to all FINRA members or the financial instruments of the Fund; or (2) Commission (‘‘Commission’’) proposed unless such rules have a more limited application whether other unusual conditions or circumstances by their terms. For more information about the detrimental to the maintenance of a fair and orderly rulebook consolidation process, see FINRA’s market are present. 21 15 U.S.C. 78s(b)(2). Information Notice, March 12, 2008 (Rulebook 20 See NYSE Arca Equities Rule 8.600(d)(2)(B)(ii). 22 17 CFR 200.30–3(a)(12). Consolidation Process).

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assignments, powers of substitution, shall be considered conduct more substantive provisions to proposed due-bills, transfer fees, and marking to inconsistent with just and equitable FINRA Rule 11810, which are currently the market. The UPC, among other principles of trade. As approved, the contained in NYSE Rule 282 either with things, was created so that the new FINRA Rule 11111 will merge the or without modifications, as specified: transaction of day-to-day business by two provisions and provide that a a. Include in paragraph (a) a statement members may be simplified and refusal by a member to take action clarifying that the rule does not apply facilitated. necessary to effectuate a final decision to, among other things, securities of a FINRA officer or the UPC contracts that are subject to the 1. UPC Rules Generally Committee under the UPC Code (FINRA requirements of a national securities FINRA will transfer a significant Rule 11000 Series) or other FINRA rules exchange or a registered clearing portion of the NASD Rule 11000 Series that permit review of FINRA decisions agency. into the Consolidated FINRA Rulebook by the UPC Committee will be b. Amend certain time frames for with the minor changes detailed below.4 considered conduct inconsistent with action specified in the proposed rule: Specifically, FINRA will update certain just and equitable principles of trade. i. Clarify the time frames within terminology in the UPC. For example, The provisions of former NASD IM– which members must take action to NASD Rule 11120 defines the term 11890–2, which applied only to rulings effect the ‘‘buy-in’’ of securities as ‘‘written notice’’ as used in the UPC to under NASD Rule 11890, will be required therein. Specifically, the NASD include a notice delivered by hand, adopted as proposed new FINRA Rule rule requires that a member act within letter, teletype, telegraph, TWX, 11112 (Review by Panels of the UPC the specified local time at the member’s facsimile transmission, or other Committee) and will be generally location whereas the NYSE rule requires comparable media. FINRA will delete applicable to all rulings by the UPC action to be taken based on Eastern the references to teletype, telegraph, and Committee. The new FINRA Rule 11112 Time (ET). To promote operational TWX and will include notice delivered will provide that a decision of the UPC consistency among members, the by electronic mail. In addition, FINRA Committee may be rendered by a panel proposal would amend the required will update cross-references throughout of the Committee, which shall consist of time frame for action to be ET. the rules and will make other minor three or more members of the UPC ii. Amend the current time frames changes primarily to reflect the new Committee, provided no more than 50 specified by the NASD and NYSE rules conventions of the Consolidated FINRA percent of the members of any panel are for the acknowledgement of a ‘‘buy-in’’ Rulebook. directly engaged in market making notice and the notification of an activity or employed by a firm whose execution of the buy-in from 5 p.m. to 2. Proposed FINRA Rules 11111 6 p.m. ET. FINRA understands that the (Refusal to Abide by Rulings of the revenues from market making activity exceed ten percent of its total revenues. 5 p.m. time may be operationally Committee) and 11112 (Review by difficult for members to achieve in some Panels of the UPC Committee) 3. Proposed FINRA Rules 11810 cases and the 6 p.m. ET time frame FINRA will adopt two new provisions (Buying-In) and 11810.03 (Sample Buy- would be more operationally feasible. that are largely based on former NASD In Forms) iii. Add Supplementary Material .01 IM–11890–1 (Refusal to Abide by As approved by this filing, the current (Early Closure of Markets) to clarify that Rulings) and NASD IM–11890–2 NASD Rule 11810 (Buying-In) will be in the event of an announced early (Review by Panels of the UPC adopted as FINRA Rule 11810 (Buy-In closure of the market upon which the Committee).5 The provisions of former Procedures and Requirements) in the security subject to the ‘‘buy-in’’ notice is NASD IM–11890–1 will be incorporated Consolidated FINRA Rulebook with traded, members may take the action into and merged with current NASD certain clarifications and changes. required by the rule not earlier than one IM–11110 (Refusal to Abide by Rulings Incorporated NYSE Rules 282 (Buy-in hour prior to the announced early of the Committee) and adopted as Procedures) and related Supplementary closure of such market. proposed new FINRA Rule 11111 as the Material paragraphs .10–.80 be deleted. c. Add new paragraph (b)(4) to specify two provisions are largely identical. The changes are intended to harmonize that (1) the buyer must maintain as part Former NASD IM–11890–1 provided the differences between the NYSE rule of its records, confirmation of receipt of that a refusal by a member to take action and the NASD rule and to update the notice by the seller and (2) if the necessary to effectuate a final decision certain procedures and time frames. seller does not accept the notice of ‘‘buy- of a FINRA officer or the UPC FINRA will also adopt NASD IM–11810, in,’’ it must reject it by response to the Committee under NASD Rule 11890 which contains the sample buy-in buyer no later than 6 p.m. ET on the (Clearly Erroneous Transactions) would forms, into the Consolidated FINRA same date that it receives such notice, be considered conduct inconsistent with Rulebook as accompanying and in the absence of doing so, the seller just and equitable principles of trade. Supplementary Material .03 to FINRA will have been deemed by the buyer to Current NASD IM–11110 provides that Rule 11810 with minor changes to have accepted such notice. The a refusal by a member to abide by an replace references to NASD with provision would clarify that the seller, official ruling of the UPC Committee, FINRA. in such case, would have the right to acting within its appropriate sphere, As approved, FINRA Rule 11810 will request proof of the fail obligation from continue to set forth the required steps the buyer, which the buyer must deliver 4 NASD Rules 11890 (Clearly Erroneous that members must follow to effect the to the seller prior to the effective date Transactions), IM–11890–1 (Refusal to Abide by ‘‘buy-in’’ of securities including the of the ‘‘buy-in.’’ However, in no event Rulings), and IM–11890–2 (Review by Panels of the procedures to be followed in issuing a would a buyer be entitled to a ‘‘buy-in’’ UPC Committee) were adopted, with significant changes, into the Consolidated FINRA Rulebook as ‘‘buy-in’’ notice, the contents of such that exceeds the liability of a seller the FINRA Rule 11890 Series (Clearly Erroneous notice, the expectations of the receiving under an unsettled securities contract Transactions) pursuant to a separate rule filing and party to respond to such notice, and the because of the failure of the seller to are not being addressed as part of this rule filing. time frames in which a ‘‘buy-in’’ may be reject a ‘‘buy-in’’ notice as provided in Securities Exchange Act Release No. 61080 (Dec. 1, 2009), 74 FR 64117 (Dec. 7, 2009) (SR–FINRA– issued, retransmitted, and effected. the rule, and a buyer may not execute 2009–068). FINRA will also make certain minor a ‘‘buy-in’’ notice to such extent the 5 Id. clarifications and add the following buyer fails to deliver the proof of fail

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obligation in accordance with the represented that it would make such where the buyer maintains his office of requirements of the rule. Requirements delivery shall be liable for any resulting the quantity sold and the price received. (1) and (2) described above are damages. FINRA will conform the time frames in contained in the current NYSE rule in iv. Add language contained in the this new rule to the time frames in the a similar form except FINRA will NYSE rule to clarify the operation of the new FINRA Rule 11810 (Buy-In change the time to 6 p.m. ET. FINRA is rule when a retransmitted buy-in notice Procedures and Requirements). also adding new provisions regarding is sent to the defaulting party but is not Specifically, this new rule will replace ‘‘passive acceptance’’ of the ‘‘buy-in’’ by received by such party prior to the the requirement to provide notice ‘‘no the seller as described above, subject to delivery of shares or the execution of later than the close of business local certain safeguards for the benefit of the the ‘‘buy-in.’’ In such case, the sender of time, where the buyer maintains his seller such as requiring the buyer to the buy-in notice may unless otherwise office’’ with the requirement that such provide the proof of fail obligation and agreed promptly reestablish by a new notice must be provided no later than ‘‘6 ‘‘buying-in’’ the seller only for the sale the contract subject to the notice of p.m. ET.’’ FINRA believes this change securities contract amount in ‘‘buy-in.’’ provides clarity and uniformity to the accordance with the proposed rule. g. Amend paragraph (h) as follows: industry. In addition, the rule will d. Add new paragraph (b)(5) to i. Amend the time frame, as discussed amend certain references in the specify that the receiving party shall above, for notice to be made to the party proposed rule from ‘‘should’’ to ‘‘shall.’’ immediately retransmit a notice of ‘‘buy- for whose account the securities were Specifically, in paragraph (b), in’’ to other parties from which the bought to 6 p.m. ET on the date of notification by the party executing a securities may be due in the form of a execution of the ‘‘buy-in.’’ ‘‘sell-out’’ shall be in written or retransmitted ‘‘buy-in’’ notice. ii. Add new language, not contained electronic form, and a formal Consistent with new paragraph (b)(4) in either legacy rule, to clarify that the confirmation of such sale shall be described above, the provision would confirmation of the executed ‘‘buy-in’’ forwarded as promptly as possible after clarify that each party receiving a provided for by the rule shall be execution of the ‘‘sell-out.’’ retransmitted ‘‘buy-in’’ notice will be forwarded to the party entitled to the required to maintain confirmation of confirmation by no later than 9:30 a.m. 5. Proposed FINRA Rule 11860 (COD receipt of the notice as part of its books ET on the following business day after Orders) and records and either reject a the execution of the ‘‘buy-in.’’ FINRA will adopt NASD Rule 11860 retransmitted ‘‘buy-in’’ notice that it has iii. Add a provision contained in the (Acceptance and Settlement of COD received by 6 p.m. ET on the date such NYSE rule that requires that a statement Orders) as FINRA Rule 11860 (COD notice is received or be deemed to have of any resulting money differences from Orders) into the Consolidated FINRA accepted the notice (‘‘passive the execution of the ‘‘buy-in’’ be Rulebook subject to minor changes and acceptance’’). The safeguards described provided immediately and that such to delete NASD Rule 3370 (Purchases) above in proposed paragraph (b)(4) money differences shall be paid by no and Incorporated NYSE Rule 387 (COD would also apply to sellers receiving a later than 3 p.m. ET on the business day Orders) and its Supplementary Material retransmitted notice. after the settlement date of the executed paragraphs .10–.60, NYSE Rule 387 e. Add new paragraph (b)(6), which is ‘‘buy-in.’’ Interpretations /01–/18, Rule 430 contained in the NYSE rule, to clarify h. Amend paragraph (i) to clarify, as (Partial Delivery of Securities to that when a notice of ‘‘buy-in’’ or a provided in the NYSE rule, that Customers on C.O.D. Purchases), and retransmitted notice thereof is given for notification of all close-outs as provided NYSE Rule 430 Interpretation /01. less than the full amount of securities by the paragraph shall be sent NASD Rule 11860 and NYSE Rule 387 due, it shall not be for less than one immediately to the member being provide generally that no member can trading unit. closed-out pursuant to the confirmation accept an order from a customer f. Amend paragraph (d) as follows: provisions of the Rule 11200 Series at pursuant to an arrangement whereby i. Retitle proposed paragraph (d) from least thirty minutes before such ‘‘close- payment for the securities purchased or the current rule title ‘‘Seller’s Failure to out.’’ delivery of the securities sold is to be Deliver After Receipt of Notice’’ to i. Add Supplementary Material .02 to made to or by an agent of the customer ‘‘Procedures for Closing of Contracts’’ to clarify, as provided in the NYSE rule, unless certain specified procedures are better align the title with the content of that where securities have been followed. NASD Rule 3370 and NYSE that paragraph. delivered by the seller after the ‘‘buy-in’’ Rule 430 both generally provide that no ii. Amend the time frames, as order has been placed but not executed, member or associated person may discussed generally above, to generally such securities may be returned to the accept a customer’s purchase order for require the party receiving the ‘‘buy-in’’ seller if the ‘‘buy-in’’ was executed in securities unless it has first ascertained notice to deliver the securities to the accordance with the rule before it could that the customer placing the order or party issuing the notice by 3 p.m. ET on reasonably be cancelled by the initiating its agent has agreed to receive the the effective date of the ‘‘buy-in’’ notice. party. securities against payment in an amount iii. Add language to clarify that if the equal to the execution price even buyer/issuing party prior to executing 4. Proposed FINRA Rule 11820 (Selling- though such purchase may represent the ‘‘buy-in’’ is notified by the seller/ Out) only a part of a larger order. NYSE Rule delivering party that some or all of the Current NASD Rule 11820 (Selling- 430 has an exception for obligations of securities are in the seller’s physical Out) will be adopted as FINRA Rule the U.S. government. possession and will be delivered to the 11820 (Selling-Out) into the As approved, FINRA Rule 11860 will issuing party then the order to ‘‘buy-in’’ Consolidated FINRA Rulebook, subject continue the requirement in NYSE Rule shall not be executed with respect to to minor changes. There is no 430 and NASD Rule 3370 that members such securities, and the member that comparable NYSE rule. NASD Rule prior to accepting a purchase order for initiated the original order to ‘‘buy-in’’ 11820 generally requires the party a security ascertain that the customer or shall accept and pay for such securities. executing the ‘‘sell-out’’ to notify the its agent will receive against payment However, if such securities are not buyer on the day of execution no later securities in an amount equal to any promptly delivered, the seller that than the close of business local time execution confirmed to the customer

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even if such execution may represent a FINRA Rule 11870 minor clarifications pursuant to the rule shall be clearly partial fill of the order. FINRA will as well as the following more marked or captioned as such and that a eliminate the exemption for transactions substantive, which were interpretations receiving member shall reject delivery in U.S. government obligations as to the prior version of NYSE Rule 412: 7 of a security that cannot be deemed a provided by Rule 430. Further, the rule a. Add a new provision regarding the safekeeping position against a fail as being adopted will continue to procedures for the transfer of book-entry contract; (2) in paragraph (h) that require the use of either a Clearing mutual fund shares that clarifies the notification shall be in written or Agency or a Qualified Vendor for the obligations of the parties when electronic form and that confirmation of electronic confirmation and affirmation transferring a customer’s positions in purchase along with a billing or of all depository eligible transactions. such securities. FINRA will add this payment shall be forwarded as promptly FINRA is clarifying that the new rule provision to paragraph (f)(9) of proposed as possible; (3) in paragraph (i) that will, similar to NYSE Rule 387, apply to FINRA Rule 11870. notification shall be in written or (1) transactions of foreign customers and b. Add a definition of the term electronic form; and (4) in paragraph broker-dealers that settle in the U.S. and ‘‘participant in a registered clearing (m) that when both members are (2) eligible sinking funds and/or agency’’ for purposes of the rule to mean participants in a registered clearing dividend reinvestment transactions. The a member that is eligible to use the agency, the securities account asset new rule will add a new requirement agency’s automated customer securities transfer procedures shall be that is contained in NYSE Rule 387 that account transfer capabilities. accomplished in accordance with the requires a ‘‘Qualified Vendor’’ to provide c. Add Supplementary Material .01 to rule and the rules of the registered FINRA with copies of its required clarify that members must establish clearing agency. submissions to the SEC staff. written procedures to effect and g. Eliminate paragraph (n)(3) which supervise the transfer of customer requires that a copy of each customer 6. Proposed FINRA Rules 11870 account assets pursuant to the account transfer instruction issued on (Customer Account Transfer Contracts) requirements of the proposed rule. an ‘‘ex-clearing house’’ basis be sent to and 11870.03 (Sample Transfer d. Add Supplementary Material .02 to the local District Office of NASD having Instruction Forms) require members to inform customers jurisdiction over the carrying member. FINRA is adopting NASD Rule 11870 with respect to retirement plan FINRA believes that a majority of as FINRA Rule 11870 (Customer securities that the choice of the method customer account transfers now occur Account Transfer Contracts) into the of disposition of such assets may result between members of a clearing agency Consolidated FINRA Rulebook with the in liability for the payment of taxes and and that the volume of transactions that following changes. There is no penalties. occur ‘‘ex-clearing’’ has significantly comparable NYSE Incorporated Rule.6 e. Amend the time frames in the new decreased. FINRA is also adopting NASD IM– rule for notice and completion of close- FINRA will announce the 11870, which contains the Sample outs of fail contracts resulting from the implementation date of the rule change Transfer Instruction Forms, into the not completing a transfer of a customer’s in a Regulatory Notice to be published Consolidated FINRA Rulebook with account to conform to the time frames no later than ninety days following the minor changes to replace references to for all close-outs as specified in date of the approval of this rule change. NASD with FINRA. proposed FINRA Rule 11810 (Buy-In The implementation date will be no Generally, NASD Rule 11870 provides Procedures and Requirements). later than 365 days following the date of that when a brokerage customer wishes Specifically, the new rule will require the approval of this rule change. to transfer his or her account to another the receiving member to provide notice member and gives written notice of that to the carrying member not later than 12 III. Discussion fact to the receiving member, both noon ET two business days preceding Section 15A(b)(6) of the Act requires, members must expedite and coordinate the execution of the proposed close-out among other things, that FINRA rules the transfer. The new FINRA Rule 11870 (as opposed to 12 noon ‘‘his’’ time). In must be designed to promote just and would continue to set forth the required addition, the rule will require that every equitable principles of trade and, in steps that members must follow to effect notice of close-out state that the general, to protect investors and the the transfer of customers’ accounts, securities may be closed out ‘‘unless public interest.8 The rule change including the initial request to transfer delivery is effected at or before a certain amends FINRA’s rules so as to adopt a an account, the time frame in which a specified time, which may not be prior majority of the UPC Rules into the new transfer request must be acted upon, the to 3 p.m. ET,’’ as opposed to ‘‘the local Consolidated FINRA Rulebook without validation of such transfer request, and time in the community where the significant changes in order to update the documentation required to effect the carrying member maintains his office.’’ and to reflect the new conventions of transfer. FINRA will add to proposed The new rule will also replace the the Consolidated FINRA Rulebook. The requirement that the party executing the rule change also updates certain other 6 Previously, NYSE Rule 412 (Customer Account ‘‘close-out’’ notify the seller as to the UPC Rules to reflect current industry Transfer Contracts) and its related interpretations quantity purchased and the price paid practices. As one part of a larger similarly regulated the transfer of customer not later than ‘‘the close of business, undertaking to consolidate the rules of accounts. FINRA eliminated NYSE Rule 412 and its interpretations from the Transitional Rulebook as local time, where the seller maintains the NASD and NYSE, FINRA’s new part of a rule change to reduce regulatory his office,’’ with the requirement to rules will apply to all registered broker- duplication for Dual Members during the period provide such notice not later than ‘‘6 dealers, which should further promote before completion of the Consolidated FINRA p.m. ET on the date of the execution of the just and equitable principles of trade Rulebook. The NYSE subsequently amended its version of NYSE Rule 412 to state that NYSE such ‘close-out’.’’ and, in general, better protect investors members and member organizations shall comply f. Amend certain references in the and the public interest. with NASD Rule 11870, concerning the transfer of new rule from ‘‘should’’ to ‘‘shall.’’ Accordingly, for the reasons stated customer accounts between members, and any Specifically, (1) In paragraph (f) that the above the Commission believes that the amendments thereto, as if such rule were part of the NYSE’s rules. Securities Exchange Act Release No. obligation that fail contracts established rule change is consistent with FINRA’s 58533 (Sept. 12, 2008), 73 FR 54652 (Sept. 22, 2008) (Approval Order; SR–FINRA–2008–036). 7 Id. 8 15 U.S.C. 78o–3(b)(6).

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obligation under Section 15A of the location, teleconferencing will be Bridgeport Public Library, Borroughs Exchange Act, as amended, and the available. Bldg., 925 Broad St., Bridegport, CT, rules and regulations thereunder.9 Public Participation: It is requested 203–576–7777. that persons wishing to attend contact Igor Sikorsky Memorial Airport, IV. Conclusion Trisha Smeltzer prior to October 14, Administration Bldg., 1000 Great On the basis of the foregoing, the 2010, at [email protected] or 703– Meadow Dr., Stratford, CT, 203–576– Commission finds that the proposed 812–2382 and provide their name, e- 8162. rule change is consistent with the mail address, and affiliation. A member A public hearing will be held to requirements of the Act and in of the public requesting reasonable solicit public comment on the particular with the requirements of accommodation should make his or her document. The hearing will be held on Section 15A of the Act and the rules and request upon registering for the meeting. September 22 at the Stratford Ramada regulations thereunder. Such requests received after October 19 Inn, 225 Lordshop Blvd., Stratford, It is therefore ordered, pursuant to will be considered, but might not be Connecticut at 7 p.m. Public comments Section 19(b)(2) of the Act, that the possible to fulfill. Please contact Ms. will be accepted through September 30, proposed rule change (File No. SR– Smeltzer for additional meeting 2010. FINRA–2010–030) be and hereby is information, including teleconferencing Issued on: August 27, 2010. dial-in details. approved. LaVerne F. Reid, For the Commission by the Division of Dated: September 7, 2010. Manager, Airports Division. Trading and Markets, pursuant to delegated Keith Loken, [FR Doc. 2010–22823 Filed 9–13–10; 8:45 am] authority.10 Assistant Legal Adviser, Office of Private BILLING CODE 4910–13–P Florence E. Harmon, International Law, Office of the Legal Adviser, Deputy Secretary. Department of State. [FR Doc. 2010–22783 Filed 9–13–10; 8:45 am] [FR Doc. 2010–22890 Filed 9–13–10; 8:45 am] DEPARTMENT OF TRANSPORTATION BILLING CODE 8010–01–P BILLING CODE 4710–08–P Federal Aviation Administration

DEPARTMENT OF TRANSPORTATION Public Meeting/Working Group With DEPARTMENT OF STATE Industry on Volcanic Ash Federal Aviation Administration [Public Notice: 7113] AGENCY: Federal Aviation Administration (FAA), DOT. U.S. Department of State Advisory Draft Re-Evaluation for Environmental ACTION: Committee on Private International Impact Statement: Sikorsky Memorial Notice of public meeting. Airport, Stratford, CT Law: Public Meeting on the Work of the SUMMARY: This notice announces a UNCITRAL Working Group on AGENCY: Federal Aviation meeting hosted by the FAA’s Aviation Procurement Administration (FAA), DOT. Weather Group in coordination with the The United Nations Commission on ACTION: Notice of availability. National Oceanic and Atmospheric International Trade Law (UNCITRAL) Administration (NOAA). The meeting is SUMMARY: The FAA is issuing this notice to identify operational needs for Working Group on Procurement will to advise the public that a Draft Re- next meet November 1–5, 2010 in Volcanic Ash information in support of Evaluation for an Environmental Impact aviation from stakeholders. Vienna. At that meeting, the Working Statement (EIS) has been prepared for Group will continue its work on DATES: The meeting will be held on Sikorsky Memorial Airport in Stratford, November 5, 2010, from 9 a.m. to 4:30 revisions to the 1994 Model Law on Connecticut. Procurement of Goods, Construction p.m. FOR FURTHER INFORMATION CONTACT: ADDRESSES: The meeting will be held at and Services, and it may also begin a Richard Doucette, Environmental the Federal Aviation Administration, review of a Guide to Enactment that will Program Manager, Federal Aviation 800 Independence Avenue SW., Bessie accompany the revised Model Law. Administration New England, 12 New Coleman Room, Washington, DC 20591. In preparation for that meeting, a England Executive Park, Burlington, public meeting will be held, under the MA. (781) 238–7613. FOR FURTHER INFORMATION CONTACT: Mr. auspices of the Department of State’s Steven R. Albersheim, Federal Aviation SUPPLEMENTARY INFORMATION: The FAA Advisory Committee on Private Administration, 800 Independence is making available a Draft Re- International Law, to obtain the views of Avenue, SW., Washington, DC 20591; Evaluation document, which evaluates concerned stakeholders. telephone: (202) 385–7185; e-mail: the impacts of Runway Safety Areas and Time and Place: The public meeting [email protected] or Mr. other airfield improvements at Sikorsky will take place at The George Stewart Stepney, Federal Aviation Memorial Airport in Stratford, Washington University Law School, Administration, 800 Independence Connecticut. The document will assist Faculty Conference Center, 5th floor, Avenue, SW., Washington, DC 20591; the FAA in determining the suitability 2000 H Street, NW., Washington, DC on telephone: (202) 385–7182; e-mail: of the May 1999 EIS and October 1999 October 21, 2010. The meeting will [email protected]. begin at 9:30 a.m. and is expected to last Record of Decision (ROD). No action has SUPPLEMENTARY INFORMATION: no later than noon. If you are unable to been taken on the prior EIS or ROD. The Re-Evaluation document is available for Background: The FAA is issuing this attend the public meeting and would notice to advise the public of a meeting like to participate from a remote review during normal business hours at the following locations: to discuss the establishment of FAA New England Region, 16 New operational requirements for the 9 In approving this proposal, the Commission has England Executive Park, Burlington, reporting and forecasting of volcanic considered the proposed rule’s impact on efficiency, competition, and capital formation. See MA, 781–238–7613. eruptions and the associated ash cloud. 15 U.S.C. 78c(f). Stratford Public Library, 2203 Main It has been well documented that 10 17 CFR 200.30–3(a)(12). St., Stratford, CT, 203–385–4161. volcanic ash clouds are a hazard to en

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route aircraft and airport operations. DEPARTMENT OF TRANSPORTATION • Meeting Plans and Dates. The FAA, in collaboration with NOAA, Attendance is open to the interested provides information on volcanic ash. Federal Aviation Administration public but limited to space availability. There is a need to better understand the With the approval of the chairmen, 22nd Meeting: RTCA Special content and characteristics of members of the public may present oral Committee 206: EUROCAE WG 76 information on volcanic ash to support statements at the meeting. Persons Plenary: AIS and MET Data Link wishing to present statements or obtain operational decisions. This information Services will be used to help direct R&D effort for information should contact the person improved services in support of AGENCY: Federal Aviation listed in the FOR FURTHER INFORMATION NextGen. In addition, the information Administration (FAA), DOT. CONTACT section. Members of the public may present a written statement to the gathered from this meeting will assist ACTION: Notice of RTCA Special committee at any time. FAA in its effort to collaborate with the Committee 206: EUROCAE WG 76 international community to promote Plenary: AIS and MET Data Link Issued in Washington, DC, on September 7, global harmonization on the functional Services meeting. 2010. and performance requirements for Robert L. Bostiga, SUMMARY: The FAA is issuing this notice volcanic ash. The Federal Advisory RTCA Advisory Committee. to advise the public of a meeting of Committee Act (Pub. L. 92–463, 5 [FR Doc. 2010–22824 Filed 9–13–10; 8:45 am] RTCA Special Committee 206: U.S.C., Appendix 2) requires that public BILLING CODE 4910–13–P EUROCAE WG 76 Plenary: AIS and notice of this meeting be announced in MET Data Link Services. the Federal Register. DATES: The meeting will be held DEPARTMENT OF TRANSPORTATION Purpose: The FAA is in the process of October 5–7, 2010 from 9 a.m. to 5 p.m. reviewing existing operational ADDRESSES: The meeting will be held at Federal Aviation Administration requirements as implemented in Eurocontrol, Jupiter Conference Room, Fourteenth Meeting: EUROCAE WG– advisories and warning messages to Brussels, Belgium. Contact Person: 72: RTCA Special Committee 216: Airline Operations Centers, Flight Gerard Terrien, Eurocontrol, Phone: 32– Aeronautical Systems Security (Joint Crews, and Traffic Flow Management. 2–729–3581. Meeting) In that regard, the FAA has defined an FOR FURTHER INFORMATION CONTACT: initial set of volcanic ash functional and RTCA Secretariat, 1828 L Street, NW., AGENCY: Federal Aviation performance requirements to support Suite 805, Washington, DC 20036; Administration (FAA), DOT. NextGen operations. These telephone (202) 833–9339; fax (202) ACTION: Notice of EUROCAE WG–72: requirements must be validated with 833–9434; Web site http://www.rtca.org. RTCA Special Committee 216: users in order to provide sound SUPPLEMENTARY INFORMATION: Pursuant Aeronautical Systems Security (Joint guidance for R&D investments. The to section 10(a)(2) of the Federal Meeting). purpose of the meeting announced in Advisory Committee Act (Pub. L. 92– this Federal Register Notice is to assist 463, 5 U.S.C., Appendix 2), notice is SUMMARY: The FAA is issuing this notice the FAA in refining these requirements hereby given for a RTCA Special to advise the public of a meeting of which will be used to drive R&D for Committee 206: EUROCAE WG 76 EUROCAE WG–72: RTCA Special improvement in volcanic ash detection, Plenary: AIS and MET Data Link Committee 216: Aeronautical Systems modeling and forecasting. The specific Services meeting. The agenda will Security (Joint Meeting). objective of the meeting is to identify include: DATES: The meeting will be held October 12–14, 2010 starting at 9 a. m. performance requirements in terms of 5 October—Tuesday accuracy, latency, reliability, resolution, to 5 p. m. • location, density, etc., of volcanic ash 9 a.m.—Opening Plenary. ADDRESSES: The meeting will be held at • information resulting from volcanic ash Chairmen’s remarks and Host’s Third Floor, Conference Room 6 (CR/6) modeling, observation, and forecasting. comments. International Civil Aviation • Introductions, approval of previous Public Participation: Due to space Organization (ICAO), Headquarters, 999 meeting minutes, review and approve constraints, interested parties will need University Street, Montre´al, Quebec meeting agenda. H3C 5H7, Canada, Internet ICAO home to register for this activity. Deadline for • Schedule for this week. page: http://www.icao.int. registration is October 31, 2010 or when • Action Item Review. FOR FURTHER INFORMATION CONTACT: capacity of the facility is met. We are • 10 a.m. SPR FRAC Comment RTCA Secretariat, 1828 L Street, NW., asking anyone interested in attending to Review—Joint AIS and MET Subgroup Suite 805, Washington, DC, 20036; notify Steven Albersheim or Stewart Meetings. Stepney at the phone or e-mail address telephone (202) 833–9339; fax (202) listed in the FOR FURTHER INFORMATION 6 October—Wednesday 833–9434; Web site http://www.rtca.org. CONTACT section. • 9 a.m. SPR FRAC Comment SUPPLEMENTARY INFORMATION: Pursuant to section 10(a) (2) of the Federal Issued in Washington, DC on September 7, Review—Joint AIS and MET Subgroup Meetings. Advisory Committee Act (Pub. L. 92– 2010. 463, 5 U.S.C., Appendix 2), notice is Richard J. Heuwinkel, 7 October—Thursday hereby given for a EUROCAE WG–72: Team Manager, Aviation Weather Policy and • 9 a.m. SPR FRAC Comment RTCA Special Committee 216: Requirements. Review—Joint AIS and MET Subgroup Aeronautical Systems Security (Joint [FR Doc. 2010–22822 Filed 9–13–10; 8:45 am] Meetings. Meeting) meeting. The meeting is BILLING CODE 4910–13–P • 10:30 a.m. Plenary Session. expected to start at 9 on the first day • Approve New Document—SPR for and to finish by 17:00 each day. AIS and MET Data Link Services. A complete list of participants must • Other Business. be supplied in advance to support

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preparation of building entry passes. DEPARTMENT OF TRANSPORTATION between 9 a.m. and 5 p.m., Monday Please send your intentions to attend by through Friday, except Federal holidays. Monday, October 1, 2010 to Jean- Pipeline and Hazardous Materials Instructions: You should identify the [email protected] (alt: Safety Administration docket number for the special permit [email protected]). Non- request you are commenting on at the pre-registered attendees will not be [Docket No. PHMSA–2010–0042] beginning of your comments. If you admitted. submit your comments by mail, please Pipeline Safety: Request for Special submit two copies. To receive The agenda will include: Permit confirmation that PHMSA has received Day 1: AGENCY: Pipeline and Hazardous your comments, please include a self- • Welcome/Introductions/ Materials Safety Administration addressed stamped postcard. Internet Administrative Remarks. (PHMSA); DOT. users may submit comments at http:// www.Regulations.gov. • Agenda Overview and Approval of ACTION: Notice. the Summary of the 13th meeting held Note: Comments are posted without SUMMARY: June 8–11, 2010, (RTCA Paper No. 137– PHMSA is providing an changes or edits to http:// additional comment period of 30 days www.Regulations.gov, including any personal 10/SC216–029). from the date of publication of this information provided. There is a privacy • Report on the PMC/ICC action on notice in relation to the Federal Register statement published on http:// TOR: Notice issued on July 26, 2010, (75 FR www.Regulations.gov. • Publication Progress and Update. 43612). In that notice, PHMSA FOR FURTHER INFORMATION CONTACT: requested comments concerning a • Subgroup and Action Item Reports. General: Dana Register by telephone special permit request from Dominion • at 202–366–0490; or, e-mail at Plenary review of disposition of Transmission Incorporated (DTI). DTI [email protected]. comments to ED202. requested relief from certain provisions Technical: Joshua Johnson by Days 2 & 3: of 49 CFR 192.611. PHMSA is extending telephone at 816–329–3825; or, e-mail at the comment period in order to clarify • Subgroup Meetings/Break-outs. [email protected]. the exact location of the special permit • Subgroup Reports on Break-outs. SUPPLEMENTARY INFORMATION: PHMSA segment and to allow the public to has received a request for a special • Establish Dates, Location and review additional documents added to permit from Dominion Transmission Agenda for Next Meeting(s). the docket since the original notice. Inc., seeking relief from compliance • Any Other Business. DATES: Submit any comments regarding with certain pipeline safety regulations. this special permit request by October Dominion’s request includes a technical Attendance is open to the interested 14, 2010. public but limited to space availability. analysis. This request can be found at ADDRESSES: Comments should reference http://www.Regulations.gov under With the approval of the chairmen, the docket number for this specific docket number PHMSA–2010–0121. We members of the public may present oral special permit request and may be invite interested persons to participate statements at the meeting. Persons submitted in the following ways: by reviewing this special permit request wishing to present statements or obtain • E-Gov Web Site: http:// at http://www.Regulations.gov, and by information should contact the person www.Regulations.gov. This site allows submitting written comments, data or listed in the FOR FURTHER INFORMATION the public to enter comments on any other views. Please include any CONTACT section. Members of the public Federal Register notice issued by any comments on potential environmental may present a written statement to the agency. impacts that may result if this special committee at any time. • Fax: 1–202–493–2251. permit is granted. Issued in Washington, DC, on September 8, • Mail: Docket Management System: Before acting on this special permit 2010. United States Department of request, PHMSA will evaluate all Robert L. Bostiga, Transportation, Docket Operations, M– comments received on or before the 30, West Building Ground Floor, Room comment closing date. Comments will RTCA Advisory Committee. W12–140, 1200 New Jersey Avenue, SE., be evaluated after this date if it is [FR Doc. 2010–22879 Filed 9–13–10; 8:45 am] Washington, DC 20590. possible to do so without incurring BILLING CODE 4910–13–P • Hand Delivery: DOT Docket additional expense or delay. PHMSA Management System: U.S. Department will consider each relevant comment we of Transportation, Docket Operations, receive in making our decision to grant M–30, West Building Ground Floor, or deny a request. Room W12–140, 1200 New Jersey PHMSA has received the following Avenue, SE., Washington, DC 20590 special permit request:

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Docket No. Requester Regulation Nature of special permit

PHMSA–2010–0121 ...... Dominion Transmission In- 49 CFR 192.611 ...... To authorize DTI to engage in an alternative approach corporated (DTI). to conduct risk control activities based on Integrity Management Program principles rather than low- ering the MAOP or replacing the subject pipe seg- ment. This application is for one segment of the DTI Line TL–465 in Loudoun County, Virginia. This seg- ment has changed from a Class 1 location to a Class 3 location due to an expanded housing devel- opment. The pipeline is 24-inches in diameter and has a MAOP of 1,250 psig. The segment that has changed Class location is 3,478 feet in length and is located at MP 1085+81 ft. to MP 1,120+59 ft.

Authority: 49 U.S.C. 60118 (c)(1) and 49 FOR FURTHER INFORMATION CONTACT: An agency may not conduct or CFR 1.53. Requests for additional information or sponsor, and a person is not required to Issued in Washington, DC, on August 31, copies of the form and instructions respond to, a collection of information 2010. should be directed to Joel Goldberger unless the collection of information Linda Daugherty, (202) 927–9368, at Internal Revenue displays a valid OMB control number. Deputy Associate Administrator for Policy Service, Room 6129, 1111 Constitution Books or records relating to a collection and Programs. Avenue, NW., Washington, DC 20224, of information must be retained as long [FR Doc. 2010–22884 Filed 9–13–10; 8:45 am] or through the Internet at as their contents may become material BILLING CODE 4910–60–P [email protected]. in the administration of any internal SUPPLEMENTARY INFORMATION: revenue law. Generally, tax returns and Title: Form 1097–BTC, Bond Tax tax return information are confidential, DEPARTMENT OF THE TREASURY Credit. as required by 26 U.S.C. 6103. Internal Revenue Service Abstract: This is an information Request For Comments: Comments return for reporting tax credit bond submitted in response to this notice will Proposed Collection; Comment credits distributed to holders of tax be summarized and/or included in the Request for Form 1097–BTC, Bond Tax credit bonds. The taxpayer holding a tax request for OMB approval. All Credit credit bond on an allowance date during comments will become a matter of a tax year is allowed a credit against public record. Comments are invited on: AGENCY: Internal Revenue Service (IRS), federal income tax equivalent to the (a) Whether the collection of Treasury. interest that the bond would otherwise information is necessary for the proper ACTION: Notice and request for pay. The bondholder must include the performance of the functions of the comments. amount of the credit in gross income agency, including whether the SUMMARY: The Department of the and treat it as interest income. The information shall have practical utility; Treasury, as part of its continuing effort issuers and holders of the tax credit (b) the accuracy of the agency’s estimate to reduce paperwork and respondent bond will send Form 1097–BTC to the of the burden of the collection of burden, invites the general public and bond holders quarterly and file the information; (c) ways to enhance the other Federal agencies to take this return with the IRS annually. quality, utility, and clarity of the opportunity to comment on proposed Current Actions: This form is being information to be collected; (d) ways to and/or continuing information submitted for a new Information minimize the burden of the collection of collections, as required by the Collection. information on respondents, including Paperwork Reduction Act of 1995, Type of Review: This is a new through the use of automated collection Public Law 104–13 (44 U.S.C. collection. techniques or other forms of information 3506(c)(2)(A)). Currently, the IRS is Affected Public: Businesses or other technology; and (e) estimates of capital soliciting comments concerning Form for profit organizations, not for profit or start-up costs and costs of operation, 1097–BTC, Bond Tax Credit. institutions, individuals or households. maintenance, and purchase of services DATES: Written comments should be Estimated Number of Respondents: to provide information. received on or before November 15, 101,630,369. Approved: September 8, 2010. 2010 to be assured of consideration. Estimated Total Annual Burden Allan Hopkins, ADDRESSES: Direct all written comments Hours: 828,287,508. to Gerald Shields, Internal Revenue The following paragraph applies to all Tax Analyst. Service, Room 6129, 1111 Constitution of the collections of information covered [FR Doc. 2010–22790 Filed 9–13–10; 8:45 am] Avenue, NW., Washington, DC 20224. by this notice: BILLING CODE 4830–01–P

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Part II

Department of Transportation Federal Aviation Administration

14 CFR Parts 117 and 121 Flightcrew Member Duty and Rest Requirements; Proposed Rule

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DEPARTMENT OF TRANSPORTATION 267–5749; e-mail: 2. United Kingdom Civil Aviation [email protected]. For legal issues: Authority Publication 371 (CAP–371) Federal Aviation Administration Rebecca MacPherson, Office of the Chief 3. Annex III, Subpart Q to the Commission Counsel, Regulations Division (AGC– of the European Communities Regulation 14 CFR Parts 117 and 121 200), 800 Independence Avenue, SW., No. 3922/91, as Amended (EU OPS Subpart Q) [Docket No. FAA–2009–1093; Notice No. 10– Washington, DC 20591; telephone (202) 267–3073; e-mail: III. General Discussion of the Proposal 11] A. Applicability [email protected]. RIN 2120–AJ58 B. Joint Responsibility SUPPLEMENTARY INFORMATION: Later in C. Fatigue Training Flightcrew Member Duty and Rest this preamble under the Additional D. Flight Duty Period Requirements Information section, we discuss how E. Acclimating to a New Time Zone you can comment on this proposal and F. Daily Flight Time Restrictions AGENCY: Federal Aviation how we will handle your comments. G. Mitigation Strategies Administration (FAA), DOT. Included in this discussion is related 1. Augmentation ACTION: Notice of proposed rulemaking information about the docket, privacy, 2. Split Duty Rest (NPRM). and the handling of proprietary or H. Consecutive Nighttime Flight Duty confidential business information. We Periods SUMMARY: The FAA is proposing to I. Reserve Duty also discuss how you can get a copy of amend its existing flight, duty and rest J. Cumulative Duty Periods regulations applicable to certificate this proposal and related rulemaking K. Rest Requirements holders and their flightcrew members. documents. 1. Pre-Flight Duty Period Rest The proposal recognizes the growing Authority for This Rulemaking 2. Cumulative Rest Requirements similarities between the types of L. Fatigue Risk Management Systems The FAA’s authority to issue rules on operations and the universality of M. Commuting factors that lead to fatigue in most aviation safety is found in Title 49 of the N. Exception for Emergency and individuals. Fatigue threatens aviation United States Code. This rulemaking is Government Sponsored Operations safety because it increases the risk of promulgated under the authority IV. Regulatory Notices and Analyses described in 49 U.S.C. 44701(a)(5), pilot error that could lead to an I. Executive Summary accident. The new requirements, if which requires the Administrator to adopted, would eliminate the current promulgate regulations and minimum As discussed in greater detail distinctions between domestic, flag and safety standards for other practices, throughout this document, this supplemental operations. The proposal methods, and procedures necessary for rulemaking proposes to establish one set provides different requirements based safety in air commerce and national of flight time limitations, duty period on the time of day, whether an security. limits, and rest requirements for pilots individual is acclimated to a new time Table of Contents in part 121 operations. The rulemaking zone, and the likelihood of being able to aims to ensure that pilots have an I. Executive Summary sleep under different circumstances. II. Background opportunity to obtain sufficient rest to DATES: Comments are due November 15, A. Statement of the Problem perform their duties, with an objective 2010. B. NTSB Recommendations of improving aviation safety. FOR FURTHER INFORMATION CONTACT: For C. International Standards Current part 121 pilot duty and rest technical issues: Dale E. Roberts, Air 1. Amendment No. 33 to the International times differ by type of operation Transportation Division (AFS–200), Standards and Recommended Practices, (domestic, flag, and supplemental). A Annex 6 to the Convention on Flight Standards Service, Federal International Civil Aviation, Part I, general summary of current versus Aviation Administration, 800 International Commercial Air proposed flight time limits, duty time Independence Avenue, SW., Transport—Aeroplanes (ICAO Standards limits, and rest time requirements are Washington, DC 20591; telephone (202) and Recommended Practices (SARP)) included in the table below.

Rest time Duty time Flight time

Scenario Minimum rest Minimum rest Maximum flight Maximum flight Maximum flight prior to duty— prior to duty— duty time— duty time— time— Maximum flight domestic international unaugmented augmented unaugmented time—augmented

Current Part 121 .... Daily: 8–11 de- Minimum of 8 16 ...... 16–20 depending 8 ...... 8–16 depending pending on hours to twice on crew size. on crew size. flight time. the number of hours flown. NPRM ...... 9 ...... 9 ...... 9–13 depending 12–18 depending 8–10 depending None. on start time on start time, on FDP start and number of crew size, and time. flight segments. aircraft rest fa- cility.

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A summary of the FAA estimates of the provisions in this rule can be found the costs and benefits associated with in the table below.

Nominal costs PV costs (millions) (millions)

Total Costs (over 10 years) ...... $1,254.1 $803.5

Benefits Nominal benefits PV benefits (millions) (millions)

$6.0 million VSL ...... 659.40 463.80 $8.4 million VSL ...... 837 589

The FAA began considering changing member 4 training and qualifications, • Current approaches to address its existing flight, duty and rest flightcrew fatigue, and consistency of fatigue mitigation strategies in regulations in June 1992, when it safety standards and compliance international standards. announced the tasking of the Aviation between air transportation certificate • The incorporation of fatigue risk Rulemaking Advisory Committee holders.5 He also committed to assess management systems (FRMS) into a (ARAC) Flightcrew Member Flight/Duty the safety of the air transportation rulemaking. Rest Requirements working group.1 The system and to take appropriate steps to The ARC met over a 6-week period tasking followed the FAA’s receipt of improve it. beginning July 7, 2009. Early on, the hundreds of letters about the In June 2009, the FAA chartered the FAA told the ARC members it was very interpretation of existing rest Flight and Duty Time Limitations and interested in the ARC’s requirements and several petitions to Rest Requirements Aviation Rulemaking recommendations, but that the agency amend existing regulations. While the Committee (ARC) 6 comprised of labor, retained the authority and obligation to working group could not reach industry, and FAA representatives to evaluate any proposals and consensus, it submitted a final report in develop recommendations for an FAA independently determine how best to June 1994 with proposals from several rule based on current fatigue science amend the existing regulations. The working group members. Following and a thorough review of international agency reiterated that participation on receipt of the ARAC’s report, the FAA approaches to the issue. The FAA the ARC in no way precluded the ARC published a notice of proposed chartered the ARC to provide a forum members from submitting comments rulemaking in 1995 (1995 NPRM).2 The for the U.S. aviation community to critical of the NPRM when it was FAA received over 2000 comments to discuss current approaches to mitigate published. On September 9, 2009, the the 1995 NPRM. Although some fatigue found in international standards ARC delivered its final report to the commenters, including the National and make recommendations on how the FAA in the form of a draft NPRM.8 Transportation Safety Board (NTSB), United States should modify its The ARC’s goal was to reach as much NASA, Air Line Pilots Association, and regulations. The ARC consisted of 18 agreement as possible on the Allied Pilots Association, said the members representing airline and union prospective regulation. However, the proposal would enhance safety, many associations. The members were members recognized early on that they industry associations opposed the 1995 selected based on their extensive would not be able to reach consensus on NPRM, stating the FAA lacked safety certificate holder management, direct all issues. They were, however, operational experience, or both. data to justify the rulemaking, and generally successful in agreeing upon Specifically, the FAA asked the ARC industry compliance would impose broad regulatory approaches and were to consider and address the following: able to reach consensus on two issues— significant costs. The FAA never • A single approach to addressing how to address reserve 9 and the role of finalized the 1995 rulemaking, and on fatigue that consolidates and replaces November 23, 2009, the agency commuting in any proposed regulations. existing regulatory requirements for The Cargo Airline Association (CAA) withdrew it because it was outdated and parts 121 and 135.7 raised many significant issues that the • presented a separate proposal for FAA Generally accepted principles of consideration to address the unique agency needed to consider before human physiology, performance, and proceeding with a final rule.3 operations of its members.10 According alertness based on the body of fatigue to the CAA, cargo operations are subject On June 10, 2009, Federal Aviation science. • to different operational and competitive Administration (FAA) Administrator J. Information on sources of aviation factors than scheduled passenger air Randolph Babbitt testified before the fatigue. carrier operations, including flight Senate Committee on Commerce, delays and schedule changes outside of 4 A ‘‘flightcrew member’’ is defined in 14 CFR 1.1 Science, and Transportation, the control of the certificate holder. The Subcommittee on Aviation Operations, as a pilot, flight engineer, or flight navigator assigned to duty in an aircraft during flight time. National Air Carrier Association Safety, and Security on Aviation Safety 5 In this document, the terms ‘‘certificate holder’’ (NACA) also submitted an alternate regarding the FAA’s role in the and ‘‘carrier’’ are used interchangeably. Technically, proposal to the ARC.11 NACA proposed oversight of certificate holders. He one could be a ‘‘certificate holder’’ under part 121 addressed issues regarding flightcrew without also being an air carrier. Accordingly, the draft regulatory text only uses the term ‘‘certificate 8 A copy of the ARC recommendations can be holder’’. found in the docket for this rulemaking. 1 57 FR 26685; June 15, 1992. 6 See http://www.faa.gov/about/office%5Forg/ 9 See proposed § 117.3 (Definitions) were the term 2 Flightcrew Member Duty Period Limitations, headquarters%5Foffices/avs/offices/afs/afs200/ for ‘‘Reserve Flightcrew Member’’ is defined. Flight Time Limitations and Rest Requirements the ARC Charter. 10 This proposal may be found in attachment 1 to notice of proposed rulemaking (60 FR 65951; 7 While tasked to consider part 135 operations, the ARC report. December 20, 1995). the ARC did not consider these operations, and this 11 This proposal may be found in attachment 2 to 3 74 FR 61067. proposal does not address them either. the ARC report.

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that the regulations contained in subpart alternate procedures to facilitate specific crew-pairing schedule integrity S to part 121 continue to apply to alertness in the cockpit, air carrier on a bi-monthly basis. Should a carrier certificate holders conducting scheduling and attendance policies fail to meet the required levels of unscheduled supplemental operations. (including sick leave), and medical integrity, it would have to adjust its In addition, it proposed to include a screening and treatment options. schedule to make it more reliable. requirement that such operators develop The FAA has developed a proposal The proposal addresses cumulative and implement FRMS. for addressing the risk of fatigue on the fatigue by placing weekly and 28-day To assist the ARC with its goal of safety of flight based on an evaluation limits on the amount of time a developing proposed rules to enhance of the available literature, existing flightcrew member may be assigned to flightcrew member alertness and regulatory requirements in both the any type of duty, including FDP. employ fatigue mitigation strategies, the United States and other countries, and Further 28-day and annual limits are following experts in sleep, fatigue, and the broad personal, professional placed on flight time. Flightcrew human performance research presented experience of the ARC members and members would be required to be given a brief overview of the existing science FAA staff, as well as the at least 30 consecutive hours free from and studies on sleep and fatigue to the recommendations of the NTSB and duty on a weekly basis, a 25 percent ARC: NASA. Today’s proposal is consistent increase over the current requirements. • Dr. Gregory Belenky, M.D., Sleep with the statutory mandate set forth in In addition, today’s proposal and Performance Research Center, the Act and takes a new approach addresses the impact of changing time Washington State University and Dr. whereby the distinctions between zones and flying through the night by Steven R. Hursh, Ph.D., President, domestic, flag, and supplemental reducing the amount of flight time and Institutes for Behavior Resources, operations are eliminated. Rather, all FDP available for these operations. More Professor, Johns Hopkins University types of operations would take into flight time and FDP would be available School of Medicine presented account the effects of circadian rhythms, for certificate holders that add information on sleep, fatigue, and inadequate rest opportunities and additional flightcrew members and human performance. cumulative fatigue. provide adequate rest facilities to allow • Dr. Thomas Nesthus, Ph.D., FAA The FAA believes its proposal flightcrew members an opportunity to Civil Aeromedical Institute (CAMI) sufficiently accommodates the vast sleep aboard the aircraft. Credit would presented an overview of the current majority of operations conducted today, also be available to certificate holders FAA fatigue studies. while reducing the risk of pilot error that provide sufficient ground-based rest • Dr. Peter Demitry, M.D., 4d from fatigue leading to accidents. In facilities. Enterprises, addressed questions from some areas, the FAA proposes to relax All carriers would have to develop the ARC but did not make a current requirements, while in others, it training programs to educate all presentation. strengthens them to reflect the latest employees responsible for developing The ARC members considered the scientific information. The agency air carrier schedules and safety of flight information presented by the scientists proposes to provide credit for fatigue- on the symptoms of fatigue, as well as as well as other available scientific mitigating strategies, such as sleep the factors leading to fatigue and how to information and used their substantial facilities, that some certificate holders mitigate fatigue-based risk. operational experience knowledge base are currently providing with no For those operations that cannot be to develop the ARC proposals. regulatory incentive. The agency has conducted under the proposed Following their presentations, the also tentatively decided that certain prescriptive requirements, today’s scientific experts encouraged the ARC to operations conducted under the existing proposal also allows a carrier to develop consider the entire body of scientific rules are exposing flightcrew members a carrier-specific fatigue risk studies in developing any proposed to undue risk. management system (FRMS). An FAA- Today’s proposal sets forth a matrix limitations and requirements, rather approved FRMS would allow a 12 that addresses transient fatigue (i.e., the than any one scientific study. certificate holder to customize its immediate, short-term fatigue that can On August 1, 2010, the President operations based on a scientifically- be addressed by a recuperative rest signed the Airline Safety and Federal validated demonstration of fatigue- opportunity) by establishing a 9-hour Aviation Administration Extension Act mitigating approaches and their impact minimum rest opportunity prior to of 2010, Public Law 111–216 (the Act). on a flightcrew member’s ability to commencing duty directly associated In section 212 of the Act, Congress safely fly an airplane beyond the with the operation of aircraft (flight duty directed the FAA to issue regulations no confines of the proposed rule. Finally, later than August 1, 2011 to ‘‘specify period, or FDP), placing restrictions on that type of duty, and further placing today’s proposal provides a limited limitations on the hours of flight and exception for certain emergency duty time allowed for pilots to address restrictions on flight time (that period of time when the aircraft is actually in operations or operations conducted problems relating to pilot fatigue.’’ under contract with the United States The Act directed the FAA to consider motion—flight time is encompassed by FDP). government that cannot otherwise be several factors that could impact pilot conducted under the prescriptive alertness including time of day, number The proposal provides carriers with a level of flexibility not afforded today by requirements proposed here. In order to of takeoffs and landings, crossing assure there is no abuse, and that the multiple time zones, and the effects of permitting a limited extension of FDP and a limited reduction in the minimum exception is necessary, the proposal commuting. In addition, the agency was includes a reporting requirement. directed to review the available research rest opportunity in circumstances that on fatigue, sleep and rest requirements are neither within the carrier’s control II. Background nor reasonably foreseeable. In order to recommended by the NTSB and NASA, A. Statement of the Problem and applicable international standards. assure that carriers are adequately Finally, the agency was to explore scheduling flightcrew member’s work Fatigue is characterized by a general days, so as not to overuse the extension, lack of alertness and degradation in 12 A bibliography of available studies has been carriers would be required to report on mental and physical performance. placed in the docket for this rulemaking. both their overall schedule integrity and Fatigue manifests in the aviation context

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not only when pilots fall asleep in the • Individual variation. Individuals periods, and day-to-night or night-to- cockpit while cruising, but perhaps respond to fatigue factors differently day transitions. more importantly, when they are and may become fatigued at different The FAA believes its current insufficiently alert during take-off and times, and to different degrees of regulations do not adequately address landing. Reported fatigue-related events severity, under the same circumstances. the risk of fatigue. Presently, flightcrew have included procedural errors, There is often interplay between members are effectively allowed to work unstable approaches, lining up with the various factors that contribute to fatigue. up to 16 hours a day, with all of that wrong runway, and landing without For example, the performance of a time spent on tasks directly related to clearances. person working night and early morning aircraft operations. The regulatory There are three types of fatigue: shifts is impacted by the time of day. requirement for 9 hours of rest is transient, cumulative, and circadian. Additionally, because of the difficulty regularly reduced, with flightcrew Transient fatigue is acute fatigue in getting normal sleep during other members spending rest time traveling to brought on by extreme sleep restriction than nighttime hours, such a person is or from hotels and being provided with or extended hours awake within 1 or 2 more likely to have a cumulative sleep little to no time to decompress. days. Cumulative fatigue is fatigue debt or to not have obtained a full Additionally, certificate holders brought on by repeated mild sleep night’s sleep within the past 24 hours. regularly exceed the allowable duty restriction or extended hours awake Scientific research and periods by conducting flights under part across a series of days. Circadian fatigue experimentation have consistently 91 instead of part 121, where the refers to the reduced performance demonstrated that adequate sleep applicable flight, duty and rest during nighttime hours, particularly sustains performance. For most people, requirements are housed. As the NTSB during an individual’s window of 8 hours of sleep in each 24 hours repeatedly notes, the FAA’s regulations circadian low (WOCL) (typically sustains performance indefinitely. Sleep do not account for the impact of between 2 a.m. and 6 a.m.). opportunities during the WOCL are circadian rhythms on alertness, and the Common symptoms of fatigue preferable, although some research entire set of regulations is overly include: indicates that the total amount of sleep complicated, with a different set of • Measurable reduction in speed and is more important than the timing of the regulations for domestic operations, flag accuracy of performance, sleep. Within limits, shortened periods operations, and supplemental • Lapses of attention and vigilance, of nighttime sleep may be nearly as operations. • Delayed reactions, beneficial as a consolidated sleep period B. NTSB Recommendations • Impaired logical reasoning and when augmented by additional sleep decision-making, including a reduced periods, such as naps before evening The NTSB has long been concerned ability to assess risk or appreciate departures, during flights with about the effects of fatigue in the consequences of actions, augmented flightcrews, and during aviation industry. The first aviation • Reduced situational awareness, and layovers. Sleep should not be safety recommendations, issued in 1972, • Low motivation to perform optional fragmented with interruptions. In involved human fatigue, and aviation activities. addition, environmental conditions, safety investigations continue to A variety of factors contribute to such as temperature, noise, and identify serious concerns about the whether an individual experiences turbulence, impact how beneficial sleep effects of fatigue, sleep, and circadian fatigue as well as the severity of that is and how performance is restored. rhythm disruption. Currently, the fatigue. The major factors affecting When a person has accumulated a NTSB’s list of Most Wanted fatigue include: sleep debt, recovery sleep is necessary Transportation Safety Improvements • Time of day. Fatigue is, in part, a to fully restore the person’s ‘‘sleep includes safety recommendations function of circadian rhythms. All other reservoir.’’ Recovery sleep should regarding pilot fatigue. These factors being equal, fatigue is most include at least one physiological night, recommendations are based on two likely, and, when present, most severe, that is, one sleep period during accident investigations and an NTSB between the hours of 2 a.m. and 6 a.m. nighttime hours in the time zone in safety study on commuter airline • Amount of recent sleep. If a person which the individual is acclimated. The safety.15 has had significantly less than 8 hours average person requires in excess of 9 In February 2006 the NTSB issued of sleep in the past 24 hours, he or she hours of sleep a night to recover from safety recommendations after a BAE– is more likely to be fatigued. 13 J3201 operated under part 121 by • a sleep debt. Time awake. A person who has Several aviation-specific work Corporate Airline struck trees on final been continually awake more than 17 schedule factors 14 can affect sleep and approach and crashed short of the hours since his or her last major sleep subsequent alertness. These include runway at Kirksville Regional Airport, period is more likely to be fatigued. early start times, extended work Kirksville, Missouri. The captain, first • Cumulative sleep debt. For the periods, insufficient time off between officer, and 11 of the 13 passengers average person, cumulative sleep debt is work periods, insufficient recovery time died. The NTSB determined the the difference between the amount of off between consecutive work periods, probable cause of the October 19, 2004 sleep a person has received over the amount of work time within a shift or accident was the pilots’ failure to follow past several days, and the amount of duty period, number of consecutive established procedures and properly sleep they would have received if they work periods, night work through one’s conduct a non-precision instrument got 8 hours of sleep a night. A person window of circadian low, daytime sleep approach at night in instrument with a cumulative sleep debt of more meteorological conditions. The NTSB than 8 hours since his or her last full 13 Recovery sleep does not require additional night of sleep is more likely to be sleep equal to the cumulative sleep debt; that is, an 15 On February 2, 2010, the NTSB released a press fatigued. 8-hour sleep debt does not require 8 additional release summarizing the results of its investigation • Time on task. The longer a person hours of sleep. into the Colgan Air crash of February 12, 2009, 14 Rosekind MR. Managing work schedules: an which resulted in the death of 50 people. The NTSB has continuously been doing a job alertness and safety perspective. In: Kryger MH, did not state that fatigue was causal factor to the without a break, the more likely he or Roth T, Dement WC, editors. Principles and crash; however, it did recommend that the FAA she is to be fatigued. Practice of Sleep Medicine; 2005:682. take steps to address pilot fatigue.

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concluded that fatigue likely NTSB reiterated earlier for these provisions but set forth a contributed to the pilots’ performance recommendations to (1) finalize the regulatory framework for member States and decision-making ability. This review of current flight and duty time to use as guidelines in establishing conclusion was based on the less than limitations to ensure the limitations prescriptive limitations for fatigue optimal overnight rest time available to consider research findings in fatigue management. Member States are the pilots, the early report time for duty, and sleep issues and (2) prohibit required to base their regulations on the number of flight legs, and the certificate holders from assigning a scientific principles and knowledge demanding conditions encountered flightcrew to flights conducted under with the goal of ensuring that flightcrew during the long duty day. part 91 unless the flightcrew met the members perform at an adequate level of As a result of the accident, the NTSB flight and duty time limits under part alertness for safe flight operations. The issued the following safety 121 or other applicable regulations ICAO SARP do not address fatigue risk recommendations related to flight and (recommendation No. A–95–113). duty time limitations: (1) Modify and In addition to recommending a management programs currently; simplify the flightcrew hours-of-service comprehensive approach to fatigue with however, these programs are currently regulations to consider factors such as flight duty limits based on fatigue under development. length of duty day, starting time, research, circadian rhythms, and sleep 2. United Kingdom Civil Aviation workload, and other factors shown by and rest requirements, the NTSB has Authority Publication 371 (CAP–371) recent research, scientific evidence, and also stated that FRMS may hold promise current industry experience to affect as an approach to dealing with fatigue Air Navigation Order 2000, Part VI, as crew alertness (recommendation No. A– in the aviation environment. However, amended, requires a certificate holder to 06–10); and (2) require all part 121 and the NTSB noted that it considers fatigue have a civil aviation authority-approved part 135 certificate holders to management plans to be a complement scheme for regulating the flight time of incorporate fatigue-related information to, not a substitute for, regulations to aircrews. CAP–371 provides guidance similar to the information being address fatigue. on this requirement and recognizes that developed by the DOT Operator Fatigue C. International Standards the prime objective of a flight limitation Management Program into initial and scheme is to ensure flightcrew members recurrent pilot training programs. The There are a number of standards are adequately rested at the beginning of recommendation notes that this training addressing flight and duty time should address the detrimental effects of limitations and rest requirements that each Flight Duty Period (FDP) and are fatigue and include strategies for have been adopted by other flying sufficiently free from fatigue so avoiding fatigue and countering its jurisdictions, as well as the they can operate efficiently and safely in effects (recommendation No. A–06–10). International Civil Aviation normal and abnormal situations. When The NTSB’s list of Most Wanted Organization (ICAO), and these establishing maximum FDPs and Transportation Safety Improvements standards were reviewed by the ARC to minimum rest periods, certificate also includes a safety recommendation determine if any of their philosophy or holders must consider the relationship on pilot fatigue and ferry flights structures could be adopted by the FAA. between the frequency and patterns of conducted under 14 CFR part 91. Three While the ARC found many of the scheduled FDPs and rest periods, and flightcrew members died after a Douglas requirements useful, it also determined the effects of working long hours with DC–8–63 operated by Air Transport that the U.S. requirements would need minimum rest. International was destroyed by ground to address the U.S. aviation industry impact and fire during an attempted and that the existing standards could 3. Annex III, Subpart Q to the three-engine takeoff at Kansas City not fully achieve that objective. The Commission of the European International Airport in Kansas City, FAA agrees that none of the existing Communities Regulation No. 3922/91, Missouri. The NTSB noted that the standards fully address the U.S. aviation as Amended (EU OPS subpart Q) flightcrew conducted the flight as a environment. Nevertheless, the existing maintenance ferry flight under part 91 standards do serve as the basis of many EU OPS subpart Q prescribes after a shortened rest break following a of the provisions proposed today. limitations on FDPs, duty periods, block demanding round trip flight to Europe Accordingly, specific provisions of (flight) time, and rest requirements. Like that crossed multiple time zones. The these standards are discussed the previous standards discussed, EU NTSB further noted that the throughout the rest of this document OPS subpart Q recognizes the international flight, conducted under and a copy of each standard has been importance of enabling flightcrew part 121, involved multiple legs flown placed in the docket. members to be sufficiently free from at night following daytime rest periods fatigue so they can operate the aircraft 1. Amendment No. 33 to the that caused the flightcrew to experience satisfactorily in all circumstances. In International Standards and circadian rhythm disruption. In establishing flight and duty limitation Recommended Practices, Annex 6 to the addition, the NTSB found the captain’s and rest schemes, EU OPS subpart Q last rest period before the accident was Convention on International Civil Aviation, Part I, International requires certificate holders to consider repeatedly interrupted by the certificate the relationship between the frequencies holder. Commercial Air Transport—Aeroplanes (ICAO Standards and Recommended and pattern of FDPs and rest periods, In issuing its 1995 recommendations, and the cumulative effects of long duty the NTSB stated that the flight time Practices (SARP)) hours with interspersed rest. Certificate limits and rest requirements under part The ICAO SARP for Contracting holders must take action to revise a 121 that applied to the flightcrew before States (States) provide that a certificate schedule in cases where the actual the ferry flight did not apply to the ferry holder should establish flight time and flight operated under part 91. As a duty period limitations and rest operation exceeds the maximum result, the regulations permitted a provisions that enable the certificate scheduled FDP on more than 33 percent substantially reduced flightcrew rest holder to manage the fatigue of its of the flights in that schedule during a period for the nonrevenue ferry flight. flightcrew members. The ICAO SARP do specified period. As a result of the investigation, the not provide specific numerical values

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III. General Discussion of the Proposal member may not be at the controls for B. Joint Responsibility the entire flight; crew augmentation is A. Applicability Fatigue mitigation is a joint prohibited in domestic operations; and responsibility of the certificate holder The FAA is proposing to limit this the regulations governing flag and the flightcrew member. Today’s rulemaking to part 121 certificate operations, where augmentation is proposal recognizes the need to hold holders and the flightcrew members 16 largely assumed, allow certificate both certificate holders and pilots who work for them. While fatigue is a holders to liberally increase the amount responsible for making sure flightcrew universal problem that applies to all of flight time based on the presence of members are working a reasonable types of operations and to all safety additional flightcrew members, number of hours, getting sufficient sensitive functions, the agency has regardless of whether those individuals sleep, and not reporting for flight duty decided to take incremental steps in can actually fly the airplane. in an unsafe condition. Many of the addressing fatigue. Thus, future ways that carriers and flightcrew rulemaking initiatives may address Fatigue factors, however, are members will negotiate this joint fatigue concerns related to flight universal. The sleep science, while still responsibility will be handled in the attendants, maintenance personnel, and evolving and subject to individual context of labor management relations. dispatchers. inclinations, is clear in a few important Others will not. Today’s proposal is In addition, part 135 certificate respects: most people need eight hours drafted in a manner that directly holders should pay close attention to of sleep to function effectively, most imposes the regulatory obligations on both this NPRM and any final rule. This people find it more difficult to sleep both the certificate holders and the is because part 135 operations are very during the day than during the night, flightcrew members. It is unfair to place similar to those conducted under part resulting in greater fatigue if working at all the blame for fatigue on the carriers. 121, particularly part 121 supplemental night; the longer one has been awake Pilots who pick up extra hours, operations. The FAA does not and the longer one spends on task, the moonlight, report to work when sick, intuitively see any difference in the greater the likelihood of fatigue; and commute irresponsibly, or simply safety implications between the two fatigue leads to an increased risk of choose not to take advantage of the types of operations, although it making a mistake. required rest periods are as culpable as acknowledges there may be less overall The FAA recognizes there are carriers who push the envelop by risk to the flying public in part 135 different business models and needs scheduling right up to the maximum operations than part 121 operations. that are partly responsible for the duty limits, assigning flightcrew Accordingly, the part 135 community differences in the current regulations. It members who have reached their flight should expect to see an NPRM is sympathetic to concerns raised within time limits additional flight duties addressing its operations that looks very the ARC by cargo carriers and carriers under part 91, and exceeding the similar to, if not exactly like, the final engaged in supplemental operations that maximum flight and duty limits by rule the agency anticipates issuing as new regulations will disproportionately claiming reasonably foreseeable part of this rulemaking initiative. impact their business models. However, Today’s proposal applies to all flights circumstances are beyond their control. the FAA also notes that the historical One important element of this conducted by part 121 certificate distinction between the types of proposal is that flightcrew members holders, including flights like ferry operators has become blurred. Cargo may not accept an assignment that flights that are historically conducted carriers conduct the vast majority of would consist of an FDP if they are too under part 91. While these types of their operations at night, but passenger fatigued to fly safely. Likewise a flights can continue to operate under the carriers also offer ‘‘red eyes’’ on a daily flightcrew member may not continue general rules of part 91, the flight, duty, basis. Some carriers operate under subsequent flight segments if he or she and rest requirements proposed here domestic, flag or supplemental has become too fatigued to fly safely. would also apply. authority, depending on the nature of In addition, the FAA has tentatively Certificate holders also must assess a the specific operation. Additionally, in flightcrew member’s state when he or decided against adopting different some instances, the FAA has authorized requirements based on the nature of the she reports to work. If the carrier a carrier to conduct supplemental determines a flightcrew member is operation. The FAA has designed the operations under the flag rules. flight, duty and rest scheme proposed showing signs of fatigue, it may not Today’s proposal is designed to today to enhance flightcrew member allow the flightcrew member to fly. recognize the growing similarities alertness and mitigate fatigue. The Flightcrew members should be between the kinds of operations and the agency’s existing regulatory scheme cognizant of the appearance and universality of factors that lead to provides different rules for domestic behavior of fellow flightcrew members, fatigue in most individuals. Thus, the operations, flag operations, and including such signs of fatigue as proposal provides different supplemental operations. This slurred speech, droopy eyes, requests to requirements based on the time of day, hodgepodge of requirements developed repeat things, and attention to the length whether an individual is acclimated to over time to address changing business of time left in the duty period. If a a new time zone, and the likelihood of environments and advances in flightcrew member (or any other being able to sleep under different technology that allowed for longer employee) believes another flightcrew circumstances. If today’s proposal is periods of flight. Thus, in domestic member may be too tired to fly, he or adopted, the FAA expects that most part operations, flight time is essentially she would have to report his or her 121 operators will be required to make calculated based on time at the controls, concern to the appropriate management changes to their existing operations, and while in supplemental operations, the person, who would then be required to some will need to make more changes regulations contemplate restrictions determine whether the individual is than others. However, the FAA also based on ‘‘time aloft’’ since a flightcrew sufficiently alert to fly safely. believes that the proposal is sufficiently In addition, under today’s proposal, flexible to accommodate the vast carriers would need to develop and 16 A flightcrew member is a certified pilot or flight engineer assigned to duty aboard an aircraft majority of operations conducted today implement an internal evaluation and during a flight duty period. without imposing unreasonable costs. audit program to monitor whether

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flightcrew members are reporting to specialists, all specialists noted that training program, the certificate holder work fatigued. The FAA anticipates that people regularly underestimate their must, after notification, make any the program would look at both the level of fatigue, often to dangerous changes in the program that are deemed number of instances in which this levels. The ARC generally agreed that necessary by the Administrator. The happens as well as the reasons fatigue training was a good idea, and FAA anticipates that such changes contributing to the problem. The FAA is several members noted that such would be implemented through the aware of anecdotal reports of pilots training should extend to all agency’s OpSpecs as provided for in 14 flying when fatigued because they are ‘‘stakeholders’’, e.g., employees of the CFR 119.51, providing carriers with an short on sick leave, as well as instances certificate holder responsible both for opportunity to provide input and appeal when pilots have called in sick when scheduling and for safety of flight, rights. the true problem was fatigue. As part of rather than just flightcrew members. the internal audit, a carrier may need to The FAA agrees that flightcrew D. Flight Duty Period delve into the reasons flightcrew members do not bear sole responsibility There are numerous studies that members call in sick to make sure it is for making sure they are adequately generally address fatigue, as well as capturing accurately incidents of pilot rested and that they are not the only models 17 that have been developed. fatigue. It could choose to create a employees of the carrier who need to be The models predict fatigue-based separate fatigue category to mitigate the trained on the impact of fatigue on the performance degradation based on data risk of pilots calling in sick when in fact safety of flight. The agency is proposing input such as when a flight begins, how they are fatigued. to require fatigue training for each long it lasts, whether there is a rest A carrier would be required to take person involved with scheduling opportunity, and the local time of day steps to correct any fatigue problem that aircraft and crews, all crewmembers and at departure and landing. Only one of it identifies. For example, if the carrier management personnel. The FAA is these models has been validated in the became aware that flightcrew members proposing to require 5 hours of initial aviation context,18 although there is were commuting during their WOCL, training for all newly-hired, covered general validation in the railroad and the carrier could require that all employees prior to starting work in that motor carrier industries. The available flightcrew members spend the night capacity and 2 hours of annual, validations are not directly applicable to prior to starting a series of FDPs within recurrent training. This training would aviation because of the impact of the local commuting area. The carrier be approved through the agency’s relatively rapid movement within could also implement other measures to Operations Specifications (OpSpec) multiple time zones. address problems associated not only process. While there is ample science with commuting, but any behavior that The training curriculum would indicating that performance degrades could lead to flightcrew members address general fatigue and fatigue during windows of circadian low and reporting for FDPs unfit for duty. countermeasures along with the that regular sleep is necessary to sustain Several ARC members urged that following subject areas: performance, there is no evidence that these requirements be encapsulated in a • FAA regulatory requirements for flying multiple segments is more non-punitive fatigue policy. While the flight, duty and rest, and NTSB fatiguing than flying one or two FAA certainly supports such policies, it recommendations on fatigue segments per duty period. However, also recognizes that requiring carriers to management; multiple segments require more time on develop and implement non-punitive • The basics of fatigue, including task because there are more take-offs fatigue policies is challenging from a sleep fundamentals and circadian and landings, which are both the most regulatory perspective. Carriers are rhythms; task-intensive and the most safety- entitled to investigate the causes for an • The causes of fatigue, including critical stages of flight. Also, pilots employee’s fatigue. If a carrier medical conditions that may lead to appear to generally agree that flying determines that the flightcrew member fatigue; several legs during a single duty period was responsible for becoming fatigued, • The effect of fatigue on could be more fatiguing. it has every right to take steps to address performance; One approach to addressing fatigue is that behavior. To the extent the fatigue • Fatigue countermeasures, to link the length of duty directly may be a function of the carrier not prevention and mitigation; related to flight to the time of day and • following the regulatory requirements, The influence of lifestyle, including the number of legs that are scheduled to the FAA certainly would investigate and nutrition, exercise, and family life, on be flown. This approach recognizes the possibly initiate enforcement action. In fatigue; additional fatigue introduced by night- • addition, self-reporting could be Familiarity with sleep disorders time flying and by flying several legs, encapsulated in a carrier’s voluntary and their possible treatments; • with multiple take-offs and landings. As disclosure program under the FAA’s The impact of commuting on discussed earlier, the current regulatory Aviation Safety Action Program (ASAP), fatigue; • system in the United States provides which has certain non-punitive Flightcrew member responsibility variability based on whether a given provisions built into the program. for ensuring adequate rest and fitness for duty; and C. Fatigue Training • 17 Bio-mathematical modeling of fatigue and The effect of operating through and performance can assist in providing objective The FAA believes fatigue-based within multiple time zones. metrics, which are conspicuously lacking in fatigue training requirements are critical to In addition, the FAA recognizes that science. The rationale for modeling is that informing flightcrew members how their the study of fatigue and fatigue conditions that lead to fatigue are well known. A model simulates specific conditions and determines personal behavior can unwittingly lead mitigation is on-going. Changes may if fatigue could be present. Models can estimate to fatigue, and how to mitigate the risk need to be made to training programs degradations in performance and provide an of fatigue in an industry that does not even after approval by the FAA. estimate of schedule-induced fatigue risk that follow a traditional 9-to-5 work day. Accordingly, whenever the considers many dynamically changing and Administrator finds that revisions are interacting fatigue factors. Fatigue training is not currently 18 The SAFE model, developed by Mick Spencer required under any regulatory regime. In necessary for the continued adequacy of of the United Kingdom, has been validated in the the presentation to the ARC by the sleep an approved fatigue education and aviation context.

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operation is flown under domestic, flag considered FDP, as is simulator training and by EASA, although they could not or supplemental rules; but within each conducted during the same duty period agree on how conservative maximum category of operation there is little to no if prior to flying, regardless of whether FDPs should be. Tables A(1) and A(2) variability in permissible flight time there is a break. depict the two ranges of FDP discussed based on the particular operation. Under EU–OPS subpart Q, the by the ARC, with Table A(1) generally Other jurisdictions have largely maximum FDP is 13 hours, reduced at representing the labor position, and A(2) eliminated the concept of a uniform 30-minute increments per segment after generally representing the carriers’ flight time in favor of a variable FDP the second segment down to a 2-hour position. Both tables reduce the amount that encompasses flight time but also reduction. One-hour extensions are of FDP during the nighttime hours to includes other duties directly related to permitted, except when an FDP has address flying during one’s WOCL, and flight. An FDP is duty consisting of more than six segments, when no training required by the certificate extension is permitted. There is a more both reduce the amount of FDP once a holder’s approved flight training complicated formula that applies when flightcrew member has flown more than curriculum and qualification segment to encroaching on the WOCL. There are no four legs. Flightcrew members would be conducted in a simulator, flight more than two extensions during any 7- enter the table based on the time at their training device and aircraft training,19 as day period. Schedule robustness is home base (i.e., the city where they well as pre-flight deadheads 20 without addressed by requiring that actual regularly fly from) unless they have an intervening rest, and all duties from operations not exceed FDP more than 33 acclimated to a different time zone, at the time the flightcrew member is percent of the time (i.e., actual flights which point they would enter the table required to report for duty to fly until are within the FDP limits at least 67 based on local time. In addition, the the last movement of the aircraft. An percent of a scheduling season). A 2- FDP would be reduced by 30 minutes FDP begins when a crewmember is hour extension is permitted at the for unacclimated flightcrew members. required to report for duty that includes discretion of the entire crew for Extensions no greater than 2 hours a flight, series of flights, or positioning unforeseen circumstances. (possibly as many as 3 hours flights (including part 91 ferry flights) The pending EASA proposal on flight internationally or for augmented flights) and ends when the aircraft is parked duty and rest would adopt the same beyond a scheduled FDP would be after the last flight and there is no plan FDP concept as CAP–371 and EU–OPS allowed for circumstances beyond a subpart Q. Like those standards, the for further aircraft movement by the carrier’s control. The decision to extend maximum FDP is 13 hours unless a same crewmember. would rest on both the carrier and the Under the UK’s CAP–371 an FDP is mitigation strategy such as limited to no more than 13 hours under augmentation is adopted, and the FDP is pilot in command, although specific a minimum crew pairing, but may be reduced based on time of day and coordination might not be required in increased through augmentation or split number of legs flown. Unlike the CAP– every instance. In addition, there would duty rest, and is reduced based on flying 371, and similar to EU–OPS subpart Q, be limits on the number of times a crew in the WOCL or flying multiple legs. the EASA proposal contemplates that pairing could be extended in any 168- The minimum FDP is 9 hours, unless schedules that do not regularly meet the hour period, with discussion of whether flying multiple night-time operations, maximum-allowable FDP will be that limit should be once or twice, but when FDP is reduced to 8 hours. A pilot changed. The CAP–371 merely requires general agreement that it should not be in command may extend the FDP up to a pilot in command to report when the allowed on consecutive days. A 3 hours due to unforeseen FDP is exceeded. flightcrew member could not continue circumstances. Any duty immediately The ARC members generally agreed an FDP beyond the extension except preceding flight check-in is also with the approach adopted in CAP–371 under emergency circumstances.

TABLE A(1)—FLIGHT DUTY PERIOD: UN-AUGMENTED OPERATIONS

Time of start Maximum flight duty period (hours) (Home base or for lineholders based on number of flight segments acclimated) 1 2 3 4 5 6 7+

0000–0359 ...... 9 9 9 9 9 9 9 0400–0459 ...... 10 10 9 9 9 9 9 0500–0559 ...... 11 11 11 11 10 9.5 9 0600–0659 ...... 12 12 12 12 11.5 11 10.5 0700–1259 ...... 13 13 13 13 12.5 12 11 1300–1659 ...... 12 12 12 12 11.5 11 10.5 1700–2159 ...... 11 11 10 10 9.5 9 9 2200–2259 ...... 10.5 10.5 9.5 9.5 9 9 9 2300–2359 ...... 9.5 9.5 9 9 9 9 9

19 Training conducted in accordance with the 20 Deadhead transportation means transportation excluding transportation to or from a suitable certificate holder’s approved ground training of a crewmember as a passenger, by air or surface accommodation. program would be considered duty outside of an transportation, as required by a certificate holder, FDP.

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TABLE A(2)—FLIGHT DUTY PERIOD: UN-AUGMENTED OPERATIONS

Maximum flight duty period (hours) Time of start for lineholders based on number of flight segments (Home base) 1 2 3 4 5 6 7+

0000–0159 ...... 9 9 9 9 9 9 9 0200–0459 ...... 10 10 10 10 9 9 9 0500–0659 ...... 12 12 12 12 11.5 11 10.5 0700–1259 ...... 13 13 13 13 12.5 12 11.5 1300–1659 ...... 12 12 12 12 11.5 11 10.5 1700–2159 ...... 11 11 11 11 9 9 9 2200–2259 ...... 10.5 10.5 10.5 10.5 9 9 9 2300–2359 ...... 9.5 9.5 9.5 9.5 9 9 9

In order to assure that the extensions single weekly extension that could be as directly related to the safe operation of are not abused and that carriers are small as five or ten minutes is flight, the FAA believes there is no need creating schedules contemplating unreasonable. However, the extensions to reduce the current implied daily duty circumstances that may be beyond their are intended to address unforeseeable limit of 16 hours in un-augmented control, but that are reasonably circumstances beyond the carrier’s operations, as long as those duties do foreseeable (e.g., seasonal weather control. Such circumstances should be not introduce the potential for fatigue trends, planned runway construction, of sufficiently short duration that the during flight. chronically-delayed airports or carrier could not reasonably make The reduction in maximum FDP markets), a carrier would provide the schedule adjustments. Thus, while the during nighttime hours is broadly FAA with scheduled FDPs for all its FAA contemplates that adverse weather supported by existing sleep science. crew pairings and the actual FDPs, could fit within the criteria because it is Although not addressed by sleep including any extensions, on a regular beyond the control of the certificate studies, the FAA has also tentatively basis. Some argued this cycle should be holder, it would not always be decided to reduce the amount of as little as once a month, while others considered unforeseeable. Carriers available FDP depending on the number argued a quarterly reporting cycle was should anticipate thunderstorms in of legs flown (flight segments) because sufficient. Should the carriers’ actual many parts of the United States during of a general agreement among the ARC FDPs fail to meet the scheduled FDP too the summer months. Likewise, heavy members and FAA staff previously many times during the reporting cycle, snow in the northern parts of the employed as pilots by commercial air they would be required to change the country should be anticipated during carriers that multiple take-offs and scheduled FDPs to more realistic levels. the winter, and the jet stream follows landings are more fatiguing. Much of the The ARC agreed that 95 percent of a basic seasonal patterns. By the same available science is based on laboratory carrier’s schedules would need to fall token, carriers are not responsible for air studies, with exceptionally limited within the maximum FDP depicted in traffic delays; however, if they are validation in the aviation context; Table A(1) or A(2). In order to identify operating out of chronically delayed accordingly, the FAA has tentatively specific crew pairings that were airports, air traffic delays are clearly decided to rely on the experience of problematic, each crew pairing would foreseeable. To the extent even small these individuals rather than assuming need to fall within the limits in the extensions are regularly occurring, the no adverse impact on safety. The FAA tables for a lesser percentage of the time, schedule reliability requirements is not proposing to make any somewhere between 70 percent and 85 discussed by the ARC should require adjustments for the first four flight percent. schedule adjustments, even when segments based on this same The FAA has decided to propose the encroachments beyond the times in the experience. The linear reduction more conservative FDPs depicted in FDP table are very small. contemplated in the EASA regulations Table A(1), with a 2-hour extension for The FAA recognizes that adopting the (which is used for multiple purposes) unforeseeable circumstances beyond the numbers in Table A(1) is a conservative appears to have more to do with carrier’s control permitted once in a approach. The FAA has decided to regulatory simplicity than with any 168-hour period.21 Since the entire propose the more conservative numbers actual experience or science. flightcrew is impacted by the extension, because it has little experience with this As recommended by the ARC, a only one flightcrew member needs to type of regulatory regime. However, the flightcrew member would enter the FDP have utilized the extension in the numbers contemplated under both table based on home base time, unless previous 168 hours for it to no longer be tables are very similar, and the FAA is acclimated to a different time zone. available. open to arguments that a more Thus, if a flightcrew member ordinarily If the extension is less than 30 expansive FDP is merited. The agency flies out of Chicago, the flightcrew minutes, the FAA anticipates permitting also recognizes that upon completion of member would enter an FDP as though multiple extensions during the 168-hour an FDP, a flightcrew member could be he or she were in Chicago, regardless of period. The FAA has tentatively assigned other duties as long as he or where he or she is physically located.22 determined that short incursions into she is provided with a required rest the permissible extension are unlikely opportunity prior to commencing his or 22 Some carriers have moved to virtual home to be fatiguing given the other her next FDP. The underlying premise bases, or have no home base. This is most common requirements of today’s proposal and of today’s proposal is to ensure among supplemental operators. In those instances, flightcrew members are adequately the proposal contemplates that the carrier would that limiting a flightcrew member to a name a home base somewhere within the rested during the time they are continental United States, and that home base 21 A 3-hour extension would be allowed for responsible for the operation of aircraft. would be considered the flightcrew member’s home augmented operations. To the extent other duties are not base.

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A 10 a.m. crew pairing out of Heathrow address specific questions, along with acclimates to time zones when flying would be treated as if it commenced at any other matters they consider long range operations. They stated that 4 a.m., because of the 6-hour time relevant. We are particularly interested having sleep opportunities during a difference between Chicago and in receiving recommendations that physiological night is the most London. If the operation requires the would provide the same or better important fatigue mitigation strategy for flightcrew member to cross more than protection against the problems of global travel. They also noted that an four time zones, he or she would be fatigue at lower cost. We may individual attempting to acclimate to a considered unacclimated, and there incorporate any such recommendation new time zone will adjust his or her would be a 30-minute reduction in the in a Final Rule in this proceeding. clock approximately 1 hour per day for maximum FDP. With that in mind, the FAA seeks each hour of time zone difference. The The FAA has also decided to propose comment on the following: ARC members noted that based on their the reporting requirements discussed by (1) Please comment on adopting collective personal experience, one the ARC to assure realistic scheduling. maximum FDPs. Should the maximum could acclimate much more quickly if The agency has tentatively decided that FDP vary based on time of day? Should one managed his or her sleep reports be filed with the FAA every two it vary based on the number of opportunity appropriately. The sleep months. The ARC discussed a range of scheduled flight segments? Should the specialists also noted that even if an one to three months. The FAA believes proposed limits be modified up or individual consciously decided not to a monthly reporting requirement could down, and to what degree? Please acclimate to a new time zone, given be excessively burdensome to both the provide supporting data. enough time, the individual would certificate holders and the FAA. By the (2) Please comment on permitting begin to acclimate anyway because of same token, if the reporting interval is flightcrew members and carriers to the differences in exposure to daylight. too long, carriers may avoid addressing operate beyond a scheduled FDP. Is the The ARC discussed various common delay scenarios, simply proposed 2-hour extension appropriate? approaches to determine whether a waiting them out. Is the restriction on a single occurrence flightcrew member is acclimated before Under today’s proposal, carriers must beyond 30 minutes in a 168-hour period accepting an assignment for an FDP. first demonstrate that 100 percent of the appropriate? Should a flightcrew The ARC originally defined the un- scheduled crew pairings fall within the member be restricted to a single acclimated condition as flying across limits in the FDP table. Actual system- occurrence regardless of the length of five or more time zones.23 Moving wide FDPs should not exceed the the extension? Please provide beyond these constraints would qualify maximum levels in the FDP table more supporting data. as moving into a new theater of than five percent of the time. Each crew (3) Please comment on the proposed operations. The ARC members agreed pairing would need to fall within the schedule reliability reporting that the continental United States FDP table 80 percent of the time. The requirements. Should carriers be should constitute a single theater so that agency believes a 20 percent variation required to report on crew pairings that a flightcrew member would always be for a specific crew pairing provides exceed the scheduled FDP, but not the acclimated when flying domestically. carriers with sufficient flexibility to maximum FDP listed in the FDP table? The ARC concluded that to reset from address multiple yet small excursions (4) Should carriers be required to an un-acclimated condition to an beyond the FDP table, while still forcing report on more parameters, such as acclimated condition a flightcrew the carriers to recognize when a cumulative duty hours or daily flight member would require either three particular crew pairing is problematic. time? If so, why? consecutive physiological night’s rest,24 Because no flightcrew member may (5) What should be the interval during which period the flightcrew exceed the limits in the FDP table between reporting requirements? member could fly, or a 30 to 36 hour beyond 30 minutes more than once in (6) How long after discovering a layover rest period. Some ARC members any 168-hour period, the FAA does not problematic crew pairing should the noted that a flightcrew member could be believe a 20 percent variation will result carrier be afforded to correct the on duty during the period encompassing in any immediate adverse safety scheduling problem? 3 local nights, but not during local situation. E. Acclimating to a New Time Zone nighttime hours. Should any of the three proposed As noted previously, sleep science Unlike other forms of transportation, reporting requirements be exceeded, a has not been validated in the aviation where an individual moves gradually carrier would be required to readjust the context. The members of the ARC problematic crew pairings to more through multiple time zones over the universally rejected the premise that it realistic schedules. These adjustments, course of the day, the nature of aviation would take between six and 9 days to which could be seasonal in nature, allows an individual to traverse several acclimate to a European time zone. The would be on-going and would apply to time zones over a relatively short period FAA is inclined to agree with the ARC subsequent years. To the extent a carrier of time. This phenomenon exposes members’ experience, especially given could immediately implement measures flightcrew members to a greater sense of the limited scientific information to improve schedule fidelity, it should disorientation or jet lag than employees specific to aviation. The FAA also do so. However, the ability of carriers to in other forms of transportation. For recognizes that assuring that length of immediately address the scheduling trips with short turn around times, a time to acclimate to a new theater is issue is difficult to evaluate without flightcrew member likely would not impractical in the aviation context. understanding the impact of published acclimate, and would simply enter the schedules on resolving the problem. The FDP table based on his or her home base 23 In some areas of the world, time zones change FAA has notionally proposed that time. However, flightcrew members in one half hour increments rather than one hour changes be made within 60 days, but it remaining in a new theater for longer increments. Accordingly, one would have to is interested in better understanding the periods of time may need to acclimate experience a time change of at least four hours as impact of such a requirement on to the new theater. well as five time zones. 24 Physiological night’s rest means the rest occurs carriers’ schedules. During the question and answer between the hours of 0100 and 0700 local time. Below, and throughout this session with ARC members, the sleep This definition assures an opportunity to sleep document, we invite commenters to specialists explained how an individual during the WOCL.

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The FAA proposes to permit a carrier current regulation, which requires a flipping a flightcrew member’s internal to adjust where the flightcrew member flightcrew member who exceeds 12 clock, particularly when conducting enters the FDP as an acclimated crew flight hours to receive twice the amount operations that are on the cusp of member if the individual has been in a of rest upon return to home base. requiring an additional flightcrew new theater of operations for 72 hours The ARC members also discussed the member. impact of multiple consecutive round- or has been given at least 36 consecutive The FAA requests comments on the hours free from duty. Remaining in the trip flights where flightcrew members following: same theater for 72 hours allows for would fly consecutive flights to an three physiological night’s rest. A 36 international destination, lay over for a (7) Is a 3-day adjustment to a new consecutive hour break in duty does not day, and then return to the home base theater of operations sufficient for an allow for the same amount of rest, but (e.g., Houston, Texas, to Paris, France, individual to acclimate to the new allows the individual to structure the and return to Houston).25 These types of theater? available rest opportunity in a manner pairings are common, with a flightcrew (8) Is a 36-hour break from duty that best suits his or her personal sleep member potentially flying three sufficient for an individual to acclimate patterns. The FAA is not proposing to roundtrips in a week. The concern was to a new theater? stipulate that an unacclimated that these types of flights will typically flightcrew member will only become have layovers from 20 to 28 hours. The (9) Should flightcrew members be acclimated when continuing to fly length of the layovers is primarily based given a longer rest period when within a new theater as long as that on scheduling concerns. returning to home base than would flightcrew member does not fly at night. The length of the layover does not otherwise be provided based on moving This strikes the agency as an initially appear problematic, to a new theater? unnecessary constraint. particularly in light of the current (10) Should the FAA have different While the continental United States is regulations which only require one 24- requirements for flightcrew members considered a single theater, operations hour break in duty in a 7-day period. who have been away from their home from one part of the United States could However, when the flights are base for more than 168 hours? If so, trigger the need to acclimate sooner than particularly long, a layover of why? operations from another part of the approximately 24 hours becomes a United States. Thus, a flight from New problem because the flightcrew member (11) Should the FAA require York to Hawaii could trigger a need to is constantly flipping his or her internal additional rest opportunities for acclimate in Hawaii, while a flight from clock. When one runs the scenario multiple pairings between two time Los Angeles to Hawaii would not. through the SAFTE/FAST model with a zones that have approximately 24-hour The ARC discussed the amount of rest three-person augmented crew, the layovers at each destination? What if the needed for flightcrew members flightcrew member reaches high fatigue scheduled FDPs are well within the returning to their home base after limits during the second round-trip maxima in the applicable FDP table or becoming acclimated in another theater. flight and is dangerously fatigued augmentation table? The ARC members noted that the during the third round-trip flight. F. Daily Flight Time Restrictions flightcrew member is not truly However, when the flights are not acclimated to the new theater but also particularly long flights, flightcrew Initial ARC discussion of FDPs is no longer acclimated to his or her members appear to have no problem assumed that, as is the case in CAP–371 home base. Ultimately, the ARC flying three roundtrip flights, even with and the EASA regulations, there would members agreed that a flightcrew the 24-hour layovers. be no daily limit on flight time. Instead member must always find at least 30 to The ARC developed a draft regulatory flight time would effectively be limited 36 continuous hours free of duty in any proposal to address operations so long to approximately 2 hours less than the 168 consecutive hours and that once a that they almost trigger a fourth FDP because FDP assumes a flightcrew flightcrew member is given this rest, the flightcrew member. Under that member will report for duty an hour and flightcrew member is considered proposal, if the flight assignment is for a half before flying and will spend acclimated to local time. Based on this a three pilot flight crew and the layover approximately 30 minutes after discussion, the FAA has decided against is between 20 and 28 consecutive hours completing all flying for the day imposing any unique restrictions on a and the two FDPs, separated by the completing paperwork. In that context, flightcrew member simply because he or layover rest, are greater than 22 to 24 the maximum amount of time flying she has returned to his or her home hours, then the flight crew requires two during the middle of the day could base. Acclimation to a home base is physiological night’s rest or one increase from the current 8 hours to as treated the same as any other physiological night’s rest with an 8-hour much as 11 hours, almost a 50 percent acclimation to a new theater. restriction on the next FDP. increase. The ARC noted that the FAA However, the FAA is proposing to Upon reflection, the FAA has decided may decide that daily limits on flight require a greater rest opportunity when that the ARC proposal is unduly a flightcrew member has been away time are still needed and proposed a complicated and only addresses a small variable flight time based on the hour of from his or her home base for more than number of potential operations. The 168 hours. In this instance, the FAA the day. Tables B(1) and B(2) represent agency has decided against proposing it. potentially acceptable flight time proposes to require a rest period that However, as part of the required training includes 3 physiological nights, rather limitations within FDPs. Table B(1) program proposed today, carriers should generally represents the position of the than 36 hours free from duty or be educated on the risks associated with permitting the flightcrew member to fly carriers, while Table B(2) generally represents the position of labor.26 during that approximately 72-hour 25 These pairings do not always involve a return period. This decision is based on the to a home base, but could be a return to another ARC members’ consideration of the city within the time zone for or adjacent to the 26 Some carriers argued that no limit should be flightcrew member’s home base. They can also placed on flight time and some labor amount of rest being dependent on how occur when the flightcrew member has adjusted to representatives argued that the maximum limit long the flightcrew member was away a new theater and an airport within that theater should be variable, but should never exceed eight from home base. The ARC reviewed the effectively becomes the home base. hours.

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TABLE B(1)—MAXIMUM FLIGHT TIME TABLE B(2)—MAXIMUM FLIGHT TIME particular operation was a domestic LIMITS LIMITS operation or an international operation. The numbers proposed by the CAA are Maximum flight Maximum flight presented in Tables B(3) and B(4). Time of start Time of start time (home base) time (home base) (hours) (hours) TABLE B(3)—MAXIMUM FLIGHT TIME IMITS OMESTIC LL ARGO 0000–0159 ...... 7 0000–0459 ...... 7 L , D A -C 0200–0459 ...... 8 0500–0659 ...... 8 Time of Maximum Maximum 0500–0659 ...... 10 0700–1259 ...... 9 1300–1959 ...... 8 start flight time flight time 0700–1259 ...... 11 2000–2359 ...... 7 (home (hours) (hours) 1300–1659 ...... 10 base) 1–4 sectors 5+ sectors 1700–2159 ...... 9 In addition, the CAA presented an 0000–0459 8 7 2200–2259 ...... 8 .5 alternate regulatory approach, whereby 0500–1459 11 9 2300–2359 ...... 7 .5 flight time limits for all-cargo operations 1500–1659 10 8 would be more expansive and would 1700–2359 8 7 differ dependent on whether the

TABLE B(4)—MAXIMUM FLIGHT TIME LIMITS, INTERNATIONAL ALL-CARGO

Maximum Maximum flight time flight time (2 pilot, (2 pilot) 1 engineer)

Flight time includes WOCL ...... 8 12 Flight time does not include WOCL ...... 10 12

The FAA has decided to propose a particularly during daytime hours when lower than proposed? Please provide variation of the more conservative the flightcrew had an opportunity to data supporting the answer. maximum daily flight time limits for sleep through their WOCL the previous (14) Should modifications be made to unaugmented operations in Table B(2). night. the proposed flight time limits to The agency proposes to extend the The FAA also recognizes that daily recognize the relationship between number of hours reflected in Table B(2) flight time limits will have the greatest realistic flight time limits and the by one hour. This approach melds the impact on crew pairings that consist of number of flight segments in an FDP? different approaches in Tables B(1) and a single leg. This is because when flying G. Mitigation Strategies B(2), allowing for slightly higher flight multiple segments, more of the FDP will time limits during early morning and be spent on layovers. Thus, for a single 1. Augmentation daytime hours than are currently segment pairing, almost all of the FDP Even with the variable FDP and flight allowed, but not permitting extensions will consist of flight time, while for a time, there will continue to be a need to that, at some hours, come close to a 50 pairing with three or four legs, much of augment crews for longer flights. percent increase over the current limits. the FDP will not consist of flight time. Ideally, augmentation should follow the Because current unaugmented As a carrier adds legs, the FDP becomes same approach as FDP, i.e., circadian operations are limited to 8 hours, the more of a constraint than the flight time rhythms, acclimation to time changes, FAA’s ability to evaluate the impact of limit. and multiple flight segments should be significantly longer flight time limits on The FAA has decided against considered in determining how much aviation safety is limited. Accordingly, proposing special rules for all-cargo augmentation is required. Further the FAA believes it is appropriate to operations because there are no consideration should be given to the propose overall limits that are more physiological differences between pilots quality of the available rest facility. conservative than those depicted in who fly cargo planes and pilots who fly Essentially, the current regulations Tables B(1), B(3) and B(4). passenger planes. As noted before, the require augmentation beyond 8 hours of The FAA recognizes that it has FAA believes the distinctions between scheduled flight time. Under the FAA’s allowed up to 12 hours of flight time in domestic and international operations flag and supplemental rules, circumstances that it has considered are largely irrelevant. To the extent they augmentation permits the following augmented operations, even though the are truly distinct (generally due to the increases in flight time above the 8-hour third flightcrew member is not able to length of the trip), those differences are limitation contemplated under the 27 fly the plane. This has occurred in better addressed through augmentation agency’s domestic rules: • If there are three flightcrew supplemental and flag operations when rather than simply by extending the members (one of whom may be an the flightcrew consists of two pilots and allowable flight time. Augmentation is engineer), maximum flight time is a flight engineer, and was more common discussed in greater detail in the next extended to 12 hours. There is no when the fleet of aircraft requiring flight section. requirement for a rest facility. engineers was larger. Accordingly, this The FAA seeks comment on the • If there are four pilots (or three data set is much smaller than the set following: pilots and two flight engineers), based on the 8-hour domestic limitation. (12) If the FAA adopts variable FDP maximum flight time is extended to 16 Nevertheless, based on the safety history limits, is there a continued need for daily flight time limits? of these operations, it may be possible 27 Because the domestic rules do not allow for any to demonstrate that longer flight time (13) If the FAA retains daily flight extension of flight time, augmentation is not used limits will not adversely affect safety, time limits, should they be higher or domestically.

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hours. There must be an FAA-approved • When extending the FDP with an The ARC noted that both the TNO rest facility on board the aircraft augmented flightcrew, augmented Report and CAP–371, to varying (generally a bunk). flightcrew members are presented with degrees, assign value to in-flight rest • There are no hard constraints on an opportunity for in-flight sleep, opportunities that depend on the quality flight time that exceeds 16 hours. however the flightcrew members must of the rest facility available on the Instead, the FAA has addressed the take advantage of this sleep opportunity aircraft. The ARC determined that there carriers’ fatigue mitigation practices on because augmentation is of no value if are approximately 20 different a case-by-case basis. the entire flightcrew is awake. combinations of facilities among various The FAA believes that its current • The value of augmented flightcrew certificate holders. The ARC members approach to augmentation fails to operations depends on the available developed a rating system dependent on consider several pertinent factors. It sleep facility, with a quiet, flat bunk the ability to lie in a horizontal, flat fails to adequately consider the being the most desirable. position; control the amount of light and • qualifications of all of the flightcrew In-flight sleep has restorative value, noise; and rest in a temperature- members, giving credit for individuals and the flatter one is able to lie, the controlled environment; as well as the who are not qualified to operate the more beneficial the sleep.28 flightcrew member’s time off task. • controls; it fails to consider the varying To divide in-flight duty and rest Depending on the amount of points quality of sleep facilities below a 12- among the flightcrew appropriately, assigned to these areas, the amount of hour flight time limit; it fails to route guides for positioning of sleep credit for receiving rest in a type of seat recognize that, provided an opportunity should be developed for augmented could be calculated. The ARC members for sleep is provided, some domestic flightcrews (i.e., not all crewmembers suggested a Type I, II, and III scheme, operations could benefit from need to be provided for equal sleep resulting in the following classes of augmentation; and, as is the case opportunities; rather pilots responsible sleep facilities: generally with the agency’s flight and for more complicated duties such as • Class 1 rest facility: A bunk or other duty regulations, it fails to consider the take-offs and landings may need more of surface that allows for a flat sleeping impact of circadian rhythms. a sleep opportunity, and may need that position, is separated from both the The FAA proposes to amend the opportunity at a more ideal time in the flight deck and passenger cabin to existing regulations by varying the flight). provide isolation from noise and levels of augmentation credit depending In establishing the maximum disturbance and provides controls for on the quality of the rest facility, except scheduled FDP limitations for an light and temperature. that no credit would be given for rest in augmented flightcrew, the ARC • Class 2 rest facility: A seat in an coach seats. The level of extensions discussed the relative merits and safety aircraft cabin that allows for a flat or would also vary based on when the of operations conducted with near flat sleeping position (around 80 flight takes place to account for augmented flightcrews receiving in- degrees from the seat’s vertical circadian rhythms and whether the flight rest, as compared to centerline),29 is separated from flight crew is acclimated. Domestic conventionally scheduled operations. passengers by a minimum of a curtain augmentation would be permitted if a The ARC noted that the type of rest to provide darkness and some sound sufficient rest opportunity is provided. facility needs to be addressed in the mitigation, and is reasonably free from Finally, all flightcrew members would proposed rule and in advisory material. disturbance by passengers and/or The most comprehensive evaluation have to be type-rated as a second-in- flightcrew members. of available sleep facilities was command (SIC) or pilot-in-command • Class 3 rest facility: A seat in an conducted by the Dutch government in (PIC) and throughout the flight at least aircraft cabin or flight deck that reclines 2007 to provide science-based advice on one crewmember on the flightdeck at least 40 degrees, provides leg and foot the maximum permissible extension of would have to be type-rated as a PIC. support, and is not located in the coach the FDP related to the quality of the The FAA would also continue to permit or economy section of a passenger available onboard rest facility and the extensions in flight time based on the aircraft. augmentation of the flightcrew with one number of flightcrew members, with Accordingly, the ARC revised the or two pilots. Extension of Flying Duty greater credit given for four-man sleep credit for the class rest facility to Period by In-flight Relief (July 29, 2007) flightcrews than for three-man crews. more closely align the percentages with (TNO Report). The TNO report The FAA believes this approach will the TNO Report recommendations as benchmarked existing research in provide carriers with a significant follows: arriving at its recommended values. The • amount of flexibility. Should the carrier Class 1: 75 percent. TNO report evaluated the quality of • decide not to invest in superior rest Class 2: 56 percent. existing sleep facilities to determine • facilities, it could opt to provide a lesser Class 3: 25 percent. how much sleep a flightcrew member • 30 quality rest facility and add additional, No credit for coach seats. could reasonably expect to get. The qualified flightcrew members to extend The ARC determined that evaluation ranged from coach seats (a the augmentation period. augmentation should be required when class IV rest facility) to bunks that were The FAA’s proposal is largely based either the maximum scheduled FDP or isolated from the rest of the crew and on the general recommendation of the flight time hour limit depicted in Tables passengers (a class I rest facility). Based ARC. In reaching its conclusions, the A and B of this document is insufficient on the quality of the facility, the TNO ARC members reviewed the scientific for the planned operation. The ARC Report assigned different values that material regarding augmentation that considered that longer flights crossing would allow for an extension of the was presented during its meetings. multiple time zones or overnight flights FDP. Based on its research, TNO Following are key points made by the could be better indicators of the need to decided against giving any credit for sleep specialists during their augment than flight times. For example, class IV rest facilities. presentations. • 29 This constraint would likely keep the rest In-flight naps with augmented 28 Sitting up increases blood flow to the brain and facility out of the coach or economy section of the flightcrews are dramatically helpful in causes emission of norephrenephrine, which is aircraft. mitigating sleep debt. stimulative instead of relaxing. 30 CAA would give partial credit for coach seats.

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an 8-hour, 45-minute flight during the proposed that any planned pairing with The ARC developed Table C, which day could be safely operated by an un- greater than 6.5 block hours where the combines the limits from the first (single augmented flightcrew, but a 7-hour, 30- FDP infringes on the normal sleep cycle flight segment) column of the proposed minute overnight flight should perhaps require augmentation. FDP table (Table A) with principles be augmented. One ARC member from the TNO Report.

TABLE C—FLIGHT DUTY PERIOD: ACCLIMATED AUGMENTED FLIGHTCREW

Maximum flight duty period (hours and minutes) based on rest facility and number of pilots Time of start (home base) Class 1 rest facility Class 2 rest facility Class 3 rest facility 3 pilots 4 pilots 3 pilots 4 pilots 3 pilots 4 pilots

0000–0559 ...... 13:50 16:05 12:55 14:20 11:45 12:15 0600–0659 ...... 15:10 17:40 14:10 15:40 12:55 13:25 0700–1259 ...... 16:30 19:20 15:25 17:05 14 14:30 1300–1659 ...... 15:10 17:40 14:10 15:40 12:50 13:20 1700–2359 ...... 13:50 16:05 12:55 14:20 11:45 12:15

The ARC discussed placing an beyond Table C, and then only when the which operate under different demands absolute cap of 16 or 18 hours (for a highest quality rest facility is provided. and circumstances, might approach three- or four-man flightcrew, The ARC stated that its prescriptive augmentation and fatigue differently respectively) on the FDP, even though approach could apply to most than other types of operations. the TNO Report scheme results in a operations, but certificate holders The maximum scheduled FDP higher FDP. The ARC determined that engaged in ultra-long range operations limitations for augmented flightcrew higher FDPs could be achieved only by could use an FRMS to develop an use of an FRMS. Under such a alternate means of fatigue mitigation member operations with an constraint, only augmented operations tailored to their specific operations. The unacclimated flightcrew are set forth in commencing between the hours of 7 ARC members noted that some types of Table D. a.m. and 1 p.m. would be constrained operations, such as air cargo operations,

TABLE D—FLIGHT DUTY PERIOD: UNACCLIMATED AUGMENTED FLIGHTCREW

Maximum flight duty period (hours and minutes) based on rest facility and number of pilots Time of start (home base) Class 1 rest facility Class 2 rest facility Class 3 rest facility 3 pilot 4 pilot 3 pilot 4 pilot 3 pilot 4 pilot

0000–0559 ...... 13:15 15:20 12:20 13:35 11:15 11:45 0600–0659 ...... 14:30 17 13:35 15 12:15 12:50 0700–1259 ...... 15:50 18:30 14:50 16:25 13:30 14 1300–1659 ...... 14:30 17 13:35 15 12:20 12:45 1700–2359 ...... 13:15 15:20 12:20 13:35 11:15 11:40

The ARC calculated the maximum is not proposing to implement Table D permitted to address those flights that scheduled FDPs in Table D for into the regulatory text because it is could not reasonably be conducted augmented flightcrew members who are essentially a thirty minute reduction within the existing rules at that time not acclimated based on the same from Table C. Rather, the regulatory text because the distances involved methodology provided for acclimated specifies that the numbers in Table C prevented long layovers or crew swaps. flightcrew members in Table C above. are reduced by 30 minutes if a crew is This issue was particularly relevant to However, for unacclimated flightcrew not acclimated. This approach is the discussion of whether augmentation members there is a roughly 30-minute consistent with the one proposed for un- should be used for domestic operations. reduction in the planned maximum FDP augmented operations. The primary concern related to multi- for augmentation calculation. The The ARC noted that augmentation segment augmented flights was the absolute cap of 16 and 18 hours would should be used strictly for long flights available sleep opportunity for correspondingly be reduced to 15.5 and and not to extend the FDP for multiple flightcrew members. Everyone 17.5 hours, respectively. short flight segments. The ARC acknowledged that flightcrew members The FAA has decided to propose the discussed whether more than two flight are not going to sleep during take-off augmentation levels proposed by the segments should be permitted in and landing. Accordingly, flight ARC in Table C, except that the augmented flight operations and, if so, segments need to be sufficiently long to numbers have been rounded up or down should an FRMS be required to do so. permit the flightcrew members to to the closest half hour for regulatory Some members of the ARC cautioned actually sleep. The ARC agreed that a efficiency. As suggested by the ARC, that augmentation should not be flightcrew member assigned to a multi- acclimated operations are capped at 16 permitted to facilitate unnecessary segment trip needs a specific amount of hours if only a three-man crew is additional flight segments or eliminate available time to rest to fly the multiple available and 18 hours if a four-man crew swaps. These individuals argued crew is available. In addition, the FAA that augmentation was initially segments.

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The FAA agrees that short flight (16) Should flight time be limited to than 8 hours of continuous sleep during segments will not permit a flightcrew 16 hours maximum within an FDP, the day. However, the larger portion of member to sleep. Thus, too many flight regardless of the number of flightcrew split sleep ideally would fall during the segments, even within an extended FDP, members aboard the aircraft, unless a WOCL, and they reiterated that split would not allow a meaningful sleep carrier has an approved FRMS? sleep with a component at night is opportunity for the flightcrew. The FAA (17) Should some level of credit be better than consolidated sleep during is proposing that a certificate holder not given for in-flight rest in a coach seat? the day. This is because the ability to schedule an augmented crew pairing If so, what level of credit should be sleep effectively is diminished during with more than three segments allowed? Please provide supporting daytime hours because it is very (including FDPs that include required data. difficult to get continuous sleep during technical stops such as stopping for fuel (18) Is there any reason to prohibit this time. They also stressed that actual or to clear customs). In addition, two augmentation on domestic flights sleep is important, and noted that a 4- consecutive hours must be available for assuming the flight meets the required hour sleep opportunity may only net 2 in-flight rest for the flightcrew member in-flight rest periods proposed today? hours of actual sleep.32 manipulating the controls during (19) Are the proposed required rest The ARC discussed extending the landing; a 90-minute consecutive period periods appropriate? FDP based on the opportunity for sleep must be available for in-flight rest for (20) Should credit be allowed if a during the duty period and the flightcrew member is not type-rated and each flightcrew member; and the last mitigations needed to extend the FDP. qualified as a PIC or SIC? flight segment must provide a two These mitigations would apply to split consecutive hour rest period. The 2. Split Duty Rest duty trip pairings (including continuous proposed requirement for the 2-hour The concept of allowing mitigation for duty overnights, also known as CDOs), rest opportunity on the last flight split duty sleep is similar to that for in which a flightcrew member has a segment is designed to address a augmentation, in that a crewmember downtime of several hours between common recognition among the ARC can regenerate to some extent because of flights within the same FDP. members that, even on a flight with only the ability to sleep for a period of time Some members of the ARC rejected two segments, the last segment is often during his or her FDP. In fact, the the concept of a regulatory credit for of such duration that there is no realistic quality of the sleep facility may be split duty sleep, while others noted that rest opportunity, even though this is significantly better than the quality of a it is fully consistent with the concept of when the crew is likely to be the most sleep facility aboard an aircraft. extending FDPs based on augmentation. fatigued. However, the initial theory behind The ARC considered allowing a The ARC discussed the qualifications augmentation was that it was impossible certificate holder to extend the FDP up of the relief flightcrew member used in to simply place a fresh crew aboard the to 50 to 75 percent of time that a augmented operations. Some ARC aircraft. While that may be true in some flightcrew member spent resting in a members emphasized that there must be instances where split duty rest is suitable accommodation up to a one type-rated flightcrew member on contemplated, it is not universally true. maximum FDP of 12 to 13 hours as long the flight deck at all times. One ARC In any case, current regulations provide as certain conditions were met. First, member noted that current regulations no incentive for a carrier to provide its the sleep facility should be a single require only one type-rated flightcrew flightcrew members with a rest occupancy, temperature-controlled member on the aircraft. Another ARC opportunity outside of the mandatory facility with sound mitigations that member stated that under no rest requirements. Nevertheless, some provide a flightcrew member with the circumstances should a flight engineer carriers have spent considerable undisturbed ability to sleep in a bed and serve as a relief flightcrew member. The amounts of money developing rest to control light. Second, the flightcrew ARC proposed that at least one facilities for their employees, and others member must be given an actual, not flightcrew member type-rated in the provide hotel rooms, even though not simply scheduled, sleep opportunity in aircraft be on the flight deck at all times. required by the FAA. Carriers have the suitable accommodation. Some ARC The ARC largely deferred to the FAA in taken these steps recognizing that, even members also suggested that there deciding whether to allow augmentation though not required, providing the rest should be a requirement that the sleep based on the presence of a flight facilities increases the level of safety. facility be approved by the FAA, there engineer. The ARC discussed the concept of be an employee feedback process to As mentioned earlier in this section, split sleep with the sleep specialists to assure the facilities were adequate, and the FAA does not believe a flight assess the value of the type of rest that the opportunity for rest coincide engineer may serve as a relief flightcrew obtained on a split duty trip. The with the flightcrew member’s circadian member unless he or she is qualified as scientists noted that split sleep is an rhythms. a PIC or SIC and type rated. The area of intensive work. All other factors The FAA is proposing to permit credit purpose of a relief flightcrew member is being equal, if the total amount of actual for split duty sleep consistent with the to have someone available to help fly sleep is the same, split sleep is proposal presented by those members of the airplane when another flightcrew theoretically as valuable as continuous the ARC supporting credit. A reasonable member is at rest. In order for him or sleep.31 However, the presenters noted sleep opportunity must actually be her to do this, the relief flightcrew that the value of sleep is impacted by provided (as opposed to simply member must know how to actually where it falls in the circadian cycle. scheduled), and the sleep facility must operate the aircraft. They stated that split sleep with 4 hours be adequate to reasonably allow sleep. The FAA seeks comment on the sleep during a circadian night is better A carrier could extend an FDP by 50 following: percent of the actual available sleep (15) Should augmentation be allowed 31 However, they also noted that there is an opportunity if it provides at least 4 for FDPs that consist of more than three overhead involved in getting to sleep, and that split sleep multiplies that overhead. Therefore, split 32 The presenters stated that it is less clear if a flight segments? Does it matter if each sleep with 4 hours at night and 4 hours during the split sleep involving a 2-hour sleep segment and a segment provides an opportunity for day would, over time, result in a cumulative sleep 6-hour sleep segment is equivalent to eight hours some rest? debt. of continuous sleep.

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hours sleep opportunity. However, the CAP–371 provides a scheme whereby person can sustain his or her FDP could not be extended beyond 12 flight duty periods are reduced based on performance at acceptable levels for five hours.33 The sleep opportunity is the number of previous consecutive consecutive nights. However, the calculated from the time the flightcrew nights flown. The FAA is unaware of smaller the nighttime sleep opportunity, member actually reaches the sleep the basis for this scheme, and it is not the lower level of performance, facility, rather than when it is readily apparent from a reading of the particularly by night five. In addition, scheduled. This is because a scheduled requirement. training on how to maximize sleep sleep opportunity may be reduced Modeling indicates that consecutive opportunities is critical because an considerably if there are delays or an nights of nighttime work will lead to a individual needs to get enough sleep unanticipated need for further aircraft decrease in productivity over a during the day to make up for the movement. As with all other instances relatively short period of time nighttime sleep deficit. A copy of Dr. when transportation to or from a rest (approximately 3 days). The modeling Hursh’s analysis has been placed in the facility is involved, the period of time notes a steady deterioration in docket for this rulemaking. engaged in transportation does not performance because it is very difficult The FAA has decided to take a count as duty, but it also does not count for most people to sleep effectively comprehensive approach towards as rest. during the day.34 The members of the consecutive nighttime operations that it The rest facility must be adequate to ARC who had flown nighttime believes addresses the concerns by both reasonably permit the flightcrew operations generally agreed that the first contingents within the ARC. The agency member with an opportunity to rest. To night of multiple nighttime operations proposes to permit consecutive that end, it must be quiet, temperature- was the most difficult because they were nighttime flying, constrained only by controlled, and light-controlled. The unaccustomed to being awake all night. 30-hour consecutive rest required for FAA considered whether to require that During the ARC discussion, the cargo any 168-hour period, as long as there is it also be a single occupancy facility. contingent of the part 121 community an opportunity to rest in a suitable The agency has tentatively decided asserted that if one changes the facility during the flight duty period. As against such a requirement because it assumption in the SAFTE/FAST model proposed, this sleep opportunity would understands that there are currently and assumes that one can train oneself have to comport with the proposed split facilities where there may be more than to sleep effectively during the day, it duty requirements for extending a flight one bed per room, and it believes this may be possible to work more duty period. Should no such is fundamentally a labor-management consecutive nights without a significant opportunity be provided, a carrier could issue. Flightcrew members regularly degradation in performance. This may not assign a flightcrew member to more spend the night near their home base in be particularly true if an individual is than three consecutive nightime FDPs. houses or apartments where there may provided an opportunity to sleep during While this approach is more restrictive be multiple beds in a single room. If this the night while packages are being than currently permitted, it permits dormitory-type housing is sufficient for sorted from one plane to the next. The cargo carriers who provide adequate rest full rest periods, it should, from a cargo carriers asserted that higher levels facilities to continue their current regulatory perspective, be sufficient for of sleep pressure brought on by the operations. It also assures that a split rest facility. longer period of wakefulness on day one flightcrew members are given an The FAA seeks input on the of the pairing act to offset the general opportunity for limited nighttime rest. following: inability to sleep effectively during the The FAA has concerns that simply (21) Please comment on whether a day, particularly when people have limiting nighttime operations to three single occupancy rest facility provides a been trained to understand the need to consecutive nights could result in a better opportunity for sleep or a better take advantage of the sleep pressure to significant increase in the number of quality of rest than a multiple improve their ability to sleep during the first night operations, since presumably occupancy facility such as a multi-bed day. The FAA has asked Dr. Hursh, who carriers will not change the nature of crew sleeping facility or multi-bed developed the SAFTE/FAST model,35 to their operations, but simply will living quarters. Please provide input these assertions into the model. schedule more multiple-night crew supporting data. Dr. Hursh determined that, given a pairings to accommodate the existing sufficient sleep opportunity at night, a operations. Thus, a flightcrew member H. Consecutive Nighttime Flight Duty who is currently assigned two 5-night Periods 34 A copy of the technical report evaluating the pairings in a 2-week period could There was a discussion among ARC model has been placed in the docket. See also, potentially be assigned three 3-night members on whether there should be a Rosekind, M.R., Gander, P.H., Graeber, R.C., pairings in the same 2-week period, limitation on the number of consecutive Connell, L.J., Gregory, K.B., Miller, D.L., & Barnes, increasing the risk associated with the R.M. (1998). Crew factors in flight operations: The nights that a pilot could fly, based, in initial ASA-Ames field studies on fatigue. Aviation, first night of operations by 50 percent part, on a presentation to the ARC that Space, and Environmental Medicine, 69 (2), B1– during that timeframe. Certainly long- performance falls off under the SAFTE/ B60. Thomas, M.J.W., Petrilli, R.M., Roach, G.D. standing industry practice has been to FAST model after the third night. (2007). The Impacts of Australian Transcontinental fly more than three consecutive nights. ‘‘Back of Clock’’ operations on sleep and The FAA is concerned that taking an Currently the FAA places no restrictions performance in commercial aviation flight crew on the number of allowable consecutive (B2005/0121). Adelaide/Whyalla, Australia: approach that may appear safer in nighttime operations, as long as the University of South Australia, Centre for Applied modeling could lead to adverse safety crewmember receives 24 consecutive Behavioural Science. Gander, P.H., Gregory, K.B., impacts in the real world. Connell, L.J., Miller, D.L., Graeber, R.C., & The ARC contingent advocating hours free from duty in a 7-day period. Rosekind, M.R. (1996). Crew factors in flight operations: VII. Psychophysiological responses to restrictions on consecutive night flight 33 As a practical matter, the 12-hour limitation on overnight cargo operations (NASA/TMm1996– duty periods suggested a fourth night FDP makes split duty sleep desirable only for 110380). Moffett Field, CA: NASA Ames Research was acceptable as long as a 14-hour rest nighttime operations or operations that begin late at Center. was provided between nights three and night and restart very early in the morning. The 35 This model is widely used, with approximately FAA believes it is unlikely a carrier would rely on 14 major carriers and sixteen governmental agencies four. The FAA notes that a 14-hour rest split duty sleep opportunities in the middle of the world-wide having used the model to evaluate opportunity would limit a flightcrew day because there would be no additional credit. fatigue in aviation and other industrial settings. member to a maximum 10-hour duty

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period, excluding the time required for accommodation provided by the should be set for reserve duty. The local commuting.36 The FAA is not sure operator, during the period 2200 to 0800 scientific presenters noted that the that this approach would provide a hours local time and a crew member is ability to successfully manage time-on- meaningful FDP for the fourth night. given 2 hours or less notice of a report duty is dependent on rest. If 8 hours The FAA requests input on the time, the allowable FDP starts at the sleep in the WOCL is available, then 16 following: report time for the designated reporting hours of duty is theoretically possible. (22) Should there be any restriction place. EASA recognizes ‘‘standby duty’’, Short-Call and Airport/Hotel Standby on consecutive nighttime operations? If but does not place any regulatory Reserve not, why? restrictions on this type of duty. (23) If the nighttime sleep opportunity Reserve duty is inherently based on Airport/standby reserve 37 is known is less than that contemplated under the unpredictable events, such as covering by several terms among various split duty provisions of this notice, trips for flightcrew members who certificate holders, but ultimately should a carrier be allowed to assign become ill, have difficulty traveling to involves a flightcrew member on call at crew pairing sets in excess of three the airport for an assignment because of an accommodation or other facility at or consecutive nights? Why or why not? weather or other reasons, or are near an airport. The flightcrew member (24) If the nighttime sleep opportunity stranded due to severe weather creating is not at home and is not resting. The meets the split duty provisions of this flightcrew member shortages throughout purpose of such reserve duty is to have notice, should the carrier be allowed to a certificate holder’s system. The very an available flightcrew member close to extend the flight duty period as well as nature of reserve duty makes injecting the operation in case of a schedule the number of consecutive nighttime predictability into a reserve flightcrew irregularity. Flightcrew members on flight duty periods? Why or why not? member’s schedule a challenge. these assignments can receive notice to (25) Should a fourth night of The ARC set a goal to make reserve report to work in as little as 1 hour consecutive nighttime duty be permitted duty as predictable as possible, and to before departure time, requiring them to if the flightcrew member is provided a manage fatigue as much as possible. The be in a constant state of readiness. 14-hour rest period between nights three proposal on how to address reserve Because of the unique nature of these and four? limits was one of two areas of consensus assignments, and the fact that the I. Reserve Duty by the ARC. The ARC concept includes flightcrew member is not resting, an defining limits associated with flight airport/standby reserve assignment is While the term ‘‘Reserve’’ has been duty period, duty period and rest considered to be an FDP, regardless of used for years in the air carrier industry, limitations. whether a flying assignment is the term is not addressed at all in part One of the most fatiguing elements of ultimately received by the flightcrew 121. The agency has issued 11 legal reserve duty is the lack of predictability. member. interpretations on the subject of reserve, Unlike a flightcrew member who has a which range from examples of whether set schedule (a line-holder), a flightcrew Short-Call Reserve a crewmember is on duty and, if member on reserve may spend several A short-call reserve flightcrew applicable, whether the required rest hours on-call and then, once called, be member typically receives an associated with that duty period is expected to report to the airport ready assignment on relatively short notice, impeded by being in a reserve status. to commence his or her duty day. The meaning he or she would not be The ARC discussed various lack of predictability means the reserve provided an adequate time for a legal definitions of reserve and initially crewmember cannot schedule naps or rest period before reporting for duty. proposed that reserve means that a pilot otherwise control his or her sleep Report times are typically within two to that does not have a regular flying opportunities to assure the reserve 3 hours from notification. Short-call schedule and is available for flight when crewmember is adequately rested when reserve differs from airport/standby contacted by the company. That pilot he or she reports to work. reserve in that the flightcrew member is has no telephone or reporting The ARC asked the sleep specialists likely to be at home and available for responsibility to the company. The ARC what impact this lack of predictability contact by the certificate holder, rather refined the definition of ‘‘reserve’’ to has on a reserve flightcrew member than at the airport or a hotel actively read ‘‘a flightcrew member that is compared to a line-holding flightcrew awaiting an assignment. Although the required by a certificate holder to be member. The presenters responded that flightcrew member may be at home, the available to receive an assignment for depending on when a reserve flightcrew opportunity for sleep before reporting duty.’’ In addition, the ARC established member is called and how much notice for duty cannot be guaranteed. the following types of reserve duty: is given, he or she may not have the Therefore, the ARC deemed a limit on Long-call, short-call, and airport/ same opportunity to nap that a line- the amount of time spent on short-call standby. The ARC noted that the holder would have, because the line- reserve duty as necessary. policies that apply to reserve flightcrew holder would know about the trip and The ARC noted that a number of members vary significantly between could plan his or her rest accordingly. variables may impact the maximum FDP certificate holders, but also found that A reserve flightcrew member also might for a short call reserve.38 These variables there are some relatively consistent not nap, even if he or she thought a call include: conditions. was unlikely, because this uncertainty • Timing of on-call period within a CAP–371 places restrictions on may disrupt his or her sleep schedule. circadian day. Where an on-call period ‘‘Standby Duty’’, which is generally the The ARC asked the scientists how a starts in relation to standard circadian equivalent of short-call reserve reserve flightcrew member could best rhythms can affect alertness and state of discussed below. When standby duty is prepare for a potential assignment, undertaken at home, or in a suitable without knowing when he or she may 37 The word ‘‘airport’’ was added to standby to be called. They recommended a normal differentiate between the ICAO term ‘‘standby,’’ 36 Although today’s proposal does not night’s sleep through the WOCL and a which is the equivalent of ‘‘reserve’’ in U.S. contemplate a 24-hour day, the FAA assumes that terminology. consecutive nighttime operations would generally late afternoon nap in the minor WOCL. 38 These same variables apply to airport/standby be scheduled at approximately the same time each The ARC also asked the presenters if reserve but are addressed there by the maximum day. there was a maximum duty time that FDPs in the FDP table.

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rest. Generally, short call availability member to plan ahead in his or her which the carrier must contact the periods may be classified as very early sleep rest cycles. reserve from the start of the RAP to use morning, daytime, or night. The ARC The ARC considered two reserve the entire available FDP) actually would considered that daytime reserve systems developed by working groups be better than the 6-hour lookback flightcrew members can be presumed to consisting of ARC members representing originally proposed under the WOCL be well-rested and alert at the start of industry and labor groups. Aware proposal. their reserve period because they can get One working group proposed a WOCL A scenario was also posed of a pilot a regular night’s sleep. For the other Aware Reserve System to the ARC. with a RAP starting during the window classifications, circadian factors may Some key points of the system are as of circadian low, but not called until make flightcrew members less alert and follows: after the window of circadian low had rested than those on daytime reserve. • Any reserve flightcrew member passed. It was proposed that some credit One ARC member suggested that called between 2200 and 0600 will be given for the sleep obtained before flightcrew members called to report receive a minimum of 10 hours of rest being called. After brief discussion, the during overnight hours should have a before reporting for duty. ARC decided to move forward with a reduced maximum FDP. • Any reserve flightcrew member maximum FDP limit of 16 hours after • Length of on-call period. Not all called to fly into the WOCL would have the start of the RAP. carriers have the same reserve policies. to be contacted within the first 6 hours After considering the above proposals of his or her reserve duty. and other discussions, the ARC Some certificate holders have relatively • short on-call periods, lasting only a few If normal sleep time is not proposed the following requirements for hours, while other certificate holders interrupted and a reserve flightcrew reserve duty: may require flightcrew members to be member is not being called to fly into • ‘‘Scheduled’’ is defined as times on call for 12 hours or more. the WOCL, he or she would have the assigned by a certificate holder when a same FDP limit as a line-holder because • Timing of call and report time in flightcrew member is required to report they received similar rest. for duty. ‘‘Assigned’’ is defined as relation to on-call period and length of • Airport/standby reserve is to be scheduling by a certificate holder when duty day. One ARC member noted that treated like a trip assignment and is during an on-call period, the time the a flightcrew member is required to considered as an FDP. No part of 40 flightcrew member is called and the report to duty. airport/standby reserve may be • Airport/standby reserve counts as time the flightcrew member is expected considered rest, even if the flightcrew to report may affect the flightcrew part of the flightcrew member’s FDP. member is at a hotel. • RAP and RDP only apply to short member’s alertness and rested state (e.g., The proposal for a Predictable Reserve called at 5 a.m. to report at 3 p.m. vs. call reserve. System with Circadian Stability • The maximum RDP for un- called at 10 a.m. to report at noon). (Predictable System) is based on three • augmented operations is the flightcrew Recent on-call history. The ARC prongs: Science, circadian stability, and member’s possible FDP under the FDP noted that reserve flightcrew members adequate rest. The proposal incorporates table plus 4 hours, or 16 hours, with on-call schedules often change provisions from CAP 371, and provides whichever is less. schedules from day to night, or vice- some recommendations from a reserve • The maximum RDP for an versa, within a short period of time. rest ARC that convened in 1999. The augmented flight crew is the flightcrew Such changes, especially if given with second proposal contained the member’s possible FDP under the short notice, can result in reserve following elements: augmented FDP table plus 4 hours. flightcrew members failing to obtain • A carrier receives half credit for not proper rest before their on-call periods. Reserve Limits • calling a reserve crew member on phone Created several definitions availability between midnight and 6 Long-Call Reserve ‘‘ applicable to reserve including reserve a.m. up to a maximum of 3 hours (e.g., 39 ’’ ‘‘ Long call reserve pilots are given availability period (RAP), reserve duty if the crew member is on reserve starting ’’ ‘‘ ’’ relatively substantial advance notice of period (RDP), short call reserve , and at 1 a.m., but isn’t called until 3 a.m., ‘‘ ’’ when they are to fly. This notice may be long call reserve. the RAP is extended by 1.5 hours). • Maximum RDP is 16 hours. from 9 hours to over 24 hours. A long- • A short-call reserve duty period in • Maximum reserve availability call reserve flightcrew member typically which the crewmember is not called to period (RAP) for short call reserve is 14 receives an assignment for duty well in report to work may not exceed 14 hours. hours. advance and will have a sleep • Conversion from long-call to short- • Carrier receives half credit for not opportunity before reporting for duty, call reserve assignment must be calling a reserve crew member on phone and may have enough notice of the preceded by a legal rest period. availability between 0000 and 0600; assignment to plan his or her rest • A long-call reserve flightcrew maximum 3 hours. accordingly. The ARC recognized, member must receive a legal rest prior however, that depending on the timing Shifting RAP to reporting for duty and at least 12 of notice and the report time in relation • hours notice of an assignment of a trip to circadian rhythms, reserve flightcrew Later—12 hour maximum in any 168 consecutive hours. pairing that will extend into the members may not be able to obtain a full • window of circadian low. 8 hours of sleep, despite the opportunity Earlier—3 hour maximum into the WOCL; 5 hour maximum otherwise. to do so. The lack of predictability of 40 • Not allowed on consecutive days. The ARC notes that ‘‘assigned’’ and ‘‘scheduled’’ when the flightcrew member will be Concerns were expressed regarding are one in the same; therefore, when a certificate required to report for duty makes it holder assigns a reserve flightcrew member a trip, individuals on phone availability being difficult for the reserve flightcrew that certificate holder has given that flightcrew called during the window of circadian member a schedule. This prevents a certificate low. However, it was noted that based holder from assigning a trip to a flightcrew member 39 The ARC defined a long-call reserve as ‘‘a and stating that the term assigned does not fall reserve flightcrew member whose obligation to on scientific modeling, for a reserve under the definition of scheduled. It also prevents report for an FDP following notification contains a called during the window of circadian certificate holders from only assigning trips and not legal rest period before report time.’’ low, a 4-hour lookback (the period in scheduling any trips.

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• A reserve flightcrew member’s RAP move the availability into the 12 hours (regardless of direction) in may be shifted under the following flightcrew member’s window of any 168 consecutive hour period. conditions: circadian low, it may not exceed 3 hours. Tables E(1) and E(2) are visual —A shift to a later RAP may not exceed —A shift to an earlier RAP may not depictions of the maximum RAP 12 hours. occur on consecutive days. discussed above based on the two FDP —A shift to an earlier RAP may not —The total amount of shift in RAPs for tables contemplated by the ARC. exceed 5 hours, or if the shift will a flightcrew member may not exceed

TABLE E(1)—FLIGHT DUTY PERIOD RESERVE: TWO FLIGHTCREW MEMBERS, OPTION 1

Time of start Maximum flight duty period reserve (hours) based on number of flight segments (home base) 1 2 3 4 5 6 7+

0000–0359 ...... 13 13 13 13 13 13 13 0400–0459 ...... 14 14 13 13 13 13 13 0500–0559 ...... 15 15 15 15 14 13 .5 13 0600–0659 ...... 16 16 16 16 15 15 14 .5 0700–1259 ...... 16 16 16 16 16 16 15 1300–1659 ...... 16 16 16 16 15 .5 15 14.5 1700–2159 ...... 15 15 14 14 13 .5 13 13 2200–2259 ...... 14 .5 14.5 13 .5 13 .5 13 13 13 2300–2359 ...... 13 .5 13.5 13 13 13 13 13

TABLE E(2)—FLIGHT DUTY PERIOD RESERVE: TWO FLIGHTCREW MEMBERS, OPTION 2

Time of start Maximum flight duty period reserve (hours) based on number of flight segments (home base) 1 2 3 4 5 6 7+

0000–0159 ...... 13 13 13 13 13 13 13 0200–0459 ...... 14 14 14 14 13 13 13 0500–0659 ...... 16 16 16 16 15 .5 15 14.5 0700–1259 ...... 16 16 16 16 16 16 15 .5 1300–1659 ...... 16 16 16 16 15 .5 15 14.5 1700–2159 ...... 15 15 15 15 13 13 13 2200–2259 ...... 14 .5 14.5 14 .5 14 .5 13 13 13 2300–2359 ...... 13 .5 13.5 13 .5 13 .5 13 13 13

Because this was one of only two ARC While in a short-call reserve status, the aircraft, this proposal would permit consensus areas, the FAA has decided crewmember can expect that he or she some reduction in the overall rest to propose the ARC recommendation will not receive an opportunity to rest opportunity. with only a few changes. prior to commencing a flight duty The FAA seeks comment on the First, the agency has decided against period. The crewmember also is following: adding Table E to the regulatory text. required to limit his or her actions The agency believes the regulatory text sufficiently so that he or she can report (26) Please comment on whether a 16 is sufficiently clear. Also, the table does to his or her duty station within a fairly maximum hour FDP for long call reserve not include the credit that could be short timeframe. Accordingly, the FAA is appropriate when the maximum FDP given for not calling during the reserve believes this time needs to be accounted for a lineholding flightcrew member is crew member’s window of circadian for within the cumulative duty limits 13 hours. low and could be misleading. Carriers discussed later in this document. (27) Please comment on whether the (and the pilot associations) are of course While the FAA is proposing the ARC proposed maximum extended FDP of 22 free to draft whatever tables they think recommendation on reserve, it also hours for an augmented flightcrew are helpful to understand the regulatory notes some concern with the level of its member is appropriate. If not, please requirements. complexity. The agency is particularly provide an alternative maximum FDP. Second, the ARC did not consider concerned that the partial credit given (28) Please comment on whether a time within the RAP to be duty. for not calling during the window of certificate holder should receive credit However, the FAA believes that it may circadian low will be difficult to for not calling a flightcrew member be appropriate to designate time spent implement. It may make more sense to during the WOCL while on reserve. in a short-call reserve status as duty.41 simply assign a credit for not calling (29) Should minimum required rest during the window of circadian low. 41 This issue was not discussed by the ARC and while on reserve status be greater than there appears to be a general agreement in the The agency also has some concern that the amount of rest required for a aviation community that reserve is neither rest nor the RDP for augmented operations could lineholding flightcrew member? If so, duty. The FAA agrees this approach is appropriate extend to 22 hours. While there would please provide supporting data, if not, for long-call reserve and acknowledges that calling be some opportunity to rest on board the short-call reserve ‘‘duty’’ could have adverse please provide rationale. implications if there were a daily duty limit. However, the FAA also believes that some portions reserve crewmember can spend long periods of time (30) Please comment on the level of of industry have developed reserve policies that on reserve with no anticipation of a rest complexity on the proposed reserve increase the likelihood of fatigue because the opportunity prior to reporting to work. system.

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J. Cumulative Duty Periods aviation industry, where pilots industry that relies on deadheading to The FAA’s current regulations do not commonly work more than an 8-hour position pilots to areas outside of the impose a cumulative restriction on duty, day, often at varying times in a single U.S. Since the extension is limited to no although as a practical matter, a week. The FAA proposes to set more than 10 additional hours, there flightcrew member engaged in domestic maximum duty limitations, flight duty should be sufficient fatigue mitigation. operations is effectively limited to a 16- periods, and flight time (block) periods Since short-call reserve periods are hour duty day and all flightcrew based on specific time intervals. Fewer tentatively considered to be duty, the members are entitled to 24 consecutive hours on duty can be equated to more FAA also believes it is appropriate to hours free from duty during a 7-day opportunity for rest, which can mitigate allow carriers to increase the maximum period. Rather, the FAA has historically the amount of cumulative fatigue cumulative duty periods to account for placed limitations on the number of experienced by a flightcrew member. the time spent on short-call reserve, flight hours a flightcrew member may be The proposed limits decline over while still recognizing that time spent assigned on a daily, weekly, monthly, extended periods of time, i.e., the 28- on reserve is less strenuous than time and annual basis. Depending on day limits are less than four times the actively spent on duty. whether one is operating under weekly limits. This approach would The FAA also notes that it may be domestic, flag or supplemental rules, allow flightcrew members to work long appropriate to provide the same flight time is limited to 30–32 hours a hours over a relatively short period of accommodation to management week, 100–120 hours a month, 300–350 time, but prevent long duty periods over personnel. The rationale for allowing hours a quarter, and 1,000 hours a year. extensive lengths of time. longer duty periods based on deadhead CAP–371 and EU–OPS subpart Q The ARC defined duty as ‘‘any task segments centered on the fact that impose more restrictions on cumulative that crewmembers are required by the deadheading in a ‘‘rest seat’’ provided duty, with weekly limits ranging from certificate holder to perform including, mitigation in the form of an opportunity 55 to 60 hours, biweekly limits of 95 but not limited to: Flight duty, to rest; office work would not allow for hours (CAP–371 only), and slightly less administrative work, ground training, such mitigation, but limiting the duty than monthly limits of 190 hours ancillary training, positioning, and period to 65 hours a week for (calculated against 28 days rather than airport standby.’’ The FAA believes this management could have an adverse an actual month). The ICAO SARP definition appropriately details the type safety impact (e.g., force flying shorter, recommend that member states restrict of work commonly required of unaugmented flights) since the duty hours within any seven crewmembers except that, as discussed management workload likely will not be consecutive days or a week and 28 earlier, it believes that time spent on reduced. consecutive days or a calendar month. short-call reserve should apply to the The extension of the maximum duty Scientific studies suggest that long cumulative duty limits proposed today. limit would only be extended by the periods of time on duty infringe upon Under today’s proposal, duty time amount of time spent engaged in the an individual’s opportunity to sleep, would be limited to 65 hours in any type of duty allowing for an extension. thus causing a ‘‘sleep debt’’ which is also consecutive 168-hour period (7 days) Thus, if a flightcrew member spent 5 42 known as cumulative fatigue. Some and 200 hours in any consecutive 672- hours on short-call reserve, the conclusions are based on experiments in hour period (28 days). The FAA is maximum weekly duty period would sleep labs, and there is limited data proposing consecutive hourly limits that only be extended by 5 hours, to a total either supporting or refuting that the equate to 7 and 28 days because the of 70. amount of cumulative duty has a direct current requirements assume that a day The proposed cumulative limitation effect on cumulative fatigue. starts just after midnight, which is an on flight duty periods is largely Despite the lack of validated data, the arbitrary constraint that does not work consistent with the approach already FAA believes it is appropriate to take a well for carriers. As a result, carriers adopted by the British and EASA. conservative approach and is proposing have been allowed to define when their Specifically, the ARC recommended to impose cumulative limitations on ‘‘day’’ begins. This approach is that flight duty period be limited to 60 duty, flight duty periods, and flight unwieldy. As a practical matter, the hours in any consecutive 168 hours (7 time. Not only are cumulative limits FAA expects that carriers and flightcrew days) and 190 hours in any 672 consistent with current regulations here members will base their ‘‘week’’ on the consecutive hours (28 days). The ARC and abroad, but they offer protections time the flightcrew member reported for against practices common in the decided there was no need to duty after completing his or her implement a biweekly requirement, as extended rest period. exists in CAP–371, instead endorsing 42 Krueger, G.P. (1989). Sustained work, fatigue, The weekly limit could be extended sleep loss and performance: a review of the issues. the approach adopted by EASA. The Work & Stress. 3, (2), 129–141. Galy, E., Melan, C., by up to 10 hours to 75 hours during a FAA agrees that a weekly and monthly & Cariou, M. (2008). Investigation of task rolling 168 hours and the 28-day limit approach sufficiently mitigates the performance variations according to task could be extended to 215 hours if the effects of cumulative fatigue and is requirements and alertness across the 24-h day in duty period includes deadhead shift workers. Ergonomics, 51 (9), 1338–1351. proposing the limits suggested by the Rosekind, M.R., Gander, P.H., Gregory, K.B., Smith, segments in a rest seat outside the flight ARC. The FDP is a sub-set of duty, and R.M., Miller, D.L., Oyung, R., Webbon, L.L., & deck meeting or exceeding the the maximum FDP limits are subsumed Johnson, J.M. (1996). Managing fatigue in 43 provisions of class 2 rest facility. within the maximum duty limits. To the operational settings 1: Physiological considerations Allowing an additional 10 hours duty and countermeasures. Behavioral Medicine, 21, extent any duty other than that 157–165. Graeber, R.C. (1986). Crew factors in flight time for non-FDP deadhead flights when encompassed in the definition of a FDP operations: IV. Sleep and wakefulness in adequate sleeping accommodations are cannot be completed within the time international aircrews (NASA/TMm1986–88231). provided seems to be a reasonable Moffett Field, CA: NASA Ames Research Center. dedicated to non-FDP duty (typically 5 Gander, P.H., Graeber, R.C., Connell, L.J., & Gregory, accommodation to that sector of the hours a week or 10 hours in a 4-week K.B. (1991). Crew factors in flight operations: VIII. period), the amount of FDP is Factors influencing sleep timing and subjective 43 Except that no curtain need be provided if the sleep quality in commercial long-haul flight crews crewmember is being deadheaded commercially, correspondingly reduced. Thus, during (NASA/TMm1991–103852). Moffett Field, CA: since this would be beyond the certificate holder’s a 168-hour period, if a flightcrew NASA Ames Research Center. control. member spent 30 hours in ground

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training, the available amount of FDP requirement results in 8 hours of actual For most people, 8 hours of sleep in for that period would only be 35 hours. sleep opportunity. each 24 hours sustains performance ‘‘Flight time’’ retains the meaning in In addition, the existing requirements indefinitely.45 There is a continuous 14 CFR 1.1. While the ARC largely do not adequately apprise the regulated decrease in performance as sleep is lost. agreed on a 100 hour limitation in any community on what constitutes being Examples of this reduction in 672 consecutive hours (28 days), it was free from duty. The FAA has issued 55 performance include complacency, a unable to agree on a maximum annual legal interpretations regarding rest that loss of concentration, cognitive and limit. Some argued that the constraints apply to pilots, flight attendants and communicative skills, and a decreased on cumulative duty and flight duty dispatchers, many of which relate to ability to perform calculations. All of periods obviated the need for any limit. whether a crew member is at rest when these skills are critical for aviation This argument was particularly strong required to answer phone calls or pagers safety.46 with regard to annual limits on flight or otherwise be in contact with the The scientific presenters stated that time. However simple calculations of carrier. the proposed weekly and 28-day limits CAP–371 defines rest as a period of during long pairings with significant revealed that absent an annual limit, a time before starting a flight duty period time zone shifts, a minimum of 24 hours flightcrew member could potentially which is designed to give crew members off would be necessary for flightcrew accrue as many as 2,000 flight hours in adequate opportunity to rest before a members to find an adequate sleep a 12-month period. Based on this flight. The minimum rest period must opportunity, and sufficient time free 47 assessment, those arguing against any be as long as the preceding duty period, from duty. A minimum of two nights limit conceded that some annual limit or 12 hours, whichever is greater. After of sleep might be necessary to acclimate 48 may be appropriate, but that in any case being called out from reserve, the length to a different time zone. the current limit of 1,000 hours per year of minimum rest is determined by the The scientific presenters noted that an could be relaxed to 1,200 hours. Others length of reserve duty, time spent on individual’s circadian clock is sensitive argued that the current annual limit is positioning, and any completed FDP. to rapid time zone changes. They added too high and urged the FAA to consider EASA defines a rest period as a that long trips present significant issues a 900 hour limit. The FAA has continuous and defined period of time, requiring mitigation strategies.49 tentatively decided to retain the current subsequent to and/or prior to duty, Twenty-four or 48 hours of rest may not annual flight time limitation of 1,000 during which a crew member is free of be adequately restorative during a trip hours in any 365 consecutive days all duties. Certificate holders are pairing where a flightcrew member is because the ARC members were unable required to ensure that rest periods working 20 days separated by 24-hour to agree and the current limit is within provide sufficient time for flightcrew layovers. In some cases, shorter rest the limits presented by the ARC. members to overcome the effects of the periods, such as 18 hours or less, may (31) The FAA seeks input on the previous duties and be well rested for appropriate cumulative limits to place the next FDP. In addition, a certificate sleepiness in the active individual. International on duty, flight duty periods and flight holder must ensure that the effects on a journal of neuroscience, 52 (1–2), 29–37. Gander, time. Is there a need for all the proposed flight crew passing through different P.H., De Nguyen, B.E., Rosekind, M.R., & Connell, L.J. (1993). Age, circadian rhythms, and sleep loss limits? Should there be more limits (e.g., time zones are compensated for with in flight crews. Aviation, Space, and Environmental biweekly, or quarterly limits)? additional rest. As is the case with Medicine, 64 (3), 189–195. (32) The FAA also asks for comments CAP–371, the EU OPS subpart Q 45 Rosekind, M.R., Gander, P.H., Gregory, K.B., on measuring limits on an hourly rather requires that minimum rest for an FDP Smith, R.M., Miller, D.L., Oyung, R., Webbon, L.L., than daily or monthly basis. Does this beginning at home base must be at least & Johnson, J.M. (1996). Managing fatigue in operational settings 1: Physiological considerations approach make sense for some time as long as the preceding duty period or and countermeasures. Behavioral Medicine, 21, periods but not for others? 12 hours, whichever is greater. If the 157–165. 46 K. Rest Requirements FDP begins away from home base, the Caldwell, J.A., Mallis, M.M., Caldwell, J.L., rest must be as long as the preceding Paul, M.A., Miller, J.C., & Neri, D.F. (2009). Fatigue 1. Pre-Flight Duty Period Rest countermeasures in aviation. Aviation, Space, and duty period or 10 hours, whichever is Environmental Medicine, 69 (1), 29–59. Adequate rest is the most critical greater. Within this rest period, a 47 Gander, P.H., Myhre, G., Graeber, R.C., component of fatigue mitigation. As certificate holder must provide at least Anderson, H.T., and Lauber, J.K. (1985). Crew such, it is critical that the FAA 8 hours of opportunity for sleep. EU factors in flight operations: I. Effects of 9-hour time- OPS subpart Q also requires certificate zone changes on fatigue and the circadian rhythms implement unambiguous rest of sleep/wake and core temperature (NASA/TMm requirements that address both the holders to increase the minimum rest 1985–88197). Moffett Field, CA. NASA Ames potential for fatigue on a daily basis and periodically to a weekly rest period. The Research Center. the risk posed by cumulative fatigue. pilot-in-command also may reduce rest 48 Lamond, N., Petrilli, R.M., Dawson, D., and in the event of unforeseen Roach, G.D. (2006). Do short international layovers Currently, 14 CFR part 121, subparts Q, allow sufficient opportunity for pilots to recover? R and S address rest limits within a 24- circumstances. Chronobiology International, 23(6), 1285–1294. hour period. However, certificate As discussed earlier, the study of Lamond, N., Petrilli, R.M., Dawson, D., and Roach, holders conducting operations with sleep science is somewhat settled on the G.D. (2005). The impact of layover length on the following points: The most effective fatigue and recovery of long-haul flight crew. airplanes having a passenger seat Adelaide/Whyalla, Australia: University of South configuration of 30 seats or fewer and a fatigue mitigation is sleep; an average Australia, centre for Sleep Research. payload capacity of 7,500 pounds or individual needs to have an 8-hour 49 See also, Gander, P.H., Graeber, R.C., Connell, less, may comply with the less stringent sleep opportunity to be restored; 8 hours L.J., and Gregory, K.B. (1991). Crew factors in flight of sleep requires more than 8 hours of operations: VIII. Factors influencing sleep timing requirements of 14 CFR sections and subjective sleep quality in commercial long- 135.261 through 135.273. Perhaps the sleep opportunity; and daytime sleep is 44 haul flight crews (NASA/TMm 1991–103852). largest problem with the existing less restorative than nighttime sleep. Moffett Field, CA: NASA Ames Research Center. regulations is that there is no Rosekind, M.R., Gander, P.H., Gregory, K.B., Smith, 44 Akerstedt, T., & Gillberg, M. (1981). The R.M., Miller, D.L., Oyung, R., Webbon, L.L. and mechanism to assure that rest is circadian variation of experimentally displaced Johnson, J.M. (1996). Managing fatigue in provided prior to flight, and there is no sleep. Sleep, 4 (2), 159–1659. Akerstedt, T., & operational settings 2: An Integrated Approach. guarantee that the 9-hour rest Gillberg, M. (1990). Subjective and objective Behavioral medicine, 21, 166–170.

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be more restorative because of circadian between the pilot in command and the recognized this possibility and issues. certificate holder. considered an approach whereby any In defining a rest period, the ARC The FAA is proposing flightcrew time exceeding 30 minutes would not be included the condition that a flightcrew members be provided with a minimum considered in the rest period. member be free from all contact during of 9 hours rest prior to commencing a Ultimately, the impact is the same; it is a rest period. The proposed definition flight duty period. The agency has simply clearer from a regulatory means that the certificate holder cannot tentatively decided against proposing perspective to acknowledge that time in contact a flightcrew member nor can the different requirements for domestic and transit is not rest. The FAA has decided flightcrew member be required to international operations. Time against treating this time as duty contact the certificate holder during a associated with clearing customs and because it recognizes that the rest period. immigration or traveling longer permissible amount of cumulative duty The ARC members agreed on a distances to a hotel has been addressed is only nominally higher than the general approach towards rest without by refining the time at which the rest permissible amount of FDP and that the agreeing on the number of hours one requirement begins and ends, as location of a rest facility is a lifestyle needed to be free from duty to assure an discussed below. While the FAA agrees issue that is typically negotiated 8-hour sleep opportunity. On the lower that changes in time zones and the need between the carriers and their unions. end, they developed a domestic rest to acclimate require additional The FAA seeks comment on the requirement of 10 hours by working out safeguards, the agency believes that it following: in each direction from an 8-hour sleep has already accommodated that (33) If transportation is not opportunity, with 30 minutes on each additional risk in other provisions to the considered part of the mandatory rest end for transportation, and 30 minutes proposed rule. As to concerns raised period, is there a need for a longer rest period for international flights? on each end for physiological needs with air traffic controllers who do not such as eating, exercising and speak English as their primary language, 2. Cumulative Rest Requirements showering. Others on the ARC noted the FAA is unconvinced that providing an additional 2 hour sleep opportunity Much as there should be cumulative that a longer rest period was required to limits on the amount of work a assure an 8-hour sleep opportunity. after the flight has ended would have any impact on the stress associated with flightcrew member can be expected to For international operations, some communicating with air traffic control perform in a week, there also needs to members of the ARC suggested this rest after entering foreign air space. Based on be an opportunity for rest that exceeds requirement should increase to 12 the available sleep studies, it does not the amount of rest required on a daily hours. They noted that flightcrew appear that a longer rest period basis. The scientific presenters to the members may require a longer rest immediately prior to commencing a ARC stated that cumulative fatigue is period at international layovers because flight in non-U.S. airspace would be fatigue brought on by repeated mild of issues with time zone changes and necessary since presumably the sleep restriction or extended hours possible difficulties obtaining sleep flightcrew member has received the awake. They noted that the repeated because the flightcrew member is non- requisite amount of sleep to report to infringement of duty time on the acclimated. There were also concerns duty refreshed and well-rested. opportunity to sleep results in raised with a potential for increased As suggested by the ARC, the rest accumulated sleep debt and that the stress associated with communicating opportunity could be reduced by 1 hour operative factor in recovery from with air traffic control in countries once in any 168-hour period, but only cumulative fatigue is sleep. When a where English is not the native if agreed to by the pilot in command. person has accumulated a sleep debt, language. Some ARC members Under no circumstances may the recovery sleep is necessary. Recovery acknowledged that the minimum period opportunity to rest be reduced by more sleep requires an opportunity to obtain captures the same elements as the 10- than 1 hour because such reductions sufficient sleep to fully restore the hour requirement discussed above but would seriously encroach upon the 8- person’s ‘‘sleep reservoir.’’ Recovery includes an additional 2 hours to transit hour sleep opportunity. Should the time sleep should include at least one customs and immigration or travel a period between the beginning of the rest physiological night, that is, one sleep long distance to hotel accommodations period and the time the flightcrew must period during nighttime hours in the in foreign destinations. report for transportation to the airport time zone in which the individual is The ARC discussed permitting the be less than 8 hours, the carrier would acclimated. minimum rest time to be reduced to a need to delay the next day’s flight or The ARC discussed what would lower level due to unforeseen make other crewing arrangements. constitute rest sufficient to act as a circumstances. On the one hand, this This proposal does not exactly mirror restorative rest reset for the 168 would allow the carrier to recover a the ARC recommendation, because the consecutive hour rolling window. The schedule; on the other hand, the need FAA is proposing that transportation ARC noted that current regulations for reduced rest may be based on time to or from a duty station not be require 24 hours free of duty in any 7 factors, such as poor weather or included in the minimum rest periods; consecutive days dependent on the type mechanical problems with the aircraft, nor would it be considered duty. Rather, of operation. The ARC considered which are potentially more fatiguing the rest period would begin once the whether reset rest should (1) incorporate than normal operations. Ultimately, the flightcrew members reach the hotel. The a minimum of two physiological nights’ ARC members proposed to allow FAA’s proposal does not change the rest, which would be variable based on certificate holders to reduce a minimum intent of the ARC to generally assure an when the FDPs began and ended, or (2) rest period from 10 to 9 or 12 to 11 8-hour sleep opportunity. However, the be a fixed number of hours ranging from hours for operational flexibility in FAA believes that time in transit is not 30 to 48 hours. The ARC proposed that unforeseen circumstances, but to limit rest. In addition, the agency is a 30 to 36 hour rest during any 168 the number of times rest could be concerned that allowing this time to be consecutive hours constitutes a reduced to once in a 168-hour period. In included in the rest period could result restorative rest period. Those arguing for addition, the decision to reduce in a reduction in actual rest opportunity a 36 hour rest period noted that the 30 minimum rest would be a joint decision below 8 hours. The ARC members hour period would only rarely afford

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one the opportunity for two adopt FRMS as a means of addressing holder would need to develop to receive physiological nights rest. Those fatigue. Theoretically, a carrier could FRMS approval from the agency. I supporting 30 hours noted that this time apply its FRMS to all of its operations. As is the case with the proposed frame would allow for one physiological Realistically, it would likely only be training requirements, whenever the night’s rest and at least one additional used when the carrier cannot meet the Administrator finds that revisions are sleep opportunity, albeit less than a full more prescriptive rules because of the necessary for the continued adequacy of 8 hours. nature of the specific operations. an FRMS, the certificate holder would The FAA is proposing to impose a 30 have to make any changes in the The FAA has decided to include an hour continuous rest requirement for program deemed necessary by the FRMS option in today’s proposal. A each rolling 168-hour period. This Administrator after being notified that certificate holder may utilize this option approach does not guarantee two such changes are needed. This would when it has developed an FAA- consecutive physiological nights rest in likely be done through the OpSpec approved equivalent level of safety for a 7-day period. Rather, it provides for a process. single physiological night rest and a rest monitoring and mitigating fatigue The FAA requests comment on: 50 opportunity immediately preceding or specific to those operations. The (34) Whether some elements of an following that night. Although this is proposed regulatory text provides broad FRMS, such as an incident reporting less rest than suggested by some performance requirements that a system, would be better addressed members of the ARC, it still represents certificate holder would need to through a voluntary disclosure program a 25 percent increase over current demonstrate it met prior to the FAA than through a regulatory mandate? requirements. In addition, the FAA granting approval. These requirements M. Commuting believes the cumulative limits on duty include an additional FRMS-specific and FDP during the same 7-day period training element above and beyond the The impact of commuting to a duty should adequately mitigate the effects of general requirement proposed today. station has been linked to increased cumulative fatigue. The extent of the additional training fatigue, most recently in the crash in would be determined as part of the Buffalo, New York. Commuting is L. Fatigue Risk Management Systems overall approval process. common in the airline industry, in part A Fatigue Risk Management System While FRMS is not fully matured, the because of lifestyle choices available to (FRMS) is a carrier-specific method of general concepts are well understood pilots by virtue of their being able to fly evaluating how to best mitigate fatigue and have been developed in other at no cost to their duty station, but also based on active monitoring and contexts. For example, the approach because of economic reasons associated evaluation by the carrier and flightcrew used to obtain ultra-long range OpSpecs with protecting seniority on particular members. This cooperative approach is essentially an FRMS, except that it aircraft, frequent changes in the has the potential to provide a does not contemplate flightcrew flightcrew member’s home base, and cooperative and flexible means of members providing feedback to the low pay and regular furloughs by some monitoring and mitigating fatigue certificate holder or a system of carriers that may require a pilot to live during operations when the prescriptive accountability. The FAA’s Advanced someplace with a relatively low cost of approach is not optimal. An FRMS Qualification Program, which has been living. While commuting to a duty requires a carrier to develop numerous in place since 1990, also incorporates station can be handled responsibly processes and structures within an many aspects of an FRMS. In addition, (particularly assuming one has the operation. These measures lead to an ICAO is currently working on means), it is also subject to abuse. effective management and mitigation of developing FRMS standards. The FAA The only current impediment to fatigue on the part of both the carrier is actively engaged in the development irresponsible commuting in the FAA’s and its employees that might affect the of these standards, as are at least two regulations is the general requirement in operation. part 91 that pilots report to work fit for An FRMS requires that a baseline of members of the ARC. Accordingly, the FAA believes that FRMS will be duty. CAP–371 provides that if journey fatigue effects be identified for the time from home to normal home base is affected population, scientific modeling sufficiently robust to be implemented for operations that cannot otherwise be more than 1.5 hours, crew members of respective work schedules, education should consider making arrangements and management of the process for all accommodated under the rule by the time the rule takes effect. for temporary accommodation nearer to stakeholders, and effective evaluation base. This provision is not mandatory. and validation of the instituted policies. Generally, a certificate holder would The ARC unanimously recommended As a continuously improving system, need to demonstrate that its FRMS has that pilots be reminded of their existing the knowledge gained in developing and an education and awareness training obligations under part 91 to report to validating fatigue data should result in program; a fatigue reporting system; a work fit for duty, but that the FAA regular improvements in how the system for monitoring flightcrew impose no new requirements. The FAA certificate holder and its employees fatigue; a performance evaluation; and has tentatively rejected this approach. manage and mitigate fatigue. possibly an incident reporting process. Commuting is fundamentally a fitness No country has adopted FRMS as a The FAA issued advisory circular (AC) for duty issue. If a flightcrew member regulatory alternative. However, ICAO is 120–103 entitled Fatigue Risk commutes irresponsibly, it is possible actively considering requiring member Management Systems for Aviation that he or she may become fatigued. A states to implement some alternative Safety 51 on August 3, 2010 outlining the responsible commuter plans his or her means of compliance with existing types of data and processes a certificate commute to minimize its impact on his rules, and EASA has proposed requiring or her ability to get meaningful rest FRMS as an integral part of an 50 The FAA anticipates that all FRMS proposals shortly before flying, thus fulfilling the operator’s management system. would be evaluated and approved at headquarters proposed requirement that he or she Permitting FRMS as a regulatory by individuals within AFS–200 dedicated to reports for an FDP rested and prepared overseeing FRMS. alternative to today’s proposal is widely 51 You may view the AC at http://www.faa.gov/ to perform his or her assigned duty. supported by industry, with several regulations_policies/advisory_circulars/index.cfm/ The FAA considered proposing a organizations requesting that the FAA go/document.information/documentID/319218. requirement similar to the one in CAP–

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371 mandating that pilots arrive at the AC outlines the certificate holder’s under part 121, including the flight and pilot’s domicile airport in time to responsibility to ensure each flightcrew duty time regulations. receive the pre-flight rest period in that member is properly rested before 14 CFR 119.55 allows the FAA area prior to commencing flight. At first assigning that flightcrew member to any Administrator to authorize an air carrier blush, this approach has appeal, in that flight. That document has been placed who has a contract with AMC a it would require a flightcrew member to in the docket for this rulemaking. deviation to any part of part 119, 121, have an opportunity for rest Additionally, the proposed training or 135 for the operation under that immediately prior to commencing an program discussed earlier contains an contract. AMC reviews an air carrier’s FDP. However, because commuting element on the impact of commuting on request for a deviation and either constitutes an activity conducted by a fatigue. supports it or does not support it before pilot on his or her own time, it is AMC forwards the request to the FAA difficult to regulate. In addition, a strict N. Exception for Emergency and for a final decision. commuting regulation, such as one that Government Sponsored Operations 14 CFR 119.57 allows the FAA requires a pilot to report to a duty The ARC discussed various types of Administrator to authorize deviations station area well in advance of the supplemental operations that may not during an emergency under certain scheduled flight, would not necessarily be adequately addressed by the conditions. The FAA has used this result in more responsible commuting. proposed requirements.52 These authority in the past. For instance, an A pilot could choose to commute during operations range from moving armed OpSpec was used during Hurricane times that interfere with his or her troops for the U.S. military and Katrina to allow humanitarian flights WOCL (for example, taking a red eye for conducting humanitarian relief, into and out of New Orleans. This an afternoon flight), leaving him or her repatriation, Civil Reserve Air Fleet authority is issued on a case by case less rested for flight. This approach (CRAF), Air Mobility Command (AMC), basis during an emergency situation as could also discourage responsible and State Department missions. Many of determined by the Administrator. Neither of these current regulatory commuting. For example, today a these types of supplemental operations options fully address the needs of flightcrew member can catch a mid- fly into hostile areas, while others are carriers who occasionally need to morning flight to his or her duty station conducted into politically sensitive, exceed the allowable FDP (with and then commence his or her flying remote areas without rest facilities. The extensions) or who are operating under shortly after arrival a couple of hours ARC recognized the uniqueness of these later. The flightcrew member would contract to a U.S. government agency operations and noted that today some other than AMC. These operations are have received a full night of sleep, and AMC and emergency operations are would be in a much better position to distinguishable from tourism operations conducted under a deviation authority or operations where cargo shows up late work than the individual who had taken contained in 14 CFR 119.55 and 119. 57. an overnight or very early morning to the aircraft for loading. Currently, all flights operated by an flight. While the irresponsible The FAA recognizes that all carriers commuter would be available to fly by air carrier under contract with a U.S. could encounter circumstances that mid-afternoon, the mid-morning Government agency must comply with would require a flightcrew member to commuter would not be available to fly part 121 or part 135, including flight exceed the limits in the FDP, including until late evening, just as he or she is and duty time regulations. These extensions. The most likely scenario beginning to tire. operations include, but are not limited probably would be a diversion into an The FAA does believe that it is to: area where, for whatever reason, it unreasonable to assume that an • AMC contracts and other would not be safe for the crew or individual is resting while commuting. Department of Defense (DOD) contracts; passengers to stay. In addition, the FAA Accordingly, time spent commuting, • State Department contracts; recognizes that there is a public policy either locally or long-distance, is not • Department of Homeland Security interest in permitting the United States considered rest, and a certificate holder contracts, including FEMA, government to contract out certain will need to consider the commuting humanitarian flights and Immigration operations to air carriers. If these times required by individual flightcrew and Customs Enforcement deportations; operations were conducted on military members to ensure they can reach their and aircraft, the pilots would generally be subject to a 16-hour duty day, almost all home base while still receiving the • Department of Justice contract of which could be flight time. required opportunity for rest. This flights. approach is consistent with that taken Currently, if a military pilot flies a for transportation to and from a sleep Activation of the CRAF would allow similar operation into a hostile area and facility other than home discussed military use of civil aircraft. CRAF is must fly an aircraft out of theater due to activated by presidential order in a time a military exigency, and doing so would earlier in this document. 53 The FAA also believes it is of war. Under CRAF, air carriers are cause that pilot to exceed the military- inappropriate to simply rely on the required to operate their aircraft at the mandated flight and duty time limits, existing requirements in part 91 to direction of DOD. However, the that pilot can call his or her or her report to work fit for duty. The FAA activation of CRAF does not obviate the central command for permission to do believes a primary reason that pilots air carrier’s responsibility to operate so. A similar system, with FAA may engage in irresponsible commuting involvement, seems to make sense. In practices is a lack of education on what 52 The FAA notes that cost is not the critical the event that there is no time to call activities are fatiguing and how to factor since a regulatory impact on crew costs back to the air carrier, the captain’s would more than likely be passed on the mitigate developing fatigue. The FAA Department of Defense via the uniform rate process, emergency authority would allow the has developed a draft fitness for duty resulting in no increase in cost to the carrier. While captain to move the airplane to safety, AC that elaborates on the pilot’s crew costs are typically based on historical costs, with a report to the FAA. Likewise, the responsibility to be physically fit for the FAA has been informed that the uniform rate pilot in command is always authorized process is sufficiently flexible to allow projected flight prior to accepting any flight costs when the cost increase is the result of a to address emergency situations. assignment, which includes the pilot regulatory action. The concern of the FAA is not that being properly rested. Additionally, the 53 CRAF is currently not activated. circumstances may arise that require

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pilots to take emergency action, but contemplates that the air carrier will unnecessary obstacles to the foreign rather that air carriers should know that develop an FRMS if it cannot commerce of the United States; and (6) delays in certain operations for the U.S. restructure its operations so that only would impose an unfunded mandate on government are possible and plan very few of those operations continue to State, local, or tribal governments, or on accordingly. Air carriers should mitigate need the exception. Sections 119.55 and the private sector by exceeding the the chances of such an event, for 119.57 would remain unchanged and threshold identified above. These instance by staging crews at other used as they are today. analyses are summarized below. airports or installing rest facilities on (35) Are there other types of Benefits of the Rule the aircraft to allow augmentation, in operations that should be excepted from order to ensure that flight crews will not the general requirements of the During the past 20 years, there have exceed FDP limits. Fundamentally, a proposal? If so, what are they, and why been over 18 aviation accidents caused carrier needs to have performed do they need to be accommodated by pilot error where pilot fatigue was a adequate planning for the mission, absent an FRMS? factor. NTSB has identified five including having the appropriate accidents where the flight crew started onboard rest facilities or number of IV. Regulatory Notices and Analyses the day in a state of fatigue. We flightcrew members for the length of the Regulatory Impact Analysis, Regulatory statistically identified 4.6 accidents duty day, and the emergency should not Flexibility Determination, and where the flight crew became fatigued be self-induced. If a certificate holder Unfunded Mandates Assessment during a long flight-duty period (NTSB chooses not to equip an aircraft with cited pilot fatigue as a contributing Changes to Federal regulations must factor in three of those accidents). We adequate rest facilities, then the undergo several economic analyses. certificate holder should not be able to have also statistically estimated that First, Executive Order 12866 directs that claim an inability to comply with some of the 6.2 accidents that occurred each Federal agency shall propose or requirements because of the lack of between midnight and 6 a.m. involved adopt a regulation only upon a reasoned those facilities. some degree of pilot fatigue. Two of The FAA proposes to allow air determination that the benefits of the these have already been accounted for carriers operating commercial flights intended regulation justify its costs. in the previously discussed analyses. and who are not under contract with a Second, the Regulatory Flexibility Act There were also three accidents where U.S. government agency to ask for a of 1980 (Pub. L. 96–354) requires the pilot became fatigued due to being ‘‘one time deviation’’ to the FDP limits agencies to analyze the economic awake for many hours. Lastly, there under part 121 for a one time event in impact of regulatory changes on small were two accidents where chronic exceptional circumstances. Each event entities. Third, the Trade Agreements fatigue was a contributing factor. In of this type would be reported to the Act (Pub. L. 96–39) prohibits agencies summary, we project there would be at FAA. The number of ‘‘one time from setting standards that create least 18.8 accidents (13 passenger deviations’’ would be tracked by the unnecessary obstacles to the foreign airplane accidents and 5.8 cargo FAA, as would the rationale for needing commerce of the United States. In airplane accidents) during the next 20 the deviation. If the Administrator developing U.S. standards, the Trade years where pilot fatigue would be a determines that the carrier is relying Agreements Act requires agencies to contributing factor to the accident. excessively on this deviation authority, consider international standards and, Having projected the possible extent the air carrier would have to change its where appropriate, that they be the basis of fatigue based on the historical record, operations or develop an FRMS in order of U.S. standards. Fourth, the Unfunded we estimate the likelihood of accidents to mitigate the chances of such events Mandates Reform Act of 1995 (Pub. L. happening in the future using happening in the future. There would be 104–4) requires agencies to prepare a simulation techniques. We also use extra rest requirements after such an written assessment of the costs, benefits, simulation techniques to estimate future event. and other effects of proposed or final casualties, which we monetize. In this For operations under contract with a rules that include a Federal mandate way, we estimate the potential benefits U.S. government agency that cannot be likely to result in the expenditure by of the proposed rule. Finally, we model conducted consistent with the general State, local, or tribal governments, in the risk of fatigue for current pilot rules because of unique circumstances aggregate, or by the private sector, of schedules, and compute the number of (such as when operating into an SFAR $100 million or more annually (adjusted hours in higher risk categories with and area, or when there is a declared for inflation with base year of 1995). without the rule. The projected military exigency that necessitates This portion of the preamble reduction in fatigue exposure is operations outside the scope of what the summarizes the FAA’s analysis of the corroborating evidence supporting this regulation contemplates), a different economic impacts of this proposed rule. proposal. Pilot fatigue is a serious approach is proposed. Such operations The FAA suggests readers seeking problem. If nothing is done about this could be conducted under an exception greater detail read the full regulatory problem, we can expect from one to to the FDP and flight time limits, but not impact analysis, a copy of which the possibly six aviation accidents a year to the cumulative restrictions on FDP, agency has placed in the docket for this where pilot fatigue will be a flight time and duty. In addition, rulemaking. contributing factor. Pilot fatigue will be additional rest would be required and In conducting these analyses, the FAA a contributing factor in many accidents the carrier would have to demonstrate has determined that this proposed rule: that could potentially cost billions of why the operations could not have been (1) Has benefits that justify its costs, (2) dollars. adjusted to prevent exceeding the daily is an economically ‘‘significant Using simulation analysis, the mean limits. This could be done with a bi- regulatory action’’ as defined in section is 28.9 airplane accidents in a ten-year monthly reporting requirement. 3(f) of Executive Order 12866, (3) is period. These accidents would result in By tracking these events, the FAA can ‘‘significant’’ as defined in DOT’s a mean of 174.7 deaths. The estimated determine if the air carrier is properly Regulatory Policies and Procedures; (4) cost of these accidents would be a mean planning its operations and mitigating would have a significant economic value of $1.581 billion ($1.121 billion, the chances of its flight crews exceeding impact on a substantial number of small present value). These numbers represent the FDP limits. The proposed regulation entities; (5) would not create an estimate of the likely number of

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future accidents, deaths, and costs from The FAA’s Office of Accident passenger and cargo airplane accidents future accidents with fatigue as a factor. Investigation and Prevention (AVP) would be a mean value of $659.4 The above analysis establishes an rated each accident by conducting a million ($463.8 million, present value). scoring process similar to that estimate of the number and range of Cost of the Rule fatigue related accidents if no action is conducted by the Commercial Aviation taken to address the problem. It is Safety Team (CAST), a well documented The total estimated cost of the proposed rule is $1.25 billion ($804 seldom the case that a rule is 100 and well understood procedure. All the million present value using a seven percent effective at addressing an accidents that have had final National Transportation Safety Board (NTSB) percent discount rate) for the ten year identified problem. In particular, fatigue reports published have been scored period from 2013 to 2022. The FAA is rarely a primary or sole cause of an against the CAST safety enhancements. classified costs into four main accident, and therefore this rule, if When these accidents were not well components and estimated the costs for adopted, is not likely to prevent all defined in the probable cause or each component. We obtained data from future accidents that include fatigue as contributing factors statements of the various industry sources; the sources of a factor. NTSB reports, AVP used a Joint the data used in cost estimation are FAA reviewed all NTSB accident Implementation Monitoring Data explained in each section. We were very reports on part 121 accidents that Analysis Team (JIMDAT)-like method. fortunate that several carriers ran two occurred from 1990 through 2009 to Following this scoring, the proposed alternatives to the proposed rule assess the likely capacity of the NPRM rule would be 40 percent effective at through their crew scheduling to have averted those accidents. The preventing passenger airplane accidents programs. Their estimates provided FAA’s Office of Accident Investigation where pilot fatigue was a contributing some comparison data to calibrate and & Prevention assessed the effectiveness factor and would be 58 percent effective validate our costing approach. Without of this rule to prevent accidents like at preventing cargo airplane accidents their help, we would have likely missed those in the historical database. Most where pilot fatigue was a contributing some cost elements. The table below reports on major accidents (hull losses factor. Accordingly, the above estimate provides a summary of the four main or non-hull losses that resulted in of the benefits of avoiding passenger cost components. Flight operations cost multiple fatalities) provided extensive airplane accidents where pilot fatigue makes up about 60 percent of the total data on flight crews’ duty tours and was a causal factor have been reduced cost of the rule. Each of the main cost recent rest periods, which facilitated from their above stated values. The components are explained in-depth in relatively strong assessments. revised estimated benefits of avoiding the following sections of this document.

In addition to the costs presented in years. The FAA believes that about 35 Congress has directed the FAA to issue this table, there may be costs of a fatigue operators have at least partially adopted a rule addressing pilot fatigue. We have risk management system (FRMS). The an FRMS program at this time. The FAA validated the need for this rule in the FAA is not imposing an FRMS estimates the total cost would be $205.7 benefit discussion. Based on the programrequirement on Part 121 million ($144.9 million present value), expected effectiveness of this proposed carriers, but is allowing them the option which would be more than offset by a rule at preventing fatigue accidents with of developing and implementing such a reduction in crew scheduling costs. an averted fatality valued at $6 million, program. Operators might do this for Accordingly, the cost is not added to the the simulation methodology produced ultralong flights, which have flight time total costs imposed by this rule. The benefits of $659.4 million with $463.8 over 16 hours. Operators might develop FAA calls for comment on this aspect of million in present value. The total an FRMS program as an alternative to the proposal as it has not assigned a cost estimated costs of the proposed rule the flight and duty period rules to the cumulative maximums. over 10 years are $1.25 billion ($804 proposed by this rulemaking when the million at present value). There is over crew scheduling cost savings equal or Summary of Benefits and Costs a 7 percent probability that exceed the costs of the FRMS program. Following NTSB recommendations undiscounted cost of avertable The FAA estimates that an FRMS regarding pilot fatigue, labor and passenger airplane accidents would program would cost between $0.8 and industry worked together to provide the exceed $1.25 billion and over a 10 $10.0 million for each operator over ten basis of this rulemaking. Furthermore, percent probability the present value of

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the cost of avertable passenger airplane value of well rested pilots as accident scheduling alternatives and a training accidents would exceed $804 million. preventors and mitigators. Due to data alternative. Since crew scheduling costs The benefits from a near term limitations, the FAA was unable to comprised the largest share of costs, catastrophic accident in a 150-passenger estimate the cumulative effect of most of the alternative analysis focused airplane with average load factor preventing minor aircraft damage on the on these costs and these will be exceeds the cost of this rule. If $8.4 ground, but if the rule were to reduce discussed first. Alternatives were million were used for VSL, the damage by about $600 million over 10 selected using industry-proposed limits undiscounted benefits would be $837 years ($340 million present value) it resulting from the ARC, as well as FAA- million and the present value of those would break even in terms of net proposed limits. The table below benefits would be $589 million. When benefits using a $6 million VSL. These summarizes each of the alternatives. For the value of an averted fatality increases considerations lend weight towards each of the scheduling alternatives, FAA to $12.6 million, the present value of the moving ahead with this proposal. FAA developed a crew scheduling cost benefits equals the present value of invites comment on this issue. estimate using the same methodology as was used to determine the crew compliance costs. In addition, the FAA Alternatives Considered has identified two additional areas of scheduling costs of the proposed rule. unquantified benefits: preventing minor FAA examined a number of Summary of Crew Scheduling aircraft damage on the ground, and the alternatives to the proposed rule, Alternatives

Scenario A and processes. FAA also estimated the regulatory evaluation. Scenario A table costs of the same version of the below presents the annual crew FAA provided a sample of carriers proposed rule for the entire industry scheduling resource costs for the with a draft version of the proposed rule using the crew scheduling model and Scenario A alternative. As we were able in fall 2009. The carriers estimated the process outlined in the crew scheduling to accomplish our safety objectives at a cost of this version of the proposed rule costs sub-section of the flight operations lower cost, we rejected this alternative. using their own crew scheduling models cost section described in the full

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Scenario B The main difference was that the B table presents the final, adjusted crew FAA examined another, more minimum required rest for international scheduling resource costs of the restrictive version of the proposed rule. duty periods was eleven hours. Scenario Scenario B alternative.

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Summary of Crew Scheduling resource costs for the proposed rule and alternative and achieves the FAA safety Alternatives each of the alternatives. The proposed objectives. The summary table below provides rule represents the lowest-cost the ten-year total crew scheduling

Fatigue Training Cost Analysis of cost of the proposed rule. The FAA proposed rule. The table below shows Alternatives to the Proposed Rule examined two scenarios for fatigue the different fatigue training Fatigue training costs account for training requirements, ultimately requirements for each of the two approximately 20 percent of the total selecting the lower-cost scenario for the scenarios.

Scenario C Fatigue training was to take place in a As a result the costs are substantially The fatigue training requirements of classroom rather than through distance higher. The FAA reviewed the Scenario C differed significantly from learning, which would result in higher recommended training requirements the fatigue training requirements of the costs due to the need to pay instructors, and decided to reduce the initial proposed rule. The required number of and the need to provide hotel and per training requirements from 8 hours to 5 both initial and annual recurring fatigue diem compensation to flightcrew hours and reduce the recurrent training training hours was substantially higher. members receiving the fatigue training. hours from 4 to 2 hours.

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The FAA seeks comments on the • Description of reasons the agency is 121. There are 96 such operators of alternatives analysis conducted to considering the action which 45 operators have fewer than develop this proposal. In addition, it is • Statement of the legal basis and 1,500 employees. Among these 45 requesting comments on possible objectives for the proposed rule operators, 25 are small entities that approaches designed to reduce the costs • Description of the record keeping provide all air-cargo scheduled service of this rule while maintaining or and other compliance requirements of competing with larger operators, code- increasing the benefits. the proposed rule share passenger service for large • All federal rules that may duplicate, operators, and charter service. Regulatory Flexibility Determination overlap, or conflict with the proposed and Analysis rule Affordability • The Regulatory Flexibility Act of 1980 Description and an estimated The FAA expects wide variability in (RFA) establishes ‘‘as a principle of number of small entities to which the cost impacts on small entity operators. regulatory issuance that agencies shall proposed rule will apply The sample crew scheduling changes • Analysis of small firms’ ability to endeavor, consistent with the objective provide only a rough proxy for the afford the proposed rule of the rule and of applicable statutes, to impact on pilots’ time and availability. • Conduct a disproportionality fit regulatory and informational Current crew schedules vary by analysis operator, labor contract, and size of pilot requirements to the scale of the • Conduct a competitive analysis business, organizations, and • pools. The agency understands that Estimation of the potential for many smaller operators have maximized governmental jurisdictions subject to business closures regulation.’’ To achieve that principle, • their pilot time in the cockpit and may Description of alternatives have little flexibility with potential new the RFA requires agencies to solicit and considered consider flexible regulatory proposals flight and duty regulations. Operators and to explain the rationale for their Reasons the Rule Is Proposed needing to hire more pilots would incur actions. The RFA covers a wide-range of The objective of the proposed rule is the cost of hiring, wages, overhead, and small entities, including small to increase the margin of safety for training. Some captains from smaller businesses, not-for-profit organizations passengers traveling on U.S. part 121 air operators could be lured away by other and small governmental jurisdictions. carrier flights. Specifically, the FAA operators, especially the larger operators with better benefit packages. That Agencies must perform a review to wants to decrease diminished flight outcome might be mitigated by the determine whether a proposed or final crew performance associated with recent extension of pilots being able to rule would have a significant economic fatigue or lack of alertness brought on by work to age 65 and the inherent the duty requirements for flightcrew impact on a substantial number of small flexibility of the larger carriers. entities. If the determination is that it members. The FAA requests that small entity would, the agency must prepare a The Legal Basis and Objectives operators provide estimated impacts of regulatory flexibility analysis as The legal basis for the proposed rule the proposed changes on their existing described in the RFA. crew schedules. The FAA requests that However, if an agency determines that is found in 49 U.S.C. Section 44701 et seq. Specifically 49 U.S.C. Section all comments be accompanied by clear a proposed or final rule is not expected supporting data. For now the agency to have a significant economic impact 44701 (a)(4) requires the Administrator to promote safe flight of civil aircraft in expects some small operators would on a substantial number of small likely need to hire more pilots. This entities, section 605(b) of the RFA air commerce by prescribing regulations in the interest of safety for the increase in the demand for pilots may provides that the head of the agency eventually raise pilot wages. Based on may so certify and a regulatory maximum hours or periods of service of airmen and other employees or air small operators who would need to hire flexibility analysis is not required. The more pilots and the resulting pressure certification must include a statement carriers. Among other matters the FAA must consider as a matter of policy the on overall wages, there could be a providing the factual basis for this significant economic impact. determination, and the reasoning should maintaining and enhancing of safety in be clear. air commerce as its highest priority (49 Disproportionality Analysis The FAA believes that this proposed U.S.C. Section 40101(d)). Part 121 operators would need to rule would have a significant economic The Projected Reporting, provide more rest for pilots which impact on a substantial number of small Recordkeeping, and Other Compliance overall could result in the need to hire entities and therefore has performed an Requirements of this NPRM more pilots. The proposed changes to initial regulatory flexibility analysis as This proposed rule would increase flight and duty time would be more required by the RFA. The Small reporting and recordkeeping. In difficult to accommodate for operators Business Administration small entity addition to changes in crew schedules, with small pilot staffs. While the criterion for small air carrier operators there would be a minor increase in changes to flight and duty may be is 1,500 or fewer employees. The FAA documenting crew rest. measured in hours per week for invites comment from affected small operators with small, fully employed entities and others to aid us to make an All Federal Rules That May Duplicate, staffs, such changes can be difficult to assessment of these impacts. In Overlap, or Conflict With the Proposed accommodate. To be in compliance with particular, the FAA invites more Rule the proposed changes small airlines may information on the financial stability There are no Federal Rules that may need a fraction of a new pilot’s time to and competitive positions of small duplicate, overlap, or conflict with the meet requirements. In this case, the entities. proposed rule. airline would need to hire and train an additional pilot or reduce the number of Initial Regulatory Flexibility Analysis Description and an Estimated Number operations. This added pilot would Under Section 603(b) of the RFA, the of Small Entities account for a larger percentage of the initial regulatory flexibility analysis The proposed rule would apply to all cost of pilots for the small airline than must address: certificate holders operating under part is likely to be the case for a major

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airline. The FAA believes that this may Business Closure Analysis Title II apply. The alternatives be the case for many small operators. Even if there is a disproportionate considered by the FAA are discussed Moreover, the smaller the operator, the impact and a loss in competitive above in the Summary of Benefits and more likely this situation will occur. positioning does not mean a firm would Costs section. Thus, the proposed rule is likely to have have to close because of this proposed Paperwork Reduction Act a disproportionate economic impact on rule. While small entity operators are small entities. This proposal contains the following likely to experience a significant new information collection Competitiveness Analysis economic impact, changes to crew requirements. As required by the schedules are difficult to assess. Further Paperwork Reduction Act of 1995 (44 The competitiveness analysis complicating this business closure examines whether a small airline is U.S.C. 3507(d)), the FAA has submitted analysis are the external changes as the information requirements associated under a competitive disadvantage from upswings in traffic demand or declines the implementation of the proposed with this proposal to the Office of in the price of fuel quickly improve the Management and Budget for its review. rule. This proposed rule would impose bottom-line. significant costs on some small entities, Title: Flightcrew Member Duty and The FAA solicits comments from the Rest Requirements. and as a result it is likely to worsen such aviation community regarding the entities relative competitive position. Summary: The FAA is proposing data likelihood of business closure. As noted collection from air carriers certificated A major criterion in a competitiveness previously, the FAA requests that all under Title 14 Code of Federal Aviation analysis is the ability of an airline to comments include supporting data. Regulations (14 CFR) part 121 as pass on the costs imposed by the rule to prescribed in 14 CFR part 117, Flight their customers. The extent to which an Alternatives Considered and Duty Limitations and Rest airline can pass costs on to its customers In accordance with the RFA, the FAA Requirements: Flightcrew Members. is determined by the elasticity of considered alternatives to the proposed Two sections in the proposal drive this demand of the service by the customer. rule to mitigate or eliminate significant requirement, 14 CFR part 117, § 117.7 The elasticity of demand for a product economic impacts on small entities. Schedule Reliability and § 117.31 is a measure of the responsiveness to Alternative One—The FAA is Operations in Unsafe Areas. In price that consumers have in their promulgating this rule because the accordance with these two sections, buying habits. The elasticity of demand status quo alternative subjects the each affected air carrier is required to is defined as the percentage change in society to an unacceptably high aviation submit a report to the FAA detailing: quantity demanded resulting from a 1 accident risk. • Schedule reliability for each air percent change in price. If the demand Alternative Two—The FAA carrier ongoing reportable of 2-month for airline travel is relatively elastic, considered extending the compliance intervals, then the airlines would have less time, but again the purpose of this • For those air carriers conducting capacity to transfer the added cost of the proposed rule is to reduce the accident operations under contract for the United rule to their passengers without losing risk and postponing the compliance States Government and exceeding the significant revenue. For operators with period extends this risk. proposed requirements, ongoing a niche market, the demand for their Alternative Three—The FAA did reportable periods of 2-month intervals, services will be less elastic and more of consider expanding the rule to include and the cost can be transferred. For instance, part 135 operators. All or nearly all of • For those air carriers conducting specialty cargo carriers have niche these operators are small entities. As the operations not under contract for the markets and some ability to pass on economic impact may be more severe, United States Government and costs. Other operators would have little the agency wants to study the impact on exceeding the proposed requirements, flexibility. In the most extreme case are these operators before proposing a within 14 days of each occurrence, the operators who provide scheduled rulemaking. air carrier relied on the relief granted service for larger carriers generally The FAA has tentatively determined under § 117.31 to reposition the aircraft under contract. Overall the that there are no reasonable alternatives to a safe region. disproportionate impact is likely to to this rulemaking that would lessen the Use of: Maintaining schedule weaken small entity operators’ potential impact on a substantial reliability is a critical element to fatigue competitive situation, but the FAA is number of small entities. The agency mitigation. Air carriers build flight unable to provide a measure of how seeks comment on this assessment. schedules projected to meet the much. constraints of individual FDP. If, Unfunded Mandates Assessment While the preceding discussion points however, actual flight time exceeds the out potential impacts of the proposed Title II of the Unfunded Mandates projected (scheduled) flight time, the rule on the competitiveness of small Reform Act of 1995 (Pub. L. 104–4) validity of the air carrier’s scheduling entities, the FAA is uncertain about this requires each Federal agency to prepare process may come into question. This impact on the level of competition a written statement assessing the effects proposal places accountability upon within the U.S. airline industry. The of any Federal mandate in a proposed or each air carrier with regard to their FAA has very little firm-specific flight final agency rule that may result in an scheduling practices and provides a crew schedule data and route structure expenditure of $100 million or more (in means for the FAA to oversee the market data to refine this analysis and 1995 dollars) in any one year by State, reliability of the air carrier’s scheduling asks commenters to provide information local, and tribal governments, in the process relative to the flightcrew on the impact this proposed rule would aggregate, or by the private sector; such members actual FDP as opposed to the have on the continued capacity of small a mandate is deemed to be a ‘‘significant flightcrew member’s scheduled FDP. airlines to compete in their current regulatory action.’’ The FAA currently The proposal defines a flight duty markets. The FAA invites comment uses an inflation-adjusted value of period as a period that begins when a from affected airlines and other parties $143.1 million in lieu of $100 million. flightcrew member is required to report that might better inform the agency on This proposed rule contains such a for duty that includes a flight, a series this competitiveness issue. mandate; therefore, the requirements of of flights, or positioning flights, and

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ends when the aircraft is parked after information requirement are part 121 Fatigue Training: $0. the last flight and there is no intention certificate holders. Fatigue Risk Management Systems: for further aircraft movement by the Frequency: The FAA estimates each $0. same flightcrew member. If the air part 121 certificate holder will need to e Difference: $44,547. carrier’s system-wide actual FDPs provide schedule reliability data every Scheduling and Schedule Reliability exceed the scheduled flight by more two months. Certificate holders Reporting: $497. regularly providing service to the than five (5) percent or any actual FDP Fatigue Training: $23,420. that exceeds the pairing-specific United States government into unsafe Fatigue Risk Management Systems: schedule by more than twenty (20) areas may need to file reports as often $20,630. percent, the air carrier will be required as every two months. The FAA to make adjustments to its schedule anticipates that certificate holders The agency is soliciting comments factoring in the actual time exceeded in would only rarely need to fly into to— order to reflect a more realistic schedule unsafe areas for reasons other than in (1) Evaluate whether the proposed based upon actual data. Under the support of U.S. government operations information requirement is necessary for proposal, each air carrier must make and estimates that fewer than five such the proper performance of the functions scheduling reliability adjustments to its reports would be filed each year. of the agency, including whether the schedule any time the aforementioned Annual Burden Estimate: information will have practical utility; limitations have been exceeded. This proposal would result in an (2) Evaluate the accuracy of the Additionally, each air carrier must annual recordkeeping and reporting agency’s estimate of the burden; submit an ongoing report on 2-month burden as follows: (3) Enhance the quality, utility, and intervals detailing its overall schedule a. Number of respondents: 92. clarity of the information to be reliability and pairing-specific Scheduling and Schedule Reliability collected; and reliability. Reporting: 92. (4) Minimize the burden of collecting This proposal provides relief for air b. Total annual responses: 552. information on those who are to (92 carriers reporting 6 times each carriers conducting operations into × respond, including by using appropriate year: 92 6 = 552) automated, electronic, mechanical, or unsafe areas and repositioning the Scheduling and schedule reliability other technological collection aircraft to another region for safety or a reporting: 552. techniques or other forms of information safe location where another crew can 1. Percentage of these responses technology. relieve the current crew from duty. As collected electronically: 100%. a result, these circumstances may result Scheduling and Schedule Reliability Individuals and organizations may in a flightcrew member’s FDP being Reporting: 100%. send comments on the information exceeded for the day. The proposed c. Total annual hours requested: 4,416 collection requirement by November 15, section grants the air carrier authority to hours. 2010, and should direct them to the operate beyond the limits of the (92 air carriers requiring 1 employee address listed in the Addresses section flightcrew’s FDP to the extent of 8 hours to complete report: at the end of this preamble. Comments reaching a safe location where the crew 92 × 1 × 8 = 4,416 hours). also should be submitted to the Office must be relieved and/or go into required Scheduling and schedule reliability of Management and Budget, Office of rest. However, by exercising such relief, reporting: 4,416. Information and Regulatory Affairs, the air carrier must report the d. Current OMB inventory: 0 hours. Attention: Desk Officer for FAA, New occurrence to the FAA. The reporting Scheduling and schedule reliability Executive Building, Room 10202, 725 requirements are different for air reporting: 0. 17th Street, NW., Washington, DC carriers operating under a contract with e. Difference: 4,416 hours. 20053. the United States Government and those Scheduling and Schedule Reliability According to the 1995 amendments to who are not. Reporting: 4,416. the Paperwork Reduction Act (5 CFR Air carriers under contract with the Annual reporting and recordkeeping 1320.8(b)(2)(vi)), an agency may not United States Government must submit cost burden (in thousands of dollars) collect or sponsor the collection of a report every sixty (60) days detailing a. Total annualized capital/startup information, nor may it impose an the number of times during the costs: $20,645. information collection requirement reporting period the air carrier relied on Scheduling and Schedule Reliability unless it displays a currently valid OMB this relief, and for each occurrence, the Reporting: $15. control number. The OMB control reason for exceeding the FDP, the extent Fatigue Training. number for this information collection Fatigue Risk Management Systems: the FDP was exceeded and the reason will be published in the Federal $20,630. the operation could not be completed Register, after the Office of Management b. Total annual cost ((O&M): $23,902. consistent with part 117. If an air carrier Scheduling and Schedule Reliability and Budget approves it. does not rely on the proposed relief, Reporting: $482. Executive Order 13132, Federalism there would be no obligation to report. Fatigue Training: $23,420. If the air carrier is not under contract Fatigue Risk Management Systems: The FAA has analyzed this proposed with the United States Government and $0. rule under the principles and criteria of relies on the proposed relief, it must c. Total annualized costs requested: Executive Order 13132, Federalism. The submit a report within fourteen (14) $44,547. agency has determined that this action days of each occurrence detailing the Scheduling and Schedule Reliability would not have a substantial direct reason the FDP was exceeded, the extent Reporting: $497. effect on the States, on the relationship the FDP was exceeded and the reason Fatigue Training: $23,420. between the national Government and the operation could not be completed Fatigue Risk Management Systems: the States, or on the distribution of consistent with part 117. $20,630. power and responsibilities among the Respondents (including number of): d. Current OMB inventory: $0. various levels of government, and, The number of likely respondents is 92. Scheduling and Schedule Reliability therefore, would not have federalism The likely respondents to this proposed Reporting: $0. implications.

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Environmental Analysis confidential business information. Send The Proposed Amendment Environmental Analysis FAA Order or deliver this information directly to In consideration of the foregoing, the 1050.1E identifies FAA actions that are the legal contact person identified in the Federal Aviation Administration categorically excluded from preparation FOR FURTHER INFORMATION CONTACT proposes to amend Chapter I of Title 14, of an environmental assessment or section of this document. You must Code of Federal Regulations, as follows: environmental impact statement under mark the information that you consider 1. Part 117 is added to read as follows: the National Environmental Policy Act proprietary or confidential. If you send in the absence of extraordinary the information on a disk or CD ROM, PART 117—FLIGHT AND DUTY circumstances. The FAA has mark the outside of the disk or CD ROM LIMITATIONS AND REST determined this proposed rulemaking and also identify electronically within REQUIREMENTS: FLIGHTCREW action qualifies for the categorical the disk or CD ROM the specific MEMBERS exclusion identified in paragraph 312f information that is proprietary or confidential. Sec. and involves no extraordinary 117.1 Applicability. circumstances. Under 14 CFR 11.35(b), when the 117.3 Definitions. FAA is aware of proprietary information Regulations That Significantly Affect 117.5 Fitness for duty. filed with a comment, the agency does 117.7 Fatigue risk management system. Energy Supply, Distribution, or Use not place it in the docket. It is held in 117.9 Schedule reliability. The FAA has analyzed this NPRM a separate file to which the public does 117.11 Fatigue education and training under Executive Order 13211, Actions not have access, and a note is placed in program. Concerning Regulations that the docket that the agency has received 117.13 Flight time limitation. 117.15 Flight duty period: Un-Augmented Significantly Affect Energy Supply, it. If the agency receives a request to Distribution, or Use (May 18, 2001). The operations. examine or copy this information, it 117.17 Flight duty period: Split duty. agency has determined that it is not a treats it as any other request under the 117.19 Flight duty period: Augmented ‘‘significant energy action’’ under the Freedom of Information Act (5 U.S.C. flightcrew. executive order because while a 552). The FAA processes such a request 117.21 Reserve status. ‘‘significant regulatory action’’ under under the DOT procedures found in 49 117.23 Cumulative duty limitations. Executive Order 12866, it is not likely CFR part 7. 117.25 Rest period. to have a significant adverse effect on 117.27 Consecutive nighttime operations. the supply, distribution, or use of Availability of Rulemaking Documents 117.29 Deadhead transportation. energy. 117.31 Operations into unsafe areas. An electronic copy of rulemaking Table A to Part 117—Maximum Flight Time Additional Information documents may be obtained using the Limits for Un-Augmented Operations Internet by— Comments Invited: Table B to Part 117—Flight Duty Period: Un- The FAA invites interested persons to 1. Searching the Federal eRulemaking Augmented Operations Portal (http://www.regulations.gov); Table C to Part 117—Flight Duty Period: participate in this rulemaking by Augmented Operations submitting written comments, data, or 2. Visiting the FAA’s Regulations and views. It also invites comments relating Policies web page at http:// Authority: 49 U.S.C. 106(g), 40113, 40119, to the economic, environmental, energy www.faa.gov/regulations_policies/; or 44101, 44701–44702, 44705, 44709–44711, or federalism impacts that might result 3. Accessing the Government Printing 44713, 44716–44717, 44722, 46901, 44903– 44904, 44912, 46105. from adopting the proposals in this Office’s Web page at http:// document. The most helpful comments www.gpoaccess.gov/fr/index.html. § 117.1 Applicability. reference a specific portion of the Alternatively, a copy may be This part prescribes flight and duty proposal, explain the reason for any requested directly from the FAA by limitations and rest requirements for all recommended change, and include sending a request to the Federal flightcrew members and certificate supporting data. To ensure the docket Aviation Administration, Office of holders conducting operations under does not contain duplicate comments, Rulemaking, ARM–1, 800 Independence part 121 of this chapter. This part also please send only one copy of written Avenue, SW., Washington, DC 20591, or applies to all flightcrew members and comments, or if filing comments by calling (202) 267–9680. Make sure to part 121 certificate holders when electronically, please submit your identify the docket number or notice conducting flights under part 91 of this comments only one time. number of this rulemaking. chapter. The FAA will file in the docket all All documents the FAA considered in comments we receive, as well as a developing this proposed rule, § 117.3 Definitions. report summarizing each substantive including economic analyses and In addition to the definitions in §§ 1.1 public contact with FAA personnel technical reports, are located in the and 119.3 of this chapter, the following concerning this proposed rulemaking. docket for this rulemaking and may be definitions apply to this part. In the Before acting on this proposal, the viewed on the internet through the event there is a conflict in definitions, agency will consider all comments we Federal eRulemaking Portal referenced the definitions in this part control. receive on or before the closing date for in paragraph (1). Acclimated means a condition in comments. It will consider comments which a crewmember has been in a filed after the comment period has List of Subjects theater for 72 hours or has been given closed if it is possible to do so without 14 CFR Part 117 at least 36 consecutive hours free from incurring expense or delay. The FAA duty. may change this proposal in light of the Airmen, Aviation safety, Reporting Airport/standby reserve means a comments we receive. and recordkeeping requirements, Safety. defined duty period during which a 14 CFR Part 121 crewmember is required by a certificate Proprietary or Confidential Business holder to be at, or in close proximity to, Information Air carriers, Aircraft, Airmen, an airport for a possible assignment. Do not file in the docket information Aviation safety, Reporting and Augmented flightcrew means a that you consider to be proprietary or recordkeeping requirements, Safety. flightcrew that has more than the

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minimum number of flightcrew segment without an intervening which the crewmember is free from all members required by the airplane type required rest period, training conducted restraint by the certificate holder, certificate to operate the aircraft to allow in an aircraft, flight simulator or flight including freedom from present a flightcrew member to be replaced by training device, and airport/standby responsibility for work should the another qualified flightcrew member for reserve. occasion arise. in-flight rest. Home base means the location Scheduled means times assigned by a Calendar day means a 24-hour period designated by a certificate holder where certificate holder when a crewmember from 0000 through 2359. a crew member normally begins and is required to report for duty. Certificate holder means a person who ends his or her duty periods. Schedule reliability means the holds or is required to hold an air Lineholder means a flightcrew accuracy of the length of a scheduled carrier certificate or operating certificate member who has a flight schedule and flight duty period as compared to the issued under part 119 of this chapter. is not acting as a reserve flightcrew actual flight duty period. Crew pairing means a flight duty member. Short-call reserve means a period of period or series of flight duty periods Long-call reserve means a reserve time in which a crewmember does not assigned to a flightcrew member which period in which a crewmember receives receive a required rest period following originate or terminate at the flightcrew a required rest period following notification by the certificate holder to member’s home base. notification by the certificate holder to report for a flight duty period. Deadhead transportation means report for duty. Split duty means a flight duty period transportation of a crewmember as a Physiological night’s rest means the that has a scheduled break in duty that passenger, by air or surface rest that encompasses the hours of 0100 is less than a required rest period. transportation, as required by a and 0700 at the crewmember’s home Suitable accommodation means a certificate holder, excluding base, unless the individual has temperature-controlled facility with transportation to or from a suitable acclimated to a different theater. If the sound mitigation that provides a accommodation. crewmember has acclimated, the rest crewmember with the ability to sleep in Duty means any task, other than long- must encompass the hours of 0100 and a bed and to control light. call reserve, that a crewmember 0700 at the acclimated location. Theater means a geographical area performs on behalf of the certificate Report time means the time that the where local time at the crewmember’s holder, including but not limited to certificate holder requires a flight duty period departure point and airport/standby reserve, short-call crewmember to report for a duty period. arrival point differ by no more than 4 reserve, flight duty, pre- and post-flight Reserve availability period means a hours. duties, administrative work, training, duty period during which a certificate Unforeseen operational circumstance deadhead transportation, aircraft holder requires a reserve crewmember means an unplanned event beyond the positioning on the ground, aircraft on short call reserve to be available to control of a certificate holder of loading, and aircraft servicing. receive an assignment for a flight duty insufficient duration to allow for Duty period means a period that period. adjustments to schedules, including begins when a certificate holder requires Reserve duty period means the time unforecast weather, equipment a crewmember to report for duty and from the beginning of the reserve malfunction, or air traffic delay. ends when that crew member is free availability period to the end of an Window of circadian low means a from all duties. assigned flight duty period, and is period of maximum sleepiness that Fatigue means a physiological state of applicable only to short call reserve. occurs between 0200 and 0559 during a reduced mental or physical performance Reserve flightcrew member means a physiological night. capability resulting from lack of sleep or flightcrew member who a certificate increased physical activity that can holder requires to be available to receive § 117.5 Fitness for duty. reduce a crewmember’s alertness and an assignment for duty. (a) Each flightcrew member must ability to safely operate an aircraft or Rest facility means a bunk, seat, room, report for any flight duty period rested perform safety-related duties. or other accommodation that provides a and prepared to perform his or her Fatigue risk management system crewmember with a sleep opportunity. assigned duties. (FRMS) means a management system for (1) Class 1 rest facility means a bunk (b) No certificate holder may assign an operator to use to mitigate the effects or other surface that allows for a flat and no flightcrew member may accept of fatigue in its particular operations. It sleeping position and is located separate assignment to a flight duty period if the is a data-driven process and a from both the flight deck and passenger flightcrew member has reported for a systematic method used to continuously cabin in an area that is temperature- flight duty period too fatigued to safely monitor and manage safety risks controlled, allows the crewmember to perform his or her assigned duties or if associated with fatigue-related error. control light, and provides isolation the certificate holder believes that the Fit for duty means physiologically from noise and disturbance. flightcrew member is too fatigued to and mentally prepared and capable of (2) Class 2 rest facility means a seat safely perform his or her assigned performing assigned duties in flight in an aircraft cabin that allows for a flat duties. with the highest degree of safety. or near flat sleeping position; is (c) No certificate holder may permit a Flight duty period (FDP) means a separated from passengers by a flightcrew member to continue a flight period that begins when a flightcrew minimum of a curtain to provide duty period if the flightcrew member member is required to report for duty darkness and some sound mitigation; has reported himself too fatigued to with the intention of conducting a and is reasonably free from disturbance continue the assigned flight duty period. flight, a series of flights, or positioning by passengers or crewmembers. (d) Any person who suspects a or ferrying flights, and ends when the (3) Class 3 rest facility means a seat flightcrew member of being too fatigued aircraft is parked after the last flight and in an aircraft cabin or flight deck that to perform his or her duties during flight there is no intention for further aircraft reclines at least 40 degrees and provides must immediately report that movement by the same flightcrew leg and foot support. information to the certificate holder. member. A flight duty period includes Rest period means a continuous (e) Once notified of possible deadhead transportation before a flight period determined prospectively during flightcrew member fatigue, the

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certificate holder must evaluate the length of each set of crew pairings and § 117.13 Flight time limitation. flightcrew member for fitness for duty. the regulatory limit on such pairings; No certificate holder may schedule The evaluation must be conducted by a (2) The actual length of each set of and no flightcrew member may accept person trained in accordance with crew pairings, and an assignment or continue an assigned § 117.11 and must be completed before (3) The percentage of discrepancy flight duty period if the total flight time: the flightcrew member begins or between the two data sets on both a (a) Will exceed the limits specified in continues an FDP. cumulative, and a pairing-specific basis. Table A of this part if the operation is (f) As part of the dispatch or flight conducted with the minimum required release, as applicable, each flightcrew § 117.11 Fatigue education and training program. flightcrew. member must affirmatively state he or (b) Will exceed 16 hours if the she is fit for duty prior to commencing (a) Each certificate holder must develop and implement an education operation is conducted with an flight. augmented flightcrew. (g) Each certificate holder must and training program, approved by the develop and implement an internal Administrator, applicable to all § 117.15 Flight duty period: Un-augmented evaluation and audit program approved employees of the certificate holder operations. responsible for administering the by the Administrator that will monitor (a) Except as provided for in § 117.17, provisions of this rule including whether flightcrew members are no certificate holder may assign and no flightcrew members, dispatchers, reporting for FDPs fit for duty and flightcrew member may accept an individuals involved in the scheduling correct any deficiencies. assignment for an unaugmented flight of flightcrew members, individuals operation if the scheduled flight duty § 117.7 Fatigue risk management system. involved in operational control, and any period will exceed the limits in Table B employee providing management (a) No certificate holder may exceed of this part. any provision of this part unless oversight of those areas. (b)(1) Initial training for all (b) If the flightcrew member is not approved by the FAA under a Fatigue acclimated: Risk Management System that provides individuals listed in paragraph (a) of (1) The maximum flight duty period at least an equivalent level of protection this section must consist of at least 5 in Table B of this part is reduced by 30 against fatigue-related accidents or programmed hours of instruction in the minutes. incidents as the other provisions of this subjects listed in paragraph (b)(3) of this part. section. (2) The applicable flight duty period (b) The Fatigue Risk Management (2) Recurrent training for all is based on the local time at the System must include: individuals listed in paragraph (a) of flightcrew member’s home base. (1) A fatigue risk management policy. this section must be given on an annual (c) In the event unforeseen (2) An education and awareness basis and must consist of 2 programmed circumstances arise: training program. hours of instruction in the subjects (1) The pilot in command and (3) A fatigue reporting system. listed in paragraph (b)(3) of this section. certificate holder may extend a flight (4) A system for monitoring flightcrew (3) The fatigue education and training duty period up to 2 hours. fatigue. program must include information on— (2) An extension in the flight duty (5) An incident reporting process. (i) FAA regulatory requirements for period exceeding 30 minutes may occur (6) A performance evaluation. flight, duty and rest and NTSB only once in any 168 consecutive hour (c) Whenever the Administrator finds recommendations on fatigue period, and never on consecutive days. that revisions are necessary for the management. § 117.17 Flight duty period: Split duty. continued adequacy of an FRMS that (ii) Basics of fatigue, including sleep has been granted final approval, the fundamentals and circadian rhythms. For a split duty period, a certificate certificate holder must, after (iii) Causes of fatigue, including holder may extend and a flightcrew notification, make any changes in the possible medical conditions. member may accept a flight duty period program deemed necessary by the (iv) Effect of fatigue on performance. up to 50 percent of time that the Administrator. (v) Fatigue countermeasures. flightcrew member spent in a suitable (vi) Fatigue prevention and accommodation up to a maximum flight § 117.9 Schedule reliability. mitigation. duty period of 12 hours provided the (a) Each certificate holder must adjust (vii) Influence of lifestyle, including flightcrew member is given a minimum within 60 days — nutrition, exercise, and family life, on opportunity to rest in a suitable (1) Its system-wide flight duty periods fatigue. accommodation of 4 hours, measured if the total actual flight duty periods (viii) Familiarity with sleep disorders from the time the flightcrew member exceed the scheduled flight duty and their possible treatments. reaches the rest facility. periods more than 5 percent of the time, (ix) Responsible commuting. and (x) Flightcrew member responsibility § 117.19 Flight duty period: Augmented (2) Any scheduled flight duty period for ensuring adequate rest and fitness flightcrew. that is shown to actually exceed the for duty. The flight duty period limits in schedule 20 percent of the time. (xi) Operating through and within § 117.15 may be extended by (b) Each certificate holder must multiple time zones. augmenting the flightcrew. submit a report detailing the scheduling (c) Whenever the Administrator finds (a) For flight operations conducted reliability adjustments required in that revisions are necessary for the with an acclimated augmented paragraph (a) of this section to the FAA continued adequacy of a fatigue flightcrew, no certificate holder may every two months detailing both overall education and training program that has assign and no flightcrew member may schedule reliability and pairing-specific been granted final approval, the accept an assignment if the scheduled reliability. Submissions must consist of: certificate holder must, after flight duty period will exceed the limits (1) The carrier’s entire crew pairing notification, make any changes in the specified in Table C of this part. schedule for the previous 2-month program that are deemed necessary by (b) If the flightcrew member is not period, including the total anticipated the Administrator. acclimated:

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(1) The maximum flight duty period (ii) The assigned flight duty period, as circadian low, in which case the shift in Table C of this part is reduced by 30 measured from the start of the flight may not exceed 3 hours. minutes. duty period; or (3) A shift to an earlier reserve period (2) The applicable flight duty period (iii) The flight duty period in Table B may not occur on any consecutive is based on the local time at the of this part plus 4 hours, as measured calendar days. flightcrew member’s home base. from the beginning of the reserve (4) The total shifts in a reserve (c) No certificate holder may assign availability period. availability period in paragraphs (e)(1) and no flightcrew member may accept (iv) If all or a portion of a reserve through (e)(3) of this section may not an assignment under this section unless flightcrew member’s reserve availability exceed a total of 12 hours in any 168 during the flight duty period: period falls between 0000 and 0600, the consecutive hours. (1) Two consecutive hours are certificate holder may increase the § 117.23 Cumulative duty limitations. available for in-flight rest for the maximum reserve duty period in flightcrew member manipulating the paragraph (c)(4)(iii) of this section by (a) The limitations of this section on controls during landing; one-half of the length of the time during flightcrew members apply to all (2) A ninety minute consecutive the reserve availability period in which commercial flying by the flightcrew period is available for in-flight rest for the certificate holder did not contact the member during the applicable periods. each flightcrew member; and flightcrew member, not to exceed 3 (b) No certificate holder may schedule (3) The last flight segment provides an hours. and no flightcrew member may accept opportunity for in-flight rest in (5) The maximum reserve duty period an assignment if the flightcrew accordance with paragraph (c)(1) of this for augmented operations is the lesser member’s total flight time will exceed section. of— the following: (d) No certificate holder may assign (i) The assigned flight duty period, as (1) 100 hours in any 28 consecutive and no flightcrew member may accept measured from the start of the flight calendar day period and an assignment involving more than duty period; or (2) 1,000 hours in any 365 three flight segments under this section (ii) The flight duty period in Table C consecutive calendar day period. (c) No certificate holder may schedule unless the certificate holder has an of this part plus 4 hours, as measured and no flightcrew member may accept approved fatigue risk management from the beginning of the reserve an assignment if the flightcrew system under § 117.7. availability period. member’s total Flight Duty Period will (e) At all times during flight, at least (iii) If all or a portion of a reserve flightcrew member’s reserve availability exceed: one flightcrew member with a PIC type- (1) 60 flight duty period hours in any period falls between 0000 and 0600, the rating must be alert and on the flight 168 consecutive hours and certificate holder may increase the deck. (2) 190 flight duty period hours in any maximum reserve duty period in (f) In the event unforeseen 672 consecutive hours. circumstances arise: paragraph (c)(5)(ii) of this section by (d) Except as provided for in (1) The pilot in command and one-half of the length of the time during paragraph (d)(3) of this section, no certificate holder may extend a flight the reserve availability period in which certificate holder may schedule and no duty period up to 3 hours. the certificate holder did not contact the flightcrew member may accept an (2) An extension in the flight duty flightcrew member, not to exceed 3 assignment if the flightcrew member’s period exceeding 30 minutes may occur hours. total duty period will exceed: only once in any 168 consecutive hour (d) For long call reserve, (1) 65 duty hours in any 168 period. (1) The period of time that the consecutive hours and flightcrew member is in a reserve status § 117.21 Reserve status. (2) 200 duty hours in any 672 does not count as duty. consecutive hours. (a) Unless specifically designated (2) If a certificate holder contacts a (3) If a flightcrew member is assigned otherwise by the certificate holder, all flightcrew member to assign him or her to short-call reserve or a certificate reserve is considered long-call reserve. to a flight duty period or a short call holder transports a flightcrew member (b) For airport/standby reserve, all reserve, the flightcrew member must in deadhead transportation in, at a time spent in a reserve status is part of receive the required rest period minimum, a seat in aircraft cabin that the flightcrew member’s flight duty specified in § 117.25 prior to reporting allows for a flat or near flat sleeping period. for the flight duty period or position, the total duty period may not (c) For short call reserve, commencing the short call reserve duty. exceed: (1) All time within the reserve (3) If a certificate holder contacts a (i) 75 duty hours in any 168 availability period is duty. flightcrew member to assign him or her consecutive hours and (2) The reserve availability period to a flight duty period that will begin (ii) 215 duty hours in any 672 may not exceed 14 hours. before and operate into the flightcrew consecutive hours. (3) No certificate holder may schedule member’s window of circadian low, the (4) Extension of the duty period under and no reserve flightcrew member on flightcrew member must receive a 12 paragraph (d)(3) of this section is short call reserve may accept an hour notice of report time from the air limited to the amount of time spent on assignment of a flight duty period that carrier. short-call reserve or in deadhead begins before the flightcrew member’s (e) An air carrier may shift a reserve transportation. next reserve availability period unless flightcrew member’s reserve availability the flightcrew member is given at least period under the following conditions: § 117.25 Rest period. 14 hours rest. (1) A shift to a later reserve (a) No certificate holder may assign (4) The maximum reserve duty period availability period may not exceed 12 and no flightcrew member may accept for un-augmented operations is the hours. assignment to any reserve or duty with lesser of— (2) A shift to an earlier reserve the certificate holder during any (i) 16 hours, as measured from the availability period may not exceed 5 required rest period. beginning of the reserve availability hours, unless the shift is into the (b) Before beginning any reserve or period; flightcrew member’s window of flight duty period, a flightcrew member

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must be given at least 30 consecutive § 117.29 Deadhead transportation. actual flight duty period or 24 hours, hours free from all duty in any 168 (a) All time spent in deadhead whichever is less. consecutive hour period, except that: transportation is considered part of a (d) No extension of the cumulative (1) If a flightcrew member crosses duty period. fatigue limitations in § 117.3 is more than four time zones during a (b) Time spent in deadhead permitted. series of flight duty periods that exceed transportation is considered part of a (e) If the operation was conducted 168 consecutive hours, the flightcrew flight duty period if it occurs before a under contract with an agency or member must be given a minimum of flight segment without an intervening department of the United States three physiological nights rest upon required rest period. Government, each affected air carrier return to home base. (c) Time spent entirely in deadhead must submit a report every 60 days (2) A flightcrew member operating in transportation during a duty period may detailing the— a new theater must receive 36 hours of not exceed the flight duty period in (1) Number of times in the reporting consecutive rest in any 168 consecutive Table B of this part for the applicable period it relied on this section to hour period. time of start plus 2 hours unless the conduct its operations. (c) No certificate holder may reduce a flightcrew member is given a rest period (2) For each occurrence, rest period more than once in any 168 equal to the length of the deadhead (i) The reasons for exceeding the consecutive hour period. transportation but not less than the applicable flight duty period; (d) No certificate holder may schedule required rest in § 117.25 upon (ii) The extent to which the applicable and no flightcrew member may accept completion of such transportation. flight duty period was exceeded; and an assignment for reserve or a flight (iii) The reason the operation could duty period unless the flightcrew § 117.31 Operations into unsafe areas. not be completed consistent with the member is given a rest period of at least (a) This section applies to operations requirements of this part. 9 consecutive hours before beginning that cannot otherwise be conducted (f) If the operation was not conducted the reserve or flight duty period under this part because of unique under contract with an agency or measured from the time the flightcrew circumstances that could prevent Department of the United States member reaches the hotel or other flightcrew members from being relieved Government, each affected air carrier suitable accommodation. by another crew or safely provided with must submit a report within 14 days of (e) In the event of unforeseen the rest required under § 117.25 at the each occurrence detailing— circumstances, the pilot in command end of the applicable flight duty period. and certificate holder may reduce the 9 (1) The reasons for exceeding the consecutive hour rest period in (b) A certificate holder may exceed applicable flight duty period; paragraph (d) of this section to 8 the maximum applicable flight duty (2) The extent to which the applicable consecutive hours. periods to the extent necessary to allow flight duty period was exceeded; and the flightcrew to fly to a destination (3) The reason the operation could not § 117.27 Consecutive nighttime where they can safely be relieved from be completed consistent with the operations. duty by another flightcrew or can requirements of this part. No certificate holder may schedule receive the requisite amount of rest (g) Should the Administrator and no flightcrew member may accept prior to commencing their next flight determine that a certificate holder is more than three consecutive nighttime duty period. relying on the provisions on this flight duty periods unless the certificate (c) The flightcrew shall be given a rest section, the Administrator may require holder provides an opportunity to rest period immediately after reaching the the certificate holder to develop and during the flight duty period in destination described in paragraph (b) of implement a fatigue risk management accordance with § 117.17. this section equal to the length of the system.

TABLE A TO PART 117—MAXIMUM FLIGHT TIME LIMITS FOR UNAUGMENTED OPERATIONS

Time of start Maximum flight time (Home base) (hours)

0000–0459 ...... 8 0500–0659 ...... 9 0700–1259 ...... 10 1300–1959 ...... 9 2000–2359 ...... 8

TABLE B TO PART 117—FLIGHT DUTY PERIOD: UNAUGMENTED OPERATIONS

Time of start Maximum flight duty period (hours) (Home base or for lineholders based on number of flight segments acclimated) 1 2 3 4 5 6 7+

0000–0359 ...... 9 9 9 9. 9 9 9 0400–0459 ...... 10 10 9 9 9 9 9 0500–0559 ...... 11 11 11 11 10 9.5 9 0600–0659 ...... 12 12 12 12 11.5 11 10.5 0700–1259 ...... 13 13 13 13 12.5 12 11 1300–1659 ...... 12 12 12 12 11.5 11 10.5 1700–2159 ...... 11 11 10 10 9.5 9 9 2200–2259 ...... 10.5 10.5 9.5 9.5 9 9 9

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TABLE B TO PART 117—FLIGHT DUTY PERIOD: UNAUGMENTED OPERATIONS—Continued

Time of start Maximum flight duty period (hours) (Home base or for lineholders based on number of flight segments acclimated) 1 2 3 4 5 6 7+

2300–2359 ...... 9.5 9.5 9 9 9 9 9

TABLE C TO PART 117—FLIGHT DUTY PERIOD: AUGMENTED OPERATIONS

Maximum flight duty period (hours) based on rest facility and number of pilots Time of start (local time) Class 1 rest facility Class 2 rest facility Class 3 rest facility 3 Pilots 4 Pilots 3 Pilots 4 Pilots 3 Pilots 4 Pilots

0000–0559 ...... 14 16 13 14.5 12 12.5 0600–0659 ...... 15 17.5 14 15.5 13 13.5 0700–1259 ...... 16 18 15.5 17 14 14.5 1300–1659 ...... 15 17.5 14 15.5 13 13.5 1700–2359 ...... 14 16 13 14.5 12 12.5

PART 121—OPERATING Subpart Q [Removed and Reserved] Subpart S [Removed and Reserved] REQUIREMENTS: DOMESTIC, FLAG, AND SUPPLEMENTAL OPERATIONS 3. Remove and reserve subpart Q, 5. Remove and reserve subpart S, consisting of §§ 121.470 and 121.471. consisting of §§ 121.500 through 2. The authority citation for part 121 121.525. continues to read as follows: Subpart R [Removed and Reserved] Issued in Washington, DC on September 3, 2010. Authority: 49 U.S.C. 106(g), 40113, 40119, 4. Remove and reserve subpart R, Raymond Towles, 44101, 44701–44702, 44705, 44709–44711, consisting of §§ 121.480 through 44713, 44716–44717, 44722, 46901, 44903– Acting Director, Flight Standards Service, 121.493. Aviation Safety. 44904, 44912, 46105. [FR Doc. 2010–22626 Filed 9–10–10; 4:15 pm] BILLING CODE 4910–13–P

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Part III

Federal Housing Finance Agency 12 CFR Parts 1249 and 1282 2010–2011 Enterprise Housing Goals; Enterprise Book-entry Procedures; Final Rule

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FEDERAL HOUSING FINANCE (202) 414–8952 or Lyn Abrams, mortgages.4 Specifically, Congress AGENCY Attorney, Office of General Counsel, established the Enterprises to provide (202) 414–8951. These are not toll-free stability in the secondary market for 12 CFR Parts 1249, 1282 numbers. The mailing address for each residential mortgages, respond RIN 2590–AA26 contact is: Federal Housing Finance appropriately to the private capital Agency, Fourth Floor, 1700 G Street, market, provide ongoing assistance to 2010–2011 Enterprise Housing Goals; NW., Washington, DC 20552. The the secondary market for residential Enterprise Book-entry Procedures telephone number for the mortgages, and promote access to Telecommunications Device for the mortgage credit throughout the nation.5 AGENCY: Federal Housing Finance Hearing Impaired is (800) 877–8339. Agency. SUPPLEMENTARY INFORMATION: B. Statutory and Regulatory Background ACTION: Final rule. I. Background Prior to HERA, the Safety and Soundness Act provided the Secretary SUMMARY: Section 1128(b) of the A. Establishment of FHFA Housing and Economic Recovery Act of of HUD with specific authority to 2008 (HERA) amended the Federal Effective July 30, 2008, HERA establish, monitor and enforce Housing Enterprises Financial Safety amended the Safety and Soundness Act affordable housing goals for the and Soundness Act of 1992 (Safety and to create FHFA as an independent Enterprises.6 HUD issued regulations 1 Soundness Act) to provide for the agency of the federal government. establishing affordable housing goals for establishment, monitoring and HERA transferred the safety and the Enterprises, which were periodically enforcement of new housing goals soundness supervisory and oversight updated, most recently in 2004, when effective for 2010 and 2011 for the responsibilities over the Enterprises HUD established new housing goal Federal National Mortgage Association from the Office of Federal Housing levels for 2005 through 2008.7 HUD’s (Fannie Mae) and the Federal Home Enterprise Oversight (OFHEO) to FHFA. regulations provided for the housing Loan Mortgage Corporation (Freddie HERA also transferred the charter goal levels for 2008 to continue in effect Mac) (collectively, the Enterprises). compliance authority and responsibility in 2009 and each year thereafter until Section 1332(a) of the Safety and to establish, monitor and enforce the replaced by new annual housing goals Soundness Act, as amended by HERA, affordable housing goals for the established by HUD.8 In August 2009, requires the Federal Housing Finance Enterprises from the Department of FHFA issued a final rule that adopted Agency (FHFA) to establish three single- Housing and Urban Development (HUD) many of the existing housing goals to FHFA. FHFA is responsible for family owner-occupied purchase money provisions in a new part 1282 of title 12 ensuring that the Enterprises operate in mortgage goals and one single-family of the Code of Federal Regulations. As a safe and sound manner, including refinancing mortgage goal. Section authorized by section 1331(c) of the maintenance of adequate capital and 1333(a) of the Safety and Soundness Act Safety and Soundness Act, as amended, internal controls, that their operations requires FHFA to establish one the final rule also revised the levels of and activities foster liquid, efficient, multifamily special affordable housing the existing affordable housing goals in competitive, and resilient national goal, as well as providing for a light of current market conditions.9 housing finance markets, and that they multifamily special affordable housing carry out their public policy missions The Safety and Soundness Act, as subgoal. This final rule establishes new through authorized activities.2 amended by HERA, requires the housing goals for 2010 and 2011, Section 1302 of HERA provides, in Director of FHFA to establish new consistent with the Safety and part, that all regulations, orders and housing goals effective for 2010 and Soundness Act, as amended. The final determinations issued by the Secretary beyond. The new housing goals include rule also revises and updates the rules of HUD (Secretary) with respect to the four goals for single-family, owner- for counting mortgages for purposes of Secretary’s authority under the Safety occupied housing, one multifamily the housing goals to ensure clarity and and Soundness Act, the Federal special affordable housing goal, and one consistency with the new goals. In National Mortgage Association Charter multifamily special affordable housing addition, the final rule includes Act and the Federal Home Loan subgoal.10 The single-family housing provisions regarding reporting Mortgage Corporation Act (together, the goals target purchase money mortgages requirements and book-entry Charter Acts), shall remain in effect and for low-income families, families that procedures. be enforceable by the Secretary or the reside in low-income areas, and very DATES: This rule is effective October 14, Director of FHFA, as the case may be, low-income families, and refinancing 2010. until modified, terminated, set aside or mortgages for low-income families.11 FOR FURTHER INFORMATION CONTACT: superseded by the Secretary or the The multifamily special affordable Nelson Hernandez, Senior Associate Director, any court, or operation of law. housing goal targets multifamily Director, Housing Mission and Goals, The Enterprises continue to operate housing affordable to low-income Office of Housing and Community under regulations promulgated by families, and the multifamily special Investment, (202) 408–2819, Brian OFHEO and HUD until FHFA issues its affordable housing subgoal targets Doherty, Manager, Housing Mission and own regulations.3 The Enterprises are multifamily housing affordable to very 12 Goals, Office of Housing and government-sponsored enterprises low-income families. Community Investment, (202) 408– (GSEs) chartered by Congress for the 2991, Paul Manchester, Principal purpose of establishing secondary 4 See 12 U.S.C. 1716 et seq.; 12 U.S.C. 1451 et seq. Economist, Housing Mission and Goals, market facilities for residential 5 Id. 6 Office of Housing and Community See 12 U.S.C. 4561 et seq. (2008). 7 See 24 CFR part 81 (2008). Investment, (202) 408–2946, Sharon 1 See Division A, titled the ‘‘Federal Housing Finance Regulatory Reform Act of 2008,’’ Title I, 8 See 24 CFR 81.12 through 81.14 (2008). Like, Managing Associate General § 1101, Public Law 110–289, 122 Stat. 2654 (2008), 9 See 74 FR 39873 (Aug. 10, 2009). Counsel, Office of General Counsel, codified at 12 U.S.C. 4501 et seq. 10 See 12 U.S.C. 4561 and 4563(a)(2). (202) 414–8950, Kevin Sheehan, 2 See 12 U.S.C. 4513. 11 See 12 U.S.C. 4562. Attorney, Office of General Counsel, 3 See HERA at section 1302, 122 Stat. 2795. 12 See 12 U.S.C. 4563.

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C. Conservatorship financial research organization, one counting toward achievement of the individual, and both Enterprises. housing goals. Five commenters were in On September 6, 2008, the Director of In the proposed rule, FHFA proposed favor of excluding private label FHFA appointed FHFA as conservator measuring the Enterprises’ single-family securities from the housing goals, of the Enterprises in accordance with performance against specified although Freddie Mac favored inclusion the Safety and Soundness Act, as benchmark levels and against the if due diligence is conducted. A few amended by HERA, to maintain the primary mortgage market. FHFA other commenters suggested the use of Enterprises in a safe and sound financial received 11 comment letters on this Regulation Z and the Home Ownership condition. The Enterprises remain proposal, all in support of the two-part and Equity Protection Act (HOEPA) under conservatorship at this time. approach. Most of the trade rather than interagency guidance to Although the Enterprises’ substantial associations, as well as the Enterprises, determine goals eligibility. Commenters market presence has been a key step to recognized the difficulty of forecasting also suggested that FHFA explicitly restoring market stability, neither the mortgage market in the current exclude from the housing goals economic environment and were company would be capable of serving mortgages with other characteristics receptive to the alternative the mortgage market today without the such as low teaser rates, interest-only measurements. ongoing financial support provided by options, negative amortization, reduced the U.S. Department of Treasury. Fannie Seven commenters supported the proposed benchmark levels for the documentation, and second liens. One Mae has drawn $85.1 billion and commenter expressed support for the Freddie Mac has drawn $63.1 billion in single-family home purchase goals. These commenters also supported the provision that allows FHFA discretion Treasury support under the Senior to enumerate additional unacceptable Preferred Stock Purchase Agreements, new separate low-income families refinancing goal. The Enterprises did terms and conditions that constitute over $148 billion in total. Under the unacceptable mortgages. terms of the Senior Preferred Stock not object to the mortgage purchase goal Purchase Agreements, the Enterprises levels, but were concerned that the low- FHFA has considered all of the will be shrinking their retained income refinancing goal was set too comments on the proposed rule and has mortgage portfolio by ten percent per high. One trade association stated that determined to adopt a final rule that year. The Administration has the mortgage purchase goal levels were makes certain revisions to the proposed announced its intention to develop and set at only 50 to 60 percent of Enterprise rule, as described in detail below. present to Congress a plan for the future purchases in 2008 and should be higher. Comments that raised issues beyond the The multifamily housing goal levels of the nation’s housing finance system scope of the proposed rule are not were supported generally by four that will include a proposal for the addressed in this final rule, but may be commenters, although two commenters ultimate resolution of the Enterprises in considered by FHFA at a future date. noted that the multifamily market may conservatorship. Administration and be difficult to measure. Eight III. Summary of Final Rule congressional leadership have each commenters did not support the pointed to the coming year as likely to multifamily housing goal levels. Six A. Modification of Housing Goal see action affecting the Enterprises’ commenters stated that the goal levels Structure future form and function. While reliance were too low, and that the Enterprises The final rule modifies the structure on the Treasury Department’s backing should be required to provide more will continue until legislation produces of the housing goals in accordance with assistance to the multifamily market. On HERA’s revisions to the Safety and a final resolution to the Enterprises’ the other hand, the Enterprises Soundness Act. HUD established overall future, FHFA is monitoring the commented that demand for housing goals for 2005–2008 that activities of the Enterprises to: (a) Limit multifamily financing is too weak to combined an Enterprise’s purchases of their risk and exposure by avoiding new support the proposed goal levels, and mortgages on single-family housing, lines of business; (b) ensure profitability that they should be set lower. in the new book of business without The proposed rule invited comment multifamily housing, purchase money deterring market participation or on whether there should be housing mortgages, and refinancing mortgages. hindering market recovery; and (c) goals established for mortgages secured FHFA adjusted the levels of these minimize losses on the mortgages by small multifamily properties, in overall goals for 2009. These goals are already on their books. addition to reporting requirements. Five revised for 2010 and 2011 to include four separate goals and one subgoal for II. Proposed Rule commenters supported the proposed reporting requirements, and urged purchases of single-family mortgages On February 26, 2010, FHFA FHFA to also establish small and one goal and one subgoal for published in the Federal Register a multifamily housing goals. The purchases of multifamily mortgages. To proposed rule to establish new housing commenters stated that the small carry out the requirements of HERA goals for the Enterprises. The 45-day multifamily market is an underserved regarding designated disaster areas comment period closed April 12, 2010. market segment, and assistance is while continuing to provide a focus on See 75 FR 9034 (Feb. 26, 2010). FHFA needed in smaller communities. Three low-income and high minority received a total of 29 comment letters on commenters, including both Enterprises, concentration census tracts, the final the proposed rule. Eight of the comment stated that reporting on small rule establishes both a low-income areas letters were from real estate multifamily properties was appropriate, home purchase goal and subgoal. As in professionals and addressed seller but they discouraged a small the proposed rule, the final rule concessions in real estate transactions, multifamily housing goal at this time provides for a retrospective, market- an issue that is not applicable to this given the state of the multifamily market based assessment of the achievement by rulemaking. The remaining 21 comment and the financial condition of the the Enterprises of their housing goals as letters were from 11 trade associations, Enterprises. well as the traditional prospective, two not-for-profit organizations, two Eight commenters addressed the benchmark goals approach. These policy advocacy groups, one proposed standards for exclusion of changes are described in more detail corporation, one government entity, one certain mortgage purchases from below.

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B. Adjustment of Home Purchase and purchase subgoal included families in ‘‘extremely low-income,’’ ‘‘low-income,’’ Refinancing Goal Levels, and census tracts with incomes up to 90 and ‘‘moderate-income,’’ and revises the Multifamily Goal and Subgoal Levels percent of AMI. income levels in the definition of ‘‘very Consistent with the proposed rule, the Although this final rule establishing low-income.’’ The final rule also final rule provides that Enterprise goal the new housing goals is effective in replaces the definition of ‘‘low-income ’’ ‘‘ performance under each of the single- mid-2010, FHFA will evaluate area with a new definition for families ’’ family housing goals shall be measured performance under the housing goals in low-income areas. Each of these using a fraction of qualifying mortgage established for 2010 on a calendar year definitions is revised to be substantially purchases as a percent of total mortgage basis. the same as the corresponding definition in section 1303 of the Safety purchases. Neither the numerator nor C. New Counting Requirements and Soundness Act, as amended by the denominator includes Enterprise In accordance with HERA, and HERA.13 transactions or activities that are not consistent with the proposed rule, the Consistent with the proposed rule, mortgage purchases as defined by FHFA final rule counts only conventional § 1282.1 of the final rule adds new or that are specifically excluded as loans for purposes of the single-family definitions for ‘‘borrower income,’’ ineligible under § 1282.16(b). The final housing goals. This means that certain ‘‘FEMA,’’ ‘‘HMDA,’’ ‘‘minority census rule establishes separate single-family Federal Housing Administration (FHA) tract,’’ ‘‘mortgage revenue bond,’’ ‘‘non- goals for home purchase mortgages and loans that previously counted toward metropolitan area,’’ ‘‘owner-occupied refinancing mortgages. This differs from the goals, such as Home Equity housing,’’ ‘‘private label security,’’ and previous treatment, which combined Conversion Mortgages (HECMs), will no ‘‘purchase money mortgage.’’ The new Enterprise purchases of home purchase longer be counted. Second liens, which definitions are intended to reflect and refinancing mortgages for the also counted toward the goals in the common usage and provide certainty in overall goals. interpreting the terms as used in new Consistent with the proposed rule, the past, will now be excluded from counting for purposes of the single- and existing regulatory provisions. final rule bases the 2010–2011 The definition of ‘‘contract rent,’’ multifamily goals on the numbers of family and multifamily housing goals. Consistent with the proposed rule, the consistent with the proposed rule, is affordable dwelling units financed, final rule provides that mortgages revised to make clear that the market rather than specifying such goals in financing rental units in investor-owned rent for similar units in the minimum dollar terms. The special single-family properties, which were neighborhood, as used by the lender or affordable multifamily subgoal in effect previously included in the goals, are no appraiser in underwriting a property, prior to 2010 applied to purchases of longer counted for purposes of the may be used as the anticipated rent for mortgages on housing for families with housing goals. Rental units in 2–4 unit unoccupied units. As in the proposed incomes below 60 percent of area owner-occupied single-family properties rule, the final rule adds language to the median income (AMI) and for families will continue to be counted. However, definition of ‘‘utilities’’ clarifying that with incomes between 60 percent and FHFA will continue to monitor the charges for cable or telephone service 80 percent of AMI living in low-income Enterprises’ purchases of such shall not be included. In addition, the areas. The overall multifamily goal for mortgages with regard to rental units in final rule adopts the proposed 2010–2011 is somewhat broader in its both 2–4 unit owner-occupied housing clarification that Metropolitan Divisions coverage than the previous special and investor-owned 1–4 unit rental are included in the definition of affordable multifamily goal, applying to housing. ‘‘metropolitan area’’ to facilitate mortgages on housing for families with comparisons with census and HMDA incomes no greater than 80 percent of IV. Analysis of Final Rule information. As in the proposed rule, AMI, regardless of location. However, A. Definitions—§ 1282.1 the final rule removes unnecessary the 2010–2011 very low-income references to the form of payment from multifamily subgoal is targeted to As in the proposed rule, the final rule the definition of ‘‘mortgage purchase.’’ households with significantly lower includes a number of technical Consistent with the proposed rule, the incomes. The qualifying household amendments to conform the definitions final rule removes the definition of income for purposes of the 2010–2011 to the statutory definitions in the Safety ‘‘refinancing’’ and incorporates those multifamily subgoal is at or below 50 and Soundness Act, as amended by provisions in a new definition of percent of AMI. HERA. ‘‘refinancing mortgage.’’ The final rule Consistent with the proposed rule, the Consistent with the proposed rule, also provides for the exclusion of most final rule provides that the 2010–2011 § 1282.1 of the final rule removes a workout agreements from the definition low-income home purchase and number of definitions that were used in of ‘‘refinancing.’’ The proposed rule refinancing goals target households with regulatory provisions that were revised omitted this provision to avoid lower incomes than the previous low- or eliminated based on HERA’s confusion over whether a transaction and moderate-income goal. The amendments of the Safety and should be treated as a loan modification previous low- and moderate-income Soundness Act. Specifically, § 1282.1 of or a refinancing. The final rule includes goal included families with incomes at the final rule no longer includes the provision to maintain consistency or below 100 percent of AMI. Under the definitions for ‘‘central city,’’ ‘‘ECOA,’’ with the prior definition of final rule, the low-income home ‘‘government-sponsored enterprise, or ‘‘refinancing’’ under the housing goals. purchase goal and refinancing goal GSE,’’ ‘‘home purchase mortgage,’’ ‘‘New Mortgage. Consistent with the include only families with incomes no England,’’ ‘‘ongoing program,’’ ‘‘other proposed rule, the final rule removes greater than 80 percent of AMI. underserved area,’’ ‘‘owner-occupied personal property (chattel) loans on Consistent with the proposed rule, the unit,’’ ‘‘portfolio of loans,’’ ‘‘real estate manufactured housing from the final rule provides that the 2010–2011 mortgage investment conduit (REMIC),’’ definition of ‘‘mortgage,’’ with the result low-income areas home purchase goal ‘‘rural area,’’ ‘‘underserved area,’’ and that such purchases would not qualify includes families in census tracts with ‘‘wholesale exchange.’’ for credit under the housing goals. incomes up to 80 percent of AMI, while As in the proposed rule, § 1282.1 of the previous underserved areas home the final rule adds new definitions of 13 12 U.S.C. 4502.

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Two trade associations, both for the and subprime mortgages. This change is practices evolve, FHFA may determine manufactured housing industry, intended to cover similar types of additional terms and conditions to be maintained that the Enterprises should mortgages while providing greater unacceptable. be more active in the area of personal consistency between the provisions of Families in low-income areas. property loans. One commented that the housing goals and other regulatory Consistent with the proposed rule, the Enterprise purchases of these loans provisions. new definition of ‘‘families in low- provide much-needed liquidity to FHFA received several comments on income areas’’ in the final rule includes lenders, lower borrowing costs, and the proposed definition of ‘‘mortgages families with incomes at or below 100 ensure the continued availability of this with unacceptable terms or conditions,’’ percent of AMI who reside in form of affordable housing. The other both supporting and opposing particular ‘‘designated disaster areas.’’ The commented that the unavailability of terms or conditions. One commenter proposed rule defined ‘‘designated purchase-money financing effectively noted that the definition does not disaster areas’’ as areas at the census discriminates against manufactured explicitly exclude subprime loans. One tract level and included only census homes and consumers, and also trade association objected to the tracts in counties approved for contravenes federal housing policy inclusion of prepaid single-premium individual assistance within the contained in the Manufactured Housing credit life insurance products, and declared major disaster area where the Improvement Act of 2000. recommended that the rule specifically average real property damage severity, The final rule does not revise the allow mortgages where the insurance as reported by the Federal Emergency proposed definition of ‘‘mortgage’’ to premiums are calculated and paid on a Management Agency (FEMA), exceeds include personal property loans on monthly basis and are not financed by $1,000 per household for that census manufactured housing. The Enterprises the lender. Another trade association tract. have minimal experience with chattel commented that FHFA should Fannie Mae commented that the rule financing, and the high level of defaults strengthen the terms and conditions that language should reflect the Community related to such financing creates constitute unacceptable mortgages, and Reinvestment Act (CRA) criteria for significant credit and operational risks. recommended the use of Regulation Z designated disaster areas. For purposes The depreciation in the value of the and HOEPA rather than interagency of complying with the CRA, regulators manufactured home could result in guidance. A policy advocacy group have determined that ‘‘[e]xaminers will greater loss to the Enterprise in the supported requiring the Enterprises to consider institution activities related to event of default on the loan. The role of follow interagency guidance, but noted disaster recovery that revitalize or the Enterprises in the market for that the current regulatory guidance stabilize a designated disaster area for personal property loans on may not be sufficient. This commenter 36 months following the date of manufactured housing is the subject of cautioned that FHFA should not designation. Where there is a FHFA final rulemaking on the duty to surrender its independent authority to demonstrable community need to serve requirements of HERA. FHFA may restrict the Enterprises from engaging in extend the period for recognizing revise the definition of ‘‘mortgage’’ in abusive and unsafe lending practices. revitalization or stabilization activities future rulemaking to ensure One trade association supported the in a particular disaster area to assist in conformance with the final regulation provision that allows FHFA to long-term recovery efforts, this time on duty to serve. Until that time, determine other additional unacceptable period may be extended.’’ 14 purchases of personal property loans on terms and conditions because markets In response to this comment and to manufactured housing will not be and abusive practices evolve. Fannie ensure efficiency in implementation, the counted as mortgage purchases for Mae noted that its single-family final rule draws on the CRA criteria for purposes of the housing goals. underwriting guidelines are already designated disaster areas. Section Mortgage with unacceptable terms or consistent with the interagency 1282.1 of the final rule provides that a conditions. Consistent with the guidance. designated disaster area will include (1) proposed rule, the final rule removes In the final rule, the definition of any county designated by the federal the definitions for ‘‘mortgages contrary ‘‘mortgages with unacceptable terms or government as adversely affected by a to good lending practices’’ and conditions’’ does not explicitly exclude declared major disaster under FEMA’s ‘‘mortgages with unacceptable terms or all subprime loans, but loans with any administration, (2) where individual conditions or resulting from of the listed terms or conditions are assistance payments were authorized by unacceptable practices,’’ and revises and excluded from counting towards the FEMA. Section 1282.12(e) of the final consolidates their substantive goals. Mortgages with prepaid single- rule establishes an overall low-income provisions into a single new definition premium credit life insurance products, areas goal that includes families in low- of ‘‘mortgage with unacceptable terms or for example, which have adverse effects income census tracts, moderate-income conditions.’’ The definition of ‘‘mortgage on borrowers, continue to be excluded families in minority census tracts, and with unacceptable terms or conditions’’ from counting, as they have in the past. moderate-income families in designated includes a new provision regarding While the final rule specifically disaster areas. Section 1282.12(f) of the mortgages with annual percentage rates references interagency guidance on final rule also establishes a low-income (APRs) above a certain level. The new subprime and nontraditional loans, areas subgoal that includes only families provision is intended to cover mortgages FHFA expects the Enterprises to ensure in low-income census tracts and that were formerly included in the that mortgage loans they acquire comply moderate-income families in minority definition of ‘‘HOEPA mortgage.’’ The with Regulation Z and HOEPA, as well census tracts. Both the overall goal and definition of ‘‘HOEPA mortgage’’ is as any federal law related to minimum the subgoal include a benchmark level revised to conform FHFA’s definition to standards for mortgages and predatory and a market-based assessment. The the coverage in HOEPA itself. The lending. While compliance with these provision in the definition of ‘‘mortgage and other applicable laws is expected, 14 The Department of the Treasury, the Federal with unacceptable terms or conditions’’ FHFA retains its independent authority Reserve Board and the Federal Deposit Insurance Corporation, Community Reinvestment Act; relating to a borrower’s ability to pay is to restrict the Enterprises from engaging Interagency Questions and Answers Regarding replaced with a provision incorporating in abusive and unsafe lending practices. Community Reinvestment; Notice, 74 FR 509 (Jan. interagency guidance on nontraditional Accordingly, as markets and abusive 6, 2009).

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benchmark levels for both the overall revised and expanded those goals in advance. The forecasts developed by goal and the subgoal are set based on a 1995,17 2000,18 and 2004.19 Multi-year HUD were based on the assumption of market analysis that is similar to the goals were established in the 1993 a ‘‘home purchase market environment,’’ analysis that was used for the proposed housing goals rule for 1993–94 a market environment in which rule. The benchmark level for the (subsequently extended to 1995), in the purchase mortgages dominate over subgoal is set at 13 percent. The 1994 housing goals rule for 1996–99 refinancing mortgages. However, when benchmark level for the overall goal will (with the goal levels for 1999 continuing market conditions result in higher than be set annually by FHFA notice based in effect for 2000), in the 2000 housing average refinance activity, the actual on the subgoal benchmark level plus an goals rule for 2001–03 (with the goal market goal-qualifying shares can be amount that reflects the impact of levels for 2003 continuing in effect for significantly different from the forecast designated disaster areas in the most 2004), and in the 2004 housing goals because the actual refinance share recent year for which data is available. rule for 2005–08.20 would dominate. A second reason for The market-based assessment for both In each case, the numerical goals were the divergence between forecasted and the overall goal and the subgoal will use established up to four years in advance. actual shares of goal-qualifying units in the designated disaster areas from the The goals were set as specific minimum the primary mortgage market is the year for which performance is goal-qualifying percentages of all variation in the affordability of housing, measured, as will the measurement of dwelling units financed by mortgages such as measured by the National the Enterprises’ performance each year. acquired by each Enterprise in a given Association of Realtors (NAR) housing To accommodate the Enterprises’ year, except for the special affordable affordability index. If the price of a business planning requirements, for multifamily subgoal, which was set as a product or service declines, it is more purposes of the low-income areas minimum dollar volume for purchases affordable to the consumer. In this housing goal, the final rule, consistent of goal-qualifying loans. In the 2004 respect, housing is no different from any with the proposed rule, treats a final rule, HUD added three single- other product. A third reason for designated disaster area as effective family home purchase subgoals, which divergence is the variance in the size of beginning on the January 1 after the were similarly established as specific the multifamily mortgage market over FEMA designation of the county and minimum goal-qualifying percentages of time. Under the previous goals counting continuing through December 31 of the all home purchase mortgages financed regime, multifamily units played a third full calendar year following the by the Enterprises on owner-occupied significant role in whether an Enterprise FEMA designation. If data is available in properties in metropolitan statistical met the goals. A fourth reason for the a particular case to support treatment as areas (MSAs). divergence is the change in the size of a designated disaster area from an HUD set the goals for 1993–2008 the share of the mortgage market earlier date or for a longer period of based on the six factors as specified in accounted for by Federal Housing time, FHFA may provide for such the Safety and Soundness Act. The most Administration (FHA) and Department treatment by notice to the Enterprises. important factors were past performance of Veterans Affairs (VA) mortgages. As on the goals and, especially for the discussed below, the market share of B. Housing Goals—§§ 1282.11 through home purchase subgoals, HUD’s mortgages insured by FHA increased 1282.13 estimates of the goal-qualifying shares of dramatically in recent years. As required by sections 1331(a) and home purchase mortgages in the As measured after the fact, HUD’s 1333(a)(2) of the Safety and Soundness primary mortgage market on properties market estimates often differed Act, as amended by HERA, and in MSAs. For the overall goals, HUD’s significantly from the actual goal- consistent with the proposed rule, this estimates of the goal-qualifying shares of qualifying shares of the primary market. subpart of the final rule establishes, for all dwelling units financed in the Specifically, the actual low- and 2010 and 2011, four single-family primary market by the Enterprises in moderate-income share of the primary housing goals, one single-family each year were also important. For market in 2003 was 53 percent, which housing subgoal, one multifamily example, HUD estimated that low- and was within HUD’s 2001–2003 forecasted special affordable housing goal, and one moderate-income units would account range of 50–55 percent, but when the multifamily special affordable housing for 50–55 percent of all units financed share increased to 58 percent for 2004, subgoal. As under the proposed rule, the in the primary mortgage market for it exceeded the upper end of the range. single-family housing goals in the final 2003–04, and 51–56 percent of all units The low- and moderate-income share of rule are based both on the benchmark financed in 2005–08. The low- and the primary market remained high, at 57 levels and on an evaluation of the moderate-income goal was set at 50 percent for 2005, above HUD’s 2005– Enterprise’s performance relative to the percent for 2003–04, and was later 2008 forecasted range of 51–56 percent, market for each housing goal in each established to increase in accordance but then decreased to 55 percent for year. Section 1282.11(b) requires the with the market range over the 2005–08 2006 and 52 percent for 2007. Thus, Director to establish housing goals for a period—specifically, 52 percent for over the 2005–2007 period, the low- and particular year by December 1st of the 2005, 53 percent for 2006, 55 percent for moderate-income goals increased previous year.15 2007, and 56 percent for 2008. A similar steadily, while the low- and moderate- approach was followed with regard to income share of the primary mortgage 1. Prospective and Market-Based the overall underserved areas and market decreased steadily. Approach special affordable goals for 2005–08. While the Enterprises are in As discussed in the proposed rule, As recent market developments show, conservatorship, FHFA expects the following passage of the Safety and it can be difficult to forecast the goal- Enterprises to continue to fulfill their Soundness Act, HUD established qualifying shares of the primary core statutory purposes, including their housing goals for Fannie Mae and mortgage market several years in support for affordable housing. The Freddie Mac in October 1993,16 and housing goals are one set of measures of 17 See 60 FR 61846 (Dec. 1, 1995). that support. FHFA does not intend for 15 See 12 U.S.C. 4561(b). 18 See 65 FR 65044 (Oct. 31, 2000). the Enterprises to undertake 16 See 58 FR 53048 (Oct. 13, 1993) and 58 FR 19 See 69 FR 63580 (Nov. 2, 2004). uneconomic or high-risk activities in 53072 (Oct. 13, 1993). 20 See 75 FR 9034–9036 (Feb. 26, 2010). support of the goals. However, the fact

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that the Enterprises are in based upon the most recent data, would for the year was higher than the conservatorship should not be a be an improvement over the HUD benchmark level. In order to plan their justification for withdrawing support projection of five or so years into the operations, the Enterprises must be able from these market segments. While in future. to rely on the benchmark levels that conservatorship the Enterprises have Nine commenters supported the FHFA has set.21 tightened their underwriting standards proposed single-family housing goal This approach to setting the goals, to avoid poor quality mortgages that benchmark levels. One policy advocacy involving both the setting of a may have contributed to their losses. group commented that the goals are an prospective target and an assessment of Maintaining sound underwriting improvement over previous years actual market opportunity, is a discipline going forward is important because they target the same departure from the approach used by for conserving the Enterprises’ assets populations as the CRA. This HUD and FHFA in the past. FHFA has and for supporting their mission in a commenter also supported the inclusion determined that this approach is manner in which the achievement of of minorities in the low-income areas appropriate because of the difficulties of housing goals directly relates to actual housing goal. Both Enterprises predicting the market, especially in light market conditions. commented that the proposed purchase of recent market turmoil and the In light of these circumstances and money mortgage goal benchmark levels difficulty of making accurate projections the difficulties in anticipating market were reasonable. One trade association even in more stable economic deviations from the normal home opposed the proposed single-family environments. This approach is purchase environment in the traditional housing goal benchmark levels, stating consistent with Congressional intent, as approach to goal-setting, the final rule that the proposed levels would be 50 to Congress authorized FHFA to establish adopts the approach in the proposed 60 percent of Enterprise purchases in the goal levels for the Enterprises. In rule to measure the Enterprises’ single- 2008, which the commenter believed is addition, several provisions of the family goal performance relative to too low to realize HERA’s objectives. Safety and Soundness Act, as amended, benchmark levels for the goal-qualifying Two commenters specifically authorize the Director to set or adjust shares of the Enterprises’ mortgage supported the separate refinancing the goal levels in light of changing purchases, as well as relative to the housing goal. One trade association market conditions. These provisions actual goal-qualifying shares of the commented that a separate refinancing include: the requirement that FHFA primary mortgage market. A dual goal is important because of the cyclical calculate the preceding three-year approach prevents exclusive reliance on nature of refinancing. The other average percentages of goal-eligible multi-year mortgage market forecasts. commenter stated that refinance volume originations for each goal category, and The primary disadvantage of this can vary, from less than the volume of take that information into account in approach is that information on the home purchase mortgages to over three setting the single-family goals; 22 the goal-qualifying shares of the current times the volume of home purchase authority to adjust previously single-family primary market is not mortgages, depending upon interest established goal levels based on current available until the release of HMDA data rates, which makes a combined goal market conditions; 23 the authority to in late summer of the following year, unworkable. The Enterprises did not adjust goal levels in response to a approximately nine months after the oppose the separate refinancing housing petition by an Enterprise based, in part, rating period. However, FHFA believes goal, but stated that the proposed on market conditions and the risk of that this market-based approach is an refinancing housing goal benchmark ‘‘over-investment’’; 24 and relief from appropriate measure of mission level was too high. Fannie Mae noted enforcement if the goal levels are achievement under the housing goals, that non-HAMP (Home Affordable determined to be infeasible.25 especially while the Enterprises are Modification Program) loan FHFA will carefully assess the operating in conservatorship, and that modifications are not goal-eligible, and approach of using both prospective the overall advantages of this approach there is also a reluctance to refinance targets and assessments of actual market outweigh the disadvantages. when the labor market is weak. Freddie opportunity for accuracy after actual FHFA received 11 comments on the Mac commented that the current low data is available to compare with proposal to calculate goals performance interest rate environment is not forecasts. The benchmark level, based on the eligible market share and favorable for a high share of low-income however, will not be considered the the benchmark level. All 11 commenters qualifying refinance mortgages. floor in assessing whether an Enterprise supported this approach. One trade As in the proposed rule, the final rule achieved a particular housing goal. The association cautioned that FHFA should establishes single-family housing goals time delay between submission of goals carefully reassess this approach for that include (1) an assessment of performance data and the availability of accuracy after actual data is available to Enterprise performance as compared to HMDA data, while not optimal, is also compare with forecasts. A policy the actual share of the market that meets unavoidable for this market-based advocacy group agreed with the the criteria for each goal, and (2) a approach. proposed approach, and stated that it benchmark level to measure Enterprise FHFA notes that because HERA would help FHFA more effectively performance. The benchmark levels for mandates separate single-family home match Enterprise performance to actual performance are intended to provide purchase and refinance low-income market conditions. This commenter greater certainty for the Enterprises in goals, each goal level is set individually, added that the benchmark should be establishing strategies for meeting the based on projected market conditions. considered the floor. Fannie Mae housing goals. An Enterprise would fail supported the proposed approach, but to meet a housing goal if its annual 21 See 12 U.S.C. 4561(b), acknowledging ‘‘the expressed concern about the time delay performance fell below both the need for the enterprises to reasonably and between submission of goals benchmark level and the actual share of sufficiently plan their operations and activities in advance, including operations and activities performance data and the availability of the market that met the criteria for a necessary to meet such annual goals.’’ HMDA data, which could cause particular housing goal for that year. An 22 12 U.S.C. 4562(e)(2)(A). regulatory uncertainty. Regarding Enterprise would not fail to meet a goal 23 12 U.S.C. 4562(e)(3). § 1282.11(b), one commenter stated that if it achieved the benchmark level for 24 12 U.S.C. 4564(b)(1), (2). setting the housing goals annually, that goal, even if the actual market size 25 12 U.S.C. 4566(b).

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Prior to HERA, the home purchase and government loans from the market risk retention and the exemption of refinance components of the income- calculation would distort the market certain qualified mortgages from the risk based goals (both the low- and measurement. Another trade association retention requirements. A policy moderate-income and the special was concerned that tighter underwriting advocacy group favored the use of CDR affordable goals) provided cumulative standards and lower loan-to-value to define the market, but cautioned that effects toward the overall goal, requirements were not fully factored the use of particular features to define including a cumulative impact from the into the market size. Another a market would be useful only to the Enterprises’ multifamily acquisitions. commenter stated that FHFA’s monthly extent the models are reliable and This is no longer the case under the survey of single-family mortgage reflect likely market conditions over separate HERA single-family home originations will provide a more timely some length of time. A trade association purchase and refinance low-income and in-depth addition to HMDA data. favored the use of CDR. Both Enterprises goals. Freddie Mac recommended that the supported the use of CDR to define the definition of higher-priced loan used to market, but expressed reservations. 2. Retrospective Measurement of the establish market size conform to the Fannie Mae stated that its systems Market definition set by the Federal Reserve already filter out loans with the most Consistent with the proposed rule, Board, which is 150 basis points or risk, and given the considerations that § 1282.12(b) of the final rule sets forth more above APOR for first loans. must go into determining whether a specific criteria for determining the size To the extent possible, the market loan is sustainable, it stated that it of the market based on HMDA data. estimates are based on the universe of would be difficult to develop a system This retrospective measurement of the goal-eligible mortgages. Manufactured that appropriately removes size of the market will be used to housing loans that are not higher-cost unsustainable loans from the market evaluate the performance of each loans are included in the market sizing analysis. Freddie Mac stated that Enterprise on each single-family estimates, to the extent that they are the use of CDR should help FHFA and housing goal. The specific criteria for included in the HMDA data. the Enterprises align and maintain establishing the size of the market Manufactured housing loans make up appropriate balance between reflect the types of mortgages that are two percent of the single-family affordability, sustainability, and safety counted for purposes of the housing originations reported in the HMDA data, and soundness, but cautioned that any goals and that are typically eligible for and approximately 60 percent of those methodology to develop market share purchase by an Enterprise. The manufactured housing loans are higher- estimates must be aligned with the retrospective measurement of the size of cost loans, which FHFA is using as a proprietary models used by the the market is defined under the proxy for personal property loans, not Enterprises so that inconsistency can be limitations of HMDA data. The market eligible for goals credit under this rule. avoided. includes only originations of FHFA also determined that subprime FHFA has considered the comments conventional conforming first-lien non- loans should not be included in the on this alternative approach to HOEPA single-family mortgages on market estimates. Therefore, the final determining whether a mortgage is owner-occupied properties. Only home rule excludes higher-priced loans (150 eligible to count toward the housing purchase mortgages are included in the basis points or more above APOR) as a goals. Because the sustainable mortgage market estimates for the three home proxy for subprime loans. Because most approach raises multiple policy and purchase mortgage goals and the home government-insured mortgages are technical issues that require further purchase mortgage subgoal, and only ineligible under HERA to qualify for the consideration, the final rule does not refinance mortgages are included in the housing goals, FHA and other implement this approach. FHFA may market estimates for the refinance government loans are not included in solicit further public comments mortgage goal. Mortgages with rate the market estimates. regarding a sustainable mortgage spreads of 150 basis points or more 3. Sustainable Mortgages approach toward the housing goals in above the applicable Average Prime the future. Offer Rate (APOR) reported in HMDA The proposed rule requested would be excluded, as would mortgages comments on an alternative to defining 4. Monthly Mortgage Survey that are missing information that would the market for determining whether a As described in the proposed be necessary to determine the mortgage is eligible to count toward the rulemaking, FHFA is conducting a appropriate counting treatment under housing goals that would focus on the monthly survey of single-family the housing goals. Additional details sustainability of the mortgage. Under mortgage originations pursuant to regarding the housing goals are this approach, the housing goals would section 1324(c) of the Safety and discussed above, along with the factors be defined in such a way that only Soundness Act, as amended by HERA, considered by FHFA in establishing the mortgages that support sustainable and will make data collected under that housing goals. homeownership would count toward survey available to the public. Release FHFA received five comments on the the goals. This would require a standard of that data will provide additional proposed criteria for establishing the to differentiate between mortgages that information on home mortgage lending size of the market. One commenter from are sustainable and mortgages that are activity. FHFA will use the survey data the manufactured housing sector noted not likely to be sustainable. in its monitoring of Enterprise housing that many manufactured housing loans Four commenters supported an goals performance. are personal property loans for alternative discussed in the proposed affordable housing, and questioned the rule that would use historical data on C. Analysis of Factors for Single-Family prudence of excluding higher interest the cumulative default rate (CDR) of Housing Goals rate loans (300 basis points over prime) mortgages acquired by the Enterprises Section 1332(e)(2) of the Safety and from the market size. One trade for defining the sustainable mortgage Soundness Act, as amended by HERA, association urged FHFA to make public market, while one commenter opposed requires FHFA to consider the following its goal calculation methodology as this approach. A trade association urged seven factors in setting the single-family technical guidance, and expressed deferral of the use of CDR until final housing goals: concerns that excluding FHA and other Congressional and regulatory action on (1) National housing needs;

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(2) Economic, housing, and homebuyers combined to drive home household based on the initial interest- demographic conditions, including prices down further. only payments, the potential loan size expected market developments; Despite improving housing grew to $356,000. Allowing the (3) The performance and effort of the affordability, the U.S. homeownership borrower to spend 38 percent of income Enterprises toward achieving the rate declined since peaking at an on mortgage costs meant that the housing goals under this section in average rate of 69 percent in 2004. In the mortgage loan could total approximately previous years; second quarter of 2010, the $482,000. Interagency regulatory (4) The ability of the Enterprise to homeownership rate was 66.9 percent, guidance on nontraditional and lead the industry in making mortgage down from 67.4 percent in the second subprime loans issued in 2006 and credit available; quarter of 2009. The homeownership 2007, including guidance to the (5) Such other reliable mortgage data rate for Black households in the second Enterprises by OFHEO, contributed to as may be available; quarter of 2010 was 46.2 percent, down limiting the numbers of such loans as (6) The size of the purchase money from 46.5 percent in the second quarter underwriting standards were conventional mortgage market, or of 2009. The homeownership rate for subsequently strengthened.30 refinance conventional mortgage Hispanic households in the second With the decline in house prices over market, as applicable, serving each of quarter of 2010 was 47.8 percent, down the 2007–2009 period and historically from 48.1 percent in the second quarter low mortgage interest rates, new the types of families described, relative 28 to the size of the overall purchase of 2009. homebuyers encountered a much more In 2008, the most recent year in which money mortgage market or the overall affordable housing market in 2009 and HMDA data is publicly available, refinance mortgage market, respectively; continue to do so in 2010. As measured applications from Black borrowers fell and by the National Association of Realtors’ by 48 percent, and applications from composite housing affordability index, (7) The need to maintain the sound 29 26 Hispanic borrowers fell by 55 percent. which reports the ratio of median financial condition of the Enterprises. One of the key catalysts of the current FHFA’s consideration of the size of household income to the income that economic crisis was falling housing would be required to buy a median- the market for each housing goal prices after the substantial increase that includes consideration of the percentage priced home (where 100 indicates the began in 2000. From January 2000 exact amount of income required to buy of goal-qualifying mortgages under each through the May 2006 peak, the S&P/ housing goal, as calculated based on a median-priced home), affordability Case-Shiller Home Price Index rose by continued to increase in 2009. That HMDA data for the three most recent approximately 105 percent, only to fall 27 index rose from 166.3 in December 2008 years for which data is available. dramatically since then. The less FHFA’s analysis of each of the factors, to 171.5 one year later. The higher value volatile FHFA House Price Index, which of the index mainly reflected the decline which has been updated since the reflects the book of business of the proposed rulemaking, is set forth below. in the median price of existing single- Enterprises, peaked later and also family homes and lower mortgage 1. National Housing Needs showed a decline. interest rates. The index dipped to 158.9 Changes in mortgage underwriting, in June 2010 as a result of an increase With the collapse of subprime and particularly for affordable products, had Alt-A lending, tighter credit conditions, in the median price of existing single- a direct impact on the national housing family homes between December 2009 and stricter underwriting standards, market. During the boom, as house price single-family mortgage originations fell and June 2010, but affordability is still appreciation reduced affordability, low at a very high level by historical 38 percent in 2008. The Enterprises’ documentation Alt-A loans, interest- standards. share of single-family mortgage-backed only loans and ARMs proliferated. securities (MBS) issuance rose to over Subprime market share tripled to more 2. Economic, Housing and Demographic 73 percent in that year, however, and than 20 percent of the market. Lenders Conditions the credit risk characteristics of their accepted more loans with higher loan- The current turmoil in the housing purchases began to improve. In 2009, to-value (LTV) ratios and lower and mortgage markets has created less the Enterprises’ mortgage purchase and borrower credit scores. The Joint Center than favorable conditions for guarantee activity represented more for Housing Studies report, ‘‘State of the expansions in credit to borrowers on the than 76 percent of conforming single- Nation’s Housing 2009,’’ describes the margins of homeownership. The adverse family originations. Falling house prices effect of loosened mortgage market conditions include: (1) caused equity in homes to decline underwriting standards on the housing Tightened credit underwriting practices; sharply. The resetting of interest rates market. According to that report, in (2) sharply increased standards of on poorly underwritten adjustable rate 2005, a household with median owner private mortgage insurance (MI) mortgages (ARMs) originated in recent income of about $57,000 and spending years, deteriorating household balance 28 percent of income on mortgage 30 See Office of Federal Housing Enterprise sheets, rising unemployment, continued principal and interest could qualify for Oversight, ‘‘OFHEO Director James B. Lockhart credit tightening, and the deepening a 30-year, fixed-rate loan of $225,000. If Commends Enterprises on Implementation of recession contributed to increases in the same borrower took out an ARM Subprime Mortgage Lending Guidance,’’ News Release (Sept. 10, 2007), available at http://www. mortgage delinquency and home loan at a discounted interest rate, the fhfa.gov/webfiles/1608/Lockhartcommends foreclosure rates as well as sharply maximum loan amount increased to ENTERPRISEsreSubprime91007.pdf. See also Office lower housing starts and sales. $265,000. By adding an interest-only of the Comptroller of the Currency, Federal Reserve Continued tightening in lender credit feature to that ARM and qualifying the Board, Federal Deposit Insurance Corporation, Office of Thrift Supervision, National Credit Union policies, large inventories of unsold Administration, Statement on Subprime Mortgage homes, significant volumes of homes in 28 U.S. Census Bureau, ‘‘Residential Vacancies Lending, 72 FR 37569–37575 (July 10, 2007); and foreclosure, rising unemployment, and and Homeownership in the Second Quarter 2010,’’ Office of the Comptroller of the Currency, Federal increasing pessimism among potential tables 4 and 7, July 27, 2010. Reserve Board, Federal Deposit Insurance 29 ‘‘HMDA Data Show Huge Decline in 2008 Corporation, Office of Thrift Supervision, National Mortgage Activity—Except at Government Insured Credit Union Administration, Interagency Guidance 26 12 U.S.C. 4562(e)(2). Programs.’’ Inside Mortgage Finance. Oct. 2, 2009 at on Nontraditional Mortgage Product Risks, 71 FR 27 See 12 U.S.C. 4562(e)(2)(A). 8. 58609–58618 (Oct. 4, 2006).

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companies; (3) increased role of FHA in were responsible for 37 percent of market accounted for by FHA the marketplace; (4) collapse of the Fannie Mae’s losses for the quarter and mortgages; and (3) the extent to which private label mortgage-backed securities 42 percent of Freddie Mac’s losses for FHA mortgages have goal-qualifying (PLS) market; and (5) high the quarter. Due to the Enterprises’ characteristics. unemployment. These developments focus on improved purchase quality and The market share of mortgages contribute to a decrease in the overall underwriting standards, the loans that insured by FHA and mortgages number of single-family loans likely to the Enterprises have purchased since guaranteed by the VA has risen qualify for housing goals credit. conservatorship in late 2008 have had dramatically. Loans insured by FHA Tightened credit underwriting much lower rates of serious increased to 21 percent of single-family practices. In general, more conservative delinquency. Serious delinquencies for mortgages insured in 2009, up from 17 underwriting standards in the mortgage 2009 were a fraction of the serious percent in 2008, spurred by the market will likely result in fewer goal- delinquency rates for the 2006–2008 continuation of favorable lending qualifying loans and a lower percentage vintages for comparable periods after programs. VA’s share of originations of goal-qualifying loans in the market. origination.32 also increased, rising to 4 percent in Underwriting standards in the mortgage Sharply increased standards of 2009. Both types of mortgages backed by market generally, and at Fannie Mae private mortgage insurers. Much like the federal government accounted for a and Freddie Mac, have tightened tighter credit underwriting standards combined 25 percent of single-family considerably in response to declining generally, higher underwriting originations in 2009, up from just 4 market conditions and early payment standards of private MI providers have percent two years earlier.33 A key reason defaults, among other factors, and such resulted in fewer goal-qualifying loans for this growth is that Fannie Mae and standards can be expected to remain in and a lower percentage of goal- Freddie Mac generally cannot buy loans place in the near future. In May 2008, qualifying loans in the market. As a with original LTV ratios greater than 80 responding to changes in private MI result of stress in the mortgage markets, percent without some form of credit underwriting, Fannie Mae revised its beginning in late 2007, private MI enhancement. Borrowers without down payment policy to lower the providers implemented major changes substantial down payments are maximum allowable LTV ratio for loans in the types of risk they were able to increasingly utilizing government underwritten by Desktop Underwriter insure. Insurers that had experienced insurance and guaranty programs. (DU) and for manually underwritten substantial ratings downgrades acted to Nearly 80 percent of FHA’s purchase- loans. The implementation of Fannie minimize losses by imposing stricter loan borrowers in 2009 were first-time Mae’s updated DU Version 8.0, effective underwriting standards on loans with homebuyers.34 To ensure long-term in December 2009, generally reduces the high LTVs and implementing measures actuarial soundness, FHA announced allowable ‘‘back-end’’ borrower debt-to- in ‘‘declining markets’’ that have sharply several policy changes on January 20, income ratio—the portion of a limited the insurability of certain 2010 that could reduce borrower borrower’s income that goes toward higher-LTV mortgage loans. eligibility for FHA, including: (1) paying debts—to 45 percent. In As with the Enterprises, the steps Reducing the maximum permissible addition, it eliminates DU taken by mortgage insurers to strengthen seller concession from the current six recommendations for Expanded their financial condition, while percent to three percent, which is in Approval II and Expanded Approval III necessary to improving mortgage line with marketplace norms; (2) loans, loans which historically counted sustainability, may reduce the overall requiring a minimum credit score of 580 31 heavily toward the housing goals. If mortgage lending volume, particularly for new borrowers seeking to qualify for the DU 8.0 revisions had been in effect for higher-LTV mortgages, which the 3.5 percent down payment program; historically have tended to be more for all of 2009, substantially fewer goal- and (3) increasing the up-front mortgage likely to count for purposes of the qualifying loans would have been insurance premium by 50 basis points, housing goals. underwritten. The changes to DU will to 2.25 percent. In addition, FHA asked likely have a similar effect in 2010 and Increased role of FHA in the marketplace. Another factor that has for a change in the law to allow it the 2011. Freddie Mac has similarly ability to increase the maximum annual tightened its underwriting standards. had substantial marketplace impact is 35 the increase in the share of mortgages mortgage insurance premium. Mortgage underwriting standards in Legislative changes which exempt insured by FHA and mortgages the near term at the Enterprises will be FHA, VA and Rural Housing Service decidedly more conservative than guaranteed by the VA. These loans loans from certain risk retention earlier in the decade. During the first generally are pooled into mortgage- requirements could have the effect of quarter of 2010, for example, less than backed securities guaranteed by the increasing the loan volume for these two percent of Fannie Mae’s purchases Government National Mortgage federally-insured and guaranteed were interest-only loans, and Freddie Association (GNMA). Purchases of 36 mortgages insured by FHA and mortgages. Mac purchased none. Similarly, Alt-A Collapse of private label securities mortgages guaranteed by the VA loans were less than one percent of market. In the middle part of the ordinarily have not received goals credit acquisitions for both Enterprises. This is decade—the period covered by the prior significant because interest-only loans in the past and will not generally HUD rule on the housing goals—Fannie previously purchased by the Enterprises receive credit going forward. In general, Mae and Freddie Mac were major have serious delinquency rates of more the impact of the FHA market on the than 18 percent, and Alt-A loans have percentage of loans in the conventional 33 ‘‘Report to Congress 2009.’’ Federal Housing serious delinquency rates of more than market that qualify for a particular goal Finance Agency at 10. 12 percent. During the first quarter of depends on: (1) The goal-qualifying size 34 ‘‘HUD Secretary, FHA Commissioner Report on 2010, Alt-A loans already on the books of the overall market; (2) the share of the FHA’s Finances.’’ HUD Press Release No. 09–214. Nov. 12, 2009. 31 Desktop Originator/Desktop Underwriter 32 Statement of Edward J. DeMarco, Acting 35 ‘‘FHA Announces Policy Changes to Address Release Notes. DU Version 8.0. DODU 0909. Fannie Director, Federal Housing Finance Agency, House Risk and Strengthen Finances.’’ HUD Press Release Mae. Sept. 22, 2009. DU 8.0 will allow a back-end Financial Services Subcommittee on Capital No. 10–016. Jan. 20, 2010. ratio of up to 50 percent for case files with strong Markets, Insurance and Government Sponsored 36 ‘‘Free Pass on Risk Retention Could Boost FHA compensating factors. Enterprises. May 26, 2010 at 3. Loan Volume.’’ American Banker, June 28, 2010.

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purchasers of the AAA-rated tranches of percent in the 2010 to 2011 period. To formation rates were already on the PLS that contained substantial amounts the extent that lower-income jobs are decline. In addition, the recession and of subprime mortgages. While the size affected more by unemployment than unemployment have reduced and nature of the Enterprises’ subprime higher-income jobs, the affordable home immigration, which in the past has been holdings differed, these purchases had purchase market is affected. a driver of housing demand. It is still an impact on the achievement of the NeighborWorks, a national network of too early to assess the impact of the housing goals for each Enterprise, community-based organizations actively current economic downturn on housing particularly for the home purchase involved in foreclosure mitigation demand, particularly given regional subgoals. Such loans were not a large counseling, has estimated that the two variations in impact and mitigating factor in the mortgage marketplace in leading causes of mortgage default rates factors, such as increased affordability 2008 or 2009. OFHEO provided as of January 31, 2010 were a reduction of housing ownership. In the long-term, guidance to the Enterprises in 2007 in income (37 percent of defaults) and housing demand is likely to increase as incorporating interagency policy loss of income (21 percent of defaults).39 a result of population growth, guidance from the Federal Deposit The high rates of unemployment and immigration, and future household Insurance Corporation, the Office of the underemployment are likely to continue formation by the generation born Comptroller of the Currency, the Federal to have a significant impact on the size between 1981 and 2000.40 However, the Reserve Board and the National Credit of the mortgage market going forward. impact of long-term demographic Union Administration. The guidance Refinancings. Refinancing volumes conditions on short-term goals restricted the purchase of such are strongly influenced by mortgage performance would be minimal. securities by the Enterprises when interest rates and LTV ratios on existing 3. The Performance and Effort of the certain terms of mortgages backing those mortgages. Under the umbrella of the Enterprises Toward Achieving the securities are harmful to the borrower.37 Administration’s Making Home Housing Goals in Previous Years At year-end 2009, Freddie Mac’s Affordable program, the Home $175.6 billion private label MBS and Affordable Refinance Program (HARP) is Section 1332(a) of the Safety and commercial MBS portfolio reflected an effort by the Enterprises to enhance Soundness Act, as amended by section deteriorating credit performance. the opportunity for owners to refinance. 1128 of HERA, requires FHFA to Although substantially all of these Under this program, homeowners whose establish three single-family home securities were rated triple-A at mortgages are owned or guaranteed by purchase mortgage goals for the purchase, $84.2 billion were rated Fannie Mae or Freddie Mae who are Enterprises: A goal for low-income below investment grade at year-end current on their mortgages have the families; a goal for families that reside 2009. In the same year, Fannie Mae’s opportunity to reduce their monthly in low-income areas; and a goal for very $89.8 billion private label MBS, mortgage payments to take advantage of low-income families. Section 1332(a) commercial MBS and mortgage revenue low monthly mortgage interest rates, also requires FHFA to establish a goal bond portfolios also reflected which Freddie Mac’s July 1, 2010 for single-family refinancing mortgages deteriorating credit performance. Primary Mortgage Market Survey for low-income families. The following Although almost all of these securities indicated had fallen to 4.58 percent for section reviews what performance were rated triple-A at purchase, $42.2 a 30-year, fixed-rate mortgage. Even would have been on these four single- billion were rated below investment under favorable interest rate conditions, family goals if they had been in effect grade at year-end 2009. however, refinancings may not mirror over the 2001–09 period. Unemployment. Unemployment and previous years. Low-Income Families Housing Goal. underemployment have an effect on For homeowners with a current LTV The housing goals in the Safety and mortgage default rates, and on the ratio between 80 and 125 percent, the Soundness Act, as amended, apply to number of borrowers seeking and Enterprises will refinance mortgages the Enterprises’ acquisitions of obtaining a purchase money mortgage or without requiring additional mortgage ‘‘conventional, conforming, single- a refinance mortgage. The civilian insurance. Of the 2.5 million borrowers family, purchase money mortgages unemployment rate was 9.5 percent in who refinanced their mortgages with financing owner-occupied housing’’ for June and July 2010, down from 9.7 Fannie Mae financing in 2009, 329,000 the targeted groups. Accordingly, they percent in May 2010 and a high of 10.1 refinanced through Fannie Mae’s are similar in structure to the home percent in October 2009.38 However, the streamlined process, including 105,000 purchase subgoals established by HUD unemployment rate is still historically Fannie Mae borrowers who refinanced for Fannie Mae and Freddie Mac for high and will likely remain above eight through HARP. Of the 1.7 million 2005–08, and subsequently adjusted for borrowers who refinanced their 2009 by FHFA. One difference is that 37 On August 10, 2007, OFHEO issued letters the subgoals established by HUD directing the Enterprises to apply the principles and mortgages with Freddie Mac financing practices of the interagency Statement on Subprime in 2009, 169,000 refinanced through applied only to mortgages on properties Mortgage Lending to their purchases of subprime Freddie Mac’s streamlined process, in metropolitan areas, while the new loans in the regular flow of business, including bulk including 86,000 Freddie Mac goals apply to mortgages on properties purchases. OFHEO directed that, not later than in all locations. September 13, 2007, nontraditional and subprime borrowers who refinanced through loans purchased by Fannie Mae and Freddie Mac HARP. The low-income families home as part of PLS transactions comply with the Demographic conditions. In purchase goal applies to mortgages Interagency Guidance on Nontraditional Mortgage establishing the 2010 goals, FHFA made to ‘‘low-income families,’’ defined Product Risks and the Statement on Subprime as families with incomes no greater than Mortgage Lending. This application to PLS analyzed current demographic trends 41 conformed to the underwriting provisions of the for their possible effect on housing 80 percent of AMI. Past performance guidance. Further, OFHEO directed that the demand. Analysis of current trends on this goal, if it had been in effect in Enterprises adopt such business practices and take previous years, is shown in Table 1. such quality control steps as necessary to ensure the reveals that by 2008, household orderly and effective implementation of the Performance is shown excluding units guidance with respect to the purchase of PLS. 39 NeighborWorks, National Foreclosure OFHEO News Release (Sept. 10, 2007). Mitigation Counseling Program, Congressional 40 ‘‘State of the Nation’s Housing 2009.’’ Joint 38 Bureau of Labor Statistics, News Release: The Update, Activity Through January 31, 2010. May 28, Center for Housing Studies of Harvard University. Employment Situation—July 2010. August 6, 2010. 2010. 41 12 U.S.C. 4502(14).

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financed by Enterprise purchases of and 723,000 in 2009, and for Freddie Mae’s modifications of home purchase PLS; as discussed elsewhere in this final Mac, from 1.0 million mortgages in 2007 mortgages and 65.3 percent of Freddie rule, FHFA has decided to exclude such to 655,000 in 2008 and 482,000 in 2009, Mac’s modifications were for lower- units from the numerator and the due to the turmoil and tightened income families. Combined performance denominator in calculating goal underwriting standards in the mortgage on this goal, including both home performance for 2010 and 2011, market. However, the low-income share purchase mortgages and modifications, although the PLS market has declined of home purchase loans rose for both would have been 33.5 percent for markedly. As indicated, Fannie Mae’s Enterprises, from 23.1 percent in 2008 Fannie Mae and 30.9 percent for performance (excluding PLS) would to 25.5 percent in 2009 for Fannie Mae, Freddie Mac in 2009, as shown in Table have risen markedly between 2001 and and from 24.3 percent in 2008 to 25.4 1. However, as discussed elsewhere in 2003, and then, with the exception of percent in 2009 for Freddie Mac. this final rule, modifications of 2006, would have fallen steadily Possible explanations for this include between 2003 and 2008. Its performance the greater affordability of housing and mortgages will be treated differently for in 2008, at 23.1 percent, would have a decrease in the role of investors in the purposes of the housing goals in 2010– been the lowest of the period. Freddie home purchase market. 2011. Specifically, modifications of Mac’s performance generally would In setting the goals for the Enterprises mortgages will be counted only under have risen between 2001 and 2005, and for 2010 and 2011, FHFA recognizes the the refinancing housing goal, not under then declined between 2005 and 2008. impact that counting loan modifications the housing goals for home purchase Its performance in 2008 would have of home purchase mortgages would mortgages. This means that, in order to been 24.3 percent, also the lowest of the have had on the home purchase goals in be comparable, the 2009 low-income period. prior years. Data on the volume and home purchase goal performance figure Total Enterprise home purchase loan shares of loan modifications counting in Table 1 reflects performance volume fell sharply in 2008 and 2009— toward the low-income home purchase excluding loan modifications. for Fannie Mae, from 1.5 million goal in 2009 are also shown in Table 1. BILLING CODE 8070–01–P mortgages in 2007 to 978,000 in 2008 As indicated, 67.2 percent of Fannie

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Very Low-Income Families Housing amended by HERA, defines a ‘‘very low- one occupied by a family with income Goal. The Safety and Soundness Act, as income’’ owner-occupied property as

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no greater than 50 percent of AMI.42 The very low-income share of home goal, including both home purchase Past performance on this home purchase purchase loans rose for both Enterprises, mortgages and modifications, would goal, if it had been in effect in previous from 5.5 percent in 2008 to 7.3 percent have been 11.2 percent for Fannie Mae years, is shown in Table 2. As indicated, in 2009 for Fannie Mae, and from 6.1 and 9.8 percent for Freddie Mac in Fannie Mae’s performance would have percent in 2008 to 7.2 percent in 2009 2009, as shown in Table 2. However, as risen from 6.1 percent in 2001 to 7.9 for Freddie Mac. discussed above, modifications of percent in 2003, and then generally Data on the volume and shares of mortgages will be counted only under decreased, to 5.5 percent in 2008, the modifications counting toward the very the refinancing housing goal, not under lowest in the period. With the exception low-income home purchase goal are also the housing goals for home purchase of 2006, Freddie Mac’s performance on shown in Table 2. As indicated, 27.5 mortgages. This means that, in order to this goal would have changed little over percent of Fannie Mae’s modifications be comparable, the 2009 very low- the 2001–08 period, remaining in the of home purchase mortgages and 26.0 income home purchase goal range of 6.0 percent to 6.7 percent. percent of Freddie Mac’s modifications performance figure in Table 2 reflects were for very low-income families. performance excluding loan 42 12 U.S.C. 4502(24). Thus, combined performance on this modifications.

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Low-Income Areas Housing Goal and goal targets the Enterprises’ purchases of in a manner similar to the previous Subgoal. The low-income areas housing mortgages in specified geographic areas, underserved areas goal. The Safety and

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Soundness Act, as amended by HERA, least 30 percent, of which 5,710 had a areas housing goal. The inclusion of now defines a ‘‘low-income area’’ as a tract income greater than 80 percent of designated disaster areas would have census tract or block numbering area in AMI but less than 100 percent of AMI. had a significant impact on the which the median income does not Accordingly, based on the 2000 census, performance of each Enterprise under exceed 80 percent of AMI, and it there were 24,325 tracts that would be this goal. The impact of the designated includes families with incomes not targeted by this goal, excluding tracts in disaster areas would also have changed greater than 100 percent of AMI who designated disaster areas, but only significantly from year to year. As reside in minority census tracts or in families with incomes no greater than discussed above, modifications of 43 designated disaster areas. It defines a 100 percent of AMI would be included mortgages will be counted only under ‘‘minority census tract’’ as a census tract in the 5,710 high-minority, moderate- the refinancing housing goal, not under that has a minority population of at least income tracts. the housing goals for home purchase 30 percent and a median family income Past performance on the low-income mortgages. This means that, in order to of less than 100 percent of AMI.44 areas housing goal, if it had been in According to the 2000 census, of the effect in previous years, including be comparable, the 2009 low-income 66,145 census tracts, there were 18,615 designated disaster areas, is shown in areas home purchase goal performance low-income tracts. There were 25,254 Table 3A. This measurement figure in Table 3A reflects performance tracts with a minority population of at corresponds to the overall low-income excluding loan modifications.

Past performance on the new low- excluding designated disaster areas, is the new low-income areas housing income areas housing subgoal if it had shown in Table 3B. The exclusion of subgoal. As indicated, Fannie Mae’s been in effect in previous years, designated disaster areas corresponds to performance would have varied over

43 12 U.S.C. 4502(28). 44 12 U.S.C. 4502(29).

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time. It would have reached its highest and would have been 15.2 percent in be comparable, the 2009 low-income level, 19.1 percent, in 2002, and its 2008. As discussed above, modifications areas home purchase goal performance lowest level, 15.1 percent, in 2008. of mortgages will be counted only under figure in Table 3B reflects performance Freddie Mac’s performance would have the refinancing housing goal, not under excluding loan modifications. peaked at 18.6 percent in 2002, then the housing goals for home purchase fallen sharply to 12.1 percent in 2003, mortgages. This means that, in order to

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Refinancing Housing Goal. Under the families with incomes no greater than same property. Thus, the goal would not Safety and Soundness Act, as amended 80 percent of AMI. It applies to apply to home equity or home purchase by HERA, the refinancing housing goal mortgages that are given to pay off or loans. is targeted to low-income families, i.e., prepay an existing loan secured by the

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Past performance on this goal, if it for Fannie Mae and 21.7 percent for all loan modifications would have been had been in effect in previous years, is Freddie Mac. 19.9 percent for Fannie Mae and 19.1 shown in Table 4. As indicated, Fannie However, as discussed elsewhere in percent for Freddie Mac. Performance Mae’s performance (again, excluding this rule, the treatment of loan including initial loan modifications of units financed by purchases of PLS) modifications for purposes of the low-income refinancing mortgages would have peaked in 2005 at 28.4 housing goals will be different in 2010– would have been 23.0 percent for percent, following the 2001–03 2011 than it was in 2009, in two Fannie Mae and 21.7 percent for refinance boom, and declined thereafter respects. First, only permanent Freddie Mac. FHFA estimates that over the 2006–08 period to a low of 23.1 modifications of mortgages will be approximately 25 percent of all loan percent in 2008. Freddie Mac’s counted as mortgage purchases—that is, modifications initiated by the for 2010, only modifications initiated performance would also have peaked in Enterprises in 2009 were actually made and made permanent in 2010 will be 2005 at 26.3 percent, and then also permanent in 2009. Thus, 2009 declined to 26.0 percent in 2006, 25.2 counted, and for 2011, only performance under the low-income percent in 2007, and 23.2 percent in modifications made permanent in 2011 refinancing housing goal, based on the 2008. will be counted. Second, loan Performance on the refinancing goal is modifications will be counted only 2010 provisions for counting loan also shown in Table 4 for 2009. As under the refinancing housing goal, not modifications, would have been less indicated, performance exclusive of under the housing goals for home than the performance figures including loan modifications fell to the lowest purchase mortgages. This differs from initial loan modifications, but greater levels of this period—19.9 percent for the treatment of loan modifications in than the performance figures excluding Fannie Mae and 19.1 percent for 2009, when loan modifications were all loan modifications. Assuming that Freddie Mac. However, 67.9 percent of treated as either refinancing loans or the low-income shares of permanent Fannie Mae’s modifications of refinance home purchase loans, depending on the modifications in 2009 were the same as mortgages pursuant to HAMP and 67.7 original purpose of the loan that was the low-income shares of initial percent of Freddie Mac’s modifications modified. The data in Table 4 indicate modifications in 2009, FHFA estimates of refinance mortgages pursuant to what performance under the low- that performance on the low-income HAMP were for low-income families. As income refinancing housing goal would refinancing housing goal in 2009 would a result, total performance on the goal, have been in 2009 under the 2009 have been approximately 21.3 percent including modifications pursuant to provisions for counting loan for Fannie Mae and 20.2 percent for HAMP, would have been 23.0 percent modifications. Performance excluding Freddie Mac.

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Interpreting Past Goal Performance recent years, for example, the housing goals. Elsewhere in this final Data. Past performance is not Enterprises purchased PLS primarily rule is a more detailed discussion necessarily a good indicator of future due to anticipated profitability, to regarding the exclusion of mortgages goal performance, due to changes in maintain market share, and because included in PLS from counting toward mortgage interest rates, home prices, some PLS, especially those containing the housing goals in 2010–2011. The credit availability, and other factors. In subprime mortgages, helped achieve the performance data in Tables 1–4 show

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performance excluding the effects of below 35 percent. After the private development of economic forecasts, these PLS purchases. mortgage market began to deteriorate in FHFA uses data and information from In response to the housing crisis and 2007, the Enterprises’ share of the Wells Fargo, PNC, Fannie Mae, Freddie their financial difficulties, including the mortgage purchase and guarantee Mac, The Wall Street Journal Survey, performance of PLS, the Enterprises activity represented more than 76 Standard and Poor’s, The Conference have adopted more conservative percent of total conforming single- Board and the Federal Open Market underwriting guidelines. As previously family originations in 2009.47 Committee. In addition, FHFA uses discussed, those changes in At the same time, the Enterprises have market and economic data from the underwriting standards will affect goal been severely stressed by the financial Bureau of Labor Statistics, the Federal performance as compared to the past crisis. As described below, they have Reserve Board, the Department of goal performance of the Enterprises. suffered losses that have depleted their Commerce Bureau of Economic capital, and they have been sustained 4. The Ability of the Enterprises To Analysis, and FedStats.55 only by multi-billion dollar infusions of Lead the Industry in Making Mortgage capital from the U.S. Treasury under the 6. Market Size Credit Available Senior Preferred Stock Purchase As background for the statutory Agreements. In this environment, with In general, the single-family mortgage requirement to consider the Enterprises’ FHFA as conservator exercising a market environment of 2009 is expected ‘‘ability * * * to lead the industry in statutory mandate to conserve and to extend to 2010, with modest making mortgage credit available,’’ a preserve the Enterprises’ assets, it is improvements in 2011. Quantifiable Senate committee report on legislation especially important that the Enterprises factors influencing FHFA’s outlook for leading to the enactment of the Safety not take on undue additional credit risk the mortgage market include general and Soundness Act in 1992 expressed by purchasing mortgages in any defined growth in the economy, employment concern that Enterprise purchases had segment in quantities beyond what and inflation. Other factors that are less not kept pace with market originations market originations reasonably provide. easily quantified include the effect of of mortgages to low- and moderate- FHFA has taken into account all of the homebuyer tax credit on the income borrowers.45 FHFA shares that the foregoing considerations in mortgage market. Also, activity in the concern and has defined the Enterprise assessing the Enterprises’ ability to lead subprime market is expected to be housing goals in part against that the industry. minimal through 2011. history. FHFA believes that, in fact, the In particular, the following factors Enterprises, directly supported by the 5. Other Mortgage Data have a direct or indirect impact on the Treasury Department, have played a The primary source of reliable leading role in sustaining the mortgage mortgage data for establishing the affordability of home purchases or the market during the recent crisis. housing goals is the HMDA data refinancing of mortgages: Leading the industry in making reported by originators. Enterprise Interest Rates. To a large extent, mortgage credit available includes mortgage purchase data are compared to FHFA’s estimates of affordability in the making mortgage credit available to HMDA data to evaluate the Enterprises’ mortgage market rely on a continuing primary market borrowers at different performance with respect to leading or low interest rate environment. Interest income levels. It also includes the lagging the housing market under rates are expected to remain low in the ability of the Enterprises to respond to specific housing goals. near future and possibly through 2011 pressing mortgage needs in the current FHFA also uses other reliable data as the Federal Reserve expects to market, such as the threat of a loss of a sources including the American continue its low interest rate policy.56 home by the borrower, for example, by Housing Survey (AHS), Census Mortgage interest rates reached an all- implementing the loan modification and demographics, commercial sources such time low in August 2010, with the refinance programs under the as Moody’s,48 and other industry and national average interest rate on a 30- Administration’s Making Home trade research sources, e.g., Mortgage year fixed-rate mortgage reaching 4.42 49 Affordable (MHA) Program, and by Bankers Association (MBA), Inside percent.57 Lower interest rates directly 50 supporting state and local housing Mortgage Finance Publications, affect the affordability of buying a home 51 finance agencies. The Enterprises’ NAR, National Association of Home or refinancing a mortgage. ability to respond is reflected through Builders (NAHB),52 and the CRE Unemployment. In addition to being the introduction of safe and sound Finance Council.53 The FHFA MIRS,54 an indicator of the health of the innovative products, technology and previously administered by the Federal economy in general, the employment process improvements. Housing Finance Board, a predecessor In the current market environment, agency to FHFA, is used to complement situation impacts the housing market the Enterprises, along with FHA and forecast models for home purchase loan more directly in that buying a house is VA, lead the market. In the first quarter originations by making intra-annual a large investment and a long-term of 2010, they had a combined purchase adjustments prior to the public release commitment of mortgage payments. market share of nearly 100 percent.46 of HMDA mortgage data. In the Private-sector payroll employment From 1997–2003, the Enterprises’ edged up by 71,000 and the share of purchases of mortgage 47 Statement of Edward DeMarco, Acting Director unemployment rate remained at 9.5 originations grew to almost 55 percent. of the Federal Housing Finance Agency, U.S. House of Representatives House Financial Services 55 http://www.fedstats.gov/other.html. From 2004–2006, the private mortgage Subcommittee on Capital Markets, Insurance and 56 market predominated, and the Government Sponsored Enterprises.’’ May 26, 2010. ‘‘The Federal Open Market Committee seeks monetary and financial conditions that will foster 48 http://www.moodys.com/. Enterprises’ market share dropped to price stability and promote sustainable growth in 49 http://www.mbaa.org/. output. To further its long-run objectives, the 50 45 S. Rep. No. 102–282, at 10–11 (1992). http://www.imfpubs.com/. Committee seeks conditions in reserve markets 51 46 The combined purchase market share of Fannie http://www.realtor.org/. consistent with federal funds trading in a range 52 Mae, Freddie Mac and Ginnie Mae was 98 percent, http://www.nahb.org/. from 0 to 1⁄4 percent.’’ Minutes of the Federal Open down slightly from 99 percent in the prior year. 53 http://www.cmsaglobal.org/CMSA_Resources/ Market Committee, June 22–23, 2010, p. 10. ‘‘Fannie, Freddie GNMA At Nearly 100% Share.’’ Research/Market_Statistics/Market_Statistics/. 57 Freddie Mac. Primary Mortgage Market Survey. National Mortgage News, May 31, 2010. 54 http://www.fhfa.gov/Default.aspx?Page=250. August 19, 2010.

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percent in July.58 The unemployment should turn down again this FHA Market Share. The composition rate is still historically high and will summer.’’ 60 of the affordable conventional mortgage likely remain above eight percent in the Housing Market. A robust housing market is also influenced by FHA’s 2010 to 2011 period. To the extent that market is generally good for the market share, which rose significantly lower-income jobs are affected more by affordable home market. Home sales, in 2008–2009 and continues to be high. the employment situation, the after increasing 8.4 percent in March Mortgages insured by FHA are likely to affordable home purchase market is and 8.2 percent in April, have decreased continue to represent a significant share affected. 4.6 percent in June and another 3.8 of the mortgage market in 2010 and percent in July. Both the increase and House Prices. The price of housing 2011. These loans generally are pooled the subsequent decrease in home sales into mortgage-backed securities has a direct impact on the affordability may be attributed to the homebuyers’ guaranteed by GNMA. Purchases of of home mortgages. The housing and tax credit program and its expiration. mortgages insured by FHA and VA mortgage markets are also influenced by Many industry observers expect that trends in house prices. In periods of home sales will remain near recent lows ordinarily do not receive housing goals house price appreciation, home sales during the remainder of 2010. credit. and mortgage originations increase as According to an analysis by Wells Fargo As shown in Figure 1, the market the expected return on investment rises. Securities Economics Group, ‘‘[s]ales of share of all mortgages insured by FHA In periods of price depreciation or price existing homes fell 5.1 percent in June has increased dramatically. A key uncertainty, home sales and mortgage to a still relatively robust 5.37 million- reason for this growth is that Fannie originations decrease as risk-adverse unit pace. Sales continue to be Mae and Freddie Mac generally cannot homebuyers are reluctant to enter the supported by tax credits. Delays in the buy loans with original LTV ratios market. Between May 2009 and May closing process have led to an extension greater than 80 percent without some 2010, FHFA’s purchase-only House of the closing deadline which will likely form of credit enhancement. Borrowers smooth the adjustment to the post-tax Price Index shows prices down 1.2 without substantial down payments are credit environment.’’ 61 increasingly utilizing government percent, compared to a 5.8 percent price The additional first-time homebuyers decline between May 2008 and May insurance programs. Since FHA’s taking advantage of the $8,000 tax credit market share increase appears to 2009. While price declines appear to be will likely have a positive impact on the moderating, and while the S&P/Case coincide with the demise of the housing goals. The additional repeat subprime market, it would be easy to Shiller Home Price Index actually homebuyers who qualify for the $6,500 shows prices increased 5.4 percent over conclude that FHA loans are now tax credit (there is a five-year occupancy assisting the types of borrowers who the May 2009 to May 2010 period, requirement) will likely have a negative previously were served by subprime prices are expected to decline further impact on the housing goals. The repeat products. However, FHA’s internal data during the third quarter of 2010.59 An homebuyers who qualify for the tax indicate that the average riskiness of the analysis by Wells Fargo Securities credit include a greater proportion of loans they insure has actually Economics Group states that ‘‘[t]he older and thus higher income decreased, i.e., credit scores increased, combination of high inventories and borrowers. since late 2007.62 declining home sales means prices 60 Wells Fargo Securities Economics Group. Existing Home Sales Slip in June, July 22, 2010, 62 See FHA Outlook, a monthly statistical p. 1. summary of application insurance endorsement, 58 Bureau of Labor Statistics, News Release: The 61 Wells Fargo Securities Economics Group. delinquency and claim information on FHA single Employment Situation—July 2010. August 8, 2010. Existing Home Sales Slip in June. July 22, 2010, family programs. Available at http://www.hud.gov/ 59 S&P/Case Shiller. Press Release, July 27, 2010. p. 1. offices/hsg/comp/rpts/ooe/olmenu.cfm.

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Refinance Rate. The share of the Specifically, when the refinancing of combination of depressed housing mortgage market that is from refinancing mortgages is motivated by low interest prices and high LTV ratios could existing mortgages has an impact on the rates, the market is dominated by higher disproportionately decrease the number share of affordable refinance mortgages. income borrowers. In addition, a

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of low-income homeowners refinancing income areas home purchase housing housing market. ‘‘Employment stability their mortgages. goal by ¥0.4 percent, and the low- and job growth are keys to a housing Manufactured Housing Loans. During income borrower refinance housing goal recovery. In addition to alleviating 2004 to 2008, 57 percent of by ¥0.3 percent. The projected market worker’s fears about their next manufactured housing loans were estimates in Table 6 reflect these paycheck, improving employment higher cost, according to the HMDA adjustments. measures help boost the confidence of data. Only 8.5 percent of manufactured Given all of the influences on the households that are considering buying housing loans, with most being housing and mortgage markets, the a home.’’ 64 Mortgage interest rates are refinance loans, were from lenders who outlook for the 2010–2011 period currently dependent on federal policies, specialized in serving riskier borrowers. remains guarded. In developing its somewhat independent of the federal To adjust the market estimates of the Economic and Mortgage Outlook (see funds rate and influenced by the housing goals to account for the effect Table 5, below), FHFA uses an average economic situation in Europe. The from chattel loans on manufactured of forecasted values for key economic housing, FHFA weighted the average indicators drawn from several industry Federal Open Market Committee is 2004 to 2008 manufactured housing sources.63 On average, industry committed to a low federal funds rate contribution to the goals market forecasters project the economy to policy (at 0 to 0.25 percent) as it estimates by 60 percent for the home rebound in 2010 and 2011, with real ‘‘continues to anticipate that economic purchase mortgage goals and 50 percent Gross Domestic Product (GDP) growing conditions, including low rates of for the refinance mortgage goal. The at a rate of 3.0 and 2.7 percent, resource utilization, subdued inflation market estimates were adjusted respectively. Industry assessments of trends, and stable inflation expectations, downward by that amount. This housing markets generally are are likely to warrant exceptionally low resulted in the market estimate for the conservative. The unemployment rate is levels of the federal funds rate for an low-income home purchase housing expected to remain above eight percent extended period.’’ 65 For the 2010 and goal being adjusted by ¥0.9 percent, the during 2010 and 2011. As uncertainty in 2011 period, the forecasts polled by very low-income home purchase the job market remains, it will continue FHFA show that interests rates will housing goal by ¥0.3 percent, the low- to have a negative impact on the remain near recent levels.

63 These forecasts include those by the Mortgage and Poor’s, The Conference Board and The Federal 65 Board of Governors of the Federal Reserve Bankers Association, Fannie Mae, Freddie Mac, the Reserve Board’s Federal Open Market Committee. System. Press Release of the Federal Open Market National Association of Realtors, Wells Fargo, Wall 64 National Association of Home Builders. Eye on Committee, June 23, 2010. Street Journal Forecast Survey, PNC Financial, the Economy—Private Sector Job Growth Slows in National Association of Home Builders, Standard May, June 10, 2010.

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FHFA’s estimates of the market corresponding estimates in Table 6 of impact on the market for these three performance for the two single-family the proposed rule shows that the housing goals, that impact is owner-occupied home purchase housing estimates have not changed. The insignificant. The market for the low- goals and one subgoal, and the estimated share of goal-qualifying income areas housing goal is influenced refinancing mortgage housing goal, are mortgages in low-income areas in the by the level of home sales. During provided in Table 6. For 2010 and 2011, home purchase mortgage market, periods when home sales are increasing, FHFA estimates that the low-income excluding designated disaster areas, in a smaller share of the additional home and very low-income borrower shares of 2010 and 2011, remained at the 13 sales take place in low-income areas. the home purchase mortgage market percent of home purchase mortgages Home sales are expected to fall slightly will be 27 percent and 8 percent, estimate that was published in the in 2010 and then rebound in 2011.66 respectively. Comparing these market proposed rule. While changes in estimates in Table 6 with the expected economic conditions had an

The refinance share of the market, as each goal, based on a monthly time Single-Family Housing Goals,’’ which is measured by the Mortgage Bankers series database provided by the Federal available at http://www.fhfa.gov. Association, was 65 percent during the Financial Institutions Examination FHFA used all relevant information first quarter of 2010. With interest rates Council (FFIEC) and the Federal Reserve when determining the benchmark levels projected to be at historical lows during Board. For the low-income areas goal, for the 2010 and 2011 housing goals. the remainder of 2010, there is real this model produced only the market While the tightening of underwriting potential for refinance rates to be higher estimates for the subgoal. The remainder standards is not included in the market than currently anticipated. With a of the market estimates for this goal estimates calculation, it was considered projected refinance rate of 62 percent in relates to the designated disaster areas. in the determination of the benchmark 2010 (down from 65 percent in 2009), FHFA estimates that 11 percent of home levels. FHFA attempts to use the most FHFA estimates that 18 percent of purchase mortgages originated in 2010 current data possible when estimating refinance mortgages will be made to will qualify for the low-income areas market size, including information from low-income borrowers in 2010. The goal because the properties associated the Monthly Interest Rate Survey (MIRS) refinance rate is expected to fall to 40 with these mortgages are located in to extend HMDA goal performance data. percent in 2011, resulting in an estimate designated disaster areas that are not To extend the series for the three single- that the low-income borrower mortgage already classified as low-income or high family home purchase goals through share of the refinance mortgage market minority. The methodology used in 2009, FHFA supplements the HMDA will be 20 percent in 2011. FHFA’s analysis of the mortgage market series with estimated market series of To arrive at these estimates, FHFA for 2010 and 2011 is contained in a goal-qualifying shares provided by used econometric methods to extend the document entitled ‘‘Market Estimation Freddie Mac that are based on MIRS trends of the market performance for Model for the 2010 and 2011 Enterprise data. Guidance for calculating market

66 The average industry January forecast for home units respectively. This is compared to the 5.5 and sales during 2010 and 2011 was 5.9 and 6.5 million 6.0 million units from Table 5.

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size using historical HMDA data is Housing goal for low-income families. available for multifamily housing in provided in the ‘‘Market Estimation The benchmark level of the annual goal previous years; Model for the 2010 and 2011 Enterprise for each Enterprise’s purchases of (3) The size of the multifamily Single-Family Housing Goals’’ published purchase money mortgages on owner- mortgage market for housing affordable by FHFA. The market estimation occupied single-family housing for low- to low-income and very low-income methodology for estimating current and income families is 27 percent of the families, including the size of the future market size is provided in that total number of such mortgages multifamily markets for housing of a market estimation model document. As purchased by that Enterprise, as in the smaller or limited size; noted above, FHFA will use the Federal proposed rule. (4) The ability of the Enterprise to Housing goal and subgoal for families Reserve Board’s new guidelines of 150 lead the market in making multifamily in low-income areas. The benchmark basis points or more above APOR to mortgage credit available, especially for level of the annual goal for each identify higher-cost loans. multifamily housing affordable to low- Enterprise’s purchases of purchase income and very low-income families; 7. Financial Condition of the Enterprises money mortgages on owner-occupied (5) The availability of public The financial performance of both single-family housing for families in subsidies; and Enterprises is dominated by credit- low-income areas will be set annually related expenses and losses stemming by notice from FHFA. The benchmark (6) The need to maintain the sound 67 principally from purchases of PLS and level will be based on the benchmark financial condition of the Enterprise. purchases and guarantees of mortgages level for the low-income areas subgoal, FHFA’s analysis of each of the factors, originated in 2006 and 2007. Since the plus an adjustment factor that reflects which has been updated since the establishment of the conservatorship for the incremental percentage share that proposed rulemaking, is set forth below. the Enterprises in September 2008, the mortgages for low- and moderate- income families in designated disaster 1. National Multifamily Mortgage Credit combined losses of the two Enterprises Needs depleted their capital and required them areas had in the most recent year for to draw from the U.S. Treasury under which data is available. The benchmark At the onset of the mortgage credit the Senior Preferred Stock Purchase level of the annual subgoal for each crisis, traditional sources of multifamily Agreements. Fannie Mae has drawn Enterprise’s purchases of purchase credit, primarily commercial mortgage- $85.1 billion and Freddie Mac has money mortgages on owner-occupied backed securities (CMBS), life insurance drawn $63.1 billion in Treasury support single-family housing for families in companies, commercial banks, and under the Senior Preferred Stock low-income census tracts and for low- thrifts, significantly reduced lending or Purchase Agreements, over $148 billion and moderate-income families in stopped lending completely. This in total. minority census tracts is 13 percent of contraction left Freddie Mac and Fannie the total number of such mortgages As discussed above, FHFA’s duties as Mae as the principal sources of purchased by that Enterprise. conservator require the conservation financing for most multifamily owners Housing goal for very low-income and preservation of the assets of the two and investors. Although FHA has families. The benchmark level of the Enterprises. While reliance on the increased significantly its non- annual goal for each Enterprise’s Treasury Department’s backing will healthcare, non-new construction purchases of purchase money mortgages continue until legislation produces a endorsements in fiscal year 2010 as on owner-occupied single-family final resolution to the Enterprises’ compared to fiscal year 2009, it remains housing for very low-income families is future, FHFA is monitoring the a relatively small player in the 8 percent of the total number of such activities of the Enterprises to: (a) Limit multifamily refinance market. Data on mortgages purchased by that Enterprise, their risk exposure by avoiding new initial endorsements for the first eight as in the proposed rule. months of fiscal year 2010 show more lines of business; (b) ensure profitability Housing goal for refinancing in the new book of business without than a four-fold increase in initial FHA mortgages. The benchmark level of the endorsements of non-healthcare, non- deterring market participation or annual goal for each Enterprise’s hindering market recovery; and (c) new construction multifamily loans to purchases of refinancing mortgages on over $3.7 billion.68 While this number is minimize losses on the mortgages owner-occupied single-family housing already on the books. Given the much less than Enterprise purchases for low-income families is 21 percent of over the same period, FHA has managed importance of the Enterprises to the the total number of such mortgages housing market, any goal-setting must to increase its business, in part, because purchased by that Enterprise, an its underwriting parameters are less be closely linked to putting the adjustment downward from the 25 Enterprises in sound and solvent stringent than those of the Enterprises.69 percent level in the proposed rule to Life insurance companies appear to be condition. Over the long term, such reflect current market conditions. actions will assist homeowners and returning to the multifamily market. neighborhoods while saving the E. Analysis of Factors for Multifamily According to data from the MBA, life Enterprises money. In 2009, FHFA Housing Goals insurance companies have increased originations of commercial property adjusted the Enterprises’ housing goal Section 1333(a)(4) of the Safety and loans, including multifamily loans, by levels to align them with safe and sound Soundness Act, as amended by HERA, practices and market reality, and the requires FHFA to consider the following housing goals requirements for 2010 and six factors in setting multifamily special 67 12 U.S.C. 4563(a)(4). 2011 must be similarly aligned. 68 Source: FHA Multifamily Data Base available affordable housing goals: at: http://www.hud.gov/offices/hsg/mfh/fhamie/ D. Single-Family Housing Goal Levels (1) National multifamily mortgage iecompiled10.pdf. credit needs and the ability of the 69 FHA permits LTVs up to 85 percent and DSCR Based on the factors described above, Enterprise to provide additional ratios as low as 1.176 on its primary market rent § 1282.12 of the final rule establishes liquidity and stability for the refinance program Section 223(f). This compares to Enterprise maximum LTVs of 80 percent and a the benchmark levels for the single- multifamily mortgage market; minimum DSCR of 1.25. Earlier in 2010, FHA family housing goals for 2010 and 2011 (2) The performance and effort of the announced plans to raise the DSCR for Section as follows: Enterprise in making mortgage credit 223(f) loans to 1.2 from 1.176.

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131 percent in the first quarter of 2010, 13.34 percent from 5.17 percent a year purchases of mortgages on multifamily compared to the same period in 2009.70 earlier. As properties collateralizing housing ‘‘of a smaller or limited size that With multifamily property prices CMBS issuances become delinquent, is affordable to low-income families.’’ having fallen by almost 31 percent from foreclosures and workouts will increase, The provision defines small multifamily the third quarter of 2008 to the first further depressing prices of all projects as those containing 5 to 50 quarter of 2010,71 many properties that commercial properties, including units or as those with mortgages of up would have been eligible for refinance multifamily properties. This will make to $5,000,000. The Director may adjust through Enterprise programs lack refinancing maturing multifamily loans the definition to include projects enough equity to meet Enterprise loan more challenging for the Enterprises. containing different numbers of units or underwriting standards. The decline in While multifamily delinquencies with mortgages of different amounts. multifamily property prices will remain relatively low for both Fannie The provision further states that the adversely affect owners who financed Mae 74 and Freddie Mac,75 there is Director may establish additional with interest-only loans over the past growing concern among multifamily requirements related to such units by decade. As these loans become due, property owners and investors about regulation. properties with non-amortizing loans properties that are overleveraged or As in the proposed rule, FHFA is may not have sufficient equity to generating negative cash flows. defining smaller multifamily properties counter the effects of declining property as those containing 5 to 50 units, which values. 2. Past Performance is consistent with industry standards. Demand for new multifamily housing HUD established dollar-based FHFA already requires reporting by the credit has also waned due to the credit multifamily housing subgoals for the Enterprises on purchases of mortgages crunch and the existing oversupply of Enterprises for the years 1996 through on such properties. multifamily units. According to the U.S. 2008. HERA extended the 2008 subgoals Census Bureau, multifamily housing through 2009, subject to review by Multifamily special affordable starts plummeted by two-thirds from FHFA, and FHFA increased these 2009 housing goals. Both Enterprises played April 2008 to April 2010.72 Sales of subgoals modestly, from $5.49 billion to major roles in funding multifamily units multifamily properties are far below $6.56 billion for Fannie Mae, and from for low-income families between 2001 normal levels in part because owners $3.92 billion to $4.60 billion for Freddie and 2009, as shown in Table 7. Fannie are waiting for property values to Mac. Mae financed an average of 410,000 stabilize. Many other multifamily HERA changed the structure of the such units over this period, peaking at property owners, unable to refinance, multifamily goals for 2010 and beyond. 599,000 units in 2003, while Freddie have been granted extensions by The multifamily housing subgoals for Mac financed an average of 331,000 lenders, or in the case of loans 2009 were set in terms of units for very units, peaking at 493,000 units in 2007. securitized through CMBS, by the low-income families and low-income However, as discussed elsewhere in the servicer. On the positive side, the families in low-income areas. The scope final rule, the Enterprises followed maturations of multifamily loans of the goals is broader for 2010–11, different approaches to the multifamily acquired by the Enterprises and backing covering units affordable to all low- market, with Freddie Mac relying to a CMBS issuances are unlikely to begin to income families (those with incomes no significant extent on the purchase of increase significantly until after 2010. greater than 80 percent of AMI), CMBS, while Fannie Mae depended to In the CMBS portion of the regardless of property location. a greater extent on the direct purchase multifamily market, while the Section 1333(a)(2) of the Safety and of multifamily loans originated by its Enterprises have primarily purchased Soundness Act, as amended by HERA, Delegated Underwriting and Servicing the highest-rated CMBS tranches, they requires the Director to establish (DUS) lenders. Data on low-income may be indirectly affected by increasing ‘‘additional requirements for the multifamily units financed, excluding CMBS delinquency rates. According to purchase by each enterprise of CMBS purchases, are shown in the last 73 May 2010 data released by TREPP, mortgages on multifamily housing that two columns of Table 7. delinquencies on multifamily properties finance dwelling units affordable to very financed by CMBS issuances rose to As indicated in Table 7, Fannie Mae’s low-income families,’’ with ‘‘very low- financing of low-income multifamily income families’’ defined as those with 68 Source: FHA Multifamily Data Base available units fell by 16 percent in 2008, from at: http://www.hud.gov/offices/hsg/mfh/fhamie/ incomes no greater than 50 percent of 542,000 units in 2007 to 456,000 units iecompiled10.pdf. AMI. To implement this provision, in 2008, and by an additional 46 percent 69 FHA permits LTVs up to 85 percent and DSCR consistent with the proposed rule, in 2009, to 235,000 units. Such ratios as low as 1.176 on its primary market rent FHFA is establishing a multifamily refinance program Section 223(f). This compares to financing fell more sharply at Freddie Enterprise maximum LTVs of 80 percent and a subgoal for very low-income families. Mac, by 44 percent, from 493,000 units minimum DSCR of 1.25. Earlier in 2010, FHA Section 1333(a)(3) of the Safety and in 2007 to 276,000 units in 2008, and by announced plans to raise the DSCR for Section Soundness Act, as amended by HERA, an additional 40 percent in 2009, to 223(f) loans to 1.2 from 1.176. provides that the Director shall require 167,000 units. This difference reflects 70 ‘‘MBA Study: First Quarter 2010 Commercial/ each Enterprise to report on its Multifamily Mortgage Originations Increase from the drop in CMBS purchases by Freddie Year Earlier, Though Levels Remain Low, 5/18/ Mac. As a result, Freddie Mac’s 2010’’, available at: http://www.mbaa.org/ 74 Fannie Mae: Monthly Summary, April 2010, financing of such units was 61 percent Table 9. NewsandMedia/PressCenter/72890.htm. of Fannie Mae’s financing in 2008, the 71 Moody’s/Real CPPI Report May 2010, available 75 Freddie Mac: Monthly Volume Summary: April at: http://web.mit.edu/cre/research/credl/rca.html. 2010, Table 6. lowest ratio of the period.

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Very low-income multifamily size. This definition was changed by such units each year and Freddie Mac subgoals. HERA revised the definition HERA to refer to borrowers with funded 74,000 such units. The same of ‘‘very low-income’’ families as it incomes no greater than 50 percent of general pattern prevailed over time as pertains to the Enterprises’ housing AMI, or for rental units, to units that shown in Table 7 between 2007 and goals. Under the housing goals affordable to families with incomes in 2009, with a significant drop in funding established by HUD for 1993–2008 and this range, with adjustments for family by Fannie Mae (49 percent) and a as revised by FHFA for 2009, ‘‘very low- size. The new definition of ‘‘very low- substantial drop by Freddie Mac (80 income’’ referred to borrowers with income families’’ is consistent with that percent). As a result, the number of such incomes no greater than 60 percent of used in some other housing programs. units financed by Freddie Mac in 2009 Enterprise financing of rental units for AMI, or for rental units, to units was only 33 percent of the number very low-income families over the affordable to families with incomes in financed by Fannie Mae, the lowest 2001–09 period is reported in Table 8. this range, with adjustments for family On average, Fannie Mae funded 92,000 ratio of this period.

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Financing of low-income units in families, and such data is reported in comparable average for Freddie Mac small multifamily properties. As Table 9. was 24,000 such units. discussed above, HERA recognizes the Both Enterprises increased their Since 2007, both Enterprises’ roles in important role played by small financing of low-income small this market have fallen significantly. multifamily housing as a source of multifamily units between 2001 and Fannie Mae’s purchases of mortgages affordable rental housing. According to 2003, from 24,000 units to 155,000 units financing low-income units in small the 2007 American Housing Survey for Fannie Mae, and from 44,000 units multifamily properties fell from 65,000 (AHS), multifamily properties to 139,000 units for Freddie Mac. This units in 2007 to 44,000 units in 2008 containing 5–49 units constituted 77 increase was motivated at least in part and 13,000 units in 2009, a combined percent of all multifamily units and 74 by the ‘‘bonus points’’ that HUD gave for decrease of 79 percent. The decline was percent of multifamily units constructed financing goal-qualifying units in small even sharper for Freddie Mac, from in the previous 4 years. Other sources multifamily properties over the 2001–03 24,000 units in 2007 to 2,100 units in indicate that a smaller, but still period. Under these ‘‘bonus points,’’ 2008 and only 528 units in 2009, a significant, share of multifamily units each goal-qualifying unit counted twice combined decrease of 98 percent. are located in small multifamily in the numerator and once in the Although the Safety and Soundness 76 properties. HERA requires reporting of denominator in calculating goal Act requires FHFA to consider the past the Enterprises’ role in this market with performance. performance of the Enterprises in regard to units affordable to low-income As indicated in Table 9, both establishing the multifamily housing Enterprises decreased their roles in the goals, current market conditions suggest 76 American Housing Survey for the United small multifamily market after the that many fewer units are likely to be States: 2007, U.S. Department of Housing and ‘‘ ’’ Urban Development and U.S. Department of expiration of HUD’s bonus points in readily available for purchase in a safe Commerce, Bureau of the Census, September 2008, 2004. Fannie Mae financed an average and sound manner in 2010 and 2011. Table 1A–1, page 1. of 49,000 units for 2004–07, while the Measuring the multifamily goals as was

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done previously would ignore the steep fall in multifamily property values and high vacancy rates, among other factors. BILLING CODE 8070–01–P

BILLING CODE 8070–01–C increase. Projections of such activity, historical levels due to weakness in the 3. Market size however, are uncertain. For purposes of multifamily housing market. Steep this rulemaking, the multifamily goals declines in multifamily property prices The size of the overall multifamily for both 2010 and 2011 are based on the since mid-2007 have caused a mortgage market is likely to remain overall multifamily market for 2009 and significant loss of equity for owners, relatively unchanged in 2010 as Enterprise multifamily performance in many of whom can no longer qualify for compared to 2009, and the dollar recent years, and on current multifamily Enterprise financing without placing amount of multifamily loans financed in market conditions. As in prior years, the 2010 will likely be similar to that of substantial cash into the property. The multifamily goals are set separately for 2009, approximately $40–45 billion. loss of equity for most owners has Poor property fundamentals, especially each Enterprise. Unlike prior years, the meant that only financially strong declines in property value, will affect multifamily goals are measured in units properties and borrowers will qualify the type of properties and owners that rather than dollar volume. for Enterprise financing. These can access multifamily credit. If the The proportion of multifamily properties often have a much lower multifamily market begins to recover in affordable units available for financing proportion of affordable units. 2011, multifamily originations may in 2010 and 2011 will likely be below

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Another factor that will likely rents and falling property values). As a 6. Financial Condition of Enterprises constrain Enterprise multifamily loan result, the Enterprises have enhanced The financial performance of both production in 2010 and 2011 will be the their credit standards to reduce risk Enterprises, including the establishment relatively small dollar amount of loans exposure, which has meant that owners of the conservatorship for the maturing in the Enterprise portfolios in of the strongest performing properties Enterprises in September 2008, is 2010 and 2011. The MBA expects only are more likely to obtain credit from discussed in more detail above. FHFA $26 billion in total maturing lenders selling to the Enterprises. As has considered the multifamily housing multifamily mortgages in 2010. noted previously, Fannie Mae and goals in light of the importance of the However, the volume of maturing loans Freddie Mac have recently composed a Enterprises to the housing market and in is expected to increase from 2011 larger than usual portion of the light of FHFA’s duties as conservator to 77 onward. multifamily market. For example, while conserve and preserve the assets of the For well over a decade, Freddie Mac Fannie Mae estimates that its share of Enterprises. FHFA has aligned the relied upon purchases of CMBS and the multifamily market ranged from 21– multifamily housing goal levels for 2010 structured deals involving large 28 percent in the period from 2004 to and 2011 with safe and sound practices portfolios of affordable multifamily 2007, its multifamily market share was and market reality. loans to meet applicable affordable 47 percent in 2009. In the years 2010– housing goals. Beginning in 2006 and F. Multifamily Housing Goal Levels 2011, the Enterprises’ share of the 2007, CMBS made up a significant As a result of the changes in HERA, portion of Fannie Mae’s affordable market will likely not be as large because of renewed competition from the final rule establishes the multifamily multifamily purchases. These sources of affordable housing goals for each affordable units are now either other multifamily market players, including life insurance companies and Enterprise separately from the single- unavailable or do not meet Enterprise family housing goals beginning in 2010. standards. Therefore, based on the banks, and declining multifamily market fundamentals. Qualifying multifamily units previously factors discussed above, multifamily had been included with single-family affordable purchases in the very low- 5. Availability of Public Subsidies affordable purchases in the overall income category are near historical lows goals. Additional requirements for in 2009 overall. The effect, though, will Public subsidies for multifamily multifamily housing were imposed be more pronounced at Freddie Mac. housing have been affected by the under a multifamily special affordable The percentage of very low-income mortgage credit crisis. Low-income subgoal. Consistent with the proposed multifamily purchases in 2010 for housing tax credits (LIHTCs), an rule, the multifamily affordable goals for Freddie Mac will likely be below its important source of equity for new low- each Enterprise in the final rule are average for 2004 to 2008, while Fannie income housing, have fallen in value. established in terms of low-income and Mae will likely have a very low-income However, on October 19, 2009, FHFA very low-income units financed purchase volume near its average for the announced, in conjunction with the annually. past several years. As discussed Treasury Department and HUD, an Regarding the setting of multifamily elsewhere in this final rule, CMBS units initiative to support state and local goals, one commenter noted that there will no longer receive credit towards the housing finance agencies (HFAs) does not appear to be a convenient housing goals. through a new bond purchase program measure of the market, particularly for 4. Ability of the Enterprise To Lead the to support new lending by HFAs, and a very-low income families. The Market in Making Multifamily Mortgage temporary credit and liquidity program commenter suggested using HMDA data Credit Available to improve the access of HFAs to to calculate the size of the small multifamily property market, and As described above in the context of liquidity for outstanding HFA bonds. estimating the size of the large the single-family goals, Congress in Fannie Mae and Freddie Mac each multifamily property market. The enacting the Safety and Soundness Act played critical roles in this program, overall size of the market could then be was concerned that the Enterprises were which helped support low mortgage estimated in dollars. FHFA received lagging behind market originations of rates and expand resources for low- and four comments generally supporting the mortgages for the benefit of low- and middle-income borrowers who want to multifamily housing goal levels in the moderate-income households. FHFA purchase or rent homes that are proposed rule. One policy advocacy has been cognizant of that concern in affordable over the long term. group supported the goal levels, but setting goals for the Enterprises. The Enterprises actively purchase cautioned that increasing the With the current credit crisis mortgages on properties with HUD Enterprises’ performance for very-low negatively affecting the commercial real Section 8 Housing Assistance Plan income families may be difficult estate market, the Enterprises became (HAP) contracts. Newly constructed or without a significant increase in the market leaders by default. The rehabilitated properties usually receive availability of housing subsidies disciplined underwriting and credit forward commitments from the through which rents can be made standards they bring to the industry Enterprises with part of the new equity affordable to such families. have contributed to relatively low coming from LIHTCs. The remaining Eight commenters opposed the delinquency rates. Compared to the properties are refinancings where the proposed multifamily goal levels. Two industry, the Enterprises have relatively property owners sign long-term use not-for-profit organizations stated that conservative multifamily underwriting agreements with HUD and receive a rather than focus on multifamily goal parameters. Although showing signs of HAP contract in return. The Enterprises targets, the Enterprises should address improvement, the fundamentals of the can also assist state and local HFAs by the unmet demand for affordable multifamily real estate market are still credit enhancing HFA bonds, and by multifamily financing by focusing on weak (e.g., high vacancy rates, stagnant offering permanent financing for the overall quality and effectiveness of properties rehabilitated through the project-specific efforts, prototypes and 77 Multifamily Housing News: Special Report: MBA Says Large Amounts of Multifamily Loans Will Neighborhood Stabilization Program market-wide coverage. One trade Mature in 2011 and After, Feb. 11, 2009. and other HUD grants. association commented that the

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multifamily goals should continue to be underwrite than mortgages on large dwelling units for each of 2010 and measured as previously, stating that the properties because the costs, mostly 2011, a decrease from the 215,000 units proposed goals were too precise for fixed, are spread over fewer units.78 The set in the proposed rule. these uncertain times. Two other trade DUS program helps Fannie Mae mitigate Multifamily very low-income housing associations commented that the some of the credit risk of financing subgoal. Under the final rule, the annual proposed goal levels were too low, affordable multifamily units. subgoal for Fannie Mae’s purchases of based on previous Enterprise Since Fannie Mae will likely finance mortgages on multifamily residential performance. One trade association significantly more multifamily units in housing affordable to very low-income added that the Enterprises are now the 2010 than Freddie Mac, consistent with families is at least 42,750 dwelling units principal source of financing for the proposed rule, the final rule sets for each of 2010 and 2011, a decrease affordable rental housing, and FHFA distinct goals for each of the Enterprises, from the 57,000 units set in the should push them to remain as market as was done in previous years. FHFA proposed rule. The annual subgoal for leaders. Both Enterprises stated that the anticipates that for low-income units Freddie Mac’s purchases of mortgages multifamily goal levels were too high, and very low-income units, multifamily on multifamily residential housing and that the demand for multifamily mortgages acquired by Freddie Mac will affordable to very low-income families financing is too weak to support such finance fewer units than multifamily is at least 21,000 such dwelling units for levels. mortgages acquired by Fannie Mae in each of 2010 and 2011, a decrease from The final rule lowers the multifamily 2010 and 2011. The disparity will be the 28,000 units set in the proposed goal levels by approximately 25 percent even greater for very low-income units. rule. from those in the proposed rule. The Freddie Mac will likely purchase G. Small Multifamily Properties lower goal levels reflect the uncertain multifamily loans that finance about state of the overall multifamily market, half as many very low-income units as HERA requires the Enterprises to the anticipation that the Enterprises will will be financed by multifamily loans report on purchases of mortgages play a less dominant role in that market acquired by Fannie Mae in 2010 and secured by small multifamily properties. through 2011 as competition for market 2011. In the proposed rule, FHFA invited share increases from such traditional Unlike with the dual approach for the comment on whether additional players as life insurance companies and single-family goals described above, requirements for small multifamily banks, the decrease in properties FHFA has not defined the multifamily properties should be considered. Five commenters supported the qualifying for Enterprise multifamily goals as prospective market-based establishment of small multifamily financing as a result of steep declines in targets, with a provision to be measured housing goals. They stated that this is an multifamily property prices and retrospectively against actual market underserved market segment and should declining fundamentals in the market data. The availability of the necessary (e.g. debt service ratios and LTV ratios, be a focus for the Enterprises. One market data to measure affordability of policy advocacy group stated that a deteriorating property conditions), and rents in the multifamily market, the adverse impact on multifamily small multifamily housing goal would prospectively or retrospectively, is less recognize the vast majority of renters production as a result of decreased certain. As a result, consistent with the LIHTC investment. who live in small multifamily proposed rule, the final rule sets the properties. However, the commenter As noted earlier, Freddie Mac’s multifamily goals in the traditional multifamily volume has not kept pace added that this still would not address prospective volume of business manner. the significant number of single-family with Fannie Mae’s multifamily volume However, these goals remain subject to since the beginning of the credit crisis rentals. A governmental entity stated the statutory provisions enabling them in 2008, especially for very low-income that the goal should be expanded to to be adjusted, or providing relief from units, due in part to Freddie Mac’s include mixed-use residential properties enforcement, if multifamily market reliance on CMBS and structured that include one- to four-family conditions so require. purchases from banks and thrifts. buildings with ground floor commercial FHFA considered previous Structured purchases are not readily space. multifamily performance and the available and are likely to reappear in Three commenters opposed current market in setting the only limited volumes in the near term. establishing a small multifamily multifamily goals in the final rule as Pursuant to this final rule, CMBS units housing goal. One trade association well as revisions in the final rule which will no longer count toward the housing supported reporting requirements for disallow counting CMBS toward goals. small multifamily properties rather than Fannie Mae, on the other hand, is multifamily goals in setting these establishing a goal, and recommended better positioned than Freddie Mac to revised goals. that FHFA meet with industry and finance affordable units through its flow Multifamily low-income housing goal. banking representatives to explore small business. For example, Fannie Mae has Under the final rule, the annual goal for multifamily options. Both Enterprises a division dedicated to purchasing Fannie Mae’s purchases of mortgages on stated that small multifamily housing mortgages on small multifamily multifamily residential housing requirements were not necessary at this properties (5 to 50 units). Smaller affordable to low-income families is at time, citing the current state of the properties, in general, have higher least 177,750 dwelling units for each of multifamily market and the financial percentages of affordable units than 2010 and 2011, a decrease from the condition of the Enterprises. larger properties. Furthermore, Fannie 237,000 units set in the proposed rule. FHFA has considered these comments Mae’s DUS program allows it to share The annual goal for Freddie Mac’s and determined that the Enterprises credit losses with lenders. Mortgages on purchases of mortgages on multifamily should not be subject to small small multifamily properties, however, residential housing affordable to low- multifamily housing subgoals while in are often more at risk of delinquency income families is at least 161,250 such conservatorship. Such new subgoals and default than other multifamily could be viewed as encouraging 78 ‘‘Why do Small Multifamily Properties Bedevil mortgage property types. Mortgages on Us?’’ Shekar Narasimhan, The Brookings Institution, substantial new activity in an area in small multifamily properties are usually Nov. 2001, http://www.brookings.edu/articles/2001/ which the Enterprises have limited more expensive to originate and 11metropolitanpolicy_narasimhan.aspx. operational capacity. Accordingly, the

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final rule does not establish such occupied units with missing data up to As in the proposed rule, § 1282.16(b) subgoals but, as provided by HERA, the one percent of the total number of of the final rule makes clear that where Enterprises will be required to continue single-family owner-occupied units a mortgage falls within one of the to report on their activity in this area. backing mortgages purchased by an categories excluded from consideration Enterprise has been removed because it under the housing goals, the mortgage is H. Discretionary Adjustment of Housing excluded even if it otherwise falls Goals—§ 1282.14 is no longer in use by either Enterprise. The option to request approval of within one of the special counting rules Consistent with the requirements of alternative methodologies has also been in § 1282.16(c). For example, a non- section 1334 of the Safety and removed. In light of the shorter time conventional mortgage that is excluded Soundness Act, as amended by HERA, period for which the housing goals are from consideration pursuant to and the proposed rule, § 1282.14 of the being established, it should not be § 1282.16(b)(3) could not be counted final rule provides for an Enterprise to necessary to make changes to the rules even if it otherwise would be counted petition the Director to reduce the level for missing data prior to FHFA’s as a seasoned mortgage under of any goal or subgoal,79 and sets forth proposal of new housing goals for later § 1282.16(c)(6). Section 1282.16(c) also the standards and procedures for years. makes clear that where a transaction consideration by the Director in Contract rent. Under the proposed falls under more than one of the special determining whether to reduce a goal or rule, the definition of ‘‘contract rent’’ counting rules in § 1282.16(c), all of the subgoal level. would clarify that market rent would be applicable requirements must be One trade association supported the used as the anticipated rent for satisfied in order for the loan to be discretionary authority of the Director to unoccupied units. counted for purposes of the housing adjust the housing goals upon petition Freddie Mac recommended that goals. by the Enterprises. However, this effective rent, not market rent, be used Consistent with the proposed rule, commenter requested that any such § 1282.16(b) of the final rule does not to determine affordability. Freddie Mac petitions and adjustments be made include the provision that excluded and other industry participants use public to ensure transparent jumbo conforming loans from effective rent, which averages nearly six consideration of the full implications of consideration for purposes of the percent below market rent, when any such request. housing goals.80 These loans had been underwriting multifamily loans and FHFA considered this comment and excluded from consideration in the past determining property value. The use of determined that the final rule should because the goals had been established effective rent would align goals not make any changes to this section of based on market estimates that preceded qualification rules with these market the proposed rule, because it already the increases in the conforming loan standards. provides for public comment on such limits. Because the higher loan limits adjustments, consistent with the process FHFA understands that it is industry have been considered in the evaluation required under section 1334 of the practice when estimating cash flow for of the market for this final rule, it is no Safety and Soundness Act, as amended underwriting purposes to use rents net longer necessary to exclude such loans by HERA. of rent concessions. FHFA also from consideration for purposes of the understands that when rent concessions I. General Counting Requirements— housing goals. are given, the tenants pay less than the Equity investments in low-income § 1282.15 contract rent for that given period of housing tax credits. Consistent with the In the final rule, § 1282.15 sets forth time. However, since FHFA does not proposed rule, § 1282.16(b)(1) of the general requirements for the counting of have sufficient information to project final rule clarifies the existing rule to Enterprise mortgage purchases toward when and where rent concessions will refer more specifically to equity the achievement of the housing goals. be available to tenants or prospective investments in LIHTCs as being Except as described below, these tenants, FHFA uses contract rents as the excluded from counting toward the requirements are unchanged from the basis for establishing affordability and housing goals. general requirements set forth in the the multifamily housing goal and Four commenters supported the proposed rule. Performance under the subgoal targets. Since the affordability exclusion of Enterprise equity single-family housing goals will be of units in properties associated with investments in LIHTCs from counting evaluated based on the percentage of all the Enterprises’ mortgage acquisitions for purposes of the housing goals, and single-family, owner-occupied will be scored against a housing goal one commenter opposed such mortgages purchased by an Enterprise based on contract rents, § 1282.15(d) of exclusion. One policy advocacy group that meet a particular goal. Performance the final rule continues to require the commented that the lack of LIHTC under the multifamily housing goals Enterprises to use contract rents when investments is one reason for the short will be evaluated based on the total calculating affordability. supply of affordable housing for very number of units that meet a particular J. Special Counting Requirements— low-, low- and moderate-income goal and are financed by mortgages § 1282.16 families. Another policy advocacy group purchased by an Enterprise. commented that the Enterprises should The data estimation methodologies in Section 1282.16 of the final rule sets invest in LIHTCs but refrain from selling this section have been revised to reflect forth special counting requirements for these investments in a manner that changes in the housing goals for 2010 the receipt of full, partial or no credit for would destabilize the market. One trade and 2011. The methodology for a transaction toward achievement of the association agreed that investments in estimating affordability for single-family housing goals. A number of clarifying LIHTCs should be a non-qualifying rental properties has been eliminated as and conforming changes were proposed activity, but recommended that unnecessary because the single-family for this section to ensure consistent subordinate debt be allowed to fill the housing goals are measured in terms of application of the counting rules among financing gap. mortgages rather than units. The option the Enterprises. The final rule adopts FHFA recognizes that LIHTCs are an to exclude single-family owner- most of the changes from the proposed important component of the affordable rule, except as described in more detail 79 12 U.S.C. 4564. below. 80 See 12 CFR 1282.16(b)(10).

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housing financing structure. However, group stated that the Enterprises should small number of loans would be investments in LIHTCs have never been be allowed to count subordinate liens identified, but the cost of compliance counted for purposes of the housing on multifamily mortgages because it would be very high and inter-Enterprise goals, and the final rule does not make would help make low-cost capital cooperation in data sharing could any changes to that policy. available to support affordable lending. impact the competitive structure Home Equity Conversion Mortgages. Fannie Mae commented that between the Enterprises. Consistent with the proposed rule, subordinate liens allow multifamily In response to these comments and in § 1282.16(b)(3) of the final rule excludes owners to tap additional equity for view of the operational concerns all purchases of non-conventional property rehabilitation without expressed, the final rule retains the single-family mortgages, including requiring refinancing or payment of a restriction on counting an Enterprise’s mortgages insured under HUD’s HECM lockout waiver fee. Fannie Mae noted own mortgages more than once, which insurance program, from counting for that subordinate liens could comprise shall only extend back for five years. purposes of the housing goals. Certain five to ten percent of low- and very low- The final rule does not extend this non-conventional mortgages, including income multifamily units. Freddie Mac general restriction to mortgages the HECMs, have been counted for purposes commented that subordinate financing other Enterprise may have counted in a of the goals in the past. HERA, however, is an efficient and standard industry previous year. amended section 1332(a) of the Safety practice that is beneficial to both owners Certificate of occupancy. Proposed and Soundness Act to restrict the single- and residents of multifamily rental § 1282.16(b)(12) would have excluded family housing goals to include only housing. Freddie Mac stated that the purchases of mortgages secured by conventional mortgages.81 This exclusion of subordinate multifamily properties that have not been certified restriction does not preclude the loans from housing goal-eligibility as ready for occupancy from Enterprises’ purchase of Charter- would reduce the availability of capital consideration for purposes of the compliant non-conventional single- for multifamily properties, including for housing goals. family mortgages, including HECMs, but property repairs, improvements and Fannie Mae requested clarification on such purchases will not count toward upgrades. this counting issue for large multifamily the housing goals—that is, such Section 1282.16(b)(10) of the final properties that may be completed and purchases are excluded from both the rule excludes both single-family and certified for occupancy in stages. In numerator and denominator in multifamily subordinate liens from particular, Fannie Mae stated that the calculating goal performance. The final counting for purposes of the housing rule should clarify whether the entire rule also clarifies that the existing goals. This provision does not preclude project is excluded if any part is not yet exception that permitted certain non- the Enterprises’ purchase of Charter- certified, or if the certified units may be conventional multifamily mortgages to compliant subordinate lien mortgages, counted. Fannie Mae also stated that the count, continues to apply. but as with HECMs, such purchases do rule should clarify whether housing Subordinate liens. Proposed not count for purposes of the housing goals credit would be received in the § 1282.16(b)(10) would have excluded goals. Although multifamily mortgages year of certification or in the year of purchases of subordinate lien mortgages that finance dwelling units affordable to purchase. (second mortgages) from counting for low-income families generally count In the final rule, to avoid splitting purposes of the housing goals, as does toward the housing goals, it is not clear mortgage acquisitions across calendar the final rule. This excludes ‘‘piggy- whether all subordinate lien reporting years, mortgages will be back’’ liens that may be acquired by an multifamily mortgages are for the reported by an Enterprise, and receive Enterprise along with the corresponding purpose of financing dwelling units housing goals credit where applicable, first lien mortgage and subordinate lien affordable to low-income families. in the calendar year that all units are mortgages, such as home equity loans, Accordingly, the final rule does not certified for occupancy. This may result acquired separately by an Enterprise allow credit for subordinate lien in a delay in the reporting of a mortgage where the Enterprise does not also multifamily mortgages. FHFA may where not all units are certified for acquire the corresponding first lien solicit further public comment on occupancy at the time of mortgage mortgage. The proceeds of a home whether such mortgages, entered into in acquisition by the Enterprise. Mortgages equity loan are not used for the a manner that is safe and sound, and with a reporting delay due to lack of full purchase price of a property, and the which finance repairs, upgrades and certification for occupancy will be mortgage does not satisfy or replace an rehabilitation that benefit low-income excluded from both the numerator and existing mortgage and so does not count residents, should be counted for denominator of the multifamily housing toward the housing goals. FHFA purposes of the housing goals. goals calculations for the year of excluded piggy-back loans from Mortgages previously counted. acquisition. counting toward the housing goals Proposed § 1282.16(b)(11) would have Private Label Securities. As in the because such loans are not easily made explicit the existing prohibition proposed rule, § 1282.16(b)(13) of the distinguishable from home equity loans. on counting mortgages for purposes of final rule excludes PLS from counting One trade association supported the the housing goals if the mortgages had for purposes of the housing goals. general exclusion of subordinate or previously been counted for purposes of As discussed in the proposed second lien mortgages, as well as first the performance of either Enterprise rulemaking, historically, the lien mortgages accompanied by under the housing goals for a previous Enterprises—particularly Freddie Mac— simultaneous second lien mortgages, year. To limit excessively burdensome relied on PLS purchases to help them from counting for purposes of the recordkeeping that could result, the achieve certain affordable housing goals. housing goals. Four commenters proposed rule would have made clear Freddie Mac met the 2005 and 2006 supported providing housing goals that this limitation only extends back affordable housing goals and subgoals in credit for purchases of subordinate lien for five years. part through its purchases of AAA-rated mortgages on multifamily properties. A The Enterprises opposed this tranches of PLS backed by subprime trade association and a policy advocacy provision, commenting that compliance mortgages that were targeted to satisfy would be burdensome and operationally goals and subgoals. As house price 81 12 U.S.C. 4562(a). challenging. They stated that only a appreciation and rising interest rates

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reduced housing affordability, PLS with the interagency guidance on § 1282.16(b)(13). In addition, proliferated as the subprime share of the subprime lending and non-traditional § 1282.16(c) eliminates consideration of market grew to more than 20 percent. loans. FHFA also requested comments expiring assistance contracts, reflecting Fannie Mae and Freddie Mac began to on whether CMBS should be treated the changes under HERA to the former follow suit in response to declining differently from other PLS for purposes special affordable housing goal. market share and in pursuit of higher of the housing goals. Risk-sharing. The proposed rule profits. The Enterprises not only Five commenters supported excluding would not have changed existing modified their own underwriting PLS, while Freddie Mac favored § 1282.16(c)(3), which provides that a standards, but also bought hundreds of inclusion of PLS in the housing goals if mortgage purchase under a risk-sharing billions of dollars’ worth of AAA-rated due diligence on the characteristics of arrangement between an Enterprise and tranches of subprime and Alt-A PLS for the loans backing the securities is a Federal agency counts for purposes of the yield and, in certain instances, to conducted. The MBA supported the housing goals if the Enterprise was satisfy specific housing goals and excluding CMBS for goals credit, while responsible for a substantial amount of subgoals. three other commenters favored the risk, specified as at least 50 percent The results of providing large-scale including CMBS. One trade association of the risk. Section 1282.16(c)(3) of the funding for such loans were adverse for commented that Enterprise participation final rule does not include a specific borrowers who entered into mortgages in the market has expanded liquidity to percent that would constitute a that did not sustain homeownership and the apartment sector, and supported ‘‘substantial amount.’’ The change is not for the Enterprises themselves. housing goals credit for the purchase of intended to affect the substantive Although Fannie Mae and Freddie Mac CMBS for multifamily properties. The requirement that an Enterprise hold a have a combined 57 percent share of commenter recommended that a substantial portion of the risk in order mortgages outstanding in their reduced percentage of units be allocated for units to be counted for purposes of guaranteed portfolio, the mortgages in to CMBS. Both Enterprises opposed the the housing goals, but is intended to that portfolio account for only 25 exclusion of purchases of CMBS for provide more flexibility in determining percent of serious delinquencies. housing goals purposes. Fannie Mae on a case-by-case basis whether a However, while PLS account for 12 stated that maturing loans in CMBS particular risk-sharing program meets percent of all mortgages outstanding, securities are being extended by special that requirement. PLS account for 34 percent of serious servicers, reducing the number of loans Cooperative housing and delinquencies. As delinquencies in PLS available for refinancing or for sale. condominiums. Section 1282.16(c)(5) is portfolios triggered downgrades, 90 Freddie Mac commented that it has unchanged from the proposed rule and percent of the PLS holdings of the accomplished small multifamily amends the existing provisions Enterprises experienced a downgrade. financing through structured pool deals regarding cooperative housing and In light of that record, the final rule, like and CMBS purchases to mitigate the condominiums to reflect HERA’s the proposed rule, excludes PLS from higher risk of small multifamily finance. treatment of single-family housing and consideration under the housing goals. Freddie Mac also commented that these multifamily housing under separate In addition to the recent dismal avenues of finance are not available in goals. performance of PLS, it is reasonable to the current market, but they bring Mortgage revenue bonds. As in the separate any future growth of the PLS liquidity to the CMBS market and proposed rule, § 1282.16(c)(8) of the market from the Enterprises’ housing should receive goals credit. final rule removes current limitations on goals. The housing goals reflect Consistent with the exclusion of counting mortgage revenue bonds Congress’ concern that the Enterprises’ single-family PLS from the housing related to the source of funds for charter mission to support the stability, goals, the final rule does not count repayment and the presence of liquidity and affordability of the CMBS for purposes of the housing goals. additional credit enhancements. An secondary market not be managed to the While CMBS historically have helped Enterprise is required to have sufficient detriment or neglect of goal-eligible the Enterprises to meet multifamily information available to determine the mortgages. In this way the goals may be housing goals, purchases of CMBS do eligibility of any underlying mortgages seen as a mechanism to ensure that each not add liquidity to the multifamily before counting such mortgages or units Enterprise serves all segments of the market in the same way as the direct for purposes of the housing goals. mortgage market available to it. purchase and securitization of Two policy advocacy groups and the Accordingly, even to the extent that a multifamily mortgages by the Enterprises supported these proposed non-GSE secondary mortgage market Enterprises. changes to the counting rules. One returns, loans backing new or seasoned Housing Trust Fund and Capital policy advocacy group supported PLS will not count in either the Magnet Fund. As in the proposed rule, Enterprise investment in housing bonds numerator or the denominator for and pursuant to HERA, § 1282.16(b)(14) as a means to stabilize and improve purposes of the housing goals. of the final rule provides that Enterprise pricing in the market. The other policy As in the proposed rule, the final rule contributions to the Housing Trust Fund advocacy group commented that the also excludes CMBS from counting and the Capital Magnet Fund and inclusion of eligible mortgage revenue towards the housing goals. mortgage purchases funded with such bonds is important and helpful, because FHFA invited comments in the grant amounts shall not be counted for these bonds are often a major source of proposed rulemaking on the proposed purposes of the housing goals.82 lower-cost capital for the preservation exclusion of PLS, and on alternatives to REMICs. Consistent with the proposed and construction of affordable rental not counting PLS mortgages for rule, § 1282.16(c) of the final rule no housing units. Fannie Mae supported purposes of the housing goals. One longer includes real estate mortgage the inclusion of mortgage revenue alternative discussed was to allow PLS investment conduits (REMICs) as bonds, and recommended that the rule mortgages to be counted if an mortgage purchases for purposes of the be modified to provide full credit for appropriate senior Enterprise official housing goals, consistent with the dwellings financed by tax exempt or certified that the mortgages are general exclusion of PLS under taxable bonds issued by state and local compliant with all existing regulations HFAs. Freddie Mac commented that the regarding good mortgage practices, and 82 See 12 U.S.C. 4568, 4569. proposed provision will encourage the

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Enterprises to continue to support state with the original purpose of the loan. K. Affordability Definitions—§§ 1282.17 and local HFAs through the purchase of Loan modifications are more similar to Through 1282.19 single-family and multifamily mortgage refinancing mortgages than to purchase Consistent with the proposed rule, revenue bonds. money mortgages. A loan modification § 1282.17 of the final rule sets forth FHFA does not believe that a further changes the terms of the loan but definitions and establishes cutoff points broadening of the mortgage revenue involves the same property and the or boundaries for the statutory and bond counting rules is appropriate same borrower. A loan modification traditionally defined levels of while the Enterprises are in does not involve a new home purchase. affordability based on AMI for owners conservatorship. Thus, it is more appropriate to treat loan Loan modifications. Proposed and tenants of rental units where the § 1282.16(c)(10) would have treated modifications as refinancing mortgages family size and income are known to the certain modifications of single-family than as home purchase mortgages. Enterprise. In addition to the levels of loans held in an Enterprise’s portfolio or Accordingly, a modification of a low- affordability that currently appear at in a pool backing a security guaranteed income home purchase mortgage will § 1282.17, this section includes an by an Enterprise as mortgage purchases not be counted toward the low-income additional paragraph (e) for extremely for purposes of the housing goals. Only home purchase goal, as it was in 2009. low-income borrowers and tenants with modifications undertaken under the Rather, it will be counted in calculating income at or below 30 percent of AMI Making Home Affordable (MHA) performance on the low-income with adjustments for family size. program would have been eligible for refinance goal. As a result, performance Although the Enterprise housing goals inclusion. on the three home purchase goals for do not specifically target extremely low- Two commenters recommended that 2010–11 will not be affected by loan income borrowers or tenants, the final this counting treatment be expanded to modifications, but performance on the rule establishes cutoffs for determining such affordability to facilitate any include non-MHA single-family loan low-income refinance goal will be reporting or analysis of such data that is modifications and multifamily loan affected. That is, all permanent MHA modifications. One trade association required. loan modifications will be included in As in the proposed rule, § 1282.18 of recommended the inclusion of the denominator, and all permanent multifamily loan modifications, and the final rule sets forth definitions and MHA loan modifications for low-income stated that as a result of falling property establishes cutoff points or boundaries families will be included in the values and stress on rental income due for the statutory and traditionally to the extreme economic and numerator in calculating performance defined levels of affordability based on employment issues faced by multifamily on the low-income refinance goal in AMI for tenants of rental units where property owners, many owners will not 2010 and 2011. the family size is not known to the be able to refinance their loans. Freddie FHFA will consider providing credit Enterprise. In addition to the levels of Mac recommended that multifamily for MHA loan modifications in the final affordability that currently appear at loan modifications, as well as single- rulemaking on the Duty to Serve § 1282.18, this section includes an family loan modifications outside of requirements of HERA. additional paragraph (e) for extremely MHA, be eligible to count toward the low-income tenants with income at or HOEPA mortgages and mortgages housing goals. below 30 percent of AMI with The final rule adjusting the levels of with unacceptable terms or conditions. adjustments for unit size. the housing goals for 2009, which Consistent with the proposed rule, As in the proposed rule, § 1282.19 of generally lowered the housing goal § 1282.16(d) of the final rule relocates the final rule sets forth definitions and levels, allowed credit for MHA existing provisions regarding HOEPA establishes cutoff points or boundaries modifications. See 74 FR 39873, 39898 mortgages and mortgages with for the statutory and traditionally (Aug. 10, 2009). Proposed unacceptable terms or conditions from defined levels of affordability based on § 1282.16(c)(10) would have retained current § 1282.16(c). Placing these AMI for tenants of rental units where this provision. Loan modifications, provisions in a separate paragraph tenant income is not known to the however, are not readily incorporated reflects the fact that unlike other types Enterprise. In addition to the levels of into market estimates, which makes it of mortgage purchases, HOEPA affordability that currently appear at difficult to set housing goals that reflect mortgages and mortgages with § 1282.19, this section includes an the actual market. Accordingly, the final unacceptable terms and conditions must additional paragraph (e) for extremely rule provides that only permanent MHA be counted in the denominator as low-income tenants with income at or loan modifications will be counted as mortgage purchases but can never be below 30 percent of AMI with mortgage purchases for purposes of the counted in the numerator, regardless of adjustments for unit size. housing goals. For 2010, only whether the mortgages would otherwise L. Housing Goals Enforcement— modifications that were both initiated qualify based on the affordability and §§ 1282.20 and 1282.21 and made permanent in 2010 will be other counting criteria. counted for purposes of the housing Consistent with the proposed rule, goals. For 2011, only modifications that Multifamily property conversion. § 1282.20 of the final rule provides that were initiated in 2010 or 2011 and made Some commenters suggested that FHFA the Director shall determine whether an permanent in 2011 will be counted for revise the counting rules to deny Enterprise has met the housing goals, in purposes of the housing goals. housing goal credit for multifamily accordance with the standards Modifications that were opened on a loans that aid the conversion of established under the Safety and trial basis but not made permanent in properties from being affordable to Soundness Act, as amended by HERA 2010 or 2011 will not be given credit market rate properties, at which point and this final rule. If the Director toward the goals. the units, although initially scored as determines that an Enterprise has failed, In addition, all such permanent MHA affordable, would no longer be or there is a substantial probability that loan modifications will be treated as affordable. FHFA expects to address this an Enterprise will fail, to meet any refinance mortgages in 2010 and 2011, issue in a separate rulemaking following housing goal, the Director shall provide rather than being treated in accordance the implementation of this final rule. notice, in writing, to the Enterprise of

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such preliminary determination in already publicly available will be of the final housing goals rule, the book- accordance with 12 U.S.C. 4566(b). burdensome to the Enterprises. As in entry procedures in 24 CFR part 81 will As in the proposed rule, § 1282.21 of the proposed rule, § 1282.64 of the final no longer be in effect. the final rule includes requirements for rule eliminates the requirement for the As in the proposed rule, the final rule submission of a housing plan by an Enterprises to submit information that is also relocates definitions that are Enterprise for failure or substantial typically made available to the public currently found in § 1282.2 and that are probability of failure to meet any by each Enterprise. The Director may applicable only to the book-entry housing goal that was or is feasible. The continue to request such reports, procedures in part 1249 to a new section requirement to submit a housing plan is information and data as the Director 1249.10 in that part. The final rule at the discretion of the Director. deems necessary. Consistent with the makes conforming changes throughout the part, including a clarification that M. Reporting Requirements—Subpart D proposed rule, subpart D of the final rule does not include the provisions the waiver provision in § 1249.17 As in the proposed rule, subpart D of regarding submission of additional data applies only to the book-entry the final rule relocates existing or reports and the addresses for provisions in part 1249. Section 1249.15 Enterprise reporting requirements from submission of information that were has been amended to reflect the transfer part 81, subpart E of title 24 of the Code formerly found at 24 CFR 81.65 and of authority from the Secretary of HUD of Federal Regulations. Section 1282.65 81.66. Section 1282.64 is sufficiently to the Director. The final rule also relocates an existing regulatory broad to encompass any requests for corrects several typographical errors provision on data certification from 24 additional data or reports that the that were present in the proposed rule. CFR 81.102. These provisions have Director deems necessary. The final rule does not make any continued in effect pursuant to section Consistent with the proposed rule, changes to the substance of the book- 1302 of HERA. Upon the effective date § 1282.65 of the final rule simplifies the entry provisions. of the final housing goals rule, the detailed procedures laid out in the V. Paperwork Reduction Act reporting requirement and Enterprise previous data integrity provision found data integrity provisions in 24 CFR part at 24 CFR 81.102. FHFA will implement The final rule does not contain any 81 will no longer be in effect. the data integrity process pursuant to its information collection requirement that The proposed rule included various general regulatory authority over the requires the approval of the Office of conforming changes throughout subpart Enterprises. FHFA expects that the Management and Budget under the D. Proposed § 1282.62(b) would have Enterprises will continue to work Paperwork Reduction Act (44 U.S.C. included a requirement for the cooperatively with FHFA to identify 3501 et seq.). Enterprises to submit loan-level and resolve any discrepancies or errors VI. Regulatory Flexibility Act mortgage data on a quarterly basis. in the housing goals data reported to Previously, such submissions were FHFA. Section 1282.65 maintains the The Regulatory Flexibility Act (5 required only semi-annually. Proposed most important aspects of the data U.S.C. 601 et seq.) requires that a § 1282.62(c) would have revised the due integrity process in the regulation, regulation that has a significant date for submission to FHFA of the including the requirement that the economic impact on a substantial required quarterly Mortgage Reports Enterprises certify the accuracy of their number of small entities, small from 60 days after the end of the quarter submissions. businesses, or small organizations must to 45 days. Proposed § 1282.63 would One trade association requested that include an initial regulatory flexibility have revised the due date for fourth FHFA consider clarifying the analysis describing the regulation’s quarter Annual Mortgage Report and the procedures for certification of impact on small entities. Such an Annual Housing Activities Reports submissions, and recommended that analysis need not be undertaken if the (AHARs) from 75 days after the end of measures should be established to agency has certified that the regulation the calendar year to 60 days. ensure the Enterprises submit accurate, will not have a significant economic In its comment letter, Fannie Mae truthful and complete information. impact on a substantial number of small requested that the due dates for the FHFA currently requires data submitted entities. 5 U.S.C. 605(b). FHFA has quarterly and Annual Mortgage Reports for the calendar year housing goals to be considered the impact of the final rule and loan-level data submissions remain certified as true, correct and complete under the Regulatory Flexibility Act. unchanged. Fannie Mae stated that by a corporate officer with the authority The General Counsel of FHFA certifies shortening the time period would to sign for the Enterprise. This that the final rule is not likely to have adversely impact its quarterly data certification was required beginning a significant economic impact on a quality reviews and prevent with the submission of 2005 mortgage substantial number of small entities reconciliation with its annual Form 10– data to align with the customary because the regulation is applicable K, which is due within 60 days of the practice of regulators of financial only to the Enterprises, which are not end of the calendar year. institutions, which require certification small entities for purposes of the FHFA acknowledges Fannie Mae’s as a means of ensuring corporate Regulatory Flexibility Act. concerns and, accordingly, the final rule accuracy in, and accountability for, the List of Subjects retains the current due dates for the financial information provided by a quarterly and Annual Mortgage Reports corporation to its regulators. 12 CFR Part 1249 and AHARs. Consistent with the Federal Reserve System, Securities. proposed rule, the final rule requires N. Book-Entry Procedures—Part 1249 12 CFR Part 1282 that the loan-level data be submitted on As in the proposed rule, part 1249 of a quarterly basis. the final rule relocates existing Mortgages, Reporting and As in the proposed rule, § 1282.63 of regulatory provisions on book-entry recordkeeping requirements. the final rule requires that the procedures from part 81, subpart H of ■ Accordingly, for the reasons stated in Enterprises make their AHARs available title 24 of the Code of Federal the preamble, under the authority of 12 to the public online. FHFA does not Regulations. These provisions have U.S.C. 4511, 4513, 4526, FHFA amends expect that the requirement to make continued in effect pursuant to section chapter XII of title 12 of the Code of available online information that is 1302 of HERA. Upon the effective date Federal Regulations as follows:

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■ 1. Part 1249 is added to subchapter C Eligible Book-entry Enterprise Enterprise Security. A Book-entry to read as follows: Security means a Book-entry Enterprise Enterprise Security shall be maintained CHAPTER XII—FEDERAL HOUSING Security issued or maintained in the in the Book-entry System. FINANCE AGENCY Book-entry System which by the terms of its Securities Documentation is § 1249.12 Law governing rights and SUBCHAPTER C—ENTERPRISES obligations of United States, Federal eligible to be converted from book-entry Reserve Banks, and Enterprises; rights of form into definitive form. PART 1249—BOOK–ENTRY any person against United States, Federal Enterprise Security means any PROCEDURES Reserve Banks, and Enterprises; law security or obligation of Fannie Mae or governing other interests. Sec. Freddie Mac issued under its respective (a) Except as provided in paragraph 1249.10 Definitions. Charter Act in the form of a Definitive (b) of this section, the following rights 1249.11 Maintenance of Enterprise Enterprise Security or a Book-entry and obligations are governed solely by Securities. Enterprise Security. the book-entry regulations contained in 1249.12 Law governing rights and Entitlement Holder means a Person or obligations of United States, Federal this part, the Securities Documentation, an Enterprise to whose account an and Federal Reserve Bank Operating Reserve Banks, and Enterprises; rights of interest in a Book-entry Enterprise any person against United States, Federal Circulars (but not including any choice Reserve Banks, and Enterprises; law Security is credited on the records of a of law provisions in the Securities governing other interests. Securities Intermediary. Documentation to the extent such 1249.13 Creation of Participant’s Security Federal Reserve Bank Operating provisions conflict with the Book-entry Entitlement; security interests. Circular means the publication issued regulations contained in this part): 1249.14 Obligations of Enterprises; no by each Federal Reserve Bank that sets (1) The rights and obligations of an adverse claims. forth the terms and conditions under 1249.15 Authority of Federal Reserve Enterprise and the Federal Reserve which the Reserve Bank maintains Banks with respect to: Banks. Book-entry Securities accounts 1249.16 Withdrawal of Eligible Book-entry (i) A Book-entry Enterprise Security (including Book-entry Enterprise or Security Entitlement; and Enterprise Securities for conversion to Securities) and transfers Book-entry definitive form. (ii) The operation of the Book-entry 1249.17 Waiver of regulations. Securities (including Book-entry System as it applies to Enterprise 1249.18 Liability of Enterprises and Federal Enterprise Securities). Securities; and Participant means a Person or Reserve Banks. (2) The rights of any Person, including Enterprise that maintains a Participant’s 1249.19 Additional provisions. a Participant, against an Enterprise and Securities Account with a Federal Authority: 12 U.S.C. 4501, 4502, 4511, the Federal Reserve Banks with respect Reserve Bank. 4513, 4526. to: Person, as used in this part, means (i) A Book-entry Enterprise Security § 1249.10 Definitions. and includes an individual, corporation, or Security Entitlement; and company, governmental entity, (a) General. Unless the context (ii) The operation of the Book-entry association, firm, partnership, trust, requires otherwise, terms used in this System as it applies to Enterprise estate, representative, and any other part that are not defined in this part, Securities; similar organization, but does not mean have the meanings as set forth in 31 CFR (b) A security interest in a Security or include the United States, an 357.2 and in 12 CFR 1282.1. Definitions Entitlement that is in favor of a Federal Enterprise, or a Federal Reserve Bank. and terms used in 31 CFR part 357 Reserve Bank from a Participant and Revised Article 8 has the same should read as though modified to that is not recorded on the books of a meaning as in 31 CFR 357.2. effectuate their application to the Federal Reserve Bank pursuant to Enterprises. Securities Documentation means the applicable statement of terms, trust § 1249.13(c)(1), is governed by the law (b) Other terms. As used in this part, (not including the conflict-of-law rules) the term: indenture, securities agreement or other documents establishing the terms of a of the jurisdiction where the head office Book-entry Enterprise Security means of the Federal Reserve Bank maintaining an Enterprise Security issued or Book-entry Enterprise Security. Security means any mortgage the Participant’s Securities Account is maintained in the Book-entry System. participation certificate, note, bond, located. A security interest in a Security Book-entry Enterprise Security also debenture, evidence of indebtedness, Entitlement that is in favor of a Federal means the separate interest and collateral-trust certificate, transferable Reserve Bank from a Person that is not principal components of a Book-entry share, certificate of deposit for a a Participant, and that is not recorded Enterprise Security if such security has security, or, in general, any interest or on the books of a Federal Reserve Bank been designated by the Enterprise as instrument commonly known as a pursuant to § 1249.13(c)(1), is governed eligible for division into such ‘‘security’’. by the law determined in the manner components and the components are Transfer message means an specified in paragraph (d) of this maintained separately on the books of instruction of a Participant to a Federal section. one or more Federal Reserve Banks. Reserve Bank to effect a transfer of a (c) If the jurisdiction specified in the Book-entry System means the Book-entry Security (including a Book- first sentence of paragraph (b) of this automated book-entry system operated entry Enterprise Security) maintained in section is a State that has not adopted by the Federal Reserve Banks acting as the Book-entry System, as set forth in Revised Article 8, then the law specified the fiscal agent for the Enterprises, on Federal Reserve Bank Operating in paragraph (b) of this section shall be which Book-entry Enterprise Securities Circulars. the law of that State as though Revised are issued, recorded, transferred and Article 8 had been adopted by that maintained in book-entry form. § 1249.11 Maintenance of Enterprise State. Definitive Enterprise Security means Securities. (d) To the extent not otherwise an Enterprise Security in engraved or An Enterprise Security may be inconsistent with this part, and printed form, or that is otherwise maintained in the form of a Definitive notwithstanding any provision in the represented by a certificate. Enterprise Security or a Book-entry Securities Documentation setting forth a

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choice of law, the provisions set forth in Reserve Bank shall have priority over terms by a Federal Reserve Bank 31 CFR 357.11 regarding law governing any other interest in the securities. withdrawing the securities from the other interests apply and shall be read (2) In addition to the method Participant’s Securities Account in as though modified to effectuate the provided in paragraph (c)(1) of this which they are maintained and by either application of 31 CFR 357.11 to the section, a security interest, including a crediting the amount of the redemption Enterprises. security interest in favor of a Federal proceeds, including both redemption Reserve Bank, may be perfected by any proceeds, where applicable, to a Funds § 1249.13 Creation of Participant’s method by which a security interest Account at such Federal Reserve Bank Security Entitlement; security interests. may be perfected under applicable law or otherwise paying such redemption (a) A Participant’s Security as described in § 1249.12(b) or (d). The proceeds as directed by the Participant. Entitlement is created when a Federal perfection, effect of perfection or non- No action by the Participant ordinarily Reserve Bank indicates by book-entry perfection and priority of a security is required in connection with the that a Book-entry Enterprise Security interest are governed by such applicable redemption of a Book-entry Enterprise has been credited to a Participant’s law. A security interest in favor of a Security. Securities Account. Federal Reserve Bank shall be treated as a security interest in favor of a clearing § 1249.15 Authority of Federal Reserve (b) A security interest in a Security Banks. Entitlement of a Participant in favor of corporation in all respects under such the United States to secure deposits of law, including with respect to the effect (a) Each Federal Reserve Bank is public money, including without of perfection and priority of such hereby authorized as fiscal agent of the limitation deposits to the Treasury tax security interest. A Federal Reserve Enterprises to perform the following and loan accounts, or other security Bank Operating Circular shall be treated functions with respect to the issuance of interest in favor of the United States that as a rule adopted by a clearing Book-entry Enterprise Securities offered is required by Federal statute, corporation for such purposes. and sold by an Enterprise to which this part applies, in accordance with the regulation, or agreement, and that is § 1249.14 Obligations of Enterprises; no marked on the books of a Federal Securities Documentation, Federal adverse claims. Reserve Bank Operating Circulars, this Reserve Bank is thereby effected and (a) Except in the case of a security perfected, and has priority over any part, and any procedures established by interest in favor of the United States or the Director consistent with these other interest in the securities. Where a a Federal Reserve Bank or otherwise as security interest in favor of the United authorities: provided in § 1249.13(c)(1), for the (1) To service and maintain Book- States in a Security Entitlement of a purposes of this part, each Enterprise Participant is marked on the books of a entry Enterprise Securities in accounts and the Federal Reserve Banks shall established for such purposes; Federal Reserve Bank, such Federal treat the Participant to whose Securities Reserve Bank may rely, and is protected (2) To make payments with respect to Account an interest in a Book-entry such securities, as directed by the in relying, exclusively on the order of an Enterprise Security has been credited as authorized representative of the United Enterprise; the person exclusively entitled to issue (3) To effect transfer of Book-entry States directing the transfer of the a Transfer Message, to receive interest security. For purposes of this paragraph, Enterprise Securities between and other payments with respect thereof Participants’ Securities Accounts as an ‘‘authorized representative of the and otherwise to exercise all the rights United States’’ is the official designated directed by the Participants; and powers with respect to such (4) To effect conversions between in the applicable regulations or Security, notwithstanding any agreement to which a Federal Reserve Book-entry Enterprise Securities and information or notice to the contrary. Definitive Enterprise Securities with Bank is a party, governing the security Neither the Federal Reserve Banks nor interest. respect to those securities as to which an Enterprise shall be liable to a Person conversion rights are available pursuant (c)(1) An Enterprise and the Federal asserting or having an adverse claim to to the applicable Securities Reserve Banks have no obligation to a Security Entitlement or to a Book- Documentation; and agree to act on behalf of any Person or entry Enterprise Security in a (5) To perform such other duties as to recognize the interest of any Participant’s Securities Account, fiscal agent as may be requested by the transferee of a security interest or other including any such claim arising as a Enterprise. limited interest in favor of any Person result of the transfer or disposition of a (b) Each Federal Reserve Bank may except to the extent of any specific Book-entry Enterprise Security by a issue Federal Reserve Bank Operating requirement of Federal law or regulation Federal Reserve Bank pursuant to a Circulars not inconsistent with this part, or to the extent set forth in any specific Transfer Message that the Federal governing the details of its handling of agreement with the Federal Reserve Reserve Bank reasonably believes to be Book-entry Enterprise Securities, Bank on whose books the interest of the genuine. Security Entitlements, and the operation Participant is recorded. To the extent (b) The obligation of the Enterprise to of the Book-entry System under this required by such law or regulation or set make payments (including payments of part. forth in an agreement with a Federal interest and principal) with respect to Reserve Bank, or the Federal Reserve Book-entry Enterprise Securities is § 1249.16 Withdrawal of Eligible Book- Bank Operating Circular, a security discharged at the time payment in the entry Enterprise Securities for conversion interest in a Security Entitlement that is appropriate amount is made as follows: to definitive form. in favor of a Federal Reserve Bank, an (1) Interest or other payments on (a) Eligible Book-entry Enterprise Enterprise, or a Person may be created Book-entry Enterprise Securities is Securities may be withdrawn from the and perfected by a Federal Reserve Bank either credited by a Federal Reserve Book-entry System by requesting marking its books to record the security Bank to a Funds Account maintained at delivery of like Definitive Enterprise interest. Except as provided in such Federal Reserve Bank or otherwise Securities. paragraph (b) of this section, a security paid as directed by the Participant. (b) A Federal Reserve Bank shall, interest in a Security Entitlement (2) Book-entry Enterprise Securities upon receipt of appropriate instructions marked on the books of a Federal are redeemed in accordance with their to withdraw Eligible Book-entry

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Enterprise Securities from book-entry in notice of attachment in any particular than the periodic payments. The the Book-entry System, convert such case or class of cases. periodic payments may cover some or securities into Definitive Enterprise ■ 2. Part 1282 is revised to read as all of the periodic principal or interest. Securities and deliver them in follows: Typically, the periodic payments are accordance with such instructions. No level monthly payments that would SUBCHAPTER E—HOUSING GOALS AND fully amortize the mortgage over a stated such conversion shall affect existing MISSION interests in such Enterprise Securities. term and the balloon payment is a single (c) All requests for withdrawal of PART 1282—ENTERPRISE HOUSING payment due after a specified period Eligible Book-entry Enterprise Securities GOALS AND MISSION (but before the mortgage would fully must be made prior to the maturity or amortize) and pays off or satisfies the date of call of the securities. Sec. outstanding balance of the mortgage. (d) Enterprise Securities which are to Subpart A—General Borrower income means the total be delivered upon withdrawal may be gross income relied on in making the 1282.1 Definitions. issued in either registered or bearer credit decision. form, to the extent permitted by the Subpart B—Housing Goals Charter Act means the Fannie Mae applicable Securities Documentation. 1282.11 General. Charter Act, as amended, or the Freddie 1282.12 Single-family housing goals. Mac Act, as amended. § 1249.17 Waiver of regulations. 1282.13 Multifamily special affordable Contract rent means the total rent that The Director reserves the right, in the housing goal and subgoal. is, or is anticipated to be, specified in Director’s discretion, to waive any 1282.14 Discretionary adjustment of the rental contract as payable by the provision(s) of this part in any case or housing goals. tenant to the owner for rental of a class of cases for the convenience of an 1282.15 General counting requirements. dwelling unit, including fees or charges Enterprise, the United States, or in order 1282.16 Special counting requirements. for management and maintenance 1282.17 Affordability—Income level to relieve any person(s) of unnecessary services and those utility charges that definitions—family size and income are included in the rental contract. In hardship, if such action is not known (owner-occupied units, actual inconsistent with law, does not tenants, and prospective tenants). determining contract rent, rent adversely affect any substantial existing 1282.18 Affordability—Income level concessions shall not be considered, i.e., rights, and the Director is satisfied that definitions—family size not known contract rent is not decreased by any such action will not subject an (actual or prospective tenants). rent concessions. Contract rent is rent Enterprise or the United States to any 1282.19 Affordability—Rent level net of rental subsidies. Anticipated rent substantial expense or liability. definitions—tenant income is not for unoccupied units may be the market known. rent for similar units in the § 1249.18 Liability of Enterprises and 1282.20 Determination of compliance with neighborhood as determined by the Federal Reserve Banks. housing goals; notice of determination. lender or appraiser for underwriting 1282.21 Housing plans. An Enterprise and the Federal Reserve purposes. Banks may rely on the information Subpart C—[Reserved] Conventional mortgage means a provided in a Transfer Message, and are Subpart D—Reporting Requirements mortgage other than a mortgage as to not required to verify the information. which an Enterprise has the benefit of An Enterprise and the Federal Reserve 1282.61 General. any guaranty, insurance or other Banks shall not be liable for any action 1282.62 Mortgage reports. 1282.63 Annual Housing Activities Report. obligation by the United States or any of taken in accordance with the 1282.64 Periodic reports. its agencies or instrumentalities. information set out in a Transfer 1282.65 Enterprise data integrity. Day means a calendar day. Message, or evidence submitted in Designated disaster area means any support thereof. Authority: 12 U.S.C. 4501, 4502, 4511, census tract that is located in a county 4513, 4526, 4561–4566, 4603. designated by the federal government as § 1249.19 Additional provisions. Subpart A—General adversely affected by a declared major (a) Additional requirements. In any disaster administered by FEMA, where case or any class of cases arising under § 1282.1 Definitions. individual assistance payments were this part, an Enterprise may require (a) Statutory terms. All terms defined authorized by FEMA. A census tract such additional evidence and a bond of in the Safety and Soundness Act are shall be treated as a ‘‘designated disaster indemnity, with or without surety, as used in accordance with their statutory area’’ for purposes of this part beginning may in the judgment of the Enterprise meaning unless otherwise defined in on the January 1 after the FEMA be necessary for the protection of the paragraph (b) of this section. designation of the county, or such interests of the Enterprise. (b) Other terms. As used in this part, earlier date as determined by FHFA, and (b) Notice of attachment for Enterprise the term: continuing through December 31 of the Securities in Book-entry System. The AHAR means the Annual Housing third full calendar year following the interest of a debtor in a Security Activities Report that an Enterprise FEMA designation. This time period Entitlement may be reached by a submits to the Director under section may be adjusted for a particular disaster creditor only by legal process upon the 309(n) of the Fannie Mae Charter Act or area by notice from FHFA to the Securities Intermediary with whom the section 307(f) of the Freddie Mac Act. Enterprises. debtor’s securities account is AHAR information means data or Director means the Director of FHFA maintained, except where a Security information contained in the AHAR. or his or her designee. Entitlement is maintained in the name AHS means the American Housing Dwelling unit means a room or unified of a secured party, in which case the Survey published by HUD and the combination of rooms intended for use, debtor’s interest may be reached by legal Department of Commerce. in whole or in part, as a dwelling by one process upon the secured party. These Balloon mortgage means a mortgage or more persons, and includes a regulations do not purport to establish providing for payments at regular dwelling unit in a single-family whether a Federal Reserve Bank is intervals, with a final payment (‘‘balloon property, multifamily property, or other required to honor an order or other payment’’) that is at least 5 percent more residential or mixed-use property.

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Enterprise means Fannie Mae or (i) In the case of owner-occupied estate under the laws of the State in Freddie Mac (Enterprises means, units, income not in excess of 80 which the real estate is located, together collectively, Fannie Mae and Freddie percent of area median income; and with the credit instruments, if any, Mac). (ii) In the case of rental units, income secured thereby, and includes interests Extremely low-income means: not in excess of 80 percent of area in mortgages. ‘‘Mortgage’’ includes a (i) In the case of owner-occupied median income, with adjustments for mortgage, lien, including a subordinate units, income not in excess of 30 smaller and larger families in lien, or other security interest on the percent of area median income; and accordance with this part. stock or membership certificate issued (ii) In the case of rental units, income Median income means, with respect to a tenant-stockholder or resident- not in excess of 30 percent of area to an area, the unadjusted median member by a cooperative housing median income, with adjustments for family income for the area as most corporation, as defined in section 216 of smaller and larger families in recently determined by HUD. FHFA will the Internal Revenue Code of 1986, and accordance with this part. provide the Enterprises annually with on the proprietary lease, occupancy Families in low-income areas means: information specifying how the median agreement, or right of tenancy in the (i) Any family that resides in a census family income estimates for dwelling unit of the tenant-stockholder tract or block numbering area in which metropolitan areas are to be applied for or resident-member in such cooperative the median income does not exceed 80 the purposes of determining median housing corporation. percent of the area median income; family income. Mortgage data means data obtained by (ii) Any family with an income that Metropolitan area means a the Director from the Enterprises under does not exceed area median income metropolitan statistical area (MSA), or a section 309(m) of the Fannie Mae that resides in a minority census tract; portion of such an area, including Charter Act and section 307(e) of the and Metropolitan Divisions, for which Freddie Mac Act. (iii) Any family with an income that median family income estimates are Mortgage purchase means a does not exceed area median income determined by HUD. transaction in which an Enterprise that resides in a designated disaster Minority means any individual who is bought or otherwise acquired a mortgage area. included within any one or more of the or an interest in a mortgage for portfolio, Family means one or more following racial and ethnic categories: resale, or securitization. individuals who occupy the same (i) American Indian or Alaskan Mortgage revenue bond means a tax- dwelling unit. Native—a person having origins in any exempt bond or taxable bond issued by Fannie Mae means the Federal of the original peoples of North and a State or local government or agency National Mortgage Association and any South America (including Central where the proceeds from the bond issue affiliate thereof. America), and who maintains Tribal are used to finance residential housing. Fannie Mae Charter Act means the affiliation or community attachment; Mortgage with unacceptable terms or (ii) Asian—a person having origins in Federal National Mortgage Association conditions means a single-family any of the original peoples of the Far Charter Act, as amended (12 U.S.C. 1715 mortgage, including a reverse mortgage, East, Southeast Asia, or the Indian et seq.). or a group or category of such subcontinent, including, for example, FEMA means the Federal Emergency mortgages, with one or more of the Cambodia, China, India, Japan, Korea, Management Agency. following terms or conditions: Malaysia, Pakistan, the Philippine FHFA means the Federal Housing (i) Excessive fees, where the total Islands, Thailand, and Vietnam; points and fees charged to a borrower Finance Agency. (iii) Black or African American—a FOIA means the Freedom of exceed the greater of 5 percent of the person having origins in any of the loan amount or a maximum dollar Information Act, as amended (5 U.S.C. black racial groups of Africa; 552). amount of $1000, or an alternative (iv) Hispanic or Latino—a person of amount requested by an Enterprise and Freddie Mac means the Federal Home Cuban, Mexican, Puerto Rican, South or determined by the Director as Loan Mortgage Corporation and any Central American, or other Spanish appropriate for small mortgages. affiliate thereof. culture or origin, regardless of race; and (A) For purposes of this definition, Freddie Mac Act means the Federal (v) Native Hawaiian or Other Pacific points and fees include: Home Loan Mortgage Corporation Act, Islander—a person having origins in any (1) Origination fees; as amended (12 U.S.C. 1451 et seq.). of the original peoples of Hawaii, Guam, (2) Underwriting fees; Ginnie Mae means the Government Samoa, or other Pacific Islands. (3) Broker fees; National Mortgage Association. Minority census tract means a census (4) Finder’s fees; and HMDA means the Home Mortgage tract that has a minority population of (5) Charges that the lender imposes as Disclosure Act (12 U.S.C. 2801 et seq.). at least 30 percent and a median income a condition of making the loan, whether HOEPA mortgage means a mortgage of less than 100 percent of the area they are paid to the lender or a third covered by section 103(aa) of the Home median income. party; Ownership and Equity Protection Act Moderate-income means: (B) For purposes of this definition, (HOEPA) (15 U.S.C. 1602(aa)), as (i) In the case of owner-occupied points and fees do not include: implemented by the Board of Governors units, income not in excess of area (1) Bona fide discount points; of the Federal Reserve System. median income; and (2) Fees paid for actual services HUD means the United States (ii) In the case of rental units, income rendered in connection with the Department of Housing and Urban not in excess of area median income, origination of the mortgage, such as Development. with adjustments for smaller and larger attorneys’ fees, notary’s fees, and fees Lender means any entity that makes, families in accordance with this part. paid for property appraisals, credit originates, sells, or services mortgages, Mortgage means a member of such reports, surveys, title examinations and and includes the secured creditors classes of liens, including subordinate extracts, flood and tax certifications, named in the debt obligation and liens, as are commonly given or are and home inspections; document creating the mortgage. legally effective to secure advances on, (3) The cost of mortgage insurance or Low-income means: or the unpaid purchase price of, real credit-risk price adjustments;

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(4) The costs of title, hazard, and mortgagor resides, including two- to or has an interest in the balloon note at flood insurance policies; four-unit owner-occupied properties the time of the conversion. (5) State and local transfer taxes or where one or more units are used for Rent means, for a dwelling unit: fees; rental purposes. (i) When the contract rent includes all (6) Escrow deposits for the future Participation means a fractional utilities, the contract rent; or payment of taxes and insurance interest in the principal amount of a (ii) When the contract rent does not premiums; and mortgage. include all utilities, the contract rent (7) Other miscellaneous fees and Private label security means any plus: charges that, in total, do not exceed 0.25 mortgage-backed security that is neither (A) The actual cost of utilities not percent of the loan amount; issued nor guaranteed by Fannie Mae, included in the contract rent; or (ii) An annual percentage rate that Freddie Mac, Ginnie Mae, or any other (B) A utility allowance. exceeds by more than 8 percentage government agency. Rental housing means dwelling units points the yield on Treasury securities Proprietary information means all in multifamily housing and dwelling with comparable maturities as of the mortgage data and all AHAR units that are not owner-occupied in fifteenth day of the month immediately information that the Enterprises submit single-family housing. preceding the month in which the to the Director in the AHARs that Rental unit means a dwelling unit that application for the extension of credit contain trade secrets or privileged or is not owner-occupied and is rented or was received; confidential, commercial, or financial available to rent. (iii) Prepayment penalties, except information that, if released, would be Residence means a property where where: likely to cause substantial competitive one or more families reside. (A) The mortgage provides some harm. Residential mortgage means a benefit to the borrower (e.g., a rate or fee Public data means all mortgage data mortgage on single-family or reduction for accepting the prepayment and all AHAR information that the multifamily housing. premium); Enterprises submit to the Director in the Safety and Soundness Act means the (B) The borrower is offered the choice AHARs that the Director determines are Federal Housing Enterprises Financial of another mortgage that does not not proprietary and may appropriately Safety and Soundness Act of 1992, as contain payment of such a premium; be disclosed consistent with other amended (12 U.S.C. 4501 et seq.). (C) The terms of the mortgage applicable laws and regulations. Seasoned mortgage means a mortgage provision containing the prepayment Purchase money mortgage means a on which the date of the mortgage note penalty are adequately disclosed to the mortgage given to secure a loan used for is more than 1 year before the Enterprise borrower; and the purchase of a single-family purchased the mortgage. (D) The prepayment penalty is not residential property. Second mortgage means any mortgage charged when the mortgage debt is Refinancing mortgage means a that has a lien position subordinate only accelerated as the result of the mortgage undertaken by a borrower that to the lien of the first mortgage. borrower’s default in making his or her satisfies or replaces an existing mortgage Secondary residence means a mortgage payments; of such borrower. The term does not dwelling where the mortgagor maintains (iv) The sale or financing of prepaid include: (or will maintain) a part-time place of single-premium credit life insurance (i) A renewal of a single payment abode and typically spends (or will products in connection with the obligation with no change in the spend) less than the majority of the origination of the mortgage; original terms; calendar year. A person may have more (v) Underwriting practices contrary to (ii) A reduction in the annual than one secondary residence at a time. the Interagency Guidance on percentage rate of the mortgage as Single-family housing means a Nontraditional Mortgage Product Risks computed under the Truth in Lending residence consisting of one to four (71 FR 58609) (Oct. 4, 2006), the Act (15 U.S.C. 1601 et seq.), with a dwelling units. Single-family housing Interagency Statement on Subprime corresponding change in the payment includes condominium dwelling units Mortgage Lending (72 FR 37569) (July schedule; and dwelling units in cooperative 10, 2007), or similar guidance (iii) An agreement involving a court housing projects. subsequently issued by Federal banking proceeding; Utilities means charges for electricity, agencies; (iv) A workout agreement, in which a piped or bottled gas, water, sewage (vi) Failure to comply with fair change in the payment schedule or disposal, fuel (oil, coal, kerosene, wood, lending requirements; or collateral requirements is agreed to as a solar energy, or other), and garbage and (vii) Other terms or conditions that result of the mortgagor’s default or trash collection. Utilities do not include are determined by the Director to be an delinquency, unless the rate is increased charges for cable or telephone service. unacceptable term or condition of a or the new amount financed exceeds the Utility allowance means either: mortgage. unpaid balance plus earned finance (i) The amount to be added to contract Multifamily housing means a charges and premiums for the rent when utilities are not included in residence consisting of more than four continuation of insurance; contract rent (also referred to as the dwelling units. The term includes (v) The renewal of optional insurance ‘‘AHS-derived utility allowance’’), as cooperative buildings and purchased by the mortgagor and added issued periodically by FHFA; or condominium projects. to an existing mortgage; (ii) The utility allowance established Non-metropolitan area means a (vi) A renegotiated balloon mortgage under the HUD Section 8 Program (42 county, or a portion of a county, on a multifamily property where the U.S.C. 1437f) for the area where the including those counties that comprise balloon payment was due within 1 year property is located. Micropolitan Statistical Areas, located after the date of the closing of the Very low-income means: outside any metropolitan area for which renegotiated mortgage; and (i) In the case of owner-occupied median family income estimates are (vii) A conversion of a balloon units, income not in excess of 50 published annually by HUD. mortgage note on a single-family percent of area median income; and Owner-occupied housing means property to a fully amortizing mortgage (ii) In the case of rental units, income single-family housing in which a note where the Enterprise already owns not in excess of 50 percent of area

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median income, with adjustments for (6) All mortgages that are missing (2) The benchmark level, which for smaller and larger families in information necessary to determine 2010 and 2011 shall be 13 percent of the accordance with this part. appropriate counting under the housing total number of purchase money Working day means a day when FHFA goals shall be excluded. mortgages purchased by that Enterprise is officially open for business. (c) Low-income families housing goal. in each year that finance owner- The percentage share of each occupied single-family properties. Subpart B—Housing Goals Enterprise’s total purchases of purchase (g) Refinancing housing goal. The § 1282.11 General. money mortgages on owner-occupied percentage share of each Enterprise’s total purchases of refinancing mortgages (a) General. Pursuant to the single-family housing that consists of on owner-occupied single-family requirements of the Safety and mortgages for low-income families shall housing that consists of refinancing Soundness Act (12 U.S.C. 4561–4564, meet or exceed either: mortgages for low-income families shall 4566), this subpart establishes: (1) The share of such mortgages in the (1) Three single-family owner- market as defined in paragraph (b) of meet or exceed either: occupied purchase money mortgage this section in each year; or (1) The share of such mortgages in the housing goals, a single-family owner- (2) The benchmark level, which for market as defined in paragraph (b) of occupied purchase money mortgage 2010 and 2011 shall be 27 percent of the this section in each year; or (2) The benchmark level, which for housing subgoal, a single-family total number of purchase money 2010 and 2011 shall be 21 percent of the refinancing mortgage housing goal, a mortgages purchased by that Enterprise total number of refinancing mortgages multifamily special affordable housing in each year that finance owner- purchased by that Enterprise in each goal and a multifamily special occupied single-family properties. year that finance owner-occupied affordable housing subgoal; (d) Very low-income families housing (2) Requirements for measuring goal. The percentage share of each single-family properties. performance under the goals; and Enterprise’s total purchases of purchase § 1282.13 Multifamily special affordable (3) Procedures for monitoring and money mortgages on owner-occupied housing goal and subgoal. single-family housing that consists of enforcing the goals. (a) Multifamily housing goal and (b) Annual goals. Each housing goal mortgages for very low-income families subgoal. An Enterprise shall be in shall be established by regulation no shall meet or exceed either: compliance with a multifamily housing later than December 1 of the preceding (1) The share of such mortgages in the goal or subgoal if its performance under year, except that any housing goal may market as defined in paragraph (b) of the housing goal or subgoal meets or be adjusted by regulation to reflect this section in each year; or exceeds the benchmark level for the subsequent available data and market (2) The benchmark level, which for goal. developments. 2010 and 2011 shall be 8 percent of the (b) Multifamily low-income housing total number of purchase money goal. For the years 2010 and 2011, the § 1282.12 Single-family housing goals. mortgages purchased by that Enterprise goal for each Enterprise’s purchases of (a) Single-family housing goals. An in each year that finance owner- mortgages on multifamily residential Enterprise shall be in compliance with occupied single-family properties. housing affordable to low-income a single-family housing goal if its (e) Low-income areas housing goal. performance under the housing goal families shall be, for Fannie Mae, at The percentage share of each least 177,750 dwelling units affordable meets or exceeds either: Enterprise’s total purchases of purchase (1) The share of the market that to low-income families in multifamily money mortgages on owner-occupied residential housing financed by qualifies for the goal; or single-family housing that consists of (2) The benchmark level for the goal. mortgages purchased by that Enterprise mortgages for families in low-income (b) Size of market. The size of the in each year, and for Freddie Mac, at areas shall meet or exceed either: market for each goal shall be established least 161,250 such dwelling units in annually by FHFA based on data (1) The share of such mortgages in the each year. reported pursuant to the Home Mortgage market as defined in paragraph (b) of (c) Multifamily very low-income Disclosure Act for a given year. Unless this section in each year; or housing subgoal. For the years 2010 and otherwise adjusted by FHFA, the size of (2) A benchmark level which shall be 2011, the subgoal for each Enterprise’s the market shall be determined based on set annually by FHFA notice based on purchases of mortgages on multifamily the following criteria: the benchmark level for the low-income residential housing affordable to very (1) Only owner-occupied, areas housing subgoal, plus an low-income families shall be, for Fannie conventional loans shall be considered; adjustment factor reflecting the Mae, at least 42,750 dwelling units (2) Purchase money mortgages and additional incremental share of affordable to very low-income families refinancing mortgages shall only be mortgages for moderate-income families in multifamily residential housing counted for the applicable goal or goals; in designated disaster areas in the most financed by mortgages purchased by (3) All mortgages flagged as HOEPA recent year for which such data is that Enterprise in each year, and for loans or subordinate lien loans shall be available. Freddie Mac, at least 21,000 such excluded; (f) Low-income areas housing subgoal. dwelling units in each year. (4) All mortgages with original The percentage share of each principal balances above the conforming Enterprise’s total purchases of purchase § 1282.14 Discretionary adjustment of loan limits for single unit properties for money mortgages on owner-occupied housing goals. the year being evaluated (rounded to the single-family housing that consists of (a) An Enterprise may petition the nearest $1,000) shall be excluded; mortgages for families in low-income Director in writing during any year to (5) All mortgages with rate spreads of census tracts or for moderate-income reduce any goal or subgoal for that year. 150 basis points or more above the families in minority census tracts shall (b) The Director shall seek public applicable average prime offer rate as meet or exceed either: comment on any such petition for a reported in the Home Mortgage (1) The share of such mortgages in the period of 30 days. Disclosure Act data shall be excluded; market as defined in paragraph (b) of (c) The Director shall make a and this section in each year; or determination regarding the petition

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within 30 days after the end of the originated. To determine whether Enterprise in a particular year. Only public comment period. If the Director mortgages may be counted under a dwelling units that are financed by requests additional information from the particular family income level, i.e., low- mortgage purchases, as defined by Enterprise after the end of the public or very low-income, the income of the FHFA, and that are not specifically comment period, the Director may mortgagors is compared to the median excluded as ineligible under extend the period for a final income for the area at the time of the § 1282.16(b), may be counted for determination for a single additional 15- mortgage application, using the purposes of the multifamily housing day period. appropriate percentage factor provided goal and subgoal. (d) The Director may reduce a goal or under § 1282.17. (d) Counting rental units. For subgoal pursuant to a petition for (2) When the income of the purposes of counting rental units reduction only if: mortgagor(s) is not available to toward achievement of the multifamily (1) Market and economic conditions determine whether a mortgage purchase housing goal and subgoal, mortgage or the financial condition of the counts toward achievement of a purchases financing such units shall be Enterprise require such a reduction; or particular single-family housing goal, an evaluated based on the income of actual (2) Efforts to meet the goal or subgoal Enterprise’s performance with respect to or prospective tenants where such data would result in the constraint of such mortgage purchase may be is available, i.e., known to a lender, and liquidity, over-investment in certain evaluated using estimated affordability the area median income at the time the market segments, or other consequences information by multiplying the number mortgage was acquired. contrary to the intent of the Safety and of mortgage purchases with missing (1) Use of income. Each Enterprise Soundness Act or the purposes of the borrower income information in each shall require lenders to provide to the Charter Acts (12 U.S.C. 1716; 12 U.S.C. census tract by the percentage of all Enterprise tenant income information, 1451 note). single-family owner-occupied mortgage but only when such information is originations in the respective tracts that known to the lender. When the income § 1282.15 General counting requirements. would count toward achievement of of actual tenants is available, the income (a) Calculating the numerator and each goal, as determined by FHFA based of the tenant shall be compared to the denominator for single-family housing on the most recent Home Mortgage median income for the area, adjusted for goals. Performance under each of the Disclosure Act data available. family size as provided in § 1282.17, or single-family housing goals shall be (3) The estimation methodology in as provided in § 1282.18 if family size measured using a fraction that is paragraph (b)(2) of this section may be is not known. converted into a percentage. Neither the used up to a nationwide maximum that (i) When such tenant income numerator nor the denominator shall shall be calculated by multiplying, for information is available for all occupied include Enterprise transactions or each census tract, the percentage of all units, the Enterprise’s performance shall activities that are not mortgage single-family owner-occupied mortgage be based on the income of the tenants purchases as defined by FHFA or that originations with missing borrower in the occupied units. For unoccupied are specifically excluded as ineligible incomes (as determined by FHFA based units that are vacant and available for under § 1282.16(b). on the most recent Home Mortgage rent and for unoccupied units that are (1) The numerator. The numerator of Disclosure Act data available for home under repair or renovation and not each fraction is the number of mortgage purchase and refinance mortgages, available for rent, the Enterprise shall purchases of an Enterprise in a respectively) by the number of use rent levels for comparable units in particular year that finance owner- Enterprise mortgage purchases secured the property to determine affordability, occupied single-family properties that by single-family owner-occupied except as provided in paragraph count toward achievement of a properties for each census tract, (d)(1)(ii) of this section. particular single-family housing goal. summed up over all census tracts. (ii) When income for tenants is (2) The denominator. The Separate nationwide maximums shall be available to a lender because a project denominator of each fraction is the total calculated for purchase money is subject to a Federal housing program number of mortgage purchases of an mortgages and for refinancing that establishes the maximum income Enterprise in a particular year that mortgages. If the nationwide maximum for a tenant or a prospective tenant in finance owner-occupied single-family is exceeded, then the estimated number rental units, the income of prospective properties. A separate denominator of goal-qualifying mortgages will be tenants may be counted at the maximum shall be calculated for purchase money adjusted by the ratio of the applicable income level established under such mortgages and for refinancing nationwide maximum to the total housing program for that unit. In mortgages. number of mortgage purchases secured determining the income of prospective (b) Missing data or information for by single-family owner-occupied tenants, the income shall be projected single-family housing goals. When an properties for the Enterprise in that based on the types of units and market Enterprise lacks sufficient data or year. Mortgage purchases in excess of area involved. Where the income of information to determine whether the the nationwide maximum, and any prospective tenants is projected, each purchase of a mortgage originated after units for which estimation information Enterprise must determine that the 1992 counts toward achievement of a is not available, shall remain in the income figures are reasonable particular single-family housing goal, denominator of the respective goal considering the rents (if any) on the that mortgage purchase shall be calculation. same units in the past and considering included in the denominator for that (c) Counting dwelling units for current rents on comparable units in the housing goal, except under the multifamily housing goal and subgoal. same market area. circumstances described in this Performance under the multifamily (2) Use of rent. When the income of paragraph (b). housing goal and subgoal shall be the prospective or actual tenants of a (1) Mortgage purchases financing measured by counting the number of dwelling unit is not available, owner-occupied single-family properties dwelling units that count toward performance under the multifamily shall be evaluated based on the income achievement of a particular housing goal housing goal and subgoal will be of the mortgagors and the area median or subgoal in all multifamily properties evaluated based on rent and whether the income at the time the mortgage was financed by mortgages purchased by an rent is affordable to the income group

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targeted by the housing goal and through 1282.19 and the definitions in calculating either Enterprise’s subgoal. A rent is affordable if the rent § 1282.1, the area is: performance under the housing goals, does not exceed the maximum income (i) The metropolitan area, if the even if the transaction or activity would levels as provided in § 1282.19. In property which is the subject of the otherwise be counted pursuant to determining contract rent for a dwelling mortgage is in a metropolitan area; and paragraph (c) of this section: unit, the actual rent or average rent by (ii) In all other areas, the county in (1) Equity investments in low-income unit type shall be used. which the property is located, except housing tax credits; (3) Model units and rental offices. A that where the State non-metropolitan (2) Purchases of State and local model unit or rental office in a median income is higher than the government housing bonds except as multifamily property may be counted county’s median income, the area is the provided in paragraph (c)(8) of this for purposes of the multifamily housing State non-metropolitan area. section; goal and subgoal only if an Enterprise (2) When an Enterprise cannot (3) Purchases of single-family non- determines that the number of such precisely determine whether a mortgage conventional mortgages and multifamily units is reasonable and minimal is on dwelling unit(s) located in one non-conventional mortgages, except: considering the size of the multifamily area, the Enterprise shall determine the (i) Multifamily mortgages acquired property. median income for the split area in the under a risk-sharing arrangement with a (4) Timeliness of information. In manner prescribed by the Federal Federal agency; evaluating affordability under the Financial Institutions Examination (ii) Multifamily mortgages under other multifamily housing goal and subgoal, Council for reporting under the Home multifamily mortgage programs each Enterprise shall use tenant and Mortgage Disclosure Act, if the involving Federal guarantees, insurance rental information as of the time of Enterprise can determine that the or other Federal obligation where FHFA mortgage acquisition. mortgage is on dwelling unit(s) located determines in writing that the financing (e) Missing data or information for in: needs addressed by the particular multifamily housing goal and subgoal.— (i) A census tract; mortgage program are not well served (1) When an Enterprise lacks sufficient (ii) A census place code; and that the mortgage purchases under information to determine whether a (iii) A block-group enumeration such program should count under the rental unit in a property securing a district; housing goals; (iv) A nine-digit zip code; or multifamily mortgage purchased by an (4) Commitments to buy mortgages at (v) Another appropriate geographic Enterprise counts toward achievement a later date or time; segment that is partially located in more (5) Options to acquire mortgages; of the multifamily housing goal or than one area (‘‘split area’’). (6) Rights of first refusal to acquire subgoal because neither the income of (h) Sampling not permitted. mortgages; prospective or actual tenants, nor the Performance under the housing goals for (7) Any interests in mortgages that the actual or average rental data, are each year shall be based on a complete Director determines, in writing, shall available, an Enterprise’s performance tabulation of mortgage purchases (or not be treated as interests in mortgages; with respect to such unit may be dwelling units) for that year; a sampling (8) Mortgage purchases to the extent evaluated using estimated affordability of such purchases (or dwelling units) is they finance any dwelling units that are information by multiplying the number not acceptable. secondary residences; of rental units with missing affordability (i) Newly available data. When an (9) Single-family refinancing information in properties securing Enterprise uses data to determine mortgages that result from conversion of multifamily mortgages purchased by the whether a mortgage purchase (or balloon notes to fully amortizing notes, Enterprise in each census tract by the dwelling unit) counts toward if the Enterprise already owns or has an percentage of all rental dwelling units in achievement of any goal and new data interest in the balloon note at the time the respective tracts that would count is released after the start of a calendar conversion occurs; toward achievement of each goal and quarter, the Enterprise need not use the (10) Purchases of subordinate lien subgoal, as determined by FHFA based new data until the start of the following mortgages (second mortgages); on the most recent decennial census. quarter. (11) Purchases of mortgages or (2) The estimation methodology in interests in mortgages that were paragraph (e)(1) of this section may be § 1282.16 Special counting requirements. previously counted by the Enterprise used up to a nationwide maximum of (a) General. FHFA shall determine under any current or previous housing ten percent of the total number of rental whether an Enterprise shall receive full, goal within the five years immediately units in properties securing multifamily partial, or no credit toward achievement preceding the current performance year; mortgages purchased by the Enterprise of any of the housing goals for a (12) Purchases of mortgages where the in the current year. Multifamily rental transaction that otherwise qualifies property, or any units within the units in excess of this maximum, and under this part. In this determination, property, have not been approved for any units for which estimation FHFA will consider whether a occupancy; information is not available, shall not be transaction or activity of the Enterprise (13) Purchases of private label counted for purposes of the multifamily is substantially equivalent to a mortgage securities; housing goal and subgoal. purchase and either creates a new (14) Enterprise contributions to the (f) Credit toward multiple goals. A market or adds liquidity to an existing Housing Trust Fund (12 U.S.C. 4568) or mortgage purchase (or dwelling unit market, provided however that such the Capital Magnet Fund (12 U.S.C. financed by such purchase) by an mortgage purchase actually fulfills the 4569), and mortgage purchases funded Enterprise in a particular year shall Enterprise’s purposes and is in with such grant amounts; and count toward the achievement of each accordance with its Charter Act. (15) Any combination of factors in housing goal for which such purchase (b) Not counted. The following paragraphs (b)(1) through (b)(14) of this (or dwelling unit) qualifies in that year. transactions or activities shall not be section. (g) Application of median income.— counted for purposes of the housing (c) Other special rules. Subject to (1) For purposes of determining an goals and shall not be included in the FHFA’s determination of whether an area’s median income under §§ 1282.17 numerator or the denominator in Enterprise shall receive full, partial, or

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no credit for a transaction toward counted in the same manner as a the same manner as a purchase of a achievement of any of the housing goals mortgage purchase of single-family refinancing mortgage. as provided in paragraph (a) of this owner-occupied units. (11) [Reserved.] section, the transactions and activities (ii) The purchase of a mortgage on a (12) [Reserved.] identified in this paragraph (c) shall be cooperative building (‘‘a blanket loan’’) (13) [Reserved.] treated as mortgage purchases as or a mortgage on a condominium project (14) Seller dissolution option.—(i) described. A transaction or activity that shall be treated as a mortgage purchase Mortgages acquired through transactions is covered by more than one paragraph for purposes of the housing goals. The involving seller dissolution options below must satisfy the requirements of purchase of a blanket loan or a shall be treated as mortgage purchases each such paragraph. The mortgages (or condominium project mortgage shall be for purposes of the housing goals, only dwelling units, for the multifamily counted in the same manner as a when: housing goals) from each such mortgage purchase of a multifamily (A) The terms of the transaction transaction or activity shall be included rental property. provide for a lockout period that in the denominator in calculating the (iii) Where an Enterprise purchases prohibits the exercise of the dissolution Enterprise’s performance under the both a blanket loan on a cooperative option for at least one year from the date housing goals, and shall be included in building and share loans for units in the on which the transaction was entered the numerator, as appropriate. same building, both the blanket loan into by the Enterprise and the seller of (1) Credit enhancements.—(i) and the share loan(s) shall be treated as the mortgages; and Mortgages (or dwelling units) financed mortgage purchases for purposes of the (B) The transaction is not dissolved under a credit enhancement entered housing goals. Where an Enterprise during the one-year minimum lockout into by an Enterprise shall be treated as purchases both a condominium project period. mortgage purchases for purposes of the mortgage and mortgages on (ii) The Director may grant an housing goals only when: condominium dwelling units in the exception to the one-year minimum (A) The Enterprise provides a specific same project, both the condominium lockout period described in paragraphs contractual obligation to ensure timely project mortgages and the mortgages on (c)(14)(i)(A) and (B) of this section, in payment of amounts due under a condominium dwelling units shall be response to a written request from an mortgage or mortgages financed by the treated as mortgage purchases for Enterprise, if the Director determines issuance of housing bonds (such bonds purposes of the housing goals. that the transaction furthers the may be issued by any entity, including (6) Seasoned mortgages. An purposes of the Safety and Soundness a State or local housing finance agency); Enterprise’s purchase of a seasoned Act and the Enterprise’s Charter Act. and mortgage shall be treated as a mortgage (iii) For purposes of this paragraph (B) The Enterprise assumes a credit purchase for purposes of the housing (c)(14), ‘‘seller dissolution option’’ risk in the transaction substantially goals, except where the Enterprise has means an option for a seller of equivalent to the risk that would have already counted the mortgage under any mortgages to the Enterprises to dissolve been assumed by the Enterprise if it had current or previous housing goal within or otherwise cancel a mortgage purchase securitized the mortgages financed by the five years immediately preceding agreement or loan sale. such bonds. (d) HOEPA mortgages and mortgages (ii) When an Enterprise provides a the current performance year. (7) Purchase of refinancing mortgages. with unacceptable terms or conditions. specific contractual obligation to ensure HOEPA mortgages and mortgages with timely payment of amounts due under The purchase of a refinancing mortgage by an Enterprise shall be treated as a unacceptable terms or conditions, as any mortgage originally insured by a defined in § 1282.1, shall be treated as public purpose mortgage insurance mortgage purchase for purposes of the housing goals only if the refinancing is mortgage purchases for purposes of the entity or fund, the Enterprise may, on a housing goals and shall be included in case-by-case basis, seek approval from an arms-length transaction that is borrower-driven. the denominator for each applicable the Director for such activities to count single-family housing goal, but such toward achievement of the housing (8) Mortgage revenue bonds. The purchase or guarantee by an Enterprise mortgages shall not be counted in the goals. numerator for any housing goal. (2) [Reserved.] of a mortgage revenue bond issued by a State or local housing finance agency (e) FHFA review of transactions. (3) Risk-sharing. Mortgages purchased FHFA may determine whether and how under risk-sharing arrangements shall be treated as a purchase of the underlying mortgages for purposes of any transaction or class of transactions between an Enterprise and any Federal shall be counted for purposes of the agency under which the Enterprise is the housing goals only to the extent the Enterprise has sufficient information to housing goals, including treatment of responsible for a substantial amount of missing data. FHFA will notify each the risk shall be treated as mortgage determine whether the underlying mortgages or mortgage-backed securities Enterprise in writing of any purchases for purposes of the housing determination regarding the treatment of goals. qualify for inclusion in the numerator for one or more housing goal. any transaction or class of transactions (4) Participations. Participations under the housing goals. purchased by an Enterprise shall be (9) [Reserved.] treated as mortgage purchases for (10) Loan modifications. An § 1282.17 Affordability—Income level purposes of the housing goals only Enterprise’s permanent modification, in definitions—family size and income known when the Enterprise’s participation in accordance with the Making Home (owner-occupied units, actual tenants, and the mortgage is 50 percent or more. Affordable program announced on prospective tenants). (5) Cooperative housing and March 4, 2009, of a loan that is held in In determining whether a dwelling condominiums.—(i) The purchase of a the Enterprise’s portfolio or that is in a unit is affordable where income mortgage on a cooperative housing unit pool backing a security guaranteed by information (and family size, for rental (‘‘a share loan’’) or a mortgage on a the Enterprise, shall be treated as a housing) is known to the Enterprise, the condominium unit shall be treated as a mortgage purchase for purposes of the affordability of the unit shall be mortgage purchase for purposes of the housing goals. Each such permanent determined as follows: housing goals. Such a purchase shall be loan modification shall be counted in (a) Moderate-income means:

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(1) In the case of owner-occupied (1) In the case of owner-occupied (b) For low-income (80%), income of units, income not in excess of 100 units, income not in excess of 50 prospective tenants shall not exceed the percent of area median income; and percent of area median income; and following percentages of area median (2) In the case of rental units, where (2) In the case of rental units, where income with adjustments, depending on the income of actual or prospective the income of actual or prospective unit size: tenants is available, income not in tenants is available, income not in excess of the following percentages of excess of the following percentages of Percentage of Unit size area median area median income corresponding to area median income corresponding to income the following family sizes: the following family sizes: Efficiency ...... 56 Percentage of Percentage of 1 bedroom ...... 60 area Number of persons in family Number of persons in family area 2 bedrooms ...... 72 median in- median in- 3 bedrooms or more ...... * come come *83.2% plus (9.6% multiplied by the number 1 ...... 70 1 ...... 35 of bedrooms in excess of 3). 2 ...... 80 2 ...... 40 (c) For low-income (60%), income of 3 ...... 90 3 ...... 45 prospective tenants shall not exceed the 4 ...... 100 4 ...... 50 5 or more ...... * 5 or more ...... * following percentages of area median income with adjustments, depending on *100% plus (8% multiplied by the number of *50% plus (4.0% multiplied by the number unit size: persons in excess of 4). of persons in excess of 4). Percentage of (b) Low-income (80%) means: (e) Extremely low-income means: Unit size area median (1) In the case of owner-occupied (1) In the case of owner-occupied income units, income not in excess of 80 units, income not in excess of 30 percent of area median income; and percent of area median income; and Efficiency ...... 42 1 bedroom ...... 45 (2) In the case of rental units, where (2) In the case of rental units, where 2 bedrooms ...... 54 the income of actual or prospective the income of actual or prospective 3 bedrooms or more ...... * tenants is available, income not in tenants is available, income not in excess of the following percentages of excess of the following percentages of *62.4% plus (7.2% multiplied by the number of bedrooms in excess of 3). area median income corresponding to area median income corresponding to the following family sizes: the following family sizes: (d) For very low-income, income of prospective tenants shall not exceed the Percentage of Percentage of following percentages of area median area area income with adjustments, depending on Number of persons in family median in- Number of persons in family median in- unit size: come come

1 ...... 56 1 ...... 21 Percentage of 2 ...... 64 Unit size area median in- 2 ...... 24 come 3 ...... 72 3 ...... 27 4 ...... 80 4 ...... 30 Efficiency ...... 35 5 or more ...... * 5 or more ...... * 1 bedroom ...... 37.5 *80% plus (6.4% multiplied by the number *30% plus (2.4% multiplied by the number 2 bedrooms ...... 45 of persons in excess of 4). of persons in excess of 4). 3 bedrooms or more ...... * (c) Low-income (60%) means: § 1282.18 Affordability—Income level *52% plus (6.0% multiplied by the number of bedrooms in excess of 3). (1) In the case of owner-occupied definitions—family size not known (actual units, income not in excess of 60 or prospective tenants). (e) For extremely low-income, income percent of area median income; and In determining whether a rental unit of prospective tenants shall not exceed (2) In the case of rental units, where is affordable where family size is not the following percentages of area the income of actual or prospective known to the Enterprise, income will be median income with adjustments, tenants is available, income not in adjusted using unit size, and depending on unit size: excess of the following percentages of affordability determined as follows: Percentage of area median income corresponding to (a) For moderate-income, the income Unit size area median in- the following family sizes: of prospective tenants shall not exceed come the following percentages of area Percentage of median income with adjustments, Efficiency ...... 21 Number of persons in family area 1 bedroom ...... 22.5 median in- depending on unit size: 2 bedrooms ...... 27 come 3 bedrooms or more ...... * Percentage of 1 ...... 42 Unit size area median *31.2% plus (3.6% multiplied by the number 2 ...... 48 income of bedrooms in excess of 3). 3 ...... 54 4 ...... 60 Efficiency ...... 70 § 1282.19 Affordability—Rent level 5 or more ...... * 1 bedroom ...... 75 definitions—tenant income is not known. 2 bedrooms ...... 90 For purposes of determining whether *60% plus (4.8% multiplied by the number 3 bedrooms or more ...... * a rental unit is affordable where the of persons in excess of 4). *104% plus (12% multiplied by the number income of the family in the dwelling (d) Very low-income means: of bedrooms in excess of 3). unit is not known to the Enterprise, the

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affordability of the unit is determined (e) For extremely low-income, a substantial probability that an based on unit size as follows: maximum affordable rents to count as Enterprise will fail, to meet any housing (a) For moderate-income, maximum housing for extremely low-income goal and that the achievement of the affordable rents to count as housing for families shall not exceed the following housing goal was or is feasible, the moderate-income families shall not percentages of area median income with Director may require the Enterprise to exceed the following percentages of area adjustments, depending on unit size: submit a housing plan for approval by median income with adjustments, the Director. depending on unit size: Percentage of (b) Nature of plan. If the Director Unit size area requires a housing plan, the housing median income Percentage of plan shall: Unit size area median in- (1) Be feasible; come Efficiency ...... 6 .3 1 bedroom ...... 6.75 (2) Be sufficiently specific to enable 2 bedrooms ...... 8.1 the Director to monitor compliance Efficiency ...... 21 periodically; 1 bedroom ...... 22.5 3 bedrooms or more ...... * (3) Describe the specific actions that 2 bedrooms ...... 27 * 9.36% plus (1.08% multiplied by the num- 3 bedrooms or more ...... * ber of bedrooms in excess of 3). the Enterprise will take: (i) To achieve the goal for the next *31.2% plus (3.6% multiplied by the number (f) Missing Information. Each calendar year; and of bedrooms in excess of 3). Enterprise shall make every effort to (ii) If the Director determines that (b) For low-income (80%), maximum obtain the information necessary to there is a substantial probability that the affordable rents to count as housing for make the calculations in this section. If Enterprise will fail to meet a housing low-income (80%) families shall not an Enterprise makes such efforts but goal in the current year, to make such exceed the following percentages of area cannot obtain data on the number of improvements and changes in its median income with adjustments, bedrooms in particular units, in making operations as are reasonable in the depending on unit size: the calculations on such units, the units remainder of the year; and shall be assumed to be efficiencies (4) Address any additional matters Percentage of except as provided in § 1282.15(e)(1). relevant to the plan as required, in Unit size area median in- writing, by the Director. come § 1282.20 Determination of compliance (c) Deadline for submission. The with housing goals; notice of determination. Enterprise shall submit the housing plan Efficiency ...... 16 .8 (a) Single-family housing goals. The to the Director within 45 days after 1 bedroom ...... 18 Director shall evaluate each Enterprise’s issuance of a notice requiring the 2 bedrooms ...... 21.6 performance under the low-income 3 bedrooms or more ...... * Enterprise to submit a housing plan. families housing goal, the very low- The Director may extend the deadline *24.96% plus (2.88% multiplied by the num- income families housing goal, the low- for submission of a plan, in writing and ber of bedrooms in excess of 3). income areas housing goal, the low- for a time certain, to the extent the (c) For low-income (60%), maximum income areas housing subgoal, and the Director determines an extension is affordable rents to count as housing for refinancing mortgages housing goal on necessary. an annual basis. If the Director low-income (60%) families shall not (d) Review of housing plans. The determines that an Enterprise has failed, exceed the following percentages of area Director shall review and approve or or there is a substantial probability that median income with adjustments, disapprove housing plans in accordance an Enterprise will fail, to meet a single- depending on unit size: with 12 U.S.C. 4566(c)(4) and (c)(5). family housing goal established by this (e) Resubmission. If the Director Percentage of subpart, the Director shall notify the disapproves an initial housing plan Unit size area median in- Enterprise in writing of such submitted by an Enterprise, the come preliminary determination. Enterprise shall submit an amended (b) Multifamily housing goal and Efficiency ...... 12 .6 plan acceptable to the Director not later subgoal. The Director shall evaluate than 15 days after the Director’s 1 bedroom ...... 13.5 each Enterprise’s performance under the 2 bedrooms ...... 16.2 disapproval of the initial plan; the multifamily low-income housing goal Director may extend the deadline if the 3 bedrooms or more ...... * and the multifamily very low-income Director determines an extension is in *18.72% plus (2.16% multiplied by the num- housing subgoal on an annual basis. If the public interest. If the amended plan ber of bedrooms in excess of 3). the Director determines that an is not acceptable to the Director, the Enterprise has failed, or there is a (d) For very low-income, maximum Director may afford the Enterprise 15 substantial probability that an affordable rents to count as housing for days to submit a new plan. very low-income families shall not Enterprise will fail, to meet a exceed the following percentages of area multifamily housing goal or subgoal Subpart C—[Reserved] median income with adjustments, established by this subpart, the Director depending on unit size: shall notify the Enterprise in writing of Subpart D—Reporting Requirements such preliminary determination. Percentage of (c) Any notification to an Enterprise § 1282.61 General. Unit size area median in- of a preliminary determination under This subpart establishes data come this section shall provide the Enterprise submission and reporting requirements with an opportunity to respond in to carry out the requirements of the Efficiency ...... 10 .5 writing in accordance with the 1 bedroom ...... 11.25 Enterprises’ Charter Acts and the Safety 2 bedrooms ...... 13.5 procedures at 12 U.S.C. 4566(b). and Soundness Act. 3 bedrooms or more ...... * § 1282.21 Housing plans. § 1282.62 Mortgage reports. *15.6% plus (1.8% multiplied by the number (a) General. If the Director determines (a) Loan-level data elements. To of bedrooms in excess of 3). that an Enterprise has failed, or there is implement the data collection and

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submission requirements for mortgage Mortgage Report within 75 days after § 1282.65 Enterprise data integrity. data, and to assist the Director in the end of the calendar year. (a) Certification.—(1) The senior monitoring the Enterprises’ housing goal (d) Revisions to Reports. At any time officer of each Enterprise who is activities, each Enterprise shall collect before submission of its Annual responsible for submitting the fourth and compile computerized loan-level Mortgage Report, an Enterprise may quarter Annual Mortgage Report and the data on each mortgage purchased in revise any of its quarterly reports for AHAR under sections 309(m) and (n) of accordance with 12 U.S.C. 1456(e) and that year. the Fannie Mae Charter Act or sections 1723a(m). The Director may, from time 307(e) and (f) of the Freddie Mac Act, (e) Format. The Enterprises shall to time, issue a list entitled ‘‘Required as applicable, or for submitting any submit to the Director computerized Loan-level Data Elements’’ specifying other report(s), data or information for loan-level data with the Mortgage the loan-level data elements to be which certification is requested in Report, in the format specified in collected and maintained by the writing by the Director, shall certify writing by the Director. Enterprises and provided to the such report(s), data or information. Director. The Director may revise the § 1282.63 Annual Housing Activities (2) The certification shall state as list by written notice to the Enterprises. Report. follows: ‘‘To the best of my knowledge (b) Quarterly Mortgage Reports. Each and belief, the information provided To comply with the requirements in Enterprise shall submit to the Director a herein is true, correct and complete.’’ sections 309(n) of the Fannie Mae quarterly Mortgage Report. The fourth (b) Adjustment to correct errors, Charter Act and 307(f) of the Freddie quarter Mortgage Report shall serve as omissions or discrepancies in AHAR Mac Act and assist the Director in the Annual Mortgage Report and shall data. FHFA shall determine the official preparing the Director’s Annual Report be designated as such. Each Mortgage housing goal performance figure for to Congress, each Enterprise shall Report shall include: each Enterprise under the housing goals submit to the Director an AHAR on an annual basis. FHFA may resolve (1) Aggregations of the loan-level including the information listed in those any error, omission or discrepancy by mortgage data compiled by the sections of the Charter Acts. Each adjusting the Enterprise’s official Enterprise under paragraph (a) of this Enterprise shall submit such report housing goal performance figure. If the section for year-to-date mortgage within 75 days after the end of each Director determines that the year-end purchases, in the format specified in calendar year, to the Director, the data reported by an Enterprise for a year writing by the Director; Committee on Financial Services of the preceding the latest year for which data (2) Year-to-date dollar volume, House of Representatives, and the on housing goals performance was number of units, and number of Committee on Banking, Housing, and reported to FHFA contained a material mortgages on owner-occupied and Urban Affairs of the Senate. Each error, omission or discrepancy, the rental properties purchased by the Enterprise shall make its AHAR Director may increase the corresponding Enterprise that do, and do not, qualify available to the public online and at its housing goal for the current year by the under each housing goal as set forth in principal and regional offices. Before number of mortgages (or dwelling units) this part; and making any such report available to the that the Director determines were (3) Year-to-date computerized loan- public, the Enterprise may exclude from overstated in the prior year’s goal level data consisting of the data the report any information that the performance. elements required under paragraph (a) Director has deemed proprietary. of this section. Dated: September 1, 2010. § 1282.64 Periodic reports. (c) Timing of Reports. The Enterprises Edward J. DeMarco, shall submit the Mortgage Report for Each Enterprise shall provide to the Acting Director, Federal Housing Finance each of the first 3 quarters of each year Director such reports, information and Agency. within 60 days of the end of the quarter. data as the Director may request from [FR Doc. 2010–22361 Filed 9–13–10; 8:45 am] Each Enterprise shall submit its Annual time to time. BILLING CODE 8070–01–P

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Reader Aids Federal Register Vol. 75, No. 177 Tuesday, September 14, 2010

CUSTOMER SERVICE AND INFORMATION CFR PARTS AFFECTED DURING SEPTEMBER

Federal Register/Code of Federal Regulations At the end of each month, the Office of the Federal Register General Information, indexes and other finding 202–741–6000 publishes separately a List of CFR Sections Affected (LSA), which aids lists parts and sections affected by documents published since Laws 741–6000 the revision date of each title. 53851, 53855, 53857, 53859, Presidential Documents 2 CFR 53861, 54462, 55453, 55455, Executive orders and proclamations 741–6000 Subt. A...... 55671 55459, 55461 The United States Government Manual 741–6000 170...... 55663 71...... 55267 73...... 53863 Other Services 3 CFR 97...... 54766, 54769 Electronic and on-line services (voice) 741–6020 Proclamations: Proposed Rules: Privacy Act Compilation 741–6064 8549...... 53563 39 ...... 53609, 54536, 55492, Public Laws Update Service (numbers, dates, etc.) 741–6043 8550...... 54449 55691 TTY for the deaf-and-hard-of-hearing 741–6086 8551...... 54451 71 ...... 53876, 54057, 54058 8552...... 54453 117...... 55852 8553...... 54455 ELECTRONIC RESEARCH 121...... 55852 8554...... 54757 World Wide Web 8555...... 55253 15 CFR Full text of the daily Federal Register, CFR and other publications Executive Orders: 730...... 53864 is located at: http://www.gpoaccess.gov/nara/index.html 13551...... 53837 732...... 53864 Federal Register information and research tools, including Public 13552...... 54263 734...... 53864, 54271 Inspection List, indexes, and links to GPO Access are located at: Administrative Orders: 736...... 53864 http://www.archives.gov/federallregister Presidential 738...... 53864 Determinations: 740...... 53864 E-mail No. 2010-13 of 742...... 53864, 54271 FEDREGTOC-L (Federal Register Table of Contents LISTSERV) is September 2, 743...... 53864, 54271 an open e-mail service that provides subscribers with a digital 2010 ...... 54459 744...... 53864, 54271 form of the Federal Register Table of Contents. The digital form Notice of September 746...... 53864 of the Federal Register Table of Contents includes HTML and 10, 2010 ...... 55661 747...... 53864 PDF links to the full text of each document. 748...... 53864 6 CFR 750...... 53864 To join or leave, go to http://listserv.access.gpo.gov and select 752...... 53864 Online mailing list archives, FEDREGTOC-L, Join or leave the list Proposed Rules: 754...... 53864 (or change settings); then follow the instructions. 5...... 54528, 55290 756...... 53864 PENS (Public Law Electronic Notification Service) is an e-mail 7 CFR 758...... 53864 service that notifies subscribers of recently enacted laws. 6...... 53565 760...... 53864 To subscribe, go to http://listserv.gsa.gov/archives/publaws-l.html 301...... 54461 762...... 53864 and select Join or leave the list (or change settings); then follow 761...... 54005 764...... 53864 the instructions. 762...... 54005 766...... 53864 764...... 54005 768...... 53864 FEDREGTOC-L and PENS are mailing lists only. We cannot 770...... 53864 respond to specific inquiries. 765...... 54005 766...... 54005 772...... 53864, 54271 Reference questions. Send questions and comments about the 1250...... 55255 774...... 53864, 54271 Federal Register system to: [email protected] 3430...... 54759 922...... 53567 The Federal Register staff cannot interpret specific documents or Proposed Rules: Proposed Rules: regulations. 253...... 54530 742...... 54540 1250...... 55292 744...... 54540 Reminders. Effective January 1, 2009, the Reminders, including 746...... 54540 Rules Going Into Effect and Comments Due Next Week, no longer 10 CFR 806...... 53611 appear in the Reader Aids section of the Federal Register. This 922...... 55692 information can be found online at http://www.regulations.gov. Proposed Rules: CFR Checklist. Effective January 1, 2009, the CFR Checklist no 430...... 54048 16 CFR 431...... 55068 longer appears in the Federal Register. This information can be 310...... 55269 found online at http://bookstore.gpo.gov/. 11 CFR 17 CFR 100...... 55257 FEDERAL REGISTER PAGES AND DATE, SEPTEMBER 1...... 55410 3...... 55410 12 CFR 53563–53840...... 1 4...... 55410 740...... 53841 53841–54004...... 2 5...... 55410 745...... 53841 54005–54270...... 3 10...... 55410 1249...... 55892 140...... 55410 54271–54460...... 7 1282...... 55892 145...... 55410 54461–54758...... 8 Proposed Rules: 147...... 55410 54759–55254...... 9 1101...... 54052 160...... 55410 55255–55452...... 10 166...... 55410 55453–55662...... 13 14 CFR 200...... 54464 55663–55940...... 14 39 ...... 53843, 53846, 53849, 240...... 54465

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249...... 54465 31 CFR Proposed Rules: 3002...... 55529 Proposed Rules: 575...... 55462 51...... 53613, 55711 3003...... 55529 4...... 54794, 55698 576...... 55463 52 ...... 53613, 53883, 53892, 3004...... 55529 16...... 54801, 54802 53907, 54292, 54805, 54806, 3005...... 55529 Ch. II ...... 55295 33 CFR 55494, 55711, 55713, 55725 3006...... 55529 60...... 53908 232...... 54059 100...... 55677 3009...... 55529 72...... 53613, 55711 117 ...... 54023, 54024, 54770, 3012...... 55529 18 CFR 78...... 53613, 55711 54771, 55475 3018...... 55529 97...... 53613, 55711 Proposed Rules: 127...... 54025 3022...... 55529 140...... 53914 35...... 54063 154...... 54025 3023...... 55529 300...... 54821 155...... 54025, 54026 3033...... 55529 20 CFR 799...... 55728 165 ...... 53572, 53574, 53870, 3035...... 55529 416...... 54285 54026, 54771, 55270, 55272, 42 CFR 3036...... 55529 641...... 53786 55477 Proposed Rules: 3042...... 55529 Proposed Rules: 3045...... 55529 21 CFR 100...... 55503 117...... 54069 447...... 54073 3052...... 55529 510 ...... 54016, 54017, 55676 167...... 55709 3053...... 55529 520 ...... 54018, 54492, 55676 43 CFR 524...... 54492 36 CFR 3000...... 55678 522...... 54017, 54018 49 CFR Proposed Rules: 3910...... 55678 558...... 54019, 55676 200...... 55710 3930...... 55678 107...... 53593 870...... 54493 294...... 54542 171...... 53593 1310...... 53867 1192...... 54543 44 CFR 172...... 53593 1253...... 54543 173...... 53593 24 CFR 64...... 55280, 55683 1254...... 54543 67...... 55480 176...... 53593 Ch. II ...... 54020 1280...... 54543 Proposed Rules: 177...... 53593 61...... 54076 179...... 53593 25 CFR 38 CFR 67 ...... 55507, 55515, 55527 180...... 53593 542...... 55269 3...... 54496 385...... 55488 543...... 55269 17...... 54028, 54496 45 CFR 395...... 55488 Proposed Rules: Ch. XXV...... 54789 544...... 54041 26 CFR 5...... 53744 1...... 55677 47 CFR 76...... 54069 50 CFR Proposed Rules: 20...... 54508 1 ...... 54541, 54802, 55698 39 CFR 64...... 54040 17...... 53598, 55686 31...... 54541 111...... 54287 300...... 54790 20...... 53774 301...... 55699 Proposed Rules: 635...... 53871 40 CFR Ch. 1 ...... 55297 648 ...... 53871, 54290, 55286 27 CFR 51...... 55636 20...... 54546 660...... 54791 Proposed Rules: 52 ...... 54031, 54773, 54778, 665...... 53606, 54044 9...... 53877 55271 48 CFR 679 ...... 53606, 53608, 53873, 55...... 55277 207...... 54524 53874, 53875, 54290, 54792, 29 CFR 60 ...... 54970, 55271, 55636 211...... 54524 55288, 55689, 55690 Proposed Rules: 61...... 55271, 55636 217...... 54526 Proposed Rules: 1908...... 54064 63...... 54970, 55636 227...... 54527 17 ...... 53615, 54561, 54708, 2570...... 54542 81...... 54031, 54497 237...... 54524 54822, 55730 180 ...... 53577, 53581, 53586, 252...... 54527 23...... 54579 30 CFR 54033 Proposed Rules: 223...... 53925 Proposed Rules: 228...... 54497 53...... 54560 300...... 54078 Chap. I ...... 54804 300...... 54779, 55479 3001...... 55529 648...... 53939, 54292

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www.gpoaccess.gov/plaws/ the Elbert P. Tuttle United (Aug. 16, 2010; 124 Stat. index.html. Some laws may States Court of Appeals 2497) LIST OF PUBLIC LAWS not yet be available. Building in Atlanta, Georgia, as the ‘‘John C. Godbold Last List August 16, 2010 This is a continuing list of H.R. 511/P.L. 111–231 Federal Building’’. (Aug. 16, public bills from the current To authorize the Secretary of 2010; 124 Stat. 2494) session of Congress which Agriculture to terminate certain H.R. 5278/P.L. 111–235 have become Federal laws. It easements held by the Public Laws Electronic may be used in conjunction Secretary on land owned by To designate the facility of the Notification Service with ‘‘P L U S’’ (Public Laws the Village of Caseyville, United States Postal Service Update Service) on 202–741– Illinois, and to terminate located at 405 West Second (PENS) 6043. This list is also associated contractual Street in Dixon, Illinois, as the available online at http:// arrangements with the Village. ‘‘President Ronald W. Reagan www.archives.gov/federal- (Aug. 16, 2010; 124 Stat. Post Office Building’’. (Aug. PENS is a free electronic mail register/laws.html. 2489) 16, 2010; 124 Stat. 2495) notification service of newly H.R. 2097/P.L. 111–232 The text of laws is not H.R. 5395/P.L. 111–236 enacted public laws. To Star-Spangled Banner subscribe, go to http:// published in the Federal To designate the facility of the Commemorative Coin Act listserv.gsa.gov/archives/ Register but may be ordered United States Postal Service (Aug. 16, 2010; 124 Stat. publaws-l.html in ‘‘slip law’’ (individual located at 151 North Maitland pamphlet) form from the 2490) H.R. 3509/P.L. 111–233 Avenue in Maitland, Florida, Superintendent of Documents, as the ‘‘Paula Hawkins Post Note: This service is strictly Agricultural Credit Act of 2010 U.S. Government Printing Office Building’’. (Aug. 16, for E-mail notification of new (Aug. 16, 2010; 124 Stat. Office, Washington, DC 20402 2010; 124 Stat. 2496) laws. The text of laws is not (phone, 202–512–1808). The 2493) available through this service. text will also be made H.R. 4275/P.L. 111–234 H.R. 5552/P.L. 111–237 PENS cannot respond to available on the Internet from To designate the annex Firearms Excise Tax specific inquiries sent to this GPO Access at http:// building under construction for Improvement Act of 2010 address.

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